<PAGE>
August 31, 1999 Semiannual Report
NUVEEN
Mutual Funds
Extraordinary Talent. Masterful Performance.
Nuveen Money Market Fund
[PHOTO APPEARS HERE]
For investors
seeking income,
stability and liquidity
in a flexible cash
management
investment.
Featuring Portfolio Management By Nuveen Investment Advisory Services
A Premier Adviser/SM/ for Income Investing
<PAGE>
Contents
1 Dear Shareholder
3 Nuveen Money Market Fund Spotlight
4 Portfolio of Investments
6 Statement of Net Assets
6 Statement of Operations
7 Statement of Changes in Net Assets
8 Notes to Financial Statements
11 Financial Highlights
12 Building a Better Portfolio
13 Fund Information
<PAGE>
DEAR
Shareholder
Welcome to the first semiannual report for Nuveen Money Market Fund. Whether
you're new to the Nuveen family or following your financial adviser's advice to
allocate some of your assets into our cash management vehicles, we're happy to
be able to serve you.
Recent volatility in the markets highlights the importance of maintaining
balance in your investment portfolio. A flexible cash management investment as
part of a properly balanced portfolio including equities and bonds can help you
ride the markets' ups and downs. We encourage you to discuss with your financial
adviser whether your current asset allocation plan needs adjusting at this time.
Happy New Year! At this writing, we're just a couple of months away from the
much-talked-about millennium. Besides trying to decide where we want to be when
the clock strikes midnight, this whole event puts the concept of time in front
of us all. We think: "Where did the time go?"
We think about how old, 25 years ago, we thought we would be when the
calendar turned January 1, 2000. (And we realize, now, it is really not that old
at all.) We think about all the things we wanted to have accomplished before
1999 became 2000.
Most likely, one of your millennium goals was financial. Whether it was to
fully fund your retirement accounts or set up trusts for your grandchildren, the
fact you're working with a financial adviser and reading this report are
positive signs that you're well on your way to achieving your goal.
I'm pleased to report we're meeting our goals, too. In addition to the goals we
have established for each mutual fund we manage, we have set goals in
preparation for the millennium.
As you have probably heard, the year 2000, or Y2K, problem stems from
concerns that computers and other date-sensitive systems could malfunction or
stop before, on, or after January 1, 2000. Many older systems use a two-digit
number to represent a year. To a computer, "00" may mean the year 1900 instead
of 2000. If this were to happen, some computers might shut down or not work
correctly.
All efforts to safeguard critical systems are right on schedule at Nuveen.
It's a goal we set more than 10 years ago. Nuveen's trading, fund management and
pricing -- systems that affect you and your investments -- have been updated or
replaced to be able to deal accurately with Y2K.
We continue to work closely with our service providers, transfer agent,
custodian and trustee to monitor the readiness of their systems, as well as
address any remaining internal systems issues. We expect January 3, 2000, the
first business day of the year, to be "business as usual."
[PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
Chairman of the Board
"All efforts to
safeguard critical
systems are right
on schedule
at Nuveen."
SEMIANNUAL REPORT page 1
<PAGE>
The Securities and Exchange Commission (SEC), which oversees the securities
industry, is also taking significant steps to help the financial industry make a
smooth transition to the Y2K. First, the SEC is requiring all public companies,
investment advisers, investment companies and municipal securities issuers to
disclose their ability to comply with the Y2K issue.
In addition, the SEC mandated that tests be conducted on various financial
systems to test the ability of exchanges and broker/dealer firms to handle
transactions effectively. We participated successfully in those tests.
Still, it's always a good idea to keep good records of all your financial
business. Keep copies of all your fourth quarter 1999 bank and investment
account statements, bill payment records, credit card statements and other
financial records, insurance policies and social security records. Compare them
with statements issued after the new year begins.
While we cannot anticipate all possibilities, our systems are in place, and
we look forward to helping you achieve your financial goals in the new
millennium.
Performance Review
While Nuveen Money Market Fund opened in only June of this year, I will
give a brief economic overview of the past 12 months.
Over the past 12 months, the U.S. economy has been characterized by robust
growth, generally low interest rates and unemployment levels that remain among
the lowest in three decades.
Concerns, however, about the continued pace of the economy's expansion have
tested the new paradigm that holds that improvements in productivity enable us
to have both economic growth and low inflation at the same time. With investors
and the various markets watching -- and reacting to -- every announcement
concerning economic statistics, volatility has increased, especially in the
equity markets.
We have entered a different economic environment from that of 12 months
ago. This shift has occurred in response to two factors:
. the Asian financial crisis of 1998 did not produce the slowdown that was
widely expected to keep economic growth from becoming overly robust;
. evidence of accelerating prices, most obvious in the spikes in the April
and September 1999 Consumer Price Index, contributed to the reemergence
of the specter of inflation, accompanied by predictions of higher
interest rates.
In an effort to preempt this inflation threat, the Federal Reserve has
twice moved to raise the federal funds rate by a quarter-point -- to 5.25% --
since the end of June. And in its October meeting, the group adopted a bias to
tighten, although it took no action at that time. The upward adjustments to this
rate, which represents the amount banks charge one another on overnight loans,
mark the first increases since March 1997 and stand in sharp contrast to the
three reductions made last fall.
Your fund's assets are invested in a diversified portfolio of high-quality
money market instruments that the management team believes present minimal
credit risks. As of August 31, 1999, the fund offered investors a seven-day
yield of 3.14%. Please see the Fund Spotlight, below, for more information.
SEMIANNUAL REPORT page 2
<PAGE>
In Closing
Since 1898, Nuveen has been synonymous with investments that stand the test
of time. As we look ahead to a new millennium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
For more information on any Nuveen investment, including a prospectus,
contact your financial adviser, call Nuveen at (800) 621-7227, or download a
prospectus from our Internet site at www.nuveen.com. Please read the prospectus
carefully before you invest or send money.
Sincerely,
/s/ Timothy R. Schwertfeger
- ---------------------------
Timothy R. Schwertfeger
Chairman of the Board
October 18, 1999
- --------------------------------------------------------------------------------
NUVEEN MONEY MARKET FUND
Fund Spotlight as of August 31, 1999
Portfolio Statistics
Inception Date 6/99
- -------------------------------------
Net Assets $3.2 million
- -------------------------------------
Average Weighted Maturity 16.34 days
- -------------------------------------
Yields
SEC 7-Day Yield 3.14%
- -------------------------------------
SEC 30-Day Yield 4.25%
- -------------------------------------
Diversification (as a % of market value)
Financials 17%
- ----------------------------------------
Technology 13%
- ----------------------------------------
Telecommunications 13%
- ----------------------------------------
Capital Goods 10%
- ----------------------------------------
Utilities 10%
- ----------------------------------------
Health Care 7%
- ----------------------------------------
Tax Obligation (General) 7%
- ----------------------------------------
Basic Materials 5%
- ----------------------------------------
Consumer Cyclicals 3%
- ----------------------------------------
Consumer Staples 3%
- ----------------------------------------
Education and Civic Organizations 3%
- ----------------------------------------
Energy 3%
- ----------------------------------------
Industrial/Other 3%
- ----------------------------------------
Long-Term Care 3%
- ----------------------------------------
Nuveen is dedicated to providing investors access to a team of highly
experienced investment managers, each overseeing portfolios within their
specific areas of expertise. We call them Premier Advisers/SM/ -- a select group
of asset management firms who direct the investment activities of the Nuveen
Mutual Funds. Nuveen has chosen them for their rigorously disciplined investment
approaches and their focus on consistent long-term performance.
Drawing on decades of experience and specialized knowledge, these skilled asset
managers have earned reputations for excellence in their fields of expertise,
whether it is blue-chip growth stocks, large-cap value stocks, bonds or
international securities.
Nuveen's Premier Adviser/SM/ for income investing is Nuveen Investment Advisory
Services (NIAS). NIAS follows a disciplined, research-driven investment approach
to uncover income securities that combine exceptional relative value with above-
average return potential. Averaging 10 years of experience through the market's
peaks and valleys, the Nuveen team of portfolio managers and research analysts
offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence and trading leverage of a market leader.
Terms To Know
SEC Yield A standardized calculation that the Securities and Exchange
Commission requires mutual funds to use when advertising rates of income return.
This standardized rate ensures that investors are comparing "apples to apples"
when comparing advertisements from different mutual fund companies.
