<PAGE>
N U V E E N
Investments
Municipal Bond
Funds
SEMIANNUAL REPORT AUGUST 31, 2000
Dependable, tax-free income to help you keep more of what you earn.
[PHOTOS APPEAR HERE]
INVEST WELL
LOOK AHEAD
LEAVE YOUR MARK/SM/
California
California Insured
<PAGE>
Dear Shareholders,
You may notice a change in your fund's semiannual report. We've simplified the
format to make it easier for you to get the information you want. We have
consolidated the chart information. Statistics such as total returns and yields
for your fund, portfolio allocation and credit quality -- are now all on one
easy-to-read page. Finally, we want you to know what has happened in the
municipal bond market without having to wade through a lot of technical
analysis, so we have limited economic commentary about the period to one page.
Your annual report, which will cover the 12-month period ending February 28,
2001, will as always, include an in-depth interview with your fund's portfolio
manager. We strongly encourage you to read that report when you receive it next
year, as it strives to educate you on the value of Nuveen's active management of
your mutual fund.
If you have any questions about the changes made to your semiannual report,
please do not hesitate to contact Shareholder Services at (800) 257-8787. You
can also contact us through our Internet site, www.nuveen.com.
<TABLE>
<CAPTION>
Contents
<S> <C>
1 Dear Shareholder
3 Market Commentary
4 California Spotlight
5 California Insured Spotlight
6 Portfolio of Investments
13 Statement of Net Assets
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Notes to Financial Statements
21 Financial Highlights
25 Fund Information
</TABLE>
Must be preceded by or accompanied by a prospectus.
<PAGE>
DEAR
Shareholder,
[PHOTO OF TIMOTHY R. SCHWERTFEGER CHAIRMAN OF THE BOARD APPEARS HERE]
Timothy R. Schwertfeger
Chairman of the Board
Harvard University, Tiffany's and Dom Perignon are each the Rolls-Royce of its
market. Each is synonymous with "quality." Each has established, reinforced and
marketed its brand as one that consistently delivers a quality product -- be it
education, fine jewelry or champagne. Each has made a promise to its customers,
and each works hard to keep that promise, year after year.
Webster defines quality as the degree of excellence that a thing possesses.
Nuveen Investments defines quality by the excellence of our portfolio
management and products as well as of the financial advisors you, and our firm,
work with.
Quality Portfolio Management and Products
Nuveen's income-oriented funds feature portfolio management by Nuveen
Investment Management (NIM). NIM follows a disciplined, research-driven
investment approach to uncover income securities that combine exceptional
relative value with above-average return potential. Drawing on 300 combined
years of investment experience, the Nuveen team of portfolio managers and
research analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence of trading leverage of a market leader.
While you may be familiar with our municipal bond funds, you may not be
aware of the equity mutual funds we offer investors. Our two newest funds --
Nuveen Innovation and Nuveen International Growth -- were launched in December
1999. These funds are managed by Columbus Circle Investors (CCI), a firm that
has been managing money for more than 25 years and has used a single,
disciplined investment philosophy called "Positive Momentum and Positive
Surprise." This philosophy is based on the premise that:
. Strong companies tend to get stronger. CCI believes a company that
demonstrates positive momentum in its business fundamentals tends to
generate superior returns through rising stock prices. This represents the
Positive Momentum CCI seeks.
. Companies positively surprise when their business fundamentals and reported
results exceed investor and analyst expectations. CCI believes this is often
accompanied by strong, accelerating growth. This represents the Positive
Surprise CCI seeks.
Our Nuveen Rittenhouse Growth Fund is managed by Rittenhouse Financial
Services, Inc., a wholly owned subsidiary of the John Nuveen Company. The
investment philosophy Rittenhouse established years ago remains firmly in place
today -- pursue long-term growth with high-quality, large capitalization blue
chip stocks. This singular focus has translated into consistently strong risk-
adjusted returns and productive, long-lasting relationships.
SEMIANNUAL REPORT page 1
<PAGE>
We also offer several growth and income style funds, all managed by
Institutional Capital Corporation (ICAP), of which the John Nuveen Company holds
a minority interest. ICAP seeks out stocks it believes have appreciation
potential unrecognized by the general market for Nuveen Growth and Income Stock
Fund, Nuveen European Value Fund, Nuveen Balanced Stock and Bond Fund and Nuveen
Balanced Municipal and Stock Fund.
Quality Financial Advisors
Nuveen Investments works through financial advisors because we believe in
quality advice. Today, you face an unprecedented array of investment choices,
opportunities -- and risks. Your investment advisor can offer you the
professional assistance that will help bring to life your aspirations -- for
yourself and your family, today and in the future.
This Report
Please review your fund's Financial Spotlight to learn how it is positioned as
of its semiannual period, ended August 31, 2000. Also, I invite you to read the
following Market Commentary to learn more about the economic environment in
which your fund performed.
For more information on any Nuveen investment, including a prospectus, contact
your financial advisor. Or call Nuveen at (800) 621-7227 or visit our Internet
site at www.nuveen.com. Please read the prospectus carefully before you invest
or send money.
Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 18, 2000
SEMIANNUAL REPORT page 2
<PAGE>
NUVEEN MUNICIPAL FUNDS
Market Commentary as of August 31, 2000
Municipal bonds performed well during the six-month period ended August 31,
2000. During this period, yields on long-term municipal bonds declined by
approximately 54 basis points, resulting in a corresponding rise in bond prices.
Three reasons account for this performance. First, the likelihood of a
Federal Reserve tightening -- in the view of the general market -- fell as signs
of inflation did not appear. Secondly, new issue supply in the municipal market
remained low. This was due in part to the fact that many municipalities have
been funding capital projects with current strong tax collections rather than
with long-term debt. Finally, volatility and lack- luster returns in the equity
market have increasingly turned investor attention to the municipal market.
During the period, credit spreads -- the basis point difference
between yields on high-grade bonds and low-grade bonds -- tightened. Still,
compared with credit spreads over the last several years, the spreads remained
attractive. Liquidity spreads -- the basis point difference between the yields
offered by sellers and yields demanded by buyers -- remained wide and volatile
creating opportunities for value trading.
The strong economy continued to generate strong tax collections for
municipalities throughout the country. In addition to reducing the need for debt
issuance, the collections have contributed to improved credit quality among many
municipal issuers. The recent upgrade of New York City to A, its highest rating
in 25 years, illustrates this trend.
Among the noteworthy deals this quarter were two tobacco
settlement-backed bond issues, both on behalf of New York counties. In the $206
billion settlement between 46 states and major tobacco companies, the states
exchanged all smoking-related claims for a stream of annual payments from the
tobacco companies. Several states and counties have come to market to borrow
against the future stream of payments. Proceeds of these transactions have been
applied to several different municipal purposes. We expect to see many more
tobacco deals over the next year.
A Look Ahead
We believe the Fed will remain on hold through the elections. As the
traditionally slow time of the year for the bond market -- summer -- has ended,
supply could increase incrementally. However, supply will likely remain
significantly below last year because of strong tax collections. Finally, we
believe that investors will increasingly shift money from the equity market to
the bond market if they see equity returns significantly lower than the past
several years.
SEMIANNUAL REPORT page 3
<PAGE>
NUVEEN CALIFORNIA MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
Quick Facts
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
<S> <C> <C> <C> <C>
NAV $ 10.40 $ 10.39 $ 10.40 $ 10.41
------------------------------------------------------------------------------------------
August's Declared Dividend* $ 0.0465 $ 0.0405 $ 0.0420 $ 0.0485
------------------------------------------------------------------------------------------
Inception Date 9/94 3/97 9/94 7/86
------------------------------------------------------------------------------------------
*Paid September 1, 2000
</TABLE>
Total Returns as of 8/31/00 (Annualized)*
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 5.70% 1.22% 4.94% 0.94% 5.13% 5.84%
------------------------------------------------------------------------------------------
5-Year 5.73% 4.83% 4.96% 4.80% 5.09% 5.96%
------------------------------------------------------------------------------------------
10-Year 6.64% 6.18% 6.06% 6.06% 5.94% 6.90%
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</TABLE>
Total Returns as of 6/30/00 (Annualized)*
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 1.77% -2.46% 0.93% -2.96% 1.12% 1.91%
------------------------------------------------------------------------------------------
5-Year 5.46% 4.56% 4.70% 4.53% 4.82% 5.69%
------------------------------------------------------------------------------------------
10-Year 6.25% 5.79% 5.68% 5.68% 5.55% 6.52%
------------------------------------------------------------------------------------------
</TABLE>
*Class R shares returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins
at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class C shares have a 1% CDSC
for redemptions within one year, which is not reflected in the one-year total
returns.
Tax-Free Yields as of 8/31/00
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
<S> <C> <C> <C> <C> <C>
SEC 30-Day Yield 5.00% 4.79% 4.25% 4.45% 5.20%
--------------------------------------------------------------------------------------------------
Taxable Equivalent Yield* 8.00% 7.66% 6.80% 7.12% 8.32%
--------------------------------------------------------------------------------------------------
</TABLE>
*Based on SEC yield and a combined federal and state income tax rate of 37.5%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Portfolio Statistics
Total Net Assets $269.8 million
-------------------------------------
Average Effective
Maturity 20.38 years
-------------------------------------
Average Duration 7.68
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Top Five Sectors [_]
Tax Obligation (Limited) 22%
-------------------------------------
Healthcare 14%
-------------------------------------
Housing (Multifamily) 12%
-------------------------------------
Utilities 12%
-------------------------------------
Transportation 9%
-------------------------------------
Bond Credit Quality [_]
[BAR CHART APPEARS HERE]
30%
AAA/
U.S. Guaranteed
11% AA
14% A
20% BBB
25% NR
[_] As a percentage of total bond holdings as of August 31, 2000. Holdings are
subject to change.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
SEMIANNUAL REPORT page 4
<PAGE>
NUVEEN CALIFORNIA INSURED MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
Quick Facts
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
<S> <C> <C> <C> <C>
NAV $ 10.64 $ 10.65 $ 10.57 $ 10.62
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August's Declared Dividend* $ 0.0445 $ 0.0380 $ 0.0395 $ 0.0460
---------------------------------------------------------------------------------------
Inception Date 9/94 3/97 9/94 7/86
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*Paid September 1, 2000
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</TABLE>
Total Returns as of 8/31/00 (Annualized)*
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 6.58% 2.11% 5.77% 1.77% 5.99% 6.67%
---------------------------------------------------------------------------------------
5-Year 5.59% 4.68% 4.82% 4.65% 4.96% 5.79%
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10-Year 6.86% 6.40% 6.24% 6.24% 6.09% 7.08%
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</TABLE>
Total Returns as of 6/30/00 (Annualized)*
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 2.01% -2.28% 1.33% -2.55% 1.41% 2.29%
---------------------------------------------------------------------------------------
5-Year 5.19% 4.29% 4.42% 4.26% 4.59% 5.42%
---------------------------------------------------------------------------------------
10-Year 6.44% 5.98% 5.83% 5.83% 5.67% 6.67%
---------------------------------------------------------------------------------------
</TABLE>
* Class R shares returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a CDSC that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class C shares have a 1%
CDSC for redemptions within one year, which is not reflected in the one-year
total returns.
Tax-Free Yields as of 8/31/00
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV
<S> <C> <C> <C> <C> <C>
SEC 30-Day Yield 4.38% 4.20% 3.64% 3.84% 4.59%
--------------------------------------------------------------------------------------------
Taxable Equivalent Yield* 7.01% 6.72% 5.82% 6.14% 7.34%
--------------------------------------------------------------------------------------------
</TABLE>
*Based on SEC yield and a combined federal and state income tax rate of 37.5%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Portfolio Statistics
Total Net Assets $236.2 million
---------------------------------------
Average Effective
Maturity 21.12 years
---------------------------------------
Average Duration 8.02
---------------------------------------
Top Five Sectors [_]
Tax Obligation (Limited) 30%
---------------------------------------
Tax Obligation (General) 20%
---------------------------------------
U.S. Guaranteed 17%
---------------------------------------
Transportation 9%
---------------------------------------
Healthcare 8%
---------------------------------------
Bond Credit Quality [_]
[BAR CHART APPEARS HERE]
Insured 83%
Insured &
U.S. Guaranteed 17%
[_] As a percentage of total bond holdings as of August 31, 2000. Holdings are
subject to change.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
SEMIANNUAL REPORT page 5
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 3.8%
$ 960 California Educational Facilities Authority, Pooled College and University 4/07 at 102 Baa2 $ 995,779
Projects Revenue Bonds, Series 1997B (Southern California College of
Optometry), 6.300%, 4/01/21
3,115 California Educational Facilities Authority, Revenue Bonds (Pooled College 6/10 at 101 Baa3 3,287,633
and University Projects), 2000 Series C, 6.750%, 6/01/30
1,500 California Statewide Community Development Authority, San Diego, 12/06 at 105 N/R 1,555,365
Certificates of Participation, Space and Science Foundation,
Series 1996, 7.500%, 12/01/26
4,335 The Regents of the University of California, 1993 Refunding Certificates 11/03 at 102 Aa3 4,475,151
of Participation (UCLA Central Chiller/Cogeneration Facility), 6.000%,
11/01/21
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Healthcare - 13.5%
18,000 California Health Facilities Financing Authority, Revenue Bonds 12/09 at 101 A2 18,354,780
(Cedars-Sinai Medical Center), Series 1999A, 6.125%, 12/01/30
California Health Facilities Financing Authority, Insured Health
Facility Revenue Bonds (Small Facilities Pooled Loan Program), 1994
Series B:
3,000 7.400%, 4/01/14 4/05 at 102 AA- 3,372,870
3,635 7.500%, 4/01/22 4/05 at 102 AA- 4,066,438
3,370 California Health Facilities Financing Authority, Hospital Revenue Bonds 5/03 at 102 BBB+ 3,238,840
(Downey Community Hospital), Series 1993, 5.750%, 5/15/15
3,380 California Health Facilities Financing Authority, Kaiser Permanente Revenue 12/00 at 102 AAA 3,471,497
Bonds, 1990 Series A, 7.000%, 12/01/10
1,755 Central Joint Powers Health Financing Authority, Certificates of 2/03 at 100 Baa1 1,446,260
Participation, Series 1993 (Community Hospital of Central
California), 5.000%, 2/01/23
2,475 City of Loma Linda California, Hospital Revenue Bonds (Loma Linda 12/03 at 102 N/R 2,321,377
University Medical Center Project), Series 1993-A, 6.000%, 12/01/06
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Housing/Multifamily - 12.2%
8,400 ABAG Finance Authority for Nonprofit Corporations, Multifamily Housing No Opt. Call BBB 8,661,576
Revenue Refunding Bonds (United Dominion/2000 Post Apartments), 2000
Series B, 6.250%, 8/15/30 (Mandatory put 8/15/08)
2,905 California Statewide Communities Development Authority, Senior Lien 6/06 at 100 AAA 2,982,505
Multifamily Housing Revenue Bonds (Monte Vista Terrace), Series
1996A, 6.375%, 9/01/20
4,350 The Community Redevelopment Agency of the City of Los Angeles, California, 6/05 at 105 AAA 4,775,126
Multifamily Housing Revenue Refunding Bonds, 1995 Series A
(Angelus Plaza Project), 7.400%, 6/15/10
3,285 City of Riverside, California, Multifamily Housing Revenue Bonds (Fannie 7/02 at 100 AAA 3,329,249
Mae Pass-through Certificate Program/Birchwood Park Apartment Project),
Series 1992A, 6.500%, 1/01/18
4,005 City of Riverside, California, Multifamily Housing Revenue Bonds (Fannie 7/02 at 100 AAA 4,058,947
Mae Pass-through Certificate Program/Palm Shadows Apartments Project),
1992 Series A, 6.500%, 1/01/18
2,000 County of Riverside (California), Mobile Home Park Revenue Bonds (Bravo 3/09 at 102 N/R 1,844,540
Mobile Home Park Project), Series 1999B, 5.900%, 3/20/29
2,080 City of Salinas, California, Housing Facility Refunding Revenue Bonds, 7/04 at 102 AAA 2,156,814
Series 1994A (GNMA Collateralized - Villa Serra Project), 6.500%, 7/20/17
2,000 San Dimas Housing Authority, Mobile Home Park Revenue Bonds (Charter Oak 7/08 at 102 N/R 1,781,100
Mobile Home Estates Acquisition Project), Series 1998A, 5.700%, 7/01/28
3,000 Housing Authority of the County of Santa Cruz, Multifamily Housing 1/01 at 102 AAA 3,064,110
Refunding Revenue Bonds, Series 1990A (Fannie Mae Collateralized),
7.750%, 7/01/23
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Housing/Single Family - 7.3%
2,250 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1997 Series 2/07 at 102 AAA 2,315,430
B, 6.100%, 2/01/28 (Alternative Minimum Tax)
</TABLE>
_____
6
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 33,500 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/09 at 31 19/32 AAA $ 5,703,710
Series 1999F, 0.000%, 2/01/30 (Alternative Minimum Tax)
2,850 California Rural Home Mortgage Finance Authority, Single Family No Opt. Call AAA 3,325,095
Mortgage Revenue Bonds (Mortgage-Backed Securities Program),
1997 Series A, 7.000%, 9/01/29 (Alternative Minimum Tax)
7,815 Department of Veterans Affairs of the State of California, Home 6/05 at 101 AA- 8,078,053
Purchase Revenue Bonds, 2000 Series C, 6.150%, 12/01/27
1,950 County of San Bernardino (California), Single Family Home Mortgage 5/07 at 22 9/16 AAA 292,715
Revenue Bonds (Mortgage-Backed Securities Program), 1997 Series A,
0.000%, 5/01/31 (Alternative Minimum Tax)
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Long-Term Care - 3.9%
7,000 Revenue Refunding Certificates of Participation (American Baptist 10/07 at 102 BBB- 5,887,490
Homes of the West Facilities Project), Series 1997A, 5.850%,
10/01/27
2,500 California Statewide Communities Development Authority, Certificates 11/04 at 102 AA- 2,678,600
of Participation (Solheim Lutheran Home), 6.500%, 11/01/17
2,000 Chico Redevelopment Agency, Insured Certificates of Participation 2/01 at 102 AA- 2,058,320
(Sierra Sunrise Lodge), Series 1991A, Walker Senior Housing
Corporation VII, 6.750%, 2/01/21
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Tax Obligation/General - 5.2%
8,500 State of California, Various Purpose General Obligation Bonds, 5.750%, 3/10 at 101 AAA 8,791,125
3/01/27
Petaluma Joint High School District (Sonoma County, California),
General Obligation Bonds, Election of 1992, Series C:
4,220 0.000%, 8/01/20 8/04 at 38 13/32 AAA 1,287,606
2,080 0.000%, 8/01/21 8/04 at 36 1/8 AAA 596,003
3,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1996 No Opt. Call A 3,451,470
(General Obligation Bonds), 6.500%, 7/01/13
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Tax Obligation/Limited - 21.8%
1,365 City of Brea (California), Community Facilities District No. 1997-1 3/06 at 102 N/R 1,378,172
(Olinda Heights Public Improvements), 1998 Special Tax Bonds,
5.875%, 9/01/28
Brentwood Infrastructure Financing Authority, CIFP 98-1 Infrastructure
Revenue Bonds, Series 1998 (Contra Costa County, California):
1,215 5.750%, 9/02/18 9/00 at 103 N/R 1,182,487
2,435 5.875%, 9/02/28 9/00 at 103 N/R 2,357,129
Brentwood Infrastructure Financing Authority, CIFP 99-1
Infrastructure Revenue Bonds, Series 1999 (Contra Costa County,
California):
1,675 6.000%, 9/02/22 9/00 at 103 N/R 1,680,092
1,500 6.000%, 9/02/29 9/00 at 103 N/R 1,494,885
2,000 Carson Redevelopment Agency (California), Redevelopment Project Area 10/03 at 102 BBB+ 2,055,740
No. 1, Tax Allocation Bonds, Series 1993, 6.000%, 10/01/16
1,500 Dinuba Redevelopment Agency (California), Merged City of Dinuba 12/01 at 101 N/R 1,514,985
Redevelopment Project and Dinuba Redevelopment Project No. 2, as
amended, Subordinated Tax Allocation Refunding Notes, Issue of
1999A, 6.100%, 12/01/04
2,500 Fontana Public Financing Authority (San Bernardino County, California), 9/00 at 102 BBB 2,552,275
Tax Allocation Revenue Bonds (North Fontana Redevelopment Project),
1990 Series A, 7.250%, 9/01/20
2,000 La Mirada Redevelopment Agency (California), Community Facilities 10/08 at 102 N/R 1,898,440
District No. 89-1 (Civic Theatre Project), 1998 Refunding Special Tax
Bonds (Tax Increment Contribution), 5.700%, 10/01/20
1,260 Marysville Community Development Agency (California), Marysville Plaza 3/02 at 102 Baa3 1,311,509
Project, 1992 Tax Allocation Refunding Bonds, 7.250%, 3/01/21
6,240 City of Milpitas, Limited Obligation Improvement Bonds, Local Improvement 9/00 at 103 N/R 6,100,661
District No. 20, 1998 Series A (Santa Clara County, California), 5.700%,
9/02/18
805 City of Ontario (San Bernardino County, California), Limited Obligation 9/00 at 103 N/R 838,528
Improvement Bonds, Assessment District No. 100C (California Commerce Center
Phase III), 8.000%, 9/02/11
2,250 County of Orange, California, Community Facilities District No. 99-1 8/09 at 102 N/R 2,370,803
(Ladera Ranch), Series A of 1999, Special Tax Bonds, 6.700%, 8/15/29
</TABLE>
_____
7
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 4,3000 Orange County Development Agency, Santa Ana Heights Project Area, 1993 9/03 at 102 BBB $ 4,344,161
Tax Allocation Revenue Bonds (California), 6.125%, 9/01/23
2,000 Community Facilities District No. 88-1 of the City of Poway, California 8/08 at 102 N/R 2,142,880
(Parkway Business Center), Special Tax Refunding Bonds, Series 1998,
6.750%, 8/15/15
1,645 City of Rancho Cucamoga, Assessment District No. 93-1 (Masi Plaza), Limited 9/00 at 103 N/R 1,669,083
Obligation Improvement Bonds, 6.250%, 9/02/22
1,340 Redding Joint Powers Financing Authority, Lease Revenue Bonds (Capital 6/03 at 102 A 1,377,708
Improvement Projects), Series 1993, 6.250%, 6/01/23
1,000 County of Sacramento (California), Laguna Creek Ranch/Elliott Ranch Community 12/07 at 102 N/R 960,130
Facilities District No. 1, Improvement Area No. 1 Special Tax Refunding Bonds
(Laguna Creek Ranch), 5.700%, 12/01/20
2,165 Limited Obligation Refunding Bonds, City of Salinas, Consolidated Refunding 9/00 at 103 N/R 2,250,734
District 94-3, Series No. A-181, Monterey County, California, 7.400%, 9/02/09
7,090 Redevelopment Agency of the City of San Marcos, Tax Allocation Bonds (1997 10/07 at 102 A- 7,235,274
Affordable Housing Project), Series 1977A, 6.000%, 10/01/27 (Alternative
Minimum Tax)
4,000 Shafter Joint Powers Financing Authority, Lease Revenue Bonds, 1997 Series A 1/07 at 101 A2 4,204,960
(Community Correctional Facility Acquisition Project), 6.050%, 1/01/17
2,945 City of Stockton, Limited Obligation Refunding Improvement Bonds, No Opt. Call N/R 2,918,024
Weber/Sperry Ranches Assessment District, Series 22, 5.650%, 9/02/13
2,000 Taft Public Financing Authority, Lease Revenue Bonds, 1997 Series A 1/07 at 101 A2 2,102,480
(Community Correctional Facility Acquisition Project), 6.050%, 1/01/17
1,100 County of Tulare (California), Certificates of Participation (1992 Financing 11/02 at 102 A3 1,186,449
Project), Series B, Tulare County Public Facilities Corporation, 6.875%,
11/15/12
1,500 Vallejo Public Financing Authority, 1998 Limited Obligation Revenue Bonds No Opt. Call N/R 1,541,595
(Fairgrounds Drive Assessment District Refinancing), 5.700%, 9/02/11
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 9.2%
Foothill/Eastern Transportation Corridor Agency, California, Toll Road
Revenue Bonds, Series 1995A:
7,150 5.000%, 1/01/35 1/10 at 100 BBB- 6,515,581
3,350 5.000%, 1/01/35 1/10 at 100 AAA 3,134,997
Foothill/Eastern Transportation Corridor Agency, California, Toll Road
Refunding Revenue Bonds, Series 1999:
8,900 0.000%, 1/15/28 1/14 at 101 BBB- 5,052,263
3,000 5.750%, 1/15/40 1/10 at 101 BBB- 2,973,870
7,000 Port of Oakland, California, Revenue Bonds, 2000 Series K, 5.750%, 5/10 at 100 AAA 7,158,200
11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 7.8%
1,500 ABAG Finance Authority for Nonprofit Corporations, Insured Certificates 1/01 at 102 N/R*** 1,544,655
of Participation (Channing House), Series 1991A, 7.125%, 1/01/21
(Pre-refunded to 1/01/01)
2,035 Bella Vista Water District (California), Certificates of Participation (1991 10/01 at 102 Baa*** 2,145,439
Capital Improvement Project), 7.375%, 10/01/17 (Pre-refunded to 10/01/01)
2,000 California Health Facilities Financing Authority, Health Facility Revenue 10/00 at 102 N/R*** 2,045,480
Bonds (Sisters of Providence), Series 1990, 7.500%, 10/01/10 (Pre-refunded
to 10/01/00)
7,500 State Public Works Board of the State of California, Lease Revenue Bonds (The 10/02 at 102 AAA 8,044,200
Trustees of the California State University), 1992 Series A (Various
California State University Projects), 6.700%, 10/01/17 (Pre-refunded to
10/01/02)
4,000 East Bay Municipal Utility District (Alameda and Contra Costa Counties, 12/01 at 102 AAA 4,194,160
California), Water System Subordinated Revenue Bonds, Series 1991, 6.375%,
6/01/21 (Pre-refunded to 12/01/01)
2,505 Harbor Department of the City of Los Angeles (California), Revenue Bonds, No Opt. Call AAA 3,149,111
Issue of 1988, 7.600%, 10/01/18
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 11.8%
12,000 California Pollution Control Financing Authority, Solid Waste Disposal 7/07 at 102 N/R 10,977,720
Revenue Bonds (CanFibre of Riverside Project), Series 1997A, 9.000%,
7/01/19 (Alternative Minimum Tax)
</TABLE>
_____
8
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Utilities (continued)
$ 3,000 California Statewide Communities Development Authority, Certificates of 12/04 at 102 N/R $ 2,774,910
Participation Refunding (Rio Bravo Fresno Project), 1999 Series A,
6.300%, 12/01/18
6,505 Merced Irrigation District (California), 1998 Revenue Certificates of 3/03 at 102 N/R 6,506,301
Participation (1998 Electric System Project), 5.800%, 3/01/15
6,225 Merced Irrigation District (California), 2000 Subordinated Revenue 6/08 at 102 N/R 6,428,807
Certificates of Participation (Electric System Project), 7.450%, 3/01/18
3,500 Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental 6/10 at 101 Baa2 3,656,940
Control Facilities Financing Authority, Cogeneration Facility Revenue
Bonds, 2000 Series A, 6.625%, 6/01/26 (Alternative Minimum Tax)
1,660 Salinas Valley Solid Waste Authority, Revenue Bonds, Series 1997, 5.800%, 8/02 at 102 BBB 1,612,607
8/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 1.4%
1,670 Sacramento County Sanitation Districts Financing Authority, California 12/10 at 101 AA 2,230,552
(Sacramento Regional County Sanitation District), Residual Interest
Certificates, Series 694R-A, 7.829%, 12/01/10 (IF)
1,385 Sacramento County Sanitation Districts Financing Authority, California 12/10 at 101 AA 1,642,774
(Sacramento Regional County Sanitation District), Residual Interest
Certificates, Series 694R-B, 6.182%, 12/01/11 (IF)
------------------------------------------------------------------------------------------------------------------------------------
$297,930 Total Investments (cost $259,132,661) - 97.9% 264,163,325
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 5,658,672
-----------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 269,821,997
=======================================================================================================================
</TABLE>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
(IF) Inverse floating rate security.
N/R Investment is not rated.
See accompanying notes to financial statements.
_____
9
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Insured Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount(000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Healthcare - 8.1%
California Statewide Communities Development Authority,
Sutter Health Obligated Group, Certificates of Participation:
$ 8,500 6.125%, 8/15/22 8/02 at 102 AAA $ 8,779,140
4,000 5.500%, 8/15/31 8/09 at 101 AAA 3,983,360
6,000 City of Oakland, California, Insured Revenue Bonds (1800
Harrison Foundation - Kaiser Permanente), Series 1999A, 1/10 at 100 AAA 6,330,480
6.000%, 1/01/29
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 6.3%
6,340 California Housing Finance Agency, Housing Revenue Bonds
(Insured), 1991 Series B, 6.850%, 8/01/23 2/02 at 102 AAA 6,547,191
3,480 The Community Redevelopment Agency of the City of Los Angeles, 6/05 at 105 AAA 3,820,100
California, Multifamily Housing Revenue Refunding Bonds,
1995 Series A (Angelus Plaza Project), 7.400%, 6/15/10
2,400 City of Napa, Mortgage Revenue Refunding Bonds, Series 1992A 7/02 at 102 AAA 2,472,744
(FHA-Insured Mortgage Loan - Creekside Park Apartments Project),
6.625%, 7/01/24
2,000 City of Napa, Mortgage Revenue Refunding Bonds, Series 1994A 7/04 at 101 AAA 2,068,480
(FHA-Insured Mortgage Loan - Creekside Park II Apartments Project),
6.625%, 7/01/25
-----------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 6.5%
4,750 California Housing Finance Agency, Single Family Mortgage Bonds II, 2/07 at 102 Aaa 4,878,820
1997 Series A-1, 6.050%, 8/01/26 (Alternative Minimum Tax)
4,960 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1997 8/07 at 102 AAA 5,124,920
Series E, 6.100%, 8/01/29 (Alternative Minimum Tax)
1,400 California Housing Finance Agency, Home Mortgage Revenue Bonds, 1996 2/06 at 102 AAA 1,414,000
Series E, 6.150%, 8/01/25 (Alternative Minimum Tax)
22,755 California Housing Finance Agency, Home Mortgage Revenue Bonds, 8/09 at 31 19/32 AAA 3,874,266
Series 1999F, 0.000%, 2/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.7%
2,000 State of California, General Obligation Bonds, 4.750%, 2/01/24 2/09 at 101 AAA 1,817,180
State of California, Various Purpose General Obligation Bonds:
31,000 5.750%, 3/01/27 3/10 at 101 AAA 32,061,750
1,500 5.000%, 8/01/29 8/09 at 101 AAA 1,409,490
Golden West Schools Financing Authority (California), 1998 Revenue
Bonds, Series A (School District General Obligation Refunding
Program):
1,500 0.000%, 2/01/19 8/13 at 70 15/16 AAA 520,290
2,650 0.000%, 8/01/19 8/13 at 68 9/16 AAA 888,545
2,755 0.000%, 8/01/20 8/13 at 63 27/32 AAA 856,998
1,430 0.000%, 2/01/21 8/13 at 61 11/16 AAA 428,271
2,855 0.000%, 8/01/21 8/13 at 59 5/8 AAA 826,323
6,070 Sacramento City Unified School District (Sacramento County, 7/09 at 102 Aaa 6,454,899
California), General Obligation Bonds, Series 2000A, 6.000%, 7/01/29
3,040 Sulphur Springs Union School District (County of Los Angeles, No Opt. Call AAA 1,408,554
California), General Obligation Bonds, Election 1991, Series A,
0.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 29.0%
Anaheim Public Financing Authority, Lease Revenue Bonds (Anaheim
Public Improvements Project), Subordinate Lease Revenue Bonds, 1997
Series C:
20,000 0.000%, 9/01/32 No Opt. Call AAA 3,339,000
41,885 0.000%, 9/01/35 No Opt. Call AAA 5,884,005
</TABLE>
______
10
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 1,225 Redevelopment Agency of the City of Barstow, Central Redevelopment No Opt. Call AAA $ 1,502,389
Project, Tax Allocation Bonds, 1994 Series A, 7.000%, 9/01/14
7,005 Big Bear Lake Financing Authority (San Bernardino County, California), 8/05 at 102 AAA 7,483,371
1995 Tax Allocation Refunding Revenue Bonds, 6.300%, 8/01/25
6,990 Chino Unified School District, Certificates of Participation (1995 Master 9/05 at 102 AAA 7,367,460
Lease Program), 6.125%, 9/01/26
850 Redevelopment Agency of the City of Concord, Central Concord Redevelopment 1/01 at 100 AAA 860,158
Project, Tax Allocation Bonds, Series 1988-2, 7.875%, 7/01/07
3,865 Fallbrook Sanitary District (San Diego County, California), 1991 2/01 at 100 AAA 3,900,442
Certificates of Participation (Wastewater Facilities Refunding Project),
6.600%, 2/01/13
2,500 Fontana Public Financing Authority (San Bernardino County, California), 9/00 at 102 AAA 2,555,225
Tax Allocation Revenue Bonds (North Fontana Redevelopment Project),
1990 Series A, 7.000%, 9/01/10
3,000 Gilroy Unified School District, Santa Clara County, California, 9/04 at 102 AAA 3,254,850
Certificates of Participation, Series of 1994, 6.250%, 9/01/12
7,040 Norwalk Community Facilities Financing Authority (Los Angeles County, 9/05 at 102 AAA 7,397,632
California), Tax Allocation Refunding Revenue Bonds, 1995 Series A,
6.050%, 9/01/25
5,120 County of Orange, California, 1996 Recovery Certificates of Participation, 7/06 at 102 AAA 5,375,334
Series A, 6.000%, 7/01/26
14,050 Paramount Redevelopment Agency (Los Angeles County, California), No Opt. Call AAA 3,253,559
Redevelopment Project Area No. 1, Compound Interest Tax Allocation Refunding
Bonds, Issue of 1998, 0.000%, 8/01/26
8,000 Pomona Public Financing Authority (California), 1998 Refunding Revenue 2/08 at 102 AAA 7,513,840
Bonds, Series W (Southwest Pomona Redevelopment Project), 5.000%, 2/01/30
Redevelopment Agency of the City and County of San Francisco, Lease
Revenue Bonds, Series 1994 (George R. Moscone Convention Center):
2,250 6.800%, 7/01/19 7/04 at 102 AAA 2,474,393
1,000 6.750%, 7/01/24 7/04 at 102 AAA 1,097,980
2,250 Redevelopment Agency of the City of San Jose, Merged Area Redevelopment 2/04 at 102 AAA 2,039,378
Project, Tax Allocation Bonds, Series 1993, 4.750%, 8/01/24
16,505 Santa Ana Unified School District (1999 Financing Project), Certificates No Opt. Call AAA 3,333,845
of Participation (Orange County, California), 0.000%, 4/01/29
-----------------------------------------------------------------------------------------------------------------------------------
Transportation - 8.5%
6,500 Foothill/Eastern Transportation Corridor Agency, California, Toll Road 1/10 at 100 AAA 6,082,830
Revenue Bonds, Series 1995A, 5.000%, 1/01/35
3,255 Foothill/Eastern Transportation Corridor Agency, California, Toll Road 1/10 at 101 AAA 3,346,173
Refunding Revenue Bonds, Series 1999, 5.750%, 1/15/40
2,000 Port of Oakland, California, Revenue Bonds, 2000 Series K, 5.750%, 5/10 at 100 AAA 2,045,200
11/01/29 (Alternative Minimum Tax)
5,000 Airports Commission of the City and County of San Francisco, California, 5/06 at 101 AAA 5,060,500
San Francisco International Airport, Second Series Revenue Bonds, Issue
13B, 5.625%, 5/01/21 (Alternative Minimum Tax)
1,320 Airport Commission of the City and County of San Francisco, California, 1/08 at 102 AAA 1,397,154
San Francisco International Airport, 1997 Special Facilities Lease
Revenue Bonds (SFO Fuel Company LLC), Series 2000A, 6.100%, 1/01/20
(Alternative Minimum Tax)
2,000 Southern California Rapid Transit District, Certificates of Participation 1/01 at 102 1/2 AAA 2,071,080
(Workers Compensation Funding Program), 7.500%, 7/01/05
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 16.0%
7,000 City of Big Bear Lake, California, 1992 Water Revenue Refunding Bonds, 4/02 at 102 AAA 7,387,730
6.375%, 4/01/22 (Pre-refunded to 4/01/02)
3,525 Brea Public Financing Authority (Orange County, California), 1991 Tax 8/01 at 102 AAA 3,689,864
Allocation Revenue Bonds, Series A (Redevelopment Project AB), 7.000%,
8/01/15 (Pre-refunded to 8/01/01)
3,000 Calaveras County Water District (California), Certificates of 5/01 at 102 AAA 3,116,610
Participation (1991 Ebbetts Pass Water System Improvements Project),
6.900%, 5/01/16 (Pre-refunded to 5/01/01)
</TABLE>
_____
11
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Insured Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 1,000 California Educational Facilities Authority, Revenue Bonds 11/00 at 102 AAA $ 1,025,190
(Pepperdine University), Series 1990, 7.200%, 11/01/15
(Pre-refunded to 11/01/00)
2,000 Eastern Municipal Water District (Riverside County, California), 7/01 at 102 AAA 2,080,580
Water and Sewer Revenue Certificates of Participation, Series
1991, 6.500%, 7/01/20 (Pre-refunded to 7/01/01)
5,000 Los Angeles County Transportation Commission (California), 7/02 at 102 AAA 5,292,850
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A, 6.250%, 7/01/13 (Pre-refunded to 7/01/02)
4,500 Modesto Irrigation District Financing Authority, Domestic Water 9/02 at 102 AAA 4,766,535
Project Revenue Bonds, Series 1992A, 6.125%, 9/01/19
(Pre-refunded to 9/01/02)
2,500 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds, 12/00 at 102 AAA 2,574,325
1990 Series A, 8.000%, 12/01/11 (Pre-refunded to 12/01/00)
2,000 Redevelopment Agency of the City of Pittsburg, California, 8/01 at 103 AAA 2,115,520
Los Medanos Community Development Project, Tax Allocation Bonds,
Series 1991, 7.150%, 8/01/21 (Pre-refunded to 8/01/01)
3,000 Sacramento Municipal Utility District (California), Electric 9/01 at 102 AAA 3,133,050
Revenue Bonds, 1991 Series Y, 6.500%, 9/01/21 (Pre-refunded
to 9/01/01)
2,500 San Bernardino County Transportation Authority, Sales Tax Revenue 3/02 at 102 AAA 2,604,475
Bonds (Limited Tax Bonds), 1992 Series A, 6.000%, 3/01/10
-----------------------------------------------------------------------------------------------------------------------------------
Utilities - 1.4%
3,000 City of Shasta Lake, 1996-2 Certificates of Participation, 6.000%, 4/05 at 102 AAA 3,191,490
4/01/16
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 1.0%
2,500 The Metropolitan Water District of Southern California, Water 7/06 at 100 AAA 2,293,673
Revenue Refunding Bonds, 1996 Series B, 4.750%, 7/01/21
-----------------------------------------------------------------------------------------------------------------------------------
$326,520 Total Investments (cost $214,996,988) - 96.5% 227,873,491
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.5% 8,291,833
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 236,165,324
====================================================================================================================
</TABLE>
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed
by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
_____
12
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 2000
<TABLE>
<CAPTION>
California
California Insured
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments in municipal securities, at market value $264,163,325 $227,873,491
Cash 519,236 336,266
Receivables:
Interest 4,762,642 3,471,162
Investments sold 927,000 5,100,000
Shares sold 441,062 182,071
Other assets 2,808 1,488
----------------------------------------------------------------------------------------------------------
Total assets 270,816,073 236,964,478
----------------------------------------------------------------------------------------------------------
Liabilities
Payable for shares redeemed 97,725 8,880
Accrued expenses:
Management fees 123,851 108,621
12b-1 distribution and service fees 27,579 23,165
Other 87,305 82,181
Dividends payable 657,616 576,307
----------------------------------------------------------------------------------------------------------
Total liabilities 994,076 799,154
----------------------------------------------------------------------------------------------------------
Net assets $269,821,997 $236,165,324
==========================================================================================================
Class A Shares
Net assets $ 50,744,657 $ 57,179,081
Shares outstanding 4,879,274 5,375,909
Net asset value and redemption price per share $ 10.40 $ 10.64
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 10.86 $ 11.11
==========================================================================================================
Class B Shares
Net assets $ 11,898,257 $ 11,379,040
Shares outstanding 1,145,112 1,068,953
Net asset value, offering and redemption price per share $ 10.39 $ 10.65
==========================================================================================================
Class C Shares
Net assets $ 15,875,975 $ 7,115,777
Shares outstanding 1,526,429 673,259
Net asset value, offering and redemption price per share $ 10.40 $ 10.57
==========================================================================================================
Class R Shares
Net assets $191,303,108 $160,491,426
Shares outstanding 18,370,895 15,107,634
Net asset value, offering and redemption price per share $ 10.41 $ 10.62
==========================================================================================================
</TABLE>
See accompanying notes to financial statements.
_____
13
<PAGE>
Statement of Operations (Unaudited)
Six Months Ended August 31, 2000
<TABLE>
<CAPTION>
California
California Insured
------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income $ 8,605,011 $ 6,952,724
------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 722,955 634,910
12b-1 service fees - Class A 49,257 54,788
12b-1 distribution and service fees - Class B 50,214 52,844
12b-1 distribution and service fees - Class C 58,894 27,457
Shareholders' servicing agent fees and expenses 102,011 78,206
Custodian's fees and expenses 40,591 36,958
Trustees' fees and expenses 5,076 4,613
Professional fees 8,716 8,614
Shareholders' reports - printing and mailing expenses 22,658 10,950
Federal and state registration fees 3,186 1,953
Portfolio insurance expense -- 690
Other expenses 6,785 5,902
------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit 1,070,343 917,885
Custodian fee credit (12,255) (9,995)
------------------------------------------------------------------------------------------------------------------
Net expenses 1,058,088 907,890
------------------------------------------------------------------------------------------------------------------
Net investment income 7,546,923 6,044,834
------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions 372,486 (163,096)
Net change in unrealized appreciation or depreciation of investments 9,593,924 10,072,375
------------------------------------------------------------------------------------------------------------------
Net gain from investments 9,966,410 9,909,279
------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 17,513,333 $ 15,954,113
==================================================================================================================
</TABLE>
See accompanying notes to financial statements.
_____
14
<PAGE>
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
California California Insured
------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/00 2/29/00 8/31/00 2/29/00
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 7,546,923 $ 14,687,564 $ 6,044,834 $ 12,238,277
Net realized gain (loss) from investment transactions 372,486 (671,954) (163,096) (2,150,082)
Net change in unrealized appreciation or depreciation
of investments 9,593,924 (22,618,973) 10,072,375 (18,494,773)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 17,513,333 (8,603,363) 15,954,113 (8,406,578)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From undistributed net investment income:
Class A (1,335,621) (2,397,373) (1,398,799) (2,492,127)
Class B (248,919) (428,484) (243,492) (455,617)
Class C (385,364) (530,805) (168,573) (301,363)
Class R (5,401,861) (11,164,199) (4,248,861) (8,833,909)
From accumulated net realized gains from investment transactions:
Class A -- (20,496) -- --
Class B -- (3,705) -- --
Class C -- (4,435) -- --
Class R -- (73,356) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (7,371,765) (14,622,853) (6,059,725) (12,083,016)
------------------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 11,975,180 53,669,029 13,937,999 31,862,064
Net proceeds from shares issued to shareholders due
to reinvestment of distributions 3,966,101 8,301,339 3,493,035 6,931,054
------------------------------------------------------------------------------------------------------------------------------------
15,941,281 61,970,368 17,431,034 38,793,118
Cost of shares redeemed (18,782,700) (50,606,014) (19,452,436) (38,558,155)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (2,841,419) 11,364,354 (2,021,402) 234,963
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 7,300,149 (11,861,862) 7,872,986 (20,254,631)
Net assets at the beginning of period 262,521,848 274,383,710 228,292,338 248,546,969
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 269,821,997 $ 262,521,848 $236,165,324 $228,292,338
====================================================================================================================================
Balance of undistributed net investment income at the end of period $ 528,716 $ 353,558 $ 174,861 $ 189,752
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
______
15
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust II (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen California Municipal Bond Fund ("California") and the
Nuveen California Insured Municipal Bond Fund ("California Insured")
(collectively, the "Funds"), among others. The Trust was organized as a
Massachusetts business trust on July 1, 1996.
Each Fund seeks to provide high tax-free income and preservation of capital
through investments in diversified portfolios of quality municipal bonds.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market 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 and general market
conditions. Temporary investments in securities that have variable rate and
demand features qualifying them as short-term securities are valued at amortized
cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject
to market fluctuation during this period. The Funds have instructed the custo-
dian to segregate assets in a separate account with a current value at least
equal to the amount of the when-issued and delayed delivery purchase
commitments. At August 31, 2000, the Funds had no such outstanding purchase
commitments. Investment Income Interest income is determined on the basis of
interest accrued, adjusted for amortization of premiums and accretion of
discounts on long-term debt securities when required for federal income tax
purposes.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. 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, and net
realized capital gains and/or market discount 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 accounting principles
generally accepted in the United States. Accordingly, temporary over-distribu-
tions as a result of these differences may occur and will be classified as
either distributions in excess of net investment income, distributions in excess
of net realized gains and/or distributions in excess of net ordinary taxable
income from investment transactions, where applicable.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount from investment transactions. The Funds
currently consider significant net realized capital gains and/or market discount
as amounts in excess of $.001 per share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal and California state personal income taxes, to
retain such tax-exempt status when distributed to the shareholders of the Funds.
Net realized capital gain and market discount distributions are subject to
federal taxation.
____
16
<PAGE>
Insurance
California Insured invests in municipal securities which are either covered by
insurance or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest. Each insured municipal security is covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance.
Such insurance does not guarantee the market value of the municipal securities
or the value of the Fund's shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Fund ultimately disposes of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Fund. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the net asset value of the Fund's
shares include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Fund the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur an annual 12b-1 service fee. Class A Share purchases of
$1 million or more are sold at net asset value without an up-front sales charge
but may be subject to a contingent deferred sales charge ("CDSC") if redeemed
within 18 months of purchase. Class B Shares are sold without a sales charge but
incur annual 12b-1 distribution and service fees. An investor purchasing Class B
Shares agrees to pay a CDSC of up to 5% depending upon the length of time the
shares are held by the investor (CDSC is reduced to 0% at the end of six years).
Class B Shares convert to Class A Shares eight years after purchase. Class C
Shares are sold without a sales charge but incur annual 12b-1 distribution and
service fees. An investor purchasing Class C Shares agrees to pay a CDSC of 1%
if Class C Shares are redeemed within one year of purchase. Class R Shares are
not subject to any sales charge or 12b-1 distribution or service fees. Class R
Shares are available only under limited circumstances, or by specified classes
of investors.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics including inverse floating rate securities. During
the six months ended August 31, 2000, the California Fund invested in inverse
floating rate securities for the purpose of enhancing portfolio yield. Floating
rate securities are identified in the Portfolio of Investments and are marked to
market daily. The interest rate of an inverse floating rate security has an
inverse relationship to the interest rate of a short-term floating rate
security. Consequently, as the interest rate of the floating rate security
rises, the interest rate on the inverse floating rate security declines.
Conversely, as the interest rate of the floating rate security declines the
interest rate on the inverse floating rate security rises. The price of an
inverse floating rate security will be more volatile than that of a fixed rate
security since the interest rate is dependent on the general level of interest
rates as well as the short-term interest rate paid on the floating rate
security. The California Insured Fund did not invest in any such securities
during the six months ended August 31, 2000.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently only
includes 12b-1 distribution and service fees, are recorded to the specific
class.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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.
____
17
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
2. Fund Shares
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
California
------------------------------------------------------
Six Months Ended 8/31/00 Year Ended 2/29/00
------------------------- -----------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 623,801 $ 6,335,976 3,432,125 $ 35,505,654
Class B 174,376 1,789,266 513,199 5,394,532
Class C 176,416 1,803,936 772,432 7,884,193
Class R 200,462 2,046,002 466,998 4,884,650
Shares issued to shareholders due to reinvestment of distributions:
Class A 50,899 516,493 103,305 1,078,310
Class B 8,759 88,835 14,385 149,673
Class C 13,776 139,744 21,661 225,699
Class R 316,988 3,221,029 654,133 6,847,657
------------------------------------------------------------------------------------------------------------------------------
1,565,477 15,941,281 5,978,238 61,970,368
------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (647,762) (6,546,261) (2,039,895) (20,711,423)
Class B (69,743) (705,276) (171,297) (1,754,561)
Class C (175,648) (1,790,767) (232,384) (2,371,152)
Class R (956,611) (9,740,396) (2,486,309) (25,768,878)
------------------------------------------------------------------------------------------------------------------------------
(1,849,764) (18,782,700) (4,929,885) (50,606,014)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (284,287) $ (2,841,419) 1,048,353 $ 11,364,354
==============================================================================================================================
<CAPTION>
California Insured
------------------------------------------------------
Six Months Ended 8/31/00 Year Ended 2/29/00
------------------------- -----------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 825,867 $ 8,568,479 1,721,823 $ 18,028,989
Class B 145,444 1,500,393 486,871 5,202,861
Class C 142,291 1,468,446 323,797 3,395,642
Class R 231,161 2,400,681 496,702 5,234,572
Shares issued to shareholders due to reinvestment of distributions:
Class A 73,183 755,111 118,515 1,251,002
Class B 9,870 101,853 16,888 177,619
Class C 11,316 116,033 17,583 184,642
Class R 244,603 2,520,038 502,955 5,317,791
------------------------------------------------------------------------------------------------------------------------------
1,683,735 17,431,034 3,685,134 38,793,118
------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (626,085) (6,456,716) (998,979) (10,412,414)
Class B (155,762) (1,615,366) (229,021) (2,375,795)
Class C (127,361) (1,326,265) (328,644) (3,427,568)
Class R (970,186) (10,054,089) (2,129,612) (22,342,378)
------------------------------------------------------------------------------------------------------------------------------
(1,879,394) (19,452,436) (3,686,256) (38,558,155)
------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (195,659) $ (2,021,402) (1,122) $ 234,963
==============================================================================================================================
</TABLE>
3. Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid October 2, 2000, to shareholders of record on September
8, 2000, as follows:
California California Insured
--------------------------------------------------------------------------
Dividend per share:
Class A $.0465 $.0445
Class B .0405 .0380
Class C .0420 .0395
Class R .0485 .0460
==========================================================================
____
18
<PAGE>
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended August
31, 2000, were as follows:
<TABLE>
<CAPTION>
California California Insured
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Purchases:
Long-term municipal securities $ 48,807,384 $ 11,412,319
Short-term municipal securities 17,900,000 10,500,000
Sales and maturities:
Long-term municipal securities 58,720,265 21,699,735
Short-term municipal securities 17,900,000 25,600,000
==================================================================================================
</TABLE>
At August 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
California California Insured
--------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 259,132,661 $ 215,698,071
==================================================================================================
</TABLE>
At February 29, 2000, the Funds' last fiscal year end, the Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
<TABLE>
<CAPTION>
California California Insured
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Expiration Year:
2008 $ 690,434 $ 1,507,433
==================================================================================================
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at August 31, 2000, were as follows:
<TABLE>
<CAPTION>
California California Insured
---------------------------------------------------------------------------------------------------
<S> <C> <C>
Gross unrealized:
appreciation $ 9,911,078 $ 13,639,352
depreciation (4,880,414) (1,463,932)
---------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 5,030,664 $ 12,175,420
===================================================================================================
</TABLE>
6. Management Fee and Other Transactions with Affiliates
Under the Trust's investment management agreement with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below
which are based upon the average daily net assets of each Fund:
Average Daily Net Assets Management Fee
-----------------------------------------------------------------------------
For the first $125 million .5500 of 1%
For the next $125 million .5375 of 1
For the next $250 million .5250 of 1
For the next $500 million .5125 of 1
For the next $1 billion .5000 of 1
For net assets over $2 billion .4750 of 1
=============================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Trust 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 Trust from the Adviser or its affiliates.
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of each Fund in order to limit total expenses to .75 of 1% of the
average daily net assets of California and .975 of 1% of the average daily net
assets of California Insured, excluding any 12b-1 fees applicable to Class A, B
and C Shares. The Adviser may also voluntarily agree to reimburse addi- tional
expenses from time to time, which may be terminated at any time at its
discretion.
During the six months ended August 31, 2000, the Distributor collected sales
charges on purchases of Class A Shares of approximately $45,300 and $37,000
for California and California Insured, respectively, of which approximately
$42,000 and $37,000 respectively, were paid out as concessions to authorized
dealers. The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
____
19
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
During the six months ended August 31, 2000, the Distributor compensated
authorized dealers directly with approximately $72,600 and $124,700 in
commission advances at the time of purchase for California and California
Insured, respectively. To compensate for commissions advanced to authorized
dealers, all 12b-1 service fees collected on Class B Shares during the first
year following a purchase, all 12b-1 distribution fees collected on Class B
Shares, and all 12b-1 service and distribution fees collected on Class C Shares
during the first year following a purchase are retained by the Distributor.
During the six months ended August 31, 2000, the Distributor retained
approximately $57,900 and $54,200 in such 12b-1 fees for California and
California Insured, respectively. The remaining 12b-1 fees charged to the Funds
were paid to compensate authorized dealers for providing services to
shareholders relating to their investments. The Distributor also collected and
retained approximately $30,600 and $60,200 of CDSC on share redemptions for
California and California Insured, respectively, during the six months ended
August 31, 2000.
7. Composition of Net Assets
At August 31, 2000, the Fund had an unlimited number of $.01 par value shares
authorized. Net assets consisted of:
<TABLE>
<CAPTION>
California California Insured
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Capital paid-in $ 264,580,565 $ 225,485,572
Balance of undistributed net investment income 528,716 174,861
Accumulated net realized gain (loss) from investment transactions (317,948) (2,371,612)
Net unrealized appreciation of investments 5,030,664 12,876,503
----------------------------------------------------------------------------------------------------------------------------
Net assets $ 269,821,997 $ 236,165,324
============================================================================================================================
</TABLE>
____
20
<PAGE>
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
Class (Inception Date)
<TABLE>
<CAPTION>
Investment Operations Less Distributions
---------------------- ------------------
Net
CALIFORNIA Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Year Ended Asset ment Gain ment Capital Asset Total
February 28/29, Value Income (Loss) Total Income Gains Total Value Return (a)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) $10.01 $.29 $ .38 $ .67 $ (.28) $ -- $ (.28) 10.40 6.76%
2000 10.89 .55 (.89) (.34) (.54) -- (.54) 10.01 (3.12)
1999 10.91 .54 .03 .57 (.54) (.05) (.59) 10.89 5.28
1998 10.58 .55 .37 .92 (.55) (.04) (.59) 10.91 8.87
1997 10.58 .55 (.01) .54 (.54) -- (.54) 10.58 5.29
1996 10.10 .55 .47 1.02 (.54) -- (.54) 10.58 10.36
Class B (3/97)
2001 (d) 10.00 .25 .38 .63 (.24) -- (.24) 10.39 6.39
2000 10.89 .47 (.89) (.42) (.47) -- (.47) 10.00 (3.93)
1999 10.92 .47 .01 .48 (.46) (.05) (.51) 10.89 4.44
1998 (e) 10.56 .46 .41 .87 (.47) (.04) (.51) 10.92 8.39
Class C (9/94)
2001 (d) 10.01 .26 .38 .64 (.25) -- (.25) 10.40 6.48
2000 10.90 .50 (.90) (.40) (.49) -- (.49) 10.01 (3.74)
1999 10.92 .49 .02 .51 (.48) (.05) (.53) 10.90 4.70
1998 10.58 .49 .38 .87 (.49) (.04) (.53) 10.92 8.36
1997 10.58 .47 (.01) .46 (.46) -- (.46) 10.58 4.53
1996 10.10 .47 .47 .94 (.46) -- (.46) 10.58 9.53
Class R (7/86)
2001 (d) 10.02 .30 .38 .68 (.29) -- (.29) 10.41 6.87
2000 10.91 .57 (.89) (.32) (.57) -- (.57) 10.02 (2.98)
1999 10.93 .56 .03 .59 (.56) (.05) (.61) 10.91 5.50
1998 10.61 .57 .36 .93 (.57) (.04) (.61) 10.93 8.99
1997 10.60 .57 .01 .58 (.57) -- (.57) 10.61 5.67
1996 10.13 .58 .46 1.04 (.57) -- (.57) 10.60 10.54
=====================================================================================================================
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement (b) Reimbursement (c)
---------------------- --------------------- ---------------------
Ratio Ratio Ratio
of Net of Net of Net
Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Year Ended Assets Net Net Net Net Net Net Turnover
February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) $ 50,745 .88%* 5.57%* .88%* 5.57%* .88%* 5.58%* 18%
2000 48,560 .86 5.32 .86 5.32 .85 5.33 31
1999 36,568 .90 4.97 .90 4.97 .90 4.97 34
1998 29,125 .90 5.11 .90 5.11 .90 5.11 45
1997 20,571 .94 5.16 .94 5.16 .94 5.16 74
1996 12,709 1.00 5.23 .96 5.27 .96 5.27 36
Class B (3/97)
2001 (d) 11,898 1.63* 4.81* 1.63* 4.81* 1.62* 4.82* 18
2000 10,318 1.61 4.56 1.61 4.56 1.60 4.56 31
1999 7,353 1.65 4.23 1.65 4.23 1.65 4.23 34
1998 (e) 2,324 1.66* 4.31* 1.66* 4.31* 1.66* 4.31* 45
Class C (9/94)
2001 (d) 15,876 1.43* 5.02* 1.43* 5.02* 1.43* 5.03* 18
2000 15,132 1.41 4.75 1.41 4.75 1.40 4.76 31
1999 10,353 1.45 4.43 1.45 4.43 1.45 4.43 34
1998 4,061 1.45 4.56 1.45 4.56 1.45 4.56 45
1997 1,003 1.67 4.44 1.67 4.44 1.67 4.44 74
1996 684 1.84 4.39 1.71 4.52 1.71 4.52 36
Class R (7/86)
2001 (d) 191,303 .68* 5.78* .68* 5.78* .68* 5.78* 18
2000 188,512 .66 5.47 .66 5.47 .65 5.48 31
1999 220,109 .71 5.16 .71 5.16 .71 5.16 34
1998 216,309 .70 5.31 .70 5.31 .70 5.31 45
1997 214,253 .70 5.41 .70 5.41 .70 5.41 74
1996 216,390 .71 5.53 .71 5.53 .71 5.53 36
====================================================================================================================
</TABLE>
* Annualized.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) For the six months ended August 31, 2000.
(e) From commencement of class operations as noted.
See accompanying notes to financial statements.
____
21
<PAGE>
Financial Highlights (Unaudited) (continued)
Selected data for a share outstanding throughout each period:
Class (Inception Date)
<TABLE>
<CAPTION>
Investment Operations Less Distributions
------------------------------------ ------------------------------
Net
CALIFORNIA INSURED Realized/
Beginning Net Unrealized Net
Year Ended Net Asset Investment Investment Investment Capital Ending Net Total
February 28/29, Value Income Gain (Loss) Total Income Gains Total Asset Value Return(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) $ 10.19 $.27 $ .45 $ .72 $ (.27) $ -- $(.27) $ 10.64 7.13%
2000 11.10 .53 (.92) (.39) (.52) -- (.52) 10.19 (3.52)
1999 11.06 .52 .06 .58 (.53) (.01)** (.54) 11.10 5.31
1998 10.70 .54 .36 .90 (.54) -- (.54) 11.06 8.66
1997 10.76 .55 (.08) .47 (.53) -- (.53) 10.70 4.57
1996 10.25 .53 .51 1.04 (.53) -- (.53) 10.76 10.32
Class B (3/97)
2001 (d) 10.20 .23 .45 .68 (.23) -- (.23) 10.65 6.72
2000 11.11 .45 (.92) (.47) (.44) -- (.44) 10.20 (4.26)
1999 11.06 .44 .06 .50 (.44) (.01)** (.45) 11.11 4.61
1998 (e) 10.67 .45 .40 .85 (.46) -- (.46) 11.06 8.13
Class C (9/94)
2001 (d) 10.13 .24 .44 .68 (.24) -- (.24) 10.57 6.76
2000 11.03 .47 (.91) (.44) (.46) -- (.46) 10.13 (4.03)
1999 10.98 .46 .06 .52 (.46) (.01)** (.47) 11.03 4.81
1998 10.63 .47 .35 .82 (.47) -- (.47) 10.98 7.96
1997 10.67 .46 (.05) .41 (.45) -- (.45) 10.63 3.99
1996 10.15 .45 .51 .96 (.44) -- (.44) 10.67 9.67
Class R (7/86)
2001 (d) 10.18 .28 .44 .72 (.28) -- (.28) 10.62 7.13
2000 11.08 .55 (.91) (.36) (.54) -- (.54) 10.18 (3.27)
1999 11.04 .54 .06 .60 (.55) (.01)** (.56) 11.08 5.49
1998 10.68 .56 .36 .92 (.56) -- (.56) 11.04 8.86
1997 10.74 .56 (.07) .49 (.55) -- (.55) 10.68 4.81
1996 10.23 .56 .50 1.06 (.55) -- (.55) 10.74 10.63
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement (b) Reimbursement (c)
-------------------------- -------------------------- -------------------------
Ratio of Net Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to Expenses Income to Portfolio
Year Ended Net Asset to Average Average to Average Average to Average Average Turnover
February 28/29 (000) Net Assets Net Assets Net Assets Net Assets Net Assets Net Assets Rate
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) $ 57,179 .87%* 5.09%* .87%* 5.09%* .86%* 5.09%* 5%
2000 52,014 .88 5.02 .88 5.02 .88 5.02 44
1999 47,300 .93 4.72 .93 4.72 .93 4.72 25
1998 36,203 .90 4.93 .90 4.93 .90 4.93 26
1997 27,598 .94 5.05 .94 5.05 .94 5.05 51
1996 17,250 .98 4.99 .97 5.00 .97 5.00 38
Class B (3/97)
2001 (d) 11,379 1.62* 4.34* 1.62* 4.34* 1.61* 4.35* 5
2000 10,909 1.64 4.27 1.64 4.27 1.63 4.28 44
1999 8,825 1.68 3.96 1.68 3.96 1.68 3.96 25
1998 (e) 2,967 1.66* 4.16* 1.66* 4.16* 1.66* 4.16* 26
Class C (9/94)
2001 (d) 7,116 1.42* 4.54* 1.42* 4.54* 1.41* 4.55* 5
2000 6,552 1.43 4.45 1.43 4.45 1.43 4.46 44
1999 6,994 1.48 4.17 1.48 4.17 1.48 4.17 25
1998 3,226 1.45 4.37 1.45 4.37 1.45 4.37 26
1997 1,719 1.67 4.32 1.67 4.32 1.67 4.32 51
1996 1,040 1.74 4.23 1.71 4.26 1.71 4.26 38
Class R (7/86)
2001 (d) 160,491 .67* 5.29* .67* 5.29* .66* 5.30* 5
2000 158,816 .68 5.20 .68 5.20 .68 5.20 44
1999 185,428 .74 4.92 .74 4.92 .74 4.92 25
1998 191,554 .70 5.14 .70 5.14 .70 5.14 26
1997 195,553 .69 5.30 .69 5.30 .69 5.30 51
1996 205,642 .70 5.29 .70 5.29 .70 5.29 38
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** The amounts shown include distributors in excess of capital gains of $.003
per share.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) For the six months ended August 31, 2000.
(e) From commencement of class operations as noted.
See accompanying notes to financial statements.
_____
22
<PAGE>
Notes
___
23
<PAGE>
Notes
___
24
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawerence H. Brown
Annee E. Impelizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and
Shareholder Services
Chase Global Funds Services
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public
Accountants
Arthur Andersen LLP
Chicago, IL
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and their
associated persons in response to either telephone inquiries at (800) 289-9999
or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an
investor brochure that includes information describing the Public Disclosure
Program.
___
25
<PAGE>
Serving Investors For Generations
A 100-Year Tradition of Quality Investments
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
John Nuveen, Sr.
Since 1898, Nuveen Investments has been synonymous with investments that
withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Advisor Today
To find out how Nuveen Mutual Funds might round out your investment portfolio,
contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more
information. Ask your advisor or call for a prospectus, which details risks,
fees and expenses. Please read the prospectus carefully before you invest.
Nuveen Investments
Nuveen Investments
333 West Wacker Drive
Chicago, Illinois 60606-1286
www.nuveen.com
<PAGE>
NUVEEN
Investments
Municipal Bond Funds
SEMIANNUAL REPORT AUGUST 31, 2000
Dependable, tax-free income to help you keep more of what you earn.
[PHOTOS APPEAR HERE]
INVEST WELL
LOOK AHEAD
LEAVE YOUR MARK/S/
Connecticut
Massachusetts
Massachusetts Insured
<PAGE>
Dear Shareholders,
You may notice a change in your fund's semiannual report.
We've simplified the format to make it easier for you to get
the information you want. We have consolidated the chart
information. Statistics such as total returns and yields for
your fund, portfolio allocation and credit quality -- are
now all on one easy-to-read page. Finally, we want you to
know what has happened in the municipal bond market without
having to wade through a lot of technical analysis, so we
have limited economic commentary about the period to one
page.
Your annual report, which will cover the 12-month period
ending February 28, 2001, will as always, include an in-
depth interview with your fund's portfolio manager. We
strongly encourage you to read that report when you receive
it next year, as it strives to educate you on the value of
Nuveen's active management of your mutual fund.
If you have any questions about the changes made to your
semiannual report, please do not hesitate to contact
Shareholder Services at (800) 257-8787. You can also contact
us through our Internet site, www.nuveen.com.
Contents
1 Dear Shareholder
3 Market Commentary
4 Connecticut Spotlight
5 Massachusetts Spotlight
6 Massachusetts Insured Spotlight
7 Portfolio of Investments
20 Statement of Net Assets
21 Statement of Operations
22 Statement of Changes in Net Assets
23 Notes to Financial Statements
28 Financial Highlights
33 Fund Information
Must be preceded by or accompanied by a prospectus.
<PAGE>
DEAR
Shareholder,
[PHOTOS OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
Chairman or the Board
Harvard University, Tiffany's and Dom Perignon are each the Rolls-Royce of its
market. Each is synonymous with "quality." Each has established, reinforced and
marketed its brand as one that consistently delivers a quality product -- be it
education, fine jewelry or champagne. Each has made a promise to its customers,
and each works hard to keep that promise, year after year.
Webster defines quality as the degree of excellence that a thing possesses.
Nuveen Investments defines quality by the excellence of our portfolio management
and products as well as of the financial advisors you, and our firm, work with.
Quality Portfolio Management and Products
Nuveen's income-oriented funds feature portfolio management by Nuveen Investment
Management (NIM). NIM follows a disciplined, research-driven investment approach
to uncover income securities that combine exceptional relative value with
above-average return potential. Drawing on 300 combined years of investment
experience, the Nuveen team of portfolio managers and research analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence of trading leverage of a market leader.
While you may be familiar with our municipal bond funds, you may not be
aware of the equity mutual funds we offer investors. Our two newest funds
-- Nuveen Innovation and Nuveen International Growth -- were launched in
December 1999. These funds are managed by Columbus Circle Investors (CCI), a
firm that has been managing money for more than 25 years and has used a single,
disciplined investment philosophy called "Positive Momentum and Positive
Surprise." This philosophy is based on the premise that:
. Strong companies tend to get stronger. CCI believes a company that
demonstrates positive momentum in its business fundamentals tends to generate
superior returns through rising stock prices. This represents the Positive
Momentum CCI seeks.
. Companies positively surprise when their business fundamentals and reported
results exceed investor and analyst expectations. CCI believes this is often
accompanied by strong, accelerating growth. This represents the Positive
Surprise CCI seeks.
Our Nuveen Rittenhouse Growth Fund is managed by Rittenhouse Financial
Services, Inc., a wholly owned subsidiary of the John Nuveen Company. The
investment philosophy Rittenhouse established years ago remains firmly in place
today -- pursue long-term growth with high-quality, large capitalization blue
chip stocks. This singular focus has translated into consistently strong
risk-adjusted returns and productive, long-lasting relationships.
SEMIANNUAL REPORT page 1
<PAGE>
We also offer several growth and income style funds, all managed by
Institutional Capital Corporation (ICAP), of which the John Nuveen Company holds
a minority interest. ICAP seeks out stocks it believes have appreciation
potential unrecognized by the general market for Nuveen Growth and Income Stock
Fund, Nuveen European Value Fund, Nuveen Balanced Stock and Bond Fund and Nuveen
Balanced Municipal and Stock Fund.
Quality Financial Advisors
Nuveen Investments works through financial advisors because we believe in
quality advice. Today, you face an unprecedented array of investment choices,
opportunities -- and risks. Your investment advisor can offer you the
professional assistance that will help bring to life your aspirations -- for
yourself and your family, today and in the future.
This Report
Please review your fund's Financial Spotlight to learn how it is positioned as
of its semiannual period, ended August 31, 2000. Also, I invite you to read the
following Market Commentary to learn more about the economic environment in
which your fund performed.
For more information on any Nuveen investment, including a prospectus, contact
your financial advisor. Or call Nuveen at (800) 621-7227 or visit our Internet
site at www.nuveen.com. Please read the prospectus carefully before you invest
or send money.
Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 18, 2000
SEMIANNUAL REPORT page 2
<PAGE>
NUVEEN MUNICIPAL FUNDS
Market Commentary as of August 31, 2000
Municipal bonds performed well during the six-month period ended August 31,
2000. During this period, yields on long-term municipal bonds declined by
approximately 54 basis points, resulting in a corresponding rise in bond prices.
Three reasons account for this performance. First, the likelihood of a
Federal Reserve tightening -- in the view of the general market -- fell as signs
of inflation did not appear. Secondly, new issue supply in the municipal market
remained low. This was due in part to the fact that many municipalities have
been funding capital projects with current strong tax collections rather than
with long-term debt. Finally, volatility and lack-luster returns in the equity
market have increasingly turned investor attention to the municipal market.
During the period, credit spreads -- the basis point difference
between yields on high-grade bonds and low-grade bonds -- tightened. Still,
compared with credit spreads over the last several years, the spreads remained
attractive. Liquidity spreads -- the basis point difference between the yields
offered by sellers and yields demanded by buyers -- remained wide and volatile
creating opportunities for value trading.
The strong economy continued to generate strong tax collections for
municipalities throughout the country. In addition to reducing the need for debt
issuance, the collections have contributed to improved credit quality among many
municipal issuers. The recent upgrade of New York City to A, its highest rating
in 25 years, illustrates this trend.
Among the noteworthy deals this quarter were two tobacco settlement-
backed bond issues, both on behalf of New York counties. In the $206 billion
settlement between 46 states and major tobacco companies, the states exchanged
all smoking-related claims for a stream of annual payments from the tobacco
companies. Several states and counties have come to market to borrow against the
future stream of payments. Proceeds of these transactions have been applied to
several different municipal purposes. We expect to see many more tobacco deals
over the next year.
A Look Ahead
We believe the Fed will remain on hold through the elections. As the
traditionally slow time of the year for the bond market -- summer -- has ended,
supply could increase incrementally. However, supply will likely remain
significantly below last year because of strong tax collections. Finally, we
believe that investors will increasingly shift money from the equity market to
the bond market if they see equity returns significantly lower than the past
several years.
SEMIANNUAL REPORT page 3
<PAGE>
NUVEEN CONNECTICUT MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
Quick Facts
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
<S> <C> <C> <C> <C>
NAV $ 10.29 $ 10.27 $ 10.27 $ 10.31
------------------------------------------------------------------------------------------------------
August's Declared Dividend* $0.0445 $0.0380 $0.0390 $0.0460
------------------------------------------------------------------------------------------------------
Inception Date 7/87 2/97 10/93 2/97
------------------------------------------------------------------------------------------------------
</TABLE>
*Paid September 1, 2000
Total Returns as of 8/31/00 (Annualized)*
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 4.67% 0.31% 3.87% -0.10% 4.05% 4.75%
------------------------------------------------------------------------------------------------------
5-Year 5.27% 4.37% 4.52% 4.35% 4.67% 5.46%
------------------------------------------------------------------------------------------------------
10-Year 6.66% 6.20% 6.14% 6.14% 6.06% 6.76%
------------------------------------------------------------------------------------------------------
</TABLE>
Total Returns as of 6/30/00 (Annualized)*
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 0.47% -3.71% -0.03% -4.11% -0.02% 0.77%
------------------------------------------------------------------------------------------------------
5-Year 5.04% 4.14% 4.30% 4.13% 4.46% 5.24%
------------------------------------------------------------------------------------------------------
10-Year 6.32% 5.87% 5.81% 5.81% 5.73% 6.43%
------------------------------------------------------------------------------------------------------
</TABLE>
*Class A share returns are actual. Class B, C and R share returns are actual for
the period since class inception; returns prior to class inception are Class A
share returns adjusted for differences in sales charges and expenses, which are
primarily differences in distribution and service fees. Class A shares have a
4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for
redemptions during the first year after purchase and declines periodically to
0% over the following five years. Class C shares have a 1% CDSC for redemptions
within one year, which is not reflected in the one-year total returns.
Tax-Free Yields as of 8/31/00
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
<S> <C> <C> <C> <C> <C>
SEC 30-Day Yield 4.80% 4.59% 4.05% 4.25% 5.00%
------------------------------------------------------------------------------------------------------
Taxable Equivalent Yield* 7.27% 6.95% 6.14% 6.44% 7.58%
------------------------------------------------------------------------------------------------------
</TABLE>
*Based on SEC yield and a combined federal and state income tax rate of 34%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
Portfolio Statistics
Total Net Assets $233.3 million
------------------------------------
Average Effective
Maturity 17.92 years
------------------------------------
Average Duration 6.65
------------------------------------
Top Five Sectors[_]
Tax Obligation (Limited) 17%
------------------------------------
Education and
Civic Organizations 15%
------------------------------------
U.S. Guaranteed 13%
------------------------------------
Tax Obligation (General) 12%
------------------------------------
Healthcare 10%
------------------------------------
Bond Credit Quality[_]
[BAR CHART APPEARS HERE]
49%
AAA/
U.S. Guaranteed
27% AA
10% A
11% BBB
1% NR
2% Other
*As a percentage of total bond holdings as of August 31, 2000. Holdings are
subject to change.