SEMIANNUAL REPORT page 3
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Money Market Fund
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAXABLE MUNICIPAL BONDS - 25.2%
Alabama - 3.2%
$ 100,000 Birmingham Special Care Facilities Financing Authority, Health Care Facilities A-1+ $ 100,000
Revenue, Eye Foundation Hospital, 1998 Series B, Variable Rate Demand Bonds,
5.350%, 9/01/18+
- -----------------------------------------------------------------------------------------------------------------------------------
Georgia - 3.2%
100,000 Adel Industrial Development Authority (Georgia), Industrial Development Revenue VMIG-1 100,000
(Speciality Stampings LLC Project), Series 1999A, Variable Rate Demand Bonds,
5.400%, 6/01/14+
- -----------------------------------------------------------------------------------------------------------------------------------
Illinois - 3.2%
100,000 City of Chicago, Illlinois, General Obligation Tender Bonds, Series 1996A, VMIG-1 100,000
Variable Rate Demand Bonds, 5.400%, 1/01/01+
- -----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.2%
100,000 Massachusetts Development Finance Authority, First Mortgage Revenue Bonds, VMIG-1 100,000
Series 1998D (Lasell Village Project), Variable Rate Demand Bonds, 5.350%, 12/01/08+
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.2%
100,000 New Jersey Economic Development Authority, Greater Mercer County Composite VMIG-1 100,000
Issue, Series 1996 D2, Variable Rate Demand Bonds, 5.500%, 11/01/06+
- -----------------------------------------------------------------------------------------------------------------------------------
New York - 6.0%
100,000 Montgomery County Industrial Development Agency (New York), Taxable Industrial A-1+ 100,000
Development Revenue Bonds (Central National Bank Project - Letter of Credit Secured),
Series 1996A, Variable Rate Demand Bonds, 5.500%, 5/01/25+
100,000 Qswego County Industrial Development Agency (New York), Civic Facility Revenue Bonds, N/R 100,000
Series 1998B (O.H. Properties), Variable Rate Demand Bonds, 5.400%, 6/01/24+
- -----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 3.2%
100,000 State of Tennessee, General Obligation Bonds, Anticipation Notes, Series 1998B, Variable VMIG-1 100,000
Rate Demand Bonds, 5.350%, 7/02/01+
- -----------------------------------------------------------------------------------------------------------------------------------
$ 800,000 Total Municipal Bonds 800,000
===========------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSITS - 1.6%
$ 50,000 MBNA America Bank, N.A., 5.400%, 6/16/00 N/R 49,792
===========------------------------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 69.2%
$ 100,000 Allmerica Financial Corporation, 0.000%, 9/14/99 A-1 99,815
150,000 American Telephone and Telegraph, 0.000%, 9/29/99 A-1+ 149,388
100,000 Bell Atlantic Network Funding Corporation, 0.000%, 9/08/99 A-1 99,899
150,000 BellSouth Telephone Company, 0.000%, 9/22/99 A-1+ 149,540
100,000 Cleco Corporation, 0.000%, 9/10/99 A-1 99,868
100,000 Chevron Oil Finance Company, 0.000%, 9/15/99 A-1+ 99,797
100,000 Coca-Cola Company, 0.000%, 9/17/99 A-1+ 99,775
100,000 Commonwealth Edison Company, 0.000%, 9/01/99 A-2 100,000
100,000 Eastman Kodak Company, 0.000%, 9/14/99 A-1 99,817
100,000 Florida Power Corporation, 0.000%, 9/01/99 A-1+ 100,000
100,000 Ford Motor Credit Company, 0.000%, 9/01/99 A-1 100,000
100,000 General Electric Company, 0.000%, 9/01/99 A-1+ 100,000
150,000 Hewlett-Packard Corporation, 0.000%, 9/28/99 A-1 149,406
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 150,000 ING America Insurance Holdings Inc., 0.000%, 9/17/99 A-1+ $ 149,648
100,000 Illinois Tool Works, 0.000%, 9/14/99 A-1+ 99,808
150,000 International Business Machines Inc., 0.000%, 9/30/99 A-1 149,365
100,000 Island Finance Puerto Rico Inc., 0.000%, 10/06/99 A-1 99,490
150,000 Nalco Chemical Company, 0.000%, 9/03/99 A-1 149,956
100,000 University of Chicago, 0.000%, 9/16/99 A-1+ 99,780
- -------------------------------------------------------------------------------------------------
$ 2,200,000 Total Commercial Paper 2,195,352
===========--------------------------------------------------------------------------------------
$ 3,050,000 Total Investments - 96.0% 3,045,144
===========--------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.0% 127,018
----------------------------------------------------------------------------------
Net Assets - 100% $3,172,162
==================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The 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.
5
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 1999
<TABLE>
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments in short-term securities, at amortized cost, which approximates market value (note 1) $3,045,144
Cash 136,084
Receivables:
Interest 4,455
Fund manager (note 4) 1,451
- -----------------------------------------------------------------------------------------------------------------
Total assets 3,187,134
- -----------------------------------------------------------------------------------------------------------------
Liabilities
Accrued expenses:
12b-1 fees (note 1) 179
Other 6,732
Dividends payable 8,061
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 14,972
- -----------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding (note 5) $3,172,162
=================================================================================================================
Shares outstanding:
Class A 1,095,598
Class B 25,000
Class C 25,000
Class R 2,026,564
- -----------------------------------------------------------------------------------------------------------------
Total shares outstanding 3,172,162
=================================================================================================================
Net asset value, offering and redemption price per share (net assets divided by shares outstanding) $1.00
=================================================================================================================
</TABLE>
Statement of Operations (Unaudited)
From the period June 10, 1999 (commencement of operations) through August 31,
1999
<TABLE>
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income (note 1) $ 24,771
- -----------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 2,235
12b-1 service fees - Class A (note 1) 79
12b-1 distribution and service fees - Class B (note 1) 56
12b-1 distribution and service fees - Class C (note 1) 56
Shareholders' servicing agent fees and expenses 132
Custodian's fees and expenses 2,117
Trustees' fees and expenses (note 4) 22
Professional fees 2,314
Shareholders' reports - printing and mailing expenses 1,579
Federal and state registration fees 2,248
- -----------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 10,838
Custodian fee credit (note 1) (994)
Expense reimbursement (note 4) (6,424)
- -----------------------------------------------------------------------------------------------------------------
Net expenses 3,420
- -----------------------------------------------------------------------------------------------------------------
Net investment income 21,351
Net gain from investment transactions (notes 1 and 3) --
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 21,351
=================================================================================================================
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
Statement of Changes in Net Assets (Unaudited)
From the period June 10, 1999 (commencement of operations) through August 31,
1999
<TABLE>
- ---------------------------------------------------------------------------------------------------
<S> <C>
Operations
Net investment income $ 21,351
Net realized gain from investment transactions (notes 1 and 3) --
- ---------------------------------------------------------------------------------------------------
Net increase in net assets from operations 21,351
- ---------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (21,351)
- ---------------------------------------------------------------------------------------------------
Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 3,081,544
Net proceeds from shares issued to shareholders due to reinvestment of distributions 179
- ---------------------------------------------------------------------------------------------------
3,081,723
Cost of shares redeemed (9,561)
- ---------------------------------------------------------------------------------------------------
Net increase in net assets from share transactions 3,072,162
Net assets at the beginning of period 100,000
- ---------------------------------------------------------------------------------------------------
Net assets at the end of period $3,172,162
===================================================================================================
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Money Market Fund (the "Fund") is a series of the Nuveen Money Market
Trust (the "Trust") which was organized as a Massachusetts business Trust on
January 15, 1999. The Trust (and each series within the Trust) is an open-end,
diversified management investment company registered under the Investment
Company Act of 1940.
The Fund invests substantially all of its assets in a diversified portfolio of
high quality money market instruments for current income, the stability of
principal and the maintenance of liquidity.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with generally
accepted accounting principles.
Securities Valuation
The Fund invests in short-term securities maturing within one year from the date
of acquisition. Securities with a maturity of more than one year in all cases
have variable rate and demand features qualifying them as short-term securities
and are valued at amortized cost. On a dollar-weighted basis, the average
maturity of all such securities must be 90 days or less (at August 31, 1999, the
dollar-weighted average life was 16 days).
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 Fund has 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, 1999, the Fund had no such outstanding purchase commitments.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend to shareholders of record as of
the close of each business day and payment is made or reinvestment is credited
to shareholder accounts after month-end. Net realized capital gains from
investment transactions, if any, are declared and distributed to shareholders in
December. Furthermore, capital gains are distributed only to the extent they
exceed available capital loss carryforwards.
Federal Income Taxes
The Fund intends to distribute all net ordinary taxable income and net realized
capital gains from investment transactions, if any, and to otherwise comply with
the requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies. Therefore, no federal tax provision is required.
Flexible Sales Charge Program
The Fund offers Class A, B, C and R Shares. Class A Shares incur an annual 12b-1
service fee and under limited circumstances may be subject to a contingent
deferred sales charge ("CDSC"). Class B Shares 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 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 shareholders.
Insurance
The Fund has purchased liability insurance to protect against a decline in the
value of securities held in the Fund's portfolio caused by the default of
securities owned by the Fund. The insurance covers substantially all of the
Fund's investments except U.S. government securities. The maximum total coverage
for all Nuveen money market funds is $50 million, with certain deductibles for
each loss. The Fund pays the policy premiums. Coverage under the policy is
subject to certain conditions and may not be renewable upon expiration. While
the policy is intended to provide some protection against credit risk and to
help the Fund maintain a constant price per share of $1.00, there is no
guarantee that the insurance will do so.