SEMIANNUAL REPORT page 4
<PAGE>
NUVEEN MASSACHUSETTS MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
Quick Facts
A Shares B Shares C Shares R Shares
NAV $ 9.53 $ 9.55 $ 9.47 $ 9.51
----------------------------------------------------------------------
August's Declared Dividend* $0.0420 $0.0360 $0.0375 $0.0435
----------------------------------------------------------------------
Inception Date 9/94 3/97 10/94 12/86
----------------------------------------------------------------------
*Paid September 1, 2000
Total Returns as of 8/31/00 (Annualized)*
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 4.71% 0.32% 3.90% -0.07% 4.03% 4.92%
-------------------------------------------------------------------------
5-Year 4.81% 3.91% 4.08% 3.91% 4.17% 5.04%
-------------------------------------------------------------------------
10-Year 6.63% 6.17% 6.03% 6.03% 5.89% 6.86%
-------------------------------------------------------------------------
Total Returns as of 6/30/00 (Annualized)*
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 1.01% -3.25% 0.24% -3.59% 0.54% 1.31%
-------------------------------------------------------------------------
5-Year 4.57% 3.68% 3.84% 3.67% 3.94% 4.79%
-------------------------------------------------------------------------
10-Year 6.20% 5.74% 5.60% 5.60% 5.47% 6.43%
-------------------------------------------------------------------------
* Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a CDSC that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class C shares have a 1%
CDSC for redemptions within one year, which is not reflected in the one-year
total returns.
Tax - Free Yields as of 8/31/00
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
SEC 30-Day Yield 4.84% 4.63% 4.09% 4.29% 5.04%
-----------------------------------------------------------------------------
Taxable Equivalent Yield* 7.45% 7.12% 6.29% 6.60% 7.75%
-----------------------------------------------------------------------------
* Based on SEC yield and a combined federal and state income tax rate of 35%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Portfolio Statistics
Total Net Assets $95.9 million
--------------------------------------------------------
Average Effective Maturity 18.43 years
--------------------------------------------------------
Average Duration 7.18
--------------------------------------------------------
Top Five Sectors [_]
U.S. Guaranteed 23%
----------------------------------
Long-Term Care 15%
----------------------------------
Healthcare 14%
----------------------------------
Housing (Multifamily) 13%
----------------------------------
Tax Obligation (General) 12%
----------------------------------
Bond Credit Quality [_]
[BAR CHART APPEARS HERE]
AAA/U.S. Guaranteed 49%
AA 15%
A 15%
BBB 16%
NR 5%
[_] As a percentage of total long-term bond holdings as of August 31, 2000.
Holdings are subject to change.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
SEMIANNUAL REPORT page 5
<PAGE>
NUVEEN MASSACHUSETTS INSURED MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
Quick Facts
A Shares B Shares C Shares R Shares
NAV $ 10.07 $ 10.08 $ 10.05 $ 10.08
--------------------------------------------------------------------------------
August's Declared Dividend* $ 0.0420 $ 0.0355 $ 0.0370 $ 0.0435
--------------------------------------------------------------------------------
Inception Date 9/94 3/97 9/94 12/86
--------------------------------------------------------------------------------
* Paid September 1, 2000
<TABLE>
<CAPTION>
Total Returns as of 8/31/00 (Annualized)*
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
<S> <C> <C> <C> <C> <C> <C>
1-Year 5.33% 0.92% 4.61% 0.61% 4.71% 5.52%
------------------------------------------------------------------------------------
5-Year 4.70% 3.80% 3.94% 3.77% 4.05% 4.92%
------------------------------------------------------------------------------------
10-Year 6.45% 5.99% 5.86% 5.86% 5.73% 6.70%
------------------------------------------------------------------------------------
Total Returns as of 6/30/00 (Annualized)*
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 1.82% -2.46% 1.03% -2.84% 1.21% 2.00%
------------------------------------------------------------------------------------
5-Year 4.46% 3.57% 3.71% 3.54% 3.82% 4.69%
------------------------------------------------------------------------------------
10-Year 6.15% 5.69% 5.56% 5.56% 5.43% 6.40%
------------------------------------------------------------------------------------
</TABLE>
* Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a CDSC that
begins at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class C shares have a 1%
CDSC for redemptions within one year, which is not reflected in the one-year
total returns.
Tax-Free Yields as of 8/31/00
<TABLE>
<CAPTION>
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
<S> <C> <C> <C> <C> <C>
SEC 30-Day Yield 4.25% 4.07% 3.50% 3.71% 4.45%
----------------------------------------------------------------------------------------------
Taxable Equivalent Yield* 6.54% 6.26% 5.38% 5.71% 6.85%
----------------------------------------------------------------------------------------------
</TABLE>
* Based on SEC yield and a combined federal and state income tax rate of 35%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
Portfolio Statistics
Total Net Assets $69.1 million
------------------------------------------------
Average Effective
Maturity 19.28 years
------------------------------------------------
Average Duration 6.12
------------------------------------------------
Top Five Sectors*
Education and Civic
Organizations 19%
------------------------------------------------
Tax Obligation (General) 18%
------------------------------------------------
U.S. Guaranteed 18%
------------------------------------------------
Housing (Multifamily) 17%
------------------------------------------------
Healthcare 14%
------------------------------------------------
Bond Credit Quality*
[BAR CHART APPEARS HERE]
14% Insured and
U.S. Guaranteed
4% U.S. Guaranteed
82% Insured
* As a percentage of total long-term bond holdings as of August 31, 2000.
Holdings are subject to change.
SEMIANNUAL REPORT page 6
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic Materials - 0.4%
$ 1,000 Town of Sprague, Connecticut, Environmental Improvement Revenue 10/07 at 102 BBB+ $ 935,980
Bonds, 1997 Series A (International Paper Company Project),
5.700%, 10/01/21 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 15.1%
State of Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Greenwich Academy Issue, Series A:
1,000 5.700%, 3/01/16 3/06 at 101 AAA 1,031,670
2,000 5.750%, 3/01/26 3/06 at 101 AAA 2,027,320
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue 5/02 at 102 AAA 1,009,780
Bonds, Yale University, 5.929%, 6/10/30
Connecticut Higher Education Supplemental Loan Authority, Revenue
Bonds (Family Education Loan Program), 1991 Series A:
350 7.000%, 11/15/05 (Alternative Minimum Tax) 11/01 at 102 A 363,916
3,310 7.200%, 11/15/10 (Alternative Minimum Tax) 11/01 at 102 A 3,438,958
Connecticut Higher Education Supplemental Loan Authority, Revenue
Bonds (Family Education Loan Program), 1996 Series A:
1,490 6.300%, 11/15/10 (Alternative Minimum Tax) 11/04 at 102 A1 1,569,790
1,125 6.350%, 11/15/11 (Alternative Minimum Tax) 11/04 at 102 A1 1,185,154
4,400 State of Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 101 AA 3,933,028
Bonds, Sacred Heart University Issue, Series E, 5.000%, 7/01/28
2,875 State of Connecticut Health and Educational Facilities Authority, Revenue 7/03 at 102 BBB- 2,779,435
Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 7/04 at 101 1/2 AAA 2,067,100
Bonds, The Loomis Chaffee School Issue, Series B, 6.000%, 7/01/25
1,500 State of Connecticut Health and Educational Facilities Authority, Revenue 7/05 at 101 AAA 1,477,635
Bonds, Kent School Issue, Series B, 5.400%, 7/01/23
500 State of Connecticut Health and Educational Facilities Authority, Revenue 7/06 at 102 AAA 512,240
Bonds, Trinity College Issue, Series E, 5.875%, 7/01/26
1,490 State of Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 101 AA 1,376,417
Bonds, Canterbury School Issue, Series A, 5.000%, 7/01/18
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 7/07 at 102 AAA 1,958,220
Bonds, Suffield Academy Issue, Series A, 5.400%, 7/01/27
State of Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Fairfield University Issue, Series I:
925 5.250%, 7/01/25 7/09 at 101 AAA 894,420
2,755 5.500%, 7/01/29 7/09 at 101 AAA 2,729,213
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101 Aaa 2,004,660
Bonds, The Horace Bushnell Memorial Hall Issue, Series A, 5.625%, 7/01/29
State of Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Connecticut State University System Issue, Series 1999C:
1,155 5.500%, 11/01/17 11/09 at 101 AAA 1,176,633
1,155 5.500%, 11/01/18 11/09 at 101 AAA 1,172,729
1,155 5.500%, 11/01/19 11/09 at 101 AAA 1,167,878
750 State of Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101 AAA 773,663
Bonds, Connecticut College Issue, Series D-1, 5.750%, 7/01/30
500 The University of Connecticut, Special Obligation Student Fee Revenue 11/10 at 101 AAA 513,040
Bonds, 2000 Series A, 5.750%, 11/15/29
135 The University of Connecticut, General Obligation Bonds, 2000 Series A, 3/10 at 101 AAA 138,248
5.550%, 3/01/18
</TABLE>
_____
7
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Healthcare - 10.2%
$ 2,600 State of Connecticut Health and Educational Facilities Authority, Revenue 1/01 at 102 AAA $ 2,657,096
Bonds, Bristol Hospital Issue, Series A, 7.000%, 7/01/20
900 State of Connecticut Health and Educational Facilities Authority, Revenue 7/01 at 102 AAA 931,050
Bonds, Hospital of Raphael Issue, Series D, 6.625%, 7/01/14
2,000 State of Connecticut, Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA 2,105,800
Bonds, Bridgeport Hospital Issue, Series A, 6.625%, 7/01/18
800 State of Connecticut Health and Educational Facilities Authority, Revenue 7/04 at 102 AAA 814,272
Bonds, New Britain General Hospital Issue, Series B, 6.000%, 7/01/24
1,405 State of Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101 Aaa 1,337,195
Bonds, Stamford Hospital Issue, Series G, 5.000%, 7/01/18
State of Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Hospital for Special Care Issue, Series B:
1,000 5.375%, 7/01/17 7/07 at 102 BBB 841,530
3,500 5.500%, 7/01/27 7/07 at 102 BBB 2,853,585
1,500 State of Connecticut Health and Educational Facilities Authority, Revenue 7/06 at 102 AAA 1,520,100
Bonds, Greenwich Hospital Issue, Series A, 5.800%, 7/01/26
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 7/07 at 102 AAA 2,021,900
Bonds, The William W. Backus Hospital Issue, Series D, 5.750%, 7/01/27
35 State of Connecticut Health and Educational Facilities Authority, Revenue 1/01 at 102 AAA 35,984
Bonds, Capital Asset Issue, Series C, 7.000%, 1/01/20
1,500 State of Connecticut Health and Educational Facilities Authority, Revenue 11/09 at 101 AAA 1,502,925
Bonds, Catholic Health East Issue, Series 1999F, 5.750%, 11/15/29
2,725 State of Connecticut Health and Educational Facilities Authority, Revenue 7/09 at 101 AA 2,732,385
Bonds, Waterbury Hospital Issue, Series C, 5.750%, 7/01/20
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 7/10 at 101 AA 2,032,460
Bds, Eastern Connecticut Health Network Issue, Series A, 6.000%, 7/01/25
2,250 Connecticut Development Authority, Solid Waste Disposal Facilities Revenue 7/05 at 102 AAA 2,479,905
Bonds, Pfizer Inc. Project, 1994 Series, 7.000%, 7/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 2.4%
2,000 Housing Authority of the City of Bridgeport, Connecticut, Multifamily 12/09 at 102 N/R 2,025,760
Housing Revenue Bonds (Stratfield Apartments Project), Series 1999,
7.250%, 12/01/24
2,000 Connecticut Housing Finance Agency, Housing Mortgage Finance Program 12/09 at 100 AA 2,009,560
Bonds, 1999 Series D, 6.200%, 11/15/41 (Alternative Minimum Tax)
1,500 New Britain Senior Citizens Housing Development Corporation, Mortgage 1/02 at 102 AAA 1,548,825
Revenue Refunding Bonds, Series 1992A (FHA-Insured Mortgage Loan -
Nathan Hale Apartments - Section 8 Assisted Project), 6.875%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 9.3%
210 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 11/02 at 102 AA 216,626
Bonds, 1992 Series C2, 6.700%, 11/15/22 (Alternative Minimum Tax)
1,250 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 5/03 at 102 AA 1,284,163
Bonds, 1993 Series A, 6.200%, 5/15/14
2,750 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 5/04 at 102 AA 2,777,335
Bonds, 1994 Series A, 6.100%, 5/15/17
1,500 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 5/05 at 102 AA 1,517,085
Bonds, 1995 Series A, Subseries A-1, 6.100%, 5/15/17
6,490 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 11/07 at 102 AA 6,507,653
Bonds, 1997 Series B, Subseries B-2, 5.850%, 11/15/28
(Alternative Minimum Tax)
1,000 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 11/05 at 102 AA 1,026,930
Bonds, 1995 Series F, Subseries F-1, 6.000%, 5/15/17
1,500 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 5/06 at 102 AA 1,529,415
Bonds, 1996 Series B, Subseries B-1, 6.050%, 5/15/18
_____
8
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Single Family (continued)
$ 4,555 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 11/06 at 102 AA $ 4,589,481
Bonds, 1996 Subseries E-2, 6.150%, 11/15/27 (Alternative Minimum Tax)
1,490 Connecticut Housing Finance Authority, Housing Mortgage Finance Program 11/06 at 102 AA 1,509,087
Bonds, 1997 Series F, Subseries F-2, 6.000%, 11/15/27 (Alternative
Minimum Tax)
750 Connecticut Housing Finance Agency, Housing Mortgage Finance Program Bonds, 5/10 at 100 AA 765,945
2000 Series A, 6.000%, 11/15/28
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 7.4%
500 Connecticut Housing Finance Authority, Group Home Mortgage Finance Program 6/10 at 102 AAA 508,430
Special Obligation Bonds, Series GH-5, 5.850%, 6/15/30
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue 8/08 at 102 AAA 930,670
Bonds, Hebrew Home and Hospital Issue, Series B (FHA-Insured Mortgage),
5.200%, 8/01/38
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 11/04 at 102 AAA 2,239,840
Bonds, Nursing Home Program Issue, Series 1994, AHF/Hartford, Inc. Project,
7.125%, 11/01/24
Connecticut Development Authority, First Mortgage Gross Revenue Health Care
Project Refunding Bonds (Church Homes, Inc., Congregational Avery Heights
Project - 1997 Series):
1,700 5.700%, 4/01/12 4/07 at 102 BBB 1,528,946
2,610 5.800%, 4/01/21 4/07 at 102 BBB 2,218,187
1,875 Connecticut Development Authority, First Mortgage Gross Revenue Health Care 12/06 at 103 BBB+ 1,585,706
Project Refunding Bonds, Series 1998A (The Elim Park Baptist Home, Inc.
Project), 5.375%, 12/01/18
Connecticut Development Authority, First Mortgage Gross Revenue Health Care
Project Refunding Bonds (Connecticut Baptist Homes, Inc. Project), 1999
Series:
1,000 5.500%, 9/01/15 9/09 at 102 AA 994,450
500 5.625%, 9/01/22 9/09 at 102 AA 487,080
1,000 Connecticut Development Authority, First Mortgage Gross Revenue Health Care 12/09 at 102 N/R 974,960
Project Refunding Bonds (The Mary Wade Home, Inc. Project), 1999 Series A,
6.375%, 12/01/18
Connecticut Development Authority, Revenue Refunding Bonds (Duncaster, Inc.
Project), Series 1999A:
2,200 5.250%, 8/01/19 2/10 at 102 AA 2,092,288
3,910 5.375%, 8/01/24 2/10 at 102 AA 3,732,721
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 11.7%
2,800 City of Bridgeport, Connecticut, General Obligation Bonds, 1997 Series A, 3/07 at 101 AAA 2,747,024
5.250%, 3/01/17
1,000 City of Bridgeport, Connecticut, General Obligation Bonds, 2000 Series A, 7/10 at 101 AAA 1,057,190
6.000%, 7/15/19
325 Town of Canterbury, Connecticut, General Obligation Bonds, 7.200%, 5/01/09 No Opt. Call A3 377,764
Town of Cheshire, Connecticut, General Obligation Bonds, Issue of 1999:
660 5.625%, 10/15/18 10/09 at 101 Aa3 677,530
660 5.625%, 10/15/19 10/09 at 101 Aa3 673,636
2,800 State of Connecticut, General Obligation Capital Appreciation Bonds No Opt. Call AA 1,601,628
(College Savings Plan), 1991 Series B, 0.000%, 12/15/11
1,000 State of Connecticut, General Obligation Capital Appreciation Bonds No Opt. Call AA 659,460
(College Savings Plan), 1990 Series A, 0.000%, 5/15/09
500 State of Connecticut, General Obligation Bonds (1999 Series B), 5.500%, 11/09 at 101 AA 507,675
11/01/18
3,000 State of Connecticut, General Obligation Capital Appreciation Bonds No Opt. Call AA 1,755,300
(College Savings Plan), 1993 Series A, 0.000%, 6/15/11
Town of Glastonbury, Connecticut, General Obligation Bonds, Issue of 1988:
200 7.200%, 8/15/06 No Opt. Call Aa1 228,616
200 7.200%, 8/15/07 No Opt. Call Aa 232,080
200 7.200%, 8/15/08 No Opt. Call Aa1 235,346
Town of Griswold, Connecticut, General Obligation Bonds, Issue of 1989:
200 7.500%, 4/01/02 No Opt. Call AAA 209,856
200 7.500%, 4/01/03 No Opt. Call AAA 215,506
200 7.500%, 4/01/04 No Opt. Call AAA 220,720
150 7.500%, 4/01/05 No Opt. Call AAA 169,104
</TABLE>
______
9
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General (continued)
$ 340 City of Middletown, Connecticut, General Obligation Bonds, 6.900%, 4/15/06 No Opt. Call AA $ 380,814
665 City of New Haven, Connecticut, General Obligation Bonds, Series 2000C, 11/09 at 101 AAA 705,199
6.000%, 11/01/19
City of New London, Connecticut, General Obligation Bonds, Water Department
Revenue Bonds, Series 20:
120 7.300%, 12/01/05 No Opt. Call A+ 135,401
100 7.300%, 12/01/07 No Opt. Call A+ 116,335
Town of Old Saybrook, Connecticut, General Obligation Bonds:
160 7.400%, 5/01/08 No Opt. Call A2 187,605
160 7.400%, 5/01/09 No Opt. Call A2 189,035
Town of Old Saybrook, Connecticut, General Obligation Bonds:
275 6.500%, 2/15/10 No Opt. Call AAA 312,769
270 6.500%, 2/15/11 No Opt. Call AAA 305,718
Town of Plainfield, Connecticut, General Obligation Bonds:
225 7.000%, 9/01/00 No Opt. Call A3 225,000
100 7.000%, 9/01/01 No Opt. Call A3 102,264
100 7.100%, 9/01/02 9/01 at 102 A3 104,112
310 7.100%, 9/01/03 9/01 at 102 A3 323,507
100 7.200%, 9/01/04 9/01 at 102 A3 104,454
335 7.250%, 9/01/06 9/01 at 102 A3 350,085
335 7.300%, 9/01/08 9/01 at 102 A3 350,246
155 7.300%, 9/01/10 9/01 at 102 A3 162,054
Commonwealth of Puerto Rico, Public Improvement Bonds of 1999, General
Obligation Bonds:
3,000 5.000%, 7/01/28 7/08 at 101 A 2,787,300
2,690 5.000%, 7/01/28 7/08 at 101 AAA 2,532,070
Towns of Beacon Falls and Prospect, Connecticut, Regional School District
No. 16, General Obligation Bonds, Issue of 2000:
650 5.500%, 3/15/18 3/10 at 101 Aaa 666,452
650 5.625%, 3/15/19 3/10 at 101 Aaa 672,984
650 5.700%, 3/15/20 3/10 at 101 Aaa 675,513
City of Torrington, Connecticut, General Obligation Bonds:
700 6.400%, 5/15/11 5/02 at 102 AAA 733,222
680 6.400%, 5/15/12 5/02 at 102 AAA 712,878
City of Waterbury, Connecticut, General Obligation Tax Revenue Intercept
Bonds, 2000 Issue:
910 6.000%, 2/01/18 2/09 at 101 AA 944,061
1,025 6.000%, 2/01/20 2/09 at 101 AA 1,061,767
Town of Winchester, Connecticut, General Obligation Bonds:
140 6.750%, 4/15/06 No Opt. Call A1 155,082
140 6.750%, 4/15/07 No Opt. Call A1 157,049
140 6.750%, 4/15/08 No Opt. Call A1 158,822
140 6.750%, 4/15/09 No Opt. Call A1 160,304
140 6.750%, 4/15/10 No Opt. Call A1 161,825
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 17.3%
2,000 State of Connecticut, Health and Educational Facilities Authority, 11/04 at 102 AA- 2,049,540
Revenue Bonds, Nursing Home Program Issue, Series 1994 (St. Camillus
Health Center Project), 6.250%, 11/01/18
910 State of Connecticut Health and Educational Facilities Authority, Revenue 7/08 at 102 AAA 829,811
Bonds, Child Care Facilities Program, Series A, 5.000%, 7/01/28
1,000 State of Connecticut Health and Educational Facilities Authority, Revenue 11/04 at 102 AAA 1,038,950
Bonds, Nursing Home Program Issue, Series 1994 (Sharon Health Care
Project), 6.250%, 11/01/21
5,000 State of Connecticut Health and Educational Facilities Authority, Revenue 11/04 at 102 AAA 5,168,350
Bonds, Nursing Home Program Issue, Series 1994 (Saint Joseph's Manor
Project), 6.250%, 11/01/16
3,695 State of Connecticut Health and Educational Facilities Authority, Revenue 11/04 at 102 AAA 3,858,541
Bonds, Nursing Home Program Issue, Series 1994 (St. Camillus Health
Center Project), 6.250%, 11/01/18
</TABLE>
______
10
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 3,000 State of Connecticut Health and Educational Facilities Authority, Revenue 11/04 at 102 AAA $ 3,121,920
Bonds, Nursing Home Program Issue, Series 1994 (The Jewish Home for the
Elderly of Fairfield County Project), 6.250%, 11/01/20
State of Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Nursing Home Program Issue, Series 1994 (Highland View Manor, Inc.
Project):
1,500 7.200%, 11/01/10 (Alternative Minimum Tax) 11/04 at 102 AAA 1,653,585
4,200 7.500%, 11/01/16 (Alternative Minimum Tax) 11/04 at 102 AAA 4,689,678
State of Connecticut Health and Educational Facilities Authority, Revenue
Bonds, Nursing Home Program Issue, Series 1994 (Wadsworth Glen Health Care
Center Project):
1,100 7.200%, 11/01/10 (Alternative Minimum Tax) 11/04 at 102 AAA 1,212,629
1,000 7.500%, 11/01/16 (Alternative Minimum Tax) 11/04 at 102 AAA 1,116,590
4,115 State of Connecticut Health and Educational Facilities Authority, Revenue 11/06 at 102 AA- 4,278,983
Bonds, Nursing Home Program Issue, Series 1996 (Abbott Terrace Health
Center Project), 5.750%, 11/01/13
4,365 State of Connecticut Health and Educational Facilities Authority, Revenue 11/06 at 102 AA 4,469,542
Bonds, Nursing Home Program Issue, Series 1996 (3030 Park Fairfield Health
Center Project), 6.250%, 11/01/21
1,150 State of Connecticut, Special Tax Obligation Bonds, Transportation No Opt. Call AA- 1,275,017
Infrastructure Purposes, 1992 Series B, 6.125%, 9/01/12
Puerto Rico Highway and Transportation Authority, Transportation Revenue
Bonds, Series B:
1,500 5.750%, 7/01/16 7/10 at 101 AAA 1,602,825
1,000 5.750%, 7/01/19 7/10 at 101 AAA 1,051,390
2,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin Islands 10/10 at 101 BBB- 2,075,880
Gross Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24
725 Town of Woodstock, Connecticut, Special Obligation Bonds (Woodstock 9/00 at 103 AAA 748,128
Academy - 1990 Issue) (General Obligation Bonds), 6.900%, 3/01/06
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 0.5%
1,000 City of Hartford, Connecticut, Parking System Revenue Bonds, 2000 Series 7/10 at 100 BBB 1,014,380
A, 6.500%, 7/01/25
250 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series 6/06 at 102 Baa2 255,353
A (American Airlines, Inc. Project), 6.250%, 6/01/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 12.5%
2,940 State of Connecticut Health and Educational Facilities Authority, Revenue 7/03 at 100 AAA 3,194,780
Bonds, University of Hartford Issue, Series C, 8.000%, 7/01/18 (Pre-refunded
to 7/01/03)
1,300 State of Connecticut Health and Educational Facilities Authority, Revenue 1/01 at 101 AAA 1,560,832
Bonds, Lutheran General Health Care System (Parkside Lodges Projects),
7.375%, 7/01/19
3,500 State of Connecticut Health and Educational Facilities Authority, Revenue 7/02 at 102 AAA 3,680,705
Bonds, Middlesex Hospital Issue, Series G, 6.250%, 7/01/12 (Pre-refunded
to 7/01/02)
1,100 State of Connecticut Health and Educational Facilities Authority, Revenue 7/02 at 102 N/R*** 1,151,205
Bonds, The William W. Backus Hospital Issue, Series C, 6.000%, 7/01/12
(Pre-refunded to 7/01/02)
2,000 State of Connecticut Health and Educational Facilities Authority, Revenue 7/04 at 102 AAA 2,157,500
Bonds, Trinity College Issue, Series D, 6.125%, 7/01/24 (Pre-refunded
to 7/01/04)
2,910 State of Connecticut, Health and Educational Facilities Authority, Revenue 7/03 at 102 BBB-*** 3,081,195
Bonds, Quinnipiac College Issue, Series D, 6.000%, 7/01/23 (Pre-refunded
to 7/01/03)
180 State of Connecticut, Health and Educational Facilities Authority, Revenue 1/01 at 102 AAA 185,200
Bonds, Capital Asset Issue, Series C, 7.000%, 1/01/20 (Pre-refunded to
1/01/01)
285 State of Connecticut Health and Educational Facilities Authority, Revenue 1/01 at 102 AAA 293,214
Bonds, Capital Asset Issue, Series C, 7.000%, 1/01/20 (Pre-refunded to
1/01/01)
7,000 Connecticut Development Authority, Health Care Project Refunding Bonds 9/02 at 102 A2*** 7,433,720
(Duncaster, Inc. Project), 1992 Series, 6.750%, 9/01/15 (Pre-refunded to
9/01/02)
1,605 City of New Haven, Connecticut, General Obligation Bonds, Issue of 1991, 8/01 at 102 AAA 1,683,501
7.400%, 8/15/11 (Pre-refunded to 8/15/01)
City of New Haven, Connecticut, General Obligation Bonds, Issue of 1992:
400 9.250%, 3/01/02 No Opt. Call AAA 417,380
1,000 7.400%, 3/01/12 (Pre-refunded to 3/01/02) 3/02 at 102 AAA 1,063,670
</TABLE>
____
11
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Connecticut Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
$ 1,130 Town of Stratford, Connecticut, General Obligation Bonds, 7.300%, 3/01/12 3/01 at 102 N/R*** $ 1,168,816
(Pre-refunded to 3/01/01)
City of Waterbury, Connecticut, General Obligation Bonds:
535 7.250%, 3/01/02 (Pre-refunded to 3/01/01) 3/01 at 102 N/R*** 553,249
785 7.300%, 3/01/05 (Pre-refunded to 3/01/01) 3/01 at 102 N/R*** 811,965
780 7.400%, 3/01/06 (Pre-refunded to 3/01/01) 3/01 at 102 N/R*** 807,175
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 9.6%
8,000 Bristol Resource Recovery Facility Operating Committee, Solid Waste Revenue 7/05 at 102 A2 8,284,080
Refunding Bonds (Ogden Martin Systems of Bristol, Inc. Project - 1995
Series), 6.500%, 7/01/14
Connecticut Resources Recovery Authority, 1991 Series One Subordinated
(Wallingsford Resource Recovery Project):
400 6.750%, 11/15/03 (Alternative Minimum Tax) 11/01 at 102 AA 416,380
500 6.800%, 11/15/04 (Alternative Minimum Tax) 11/01 at 102 AA 520,225
5,250 Connecticut Resources Recovery Authority, Corporate Credit Bonds/Tax Exempt 11/02 at 102 BB- 4,854,255
Interest (American REF-FUEL Company of Southeastern Connecticut Project),
1992 Series A, 6.450%, 11/15/22
(Alternative Minimum Tax)
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue Bonds
(Wheelabrator Lisbon Project), Series 1993A:
240 5.250%, 1/01/06 (Alternative Minimum Tax) 1/03 at 102 BBB 227,153
9,665 5.500%, 1/01/20 (Alternative Minimum Tax) 1/03 at 102 BBB 8,104,681
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 2.5%
770 Connecticut Development Authority, Water Facilities Refunding Revenue Bonds 12/00 at 102 A+ 786,690
(Bridgeport Hydraulic Company Project), 1990 Series, 7.250%, 6/01/20
2,000 Connecticut Development Authority, Water Facilities Revenue Refunding Bonds 12/03 at 102 AAA 2,124,020
(The Connecticut Water Company Project), 1993 Series, 6.650%, 12/15/20
1,750 Connecticut Development Authority, Water Facilities Revenue Bonds 4/07 at 102 A+ 1,789,353
(Bridgeport Hydraulic Company Project), 1995 Series, 6.150%, 4/01/35
(Alternative Minimum Tax)
1,000 State of Connecticut, Clean Water Fund Revenue Bonds, 1991 Series, 7.000%, 1/01 at 102 AAA 1,028,430
1/01/11
------------------------------------------------------------------------------------------------------------------------------------
$232,110 Total Investments (cost $225,235,769) - 98.9% 230,797,285
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,486,810
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 233,284,095
====================================================================================================================
</TABLE>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
____
12
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 11.0%
$ 1,000 Massachusetts Development Finance Agency, Revenue Bonds, YMCA of Greater 11/08 at 102 BBB+ $ 902,930
Boston Issue, Series 1998, 5.450%, 11/01/28
3,000 Massachusetts Development Finance Agency, Revenue Bonds, Curry College 3/09 at 101 A 2,786,730
Issue, 1999 Series A, 5.500%, 3/01/29
2,000 Massachusetts Development Finance Agency, Revenue Bonds, Massachusetts 1/10 at 101 BBB 2,068,240
College of Pharmacy and Allied Health Sciences Issue, 1999 Series B,
6.625%, 7/01/20
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 1,036,010
Suffolk University Issue, Series B, 6.350%, 7/01/22
30 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/01 at 102 AAA 31,124
Boston College Issue, Series J, 6.625%, 7/01/21
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 10/08 at 101 AAA 867,420
Brandeis University Issue, Series I, 4.750%, 10/01/28
500 Massachusetts Industrial Finance Agency, Revenue Bonds (Whitehead Institute 7/03 at 102 Aa1 466,120
for Biomedical Research - 1993 Issue), 5.125%, 7/01/26
2,290 Massachusetts Industrial Finance Agency, Revenue and Refunding Bonds, 1995 7/05 at 102 AAA 2,407,477
Series A (Lesley College Project), 6.300%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 13.9%
495 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 1/01 at 100 A 496,327
Brockton Hospital Issue, Series B, 8.000%, 7/01/07
500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 1/01 at 102 N/R 512,145
Series 1989 (Cardinal Cushing General Hospital), 8.875%, 7/01/18
750 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 788,993
New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/03 at 102 AAA 1,012,130
Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15
Massachusetts Health and Educational Facilities Authority, Revenue Refunding
Bonds, Youville Hospital Issue (FHA-Insured Project), Series B:
2,500 6.000%, 2/15/25 2/04 at 102 Aa2 2,495,150
2,000 6.000%, 2/15/34 2/04 at 102 Aa2 1,981,120
2,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/08 at 102 AAA 1,796,720
Caregroup Issue, Series A, 5.000%, 7/01/25
1,500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/08 at 101 AAA 1,280,655
Harvard Pilgrim Health Care Issue, Series A, 4.750%, 7/01/22
3,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/10 at 101 BBB 2,967,330
Winchester Hospital Issue, Series E, 6.750%, 7/01/30
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 12.6%
920 Boston-Mount Pleasant Housing Development Corporation, Multifamily Housing 8/02 at 102 AAA 952,770
Refunding Revenue Bonds, Series 1992 A, 6.750%, 8/01/23
3,000 Massachusetts Development Finance Agency, Assisted Living Revenue Bonds 12/09 at 102 N/R 3,034,470
(Prospect House Apartments), Series 1999, 7.000%, 12/01/31 (Alternative
Minimum Tax)
3,700 Massachusetts Housing Finance Agency, Housing Project Revenue Bonds, 4/03 at 102 A+ 3,765,009
6.375%, 4/01/21
1,000 Massachusetts Housing Finance Agency, Residential Development Bonds, 11/02 at 102 AAA 1,034,160
6.250%, 11/15/14
1,000 Massachusetts Housing Finance Agency, Residential Development Bonds, 1992 5/02 at 102 AAA 1,046,730
Series D, 6.875%, 11/15/21
</TABLE>
____
13
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Multifamily (continued)
$ 1,000 Massachusetts Industrial Finance Agency (FHA-Insured Mortgage Loan), 1/08 at 102 AAA $ 1,002,430
Hudner Associates Projects, 5.650%, 1/01/23
1,250 Somerville Housing Authority (Massachusetts), Mortgage Revenue Bonds, 11/00 at 102 AAA 1,276,375
Series 1990 (GNMA Collateralized - Clarendon Hill Towers Project),
7.950%, 11/20/30
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 15.2%
1,790 Massachusetts Development Finance Agency, Revenue Bonds, The May 9/09 at 102 AA 1,756,885
Institute Issue, Series 1999, 5.750%, 9/01/24
2,900 Massachusetts Development Finance Agency, Revenue Bonds, Northern Berkshire 8/09 at 101 A 2,919,314
Community Services, Inc. Issue, 1999 Series A, 6.250%, 8/15/29
885 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/03 at 102 AAA 901,390
Cable Housing and Health Services Issue, Series A, 5.625%, 7/01/13
3,285 Massachusetts Health and Educational Facilities Authority, Revenue Refunding 2/07 at 102 Aa2 3,323,763
Bonds, Youville Hospital Issue (FHA-Insured Project), Series A, 6.250%,
2/15/41
390 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue 8/08 at 105 AAA 393,588
Bonds (TNG Draper Place Project), Series 1998 (GNMA Collateralized),
5.400%, 8/20/12 (Alternative Minimum Tax)
2,040 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue 6/09 at 102 AAA 1,916,641
Bonds (The Arbors at Taunton Project), Series 1999 (GNMA Collateralized),
5.500%, 6/20/40 (Alternative Minimum Tax)
2,500 Massachusetts Industrial Finance Agency, Health Care Facilities Revenue 5/07 at 102 A-1 2,285,200
Bonds, Series 1997B (Jewish Geriatric Services Inc. Obligated Group),
5.500%, 5/15/27
1,015 Massachusetts Industrial Financial Agency, Revenue Bonds, Heights Crossing 2/06 at 102 AAA 1,023,993
Limited Partnership Issue (FHA-Insured Project), Series 1995, 6.000%,
2/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 11.5%
490 Town of Barnstable, Massachusetts, General Obligation Bonds, 5.750%, 9/04 at 102 AA 508,551
9/15/14
Town of Deerfield, Massachusetts, General Obligation School Bonds of 1992,
School Project Loan, Act of 1948, Bank-Qualified Unlimited Tax:
420 6.200%, 6/15/09 6/02 at 102 A1 439,790
415 6.250%, 6/15/10 6/02 at 102 A1 434,538
135 City of Holyoke, Massachusetts, General Obligation Bonds, 1991 Series A, No Opt. Call BBB+ 136,381
8.000%, 6/01/01
500 City of Holyoke, Massachusetts, General Obligation School Project Loan, Act 8/01 at 102 Baa1 524,590
of 1948, 7.650%, 8/01/09
750 City of Holyoke, Massachusetts, General Obligation Refunding Bonds, 7.000%, 11/02 at 102 BBB+ 792,735
11/01/08
545 City of Lowell, Massachusetts, General Obligation Qualified Bonds, 8.300%, 2/01 at 103 Aa3 570,075
2/15/05
2,500 Massachusetts Bay Transportation Authority, General Transportation System No Opt. Call AA 2,948,025
Bonds, 1991 Series A, 7.000%, 3/01/21
600 Massachusetts Bay Transportation Authority, General Transportation System 3/07 at 101 AA 548,508
Bonds, 1997 Series D, 5.000%, 3/01/27
425 South Essex Sewerage District, Massachusetts, General Obligation Bonds, No Opt. Call Baa1 429,756
9.000%, 12/01/00
City of Taunton, Massachusetts, General Obligation Bonds (Electric Loan,
Act of 1969):
1,465 8.000%, 2/01/02 No Opt. Call A3 1,533,606
1,005 8.000%, 2/01/03 No Opt. Call A3 1,082,375
1,000 City of Worcester, Massachusetts, General Obligation Bonds, 6.000%, 8/02 at 102 A- 1,041,910
8/01/04
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 1.0%
865 Massachusetts Industrial Finance Agency, Library Revenue Bonds 1/05 at 102 AAA 957,979
(Malden Public Library Project), Series 1994, 7.250%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 2.1%
10,000 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue No Opt. Call AAA 2,034,300
Bonds, 1997 Series C (Senior), 0.000%, 1/01/29
</TABLE>
____
14
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed - 22.3%
City of Attleboro, Massachusetts, General Obligation Bonds:
$ 450 6.250%, 1/15/10 (Pre-refunded to 1/15/03) 1/03 at 102 A3*** $ 477,752
450 6.250%, 1/15/11 (Pre-refunded to 1/15/03) 1/03 at 102 A3*** 477,752
1,000 City of Boston, Massachusetts, General Obligation Bonds, 1991 Series A, 7/01 at 102 AAA 1,039,780
6.750%, 7/01/11 (Pre-refunded to 7/01/01)
500 Boston Water and Sewer Commission (Massachusetts), General Revenue Bonds, 11/01 at 102 AAA 525,075
1991 Series A (Senior Series), 7.000%, 11/01/18 (Pre-refunded to 11/01/01)
355 City of Haverhill, Massachusetts, General Obligation Bonds, Municipal Purpose 10/01 at 102 BBB*** 374,110
Loan of 1991 Bonds, 7.500%, 10/15/11 (Pre-refunded to 10/15/01)
250 City of Holyoke, Massachusetts, General Obligation Bonds, 8.150%, 6/15/06 6/02 at 103 AAA 273,428
(Pre-refunded to 6/15/02)
445 City of Lowell, Massachusetts, General Obligation Qualified Bonds, 8.400%, 1/01 at 102 Aaa 460,526
1/15/09 (Pre-refunded to 1/15/01)
1,000 City of Lynn, Massachusetts, General Obligation Bonds, 7.850%, 1/15/11 1/02 at 104 Aaa 1,084,980
(Pre-refunded to 1/15/02)
1,000 Massachusetts Bay Transportation Authority, General Transportation System 3/01 at 102 Aaa 1,033,290
Bonds, 1991 Series A, 7.000%, 3/01/11 (Pre-refunded to 3/01/01)
250 Massachusetts Bay Transportation Authority, Certificates of Participation, 12/06 at 100 A*** 295,105
Series 1988, 7.800%, 1/15/14 (Pre-refunded to 12/22/06)
500 Massachusetts Health and Educational Facilities Authority, Revenue Refunding 9/02 at 102 AAA 530,790
Bonds, Worcester Polytechnic Institute Issue, Series E, 6.625%, 9/01/17
(Pre-refunded to 9/01/02)
2,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 1,970,800
Malden Hospital Issue (FHA-Insured Project), Series A, 5.000%, 8/01/16
700 Massachusetts Health and Educational Facilities Authority, Revenue Bonds 7/06 at 100 Aaa 751,429
(Daughters of Charity National Health System - The Carney Hospital),
Series D, 6.100%, 7/01/14 (Pre-refunded to 7/01/06)
2,750 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, New 4/02 at 102 AAA 2,908,565
England Deaconess Hospital Issue, Series D, 6.875%, 4/01/22 (Pre-refunded
to 4/01/02)
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 11/02 at 102 Aaa 1,064,060
MetroWest Health, Inc. Issue, Series C, 6.500%, 11/15/18 (Pre-refunded
to 11/15/02)
970 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/01 at 102 AAA 1,007,122
Boston College Issue, Series J, 6.625%, 7/01/21 (Pre-refunded to 7/01/01)
635 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 7/01/13 1/01 at 100 AAA 991,375
250 Massachusetts Industrial Finance Agency, Revenue Bonds, College of the Holy 1/02 at 102 AA-*** 261,683
Cross, 1992 Issue,
6.450%, 1/01/12 (Pre-refunded to 1/01/02)
1,095 Massachusetts Industrial Finance Agency, Revenue Bonds, Merrimack College 7/02 at 102 AAA 1,169,449
Issue, Series 1992,
1,130 City of Peabody, Massachusetts, General Obligation Electric Bonds, 6.950%, 8/01 at 102 AAA 1,179,166
8/01/09 (Pre-refunded to 8/01/01)
2,250 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P, 7.000%, 7/01 at 102 AAA 2,347,493
7/01/21 (Pre-refunded to 7/01/01)
1,000 City of Springfield, Massachusetts, General Obligation School Project Loan 9/02 at 102 Baa3*** 1,070,390
Act of 1948 Bonds, Series B, 7.100%, 9/01/11 (Pre-refunded to 9/01/02)
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 8.9%
2,700 Massachusetts Development Finance Agency, Resource Recovery Revenue Bonds 12/08 at 102 BBB 2,365,308
(Ogden Haverhill Project), Series 1998B, 5.500%, 12/01/19
(Alternative Minimum Tax)
1,335 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Bonds 7/01 at 103 N/R 1,406,434
(SEMASS Project), Series 1991A, 9.000%, 7/01/15
5,420 Massachusetts Industrial Finance Agency, Resource Recovery Revenue Refunding 12/08 at 102 BBB 4,806,510
Bonds (Ogden Haverhill Project), Series 1998A, 5.600%, 12/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$101,790 Total Investments (cost $93,132,989) - 98.5% 94,384,830
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
_____
15
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments - 0.8%
$ 800 Massachusetts Health and Educational Facilities Authority (Capital VMIG-1 $ 800,000
------------- Asset Program), Variable Rate Demand Bonds, 4.200%, 7/01/05+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 665,340
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $95,850,170
====================================================================================================================
</TABLE>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
_____
16
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Insured Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education and Civic Organizations - 18.7%
$ 1,600 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 10/02 at 102 AAA $ 1,685,920
Northeastern University Issue, Series E, 6.550%, 10/01/22
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 10/02 at 100 AAA 1,011,910
Boston University Issue, Series M, 6.000%, 10/01/22
30 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/01 at 102 AAA 31,124
Boston College Issue, Series J, 6.625%, 7/01/21
3,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 10/08 at 101 AAA 2,602,260
Brandeis University Issue, Series I, 4.750%, 10/01/28
1,030 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 1,059,942
Bentley College Issue, Series I, 6.125%, 7/01/17
2,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 10/09 at 101 AAA 1,824,620
Northeastern University Issue, Series I, 5.000%, 10/01/29
1,000 Massachusetts Industrial Finance Agency, Revenue Bonds, College of the Holy 3/06 at 102 AAA 997,980
Cross - 1996 Issue, 5.500%, 3/01/20
420 Massachusetts Industrial Finance Agency, Revenue Bonds, Babson College 10/05 at 102 AAA 445,595
Issue, Series 1995A, 5.800%, 10/01/10
1,000 Massachusetts Industrial Finance Agency, Revenue Refunding Bonds, Mount 7/01 at 102 AAA 1,034,890
Holyoke College Issue, Series 1992A, 6.300%, 7/01/13
2,470 Massachusetts Industrial Finance Agency, Revenue Bonds, Western New England 7/08 at 102 AAA 2,236,313
College Issue, Series 1998, 5.000%, 7/01/28
----------------------------------------------------------------------------------------------------------------------------------
Healthcare - 13.3%
1,500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 1,577,985
New England Medical Center Hospitals Issue, Series F, 6.625%, 7/01/25
1,700 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/03 at 102 AAA 1,720,621
Lahey Clinic Medical Center Issue, Series B, 5.625%, 7/01/15
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/06 at 102 AAA 1,020,230
Baystate Medical Center Issue, Series E, 6.000%, 7/01/26
2,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/08 at 102 AAA 1,796,720
Caregroup Issue, Series A, 5.000%, 7/01/25
130 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 1/01 at 101 AAA 131,576
Capital Asset Program, Series G2, 7.200%, 7/01/09
505 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 530,159
South Shore Hospital Issue, Series D, 6.500%, 7/01/22
2,290 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental 1/05 at 102 AAA 2,422,820
Control Facilities Financing Authority, Hospital Revenue Bonds, 1995 Series
A (Hospital Auxilio Mutuo Obligated Group Project), 6.250%, 7/01/16
----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 16.6%
2,000 Massachusetts Development Finance Agency, Assisted Living Facility Revenue 9/10 at 105 AAA 2,314,620
Bonds (The Monastery at West Springfield Project) (GNMA Collateralized),
Series 1999A, 7.625%, 3/20/41 (Alternative Minimum Tax)
2,500 Massachusetts Development Finance Authority, Revenue Bonds, Series 2000A 10/11 at 105 AAA 2,757,675
(GNMA Collateralized - VOA Concord Assisted Living, Inc. Project), 6.900%,
10/20/41 (Alternative Minimum Tax)
1,500 Massachusetts Housing Finance Agency, Housing Development Bonds, 1998 6/08 at 101 AAA 1,460,250
Series A, 5.375%, 6/01/16 (Alternative Minimum Tax)
</TABLE>
_____
17
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Massachusetts Insured Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing/Multifamily (continued)
$ 205 Massachusetts Housing Finance Agency, Housing Revenue Bonds, 1989 Series A, 12/00 at 102 AAA $ 209,795
7.600%, 12/01/16
1,000 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue 7/07 at 101 AAA 956,420
Bonds, 1997 Series C, 5.625%, 7/01/40 (Alternative Minimum Tax)
2,915 Massachusetts Housing Finance Agency, Rental Housing Mortgage Revenue 1/05 at 102 AAA 3,097,654
Bonds, 1995 Series A (FHA-Insured Mortgage Loans), 7.350%, 1/01/35
(Alternative Minimum Tax)
640 Massachusetts Industrial Finance Agency (FHA-Insured Mortgage Loan), Hudner 1/08 at 102 AAA 641,555
Associates Projects, 5.650%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 6.0%
3,185 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue 12/07 at 102 AAA 3,199,810
Bonds (The Arbors at Amherst Project), Series 1997 (GNMA Collateralized),
5.950%, 6/20/39 (Alternative Minimum Tax)
1,000 Massachusetts Industrial Finance Agency, Assisted Living Facility Revenue 6/09 at 102 AAA 939,530
Bonds (The Arbors at Taunton Project), Series 1999 (GNMA Collateralized),
5.500%, 6/20/40 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 17.5%
250 Town of Groveland, Massachusetts, General Obligation Bonds, 6.900%, 6/15/07 6/01 at 102 AAA 259,550
1,000 City of Haverhill, Massachusetts, General Obligation Hospital Refunding 9/01 at 102 AAA 1,039,610
Bonds, Series A, 6.700%, 9/01/10
2,625 City of Lowell, Massachusetts, General Obligation State Qualified Bonds, 11/03 at 102 AAA 2,706,953
5.600%, 11/01/12
1,025 City of Lynn, Massachusetts, General Obligation Bonds, 6.750%, 1/15/02 No Opt. Call AAA 1,057,677
1,000 Town of Mansfield, Massachusetts, General Obligation Bonds, 6.700%, 1/15/11 1/02 at 102 AAA 1,051,030
80 Massachusetts Bay Transportation Authority, General Transportation System 9/00 at 102 AAA 81,780
Bonds, 7.250%, 3/01/03
1,500 Town of Monson, Massachusetts, General Obligation Bonds, Bank-Qualified No Opt. Call AAA 1,600,050
Unlimited Tax School Refunding Bonds, 5.500%, 10/15/10
190 Town of Northfield, Massachusetts, General Obligation Bonds, Municipal 10/01 at 102 AAA 197,663
Purpose Loan of 1992, Bank-Qualified, 6.350%, 10/15/09
440 Quaboag Regional School District, General Obligation Bonds, 6.250%, 6/15/08 6/02 at 102 AAA 461,107
City of Salem, Massachusetts, General Obligation Bonds:
500 6.800%, 8/15/09 8/01 at 102 AAA 520,785
900 6.000%, 7/15/10 7/02 at 102 AAA 939,492
220 Taunton, Massachusetts, General Obligation Bonds, 6.800%, 9/01/09 9/01 at 103 AAA 231,475
455 Town of Wareham, Massachusetts, General Obligation School Bonds, 7.050%, 1/01 at 103 AAA 472,941
1/15/07
215 Town of Whately, Massachusetts, General Obligation Bonds, 6.350%, 1/15/09 1/02 at 102 AAA 224,408
1,210 Town of Winchendon, Massachusetts, Unlimited Tax, General Obligation Bonds, 3/03 at 102 AAA 1,271,928
3/15/10
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 2.3%
1,405 Massachusetts Industrial Finance Agency, Library Revenue Bonds (Malden 1/05 at 102 AAA 1,556,023
Public Library Project), Series 1994, 7.250%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 2.8%
9,500 Massachusetts Turnpike Authority, Metropolitan Highway System Revenue No Opt. Call AAA 1,932,585
Bonds, 1997 Series C (Senior), 0.000%, 1/01/29
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 17.0%
1,000 City of Boston, Massachusetts, General Obligation Bonds, 1991 Series A, 7/01 at 102 AAA 1,039,780
6.750%, 7/01/11 (Pre-refunded to 7/01/01)
500 City of Fall River, Massachusetts, General Obligation Bonds, 7.200%, 6/01 at 102 AAA 520,560
6/01/10 (Pre-refunded to 6/01/01)
250 City of Holyoke, Massachusetts, General Obligation Bonds, 8.150%, 6/15/06 6/02 at 103 AAA 273,428
(Pre-refunded to 6/15/02)
250 Lynn, Massachusetts, Water and Sewer Commission, General Revenue Bonds, 12/00 at 102 AAA 256,765
1990 Series A, 7.250%, 12/01/10 (Pre-refunded to 12/01/00)
</TABLE>
______
18
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed (continued)
The Commonwealth of Massachusetts, General Obligation Bonds,
Consolidated Loan of 1992, Series A:
$ 25 6.500%, 6/01/08 (Pre-refunded to 6/01/02) 6/02 at 101 AAA $ 26,159
860 6.000%, 6/01/13 (Pre-refunded to 6/01/02) 6/02 at 100 AAA 884,691
340 Massachusetts State, General Obligation Bonds, Consolidated Loan, Series 6/02 at 100 AAA 349,761
1992-A, 6.000%, 6/01/13 (Pre-refunded to 6/01/02)
500 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 10/01 at 102 AAA 523,310
Berklee College of Music Issue, Series C, 6.875%, 10/01/21 (Pre-refunded
to 10/01/01)
1,000 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/01 at 102 AAA 1,039,620
Brigham and Women's Hospital Issue, Series D, 6.750%, 7/01/24
(Pre-refunded to 7/01/01)
970 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/01 at 102 AAA 1,007,122
Boston College Issue, Series J, 6.625%, 7/01/21 (Pre-refunded to 7/01/01)
970 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 1,018,849
Bentley College Issue, Series I, 6.125%, 7/01/17 (Pre-refunded to 7/01/02)
15 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 1/01 at 102 AAA 15,293
Capital Asset Program Series G2, 7.200%, 7/01/09 (Pre-refunded to 1/01/01)
495 Massachusetts Health and Educational Facilities Authority, Revenue Bonds, 7/02 at 102 AAA 523,166
South Shore Hospital Issue, Series D, 6.500%, 7/01/22 (Pre-refunded to
7/01/02)
1,000 Massachusetts Port Authority, Revenue Bonds, Series 1982, 13.000%, 7/01/13 1/01 at 100 AAA 1,561,220
500 Town of Monson, Massachusetts, General Obligation School Project Loan Act 10/00 at 102 AAA 512,020
of 1948 Bonds, 7.700%, 10/15/10 (Pre-refunded to 10/15/00)
Southern Berkshire Regional School District, General Obligation Bonds:
515 7.500%, 4/15/07 (Pre-refunded to 4/15/02) 4/02 at 102 AAA 550,262
1,145 7.000%, 4/15/11 (Pre-refunded to 4/15/02) 4/02 at 102 AAA 1,220,089
250 City of Westfield, Massachusetts, General Obligation Bonds, 7.100%, 12/00 at 102 AAA 256,983
12/15/08 (Pre-refunded to 12/15/00)
160 City of Worcester, Massachusetts, General Obligation Bonds, 6.900%, 5/02 at 102 AAA 169,783
5/15/07 (Pre-refunded to 5/15/02)
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 1.9%
1,300 Massachusetts Municipal Wholesale Electric Company, Power Supply System 7/03 at 102 AAA 1,312,402
Revenue Bonds, 1993 Series A, 5.000%, 7/01/10
------------------------------------------------------------------------------------------------------------------------------------
$ 72,180 Total Investments (cost $64,738,582) - 96.1% 66,374,294
============------------------------------------------------------------------------------------------------------------------------
Short-Term Investments - 1.4%
$ 1,000 Massachusetts Health and Educational Facilities Authority (Capital Asset VMIG-1 1,000,000
============
Program Series B), Variable Rate Demand Bonds, 4.200%, 7/01/05+
====================================================================================================================
Other Assets Less Liabilities - 2.5% 1,684,378
====================================================================================================================
Net Assets - 100% $ 69,058,672
====================================================================================================================
</TABLE>
All of the bonds in the portfolio, excluding temporary investments in short-term
municipal securities, are either covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance, or are backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government agency securities, any
of which ensure the timely payment of principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ Security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
______
19
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 2000
<TABLE>
<CAPTION>
Massachusetts
Connecticut Massachusetts Insured
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities, at market value $ 230,797,285 $ 94,384,830 $ 66,374,294
Temporary investments in short-term municipal securities, at amortized cost,
which approximates market value -- 800,000 1,000,000
Cash -- -- 324,577
Receivables:
Interest 3,752,202 1,345,984 999,818
Investments sold -- 371,184 564,000
Shares sold 163,912 4,382 --
Other assets 3,605 850 105
------------------------------------------------------------------------------------------------------------------------------------
Total assets 234,717,004 96,907,230 69,262,794
------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 521,476 594,467 --
Payable for shares redeemed 245,121 52,549 4,446
Accrued expenses:
Management fees 107,336 42,777 31,880
12b-1 distribution and service fees 57,600 9,668 4,388
Other 64,678 62,972 54,955
Dividends payable 436,698 294,627 108,453
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,432,909 1,057,060 204,122
------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 233,284,095 $ 95,850,170 $ 69,058,672
====================================================================================================================================
Class A Shares
Net assets $ 197,918,872 $ 17,950,847 $ 12,856,271
Shares outstanding 19,239,190 1,884,270 1,277,024
Net asset value and redemption price per share $ 10.29 $ 9.53 $ 10.07
Offering price per share (net asset value per share plus maximum sales
charge of 4.20% of offering price) $ 10.74 $ 9.95 $ 10.51
====================================================================================================================================
Class B Shares
Net assets $ 17,612,425 $ 3,691,472 $ 1,737,323
Shares outstanding 1,715,540 386,551 172,439
Net asset value, offering and redemption price per share $ 10.27 $ 9.55 $ 10.08
====================================================================================================================================
Class C Shares
Net assets $ 15,937,864 $ 6,355,093 $ 1,263,240
Shares outstanding 1,551,576 670,844 125,740
Net asset value, offering and redemption price per share $ 10.27 $ 9.47 $ 10.05
====================================================================================================================================
Class R Shares
Net assets $ 1,814,934 $ 67,852,758 $ 53,201,838
Shares outstanding 175,989 7,137,725 5,278,694
Net asset value, offering and redemption price per share $ 10.31 $ 9.51 $ 10.08
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
_____
20
<PAGE>
Statement of Operations (Unaudited)
Six Months Ended August 31, 2000
<TABLE>
<CAPTION>
Massachusetts
Connecticut Massachusetts Insured
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income $ 7,070,254 $ 2,923,545 $ 2,027,110
------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 628,808 256,868 184,852
12b-1 service fees - Class A 196,705 17,335 12,371
12b-1 distribution and service fees - Class B 79,983 17,813 7,732
12b-1 distribution and service fees - Class C 59,497 20,084 5,114
Shareholders' servicing agent fees and expenses 61,747 54,011 38,392
Custodian's fees and expenses 32,484 29,841 25,544
Trustees' fees and expenses 4,520 1,774 1,635
Professional fees 5,929 6,951 7,701
Shareholders' reports - printing and mailing expenses 12,024 15,923 27,500
Federal and state registration fees 8,122 9,628 4,747
Other expenses 5,796 2,636 11,943
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,095,615 432,864 327,531
Custodian fee credit (15,360) (4,632) (3,275)
Expense reimbursement -- (22,726) --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,080,255 405,506 324,256
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,989,999 2,518,039 1,702,854
------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (30,222) (160,512) 75,359
Net change in unrealized appreciation or depreciation of investments 7,368,616 2,884,993 1,969,514
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 7,338,394 2,724,481 2,044,873
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 13,328,393 $ 5,242,520 $ 3,747,727
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
_____
21
<PAGE>
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Connecticut Massachusetts Massachusetts Insured
----------------------------- --------------------------- ---------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
8/31/00 2/29/00 8/31/00 2/29/00 8/31/00 2/29/00
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operations
Net investment income $ 5,989,999 $ 12,145,044 $ 2,518,039 $ 5,075,644 $ 1,702,854 $ 3,536,321
Net realized gain (loss) from
investment transactions (30,222) (98,153) (160,512) (155,666) 75,359 51,955
Net change in unrealized appreciation
or depreciation of investments 7,368,616 (21,884,560) 2,884,993 (8,116,602) 1,969,514 (5,572,24)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 13,328,393 (9,837,669) 5,242,520 (3,196,624) 3,747,727 (1,983,965)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From undistributed net investment
income:
Class A (5,144,966) (10,657,962) (463,257) (834,612) (312,490) (585,940)
Class B (374,035) (614,284) (86,204) (159,314) (34,923) (65,676)
Class C (370,603) (782,580) (127,460) (228,951) (30,843) (69,087)
Class R (43,413) (59,079) (1,858,850) (3,792,977) (1,357,893) (2,780,997)
From accumulated net realized gains
from investment transactions:
Class A -- -- -- -- -- (12,128)
Class B -- -- -- -- -- (1,527)
Class C -- -- -- -- -- (1,532)
Class R -- -- -- -- -- (52,493)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,933,017) (12,113,905) (2,535,771) (5,015,854) (1,736,149) (3,569,380)
-----------------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 8,644,237 31,868,633 5,227,529 12,772,381 3,702,695 5,630,264
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 2,570,412 5,335,507 1,708,166 3,409,712 1,174,417 2,440,826
-----------------------------------------------------------------------------------------------------------------------------------
11,214,649 37,204,140 6,935,695 16,182,093 4,877,112 8,071,090
Cost of shares redeemed (15,190,698) (34,509,563) (5,121,536) (14,446,618) (3,757,791) (8,404,016)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions (3,976,049) 2,694,577 1,814,159 1,735,475 1,119,321 (332,926)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 3,419,327 (19,256,997) 4,520,908 (6,477,003) 3,130,899 (5,886,271)
Net assets at the beginning of period 229,864,768 249,121,765 91,329,262 97,806,265 65,927,773 71,814,044
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 233,284,095 $ 229,864,768 $ 95,850,170 $ 91,329,262 $ 69,058,672 $ 65,927,773
===================================================================================================================================
Balance of undistributed net investment
income at the end of period $ 103,177 $ 46,195 $ 99,561 $ 117,293 $ 33,679 $ 66,974
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
_____
22
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust II (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen Connecticut Municipal Bond Fund ("Connecticut"), the Nuveen
Massachusetts Municipal Bond Fund ("Massachusetts") and the Nuveen Massachusetts
Insured Municipal Bond Fund ("Massachusetts Insured") (collectively, the
"Funds"), among others. The Trust was organized as a Massachusetts business
trust on July 1, 1996.
Each Fund seeks to provide high tax-free income and preservation of capital
through investments in diversified portfolios of quality municipal bonds.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are
provided by a pricing service approved by the Fund's Board of Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market 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 and general
market conditions. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
August 31, 2000, there were no such outstanding purchase commitments in any of
the Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month end. 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 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 accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount from investment transactions. The Funds
currently consider significant net realized capital gains and/or market discount
as amounts in excess of $.001 per share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal and designated state income taxes, to retain such
tax-exempt status when distributed to the shareholders of the Funds. Net
realized capital gains and market discount distributions are subject to federal
taxation.
Insurance
Massachusetts Insured invests in municipal securities which are either covered
by insurance or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest. Each insured municipal security is covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio
_____
23
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
Insurance. Such insurance does not guarantee the market value of the municipal
securities or the value of the Fund's shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the municipal securities
covered thereby remain outstanding and the insurer remains in business,
regardless of whether the Fund ultimately disposes of such municipal securities.
Consequently, the market value of the municipal securities covered by Original
Issue Insurance or Secondary Market Insurance may reflect value attributable to
the insurance. Portfolio Insurance is effective only while the municipal
securities are held by the Fund. Accordingly, neither the prices used in
determining the market value of the underlying municipal securities nor the net
asset value of the Fund's shares include value, if any, attributable to the
Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give
the Fund the right to obtain permanent insurance with respect to the municipal
security covered by the Portfolio Insurance policy at the time of its sale.
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur an annual 12b-1 service fee. Class A Share purchases of
$1 million or more are sold at net asset value without an up-front sales charge
but may be subject to a contingent deferred sales charge ("CDSC") if redeemed
within 18 months of purchase. Class B Shares are sold without a sales charge but
incur annual 12b-1 distribution and service fees. An investor purchasing Class B
Shares agrees to pay a CDSC of up to 5% depending upon the length of time the
shares are held by the investor (CDSC is reduced to 0% at the end of six years).
Class B Shares convert to Class A Shares eight years after purchase. Class C
Shares are sold without a sales charge but incur annual 12b-1 distribution and
service fees. An investor purchasing Class C Shares agrees to pay a CDSC of 1%
if Class C Shares are redeemed within one year of purchase. Class R Shares are
not subject to any sales charge or 12b-1 distribution or service fees. Class R
Shares are available only under limited circumstances.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended August 31, 2000.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently only
includes 12b-1 distribution and service fees, are recorded to the specific
class.
Custodian Fee Credit
Each Fund has an agreement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
_____
24
<PAGE>
<TABLE>
<CAPTION>
2. Fund Shares
Transactions in Fund shares were as follows:
Connecticut Massachusetts
------------------------------------------------------- ----------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/00 2/29/00 8/31/00 2/29/00
------------------------- --------------------------- ------------------------ ------------------------
Shares Amount Shares Amount Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold:
Class A 498,659 $ 5,024,005 1,760,501 $ 18,283,345 117,664 $ 1,100,743 555,350 $ 5,352,717
Class B 185,347 1,861,220 717,184 7,460,912 29,861 278,838 122,296 1,198,347
Class C 132,243 1,325,734 539,467 5,653,475 178,070 1,654,496 324,709 3,157,803
Class R 42,943 433,278 45,537 470,901 234,909 2,193,452 317,025 3,063,514
Shares issued to shareholders
due to reinvestment of
distributions:
Class A 214,365 2,155,833 437,447 4,555,256 31,411 293,229 56,499 543,920
Class B 17,623 176,907 29,721 307,191 3,850 36,025 6,865 66,174
Class C 20,993 210,732 41,923 435,212 7,448 69,165 13,836 132,246
Class R 2,672 26,940 3,634 37,848 140,617 1,309,747 277,062 2,667,372
-----------------------------------------------------------------------------------------------------------------------------------
1,114,845 11,214,649 3,575,414 37,204,140 743,830 6,935,695 1,673,642 16,182,093
-----------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (1,189,117) (11,968,265) (2,731,832) (28,162,520) (81,491) (762,063) (297,369) (2,832,789)
Class B (89,913) (902,635) (176,175) (1,782,560) (49,249) (463,179) (46,593) (444,503)
Class C (228,521) (2,284,310) (443,381) (4,513,336) (28,633) (265,978) (193,535) (1,827,478)
Class R (3,500) (35,488) (4,904) (51,147) (389,933) (3,630,316) (977,765) (9,341,848)
-----------------------------------------------------------------------------------------------------------------------------------
(1,511,051) (15,190,698) (3,356,292) (34,509,563) (549,306) (5,121,536) (1,515,262) (14,446,618)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (396,206) $ (3,976,049) 219,122 $ 2,694,577 194,524 $ 1,814,159 158,380 $ 1,735,475
===================================================================================================================================
Massachusetts Insured
-----------------------------------------------
Six Months Ended Year Ended
8/31/00 2/29/00
--------------------- -------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 109,687 $ 1,084,393 254,753 $ 2,598,020
Class B 19,625 195,905 45,211 450,067
Class C 6,269 61,688 35,202 357,973
Class R 237,486 2,360,709 219,986 2,224,204
Shares issued to shareholders due to reinvestment of distributions:
Class A 19,099 188,338 34,368 347,267
Class B 565 5,570 1,344 13,625
Class C 2,203 21,688 4,699 47,584
Class R 97,135 958,821 200,374 2,032,350
-----------------------------------------------------------------------------------------------------------------------------------
492,069 4,877,112 795,937 8,071,090
-----------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (78,169) (769,842) (121,499) (1,226,864)
Class B (6,296) (62,139) (43,851) (439,599)
Class C (21,702) (215,653) (59,605) (598,631)
Class R (273,865) (2,710,157) (609,886) (6,138,922)
-----------------------------------------------------------------------------------------------------------------------------------
(380,032) (3,757,791) (834,841) (8,404,016)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 112,037 $ 1,119,321 (38,904) $ (332,926)
===================================================================================================================================
3. Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment income which were paid October 2, 2000, to share-
holders of record on September 8, 2000, as follows:
Massachusetts
Connecticut Massachusetts Insured
-----------------------------------------------------------------------------------------------------------------------------------
Dividend per share:
Class A $ .0445 $ .0420 $ .0420
Class B .0380 .0360 .0355
Class C .0395 .0375 .0370
Class R .0460 .0435 .0435
===================================================================================================================================
</TABLE>
____
25
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended August
31, 2000, were as follows:
<TABLE>
<CAPTION>
Massachusetts
Connecticut Massachusetts Insured
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases:
Long-term municipal securities $ 10,730,092 $ 6,667,651 $ 2,664,125
Short-term municipal securities -- 1,800,000 1,000,000
Sales and maturities:
Long-term municipal securities 10,480,988 5,499,580 3,445,400
Short-term municipal securities -- 1,000,000 --
===================================================================================================================================
</TABLE>
At August 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
<TABLE>
<CAPTION>
Massachusetts
Connecticut Massachusetts Insured
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 225,235,769 $ 94,193,952 $ 65,745,285
===================================================================================================================================
</TABLE>
At February 29, 2000, the Funds' last fiscal year end, Connecticut and
Massachusetts had unused capital loss carryforwards available for federal income
tax purposes to be applied against future capital gains, if any. If not applied,
the carryforwards will expire as follows:
<TABLE>
<CAPTION>
Connecticut Massachusetts
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Expiration year:
2003 $ 810,300 $ --
2004 -- 414,343
2005 -- 156,261
2006 -- --
2007 -- --
2008 98,153 --
-----------------------------------------------------------------------------------------------------------------------------------
Total $ 908,453 $ 570,604
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 2000, were as follows:
<TABLE>
<CAPTION>
Massachusetts
Connecticut Massachusetts Insured
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
appreciation $ 8,864,207 $ 2,964,829 $ 2,373,109
depreciation (3,302,691) (1,973,951) (744,100)
-----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 5,561,516 $ 990,878 $ 1,629,009
===================================================================================================================================
</TABLE>
6. Management Fee and Other Transactions with Affiliates
Under the Trusts' investment management agreement with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays an annual management fee, payable monthly, at the rates set forth below
which are based upon the average daily net assets of each Fund:
<TABLE>
<CAPTION>
Average Daily Net Assets Management Fee
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
For the first $125 million .5500 of 1%
For the next $125 million .5375 of 1
For the next $250 million .5250 of 1
For the next $500 million .5125 of 1
For the next $1 billion .5000 of 1
For net assets over $2 billion .4750 of 1
====================================================================================================================================
</TABLE>
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Trust 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 Trust from the Adviser or its affiliates.
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of each Fund in order to limit total expenses to .75 of 1% of the
average daily net assets of Massachusetts and .975 of 1% of the average daily
net assets of Massachusetts Insured, excluding any 12b-1 fees applicable to
Class A, B and C Shares. The Adviser may also voluntarily agree to reimburse
additional expenses from time to time, which may be terminated at any time at
its discretion.
____
26
<PAGE>
During the six months ended August 31, 2000, the Distributor collected sales
charges on purchases of Class A Shares, the majority of which were paid out as
concessions to authorized dealers as follows:
Massachusetts
Connecticut Massachusetts Insured
------------------------------------------------------------------------------
Sales charges collected $83,664 $12,739 $10,523
Paid to authorized dealers 74,039 11,095 9,161
==============================================================================
The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
During the six months ended August 31, 2000, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
Massachusetts
Connecticut Massachusetts Insured
------------------------------------------------------------------------------
Commission advances $80,869 $27,192 $ 8,436
==============================================================================
To compensate for commissions advanced to authorized dealers, all 12b-1 service
fees collected on Class B Shares during the first year following a purchase, all
12b-1 distribution fees collected on Class B Shares, and all 12b-1 service and
distribution fees collected on Class C Shares during the first year following a
purchase are retained by the Distributor. During the six months ended August 31,
2000, the Distributor retained such 12b-1 fees as follows:
Massachusetts
Connecticut Massachusetts Insured
------------------------------------------------------------------------------
12b-1 fees retained $ 79,190 $ 20,382 $ 6,870
==============================================================================
The remaining 12b-1 fees charged to the Fund were paid to compensate authorized
dealers for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the
six months ended August 31, 2000, as follows:
Massachusetts
Connecticut Massachusetts Insured
------------------------------------------------------------------------------
CDSC retained $ 36,517 $ 9,516 $ 1,717
==============================================================================
7. Composition of Net Assets
At August 31, 2000, the Funds had an unlimited number of $.01 par value shares
authorized. Net assets consisted of:
Massachusetts
Connecticut Massachusetts Insured
-------------------------------------------------------------------------------
Capital paid-in $ 228,558,077 $ 95,490,847 $ 67,320,370
Balance of undistributed
net investment income 103,177 99,561 33,679
Accumulated net realized gain (loss)
from investment transactions (938,675) (992,079) 68,911
Net unrealized appreciation of
investments 5,561,516 1,251,841 1,635,712
-------------------------------------------------------------------------------
Net assets $ 233,284,095 $ 95,850,170 $ 69,058,672
===============================================================================
_____
27
<PAGE>
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Class (Inception Date)
Investment Operations Less Distributions
--------------------- ------------------
Net
CONNECTICUT Unrealized
Beginning Net Realized/ Net Ending
Year Ended Net Asset Investment Investment Investment Capital Net Asset Total
February 28/29 Value Income Gain (Loss) Total Income Gains Total Value Return(a)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (7/87)**
2001 (d) $ 9.96 $ .27 $ .33 $ .60 $ (.27) $ -- $ (.27) $ 10.29 6.05%
2000 10.90 .53 (.94) (.41) (.53) -- (.53) 9.96 (3.84)
1999 10.85 .53 .06 .59 (.54) -- (.54) 10.90 5.51
1998 10.51 .56 .34 .90 (.56) -- (.56) 10.85 8.75
1997 (e) 10.23 .42 .28 .70 (.42) -- (.42) 10.51 6.96
1996 (f) 10.38 .57 (.14) .43 (.58) -- (.58) 10.23 4.18
1995 (f) 10.17 .58 .22 .80 (.59) -- (.59) 10.38 8.21
Class B (2/97)
2001 (d) 9.94 .23 .33 .56 (.23) -- (.23) 10.27 5.66
2000 10.88 .45 (.94) (.49) (.45) -- (.45) 9.94 (4.57)
1999 10.83 .46 .05 .51 (.46) -- (.46) 10.88 4.77
1998 10.51 .48 .32 .80 (.48) -- (.48) 10.83 7.76
1997 (g) 10.53 .04 (.02) .02 (.04) -- (.04) 10.51 .19
Class C (10/93)**
2001 (d) 9.95 .24 .32 .56 (.24) -- (.24) 10.27 5.64
2000 10.88 .47 (.93) (.46) (.47) -- (.47) 9.95 (4.31)
1999 10.83 .48 .05 .53 (.48) -- (.48) 10.88 4.94
1998 10.49 .50 .34 .84 (.50) -- (.50) 10.83 8.17
1997 (e) 10.22 .38 .27 .65 (.38) -- (.38) 10.49 6.43
1996 (f) 10.36 .52 (.14) .38 (.52) -- (.52) 10.22 3.71
1995 (f) 10.16 .53 .20 .73 (.53) -- (.53) 10.36 7.53
Class R (2/97)
2001 (d) 9.99 .28 .31 .59 (.27) -- (.27) 10.31 6.03
2000 10.93 .55 (.94) (.39) (.55) -- (.55) 9.99 (3.63)
1999 10.87 .56 .06 .62 (.56) -- (.56) 10.93 5.83
1998 10.51 .58 .36 .94 (.58) -- (.58) 10.87 9.17
1997 (g) 10.55 .01 (.05) (.04) -- -- -- 10.51 (.38)
===================================================================================================================================
<CAPTION>
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(b) Reimbursement(c)
--------------------------------------------------------------------------------------
Ratio Ratio Ratio
Ratio of of Net of Net of Net
Expenses Investment Ratio of Investment Ratio of Investment
Ending to Income to Expenses to Income to Expenses to Income to Portfolio
Net Assets Average Average Average Average Average Average Turnover
(000) Net Assets Net Assets Net Assets Net Assets Net Assets Net Assets Rate
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (7/87)**
2001 (d) $ 197,919 .86%* 5.26%* .86%* 5.26%* .84%* 5.28%* 5%
2000 196,416 .88 5.09 .88 5.09 .87 5.10 22
1999 220,721 .90 4.88 .86 4.92 .86 4.92 7
1998 216,436 .85 5.15 .78 5.22 .78 5.22 12
1997 (e) 209,873 1.02* 5.18* .79* 5.41* .79* 5.41* 20
1996 (f) 202,219 1.03 5.23 .74 5.52 .74 5.52 24
1995 (f) 203,210 1.03 5.54 .73 5.84 .73 5.84 25
Class B (2/97)
2001 (d) 17,612 1.61* 4.51* 1.61* 4.51* 1.59* 4.52* 5
2000 15,931 1.63 4.37 1.63 4.37 1.63 4.38 22
1999 11,223 1.64 4.14 1.62 4.16 1.61 4.17 7
1998 3,713 1.61 4.34 1.52 4.43 1.52 4.43 12
1997 (g) 102 1.59* 6.61* 1.12* 7.08* 1.12* 7.08* 20
Class C (10/93)**
2001 (d) 15,938 1.41* 4.71* 1.41* 4.71* 1.39* 4.72* 5
2000 16,181 1.43 4.54 1.43 4.54 1.42 4.55 22
1999 16,198 1.45 4.33 1.41 4.37 1.41 4.37 7
1998 11,586 1.41 4.59 1.33 4.67 1.33 4.67 12
1997 (e) 7,087 1.57* 4.65* 1.34* 4.88* 1.34* 4.88* 20
1996 (f) 7,243 1.58 4.67 1.29 4.96 1.29 4.96 24
1995 (f) 5,536 1.58 4.97 1.28 5.27 1.28 5.27 25
Class R (2/97)
2001 (d) 1,815 .66* 5.47* .66* 5.47* .64* 5.48* 5
2000 1,337 .68 5.31 .68 5.31 .67 5.32 22
1999 979 .69 5.09 .66 5.12 .66 5.13 7
1998 590 .66 5.29 .57 5.38 .57 5.38 12
1997 (g) -- -- 10.97* -- 10.97* -- 10.97* 20
====================================================================================================================================
</TABLE>
* Annualized.