8
<PAGE>
Derivative Financial Instruments
The Fund may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Fund is authorized to invest in such
financial instruments, and may do so in the future, it did not make any such
investments during the period June 10, 1999 (commencement of operations) through
August 31, 1999.
Custodian Fee Credit
The Fund has an agreement with the custodian bank whereby the custodian fees and
expenses are reduced by credits earned on the Fund's cash on deposit with the
bank. Such deposit arrangements are an alternative to overnight investments.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
2. Fund Shares
<TABLE>
<S> <C>
Transactions in Fund shares were as follows:
- ---------------------------------------------------------------------------------
Shares sold:
Class A $1,078,419
Class B --
Class C --
Class R 2,003,125
Shares issued to shareholders due to reinvestment of distributions:
Class A 179
Class B --
Class C --
Class R --
- ---------------------------------------------------------------------------------
3,081,723
- ---------------------------------------------------------------------------------
Shares redeemed:
Class A (8,000)
Class B --
Class C --
Class R (1,561)
- ---------------------------------------------------------------------------------
(9,561)
- ---------------------------------------------------------------------------------
Net increase $3,072,162
=================================================================================
</TABLE>
3. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
securities during the period June 10, 1999 (commencement of operations) through
August 31, 1999, aggregated $6,529,431 and $3,500,000, respectively.
At August 31, 1999, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes.
4. Management Fee and Other Transactions with Affiliates
Under the Fund's investment management agreement with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, the Fund pays
an annual management fee, payable monthly, which is based upon the average daily
net assets of the Fund as follows:
<TABLE>
<CAPTION>
Average Daily Net Assets Management Fee
- --------------------------------------------------------------------------------
<S> <C>
For the first $125 million .4500 of 1%
For the next $125 million .4375 of 1
For the next $250 million .4250 of 1
For the next $500 million .4125 of 1
For the next $1 billion .4000 of 1
For assets over $2 billion .3750 of 1
================================================================================
</TABLE>
The management fee is reduced by, or the Adviser assumes certain Fund expenses
in an amount necessary to prevent the Fund's total operating expenses (including
the management fee, but excluding interest, taxes, fees incurred in acquiring
and disposing of portfolio securities, any 12b-1 distribution or service fees
and, to the extent permitted, extraordinary expenses) from exceeding .65 of 1%
of the average daily net assets of the Fund. The Adviser may modify or
discontinue these waivers and reimbursements at any time.
9
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Fund pays no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its officers, all of whom receive remuneration for their services
to the Fund from the Adviser or its affiliates.
5. Composition of Net Assets
At August 31, 1999, the Fund had an unlimited number of $.01 par value stock
authorized. Net assets consisted of $3,172,162 paid-in capital.
6. Investment Composition
At August 31, 1999, the revenue sources by purpose, expressed as a percent of
total investments, were as follows:
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------
Basic Materials 5%
Capital Goods 10
Consumer Cyclicals 3
Consumer Staples 3
Education and Civic Organizations 3
Energy 3
Financials 17
Health Care 7
Industrial/Other 3
Long-Term Care 3
Telecommunications 13
Tax Obligation/General 7
Technology 13
Utilities 10
- -----------------------------------------------------------------------------
100%
=============================================================================
</TABLE>
For additional information regarding each investment security, refer to the
Portfolio of Investments.
10
<PAGE>
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout the period
June 10, 1999 (commencement of operations) through August 31, 1999:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
----------------------------------------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Expenses Income Expenses Income to
to Average to Average to Average Average
Less Net Assets Net Assets Net Assets Net Assets
Beginning Distributions Before Before After After
Net Net from Net Ending Ending Credit/ Credit/ Credit/ Credit/
Year Ended Asset Investment Investment Net Asset Total Net Assets Reimburse- Reimburse- Reimburse- Reimburse-
February 28/29, Value Income Income Value Return (000) ment ment ment (a) ment (a)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (6/99)
2000 (b) $1.00 $.01 $(.01) $1.00 .93% $1,096 2.15%* 2.21%* .90%* 3.46%*
Class B (6/99)
2000 (b) 1.00 .01 (.01) 1.00 .76 25 3.15* 1.88* 1.65* 3.38*
Class C (6/99)
2000 (b) 1.00 .01 (.01) 1.00 .76 25 3.15* 1.88* 1.65* 3.38*
Class R (6/99)
2000 (b) 1.00 .01 (.01) 1.00 .98 2,027 2.15* 2.87* .65* 4.37*
====================================================================================================================================
</TABLE>
* Annualized.
(a) After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 4).
(b) For the period June 10, 1999 (commencement of operations) through August 31,
1999.
11
<PAGE>
Building a Better Portfolio
Can Make You a Successful Investor
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth
Nuveen Rittenhouse Growth Fund
Growth and Income
European Value Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
Dividend and Growth Fund
Income
Income Fund
Tax-Free Income
National Funds
Long-Term
Insured
Intermediate-Term
Limited-Term
State Funds
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
Wisconsin
Successful investors know that a well-diversified portfolio - one that balances
different types of investments, levels of risk and tax management - can be the
foundation for building and sustaining wealth. That's why Nuveen offers you
and your financial adviser a wide range of quality investments that can help
you build a better portfolio in the pursuit of your financial goals.
Mutual Funds
Nuveen offers a family of equity, balanced and municipal bond funds featuring
Premier Advisers/SM/ including Institutional Capital Corporation, Rittenhouse
Financial Services, and Nuveen Advisory Corp. Each brings a specialized
expertise in a particular investment style or asset class, time-tested
investment strategies and a focus on consistent, long-term performance. With
Nuveen's Premier Adviser funds, you have all the advantages of a family of funds
plus the benefits of specialized investment expertise.
Private Asset Management
Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
Defined Portfolios
Nuveen Defined Portfolios are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, while also offering
experienced, professional security selection and surveillance. In addition,
Nuveen Defined Portfolios provide daily liquidity at that day's net asset value
for quick access to your assets.
Exchange-Traded Funds
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
quality municipal bonds. The fund shares are listed and traded on the New York
and American stock exchanges. Exchange-traded funds provide the investment
convenience, price visibility and liquidity of common stocks.
MuniPreferred(R)
Nuveen MuniPreferred offers investors a AAA rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
12
<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 Fund Services Company
P.O. Box 5186
New York, NY 10274
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
13
<PAGE>
SERVING
Investors for Generations
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to
disciplined long-term investment strategies whose aim is to provide consistent,
competitive performance over time -- with moderated risk. We emphasize quality
securities carefully chosen through in-depth research, and we follow those
securities closely over time to ensure that they continue to meet our exacting
standards.
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. Our growth,
growth and income, income, and tax-free funds, along with our defined portfolios
and private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
John Nuveen, Sr.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
MSA-MM-8-99
<PAGE>
August 31, 1999 Semiannual Report
[NUVEEN LOGO]
Mutual Funds
Extraordinary Talent. Masterful Performance.
Nuveen Institutional Tax-Exempt
Money Market Fund
[PHOTO APPEARS HERE]
For investors seeking tax-free income, stability and liquidity in a flexible
cash management investment.
Featuring Portfolio Management By Nuveen Investment Advisory Services
A Premier Adviser/SM/ for Income Investing
<PAGE>
Contents
1 Dear Shareholder
3 Nuveen Institutional Tax-Exempt
Money Market Fund Spotlight
4 Portfolio of Investments
8 Statement of Net Assets
8 Statement of Operations
9 Statement of Changes in Net Assets
10 Notes to Financial Statements
13 Financial Highlights
<PAGE>
DEAR
Shareholder
At this writing, we're just a couple of months away from the much-talked-about
millennium. Besides trying to decide where we want to be when the clock strikes
midnight, this whole event puts the concept of time in front of us all. We
think: "Where did the time go?"
We think about how old, 25 years ago, we thought we would be when the calendar
turned January 1, 2000. (And we realize, now, it is really not that old at all.)
We think about all the things we wanted to have accomplished before 1999 became
2000.
Most likely, one of your millennium goals was financial. Whether it was to fully
fund your retirement accounts or set up trusts for your grandchildren, the fact
you're working with a financial adviser and reading this report are positive
signs that you're well on your way to achieving your goal.
I'm pleased to report we're meeting our goals, too. In addition to the goals we
have established for each mutual fund we manage, we have set goals in
preparation for the millennium.
As you have probably already heard, the year 2000, or Y2K, problem stems
from concerns that computers and other date-sensitive systems could malfunction
or stop before, on, or after January 1, 2000. Many older systems use a two-digit
number to represent a year. To a computer, "00" may mean the year 1900 instead
of 2000. If this were to happen, some computers might shut down or not work
correctly.
All efforts to safeguard critical systems are right on schedule at Nuveen.
It's a goal we set more than 10 years ago. Nuveen's trading, fund management and
pricing -- systems that affect you and your investments -- have been updated or
replaced to be able to deal accurately with Y2K.
We continue to work closely with our service providers, transfer agent,
custodian and trustee to monitor the readiness of their systems, as well as
address any remaining internal systems issues. We expect January 3, 2000, the
first business day of the year, to be "business as usual."
The Securities and Exchange Commission (SEC), which oversees the securities
industry, is also taking significant steps to help the financial industry make a
smooth transition to the Y2K. First, the SEC is requiring all public companies,
investment advisers, investment companies and municipal securities issuers to
disclose their ability to comply with the Y2K issue.
In addition, the SEC mandated that tests be conducted on various financial
systems to test the ability of exchanges and broker/dealer firms to handle
transactions effectively. We participated successfully in those tests.
Still, it's always a good idea to keep good records of all your financial
business. Keep copies of all your fourth quarter 1999 bank and investment
account statements, bill payment
[PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
Chairman of the Board
"All efforts to safeguard critical systems are right on schedule at Nuveen."
SEMIANNUAL REPORT page 1
<PAGE>
records, credit card statements and other financial records, insurance policies
and social security records. Compare them with statements issued after the new
year begins.
While we cannot anticipate all possibilities, our systems are in place, and
we look forward to helping you achieve your financial goals in the new
millennium.
The Year In Review
Over the past 12 months, the U.S. economy has been characterized by robust
growth, generally low interest rates and unemployment levels that remain among
the lowest in three decades.
Concerns, however, about the continued pace of the economy's expansion have
tested the new paradigm that holds that improvements in productivity enable us
to have both economic growth and low inflation at the same time. With investors
and the various markets watching -- and reacting to -- every announcement
concerning economic statistics, volatility has increased, especially in the
equity markets.
We have entered a different economic environment from that of 12 months
ago. This shift has occurred in response to two factors:
. the Asian financial crisis of 1998 did not produce the slowdown that was
widely expected to keep economic growth from becoming overly robust;
. evidence of accelerating prices, most obvious in the spikes in the April
and September 1999 Consumer Price Index, contributed to the reemergence
of the specter of inflation, accompanied by predictions of higher
interest rates.
In an effort to preempt this inflation threat, the Federal Reserve has
twice moved to raise the federal funds rate by a quarter-point -- to 5.25% --
since the end of June. And in its October meeting, the group adopted a bias to
tighten, although it took no action at that time. The upward adjustments to this
rate, which represents the amount banks charge one another on overnight loans,
mark the first increases since March 1997 and stand in sharp contrast to the
three reductions made last fall.
The case for investing in municipal bonds is still a strong one. At the end
of August 1999, the ratio between long-term municipal yields and 30-year
Treasury yields stood at 93.1%, compared with the historical average of 89.6%
over the period 1979-1999. For investors, this meant that quality long-term
municipal bonds offered yields comparable to those of long Treasury bonds --
even before the tax advantages of municipals were taken into account. On an
after-tax basis, municipal bonds continued to present an exceptionally
attractive investment option relative to Treasuries.
In the coming months, we expect to see a healthy supply of new municipal
bonds, although total volume is expected to drop from the near-record levels of
1998. This is due to the dramatic decrease in the refunding of existing bonds in
the wake of higher interest rates compared to last August.
Fund News and Performance Review
At a special shareholder meeting earlier this year, shareholders approved
changes to the Nuveen Municipal Money Market Funds. These changes were made to:
. standardize certain fund features with other Nuveen mutual funds,
. permit the funds to operate more efficiently.
SEMIANNUAL REPORT page 2
<PAGE>
Additionally, Nuveen Tax-Exempt Money Market Fund, Inc. was renamed Nuveen
Institutional Tax-Exempt Money Market Fund.
As of August 31, 1999, the fund offered investors a yield of 2.78%, which
represented a taxable-equivalent yield of 4.03% for investors in the 31%
federal income tax bracket. Please see the Fund Spotlight, below, for more
information.
In Closing
Recent volatility in the markets highlights the importance of maintaining
balance in your investment portfolio. A flexible cash management investment as
part of a properly balanced portfolio including equities and bonds can help you
ride the markets' ups and downs. We encourage you to discuss with your financial
adviser whether your current asset allocation plan needs adjusting at this time.
Since 1898, Nuveen has been synonymous with investments that stand the test
of time. As we look ahead to a new millennium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
For more information on any Nuveen investment, including a prospectus,
contact your financial adviser, call Nuveen at (800) 621-7227, or download a
prospectus from our Internet site at www.nuveen.com. Please read the prospectus
carefully before you invest or send money.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 18, 1999
- -------------------------------------------------------------------------
NUVEEN INSTITUTIONAL TAX-EXEMPT MONEY MARKET FUND
Fund Spotlight as of August 31, 1999
Portfolio Statistics
Inception Date 3/81
- ------------------------------------------
Net Assets $323.2 million
- ------------------------------------------
Average Weighted Maturity 40.81 days
- ------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 2.78%
- ------------------------------------------
SEC 30-Day Yield 2.77%
- ------------------------------------------
Taxable Equivalent
(based on a federal income tax rate of 31%)
SEC 7-Day Yield 4.03%
- ------------------------------------------
SEC 30-Day Yield 4.01%
- ------------------------------------------
Diversification (as a % of market value)
Health Care 21%
- ------------------------------------------
Long-Term Care 17%
- ------------------------------------------
Tax Obligation (General) 15%
- ------------------------------------------
Education and Civic Organizations 11%
- ------------------------------------------
Utilities 9%
- ------------------------------------------
Housing (Multifamily) 7%
- ------------------------------------------
Transportation 6%
- ------------------------------------------
Tax Obligation (Limited) 5%
- ------------------------------------------
Financials 4%
- ------------------------------------------
Water and Sewer 3%
- ------------------------------------------
Basic Materials 2%
- ------------------------------------------
Nuveen is dedicated to providing investors access to a team of highly
experienced investment managers, each overseeing portfolios within their
specific areas of expertise. We call them Premier Adviserssm -- a select group
of asset management firms who direct the investment activities of the Nuveen
Mutual Funds. Nuveen has chosen them for their rigorously disciplined investment
approaches and their focus on consistent long-term performance.
Drawing on decades of experience and specialized knowledge, these skilled asset
managers have earned reputations for excellence in their fields of expertise,
whether it is blue-chip growth stocks, large-cap value stocks, bonds or
international securities.
Nuveen's Premier Adviser/sm/ for income investing is Nuveen Investment Advisory
Services (NIAS). NIAS follows a disciplined, research-driven investment approach
to uncover income securities that combine exceptional relative value with above-
average return potential. Averaging 10 years of experience through the market's
peaks and valleys, the Nuveen team of portfolio managers and research analysts
offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence and trading leverage of a market leader.
Terms To Know
SEC Yield A standardized calculation that the Securities and Exchange
Commission requires mutual funds to use when advertising rates of income return.
This standardized rate ensures that investors are comparing "apples to apples"
when comparing advertisements from different mutual fund companies.