** Information included prior to the nine months ended February 28, 1997,
reflects the financial highlights of Flagship Connecticut Double Tax
Exempt.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) For the six months ended August 31, 2000.
(e) For the nine months ended February 28.
(f) For the fiscal year ended May 31.
(g) From commencement of class operations as noted.
______
28
<PAGE>
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Class (Inception Date)
Investment Operations Less Distributions
--------------------- ------------------ -------------------
Before Credit/
Reimbursement
-------------------
Ratio
of Net
Net Invest-
MASSACHUSETTS Realized/ Ratio of ment
Unrealized Expenses Income
Beginning Net Invest- Net Ending Ending to to
Net Invest- ment Invest- Net Net Average Average
Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net
February 28/29, Value Income (Loss) Total Income Gains Total Value Return(a) (000) Assets Assets
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) $ 9.26 $ .25 $ .27 $ .52 $ (.25) $ -- $(.25) $ 9.53 5.71% $ 17,951 1.01%* 5.25%*
2000 10.07 .50 (.82) (.32) (.49) -- (.49) 9.26 (3.21) 16,814 .98 5.15
1999 10.08 .51 (.01) .50 (.51) -- (.51) 10.07 5.05 15,134 1.02 4.95
1998 9.89 .52 .19 .71 (.52) -- (.52) 10.08 7.38 9,291 1.00 5.20
1997 9.94 .53 (.07) .46 (.51) -- (.51) 9.89 4.73 7,200 1.01 5.22
1996 9.56 .51 .39 .90 (.52) -- (.52) 9.94 9.62 4,290 1.17 5.04
Class B (3/97)
2001 (d) 9.28 .22 .27 .49 (.22) -- (.22) 9.55 5.30 3,691 1.76* 4.50*
2000 10.10 .43 (.83) (.40) (.42) -- (.42) 9.28 (4.02) 3,730 1.73 4.40
1999 10.10 .43 .01 .44 (.44) -- (.44) 10.10 4.40 3,226 1.77 4.22
1998 (e) 9.88 .45 .22 .67 (.45) -- (.45) 10.10 6.93 763 1.77* 4.41*
Class C (10/94)
2001 (d) 9.20 .22 .28 .50 (.23) -- (.23) 9.47 5.44 6,355 1.55* 4.68*
2000 10.02 .44 (.82) (.38) (.44) -- (.44) 9.20 (3.87) 4,730 1.53 4.61
1999 10.02 .45 -- .45 (.45) -- (.45) 10.02 4.62 3,696 1.57 4.41
1998 9.83 .47 .19 .66 (.47) -- (.47) 10.02 6.85 1,924 1.55 4.64
1997 9.89 .45 (.08) .37 (.43) -- (.43) 9.83 3.90 913 1.74 4.50
1996 9.51 .44 .39 .83 (.45) -- (.45) 9.89 8.87 638 2.24 3.96
Class R (12/86)
2001 (d) 9.24 .26 .27 .53 (.26) -- (.26) 9.51 5.83 67,853 .81* 5.45*
2000 10.05 .52 (.82) (.30) (.51) -- (.51) 9.24 (3.03) 66,055 .78 5.33
1999 10.05 .52 .01 .53 (.53) -- (.53) 10.05 5.36 75,750 .82 5.12
1998 9.86 .54 .19 .73 (.54) -- (.54) 10.05 7.60 72,934 .80 5.40
1997 9.91 .54 (.06) .48 (.53) -- (.53) 9.86 4.99 72,912 .77 5.46
1996 9.54 .54 .38 .92 (.55) -- (.55) 9.91 9.80 76,773 .82 5.42
-------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------
After After Credit/
Reimbursement (b) Reimbursement (c)
------------------- ------------------
Ratio Ratio
of Net of Net
Invest- Invest-
Ratio of ment Ratio of ment
Expenses Income Expenses Income
to to to to
Average Average Average Average Portfolio
Year Ended Net Net Net Net Turnover
February 28/29, Assets Assets Assets Assets Rate
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) .96%* 5.30%* .95%* 5.31%* 6%
2000 .96 5.17 .94 5.19 15
1999 .95 5.01 .95 5.01 10
1998 .95 5.25 .95 5.25 17
1997 .99 5.24 .99 5.24 10
1996 1.00 5.21 1.00 5.21 6
Class B (3/97)
2001 (d) 1.71* 4.55* 1.70* 4.56* 6
2000 1.71 4.42 1.69 4.44 15
1999 1.71 4.29 1.71 4.29 10
1998 (e) 1.70* 4.48* 1.70* 4.48* 17
Class C (10/94)
2001 (d) 1.51* 4.73* 1.50* 4.74* 6
2000 1.51 4.63 1.49 4.64 15
1999 1.50 4.47 1.50 4.48 10
1998 1.50 4.69 1.50 4.69 17
1997 1.73 4.51 1.73 4.51 10
1996 1.75 4.45 1.75 4.45 6
Class R (12/86)
2001 (d) .76* 5.50* .75* 5.51* 6
2000 .76 5.35 .74 5.37 15
1999 .75 5.19 .75 5.19 10
1998 .75 5.45 .75 5.45 17
1997 .75 5.48 .75 5.48 10
1996 .75 5.49 .75 5.49 6
--------------------------------------------------------------------------
</TABLE>
* Annualized.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) For the six months ended August 31, 2000.
(e) From commencement of class operations as noted.
_____
29
<PAGE>
Financial Highlights (Unaudited) (continued)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Class (Inception Date)
Investment Operations Less Distributions
--------------------- ------------------ -------------------
Before Credit/
Reimbursement
-------------------
Ratio
of Net
Net Invest-
MASSACHUSETTS INSURED Realized/ Ratio of ment
Unrealized Expenses Income
Beginning Net Invest- Net Ending Ending to to
Net Invest- ment Invest- Net Net Average Average
Year Ended Asset ment Gain ment Capital Asset Total Assets Net Net
February 28/29, Value Income (Loss) Total Income Gains Total Value Return(a) (000) Assets Assets
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) $ 9.77 $.25 $ .30 $ .55 $(.25) $ -- $ (.25) $ 10.07 5.72% $ 12,856 1.10%* 4.93%*
2000 10.59 .50 (.81) (.31) (.50) (.01) (.51) 9.77 (2.95) 11,9841 .01 4.99
1999 10.57 .51 .02 .53 (.51) -- (.51) 10.59 5.09 11,2081 .01 4.77
1998 10.38 .52 .19 .71 (.52) -- (.52) 10.57 7.04 8,6791 .03 4.98
1997 10.49 .53 (.12) .41 (.52) -- (.52) 10.38 4.02 7,4591 .04 5.02
1996 10.06 .51 .44 .95 (.52) -- (.52) 10.49 9.59 5,2911 .09 4.92
Class B (3/97)
2001 (d) 9.78 .21 .30 .51 (.21) -- (.21) 10.08 5.30 1,7371 .85* 4.18*
2000 10.59 .43 (.81) (.38) (.42) (.01) (.43) 9.78 (3.59) 1,5501 .76 4.23
1999 10.57 .43 .02 .45 (.43) -- (.43) 10.59 4.32 1,6501 .75 4.03
1998 (e) 10.36 .44 .21 .65 (.44) -- (.44) 10.57 6.45 6661 .80* 4.20*
Class C (9/94)
2001 (d) 9.75 .22 .30 .52 (.22) -- (.22) 10.05 5.41 1,263 1.65* 4.39*
2000 10.56 .45 (.81) (.36) (.44) (.01) (.45) 9.75 (3.43) 1,355 1.56 4.42
1999 10.54 .45 .02 .47 (.45) -- (.45) 10.56 4.51 1,675 1.56 4.22
1998 10.35 .46 .19 .65 (.46) -- (.46) 10.54 6.45 1,293 1.58 4.43
1997 10.47 .45 (.13) .32 (.44) -- (.44) 10.35 3.17 957 1.78 4.29
1996 10.04 .43 .44 .87 (.44) -- (.44) 10.47 8.80 706 1.81 4.20
Class R (12/86)
2001 (d) 9.78 .26 .30 .56 (.26) -- (.26) 10.08 5.81 53,20 2.90* 5.13*
2000 10.59 .52 (.80) (.28) (.52) (.01) (.53) 9.78 (2.68) 51,03 9.81 5.17
1999 10.57 .53 .01 .54 (.52) -- (.52) 10.59 5.26 57,28 1.81 4.97
1998 10.38 .54 .19 .73 (.54) -- (.54) 10.57 7.23 56,70 7.83 5.18
1997 10.50 .54 (.12) .42 (.54) -- (.54) 10.38 4.16 57,07 6.80 5.26
1996 10.06 .54 .44 .98 (.54) -- (.54) 10.50 9.99 60,10 2.81 5.21
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------
After After Credit/
Reimbursement (b) Reimbursement (c)
------------------- ------------------
Ratio Ratio
of Net of Net
Invest- Invest-
Ratio of ment Ratio of ment
Expenses Income Expenses Income
to to to to
Average Average Average Average Portfolio
Year Ended Net Net Net Net Turnover
February 28/29, Assets Assets Assets Assets Rate
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (d) 1.10%* 4.93%* 1.09%* 4.94%* 4%
2000 1.01 4.99 1.00 5.00 10
1999 1.01 4.77 1.01 4.77 11
1998 1.03 4.98 1.03 4.98 23
1997 1.04 5.02 1.04 5.02 10
1996 1.07 4.94 1.07 4.94 1
Class B (3/97)
2001 (d) 1.85* 4.18* 1.84* 4.19* 4
2000 1.76 4.23 1.75 4.24 10
1999 1.75 4.03 1.75 4.03 11
1998 (e) 1.80* 4.20* 1.80* 4.20* 23
Class C (9/94)
2001 (d) 1.65* 4.39* 1.64* 4.40* 4
2000 1.56 4.42 1.55 4.43 10
1999 1.56 4.22 1.56 4.22 11
1998 1.58 4.43 1.58 4.43 23
1997 1.78 4.29 1.78 4.29 10
1996 1.81 4.20 1.81 4.20 1
Class R (12/86)
2001 (d) .90* 5.13* .89* 5.14* 4
2000 .81 5.17 .80 5.19 10
1999 .81 4.97 .81 4.97 11
1998 .83 5.18 .83 5.18 23
1997 .80 5.26 .80 5.26 10
1996 .81 5.21 .81 5.21 1
-------------------------------------------------------------------------
</TABLE>
* Annualized.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) For the six months ended August 31, 2000.
(e) From commencement of class operations as noted.
_____
30
<PAGE>
Notes
_____
31
<PAGE>
Notes
_____
32
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and
Shareholder Services
Chase Global Funds Services
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public
Accountants
Arthur Andersen LLP
Chicago, IL
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and their
associated persons in response to either telephone inquiries at (800) 289-9999
or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an
investor brochure that includes information describing the Public Disclosure
Program.
_____
33
<PAGE>
Serving Investors For Generations
A 100-Year Tradition of Quality Investments
John Nuveen, Jr.
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
Since 1898, Nuveen Investments has been synonymous with investments that
withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Advisor Today
To find out how Nuveen Mutual Funds might round out your investment portfolio,
contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more
information. Ask your advisor or call for a prospectus, which details risks,
fees and expenses. Please read the prospectus carefully before you invest.
NUVEEN
Investments
Nuveen Investments
333 West Wacker Drive
Chicago, Illinois 60606-1286
www.nuveen.com
<PAGE>
NUVEEN
Investments
Municipal Bond
Funds
SEMIANNUAL REPORT AUGUST 31, 2000
Dependable, tax-free income to help you keep more of what you earn.
[PHOTOS APPEARS HERE]
INVEST WELL
LOOK AHEAD
LEAVE YOUR MARK/SM/
New Jersey
New York
New York Insured
<PAGE>
Dear Shareholders,
You may notice a change in your fund's semiannual report. We've simplified the
format to make it easier for you to get the information you want. We have
consolidated the chart information. Statistics such as total returns and yields
for your fund, portfolio allocation and credit quality - are now all on one
easy-to-read page. Finally, we want you to know what has happened in the
municipal bond market without having to wade through a lot of technical
analysis, so we have limited economic commentary about the period to one page.
Your annual report, which will cover the 12-month period ending February 28,
2001, will as always, include an in-depth interview with your fund's portfolio
manager. We strongly encourage you to read that report when you receive it next
year, as it strives to educate you on the value of Nuveen's active management of
your mutual fund.
If you have any questions about the changes made to your semiannual report,
please do not hesitate to contact Shareholder Services at (800) 257-8787. You
can also contact us through our Internet site, www.nuveen.com.
Contents
1 Dear Shareholder
3 Market Commentary
4 New Jersey Spotlight
5 New York Spotlight
6 New York Insured Spotlight
7 Portfolio of Investments
26 Statement of Net Assets
27 Statement of Operations
28 Statement of Changes in Net Assets
30 Notes to Financial Statements
36 Financial Highlights
41 Fund Information
Must be preceded by or accompanied by a prospectus.
<PAGE>
DEAR
Shareholder,
[PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
Chairman of the Board
Harvard University, Tiffany's and Dom Perignon are each the Rolls-Royce of its
market. Each is synonymous with "quality." Each has established, reinforced and
marketed its brand as one that consistently delivers a quality product - be it
education, fine jewelry or champagne. Each has made a promise to its customers,
and each works hard to keep that promise, year after year.
Webster defines quality as the degree of excellence that a thing possesses.
Nuveen Investments defines quality by the excellence of our portfolio management
and products as well as of the financial advisors you, and our firm, work with.
Quality Portfolio Management and Products
Nuveen's income-oriented funds feature portfolio management by Nuveen Investment
Management (NIM). NIM follows a disciplined, research-driven investment approach
to uncover income securities that combine exceptional relative value with
above-average return potential. Drawing on 300 combined years of investment
experience, the Nuveen team of portfolio managers and research analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence of trading leverage of a market leader.
While you may be familiar with our municipal bond funds, you may not be
aware of the equity mutual funds we offer investors. Our two newest funds -
Nuveen Innovation and Nuveen International Growth - were launched in December
1999. These funds are managed by Columbus Circle Investors (CCI), a firm that
has been managing money for more than 25 years and has used a single,
disciplined investment philosophy called "Positive Momentum and Positive
Surprise." This philosophy is based on the premise that:
. Strong companies tend to get stronger. CCI believes a company that
demonstrates positive momentum in its business fundamentals tends to
generate superior returns through rising stock prices. This represents the
Positive Momentum CCI seeks.
. Companies positively surprise when their business fundamentals and reported
results exceed investor and analyst expectations. CCI believes this is
often accompanied by strong, accelerating growth. This represents the
Positive Surprise CCI seeks.
Our Nuveen Rittenhouse Growth Fund is managed by Rittenhouse Financial
Services, Inc., a wholly owned subsidiary of the John Nuveen Company. The
investment philosophy Rittenhouse established years ago remains firmly in place
today - pursue long-term growth with high-quality, large capitalization blue
chip stocks. This singular focus has translated into consistently strong
risk-adjusted returns and productive, long-lasting relationships.
SEMIANNUAL REPORT page 1
<PAGE>
We also offer several growth and income style funds, all managed by
Institutional Capital Corporation (ICAP), of which the John Nuveen Company holds
a minority interest. ICAP seeks out stocks it believes have appreciation
potential unrecognized by the general market for Nuveen Growth and Income Stock
Fund, Nuveen European Value Fund, Nuveen Balanced Stock and Bond Fund and Nuveen
Balanced Municipal and Stock Fund.
Quality Financial Advisors
Nuveen Investments works through financial advisors because we believe in
quality advice. Today, you face an unprecedented array of investment choices,
opportunities - and risks. Your investment advisor can offer you the
professional assistance that will help bring to life your aspirations - for
yourself and your family, today and in the future.
This Report
Please review your fund's Financial Spotlight to learn how it is positioned as
of its semiannual period, ended August 31, 2000. Also, I invite you to read the
following Market Commentary to learn more about the economic environment in
which your fund performed.
For more information on any Nuveen investment, including a prospectus, contact
your financial advisor. Or call Nuveen at (800) 621-7227 or visit our Internet
site at www.nuveen.com. Please read the prospectus carefully before you invest
or send money.
Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 18, 2000
SEMIANNUAL REPORT page 2
<PAGE>
NUVEEN MUNICIPAL FUNDS
Market Commentary as of August 31, 2000
Municipal bonds performed well during the six-month period ended August 31,
2000. During this period, yields on long-term municipal bonds declined by
approximately 54 basis points, resulting in a corresponding rise in bond prices.
Three reasons account for this performance. First, the likelihood of a
Federal Reserve tightening - in the view of the general market - fell as signs
of inflation did not appear. Secondly, new issue supply in the municipal market
remained low. This was due in part to the fact that many municipalities have
been funding capital projects with current strong tax collections rather than
with long-term debt. Finally, volatility and lackluster returns in the equity
market have increasingly turned investor attention to the municipal market.
During the period, credit spreads - the basis point difference between
yields on high-grade bonds and low-grade bonds - tightened. Still, compared with
credit spreads over the last several years, the spreads remained attractive.
Liquidity spreads - the basis point difference between the yields offered by
sellers and yields demanded by buyers - remained wide and volatile creating
opportunities for value trading.
The strong economy continued to generate strong tax collections for
municipalities throughout the country. In addition to reducing the need for debt
issuance, the collections have contributed to improved credit quality among many
municipal issuers. The recent upgrade of New York City to A, its highest rating
in 25 years, illustrates this trend.
Among the noteworthy deals this quarter were two tobacco
settlement-backed bond issues, both on behalf of New York counties. In the $206
billion settlement between 46 states and major tobacco companies, the states
exchanged all smoking-related claims for a stream of annual payments from the
tobacco companies. Several states and counties have come to market to borrow
against the future stream of payments. Proceeds of these transactions have been
applied to several different municipal purposes. We expect to see many more
tobacco deals over the next year.
A Look Ahead
We believe the Fed will remain on hold through the elections. As the
traditionally slow time of the year for the bond market - summer - has ended,
supply could increase incrementally. However, supply will likely remain
significantly below last year because of strong tax collections. Finally, we
believe that investors will increasingly shift money from the equity market to
the bond market if they see equity returns significantly lower than the past
several years.
SEMIANNUAL REPORT page 3
<PAGE>
--------------------------------------------------------------------------------
Portfolio Statistics
--------------------------------------------------------------------------------
Total Net Assets $113.7 million
--------------------------------------------------------------------------------
Average Effective
Maturity 17.87 years
--------------------------------------------------------------------------------
Average Duration 7.92
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Top Five Sectors [_]
--------------------------------------------------------------------------------
Tax Obligation (Limited) 22%
--------------------------------------------------------------------------------
Transportation 18%
--------------------------------------------------------------------------------
Long-Term Care 9%
--------------------------------------------------------------------------------
Tax Obligation (General) 9%
--------------------------------------------------------------------------------
U.S. Guaranteed 8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Bond Credit Quality [_]
--------------------------------------------------------------------------------
[BAR CHART APPEARS HERE]
67%
AAA
U.S. Guaranteed
11% AAA
9% A
5% BBB
5% NR
3% Other
[_] As a percentage of total bond holdings as of August 31, 2000. Holdings are
subject to change.
NUVEEN NEW JERSEY MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
--------------------------------------------------------------------------------
Quick Facts
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV $10.16 $10.16 $10.13 $10.16
--------------------------------------------------------------------------------
August's Declared Dividend* $ 0.0400 $ 0.0335 $ 0.0355 $ 0.0415
--------------------------------------------------------------------------------
Inception Date 9/94 2/97 9/94 12/91
--------------------------------------------------------------------------------
*Paid September 1, 2000
--------------------------------------------------------------------------------
Total Returns as of 8/31/00 Annualized*
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 5.36% 0.97% 4.64% 0.64% 4.80% 5.55%
--------------------------------------------------------------------------------
5-Year 5.20% 4.31% 4.42% 4.25% 4.57% 5.40%
--------------------------------------------------------------------------------
Since Inception 6.06% 5.52% 5.35% 5.35% 5.36% 6.30%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Returns as of 6/30/00 (Annualized)*
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 0.79% -3.41% 0.00% -3.84% 0.25% 1.09%
--------------------------------------------------------------------------------
5-Year 4.93% 4.03% 4.13% 3.96% 4.29% 5.13%
--------------------------------------------------------------------------------
Since Inception 5.79% 5.25% 5.07% 5.07% 5.10% 6.04%
--------------------------------------------------------------------------------
*Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins
at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class C shares have a 1% CDSC
for redemptions within one year, which is not reflected in the one-year total
returns.
--------------------------------------------------------------------------------
Tax-Free Yields as of 8/31/00
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
SEC 30-Day Yield 4.54% 4.35% 3.79% 4.00% 4.74%
--------------------------------------------------------------------------------
Taxable Equivalent Yield* 7.04% 6.74% 5.88% 6.20% 7.35%
--------------------------------------------------------------------------------
*Based on SEC yield and a combined federal and state income tax rate of 35.5%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
SEMIANNUAL REPORT page 4
<PAGE>
NUVEEN NEW YORK MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
--------------------------------------------------------------------------------
Quick Facts
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV $10.48 $10.49 $10.51 $10.51
--------------------------------------------------------------------------------
August's Declared Dividend* $0.0500 $0.0435 $0.0455 $0.0520
--------------------------------------------------------------------------------
Inception Date 9/94 2/97 9/94 12/86
--------------------------------------------------------------------------------
*Paid September 1, 2000
--------------------------------------------------------------------------------
Total Returns as of 8/31/00 (Annualized)*
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 5.43% 1.03% 4.63% 0.66% 4.85% 5.65%
--------------------------------------------------------------------------------
5-Year 5.86% 4.96% 5.08% 4.91% 5.23% 6.08%
--------------------------------------------------------------------------------
10-Year 7.17% 6.71% 6.60% 6.60% 6.50% 7.45%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Returns as of 6/30/00 (Annualized)*
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 2.11% -2.18% 1.33% -2.52% 1.55% 2.24%
--------------------------------------------------------------------------------
5-Year 5.67% 4.76% 4.89% 4.72% 5.03% 5.87%
--------------------------------------------------------------------------------
10-Year 6.84% 6.38% 6.27% 6.27% 6.16% 7.10%
--------------------------------------------------------------------------------
*Class R share returns are actual. Class A, B and C share returns are actual
for the period since class inception; returns prior to class inception are
Class R share returns adjusted for differences in sales charges and expenses,
which are primarily differences in distribution and service fees. Class A
shares have a 4.2% maximum sales charge. Class B shares have a CDSC that begins
at 5% for redemptions during the first year after purchase and declines
periodically to 0% over the following five years. Class C shares have a 1% CDSC
for redemptions within one year, which is not reflected in the one-year total
returns.
--------------------------------------------------------------------------------
Tax-Free Yields as of 8/31/00
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
SEC 30-Day Yield 5.66% 5.42% 4.91% 5.11% 5.86%
--------------------------------------------------------------------------------
Taxable Equivalent Yield* 8.78% 8.40% 7.61% 7.92% 9.09%
--------------------------------------------------------------------------------
*Based on SEC yield and a combined federal and state income tax rate of 35.5%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
--------------------------------------------------------------------------------
Morningstar Rating/(TM)/++/
--------------------------------------------------------------------------------
****
Overall rating among 1,714 municipal bond funds as of 8/31/00
--------------------------------------------------------------------------------
Portfolio Statistics
--------------------------------------------------------------------------------
Total Net Assets $269.3 million
--------------------------------------------------------------------------------
Average Effective
Maturity 18.55 years
--------------------------------------------------------------------------------
Average Duration 7.03
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Top Five Sectors [_]
--------------------------------------------------------------------------------
Tax Obligation (Limited) 27%
--------------------------------------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------------------------------------
Education and Civic
Organizations 11%
--------------------------------------------------------------------------------
Healthcare 11%
--------------------------------------------------------------------------------
Utilities 9%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Bond Credit Quality [_]
--------------------------------------------------------------------------------
[BAR CHART APPEARS HERE]
41%
AAA/U.S. Guaranteed
12% AA
29% A
13% BBB
5% NR
[_] As a percentage of total bond holdings as of August 31, 2000. Holdings are
subject to change.
++ The Morningstar rating is an overall rating for the municipal bond category
and relates to Class A shares only; other classes may vary. Morningstar
proprietary ratings reflect historical risk-adjusted performance as of
8/31/00 and are subject to change every month. Past performance is no
guarantee of future results. Ratings are calculated from the fund's three-,
five-, and 10-year average annual returns (if applicable) in excess of
90-day Treasury bill returns, with appropriate fee adjustments, and a risk
factor that reflects fund performance below 90-day T-bill returns. Class A
shares of the fund received four stars for the three- and five-year
periods. The top 10% of the funds in a broad asset class receive five stars
and the next 22.5% receive four stars. The fund was rated among 1,714 and
1,468 funds for the three- and five-year periods, respectively.
SEMIANNUAL REPORT page 5
<PAGE>
NUVEEN NEW YORK INSURED MUNICIPAL BOND FUND
Fund Spotlight as of August 31, 2000
--------------------------------------------------------------------------------
Quick Facts
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV $10.28 $10.29 $10.27 $10.29
--------------------------------------------------------------------------------
August's Declared Dividend* $0.0430 $0.0365 $0.0380 $0.0445
--------------------------------------------------------------------------------
Inception Date 9/94 2/97 9/94 12/86
--------------------------------------------------------------------------------
*Paid September 1, 2000
--------------------------------------------------------------------------------
Total Returns as of 8/31/00 (Annualized)*
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 5.55% 1.11% 4.73% 0.73% 4.83% 5.73%
--------------------------------------------------------------------------------
5-Year 5.06% 4.17% 4.27% 4.10% 4.38% 5.28%
--------------------------------------------------------------------------------
10-Year 6.78% 6.32% 6.18% 6.18% 6.07% 7.03%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total Returns as of 6/30/00 (Annualized)*
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV w/CDSC NAV NAV
1-Year 2.20% -2.13% 1.41% -2.48% 1.59% 2.38%
--------------------------------------------------------------------------------
5-Year 4.85% 3.96% 4.05% 3.88% 4.18% 5.05%
--------------------------------------------------------------------------------
10-Year 6.46% 6.01% 5.85% 5.85% 5.76% 6.71%
--------------------------------------------------------------------------------
*Class R share returns are actual. Class A, B and C share returns are actual for
the period since class inception; returns prior to class inception are Class R
share returns adjusted for differences in sales charges and expenses, which are
primarily differences in distribution and service fees. Class A shares have a
4.2% maximum sales charge. Class B shares have a CDSC that begins at 5% for
redemptions during the first year after purchase and declines periodically to
0% over the following five years. Class C shares have a 1% CDSC for redemptions
within one year, which is not reflected in the one-year total returns.
--------------------------------------------------------------------------------
Tax-Free Yields as of 8/31/00
--------------------------------------------------------------------------------
A Shares B Shares C Shares R Shares
NAV Offer NAV NAV NAV
SEC 30-Day Yield 4.29% 4.11% 3.54% 3.74% 4.49%
--------------------------------------------------------------------------------
Taxable Equivalent Yield* 6.65% 6.37% 5.49% 5.80% 6.96%
--------------------------------------------------------------------------------
*Based on SEC yield and a combined federal and state income tax rate of 35.5%.
Represents the yield on a taxable investment necessary to equal the yield of
the Nuveen fund on an after-tax basis.
Returns are historical and do not guarantee future performance. Investment
returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Performance of classes
will differ. For additional information, please see the fund prospectus.
--------------------------------------------------------------------------------
Portfolio Statistics
--------------------------------------------------------------------------------
Total Net Assets $334.8 million
--------------------------------------------------------------------------------
Average Effective
Maturity 17.38 years
--------------------------------------------------------------------------------
Average Duration 6.07
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Top Five Sectors [_]
--------------------------------------------------------------------------------
U.S. Guaranteed 20%
--------------------------------------------------------------------------------
Tax Obligation (Limited) 14%
--------------------------------------------------------------------------------
Healthcare 13%
--------------------------------------------------------------------------------
Education and Civic
Organizations 13%
--------------------------------------------------------------------------------
Housing (Multifamily) 9%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Bond Credit Quality [_]
--------------------------------------------------------------------------------
[BAR CHART APPEARS HERE]
13% Insured & U.S. Guaranteed
7% U.S. Guaranteed
80% Insured
[_] As a percentage of total bond holdings as of August 31, 2000. Holdings are
subject to change.