SEMIANNUAL REPORT page 3
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Institutional Tax-Exempt Money Market Fund
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama - 0.6%
$ 2,000,000 Dallas County Housing Development Corporation,Housing Development Revenue, A-1 $ 2,000,000
Series 1999, Variable Rate Demand Bonds, 3.340%, 7/01/19+
- -----------------------------------------------------------------------------------------------------------------------------------
Alaska - 1.3%
4,300,000 City of Valdez, Marine Terminal Revenue Refunding Bonds (Exxon Pipeline Company VMIG-1 4,300,000
Project), 1993 Series C, Variable Rate Demand Bonds, 2.700%, 12/01/33+
- -----------------------------------------------------------------------------------------------------------------------------------
California - 1.5%
5,000,000 Student Education Loan Marketing Corporation (A Nonprofit Public Benefit VMIG-1 5,000,000
Corporation Organized Under the Laws of the State of California), Student
Loan Revenue Refunding, Series 1993A, Variable Rate Demand Bonds, 3.300%, 11/01/02+
- -----------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.4%
2,200,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Variable Rate VMIG-1 2,200,000
Demand Revenue Bonds, Series 1992A-3, 3.050%, 10/01/07+
2,600,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Variable Rate VMIG-1 2,600,000
Demand Revenue Bonds, Series 1992A-6, 3.050%, 10/01/07+
2,000,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Variable Rate VMIG-1 2,000,000
Demand Revenue Bonds, Series 1992A-4, 3.050%, 10/01/07+
1,100,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Variable Rate VMIG-1 1,100,000
Demand Revenue Bonds, Series 1992A-2, 3.050%, 10/01/07+
- -----------------------------------------------------------------------------------------------------------------------------------
Florida - 6.8%
9,000,000 Florida Housing Finance Agency, Multifamily Housing Revenue Bonds, Series 1985D VMIG-1 9,000,000
(Kings Colony Project), Variable Rate Demand Bonds, 3.300%, 8/01/06+
5,400,000 Miami Health Facilities Authority (Miami Jewish Home and Hospital for the Aged, Aa-3 5,400,000
Inc.), Series 1992, Variable Rate Demand Bonds, 3.300%, 3/01/12+
7,600,000 Pinellas County Educational Facilities Authority, Independent Higher Education VMIG-1 7,600,000
Pool, Commercial Paper Bonds, Series 1985, 3.350%, 10/07/99
- -----------------------------------------------------------------------------------------------------------------------------------
Georgia - 4.0%
2,300,000 Columbia Elderly Authority, Residential Care Facilities Revenue Bonds (Augusta Aa-3 2,300,000
Resource Center on Aging Inc.), Variable Rate Demand Bonds, Series 1994, 3.300%, 1/01/21+
10,705,000 Housing Authority of the County of DeKalb, Multifamily Housing Revenue Refunding VMIG-1 10,705,000
Bonds (Lenox Pointe Project), Series 1996A, Variable Rate Demand Bonds, 3.350%, 11/01/23+
- -----------------------------------------------------------------------------------------------------------------------------------
Illinois - 3.5%
3,300,000 City of Chicago, General Obligation Tender Notes, Series 1998, 2.850%, 1/31/00 SP-1+ 3,300,000
(Mandatory put 10/28/99)
8,000,000 Decatur Revenue Bonds, Series 1985 (New South Water Treatment), Commercial Paper, VMIG-2 8,000,000
3.625%, 9/08/98
- -----------------------------------------------------------------------------------------------------------------------------------
Indiana - 7.5%
6,200,000 Fort Wayne, Economic Development Revenue, Variable Rate Demand Bonds, A-1+ 6,200,000
Series 1998 (St. Anne Home and Retirement), 3.370%, 9/01/23+
5,000,000 Hamilton Southeastern Consolidated School Building Corporation, Temporary Loan SP-1+ 5,008,897
Warrants, 3.500%, 12/31/99
5,400,000 Jasper County Pollution Control Bonds (Northern Indiana Public Service Co.), VMIG-1 5,400,000
Series 1994B, Variable Rate Demand Bonds, 2.750%, 6/01/13+
7,500,000 Tippecanoe School Corporation, Temporary Loan Warrants, Series 1999, 3.500%, 12/30/99 N/R 7,507,195
- -----------------------------------------------------------------------------------------------------------------------------------
Kansas - 0.9%
3,000,000 Kansas State Development Finance Authority, Health Facilities Revenue Bonds, VMIG-1 3,000,000
Series 1998M (Stormont-Vail Regional Medical Center), Variable Rate Demand Bonds,
2.950%, 11/15/23+
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Kentucky - 2.4%
$ 7,765,000 Kentucky Development Finance Authority (Presbyterian Homes and Services VMIG-1 $ 7,765,000
Project), Variable Rate Demand Bonds, Series 1998A, 3.390%, 11/01/18+
- -----------------------------------------------------------------------------------------------------------------------------------
Louisiana - 4.3%
4,100,000 Louisiana Offshore Terminal Authority, Variable Rate Demand Bonds, 2.700%, 9/01/06+ VMIG-1 4,100,000
4,700,000 Ascension Parish Pollution Control (BSAF Wyandotte Corporation), Variable Rate P-1 4,700,000
Demand Bonds, 2.900%, 12/01/05+
5,000,000 New Orleans Aviation Board, Revenue Bonds, Series 1993B, Variable Rate Demand VMIG-1 5,000,000
Bonds, 3.300%, 8/01/16+
- -----------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.7%
11,800,000 Detroit Downtown Development Authority (Millender Center Project), Series 1988, A-1 11,800,000
Variable Rate Demand Revenue Bonds, 3.350%, 12/01/10+
- -----------------------------------------------------------------------------------------------------------------------------------
Minnesota - 7.3%
4,300,000 Bloomington Port Authority, Minnesota, Special Tax Revenue Refunding Bonds VMIG-1 4,300,000
(Mall of America Project), Series 1999B, Variable Rate Demand Bonds, 3.300%, 2/01/13+
11,970,000 Minneapolis/St. Paul Housing and Redevelopment Authority, Children's Health SP-1+ 11,970,000
Care, Series 1995, Variable Rate Demand Bonds, 2.950%, 8/15/25+
7,195,000 St. Paul Housing and Redevelopment Authority, Parking Revenue Bonds, Series VMIG-1 7,195,000
1995B, Variable Rate Demand Bonds, 3.350%, 8/01/17+
- -----------------------------------------------------------------------------------------------------------------------------------
Missouri - 6.9%
4,000,000 Health and Educational Facilities Authority, Variable Rate Demand Bonds, Health VMIG-1 4,000,000
Facilities Revenue Bonds (Bethesda Barclay), Series 1996A, 2.950%, 8/15/26+
5,855,000 Environmental Improvement and Energy Resources Authority, Unit Priced Demand VMIG-1 5,855,000
Adjustable Pollution Control Revenue Bonds, Series 1985A (Union Electric Company),
Commercial Paper, 3.300%, 2/07/00
4,300,000 The Industrial Development Authority of the County of Jackson, Variable Rate A-1 4,300,000
Demand Bonds, Recreational Facilities Revenue Bonds (YMCA of Greater Kansas City
Project), Series 1996A, 3.050%, 11/01/16+
8,300,000 St. Louis Land Clearance Redevelopment Authority, Parking Facility Revenue VMIG-1 8,300,000
Refunding Bonds, Series 1996, Variable Rate Demand Bonds, 4.000%, 9/01/19+
- -----------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.4%
4,380,000 Scotts Bluff County Hospital Authority, Elderly Residential Facility Refunding A-1 4,380,000
Revenue (Regional West Village Project), Variable Rate Demand Bonds, 3.250%, 12/01/31+
- -----------------------------------------------------------------------------------------------------------------------------------
Nevada - 0.5%
1,545,000 Clark County, Economic Development Revenue (University of Las Vegas Foundation A-1+ 1,545,000
Project), Variable Rate Demand Bonds, Series 1999, 3.350%, 8/01/19+
- -----------------------------------------------------------------------------------------------------------------------------------
New Mexico - 0.7%
2,200,000 Farmington Pollution Control (Arizona Public Service Co. - Four Corners A-1+ 2,200,000
Project), 1994 Series B, Variable Rate Demand Bonds, 2.700%, 9/01/24+
- -----------------------------------------------------------------------------------------------------------------------------------
New York - 1.7%
4,500,000 City of New York, General Obligation Bonds, Variable Rate Demand Bonds, Fiscal VMIG-1 4,500,000
1995, Series B, Subseries B7, 2.800%, 8/15/18+
1,100,000 New York City Municipal Water Finance Authority, Water And Sewer System Revenue VMIG-1 1,100,000
Bonds, Fiscal 1996, Series A, Variable Rate Demand Bonds, 3.100%, 6/15/25+
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina - 2.1%
6,725,000 North Carolina Medical Care Commission, Variable Rate Demand Revenue Bonds VMIG-1 6,725,000
(Pooled Financing Project), Series 1996A, 2.950%, 10/01/16+
- -----------------------------------------------------------------------------------------------------------------------------------
Ohio - 3.7%
7,000,000 Cuyahoga County, Hospital Revenue Bonds, Series 1999E (University Hospitals VMIG-1 7,000,000
Health System), Variable Rate Demand Bonds, 3.300%, 1/15/29+
5,000,000 County of Hamilton, Variable Rate Demand Bonds, Hospital Facilities Revenue VMIG-1 5,000,000
Bonds, Series 1997A (Children's Hospital Medical Center), 3.300%, 5/15/17+
</TABLE>
5
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Institutional Tax-Exempt Money Market Fund (continued)
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oregon - 2.2%
$ 7,000,000 Multnomah County School District 1J, Portland, 1999 Tax and Revenue MIG-1 $ 7,028,062
Anticipation Notes, 4.000%, 6/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 10.3%
4,000,000 Allegheny County Industrial Development Authority, Zoological Society of A-1 4,014,483
Pittsburgh, Adjustable Rate Demand Revenue Bonds, Series A of 1999, 4.000%, 6/01/19+
(Mandatory put 6/01/00)
10,000,000 Dauphin County General Authority, Variable Rate Demand Revenue Bonds, Series of VMIG-1 10,000,000
1997 (Education and Health Loan Program), 3.320%, 11/01/17+
12,500,000 Lancaster County Hospital Authority, Series 1998B, Variable Rate Demand Revenue A-1 12,500,000
Bonds (Willow Valley Lakes Manor), 3.320%, 12/01/18+
3,440,000 Philadelphia Authority for Industrial Development (Horizon House Inc. Project), VMIG-1 3,440,000
Variable Rate Demand Revenue Bonds, Series 1998, 3.300%, 6/01/13+
3,250,000 Philadelphia Authority for Industrial Development (The Academy of Music of Aa-3 3,250,000
Philadelphia), Variable Rate Demand Revenue Bonds, Series 1998, 3.300%, 8/01/18+
- -----------------------------------------------------------------------------------------------------------------------------------
South Dakota - 3.6%
11,780,000 South Dakota Health and Educational Facilities Authority (McKennan Hospital), VMIG-1 11,780,000
Series 1994, Variable Rate Demand Revenue Bonds, 3.350%, 7/01/14+
- -----------------------------------------------------------------------------------------------------------------------------------
Texas - 0.7%
2,300,000 Texas Health Facilities Development Corporation (North Texas Pooled Health VMIG-1 2,300,000
Program), Variable Rate Demand Bonds, Series 1985A, 3.550%, 5/31/25+
- -----------------------------------------------------------------------------------------------------------------------------------
Utah - 2.5%
8,000,000 Salt Lake County, Utah, Tax and Revenue Anticipation Notes, Series 1999, N/R 8,014,032
4.000%, 12/29/99
- -----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.3%
1,000,000 Industrial Development Authority of the County of Henrico, Health Facility N/R 1,000,000
Revenue Refunding Bonds (The Hermitage at Cedarfield), Series 1994, Variable Rate
Demand Bonds, 3.300%, 8/01/23+
- -----------------------------------------------------------------------------------------------------------------------------------
Washington - 5.3%
6,385,000 Washington Economic Development Authority, Variable Rate Demand Economic MIG-1 6,385,000
Development Bonds, Series 1998H (Pioneer Human Services Project), 3.000%, 9/01/18+
9,200,000 Washington State Housing Finance Commission, Variable Rate Demand Nonprofit A-1 9,200,000
Revenue Bonds (Emerald Heights Project), Series 1990, 3.000%, 1/01/21+
1,620,000 Washington State Housing Finance Commission, Variable Rate Demand Non Profit VMIG-1 1,620,000
Revenue Bonds (YMCA of Snohomish County Program), Series 1994, 3.450%, 8/01/19+
- -----------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 8.6%
7,200,000 Wisconsin Health and Educational Facilities Authority, Series 1988A (Alexian VMIG-1 7,200,000
Village of Milwaukee), Commercial Paper, 3.400%, 10/12/99
3,000,000 Carlton Pollution Control Revenue Bonds, Series 1991B (Wisconsin Power and VMIG-1 3,000,000
Light), Variable Rate Demand Bonds, 2.950%, 9/01/05+
7,000,000 Madison Metropolitan School District, 1999 Tax and Revenue Anticipation N/R 7,019,396
Promissory Notes, 4.000%, 2/22/00
3,500,000 Menomonee Falls School District, 1999 Bond Anticipation Notes, 4.100%, 11/24/99 MIG-1 3,507,068
7,000,000 Oskosh Area School District, 1999 Tax and Revenue Promissory Notes, 4.000%, 8/23/00 (WI) MIG-1 7,019,740
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Wyoming - 1.1%
$ 3,600,000 Uinta County, Pollution Control Refunding Revenue Bonds (Chevron U.S.A. Inc. P-1 $ 3,600,000
Project), Series 1993, Variable Rate Demand Bonds, 2.700%, 8/15/20+
- -----------------------------------------------------------------------------------------------------------------------------------
$316,115,000 Total Investments - 97.8% 316,233,873
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 6,976,622
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $323,210,495
===================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The 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.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
7
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 1999
<TABLE>
<S> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Assets
Investments in short-term municipal securities, at amortized cost, which approximates market value (note 1) $316,233,873
Cash 8,081,106
Receivables:
Interest 1,252,685
Investments sold 5,300,000
Other assets 206,137
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 331,073,801
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased 7,019,740
Accrued expenses:
Management fees (note 3) 92,924
Other 17,810
Dividends payable 732,832
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 7,863,306
- ---------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding (note 4) $323,210,495
===========================================================================================================================
Shares outstanding 323,210,495
===========================================================================================================================
Net asset value, offering and redemption price per share (net assets divided by shares outstanding) $1.00
===========================================================================================================================
</TABLE>
Statement of Operations* (Unaudited)
Six Months Ended August 31, 1999
<TABLE>
<S> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income (note 1) $ 5,294,289
- ---------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 3) 645,782
Shareholders' servicing agent fees and expenses 10,901
Custodian's fees and expenses 35,048
Trustees' fees and expenses (note 3) 4,773
Professional fees 5,879
Shareholders' reports - printing and mailing expenses 10,767
Federal and state registration fees 19,738
Portfolio insurance expense 8,054
Other expenses 29,316
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 770,258
Custodian fee credit (note 1) (2,828)
Expense reimbursement (note 3) (39,453)
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses 727,977
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income 4,566,312
Net realized gain (loss) from investment transactions (notes 1 and 2) (1,772)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 4,564,540
===========================================================================================================================
</TABLE>
* The statement includes the operations of the Nuveen Tax-Exempt Money Market
Fund, Inc. through the close of business on June 25, 1999, and the operations
of the Nuveen Institutional Tax-Exempt Money Market Fund from such date
through August 31, 1999 (see note 1 of the Notes to Financial Statements).
See accompanying notes to financial statements.
8
<PAGE>
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Year Ended
8/31/99* 2/28/99
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 4,566,312 $ 10,920,584
Net realized gain (loss) from investment transactions (notes 1 and 2) (1,772) --
- --------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 4,564,540 10,920,584
- --------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (4,566,312) (10,920,584)
- --------------------------------------------------------------------------------------------------------------------------
Share Transactions (at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 745,590,187 1,894,910,826
Net proceeds from shares issued to shareholders due to reinvestment of distributions 2,471,933 5,680,509
- --------------------------------------------------------------------------------------------------------------------------
748,062,120 1,900,591,335
Cost of shares redeemed (770,483,283) (2,028,459,624)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (22,421,163) (127,868,289)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (22,422,935) (127,868,289)
Net assets at the beginning of period 345,633,430 473,501,719
- --------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 323,210,495 $ 345,633,430
==========================================================================================================================
</TABLE>
* Six months ended August 31, 1999, includes the changes in net assets of the
Nuveen Tax-Exempt Money Market Fund, Inc. through the close of business on
June 25, 1999, and the changes in net assets of the Nuveen Institutional Tax-
Exempt Money Market Fund from such date through August 31, 1999 (see note 1 of
the Notes to Financial Statements).
See accompanying notes to financial statements.
9
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The Nuveen Institutional Tax-Exempt Money Market Fund (the "Fund") formerly, the
Nuveen Tax-Exempt Money Market Fund, Inc., is a series of the Nuveen Money
Market Trust (the "Trust") which was organized as a Massachusetts business trust
on January 15, 1999. Nuveen Tax-Exempt Money Market Fund, Inc. was reorganized
effective after the close of business on June 25, 1999, as approved by the
shareholders on June 22, 1999. The Trust (and each series within the Trust) is
registered under the Investment Company Act of 1940 as an open-end, management
investment company.
The Fund invests substantially all of its assets in a diversified portfolio of
high quality, tax-exempt money market instruments for current income, the
stability of principal, and the maintenance of liquidity.
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements in accordance with generally
accepted accounting principles.
Securities Valuation
The Fund invests in short-term municipal securities maturing within one year
from the date of acquisition. Securities with a maturity of more than one year
in all cases have variable rate and demand features qualifying them as short-
term securities and are valued at amortized cost. On a dollar-weighted basis,
the average maturity of all such securities must be 90 days or less (at August
31, 1999, the dollar-weighted average life was 41 days).
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 Fund has 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, 1999, the Fund had an outstanding when-issued purchase commitment of
$7,019,740.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend to shareholders of
record as of the close of each business day and payment is made or reinvestment
is credited to shareholder accounts after month-end. The Fund may also
distribute, from time to time, net ordinary taxable income and/or capital gains.
Federal Income Taxes
The Fund intends to distribute all of its tax-exempt net investment income,
taxable ordinary income and/or net realized capital gains from investment
transactions, if any, and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
the Fund intends to satisfy conditions which will enable interest from municipal
securities, which is exempt from regular federal income tax, to retain such tax-
exempt status when distributed to shareholders of the Fund. Net ordinary taxable
income and net realized capital gain distributions, if any, are subject to
federal taxation.
Insurance Commitments
Effective April 1, 1999, the Fund purchased liability insurance to protect
against a decline in the value of securities held in the Fund's portfolio caused
by the default of securities owned by the Fund. This policy replaces a similar
insurance policy from MBIA Insurance Corp. The insurance covers substantially
all of the Fund's investments except U.S. government securities. The maximum
total coverage for all Nuveen money market funds is $50 million, with certain
deductibles for each loss. The Fund pays the policy premiums. Coverage under the
policy is subject to certain conditions and may not be renewable upon
expiration. While the policy is intended to provide some protection against
credit risk and to help the Fund maintain a constant price per share of $1.00,
there is no guarantee that the insurance will do so.