SEMIANNUAL REPORT page 6
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.2%
<C> <S> <C> <C> <C>
$ 250 New Jersey Economic Development Authority, Solid Waste Disposal 4/02 at 102 Aa1 $ 263,070
Facility Revenue Bonds (Garden State Paper Company, Inc. Project),
Series 1992, 7.125%, 4/01/22 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 5.1%
935 New Jersey Economic Development Authority, Economic Development Bonds No Opt. Call N/R 1,046,387
(Yeshiva Ktana of Passaic - 1992 Project), 8.000%, 9/15/18
355 New Jersey Economic Development Authority, Insured Revenue Bonds No Opt. Call AAA 369,651
(Educational Testing Service Issue), Series 1995B, 5.500%, 5/15/05
2,230 New Jersey Economic Development Authority, School Revenue Bonds 2/08 at 101 N/R 2,124,365
(Gill/St. Bernard School), Series 1998, 6.000%, 2/01/25
740 New Jersey Educational Facilities Authority, Trenton State College 1/01 at 100 A 741,228
Issue Revenue Bonds, Series 1976D, 6.750%, 7/01/08
140 New Jersey Educational Facilities Authority, Seton Hall University 7/01 at 102 A- 145,282
Project Revenue Bonds, 1991 Series, Project D, 6.600%, 7/01/02
410 New Jersey Educational Facilities Authority, Revenue Refunding Bonds 7/03 at 102 BBB 413,583
(Monmouth College), Series 1993-A, 5.625%, 7/01/13
835 New Jersey Educational Facilities Authority, Princeton University 7/04 at 100 AAA 868,250
Revenue Bonds, 1994 Series A, 5.875%, 7/01/11
60 Higher Education Assistance Authority (State of New Jersey), Student 7/02 at 102 A+ 62,054
Loan Revenue Bonds, 1992 Series A, NJ Class Loan Program, 6.000%,
1/01/06 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 7.5%
1,200 New Jersey Health Care Facilities Financing Authority, Revenue and 7/07 at 102 AAA 1,168,188
Refunding Bonds, Holy Name Hospital Issue, Series 1997, 5.250%,
7/01/20
New Jersey Health Care Facilities Financing Authority, Revenue Bonds,
Newark Beth Israel Medical Center Issue, Series 1994:
200 5.800%, 7/01/07 7/04 at 102 AAA 212,748
200 6.000%, 7/01/16 7/04 at 102 AAA 214,142
250 New Jersey Health Care Facilities Financing Authority, Refunding 8/04 at 102 AAA 271,273
Revenue Bonds, Irvington General Hospital Issue (FHA-Insured
Mortgage), Series 1994, 6.375%, 8/01/15
400 New Jersey Health Care Facilities Financing Authority, Refunding 7/02 at 102 A- 421,468
Revenue Bonds, Atlantic City Medical Center Issue, Series C, 6.800%,
7/01/05
100 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 7/02 at 102 AAA 104,764
West Jersey Health System, Series 1992, 6.000%, 7/01/07
New Jersey Health Care Facilities Financing Authority, Revenue Bonds,
Monmouth Medical Center Issue, Series C:
250 5.700%, 7/01/02 No Opt. Call AAA 255,980
250 6.250%, 7/01/16 7/04 at 102 AAA 270,320
250 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 7/04 at 102 AAA 264,823
Dover General Hospital and Medical Center Issue, Series 1994, 5.900%,
7/01/05
1,000 New Jersey Health Care Facilities Financing Authority, Revenue and 7/07 at 102 AAA 921,020
Refunding Bonds, AHS Hospital Corporation Issue, Series 1997A, 5.000%,
7/01/27
New Jersey Health Care Facilities Financing Authority, Bayonne Hospital
Obligated Group, Revenue Bonds, Series 1994:
215 6.400%, 7/01/07 7/04 at 102 AAA 231,344
175 6.250%, 7/01/12 7/04 at 102 AAA 186,597
</TABLE>
7
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Healthcare (continued)
<C> <S> <C> <C> <C>
$ 1,555 New Jersey Health Care Facilities Financing Authority, Palisades 7/09 at 101 A $ 1,373,221
Medical Center of New York, Revenue Bonds (Presbyterian Healthcare
System Obligated Group Issue), Series 1999, 5.250%, 7/01/28
205 New Jersey Health Care Facilities Financing Authority, Revenue Bonds 7/02 at 102 Baa3 212,415
(Palisades Medical Center Obligated Group Issue), Series 1992, 7.500%,
7/01/06
790 New Jersey Economic Development Authority, Economic Growth Lease 12/03 at 102 Aa3 809,000
Revenue Bonds, Remarketed 1992 Second Series B, 5.300%, 12/01/07
(Alternative Minimum Tax)
300 New Jersey Economic Development Authority, Revenue Bonds (RWJ Health 7/04 at 102 AAA 319,881
Care Corp. - Hamilton Obligated Group Project), Series 1994, 6.250%,
7/01/14
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental 1/05 at 102 AAA 1,058,000
Control Facilities Financing Authority, Hospital Revenue Bonds, 1995
Series A (Hospital Auxilio Mutuo Obligated Group Project), 6.250%,
7/01/16
250 Pollution Control Financing Authority of Union County (New Jersey), No Opt. Call A3 267,815
Pollution Control Revenue Refunding Bonds, American Cyanamid Company
Issue, Series 1994, 5.800%, 9/01/09
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 7.4%
400 The Hudson County Improvement Authority, Multifamily Housing Revenue 6/04 at 100 AA 413,232
Bonds, Series 1992A (Conduit Financing - Observer Park Project),
6.900%, 6/01/22 (Alternative Minimum Tax)
1,500 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing 3/10 at 100 AAA 1,554,075
Revenue Bonds, 2000 Series A1, 6.350%, 11/01/31 (Alternative
Minimum Tax)
2,000 New Jersey Housing and Mortgage Finance Agency, Multifamily Housing 8/10 at 100 AAA 2,033,140
Revenue Bonds, 2000 Series E1, 5.750%, 5/01/25
1,500 New Jersey Housing Mortgage Finance Agency, Multifamily Housing Revenue 5/06 at 102 AAA 1,536,570
Bonds, 1996 Series A, 6.200%, 11/01/18 (Alternative Minimum Tax)
700 New Jersey Housing and Mortgage Finance Agency, Housing Revenue Bonds, 5/02 at 102 A+ 733,019
1992 Series A, 6.950%, 11/01/13
500 New Jersey Housing and Mortgage Finance Agency, Housing Revenue 11/02 at 102 A+ 521,395
Refunding Bonds, 1992 Series One, 6.600%, 11/01/14
1,090 Housing Authority of the City of Newark, New Jersey, Housing Revenue 10/09 at 102 Aaa 1,125,131
Bonds (GNMA Collateralized - Fairview Apartments Project), 2000
Series A, 6.300%, 10/20/19 (Alternative Minimum Tax)
500 North Bergen Housing Development Corporation (New Jersey), Mortgage 9/00 at 101 1/2 N/R 507,740
Revenue Bonds, Series 1978 (FHA-Insured Mortgage Loan - Section 8
Assisted Project), 7.400%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 4.3%
250 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue 7/04 at 102 AAA 258,910
Bonds, 1994 Series K, 6.300%, 10/01/16 (Alternative Minimum Tax)
4,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer Revenue 10/07 at 101 1/2 AAA 4,123,840
Bonds, 1997 Series U, 5.700%, 10/01/14 (Alternative Minimum Tax)
455 Virgin Islands Housing Finance Authority, Single Family Mortgage 3/05 at 102 AAA 465,151
Revenue Refunding Bonds (GNMA Mortgage-Backed Securities Program),
1995 Series A, 6.450%, 3/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 0.2%
215 New Jersey Economic Development Authority, District Heating and 12/03 at 102 BBB- 216,772
Cooling Revenue Bonds (Trigen-Trenton Project), 1993 Series B,
6.100%, 12/01/04 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 9.1%
New Jersey Economic Development Authority, Economic Development
Revenue Bonds (United Methodist Homes of New Jersey - Obligated Group
Issue), Series 1998:
1,500 5.125%, 7/01/18 7/08 at 102 BBB- 1,168,620
3,610 5.125%, 7/01/25 7/08 at 102 BBB- 2,659,740
5,100 New Jersey Economic Development Authority, Economic Development 12/09 at 101 Aa3 5,240,811
Revenue Bonds (Jewish Community Housing Corporation of Metropolitan
New Jersey - 1999 Project), 5.900%, 12/01/31
1,300 New Jersey Economic Development Authority, First Mortgage Revenue Fixed 7/08 at 102 A 1,246,453
Rate Bonds (Cadbury Corporation Project), Series 1998A, 5.500%,
7/01/18
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 9.0%
<C> <S> <C> <C> <C>
$ 200 Atlantic City, Atlantic County, New Jersey, General Obligation No Opt. Call A $ 207,182
General Improvement Bonds, Series 1994, 5.650%, 8/15/04
100 The Board of Education of Atlantic City, Atlantic County, New Jersey, 12/02 at 102 AAA 105,363
School Bonds, Series 1992, 6.000%, 12/01/06
100 County of Atlantic, New Jersey, General Improvement Bonds, 6.000%, 1/04 at 101 AAA 105,165
1/01/07
100 County of Camden, New Jersey, General Obligation Refunding Bonds, No Opt. Call AAA 101,885
Series 1992, 5.500%, 6/01/02
500 The Board of Education of The Township of Hillsborough, Somerset No Opt. Call AA 545,900
County, State of New Jersey, General Obligation School Purpose
Bonds, Series 1992, 5.875%, 8/01/11
400 The City of New Jersey, Hudson County, General Obligation Bonds, 1992 No Opt. Call AA 411,224
School Issue, 6.500%, 2/15/02
2,645 The Board of Education of the Township of Middletown, Monmouth County, 8/07 at 100 AAA 2,723,847
New Jersey, School Bonds, 5.800%, 8/01/21
100 Township of Montclair in the County of Essex, New Jersey, General 9/00 at 101 1/2 AAA 101,598
Obligation Bonds, School Bonds, 5.800%, 3/01/06
State of New Jersey, General Obligation Bonds, Series D:
200 0.000%, 2/15/03 No Opt. Call AA+ 179,104
1,000 5.800%, 2/15/07 No Opt. Call AA+ 1,071,240
165 Parsippany-Troy Hills Township, General Obligation, Capital No Opt. Call AA- 121,016
Appreciation Bonds, Series 1992, 0.000%, 4/01/07
185 The Board of Education of the City of Perth Amboy, Middlesex County, No Opt. Call AAA 196,614
New Jersey, School Bonds, 6.200%, 8/01/04
2,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, 7/07 at 101 1/2 AAA 2,006,820
Series 1997 (General Obligation Bonds), 5.375%, 7/01/21
2,000 Commonwealth of Puerto Rico, Public Improvement Refunding Bonds, 7/05 at 101 1/2 AAA 2,046,840
Series 1995 (General Obligation Bonds), 5.750%, 7/01/24
250 Union City, Hudson County, State of New Jersey, General Obligation No Opt. Call AAA 284,930
School Purpose Bonds, Series 1992, 6.375%, 11/01/10
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 22.2%
150 The Bergen County Utilities Authority (New Jersey), 1992 Water 12/02 at 102 AAA 157,262
Pollution Control System Revenue Bonds, Series B, 6.000%, 12/15/13
500 The Essex County Improvement Authority (New Jersey), Guaranteed Pooled 12/02 at 102 Baa1 520,595
Revenue Bonds, Series 1992A, 6.500%, 12/01/12
1,680 Lafayette Yard Community Development Corporation, Hotel/Conference 4/10 at 101 Aaa 1,773,542
Center (City of Trenton, New Jersey - Guaranteed), Project Revenue
Bonds, Series 2000, 6.000%, 4/01/29
1,235 The Board of Education of the Borough of Little Ferry, Bergen County, No Opt. Call N/R 1,269,506
New Jersey, Certificates of Participation, 6.300%, 1/15/08
250 Mercer County Improvement Authority (New Jersey), Solid Waste Revenue No Opt. Call Aa 211,923
Bonds, County Guaranteed Site and Disposal Facilities Project
Refunding Bonds, 1992 Issue, 0.000%, 4/01/04
3,025 Middlesex County Improvement Authority (New Jersey), County Guaranteed 9/09 at 100 Aaa 3,052,013
Open Space Trust Fund Revenue Bonds, Series 1999, 5.250%, 9/15/15
5,280 New Jersey Economic Development Authority, Lease Revenue Bonds, Series 11/08 at 101 Aaa 4,716,518
1998 (Bergen County Administration Complex), 4.750%, 11/15/26
New Jersey Economic Development Authority, Market Transition
Facility, Senior Lien Revenue Bonds, Series 1994A:
300 7.000%, 7/01/04 No Opt. Call AAA 326,169
650 5.875%, 7/01/11 7/04 at 102 AAA 685,809
New Jersey Sports and Exposition Authority, Convention Center
Luxury Tax Bonds, 1992 Series A:
100 6.000%, 7/01/07 7/02 at 102 AAA 104,800
250 6.250%, 7/01/20 7/02 at 102 AAA 263,090
</TABLE>
9
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited(continued)
<C> <S> <C> <C> <C>
$ 100 North Jersey District Water Supply, Commission of the State of New 7/03 at 102 AAA $ 105,120
Jersey, Wanaque South Project, Revenue Refunding Bonds, Series 1993,
5.700%, 7/01/05
2,350 The Ocean County Utilities Authority (New Jersey), Wastewater Revenue 1/01 at 100 AAA 2,328,427
Bonds, Refunding Series 1987, 5.000%, 1/01/14
170 Puerto Rico Aqueduct and Sewer Authority, Refunding Bonds, Series 7/06 at 101 1/2 A 169,021
1995, Guaranteed by the Commonwealth of Puerto Rico, 5.000%,
7/01/15
5,000 Puerto Rico Public Finance Corporation, 1998 Series A Bonds No Opt. Call AAA 4,892,050
(Commonwealth Appropriation Bonds), 5.125%, 6/01/24
5,000 The Union County Utilities Authority (New Jersey), Solid Waste Bonds, 6/08 at 102 Aaa 4,605,700
County Deficiency Agreement, Series 1998A1, 5.000%, 6/15/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 17.7%
2,150 Delaware River Port Authority (New Jersey), Port District Project 1/08 at 101 AAA 2,013,583
Bonds, Series B of 1998, 5.000%, 1/01/26
3,500 Delaware River Port Authority (New Jersey and Pennsylvania), Revenue 1/10 at 100 AAA 3,600,240
Bonds, Series of 1999, 5.750%, 1/01/22
100 Parking Authority of the City of Hoboken, County of Hudson, New Jersey, 3/02 at 102 Baa1 104,289
Parking General Revenue Refunding Bonds, Series 1992A, 6.625%, 3/01/09
1,750 New Jersey Turnpike Authority, Turnpike Revenue Bonds, Series 1991C, No Opt. Call A- 1,927,958
6.500%, 1/01/08
125 The Port Authority of New York and New Jersey, Consolidated Bonds, 10/04 at 101 AAA 134,156
Ninety Sixth Series, 6.600%, 10/01/23 (Alternative Minimum Tax)
200 The Port Authority of New York and New Jersey, Consolidated Bonds, 7/04 at 101 AA- 206,928
Ninety-Fifth Series, 5.500%, 7/15/05 (Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Consolidated Bonds,
One Hundred and Ninth Series:
1,500 5.375%, 7/15/22 1/07 at 101 AA- 1,482,795
2,000 5.375%, 7/15/27 1/07 at 101 AAA 1,967,740
2,000 The Port Authority of New York and New Jersey, Consolidated Bonds, One 6/05 at 101 AA- 2,000,400
Hundred and Twelfth Series, 5.250%, 12/01/13 (Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Special Project Bonds,
Series 6 (JFK International Air Terminal LLC Project):
2,125 6.250%, 12/01/08 (Alternative Minimum Tax) No Opt. Call AAA 2,340,900
1,000 7.000%, 12/01/12 (Alternative Minimum Tax) No Opt. Call AAA 1,187,030
3,100 5.750%, 12/01/25 (Alternative Minimum Tax) 12/07 at 100 AAA 3,140,889
45 South Jersey Transportation Authority, Transportation System Revenue 11/02 at 102 AAA 47,121
Bonds, 1992 Series B (Tax-Exempt), 5.900%, 11/01/06
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 8.1%
The Essex County Improvement Authority (New Jersey), City of
Newark General Obligation Lease Revenue Bonds, Series 1994:
620 6.350%, 4/01/07 (Pre-refunded to 4/01/04) 4/04 at 102 BBB+*** 668,007
450 6.600%, 4/01/14 (Pre-refunded to 4/01/04) 4/04 at 102 BBB+*** 488,525
100 The Essex County Improvement Authority (New Jersey), General 12/04 at 102 AAA 111,285
Obligation Lease Revenue Bonds, Series 1994 (County Jail and Youth
House Projects), 6.900%, 12/01/14 (Pre-refunded to 12/01/04)
The Monmouth County Improvement Authority (New Jersey), Revenue Bonds,
Series 19 (Howell Township Board of Education Project):
100 6.000%, 7/01/03 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 104,800
50 6.450%, 7/01/08 (Pre-refunded to 7/01/02) 7/02 at 102 AAA 52,793
200 New Jersey Economic Development Authority, Lease Rental Bonds, 1992 3/02 at 102 AAA 211,102
Series (Liberty State Park Project), 6.800%, 3/15/22 (Pre-refunded to
3/15/02)
1,330 New Jersey Health Care Facilities Financing Authority (Hackensack No Opt. Call AAA 1,513,633
Hospital), Revenue Bonds, Series 1979A, 8.750%, 7/01/09
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed (continued)
<C> <S> <C> <C> <C>
$ 2,065 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 7/01 at 102 A2*** $ 2,171,368
Series 1990-E (Kennedy Memorial Hospital), 8.375%, 7/01/10
(Pre-refunded to 7/01/01)
New Jersey Health Care Facilities Financing Authority, Bayonne
Hospital Obligated Group, Revenue Bonds, Series 1994:
35 6.400%, 7/01/07 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 37,963
25 6.250%, 7/01/12 (Pre-refunded to 7/01/04) 7/04 at 102 AAA 26,986
325 New Jersey Health Care Facilities Financing Authority, Revenue Bonds 7/02 at 102 Baa3*** 343,249
(Palisades Medical Center Obligated Group Issue), Series 1992,
7.500%, 7/01/06 (Pre-refunded to 7/01/02)
180 New Jersey Economic Development Authority, Economic Growth Bonds, 12/02 at 101 1/2 Aa3*** 190,339
Composite Issue of 1992 Second Series A3, 6.550%, 12/01/07
(Alternative Minimum Tax) (Pre-refunded to 12/01/02)
625 New Jersey Economic Development Authority, Insured Revenue Bonds 5/05 at 102 AAA 679,256
(Educational Testing Service Issue), Series 1995B, 6.125%, 5/15/15
(Pre-refunded to 5/15/05)
100 New Jersey Educational Facilities Authority, Stevens Institute of 7/02 at 102 A*** 105,461
Technology Issue Revenue Bonds,
1992 Series A, 6.400%, 7/01/03 (Pre-refunded to 7/01/02)
195 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1984 Series, No Opt. Call AAA 210,382
10.375%, 1/01/03
200 New Jersey Wastewater Treatment Trust, Wastewater Treatment Bonds, 4/04 at 102 Aa1*** 217,162
Series 1994A, 6.500%, 4/01/14 (Pre-refunded to 4/01/04)
300 The Township of North Bergen (Hudson County, New Jersey), Fiscal Year 8/02 at 102 AAA 317,736
Adjustment General Obligation Bonds, Series 1992, 6.500%, 8/15/12
(Pre-refunded to 8/15/02)
60 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/02 at 101 1/2 AAA 63,563
Bonds, Series T, 6.625%, 7/01/18 (Pre-refunded to 7/01/02)
55 South Jersey Transportation Authority, Transportation System Revenue 11/02 at 102 AAA 57,772
Bonds, 1992 Series B (Tax-Exempt), 5.900%, 11/01/06 (Pre-refunded
to 11/01/02)
1,100 Sparta Township School District, General Obligation Bonds (Unlimited 9/06 at 100 AAA 1,175,955
Tax), 5.800%, 9/01/18 (Pre-refunded to 9/01/06)
100 University of Medicine and Dentistry of New Jersey, Series E, 6.500%, 12/01 at 102 AA-*** 104,581
12/01/18 (Pre-refunded to 12/01/01)
300 The Wanaque Borough Sewerage Authority (Passaic County, New Jersey), 12/02 at 102 A3*** 322,386
Sewer Revenue Bonds, Series 1992 (Bank Qualified), 7.000%, 12/01/21
(Pre-refunded to 12/01/02)
75 The Wanaque Valley Regional Sewerage Authority (Passaic County, New 9/03 at 102 Baa1*** 79,774
Jersey), Sewer Revenue Bonds, 1993 Series A, 6.125%, 9/01/22
(Pre-refunded to 9/01/03)
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 5.4%
685 Pollution Control Financing Authority of Camden County (New Jersey), No Opt. Call B2 674,657
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991C, 7.125%, 12/01/01 (Alternative Minimum Tax)
2,645 Pollution Control Financing Authority of Camden County (New Jersey), 12/01 at 102 B2 2,511,586
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991D, 7.250%, 12/01/10
300 The Port Authority of New York and New Jersey, Special Project Bonds, No Opt. Call N/R 313,830
Series 4 (KIAC Partners Project), 7.000%, 10/01/07 (Alternative
Minimum Tax)
250 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, No Opt. Call A- 253,558
Series Q, 5.900%, 7/01/01
790 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series S, No Opt. Call A- 908,768
7.000%, 7/01/07
1,500 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, 7/05 at 100 A- 1,467,360
Series Z, 5.250%, 7/01/21
</TABLE>
11
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New Jersey Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 3.3%
<C> <S> <C> <C> <C>
$ 250 The Hoboken-Union City-Weehawken Sewerage Authority (New Jersey), 8/02 at 102 AAA $ 259,380
Sewer Revenue Bonds, Refunding Series 1992, 6.200%, 8/01/19
3,675 The North Hudson Sewerage Authority (New Jersey), Sewer Revenue Bonds, 8/06 at 101 AAA 3,534,463
Series 1996, 5.125%, 8/01/22
$113,430 Total Investments (cost $112,141,965) - 99.5% 13,123,450
--------
Other Assets Less Liabilities - 0.5% 529,935
Net Assets - 100% $113,653,385
---------------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
12
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Basic Materials - 0.6%
<C> <S> <C> <C> <C>
$ 700 Essex County Industrial Development Agency (New York), Environmental 11/09 at 101 BBB+ $ 719,600
Improvement Revenue Bonds, 1999 Series A (International Paper
Company Projects), 6.450%, 11/15/23 (Alternative Minimum Tax)
750 Jefferson County Industrial Development Agency, Multi-Modal 11/02 at 102 BBB+ 782,550
Interchangeable Rate Solid Waste Disposal Revenue Bonds (Champion
International Corporation Project), Series 1990, 7.200%, 12/01/20
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 3.0%
Monroe Tobacco Asset Securitization Corporation (New York), Tobacco
Settlement Asset-Backed Bonds, Series 2000,
250 6.000%, 6/01/15 6/10 at 101 A1 252,040
1,300 6.150%, 6/01/25 6/10 at 101 A1 1,310,530
1,500 Nassau County Tobacco Settlement Corporation (New York), Tobacco 7/09 at 101 A2 1,538,955
Settlement Asset-Backed Bonds, Series A, 6.500%, 7/15/27
2,750 TSASC, Inc. (New York), Tobacco Flexible Amortization Bonds, Series 7/09 at 101 Aa1 2,789,160
1999-1, 6.250%, 7/15/27
2,500 Westchester Tobacco Asset Securitization Corporation (New York), 7/10 at 101 A1 2,250,950
Tobacco Settlement Asset-Backed Bonds, Series 1999, 0.000%, 7/15/29
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 11.4%
2,000 City of Albany, New York, Industrial Development Agency, Civic 10/10 at 100 AA 1,998,460
Facility Revenue Bonds, The Albany Law School of Union University
Project, Series 2000A, 5.750%, 10/01/30
1,750 Town of Brookhaven, Industrial Development Agency, 1993 Civic Facility 3/03 at 102 BBB- 1,826,633
Revenue Bonds (Dowling College/The National Aviation and
Transportation Center Civic Facility), 6.750%, 3/01/23
1,000 Cattaraugus County, New York, Industrial Development Agency, Civic 7/10 at 102 Baa1 1,031,980
Facility Revenue Bonds, Jamestown Community College Issue, Series
2000A, 6.500%, 7/01/30
2,470 Dutchess County Industrial Development Agency, Civic Facility Revenue 11/03 at 102 A3 2,650,903
Bonds (The Bard College Project), Series 1992, 7.000%, 11/01/17
195 New York City Industrial Development Agency, Civic Facility Revenue 11/01 at 102 Aa1 203,057
Bonds (Federation Protestant Welfare), Series 1991, 6.950%, 11/01/11
New York City Industrial Development Agency, Civic Facility Revenue
Bonds (College of New Rochelle Project), Series 1995:
1,000 6.200%, 9/01/10 9/05 at 102 Baa2 1,067,450
1,000 6.300%, 9/01/15 9/05 at 102 Baa2 1,039,440
2,000 Dormitory Authority of the State of New York, State University 11/00 at 102 A 2,041,440
Educational Facilities Revenue Bonds, Series 1990A, 7.400%, 5/15/01
750 Dormitory Authority of the State of New York, City University System No Opt. Call Baa1 865,028
Consolidated Second General Resolution Revenue Bonds, Series 1990C,
7.500%, 7/01/10
500 Dormitory Authority of the State of New York, Revenue Bonds, State 7/01 at 102 A- 521,535
University Athletic Facility Issue, Series 1991, 7.250%, 7/01/21
2,100 Dormitory Authority of the State of New York, University of Rochester 7/04 at 102 A+ 2,252,754
Revenue Bonds, Series 1994A, 6.500%, 7/01/19
1,500 Dormitory Authority of the State of New York, City University System No Opt. Call A- 1,578,060
Consolidated Second General Resolution Revenue Bonds, Series 1993A,
5.750%, 7/01/07
1,000 Dormitory Authority of the State of New York, State University 5/14 at 100 A 996,970
Educational Facilities Revenue Bonds, Series 1993B, 5.250%, 5/15/19
500 Dormitory Authority of the State of New York, Upstate Community 7/10 at 101 AAA 508,765
Colleges Revenue Bonds, Series 2000A, 5.750%, 7/01/29
</TABLE>
13
<PAGE>
Portfolio of Investments(Unaudited)
Nuveen New York Municipal Bond Fund(continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
Education and Civic Organizations(continued)
<S> <C> <C> <C>
$ 1,750 Dormitory Authority of the State of New York, University of Rochester Revenue 7/09 at 101 A+ $ 1,743,018
Bonds, Series 1999B, 5.625%, 7/01/24
1,250 Dormitory Authority of the State of New York, Pratt Institute Revenue Bonds, 7/09 at 102 AA 1,288,550
Series 1999, 6.000%, 7/01/24
2,700 Dormitory Authority of the State of New York, Marymount Manhattan College 7/09 at 101 AA 2,842,128
Insured Revenue Bonds, Series 1999, 6.250%, 7/01/29
3,515 Suffolk County, Industrial Development Agency, Civic Facility Revenue Bonds 6/04 at 102 BBB- 3,479,288
(Dowling College Civic
Facility), Series 1994, 6.625%, 6/01/24
1,000 Suffolk County Industrial Development Agency, Civic Facility Revenue 12/06 at 102 BBB- 1,003,440
Refunding Bonds (Dowling
College Civic Facility), Series 1996, 6.700%, 12/01/20
City of Utica Industrial Development Agency (New York), Civic Facility
Revenue Bonds (Utica College Project), Series 1998A:
835 5.300%, 8/01/08 No Opt. Call N/R 843,617
1,000 5.750%, 8/01/28 8/08 at 102 N/R 953,930
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 10.8%
3,300 Dormitory Authority of the State of New York, Menorah Campus, Inc., 2/07 at 102 AAA 3,438,732
FHA-Insured Mortgage Nursing
Home Revenue Bonds, Series 1997, 5.950%, 2/01/17
1,000 Dormitory Authority of the State of New York, NYACK Hospital Revenue Bonds, 7/06 at 102 Baa2 999,320
Series 1996, 6.000%, 7/01/06
2,250 Dormitory Authority of the State of New York, The Rosalind and Joseph Gurwin 2/07 at 102 AAA 2,254,185
Jewish Geriatric
Center of Long Island, Inc., FHA-Insured Mortgage Nursing Home Revenue Bonds,
Series 1997, 5.700%, 2/01/37
2,500 Dormitory Authority of the State of New York, The Brooklyn Hospital Center, 2/09 at 101 Aaa 2,319,075
FHA-Insured Mortgage
Hospital Revenue Bonds, Series 1999, 5.150%, 2/01/29
2,700 Dormitory Authority of the State of New York (Catholic Health Services of 7/09 at 101 AAA 2,664,333
Long Island Obligated
Group), St. Francis Hospital Revenue Bonds, Series 1999A, 5.500%, 7/01/22
1,650 Dormitory Authority of the State of New York, Mount Sinai, New York 7/10 at 101 BBB+ 1,742,466
University Health Obligated Group
Revenue Bonds, Series 2000A, 6.500%, 7/01/25
1,845 New York State Medical Care Facilities Finance Agency, Hospital and Nursing 8/02 at 102 AAA 1,890,627
Home FHA-Insured
Mortgage Revenue Bonds, 1992 Series B, 6.200%, 8/15/22
5,000 New York State Medical Care Facilities Finance Agency, Hospital Insured 2/04 at 102 AAA 4,873,750
Mortgage Revenue Bonds, 1994 Series A Refunding, 5.375%, 2/15/25
1,000 New York State Medical Care Facilities Finance Agency, Brookdale Hospital No Opt. Call AAA 1,009,710
Medical Center, Secured
Hospital Revenue Bonds, 1995 Series A, 6.400%, 2/15/01
320 New York State Medical Care Facilities Finance Agency, Hospital and Nursing 2/01 at 101 AA 323,901
Home Insured Mortgage
Revenue Bonds, 1989 Series B, 7.350%, 2/15/29
1,000 New York State Medical Care Facilities Finance Agency, FHA-Insured Mortgage 2/05 at 102 AA 1,044,060
Project Revenue Bonds, 1995 Series B, 6.100%, 2/15/15
960 New York State Medical Care Facilities Finance Agency, Health Center Projects 11/05 at 102 Aa1 1,016,630
Revenue Bonds,
(Secured Mortgage Program), Series 1995A, 6.375%, 11/15/19
1,020 New York State Medical Care Facilities Finance Agency, Hospital and Nursing 2/04 at 102 AA 1,052,497
Home FHA-Insured Mortgage
Revenue Bonds, 1994 Series A, 6.200%, 2/15/21
340 New York State Medical Care Facilities Finance Agency, Hospital and Nursing 8/01 at 102 AA 355,082
Home Insured Mortgage
Revenue Bonds, 1991 Series A, 7.450%, 8/15/31
2,150 Newark-Wayne Community Hospital, Inc., Hospital Revenue Improvement and 9/03 at 102 N/R 2,191,603
Refunding Bonds,
Series 1993A, 7.600%, 9/01/15
2,000 New York City Industrial Development Agency, Civic Facility Revenue Bonds 12/02 at 102 BBB 2,026,600
(1992 Jewish Board of
Family and Children's Services, Inc. Project), 6.750%, 12/15/12
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.9%
1,000 City of Batavia Housing Authority, Tax-Exempt Mortgage Revenue Refunding 7/01 at 102 Aaa 1,019,770
Bonds, Series 1994A,
(Washington Towers - FHA-Insured Mortgage), 6.500%, 1/01/23
</TABLE>
-----
14
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily(continued)
<S> <C> <C> <C> <C>
2,000 New York City Housing Development Corporation, Multifamily Mortgage Revenue 4/03 at 102 AAA $ 2,097,420
Bonds (FHA-Insured
Mortgage Loan), 1993 Series A, 6.550%, 10/01/15
1,250 New York City Housing Development Corporation, Multi-Unit Mortgage Refunding 6/01 at 102 AAA 1,296,438
Bonds (FHA-Insured
Mortgage Loans), 1991 Series A, 7.350%, 6/01/19
750 Dormitory Authority of the State of New York, GNMA Collateralized Revenue 2/01 at 100 AAA 759,135
Bonds (Park Ridge
Housing, Inc. Project), Series 1989, 7.850%, 2/01/29
2,240 New York State Finance Agency, Housing Project Mortgage Revenue Bonds, 1996 5/06 at 102 AAA 2,296,851
Series A Refunding, 6.125%, 11/01/20
New York State Housing Finance Agency, Insured Multifamily
Mortgage Housing Revenue Bonds, 1992 Series A:
1,650 6.950%, 8/15/12 8/02 at 102 AA 1,727,171
500 7.000%, 8/15/22 8/02 at 102 AA 522,415
1,000 New York State Housing Finance Agency, Multifamily Housing Revenue Bonds 2/04 at 102 Aa1 1,044,220
(Secured Mortgage
Program), 1994 Series C, 6.450%, 8/15/14
1,000 New York State Urban Development Corporation, Section 236 Revenue Bonds, 1/02 at 102 AAA 1,046,570
Series 1992A, 6.750%, 1/01/26
1,300 Tonawanda Housing Authority, New York, Housing Revenue Bonds (Kibler Senior 9/09 at 103 N/R 1,310,088
Housing, LP Project),
Series 1999B Bonds, 7.750%, 9/01/31
------------------------------------------------------------------------------------------------------------------------------------
Housing/Single Family - 1.7%
1,500 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 9/04 at 102 Aa1 1,563,750
43, 6.450%, 10/01/17
1,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, 1995 3/05 at 102 Aa1 1,037,080
Series 46,
6.600%, 10/01/19 (Alternative Minimum Tax)
2,000 State of New York Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 10/09 at 100 Aa1 1,968,540
82, 5.650%, 4/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 5.9%
1,500 New York City Industrial Development Agency, Civic Facility Revenue Bonds, 7/10 at 102 N/R 1,509,345
Special Needs Facilities
Pooled Program, Series 2000A-1, 8.125%, 7/01/19
2,000 Dormitory Authority of the State of New York, Bishop Henry R. Hucles Nursing 7/06 at 102 Aa1 2,029,100
Home, Inc., Revenue
Bonds, Series 1996, 6.000%, 7/01/24
2,420 Dormitory Authority of the State of New York, W.K. Nursing Home Corporation, 8/06 at 102 AAA 2,520,019
FHA-Insured Mortgage
Revenue Bonds, Series 1996, 5.950%, 2/01/16
1,000 Dormitory Authority of the State of New York, The Miriam Osborn Memorial 7/10 at 102 A 1,042,110
Home Association Revenue
Bonds, Series 2000B, 6.375%, 7/01/29
1,500 Dormitory Authority of the State of New York, Concord Nursing Home, Inc. 7/10 at 101 A1 1,582,215
Revenue Bonds,
Series 2000, 6.500%, 7/01/29
5,000 Syracuse Housing Authority (New York), FHA-Insured Mortgage Revenue Bonds 2/08 at 102 AAA 5,046,300
(Loretto Rest
Residential Health Care Facility Project), Series 1997A, 5.800%, 8/01/37
2,100 UFA Development Corporation, Utica, New York, FHA-Insured Mortgage Revenue 7/04 at 102 Aa2 2,126,481
Bonds,
Series 1993 (Loretto-Utica Project), 5.950%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 4.8%
5 The City of New York, General Obligation Bonds, Fiscal 1992 Series C, 8/02 at 101 1/2 AAA 5,256
6.625%, 8/01/13
The City of New York, General Obligation Bonds, Fiscal 1996 Series G:
2,000 5.750%, 2/01/17 2/06 at 101 1/2 A2 2,036,700
2,500 5.750%, 2/01/20 2/06 at 101 1/2 A2 2,518,450
1,450 The City of New York, General Obligation Bonds, Fiscal 1992 Series B, 2/02 at 101 1/2 A2 1,526,256
7.500%, 2/01/06
4,440 The City of New York, General Obligation Bonds, Fiscal 1999 Series C, 8/08 at 101 A2 4,061,135
5.000%, 8/15/22
1,750 The City of New York, General Obligation Bonds, Fiscal 1997 Series D, 11/06 at 101 A2 1,852,970
5.875%, 11/01/11 1/2
</TABLE>
-----
15
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2000
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General(continued)
South Orangetown Central School District, Rockland County, New
York, Serial General Obligation Bonds, Series 1990:
$ 390 6.875%, 10/01/08 No Opt. Call A2 $ 446,059
390 6.875%, 10/01/09 No Opt. Call A2 450,236
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 27.2%
300 Albany Housing Authority, New York, Limited Obligation Bonds, Series 10/05 at 102 Baa1 301,863
1995,
5.850%, 10/01/07
1,500 Albany Parking Authority, Aggregate Principal Amount Parking Revenue No Opt. Call Baa1 575,895
Refunding Bonds, Series 1992A,
0.000%, 11/01/17
2,500 Housing New York Corporation, Senior Revenue Refunding Bonds, Series 11/03 at 102 AAA 2,460,775
1993, 5.000%, 11/01/13
4,000 Metropolitan Transportation Authority (New York), Transit Facilities 7/03 at 101 1/2 BBB+ 4,061,080
Service Contract Bonds, Series P,
5.750%, 7/01/15
1,500 Metropolitan Transportation Authority, New York, Dedicated Tax Fund 4/10 at 100 AAA 1,561,440
Bonds, Series 2000A, 6.000%, 4/01/30
1,700 New York City Transit Authority, Metropolitan Transportation Authority, 1/10 at 101 AAA 1,747,566
Triborough Bridge and Tunnel Authority, Certificates of Participation,
Series 2000A,
5.875%, 1/01/30
1,500 New York City Transitional Finance Authority, Future Tax Secured Bonds, 5/10 at 101 AA 1,568,565
Fiscal 2000 Series B,
6.000%, 11/15/29
1,915 New York City Transitional Finance Authority, Future Tax Secured Bonds, 5/10 at 101 Aa3 2,245,529
Residual Interest Certificates, Series 319,
8.666%, 11/01/17 (IF)
220 Dormitory Authority of the State of New York, Judicial Facilities Lease 10/00 at 114 1/7 Baa1 251,781
Revenue Bonds (Suffolk County Issue), Series 1991A,
9.500%, 4/15/14
1,000 Dormitory Authority of the State of New York, Revenue Bonds (Department 7/04 at 102 A 1,028,620
of Education of the State of New York Issue), Series 1994A,
6.250%, 7/01/24
2,900 Dormitory Authority of the State of New York, Department of Health of the 7/04 at 102 A 2,799,283
State of New York, Revenue Bonds, Series 1994,
5.500%, 7/01/23
2,500 Dormitory Authority of the State of New York, Mental Health Services 2/07 at 102 A 2,475,950
Facilities Improvement Revenue Bonds, Series 1997B,
5.625%, 2/15/21
2,000 Dormitory Authority of the State of New York, Mental Health Services 8/09 at 101 AAA 1,883,320
Facilities Improvement Revenue Bonds, Series 1999D,
5.250%, 2/15/29
1,545 New York State Environmental Facilities Corporation, State Park 3/03 at 101 A 1,571,358
Infrastructure Special Obligation Bonds, Series 1993A,
5.750%, 3/15/13
1,000 New York State Housing Finance Agency, Health Facilities Revenue Bonds 5/06 at 101 1/2 A- 1,058,300
(New York City), 1996 Series A Refunding,
6.000%, 11/01/08
260 New York State Housing Finance Agency, Health Facilities Revenue Bonds 11/00 at 102 BBB+ 266,167
(New York City), 1990 Series A Refunding,
8.000%, 11/01/08
2,990 New York State Housing Finance Agency, Service Contract Obligation 9/03 at 102 A 3,064,421
Revenue Bonds, 1993 Series C Refunding,
5.875%, 9/15/14
2,000 New York State Housing Finance Agency, Service Contract Obligation 9/05 at 102 A 2,048,240
Revenue Bonds, 1995 Series A,
6.375%, 9/15/15
250 State of New York Municipal Bond Bank Agency, Special Program Bonds (City 9/01 at 102 BBB+ 259,585
of Buffalo), 1991 Series A,
6.875%, 3/15/06
95 New York State Medical Care Facilities Finance Agency, Mental Health 2/01 at 100 A- 95,222
Services Facilities Improvement Revenue Bonds, 1988 Series A,
7.700%, 2/15/18
15 New York State Medical Care Facilities Finance Agency, Mental Health 8/04 at 102 A 15,842
Services Facilities Improvement Revenue Bonds, 1994 Series E,
6.500%, 8/15/24
3,335 New York State Thruway Authority, Highway and Bridge Trust Fund, Residual 4/10 at 101 Aaa 3,854,360
Interest Certificates Series 368, 8.243%, 4/01/16 (IF)
New York State Thruway Authority, Local Highway and Bridge
Service Contract Bonds, Series 2000:
5,000 5.750%, 4/01/16 (WI) 4/10 at 101 AAA 5,231,800
5,000 5.750%, 4/01/17 (WI) 4/10 at 101 AAA 5,206,950
</TABLE>
-----
16
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited (continued)