10
<PAGE>
Derivative Financial Instruments
The Fund may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Fund is authorized to invest in such
financial instruments, and may do so in the future, it did not make any such
investments during the six months ended August 31, 1999.
Custodian Fee Credit
The Fund has an agreement with the custodian bank whereby the custodian fees and
expenses are reduced by credits earned on the Fund's cash on deposit with the
bank. Such deposit arrangements are an alternative to overnight investments.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
2. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
municipal securities during the six months ended August 31, 1999, aggregated
$637,558,170 and $664,985,000, respectively. The securities transactions include
the purchases and sales (including maturities) of the Nuveen Tax-Exempt Money
Market Fund, Inc. through June 25, 1999, and the purchases and sales (including
maturities) of the Nuveen Institutional Tax-Exempt Money Market Fund from such
date through August 31, 1999 (see note 1).
At August 31, 1999, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes.
3. Management Fee and Other Transactions with Affiliates
Under the Fund's investment management agreement with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, the Fund pays
an annual management fee, payable monthly, which is based upon the average daily
net assets of the Fund as follows:
<TABLE>
<CAPTION>
Average Daily Net Assets Management Fee
- -------------------------------------------------
<S> <C>
For the first $500 million .4000 of 1%
For the next $500 million .3750 of 1
For the next $1 billion .3500 of 1
For net assets over $2 billion .3250 of 1
=================================================
</TABLE>
For the periods prior to the close of business on June 25, 1999, pursuant to the
management agreement, the Adviser was obligated to reduce the management fee or
assume certain Fund expenses in an amount necessary to prevent the Fund's total
expenses (including the management fee, but excluding interest, taxes, fees
incurred in acquiring and disposing of portfolio securities and, to the extent
permitted, extraordinary expenses) from exceeding .45 of 1% of the average daily
net assets of the Fund.
Effective after the close of business on June 25, 1999, as approved by the
shareholders on June 4, 1999, the management fee was as follows:
<TABLE>
<CAPTION>
Average Daily Net Assets Management Fee
- -------------------------------------------------
<S> <C>
For the first $125 million .4000 of 1%
For the next $125 million .3875 of 1
For the next $250 million .3750 of 1
For the next $500 million .3625 of 1
For the next $1 billion .3500 of 1
For net assets over $2 billion .3250 of 1
=================================================
</TABLE>
Although not obligated to do so pursuant to the new advisory agreement, the
adviser may for limited periods of time voluntarily agree to reimburse certain
expenses of the Fund and has agreed to limit the total operating expenses of the
Fund to .45 of 1% of the average daily net assets through December 31, 1999.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Fund pays no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to its officers, all of whom receive remuneration for their services
to the Fund from the Adviser or its affiliates.
4. Composition of Net Assets
At August 31, 1999, the Fund had an unlimited number of $.01 par value stock
authorized. Net assets consisted of $323,212,267 paid-in capital and $1,772 of
accumulated net realized loss from investment transactions.
11
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
5. Investment Composition
At August 31, 1999, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<S> <C>
- --------------------------------------------
Basic Materials 2%
Education and Civic Organizations 11
Financials 4
Health Care 21
Housing/Multifamily 7
Long-Term Care 17
Tax Obligation/General 15
Tax Obligation/Limited 5
Transportation 6
Utilities 9
Water and Sewer 3
- --------------------------------------------
100%
============================================
</TABLE>
At August 31, 1999, 83% of the investments owned by the Fund have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions (see note 1).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
12
<PAGE>
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio
of Net
Ratio of Investment
Less Expenses Income to
Beginning Distributions Ending to Average Average
Net Net from Net Net Ending Net Assets Net Assets
Year Ended Asset Investment Investment Asset Total Net Assets Before Credit/ Before Credit/
February 28/29, (b) Value Income Income Value Return (000) Reimbursement Reimbursement
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 (c) $1.00 $.01 $(.01) $1.00 1.42% $323,210 .47%* 2.77%*
1999 1.00 .03 (.03) 1.00 3.07 345,633 .45 3.06
1998 1.00 .03 (.03) 1.00 3.27 473,502 .44 3.26
1997 1.00 .03 (.03) 1.00 3.11 515,403 .44 3.10
1996 1.00 .03 (.03) 1.00 3.42 610,053 .44 3.43
1995 1.00 .03 (.03) 1.00 2.69 759,244 .44 2.65
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio
of Net
Ratio of Investment
Expenses Income to
to Average Average
Net Assets Net Assets
Year Ended After Credit/ After Credit/
February 28/29, (b) Reimbursement (a) Reimbursement (a)
- -------------------------------------------------------------------------------
<S> <C> <C>
2000 (c) .45%* 2.79%*
1999 .45 3.06
1998 .44 3.26
1997 .44 3.10
1996 .44 3.43
1995 .44 2.65
- -------------------------------------------------------------------------------
</TABLE>
* Annualized.
(a) After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 3).
(b) Information included prior to the six months ended August 31, 1999, reflects
the financial highlights of Nuveen Tax-Exempt Money Market Fund, Inc. (see
note 1).
(c) For the six months ended August 31, 1999. Information includes the financial
highlights of the Nuveen Tax-Exempt Money Market Fund, Inc. through the
close of business on June 25, 1999, and the financial highlights of the
Nuveen Institutional Tax-Exempt Money Market Fund from such date through
August 31, 1999 (see note 1 of the Notes to Financial Statements).
13
<PAGE>
SERVING
Investors for Generations
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to
disciplined long-term investment strategies whose aim is to provide consistent,
competitive performance over time -- with moderated risk. We emphasize quality
securities carefully chosen through in-depth research, and we follow those
securities closely over time to ensure that they continue to meet our exacting
standards.
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. Our growth,
growth and income, income, and tax-free funds, along with our defined portfolios
and private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
[PHOTO OF JOHN NUVEEN SR.]
John Nuveen, Sr.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
<PAGE>
August 31, 1999 Semiannual Report
NUVEEN
Mutual Funds
Extraordinary Talent. Masterful Performance.
Nuveen Money Market Funds
[PHOTO APPEARS HERE]
For investors
seeking tax-free
income, stability,
and liquidity in a
flexible cash
management
investment.
Municipal
California Tax-Exempt
New York Tax-Exempt
Featuring Portfolio Management By Nuveen Investment Advisory Services
A Premier Adviser/SM/ for Income Investing
<PAGE>
Contents
1 Dear Shareholder
4 Nuveen Money Market Funds Spotlight
5 Portfolio of Investments
12 Statement of Net Assets
13 Statement of Operations
15 Statement of Changes in Net Assets
18 Notes to Financial Statements
22 Financial Highlights
25 Fund Information
<PAGE>
DEAR
Shareholder
At this writing, we're just a couple of months away from the much-talked-about
millennium. Besides trying to decide where we want to be when the clock strikes
midnight, this whole event puts the concept of time in front of us all. We
think: "Where did the time go?"
We think about how old, 25 years ago, we thought we would be when the calendar
turned January 1, 2000. (And we realize, now, it is really not that old at all.)
We think about all the things we wanted to have accomplished before 1999 became
2000.
Most likely, one of your millennium goals was financial. Whether it was to fully
fund your retirement accounts or set up trusts for your grandchildren, the fact
you're working with a financial adviser and reading this report are positive
signs that you're well on your way to achieving your goal.
I'm pleased to report we're meeting our goals, too. In addition to the goals we
have established for each mutual fund we manage, we have set goals in
preparation for the millennium.
As you have probably already heard, the year 2000, or Y2K, problem stems
from concerns that computers and other date-sensitive systems could malfunction
or stop before, on, or after January 1, 2000. Many older systems use a two-digit
number to represent a year. To a computer, "00" may mean the year 1900 instead
of 2000. If this were to happen, some computers might shut down or not work
correctly.
All efforts to safeguard critical systems are right on schedule at Nuveen.
It's a goal we set more than 10 years ago. Nuveen's trading, fund management and
pricing -- systems that affect you and your investments -- have been updated or
replaced to be able to deal accurately with Y2K.
We continue to work closely with our service providers, transfer agent,
custodian and trustee to monitor the readiness of their systems, as well as
address any remaining internal systems issues. We expect January 3, 2000, the
first business day of the year, to be "business as usual."
The Securities and Exchange Commission (SEC), which oversees the securities
industry, is also taking significant steps to help the financial industry make a
smooth transition to the Y2K. First, the SEC is requiring all public companies,
investment advisers, investment companies and municipal securities issuers to
disclose their ability to comply with the Y2K issue.
In addition, the SEC mandated that tests be conducted on various financial
systems to test the ability of exchanges and broker/dealer firms to handle
transactions effectively. We participated successfully in those tests.
[PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
Chairman of the Board
"All efforts to
safeguard critical
systems are right
on schedule
at Nuveen."