7,500 New York State Urban Development Corporation, Correctional Capital 1/04 at 102 A $ 7,031,775
Facilities Revenue Bonds, 1993A Refunding Series,
5.250%, 1/01/21
1,000 New York State Urban Development Corporation, Project Revenue Bonds 1/06 at 102 A 1,038,860
(Onondaga County Convention Center), Refunding Series 1995,
6.250%, 1/01/20
5,090 New York State Urban Development Corporation, Correctional Capital 1/03 at 102 A 5,087,099
Facilities Revenue Bonds, 1993 Refunding Series,
5.500%, 1/01/15
2,500 New York State, Urban Development Corporation, Correctional Facilities 1/08 at 102 A 2,235,075
Service Contract Revenue Bonds, Series A,
5.000%, 1/01/28
2,000 Niagara Falls City School District, Niagara County, New York, Certificates 6/08 at 101 AAA 1,920,460
of Participation, High School Facility, Series 1998,
5.375%, 6/15/28
1,420 Niagara Falls City School District, Niagara County, New York, Certificates 6/09 at 101 BBB- 1,477,567
of Participation, High School Facility, Series 2000,
6.625%, 6/15/28
1,000 Puerto Rico Highway and Transportation Authority, Transportation Revenue 7/10 at 101 AAA 1,051,390
Bonds, Series B,
5.750%, 7/01/19
2,000 34th Street Partnership, Inc., 34th Street Business Improvement District 1/03 at 102 A1 1,931,300
(New York), Capital Improvement Bonds, Series 1993,
5.500%, 1/01/23
500 Triborough Bridge and Tunnel Authority (New York), Convention Center No Opt. Call A 566,320
Project Bonds, Series E,
7.250%, 1/01/10
2,000 Triborough Bridge and Tunnel Authority (New York), Special Obligation 1/01 at 102 A1 2,055,800
Refunding Bonds, Series 1991B,
7.100%, 1/01/10
2,000 Triborough Bridge and Tunnel Authority, Special Obligation Refunding Bonds, 1/01 at 102 AAA 2,056,140
Series 1991B,
7.100%, 1/01/10
1,250 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin Islands 10/10 at 101 BBB- 1,297,425
Gross Receipts Tax Loan Note), Series 1999A,
6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 6.9%
500 Albany Parking Authority, Aggregate Principal Amount (Green and Hudson 9/01 at 102 A 518,555
Garage Project), Parking Revenue Refunding Bonds (Letter of Credit
Secured), Series 1991A, 7.150%,
9/15/16
4,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/07 at 101 1/2 AAA 4,073,080
Revenue Bonds, Series 1997A,
5.750%, 7/01/21
2,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/07 at 101 AAA 1,937,740
Revenue Bonds, Series 1997C,
5.375%, 7/01/27
2,000 New York City Industrial Development Agency, Special Facility Revenue Bonds 8/07 at 102 Baa1 1,764,640
(1990 American Airlines, Inc. Project), Remarketed, 5.400%, 7/01/20
(Alternative Minimum Tax)
4,000 New York City Industrial Development Agency, Special Facility Revenue 1/04 at 102 A 4,079,640
Bonds, Series 1994 (Terminal One Group Association, LP Project),
6.125%, 1/01/24 (Alternative Minimum Tax)
500 New York City Industrial Development Agency, Special Facility Revenue Bonds 12/08 at 102 A2 431,805
(British Airways PLC Project), Series 1998, 5.250%, 12/01/32 (Alternative
Minimum Tax)
1,000 Niagara Frontier Transportation Authority (Buffalo-Niagara International 4/09 at 101 AAA 990,120
Airport), Airport Revenue Bonds, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax)
1,500 The Port Authority of New York and New Jersey, Special Project Bonds, 12/07 at 100 AAA 1,519,785
Series 6 (JFK International Air Terminal LLC Project),
5.750%, 12/01/25 (Alternative Minimum Tax)
250 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 Series 6/06 at 102 Baa2 255,353
A (American Airlines, Inc. Project),
6.250%, 6/01/26 (Alternative Minimum Tax)
3,000 Triborough Bridge and Tunnel Authority (New York), General Purpose Revenue 1/10 at 100 Aa3 2,941,950
Bonds, Series 1999B,
5.500%, 1/01/30
------------------------------------------------------------------------------------------------------------------------------------
U.S. Guaranteed - 13.8%
1,600 Industrial Development Agency, Franklin County (New York), Lease Revenue 11/02 at 102 BBB-*** 1,682,560
Bonds (County Correctional Facility Project), Series 1992,
6.750%, 11/01/12 (Pre-refunded to 11/01/02)
1,025 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds, 7/02 at 102 AAA 1,084,450
Series J, 6.500%, 7/01/18
(Pre-refunded to 7/01/02)
</TABLE>
-----
17
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New York Municipal Bond Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed(continued)
$ 1,000 Industrial Development Agency, City of Rochelle, Civic Facility Revenue 7/02 at 102 Baa2*** $ 1,058,170
Bonds (College of New Rochelle Project), 1992 Series, 6.625%,
7/01/12 (Pre-refunded to 7/01/02)
40 The City of New York, General Obligation Bonds, Fiscal 1992 Series C, 8/02 at 101 1/2 AAA 42,294
6.625%, 8/01/13 (Pre-refunded to 8/01/02)
40 The City of New York, General Obligation Bonds, Fiscal 1991 Series F, 11/01 at 101 1/2 AAA 42,444
8.250%, 11/15/19 (Pre-refunded to 11/15/01)
1,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B1, 8/04 at 101 Aaa 1,104,720
7.000%, 8/15/16 (Pre-refunded to 8/15/04)
550 The City of New York, New York, General Obligation Bonds, Fiscal 1992 2/02 at 101 1/2 A2*** 582,054
Series B, 7.500%, 2/01/02 (Pre-refunded to 2/01/06)
1,500 New York City Municipal Water Finance Authority, Water and Sewer System 6/01 at 101 1/2 Aaa 1,562,220
Revenue Bonds, Fiscal 1991 Series C, 7.750%, 6/15/20
(Pre-refunded to 6/15/01)
5,345 New York City Industrial Development Agency, Civic Facility Revenue Bonds 7/02 at 102 Aa2*** 5,648,168
(The Lighthouse, Inc. Project), Series 1992, 6.500%, 7/01/22
(Pre-refunded to 7/01/02)
300 State of New York, Various Purpose Bonds, 7.300%, 3/01/12 3/01 at 102 A+*** 310,407
(Pre-refunded to 3/01/01)
300 Dormitory Authority of the State of New York, New York Department of 7/01 at 102 Baa1*** 314,136
Education, Revenue Bonds, Series 1991, 7.750%, 7/01/21
(Pre-refunded to 7/01/01)
400 Dormitory Authority of the State of New York, Menorah Campus, Inc., 8/01 at 102 AA*** 419,016
FHA-Insured Mortgage Revenue Bonds, Series 1991, 7.400%, 2/01/31
(Pre-refunded to 8/01/01)
250 Dormitory Authority of the State of New York, Department of Health Revenue 7/01 at 102 BBB+*** 260,643
Bonds, Veterans Home, Series 1990, 7.250%, 7/01/21
(Pre-refunded to 7/01/01)
230 Dormitory Authority of the State of New York, Iroquois Nursing Insured 2/01 at 102 AA-*** 237,121
Revenue Bonds, Series 1991, 7.000%, 2/01/15 (Pre-refunded to 2/01/01)
985 Dormitory Authority of the State of New York, Dormitory Revenue Bonds, 7/04 at 102 AAA 1,107,199
State University Issue, Series X, 7.400%, 7/01/24
(Pre-refunded to 7/01/04)
1,500 Dormitory Authority of the State of New York, Department of Health of New 7/05 at 102 AAA 1,670,520
York, Revenue Bonds, Series 1995, Roswell Park Cancer Center, 6.625%,
7/01/24 (Pre-refunded to 7/01/05)
215 New York State Energy Research and Development Authority, Electric 1/03 at 102 A-*** 229,955
Facilities Revenue Bonds (Long Island Lighting Company Project),
1992 Series D, 6.900%, 8/01/22 (Alternative Minimum Tax)
(Pre-refunded to 1/21/03)
200 New York State Housing Finance Agency, State University Construction No Opt. Call AAA 246,554
Refunding Bonds, 1986 Series A, 8.000%, 5/01/11
1,660 New York State Housing Finance Agency, Health Facilities Revenue Bonds 11/00 at 102 AAA 1,702,944
(New York City), 1990 Series A Refunding, 8.000%, 11/01/08
(Pre-refunded to 11/01/00)
250 State of New York Municipal Bond Bank Agency, Special Program Revenue 9/01 at 102 AAA 261,210
Bonds (City of Rochester), 1991 Series A, 6.750%, 3/15/11
(Pre-refunded to 9/15/01)
1,460 New York State Medical Care Facilities Finance Agency, Mental Health 2/01 at 102 Aaa 1,509,990
Services Facilities Improvement Revenue Bonds, 1991 Series A, 7.500%,
2/15/21 (Pre-refunded to 2/15/01)
1,350 New York State Medical Care Facilities Finance Agency, Hospital and 2/03 at 102 AAA 1,435,860
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1992 Series D, 6.450%,
2/15/09 (Pre-refunded to 2/15/03)
New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A:
1,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 1,111,240
1,000 6.800%, 8/15/24 (Pre-refunded to 2/15/05) 2/05 at 102 AAA 1,113,150
2,700 New York State Medical Care Facilities Finance Agency, Brookdale Hospital 2/05 at 102 AAA 3,005,505
Medical Center Secured Hospital Revenue Bonds, 1995 Series A, 6.800%,
8/15/12 (Pre-refunded to 2/15/05)
1,480 New York State Medical Care Facilities Finance Agency, Hospital and 2/04 at 102 AA*** 1,559,876
Nursing Home FHA-Insured Mortgage Revenue Bonds, 1994 Series A, 6.200%,
2/15/21 (Pre-refunded to 2/15/04)
1,485 New York State Medical Care Facilities Finance Agency, Mental Health 8/04 at 102 A*** 1,616,111
Services Facilities Improvement Revenue Bonds, 1994 Series E, 6.500%,
8/15/24 (Pre-refunded to 8/15/04)
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed(continued)
$ 140 New York State Medical Care Facilities Finance Agency, Hospital and 8/01 at 102 AA*** $ 146,831
Nursing Home Insured Mortgage Revenue Bonds, 1991 Series A, 7.450%,
8/15/31 (Pre-refunded to 8/15/01)
2,000 New York State Urban Development Corporation, Project Revenue Bonds 1/01 at 102 A*** 2,062,380
(Clarkson Center for Advanced Materials Processing Loan), Series 1990,
7.800%, 1/01/20 (Pre-refunded to 1/01/01)
2,900 New York State Urban Development Corporation, State Facilities Revenue 4/01 at 102 Aaa 3,011,128
Bonds, Series 1991, 7.500%, 4/01/20 (Pre-refunded to 4/01/01)
1,000 Orangetown Housing Authority (Rockland County, New York), Housing 10/00 at 102 A*** 1,022,600
Facilities Revenue Bonds (Orangetown Senior Housing Center),
1990 Series, 7.600%, 4/01/30 (Pre-refunded to 10/01/00)
-------------------------------------------------------------------------------------------------------------------------------
Utilities - 9.0%
6,500 Erie County (New York), Industrial Development Agency, Solid Waste 12/10 at 103 N/R 5,960,565
Disposal Facility Revenue Bonds (1998 CanFibre of Lackawanna Project),
8.875%, 12/01/13
(Alternative Minimum Tax)
4,325 Long Island Power Authority, New York, Electric System General Revenue 6/03 at 101 A- 4,151,697
Bonds, Series 1998A, 5.500%, 12/01/29
New York City Industrial Development Agency, Industrial
Development Revenue Bonds (Brooklyn Navy Yard Cogeneration
Partners, LP Project), Series 1997:
2,000 5.650%, 10/01/28 (Alternative Minimum Tax) 10/08 at 102 BBB- 1,832,120
5,950 5.750%, 10/01/36 (Alternative Minimum Tax) 10/08 at 102 BBB- 5,469,835
350 New York State Energy Research and Development Authority, Electric 1/01 at 100 1/2 A+ 354,295
Facilities Revenue Bonds, Series 1991A (Consolidated Edison Company of
New York, Inc. Project), 7.500%, 1/01/26 (Alternative Minimum Tax)
1,250 New York State Energy Research and Development Authority, Electric 6/02 at 102 A- 1,328,288
Facilities Revenue Bonds (Long Island Lighting Company Project),
1989 Series A, 7.150%, 9/01/19 (Alternative Minimum Tax)
285 New York State Energy Research and Development Authority, Electric 1/03 at 102 A- 301,268
Facilities Revenue Bonds (Long Island Lighting Company Project),
1992 Series D, 6.900%, 8/01/22 (Alternative Minimum Tax)
2,435 New York State Energy Research and Development Authority, Adjustable 7/05 at 102 AAA 2,503,691
Rate Pollution Control Revenue Bonds (New York State Electric and Gas
Corporation Project), 1987 Series A, 6.150%, 7/01/26 (Alternative Minimum Tax)
1,500 New York State Energy Research and Development Authority, Facilities 7/05 at 102 AAA 1,566,960
Refunding Revenue Bonds, Series 1995A (Consolidated Edison Company
of New York, Inc. Project), 6.100%, 8/15/20
750 Onondaga County Resource Recovery Agency, System Revenue Bonds 5/02 at 102 Baa1 761,871
(Development Costs), 1992 Series, 7.000%, 5/01/15 (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 1.1%
2,855 New York City Municipal Water Finance Authority, Water and Sewer System 6/07 at 101 AAA 2,706,850
Revenue Bonds, Fiscal 1998 Series B, 5.250%, 6/15/29
250 New York City Municipal Water Finance Authority, Water and Sewer System 6/09 at 101 AAA 245,920
Revenue Bonds, Fiscal 2000 Series A, 5.500%, 6/15/32
-----------------------------------------------------------------------------------------------------------------------------
$269,625 Total Investments (cost $262,024,506) - 101.1% 272,265,489
------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.1)% (2,996,843)
-------------------------------------------------------------------------------------------------------------
Net Assets - 100% $269,268,646
-------------------------------------------------------------------------------------------------------------
</TABLE>
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which ensures the timely
payment of principal and interest. Securities are normally considered to be
equivalent to AAA rated securities.
N/R Investment is not rated.
(IF) Inverse floating rate security.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
19
<PAGE>
Portfolio of Investments(Unaudited)
Nuveen New York Insured Municipal Bond Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
-------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 12.6%
<S> <C> <C> <C> <C>
$ 1,000 Allegany County Industrial Development Agency (New York), Civic Facility 8/08 at 102 Aaa $ 915,600
Revenue Bonds, Series 1998 (Alfred University Civic Facility), 5.000%,
8/01/28
3,095 Town of Amherst, New York, Industrial Development Agency, Civic Facility 8/10 at 102 AAA 3,144,241
Revenue Bonds (UBF Faculty-Student Housing Corporation - Village Green
Project), Series 2000A, 5.750%, 8/01/30
1,350 Town of Hempstead Industrial Development Agency, Civic Facility Revenue 7/06 at 102 AAA 1,409,670
Bonds (Hofstra University Project), Series 1996, 5.800%, 7/01/15
1,750 The Trust for Cultural Resources of The City of New York, Revenue Bonds, 4/07 at 101 AAA 1,759,713
Series 1997A (American Museum of Natural History), 5.650%, 4/01/27
1,000 New York City Industrial Development Agency, Civic Facility Revenue Bonds 11/04 at 102 AAA 1,077,020
(USTA National Tennis Center Incorporated Project), 6.375%, 11/15/14
1,145 New York City Industrial Development Agency, Civic Facility Revenue Bonds 6/07 at 102 Aaa 1,167,980
(Anti-Defamation League Foundation Project), Series 1997A, 5.600%, 6/01/17
180 Dormitory Authority of the State of New York, College and University 12/00 at 101 AAA 183,136
Revenue Bonds (Pooled Capital Program), Series 1985, 7.800%, 12/01/05
4,640 Dormitory Authority of the State of New York, Mount Sinai School of 7/04 at 102 AAA 4,302,486
Medicine Insured Revenue Bonds, Series 1994A, 5.000%, 7/01/21
1,500 Dormitory Authority of the State of New York, Sarah Lawrence College 7/05 at 102 AAA 1,546,845
Revenue Bonds, Series 1995, 6.000%, 7/01/24
5,000 Dormitory Authority of the State of New York, State University Educational 5/06 at 102 AAA 4,935,200
Facilities Revenue Bonds, Series 1996, 5.500%, 5/15/26
2,925 Dormitory Authority of the State of New York, Siena College Insured 7/07 at 102 AAA 2,970,250
Revenue Bonds, Series 1997, 5.750%, 7/01/26
4,000 Dormitory Authority of the State of New York, Fordham University Insured 7/08 at 101 AAA 3,663,240
Revenue Bonds, Series 1998, 5.000%, 7/01/28
3,000 Dormitory Authority of the State of New York, Ithaca College Insured 7/08 at 101 Aaa 2,802,780
Revenue Bonds, Series 1998, 5.000%, 7/01/21
3,250 Dormitory Authority of the State of New York, Upstate Community Colleges 7/10 at 101 AAA 3,306,973
Revenue Bonds, Series 2000A, 5.750%, 7/01/29
5,280 Dormitory Authority of the State of New York, University of Rochester, 7/10 at 101 AAA 3,067,205
2000A Revenue Bonds, 0.000%, 7/01/25
1,000 Dormitory Authority of the State of New York, Pace University Insured 7/10 at 102 AAA 1,047,640
Revenue Bonds, Series 2000, 6.000%, 7/01/29
4,695 Dormitory Authority of the State of New York, New York University Revenue 7/01 at 102 AAA 4,844,724
Bonds, Series 1991, 6.250%, 7/01/09
-------------------------------------------------------------------------------------------------------------------------------
Healthcare - 13.0%
2,980 New York City Health and Hospitals Corporation, Health System Bonds, 1993 2/03 at 102 AAA 3,002,559
Series A, 5.750%, 2/15/22
6,460 Dormitory Authority of the State of New York, St. Vincent's Hospital and 8/05 at 102 AAA 6,542,882
Medical Center of New York, FHA-Insured Mortgage Revenue Bonds, Series
1995, 5.800%, 8/01/25
3,730 Dormitory Authority of the State of New York, Maimonides Medical Center, 2/06 at 102 AAA 3,780,318
FHA-Insured Mortgage Hospital Revenue Bonds, Series 1996A, 5.750%,
8/01/24
2,500 Dormitory Authority of the State of New York, Secured Hospital Insured 2/08 at 101 1/2 AAA 2,287,500
Revenue Bonds (Southside Hospital), Series 1998, 5.000%, 2/15/25
3,000 Dormitory Authority of the State of New York (North Shore Health System 11/08 at 101 AAA 2,758,650
Obligated Group), North Shore University Hospital Revenue Bonds, Series
1998, 5.000%, 11/01/23
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Healthcare(continued)
$ 3,105 Dormitory Authority of the State of New York (Catholic Health Services of 7/09 at 101 AAA $3,063,983
Long Island Obligated Group), St. Charles Hospital and Rehabilitation
Center Revenue Bonds, Series 1999A, 5.500%, 7/01/22
2,260 Dormitory Authority of the State of New York (Catholic Health Services of 7/09 at 101 AAA 2,207,139
Long Island Obligated Group), St. Francis Hospital Revenue Bonds, Series
1999A, 5.500%, 7/01/29
1,000 Dormitory Authority of the State of New York, New Island Hospital Insured 7/09 at 101 AAA 1,027,100
Revenue Bonds, Series 1999A, 5.750%, 7/01/19
3,000 New York State Medical Care Facilities Finance Agency, South Nassau 11/02 at 102 AAA 3,146,820
Communities Hospital Project Revenue Bonds, 1992 Series A, 6.125%,
11/01/11
3,200 New York State Medical Care Facilities Finance Agency, North Shore 11/00 at 102 AAA 3,278,816
University Hospital Mortgage Project Revenue Bonds, 1990 Series A,
7.200%, 11/01/20
1,670 New York State Medical Care Facilities Finance Agency, Our Lady of Victory 11/01 at 102 AAA 1,723,774
Hospital Project Revenue Bonds, 1991 Series A, 6.625%, 11/01/16
New York State Medical Care Facilities Finance Agency, Sisters
of Charity Hospital of Buffalo Project Revenue Bonds, 1991 Series A:
500 6.600%, 11/01/10 11/01 at 102 AAA 520,560
1,550 6.625%, 11/01/18 11/01 at 102 AAA 1,613,922
1,000 New York State Medical Care Facilities Finance Agency, Aurelia Osborn Fox 11/01 at 102 AAA 1,044,640
Memorial Hospital Project Revenue Bonds, 1992 Series A, 6.500%, 11/01/19
4,000 New York State Medical Care Facilities Finance Agency, Hospital Insured 2/04 at 102 AAA 3,899,000
Mortgage Revenue Bonds, 1994 Series A Refunding, 5.375%, 2/15/25
640 New York State Medical Care Facilities Finance Agency, Hospital and 2/01 at 101 AA 647,802
Nursing Home Insured Mortgage Revenue Bonds,
1989 Series B, 7.350%, 2/15/29
2,890 New York State Medical Care Facilities Finance Agency, Montefiore Medical 2/05 at 102 AAA 2,981,729
Center FHA-Insured Mortgage Revenue Bonds, 1995 Series A,
5.750%, 2/15/15
--------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 9.3%
5,000 New York City Housing Development Corporation, Multifamily Housing 9/00 at 105 AAA 5,260,450
Limited Obligation Bonds, Series 1991A, Pass Through Certificates,
6.500%, 2/20/19
New York State Finance Agency, Housing Project
Mortgage Revenue Bonds, 1996 Series A Refunding:
5,650 6.100%, 11/01/15 5/06 at 102 AAA 5,837,806
4,980 6.125%, 11/01/20 5/06 at 102 AAA 5,106,392
635 New York State Housing Finance Agency, Multifamily Housing Revenue Bonds 11/00 at 101 AAA 648,887
(AMBAC Insured Program), 1989 Series A, 7.450%, 11/01/28
New York State Urban Development Corporation, Section 236 Revenue Bonds,
Series 1992A:
3,850 6.700%, 1/01/12 1/02 at 102 AAA 4,028,871
9,650 6.750%, 1/01/26 1/02 at 102 AAA 10,099,401
--------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.9%
4,250 Village of East Rochester Housing Authority (New York), FHA-Insured 8/07 at 102 AAA 4,273,078
Mortgage Revenue Bonds (St. John's Meadows Project), Series 1997A,
5.700%, 8/01/27
1,000 Dormitory Authority of the State of New York, United Cerebral Palsy 7/02 at 102 AAA 1,046,870
Association of Westchester County, Inc., Insured Revenue Bonds,
Series 1992, 6.200%, 7/01/12
1,000 Dormitory Authority of the State of New York, Sarah Neuman Nursing Home, 8/07 at 102 AAA 972,320
FHA-Insured Mortgage Nursing Home Revenue Bonds, Series 1997,
5.450%, 8/01/27
---------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 8.3%
1,000 City of Buffalo, New York, Refunding Serial Bonds, Series 1991, 6.150%, 2/01 at 101 AAA 1,016,740
2/01/04
Camden Central School District, Oneida County, New York, School
District (Serial) Bonds, Series 1991:
500 7.100%, 6/15/07 No Opt. Call AAA 573,735
600 7.100%, 6/15/08 No Opt. Call AAA 696,486
600 7.100%, 6/15/09 No Opt. Call AAA 704,250
275 7.100%, 6/15/10 No Opt. Call AAA 326,354
500 Greece Central School District, Monroe County, New York, General No Opt. Call AAA 548,395
Obligation Bonds, School District (Serial) Bonds, Series 1992, 6.000%,
6/15/09
</TABLE>
21
<PAGE>
Portfolio of Investments(Unaudited)
Nuveen New York Insured Municipal Bond Fund(continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/General(continued)
Town of Halfmoon, Saratoga County, New York, Public Improvement (Serial)
Bonds, Series 1991:
$ 385 6.500%, 6/01/09 No Opt. Call AAA $ 435,246
395 6.500%, 6/01/10 No Opt. Call AAA 449,237
395 6.500%, 6/01/11 No Opt. Call AAA 450,130
Middle County Central School District at Centereach, Town of
Brookhaven, Suffolk County, New York, School District (Serial)
Bonds, Series 1991:
475 6.900%, 12/15/07 No Opt. Call AAA 543,956
475 6.900%, 12/15/08 No Opt. Call AAA 549,437
Mount Sinai Union Free School District, County of Suffolk, New
York, School District Refunding (Serial) Bonds, Series 1992:
500 6.200%, 2/15/15 No Opt. Call AAA 554,395
1,035 6.200%, 2/15/16 No Opt. Call AAA 1,146,894
1,500 County of Nassau, New York, General Obligation Serial Bonds, General 8/04 at 103 AAA 1,573,890
Improvement Bonds, Series O, 5.700%, 8/01/13
1,125 County of Nassau, New York, General Obligation Serial Bonds, General 3/10 at 100 AAA 1,174,905
Improvement Bonds, Series F, 6.000%, 3/01/20
1,020 City of New Rochelle, Westchester County, New York, General Obligations, 8/04 at 102 AAA 1,066,594
Public Improvement Bonds, 1994 Series B, 6.200%, 8/15/22
The City of New York, General Obligation Bonds, Fiscal 1992 Series C:
60 6.250%, 8/01/10 8/02 at 101 1/2 AAA 62,663
20 6.625%, 8/01/12 8/02 at 101 1/2 AAA 21,022
The City of New York, General Obligation Bonds, Fiscal 1990 Series B:
1,300 7.000%, 10/01/15 10/00 at 100 AAA 1,302,652
2,000 7.000%, 10/01/16 10/00 at 100 AAA 2,004,420
1,025 7.000%, 10/01/17 10/00 at 100 AAA 1,027,265
310 7.000%, 10/01/18 10/00 at 100 AAA 310,722
1,590 City of Niagara Falls, Niagara County, New York, Public Improvement 3/04 at 102 AAA 1,726,295
(Serial) Bonds, Series 1994,
6.900%, 3/01/21
1,505 Town of North Hempstead, Nassau County, New York, General Obligation No Opt. Call AAA 1,702,095
Refunding Serial Bonds, 1992 Series B, 6.400%, 4/01/14
800 Commonwealth of Puerto Rico, Public Improvement Bonds of 2000, General 7/10 at 100 AAA 826,936
Obligation Bonds, 5.750%, 7/01/26
Rensselaer County, New York, General Obligation Serial Bonds, Series 1991:
960 6.700%, 2/15/13 No Opt. Call AAA 1,114,483
960 6.700%, 2/15/14 No Opt. Call AAA 1,112,784
960 6.700%, 2/15/15 No Opt. Call AAA 1,113,034
Rondout Valley Central School District at Accord, Ulster County,
New York, General Obligation, School District (Serial) Bonds,
1991:
550 6.800%, 6/15/06 No Opt. Call AAA 614,356
550 6.850%, 6/15/07 No Opt. Call AAA 623,706
550 6.850%, 6/15/08 No Opt. Call AAA 630,311
550 6.850%, 6/15/09 No Opt. Call AAA 636,301
550 6.850%, 6/15/10 No Opt. Call AAA 642,114
600 County of Suffolk, New York, General Obligation Refunding (Serial) Bonds, 5/02 at 102 AAA 625,734
Public Improvement Refunding Bonds, 1993 Series B, 6.150%, 5/01/10
------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 13.6%
2,500 Metropolitan Transportation Authority (New York), Dedicated Tax Fund 4/07 at 101 AAA 2,383,300
Bonds, Series 1996A,
5.250%, 4/01/26
2,000 Metropolitan Transportation Authority, New York, Dedicated Tax Fund 4/10 at 100 AAA 2,081,920
Bonds, Series 2000A,
6.000%, 4/01/30
4,625 New York City Transit Authority, Metropolitan Transportation Authority, 1/10 at 101 AAA 4,754,408
Triborough Bridge and Tunnel Authority, Certificates of Participation,
Series 2000A, 5.875%,
1/01/30
3,000 New York City Transitional Finance Authority, Future Tax Secured Bonds, 5/10 at 101 AAA 3,151,020
Fiscal 2000 Series B,
6.000%, 11/15/24
</TABLE>
----
22
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tax Obligation/Limited(continued)
$ 750 Dormitory Authority of the State of New York, Office Facilities Lease 4/09 at 101 AAA $ 744,690
Revenue Bonds (Department of Audit and Control), Series 1999,
5.500%, 4/01/23
2,750 Dormitory Authority of the State of New York, Court Facilities Lease 5/10 at 101 AAA 2,795,430
Revenue Bonds (The City of New York Issue), Series 1999,
5.750%, 5/15/30
3,400 Dormitory Authority of the State of New York, Mental Health Services 8/09 at 101 AAA 3,201,644
Facilities Improvement Revenue Bonds, Series 1999D,
5.250%, 2/15/29
3,280 New York Local Government Assistance Corporation (A Public Benefit 4/04 at 100 AAA 3,023,471
Corporation of the State of New York), Series 1993D Bonds,
5.000%, 4/01/23
1,000 New York State Medical Care Facilities Finance Agency, Mental Health 8/04 at 102 AAA 1,081,800
Services Facilities Improvement Revenue Bonds, 1994 Series D,
6.150%, 2/15/15
2,000 New York State Medical Care Facilities Finance Agency, Mental Health 2/04 at 102 AAA 1,906,400
Services Facilities Improvement Revenue Bonds, 1994 Series A,
5.250%, 8/15/23
185 New York State Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 AAA 190,859
Services Facilities Improvement Revenue Bonds, 1992 Series B,
6.250%, 8/15/18
150 New York State Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 AAA 156,327
Services Facilities Improvement Revenue Bonds, Series 1992A,
6.375%, 8/15/17
2,000 New York State Medical Care Facilities Finance Agency, Mental Health 2/04 at 102 AAA 1,945,820
Services Facilities Improvement Revenue Bonds, 1993 Series F Refunding,
5.250%, 2/15/19
4,000 New York State Urban Development Corporation, Revenue Bonds (Sports 4/06 at 102 AAA 4,015,760
Facility Assistance Program), 1996 Series A, 5.500%, 4/01/19
5,000 New York State Urban Development Corporation, Correctional Facilities 1/09 at 101 AAA 5,200,500
Service Contract Revenue Bonds, Series C,
6.000%, 1/01/29
8,650 Triborough Bridge and Tunnel Authority, Special Obligation Refunding 1/01 at 102 AAA 8,890,470
Bonds, Series 1991B, 6.875%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 8.9%
2,500 Albany County Airport Authority, Airport Revenue Bonds, Series 1997, 12/07 at 102 AAA 2,466,150
5.500%, 12/15/19 (Alternative Minimum Tax)
3,000 Buffalo and Fort Erie Public Bridge Authority, Toll Bridge System 1/05 at 101 AAA 3,030,630
Revenue Bonds, Series 1995, 5.750%, 1/01/25
4,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/05 at 101 AAA 4,026,240
Subordinated Revenue Bonds, Series 1995-2 (Grand Central Terminal
Redevelopment Project), 5.700%, 7/01/24
3,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/07 at 101 1/2 AAA 3,054,810
Revenue Bonds, Series 1997A, 5.750%, 7/01/21
3,040 Metropolitan Transportation Authority (New York), Commuter Facilities 7/07 at 102 AAA 2,860,549
Revenue Bonds, Series 1997B, 5.125%, 7/01/24
2,000 Metropolitan Transportation Authority (New York), Commuter Facilities 7/07 at 101 AAA 1,937,740
Revenue Bonds, Series 1997C, 5.375%, 7/01/27
3,500 Metropolitan Transportation Authority, Commuter Facilities Revenue Bonds, 7/07 at 101 AAA 3,265,815
Series 1997E, 5.000%, 7/01/21
Niagara Frontier Transportation Authority (Buffalo-Niagara International
Airport), Airport Revenue Bonds, Series 1998:
1,000 5.000%, 4/01/18 (Alternative Minimum Tax) 4/08 at 101 AAA 934,970
1,500 5.000%, 4/01/28 (Alternative Minimum Tax) 4/08 at 101 AAA 1,343,910
1,000 Niagara Frontier Transportation Authority (Buffalo-Niagara International 4/09 at 101 AAA 990,120
Airport), Airport Revenue Bonds, Series 1999A,
5.625%, 4/01/29 (Alternative Minimum Tax)
3,000 The Port Authority of New York and New Jersey, Special Project Bonds, 12/07 at 100 AAA 3,039,570
Series 6 (JFK International Air Terminal LLC Project),
5.750%, 12/01/25 (Alternative Minimum Tax)
2,750 Triborough Bridge and Tunnel Authority, General Purpose Revenue Bonds, 1/02 at 101 1/2 AAA 2,852,355
Series X, 6.500%, 1/01/19
</TABLE>
----
23
<PAGE>
Portfolio of Investments(Unaudited)
Nuveen New York Insured Municipal Bond Fund(continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Guaranteed - 20.1%
$ 3,385 Buffalo Municipal Water Finance Authority, Water System Revenue Bonds, 7/03 at 102 AAA $ 3,575,812
Series 1992, 5.750%, 7/01/19 (Pre-refunded to 7/01/03)
1,000 Erie County Water Authority (New York), Water Works System Revenue Bonds, 12/09 at 100 AAA 1,142,350
Series 1990B, 6.750%, 12/01/14
10,340 Metropolitan Transportation Authority, Transit Facilities Revenue Bonds, 7/02 at 102 AAA 10,939,720
Series J, 6.500%, 7/01/18 (Pre-refunded to 7/01/02)
County of Monroe, New York, Public Improvement Serial Bonds of
1992, General Obligation Bonds:
375 6.500%, 6/01/15 (Pre-refunded to 6/01/01) 6/01 at 102 AAA 388,556
375 6.500%, 6/01/16 (Pre-refunded to 6/01/01) 6/01 at 102 AAA 388,556
350 6.500%, 6/01/17 (Pre-refunded to 6/01/01) 6/01 at 102 AAA 362,653
4,840 Nassau County Industrial Development Agency, Civic Facility 8/01 at 102 AAA 5,043,038
Revenue Bonds (Hofstra University Project), Series 1991,
6.750%, 8/01/11 (Pre-refunded to 8/01/01)
The City of New York, General Obligation Bonds, Fiscal 1992
Series C:
3,940 6.250%, 8/01/10 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 4,139,049
55 6.625%, 8/01/12 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 AAA 58,154
2,000 New York City Municipal Water Finance Authority, Water 6/01 at 101 AAA 2,058,280
and Sewer System Revenue Bonds, Fiscal 1992 Series A,
6.750%, 6/15/16 (Pre-refunded to 6/15/01)
2,200 The Trust for Cultural Resources of The City of New York, 4/01 at 102 AAA 2,276,384
Revenue Refunding Bonds, Series 1991A, (The American Museum of
Natural History), 6.900%, 4/01/21 (Pre-refunded to 4/01/01)
2,500 Dormitory Authority of the State of New York, Cooper 7/01 at 102 AAA 2,609,000
Union Insured Revenue Bonds, Series 1990,
7.200%, 7/01/20 (Pre-refunded to 7/01/01)
305 Dormitory Authority of the State of New York, New York 7/01 at 102 AAA 315,901
University Revenue Bonds, Series 1991,
6.250%, 7/01/09 (Pre-refunded to 7/01/01)
2,500 New York State Medical Care Facilities Finance Agency, 11/03 at 102 AAA 2,682,350
St. Mary's Hospital Mortgage Project Revenue Bonds (Rochester),
1994 Series A Refunding, 6.200%, 11/01/14 (Pre-refunded to 11/01/03)
2,630 New York State Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 AAA 2,753,084
Services Facilities Improvement Revenue Bonds, 1992 Series B,
6.250%, 8/15/18 (Pre-refunded to 2/15/02)
7,000 New York State Medical Care Facilities Finance Agency, New York Hospital 2/05 at 102 AAA 7,792,050
FHA-Insured Mortgage Revenue Bonds, Series 1994A, 6.800%, 8/15/24
(Pre-refunded to 2/15/05)
6,000 New York State Medical Care Facilities Finance Agency, Mental Health 2/02 at 102 AAA 6,291,300
Services Facilities Improvement Revenue Bonds, Series 1992A,
6.375%, 8/15/17 (Pre-refunded to 2/15/02)
2,000 Power Authority of the State of New York, General Purpose Bonds, 1/02 at 102 AAA 2,096,340
Series Z, 6.500%, 1/01/19 (Pre-refunded to 1/01/02)
5,300 New York State Thruway Authority, General Revenue Bonds, Series A, 1/02 at 102 AAA 5,502,937
5.750%, 1/01/19 (Pre-refunded to 1/01/02)
Nyack Union Free School District, Rockland County, New York,
School District Serial Bonds of 1992:
625 6.500%, 4/01/12 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 658,125
625 6.500%, 4/01/13 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 658,125
625 6.500%, 4/01/14 (Pre-refunded to 4/01/02) 4/02 at 102 AAA 658,125
2,000 Triborough Bridge and Tunnel Authority, General Purpose Revenue Bonds, 1/01 at 102 AAA 2,057,560
Series T, 7.000%, 1/01/20 (Pre-refunded to 1/01/01)
1,175 Triborough Bridge and Tunnel Authority, General Purpose Revenue 1/01 at 101 1/2 AAA 1,203,024
Bonds, Series S, 7.000%, 1/01/21 (Pre-refunded to 1/01/01)
1,750 City of Yonkers, New York, General Obligation School Bonds, 12/00 at 102 AAA 1,798,073
Series 1990-C, 7.375%, 12/01/09 (Pre-refunded to 12/01/00)
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 4.0%
Long Island Power Authority, New York, Electric System General Revenue
Bonds, Series 1998A:
6,520 0.000%, 12/01/19 No Opt. Call AAA 2,245,423
4,035 5.125%, 12/01/22 6/08 at 101 AAA 3,814,608
1,000 5.750%, 12/01/24 6/08 at 101 AAA 1,016,690
3,380 5.250%, 12/01/26 6/08 at 101 AAA 3,220,227
</TABLE>
----
24
<PAGE>
<TABLE>
<CAPTION>
Principal Optional Call Market
Amount (000) Description Provisions* Ratings** Value
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Utilities(continued)
Long Island Power Authority, New York, Electric System General Revenue
Bonds, Series 2000A:
$ 2,000 0.000%, 6/01/24 No Opt. Call AAA $ 524,600
2,000 0.000%, 6/01/25 No Opt. Call AAA 494,660
2,000 New York State Energy Research and Development Authority, Adjustable 7/05 at 102 AAA 2,056,420
Rate Pollution Control Revenue Bonds (New York State Electric and
Gas Corporation Project), 1987 Series A, 6.150%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 7.4%
2,930 Buffalo Municipal Water Finance Authority, Water System Revenue Bonds, 7/08 at 101 AAA 2,683,323
Series 1998-A, 5.000%, 7/01/28
7,120 New York City Municipal Water Finance Authority, Water and Sewer System 6/06 at 101 AAA 7,209,000
Revenue Bonds, Fiscal 1996 Series B, 5.750%, 6/15/26
1,250 New York City Municipal Water Finance Authority, Water and Sewer System 6/01 at 101 AAA 1,284,163
Revenue Bonds, Fiscal 1992 Series A, 6.750%, 6/15/16
4,650 New York City, Municipal Water Finance Authority, Water and Sewer System 6/02 at 100 AAA 4,649,581
Revenue Bonds, Fiscal 1993 Series A, 5.500%, 6/15/20
3,000 New York City Municipal Water Finance Authority, Water and Sewer System 6/07 at 101 AAA 2,844,330
Revenue Bonds, Fiscal 1998 Series B, 5.250%, 6/15/29
1,000 New York City Municipal Water Finance Authority, Water and Sewer System 6/10 at 101 AAA 1,043,080
Revenue Bonds, Fiscal 2000 Series B, 6.000%, 6/15/33
1,450 New York State Environmental Facilities Corporation, State Water 9/00 at 102 AAA 1,481,900
Pollution Control, Revolving Fund Revenue Bonds, Series 1990C
(Pooled Loan Issue), 7.200%, 3/15/11
3,700 Suffolk County Water Authority, New York, Water System Revenue Bonds, 6/03 at 102 AAA 3,543,781
Series 1994, 5.000%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
$335,440 Total Investments (cost $317,210,268) - 99.1% 331,740,519
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 3,108,246
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% 334,848,765
====================================================================================================================
</TABLE>
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed
by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely payment of
principal and interest.
* 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.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
----
25
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 2000
<TABLE>
New York
New Jersey New York Insured
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in municipal securities, at market value $113,123,450 $272,265,489 $331,740,519
Cash -- 3,001,731 1,010,736
Receivables:
Interest 1,515,347 3,511,150 3,848,796
Investments sold 25,000 2,268,630 --
Shares sold 104,017 282,387 155,045
Other assets 1,228 3,518 11,886
------------------------------------------------------------------------------------------------------------------------------------
Total assets 114,769,042 281,332,905 336,766,982
------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 604,144 -- --
Payables:
Investments purchased -- 10,389,000 --
Shares redeemed 79,602 729,179 642,974
Accrued expenses:
Management fees 52,737 87,656 153,008
12b-1 distribution and service fees 25,763 40,814 24,198
Other 95,696 81,889 141,127
Dividends payable 257,715 735,721 956,910
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,115,657 12,064,259 1,918,217
------------------------------------------------------------------------------------------------------------------------------------
Net assets $113,653,385 $269,268,646 $334,848,765
------------------------------------------------------------------------------------------------------------------------------------
Class A Shares
Net assets $ 47,764,136 $ 91,528,086 $ 54,475,432
Shares outstanding 4,700,589 8,735,219 5,300,080
Net asset value and redemption price per share $ 10.16 $ 10.48 $ 10.28
Offering price per share (net asset value per share plus
maximum sales charge of 4.20% of offering price) $ 10.61 $ 10.94 $ 10.73
------------------------------------------------------------------------------------------------------------------------------------
Class B Shares
Net assets $ 14,388,589 $ 20,997,126 $ 15,291,781
Shares outstanding 1,416,768 2,001,356 1,486,099
Net asset value, offering and redemption price per share $ 10.16 $ 10.49 $ 10.29
------------------------------------------------------------------------------------------------------------------------------------
Class C Shares
Net assets $ 10,710,675 $ 13,595,540 $ 4,344,873
Shares outstanding 1,057,213 1,293,494 422,954
Net asset value, offering and redemption price per share $ 10.13 $ 10.51 $ 10.27
------------------------------------------------------------------------------------------------------------------------------------
Class R Shares
Net assets $ 40,789,985 $143,147,894 $260,736,679
Shares outstanding 4,014,545 13,622,593 25,348,487
Net asset value, offering and redemption price per share $ 10.16 $ 10.51 $ 10.29
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
Statement of Operations (Unaudited)
Six Months Ended August 31, 2000
<TABLE>
New York
New Jersey New York Insured
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income $ 3,235,078 $ 8,023,675 $ 9,941,138
-------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 306,548 704,857 902,470
12b-1 service fees - Class A 46,643 86,321 54,725
12b-1 distribution and service fees - Class B 66,936 98,069 73,646
12b-1 distribution and service fees - Class C 39,082 43,775 16,625
Shareholders' servicing agent fees and expenses 61,114 122,885 184,440
Custodian's fees and expenses 32,952 58,091 59,164
Trustees' fees and expenses 3,063 5,137 5,246
Professional fees 6,227 11,024 16,435
Shareholders' reports - printing and mailing expenses 20,290 30,982 35,695
Federal and state registration fees 2,902 7,354 2,895
Other expenses 3,954 7,805 2,757
-------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 589,711 1,176,300 1,354,098
Custodian fee credit (2,724) (9,610) (4,901)
Expense reimbursement -- (384,357) --
-------------------------------------------------------------------------------------------------------------------------------
Net expenses 586,987 782,333 1,349,197
-------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,648,091 7,241,342 8,591,941
-------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Investments
Net realized gain (loss) from investment transactions (614,210) (790,652) (1,184,102)
Net change in unrealized appreciation or depreciation of investments 5,429,045 8,909,114 12,094,773
-------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 4,814,835 8,118,462 10,910,671
-------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,462,926 $ 15,359,804 $ 19,502,612
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
New Jersey
----------------------------------------------
Six Months Ended Year Ended
8/31/00 2/29/00
-------------------------------------------------------------------------------------------------------------------------------
Operations
<S> <C> <C>
Net investment income $ 2,648,091 $ 5,674,144
Net realized gain (loss) from investment transactions (614,210) (442,612)
Net change in unrealized appreciation or depreciation of investments 5,429,045 (9,982,626)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 7,462,926 (4,751,094)
-------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From and in excess of net investment income:
Class A (1,116,574) (2,490,807)
Class B (283,071) (549,377)
Class C (222,711) (455,400)
Class R (1,003,335) (2,180,089)
From accumulated net realized gains from investment transactions:
Class A -- --
Class B -- --
Class C -- --
Class R -- --
-------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (2,625,691) (5,675,673)
-------------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 6,476,146 23,313,205
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 1,512,272 3,366,469
-------------------------------------------------------------------------------------------------------------------------------
7,988,418 26,679,674
Cost of shares redeemed (9,152,328) (27,406,311)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions (1,163,910) (726,637)
-------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 3,673,325 (11,153,404)
Net assets at the beginning of period 109,980,060 121,133,464
-------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $113,653,385 $109,980,060
===============================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 23,056 $ 656
===============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
Statement of Changes in Net Assets (Unaudited)(continued)
<TABLE>
<CAPTION>
New York New York Insured
-------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/00 2/29/00 8/31/00 2/29/00
Operations
<S> <C> <C> <C> <C>
Net investment income $ 7,241,342 $ 14,101,903 $ 8,591,941 $ 18,335,269
Net realized gain (loss) from investment transactions (790,652) (777,587) (1,184,102) (516,349)
Net change in unrealized appreciation or depreciation of investments 8,909,114 (19,650,813) 12,094,773 (26,997,720)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 15,359,804 (6,326,497) 19,502,612 (9,178,800)
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From and in excess of net investment income:
Class A (2,487,171) (4,361,271) (1,379,234) (2,744,482)
Class B (517,764) (757,621) (331,373) (682,606)
Class C (302,697) (452,805) (99,033) (194,703)
Class R (4,228,437) (8,347,109) (6,788,893) (14,463,882)
From accumulated net realized gains from investment transactions:
Class A -- (171,256) -- (21,641)
Class B -- (38,412) -- (6,843)
Class C -- (20,085) -- (1,774)
Class R -- (305,575) -- (105,965)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (7,536,069) (14,454,134) (8,598,533) (18,221,896)
------------------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
Net proceeds from sale of shares 24,453,113 51,408,121 9,833,368 31,304,562
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 4,325,018 8,466,145 5,722,061 12,335,565
------------------------------------------------------------------------------------------------------------------------------------
28,778,131 59,874,266 15,555,429 43,640,127
Cost of shares redeemed (17,671,435) (47,492,353) (26,964,407) (52,615,589)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions 11,106,696 12,381,913 (11,408,978) (8,975,462)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 18,930,431 (8,398,718) (504,899) (36,376,158)
Net assets at the beginning of period 250,338,215 258,736,933 335,353,664 371,729,822
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $269,268,646 $250,338,215 $334,848,765 $335,353,664
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (10,472) $ 284,255 $ 306,479 $ 313,071
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Multistate Trust II (the "Trust") is an open-end investment company
registered under the Investment Company Act of 1940, as amended. The Trust
comprises the Nuveen New Jersey Municipal Bond Fund ("New Jersey"), Nuveen New
York Municipal Bond Fund ("New York") and the Nuveen New York Insured Municipal
Bond Fund ("New York Insured") (collectively the "Funds"), among others. The
Trust was organized as a Massachusetts business trust on July 1, 1996.
Each Fund seeks to provide high tax-free income and preservation of capital
through investments in diversified portfolios of quality municipal bonds.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market 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 and general market
conditions. Temporary investments in securities that have variable rate and
demand features qualifying them as short-term securities are valued at amortized
cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
August 31, 2000, New York had outstanding when-issued purchase commitments
of$10,389,000. There were no such outstanding purchase commitments in either of
the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholders accounts on the first
business day after month-end. 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 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 accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, in addition to any significant amounts of net realized
capital gains and/or market discount from investment transactions. The Funds
currently consider significant net realized capital gains and/or market discount
as amounts in excess of $.001 per share. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal and designated state income taxes, to retain such
tax-exempt status when distributed to the shareholders of the Funds. Net
realized capital gains and market discount distributions are subject to federal
taxation.
30
<PAGE>
Insurance
New York Insured invests in municipal securities which are either covered by
insurance or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest. Each insured municipal security is covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance.
Such insurance does not guarantee the market value of the municipal securities
or the value of the Fund's shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in business, regardless of whether
the Fund ultimately disposes of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue Insurance or
Secondary Market Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal securities are held by
the Fund. Accordingly, neither the prices used in determining the market value
of the underlying municipal securities nor the net asset value of the Fund's
shares include value, if any, attributable to the Portfolio Insurance. Each
policy of the Portfolio Insurance does, however, give the Fund the right to
obtain permanent insurance with respect to the municipal security covered by the
Portfolio Insurance policy at the time of its sale.
Flexible Sales Charge Program
Each Fund offers Class A, B, C and R Shares. Class A Shares are sold with a
sales charge and incur an annual 12b-1 service fee. Class A Share purchases of
$1 million or more are sold at net asset value without an up-front sales charge
but may be subject to a contingent deferred sales charge ("CDSC") if redeemed
within 18 months of purchase. Class B Shares are sold without a sales charge but
incur annual 12b-1 distribution and service fees. An investor purchasing Class B
Shares agrees to pay a CDSC of up to 5% depending upon the length of time the
shares are held by the investor (CDSC is reduced to 0% at the end of six years).
Class B Shares convert to Class A Shares eight years after purchase. Class C
Shares are sold without a sales charge but incur annual 12b-1 distribution and
service fees. An investor purchasing Class C Shares agrees to pay a CDSC of 1%
if Class C Shares are redeemed within one year of purchase. Class R Shares are
not subject to any sales charge or 12b-1 distribution or service fees. Class R
Shares are available only under limited circumstances.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics including inverse floating rate securities. During
the six months ended August 31, 2000, the New York Fund invested in inverse
floating rate securities for the purpose of enhancing portfolio yield. Floating
rate securities are identified in the Portfolio of Investments and are marked to
market daily. The interest rate of an inverse floating rate security has an
inverse relationship to the interest rate of a short-term floating rate
security. Consequently, as the interest rate of the floating rate security
rises, the interest rate on the inverse floating rate security declines.
Conversely, as the interest rate of the floating rate security declines the
interest rate on the inverse floating rate security rises. The price of an
inverse floating rate security will be more volatile than that of a fixed rate
security since the interest rate is dependent on the general level of interest
rates as well as the short-term interest paid on the floating rate security. The
New Jersey and New York Insured Funds did not invest in any such securities
during the six months ended August 31, 2000.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares, which presently only
includes 12b-1 distribution and service fees, are recorded to the specific
class.
Custodian Fee Credit
Each Fund has an agreement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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.
31
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
2. Fund Shares
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
New Jersey
------------------------------------------------------------
Six Months Ended Year Ended
8/31/00 2/29/00
------------------------ ------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------------------------------
Shares sold:
<S> <C> <C> <C> <C>
Class A 357,032 $ 3,531,801 1,031,880 $ 10,382,720
Class B 96,568 956,198 613,401 6,270,631
Class C 90,038 884,951 360,453 3,684,927
Class R 110,854 1,103,196 293,764 2,974,927
Shares issued to shareholders due to
reinvestment of distributions:
Class A 60,188 593,851 132,266 1,345,915
Class B 10,957 108,015 24,234 245,622
Class C 11,956 117,609 22,706 229,919
Class R 70,230 692,797 151,879 1,545,013
-----------------------------------------------------------------------------------------------------------
807,823 7,988,418 2,630,583 26,679,674
-----------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (469,828) (4,611,616) (1,450,515) (14,400,959)
Class B (98,184) (968,633) (303,073) (3,009,282)
Class C (76,581) (757,534) (324,197) (3,273,108)
Class R (285,337) (2,814,545) (668,086) (6,722,962)
-----------------------------------------------------------------------------------------------------------
(929,930) (9,152,328) (2,745,871) (27,406,311)
-----------------------------------------------------------------------------------------------------------
Net increase (decrease) (122,107) $(1,163,910) (115,288) $ (726,637)
===========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
New York New York Insured
------------------------------------------------ --------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/00 2/29/00 8/31/00 2/29/00
-------------------- -------------------- -------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------------------------------------------------------------------------------------------------------------------------
Shares sold:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A 1,307,683 $ 13,470,095 2,790,883 $ 29,104,680 240,779 $ 2,429,129 1,496,280 $ 15,529,903
Class B 357,198 3,691,728 1,036,762 10,937,779 101,185 1,021,335 715,180 7,454,738
Class C 331,355 3,428,864 528,399 5,518,626 24,731 249,866 147,209 1,505,110
Class R 373,856 3,862,426 554,613 5,847,036 606,215 6,133,038 666,121 6,814,811
Shares issued to
shareholders due to
reinvestment of
distributions:
Class A 99,519 1,022,556 179,500 1,892,549 83,750 842,401 167,792 1,725,557
Class B 22,089 227,167 36,081 378,936 17,926 180,523 36,951 380,102
Class C 11,599 119,592 15,250 160,948 5,883 59,122 12,055 124,036
Class R 286,849 2,955,703 570,094 6,033,712 460,841 4,640,015 980,490 10,105,870
------------------------------------------------------------------------------------------------------------------------------------
2,790,148 28,778,131 5,711,582 59,874,266 1,541,310 15,555,429 4,222,078 43,640,127
------------------------------------------------------------------------------------------------------------------------------------
Shares redeemed:
Class A (722,968) (7,451,758) (2,221,619) (23,154,539) (489,430) (4,940,591) (1,085,766) (11,116,343)
Class B (323,621) (3,337,314) (224,929) (2,347,237) (229,002) (2,307,081) (401,249) (4,062,416)
Class C (66,577) (684,055) (327,306) (3,418,515) (73,140) (734,992) (76,265) (776,795)
Class R (600,990) (6,198,308) (1,770,315) (18,572,062) (1,884,552) (18,981,743) (3,589,069) (36,660,035)
------------------------------------------------------------------------------------------------------------------------------------
(1,714,156) (17,671,435) (4,544,169) (47,492,353) (2,676,124) (26,964,407) (5,152,349) (52,615,589)
------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) 1,075,992 $ 11,106,696 1,167,413 $ 12,381,913 (1,134,814) $(11,408,978) (930,271) $ (8,975,462)
====================================================================================================================================
</TABLE>
32
<PAGE>
3. Distributions to Shareholders
The Funds declared dividend distributions from their tax-exempt net investment
income which were paid October 2, 2000, to shareholders of record on September
8, 2000, as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
Dividend per share:
Class A $.0400 $.0500 $.0430
Class B .0335 .0435 .0365
Class C .0355 .0455 .0380
Class R .0415 .0520 .0445
--------------------------------------------------------------------------------
4. Securities Transactions
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended August
31, 2000, were as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $ 7,156,393 $ 45,994,683 $ 27,953,862
Short-term municipal securities -- 1,000,000 --
Sales and maturities:
Long-term municipal securities 8,134,059 28,588,463 41,425,411
Short-term municipal securities -- 1,000,000 --
--------------------------------------------------------------------------------
At August 31, 2000, the identified cost of investments owned for federal income
tax purposes were as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
$112,456,741 $262,024,506 $317,322,892
================================================================================
At February 29, 2000, the Funds' last fiscal year end, the Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
Expiration year:
2002 $ 256,350 $ -- $ --
2003 424,626 -- --
2004 116,050 -- --
2005 -- -- --
2006 238,550 -- --
2007 -- -- --
2008 132,876 778,471 405,215
--------------------------------------------------------------------------------
Total $1,168,452 $778,471 $405,215
================================================================================
5. Unrealized Appreciation (Depreciation)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at August 31, 2000, were as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
Gross unrealized:
appreciation $ 3,327,604 $12,529,583 $16,043,191
depreciation (2,660,895) (2,288,600) (1,625,564)
--------------------------------------------------------------------------------
Net unrealized appreciation $ 666,709 $10,240,983 $14,417,627
================================================================================
33
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
6. Management Fee and Other Transactions with Affiliates
Under the Trust's investment management agreement with the Adviser, each Fund
pays an annual management fee, payable monthly, at the rates set forth below
which are based upon the average daily net assets of each Fund as follows:
Average Daily Net Assets Management Fee
--------------------------------------------------------------------------------
For the first $125 million .5500 of 1%
For the next $125 million .5375 of 1
For the next $250 million .5250 of 1
For the next $500 million .5125 of 1
For the next $1 billion .5000 of 1
For net assets over $2 billion .4750 of 1
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Trust 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 Trust from the Adviser.
The adviser has agreed to waive part of its management fees or reimburse certain
expenses of New York and New York Insured in order to limit total expenses to
.75 of 1% of the average daily net assets of New York and .975 of 1% of the
average daily net assets of New York Insured, excluding any 12b-1 fees
applicable to Class A, B and C Shares. The adviser may also voluntarily agree to
reim- burse additional expenses in any of the Funds from time to time, which may
be terminated at any time at its discretion.
During the six months ended August 31, 2000, the Distributor collected sales
charges on purchases of Class A Shares, the majority of which were paid out as
concessions to authorized dealers as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
Sales charges collected $27,702 $52,056 $16,790
Paid to authorized dealers 24,130 52,056 16,790
================================================================================
The Distributor also received 12b-1 service fees on Class A Shares,
substantially all of which were paid to compensate authorized dealers for
providing services to shareholders relating to their investments.
During the six months ended August 31, 2000, the Distributor compensated
authorized dealers directly with commission advances at the time of purchase as
follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
Commission advances $41,703 $203,219 $40,237
================================================================================
To compensate for commissions advanced to authorized dealers, all 12b-1 service
fees collected on Class B Shares during the first year following a purchase, all
12b-1 fees collected on Class B and all 12b-1 service and distribution
distribution Shares, fees collected on Class C Shares during the first year
following a purchase are retained by the Distributor. During the six months
ended August 31, 2000, the Distributor retained such 12b-1 fees as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
12b-1 fees retained $68,531 $97,798 $65,360
================================================================================
The remaining 12b-1 fees charged to the Funds were paid to compensate authorized
dealers for providing services to shareholders relating to their investments.
The Distributor also collected and retained CDSC on share redemptions during the
six months ended August 31, 2000, as follows:
New York
New Jersey New York Insured
--------------------------------------------------------------------------------
CDSC retained $31,386 $86,265 $110,616
================================================================================
34
<PAGE>
7. Composition of Net Assets
At August 31, 2000, the Funds had an unlimited .01 par value shares authorized.
Net assets number of consisted of:
<TABLE>
<CAPTION>
New York
New Jersey New York Insured
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid-in $114,746,282 $260,607,258 $321,713,976
Undistributed (Over-distribution of) net investment 23,056 (10,472) 306,479
income
Accumulated net realized gain (loss) from (2,097,438) (1,569,123) (1,701,941)
investment transactions
Net unrealized appreciation of investments 981,485 10,240,983 14,530,251
-------------------------------------------------------------------------------------------------------------------
Net assets $113,653,385 $269,268,646 $334,848,765
===================================================================================================================
</TABLE>
35
<PAGE>
Financial Highlights(Unaudited)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Class (Inception Date)
Investment Operations Less Distributions
--------------------- ------------------
NEW JERSEY Net
Realized/
Unrealized
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Year Ended Asset ment Gain ment Capital Asset Total
February 28/29, Value Income (Loss) Total Income Gains Total Value Return (a)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)**
2001 (f) $ 9.73 $ .24 $ .43 $ .67 $ (.24) $ -- $ (.24) $ 10.16 6.96%
2000 10.60 .49 (.87) (.38) (.49) -- (.49) 9.73 (3.67)
1999 10.61 .53 (.01) .52 (.53) -- (.53) 10.60 5.00
1998 10.26 .55 .36 .91 (.56) -- (.56) 10.61 9.06
1997 (d) 10.22 .05 .04 .09 (.05) -- (.05) 10.26 .85
1997 (e) 10.40 .48 (.15) .33 (.51) -- (.51) 10.22 3.31
1996 (e) 9.73 .51 .69 1.20 (.53) -- (.53) 10.40 12.63
Class B (2/97)
2001 (f) 9.72 .20 .44 .64 (.20) -- (.20) 10.16 6.65
2000 10.60 .41 (.88) (.47) (.41) -- (.41) 9.72 (4.51)
1999 10.61 .45 (.01) .44 (.45) -- (.45) 10.60 4.23
1998 10.26 .48 .35 .83 (.48) -- (.48) 10.61 8.25
1997 (d) 10.22 .05 .03 .08 (.04) -- (.04) 10.26 .78
Class C (9/94)**
2001 (f) 9.70 .21 .43 .64 (.21) -- (.21) 10.13 6.69
2000 10.58 .43 (.88) (.45) (.43) -- (.43) 9.70 (4.29)
1999 10.59 .47 (.01) .46 (.47) -- (.47) 10.58 4.48
1998 10.25 .50 .34 .84 (.50) -- (.50) 10.59 8.40
1997 (d) 10.20 .04 .05 .09 (.04) -- (.04) 10.25 .90
1997 (e) 10.38 .41 (.16) .25 (.43) -- (.43) 10.20 2.53
1996 (e) 9.71 .44 .68 1.12 (.45) -- (.45) 10.38 11.80
Class R (12/91)**
2001 (f) 9.73 .25 .43 .68 (.25) -- (.25) 10.16 7.05
2000 10.60 .51 (.87) (.36) (.51) -- (.51) 9.73 (3.47)
1999 10.62 .55 (.02) .53 (.55) -- (.55) 10.60 5.13
1998 10.27 .58 .35 .93 (.58) -- (.58) 10.62 9.29
1997 (d) 10.23 .05 .04 .09 (.05) -- (.05) 10.27 .86
1997 (e) 10.41 .49 (.14) .35 (.53) -- (.53) 10.23 3.55
1996 (e) 9.74 .55 .68 1.23 (.56) -- (.56) 10.41 12.88
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement (b) Reimbursement (c)
----------------------- ------------------- --------------------
Ratio Ratio Ratio
of Net of Net of Net
NEW JERSEY Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Year Ended Assets Net Net Net Net Net Net Turnover
February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)**
2001 (f) $47,764 .98%* 4.82%* .98%* 4.82%* .98%* 4.82%* 7%
2000 46,235 .99 4.74 .93 4.80 .91 4.82 26
1999 53,442 1.02 4.62 .66 4.98 .66 4.98 10
1998 35,782 1.01 4.92 .60 5.33 .60 5.33 16
1997 (d) 27,879 1.01* 5.43* .55* 5.89* .55* 5.89* --
1997 (e) 17,072 1.13 4.85 1.00 4.98 1.00 4.98 10
1996 (e) 10,661 1.25 4.85 1.00 5.10 1.00 5.10 39
Class B (2/97)
2001 (f) 14,389 1.73* 4.07* 1.73* 4.07* 1.73* 4.07* 7
2000 13,681 1.74 4.01 1.69 4.06 1.67 4.08 26
1999 11,368 1.76 3.88 1.39 4.25 1.39 4.25 10
1998 2,981 1.77 4.16 1.36 4.57 1.36 4.57 16
1997 (d) 74 1.77* 5.71* 1.27* 6.21* 1.27* 6.21* --
Class C (9/94)**
2001 (f) 10,711 1.53* 4.27* 1.53* 4.27* 1.53* 4.27* 7
2000 10,007 1.54 4.20 1.48 4.26 1.47 4.27 26
1999 10,290 1.57 4.07 1.21 4.43 1.21 4.43 10
1998 5,733 1.56 4.37 1.16 4.77 1.16 4.77 16
1997 (d) 2,712 1.56* 4.89* 1.10* 5.35* 1.10* 5.35* --
1997 (e) 2,611 1.88 4.09 1.75 4.22 1.75 4.22 10
1996 (e) 1,065 1.96 4.16 1.75 4.37 1.75 4.37 39
Class R (12/91)**
2001 (f) 40,790 .78* 5.02* .78* 5.02* .78* 5.02* 7
2000 40,058 .79 4.94 .73 5.00 .71 5.02 26
1999 46,033 .82 4.82 .47 5.17 .47 5.17 10
1998 44,817 .81 5.12 .40 5.53 .40 5.53 16
1997 (d) 42,651 .81* 5.63* .35* 6.09* .35* 6.09* --
1997 (e) 42,905 .89 5.10 .75 5.24 .75 5.24 10
1996 (e) 43,304 .98 5.20 .75 5.43 .75 5.43 39
</TABLE>
* Annualized.
** Information included prior to the one month ended February 28, 1997,
reflects the financial highlights of the predecessor fund, Nuveen New
Jersey Tax-Free Value.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) For the one month ended February 28.
(e) For the fiscal year ended January 31.
(f) For the six months ended August 31, 2000.
See accompanying notes to financial statements.
---
36
<PAGE>
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Class (Inception Date)
Investment Operations Less Distributions
--------------------- ------------------
NEW YORK Net From
Realized/ and in
Unrealized Excess of
Beginning Net Invest- Net Ending
Net Invest- ment Invest- Net
Year Ended Asset ment Gain ment Capital Asset Total
February 28/29, Value Income (Loss) Total Income Gains Total Value Return (a)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)**
2001 (e) $ 10.17 $ .29 $ .32 $ .61 $ (.30) $ -- $ (.30) $10.48 6.08%
2000 11.03 .58 (.85) (.27) (.57) (.02) (.59) 10.17 (2.44)
1999 10.97 .55 .06 .61 (.55) -- (.55) 11.03 5.69
1998 10.53 .57 .44 1.01 (.57) -- (.57) 10.97 9.84
1997 10.61 .59 (.07) .52 (.56) (.04) (.60) 10.53 5.07
1996 10.12 .56 .48 1.04 (.55) -- (.55) 10.61 10.52
Class B (2/97)
2001 (e) 10.18 .25 .32 .57 (.26) -- (.26) 10.49 5.67
2000 11.04 .51 (.86) (.35) (.49) (.02) (.51) 10.18 (3.18)
1999 10.98 .47 .06 .53 (.47) -- (.47) 11.04 4.88
1998 10.53 .49 .45 .94 (.49) -- (.49) 10.98 9.10
1997 (d) 10.48 .05 .04 .09 (.04) -- (.04) 10.53 .87
Class C (9/94)**
2001 (e) 10.20 .26 .32 .58 (.27) -- (.27) 10.51 5.79
2000 11.06 .52 (.85) (.33) (.51) (.02) (.53) 10.20 (2.97)
1999 11.01 .49 .05 .54 (.49) -- (.49) 11.06 5.00
1998 10.56 .51 .45 .96 (.51) -- (.51) 11.01 9.31
1997 10.64 .55 (.11) .44 (.48) (.04) (.52) 10.56 4.31
1996 10.11 .48 .53 1.01 (.48) -- (.48) 10.64 10.13
Class R (12/86)**
2001 (e) 10.20 .30 .32 .62 (.31) -- (.31) 10.51 6.18
2000 11.06 .60 (.84) (.24) (.60) (.02) (.62) 10.20 (2.21)
1999 11.00 .58 .05 .63 (.57) -- (.57) 11.06 5.88
1998 10.55 .59 .45 1.04 (.59) -- (.59) 11.00 10.11
1997 10.64 .59 (.05) .54 (.59) (.04) (.63) 10.55 5.26
1996 10.15 .58 .49 1.07 (.58) -- (.58) 10.64 10.80
<CAPTION>
Class (Inception Date)
Ratios/Supplemental Data
-----------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement (b) Reimbursement (c)
------------------ ----------------- -----------------
Ratio Ratio Ratio
of Net of Net of Net
NEW YORK Invest- Invest- Invest-
Ratio of ment Ratio of ment Ratio of ment
Expenses Income Expenses Income Expenses Income
Ending to to to to to to
Net Average Average Average Average Average Average Portfolio
Year Ended Assets Net Net Net Net Net Net Turnover
February 28/29, (000) Assets Assets Assets Assets Assets Assets Rate
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)**
2001 (e) $ 91,528 .93%* 5.25%* .64%* 5.54%* .63%* 5.55%* 11%
2000 81,857 .89 5.21 .61 5.49 .60 5.50 19
1999 80,549 .94 4.88 .79 5.03 .79 5.03 28
1998 78,038 .90 5.14 .77 5.27 .77 5.27 30
1997 71,676 .95 5.39 .89 5.45 .89 5.45 37
1996 15,732 1.02 5.28 .99 5.31 .99 5.31 47
Class B (2/97)
2001 (e) 20,997 1.68* 4.50* 1.38* 4.79* 1.38* 4.80* 11
2000 19,803 1.64 4.50 1.33 4.81 1.32 4.82 19
1999 12,121 1.68 4.16 1.57 4.27 1.57 4.27 28
1998 4,311 1.67 4.32 1.50 4.49 1.50 4.49 30
1997 (d) 124 1.65* 5.86* 1.44* 6.07* 1.44* 6.07* 37
Class C (9/94)**
2001 (e) 13,596 1.48* 4.69* 1.19* 4.99* 1.18* 4.99* 11
2000 10,374 1.44 4.67 1.16 4.96 1.15 4.96 19
1999 8,858 1.49 4.34 1.35 4.47 1.35 4.47 28
1998 6,233 1.46 4.57 1.32 4.71 1.32 4.71 30
1997 3,965 1.64 4.73 1.57 4.80 1.57 4.80 37
1996 646 1.99 4.29 1.73 4.55 1.73 4.55 47
Class R (12/86)**
2001 (e) 143,148 .73* 5.45* .43* 5.75* .43* 5.76* 11
2000 138,303 .69 5.40 .42 5.67 .41 5.68 19
1999 157,209 .74 5.08 .59 5.23 .59 5.23 28
1998 160,142 .70 5.34 .57 5.47 .57 5.47 30
1997 152,598 .71 5.55 .69 5.57 .69 5.57 37
1996 154,776 .76 5.55 .74 5.57 .74 5.57 47
----------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Information included prior to the fiscal year ended February 28, 1997,
reflects the financial highlights of the predecessor fund, Nuveen New York
Tax-Free Value.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) From commencement of class operations as noted.
(e) For the six months ended August 31, 2000.
See accompanying notes to financial statements.
37
<PAGE>
Financial Highlights (Unaudited)(continued)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Investment Operations Less Distributions
----------------------------------- ---------------------------------
NEW YORK INSURED Net
Realized/ Ending
Beginning Net Unrealized Net Net
Year Ended Net Asset Investment Investment Investment Capital Asset Total
February 28/29, Value Income Gain (Loss) Total Income Gains Total Value Return(a)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (e) $ 9.95 $ .25 $ .34 $ .59 $(.26) $ -- $(.26) $10.28 5.96%
2000 10.73 .52 (.79) (.27) (.51) -- (.51) 9.95 (2.50)
1999 10.76 .51 .01 .52 (.52) (.03) (.55) 10.73 4.91
1998 10.50 .53 .26 .79 (.53) -- (.53) 10.76 7.76
1997 10.61 .55 (.14) .41 (.52) -- (.52) 10.50 4.02
1996 10.15 .52 .49 1.01 (.52) (.03)** (.55) 10.61 10.19
Class B (2/97)
2001 (e) 9.96 .22 .33 .55 (.22) -- (.22) 10.29 5.55
2000 10.74 .44 (.79) (.35) (.43) -- (.43) 9.96 (3.26)
1999 10.76 .44 -- .44 (.43) (.03) (.46) 10.74 4.19
1998 10.50 .45 .26 .71 (.45) -- (.45) 10.76 6.96
1997 (d) 10.53 .03 (.02) .01 (.04) -- (.04) 10.50 .07
Class C (9/94)
2001 (e) 9.94 .23 .33 .56 (.23) -- (.23) 10.27 5.65
2000 10.73 .46 (.80) (.34) (.45) -- (.45) 9.94 (3.17)
1999 10.74 .46 .02 .48 (.46) (.03) (.49) 10.73 4.53
1998 10.48 .47 .26 .73 (.47) -- (.47) 10.74 7.16
1997 10.61 .47 (.16) .31 (.44) -- (.44) 10.48 3.06
1996 10.12 .44 .53 .97 (.45) (.03)** (.48) 10.61 9.71
Class R (12/86)
2001 (e) 9.95 .27 .34 .61 (.27) -- (.27) 10.29 6.15
2000 10.74 .54 (.80) (.26) (.53) -- (.53) 9.95 (2.43)
1999 10.76 .53 .02 .55 (.54) (.03) (.57) 10.74 5.18
1998 10.49 .55 .27 .82 (.55) -- (.55) 10.76 8.04
1997 10.61 .55 (.13) .42 (.54) -- (.54) 10.49 4.15
1996 10.15 .55 .49 1.04 (.55) (.03)** (.58) 10.61 10.51
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Reimbursement(b) After Credit/Reimbursement(c)
--------------------------- ------------------------- -----------------------------
NEW YORK INSURED Ratio Ratio Ratio
of Net of Net of Net
Ending Ratio of Investment Ratio of Investment Ratio of Investment
Net Expenses Income Expenses Income Expenses Income Portfolio
Year Ended Assets to Average to Average to Average to Average to Average to Average Turnover
February 28/29, (000) Net Assets Net Assets Net Assets Net Assets Net Assets Net Assets Rate
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (9/94)
2001 (e) $ 54,475 .92%* 5.01%* .92%* 5.01%* .92%* 5.02%* 8%
2000 54,364 .90 5.02 .90 5.02 .90 5.02 16
1999 52,448 .92 4.78 .92 4.78 .92 4.78 16
1998 44,721 .88 4.98 .88 4.98 .88 4.98 17
1997 35,957 .92 5.04 .92 5.04 .92 5.04 29
1996 24,747 .93 4.97 .93 4.97 .93 4.97 17
Class B (2/97)
2001 (e) 15,292 1.67* 4.27* 1.67* 4.27* 1.67* 4.27* 8
2000 15,893 1.65 4.28 1.65 4.28 1.65 4.28 16
1999 13,374 1.67 4.04 1.67 4.04 1.67 4.04 16
1998 5,982 1.65 4.24 1.65 4.24 1.65 4.24 17
1997 (d) 1,279 1.64* 5.17* 1.64* 5.17* 1.64* 5.17* 29
Class C (9/94)
2001 (e) 4,345 1.47* 4.47* 1.47* 4.47* 1.47* 4.47* 8
2000 4,627 1.45 4.48 1.45 4.48 1.45 4.48 16
1999 4,103 1.47 4.25 1.47 4.25 1.47 4.25 16
1998 2,310 1.43 4.43 1.43 4.43 1.43 4.43 17
1997 2,015 1.67 4.28 1.67 4.28 1.67 4.28 29
1996 1,369 1.69 4.21 1.69 4.21 1.69 4.21 17
Class R (12/86)
2001 (e) 260,737 .72* 5.22* .72* 5.22* .72* 5.22* 8
2000 260,469 .70 5.21 .70 5.21 .70 5.21 16
1999 301,805 .72 4.97 .72 4.97 .72 4.98 16
1998 313,647 .68 5.18 .68 5.18 .68 5.18 17
1997 319,208 .68 5.28 .68 5.28 .68 5.28 29
1996 343,348 .67 5.26 .67 5.26 .67 5.26 17
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** The amounts shown include distributions in excess of capital gains of
$.0024 per share.
(a) Total returns are calculated on net asset value without any sales charge
and are not annualized.
(b) After expense reimbursement from the investment adviser, where applicable.
(c) After custodian fee credit and expense reimbursement, where applicable.
(d) From commencement of class operations as noted.
(e) For the six months ended August 31, 2000.
See accompanying notes to financial statements.
-------
38
<PAGE>
Notes
39
<PAGE>
Notes
40
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and
Shareholder Services
Chase Global Funds Services
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public
Accountants
Arthur Andersen LLP
Chicago, IL
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and their
associated persons in response to either telephone inquiries at (800) 289-9999
or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an
investor brochure that includes information describing the Public Disclosure
Program.
41
<PAGE>
Serving
Investors
For Generations
A 100-Year Tradition of Quality Investments
[PHOTO OF JOHN NUVEEN, SR.]
John Nuveen, Sr.
Since 1898, Nuveen Investments has been synonymous with investments that
withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Advisor Today
To find out how Nuveen Mutual Funds might round out your investment portfolio,
contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more
information. Ask your advisor or call for a prospectus, which details risks,
fees and expenses. Please read the prospectus carefully before you invest.
NUVEEN
INVESTMENTS
Nuveen Investments
333 West Wacker Drive
Chicago, Illinois 60606-1286
www.nuveen.com