SEMIANNUAL REPORT page 1
<PAGE>
Still, it's always a good idea to keep good records of all your financial
business. Keep copies of all your fourth quarter 1999 bank and investment
account statements, bill payment records, credit card statements and other
financial records, insurance policies and social security records. Compare them
with statements issued after the new year begins.
While we cannot anticipate all possibilities, our systems are in place, and
we look forward to helping you achieve your financial goals in the new
millennium.
The Year In Review
Over the past 12 months, the U.S. economy has been characterized by robust
growth, generally low interest rates and unemployment levels that remain among
the lowest in three decades.
Concerns, however, about the continued pace of the economy's expansion have
tested the new paradigm that holds that improvements in productivity enable us
to have both economic growth and low inflation at the same time. With investors
and the various markets watching -- and reacting to -- every announcement
concerning economic statistics, volatility has increased, especially in the
equity markets.
We have entered a different economic environment from that of 12 months
ago. This shift has occurred in response to two factors:
. the Asian financial crisis of 1998 did not produce the slowdown that was
widely expected to keep economic growth from becoming overly robust;
. evidence of accelerating prices, most obvious in the spikes in the April
and September 1999 Consumer Price Index, contributed to the reemergence
of the specter of inflation, accompanied by predictions of higher
interest rates.
In an effort to preempt this inflation threat, the Federal Reserve has
twice moved to raise the federal funds rate by a quarter-point -- to 5.25% --
since the end of June. And in its October meeting, the group adopted a bias to
tighten, although it took no action at that time. The upward adjustments to this
rate, which represents the amount banks charge one another on overnight loans,
mark the first increases since March 1997 and stand in sharp contrast to the
three reductions made last fall.
The case for investing in municipal bonds is still a strong one. At the end
of August 1999, the ratio between long-term municipal yields and 30-year
Treasury yields stood at 93.1%, compared with the historical average of 89.6%
over the period 1979-1999. For investors, this meant that quality long-term
municipal bonds offered yields comparable to those of long Treasury bonds --
even before the tax advantages of municipals were taken into account. On an
after-tax basis, municipal bonds continued to present an exceptionally
attractive investment option relative to Treasuries.
In the coming months, we expect to see a healthy supply of new municipal
bonds, although total volume is expected to drop from the near-record levels of
1998. This is due to the dramatic decrease in the refunding of existing bonds in
the wake of higher interest rates compared to last August.
SEMIANNUAL REPORT page 2
<PAGE>
Fund News and Performance Review
At a special shareholder meeting earlier this year, shareholders approved
changes to the Nuveen Municipal Money Market Funds. These changes were made to:
. standardize certain fund features with other Nuveen mutual funds,
. conform terms of the funds' Rule 12b-1 plan with current industry
practice and
. permit the funds to operate more efficiently.
Additionally, Nuveen Tax-Free Reserves, Inc. was renamed Nuveen Municipal
Money Market Fund; Nuveen California Tax-Free Money Market Fund and Nuveen New
York Tax-Free Money Market Fund became Nuveen California Tax-Exempt Money Market
Fund and Nuveen New York Tax-Exempt Money Market Fund, respectively.
I'm pleased to report that despite market volatility, Nuveen's municipal
money market funds continued to provide investors with attractive short-term
rates. Nuveen Municipal Money Market Fund offered investors a 7-day tax-free
yield of 2.71%, which represented a taxable-equivalent yield of 3.93% for
investors in the 31% federal income tax bracket. The tax-free 7-day yields for
the two state money market funds were 2.59% for New York and 2.55% for
California. The taxable-equivalent yield for New York was 4.02% for investors in
the 35.5% federal and state income tax bracket. The taxable-equivalent yield for
California was 4.08% for investors in the 37.5% federal and state income tax
bracket. Please see the Fund Spotlight in this report for more information.
In Closing
Recent volatility in the markets highlights the importance of maintaining
balance in your investment portfolio. A flexible cash management investment as
part of a properly balanced portfolio including equities and bonds can help you
ride the markets' ups and downs. We encourage you to discuss with your financial
adviser whether your current asset allocation plan needs adjusting at this time.
Since 1898, Nuveen has been synonymous with investments that stand the test
of time. As we look ahead to a new millennium, we are committed to maintaining
that reputation and finding the best ways to serve your evolving investment
needs. Thank you for your continued confidence.
For more information on any Nuveen investment, including a prospectus,
contact your financial adviser, call Nuveen at (800) 621-7227, or download a
prospectus from our Internet site at www.nuveen.com. Please read the prospectus
carefully before you invest or send money.
Sincerely,
/s/ Timothy R. Schwertfeger
- ---------------------------
Timothy R. Schwertfeger
Chairman of the Board
October 18, 1999
Nuveen is dedicated to providing investors access to a team of highly
experienced investment managers, each overseeing portfolios within their
specific areas of expertise. We call them Premier Advisers/sm/ -- a select group
of asset management firms who direct the investment activities of the Nuveen
Mutual Funds. Nuveen has chosen them for their rigorously disciplined investment
approaches and their focus on consistent long-term performance.
Drawing on decades of experience and specialized knowledge, these skilled asset
managers have earned reputations for excellence in their fields of expertise,
whether it is blue-chip growth stocks, large-cap value stocks, bonds or
international securities.
Nuveen's Premier Adviser/sm/ for income investing is Nuveen Investment Advisory
Services (NIAS). NIAS follows a disciplined, research-driven investment approach
to uncover income securities that combine exceptional relative value with above-
average return potential. Averaging 10 years of experience through the market's
peaks and valleys, the Nuveen team of portfolio managers and research analysts
offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence and trading leverage of a market leader.
SEMIANNUAL REPORT page 3
<PAGE>
Fund Spotlight as of August 31, 1999
Terms To Know
SEC Yield A standardized calculation that the Securities and Exchange Commission
requires mutual funds to use when advertising rates of income return. This
standardized rate ensures that investors are comparing "apples to apples" when
comparing advertisements from different mutual fund companies.
NUVEEN MUNICIPAL MONEY MARKET FUND
Portfolio Statistics
Inception Date 11/82
- ----------------------------------------------------------------
Net Assets $251.7 million
- ----------------------------------------------------------------
Average Weighted Maturity 51.8 days
- ----------------------------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 2.71%
- ----------------------------------------------------------------
SEC 30-Day Yield 2.62%
- ----------------------------------------------------------------
Taxable Equivalent
(based on a federal income tax rate of 31%)
SEC 7-Day Yield 3.93%
- ----------------------------------------------------------------
SEC 30-Day Yield 3.80%
- ----------------------------------------------------------------
Diversification (as a % of market value)
Tax Obligation (General) 18%
- ----------------------------------------------------------------
Utilities 16%
- ----------------------------------------------------------------
Long-Term Care 10%
- ----------------------------------------------------------------
Health Care 9%
- ----------------------------------------------------------------
Basic Materials 8%
- ----------------------------------------------------------------
Education and Civic Organizations 8%
- ----------------------------------------------------------------
Capital Goods 6%
- ----------------------------------------------------------------
Industrial/Other 6%
- ----------------------------------------------------------------
Tax Obligation (Limited) 5%
- ----------------------------------------------------------------
Water and Sewer 4%
- ----------------------------------------------------------------
Consumer Cyclicals 4%
- ----------------------------------------------------------------
Housing (Multifamily) 4%
- ----------------------------------------------------------------
Consumer Staples 2%
- ----------------------------------------------------------------
NUVEEN CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
Portfolio Statistics
Inception Date 3/86
- ----------------------------------------------------------------
Net Assets $74.7 million
- ----------------------------------------------------------------
Average Weighted Maturity 49.2 days
- ----------------------------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 2.55%
- ----------------------------------------------------------------
SEC 30-Day Yield 2.51%
- ----------------------------------------------------------------
Taxable Equivalent
(based on a combined federal and state income tax rate of 37.5%)
SEC 7-Day Yield 4.08%
- ----------------------------------------------------------------
SEC 30-Day Yield 4.02%
- ----------------------------------------------------------------
Diversification (as a % of market value)
Tax Obligation (Limited) 20%
- ----------------------------------------------------------------
Tax Obligation (General) 20%
- ----------------------------------------------------------------
Utilities 17%
- ----------------------------------------------------------------
Water and Sewer 13%
- ----------------------------------------------------------------
Health Care 10%
- ----------------------------------------------------------------
Transportation 6%
- ----------------------------------------------------------------
Consumer Staples 5%
- ----------------------------------------------------------------
Housing (Multifamily) 5%
- ----------------------------------------------------------------
Long-Term Care 4%
- ----------------------------------------------------------------
NUVEEN NEW YORK TAX-EXEMPT MONEY MARKET FUND
Portfolio Statistics
Inception Date 2/87
- ----------------------------------------------------------------
Net Assets $33.3 million
- ----------------------------------------------------------------
Average Weighted Maturity 26 days
- ----------------------------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 2.59%
- ----------------------------------------------------------------
SEC 30-Day Yield 2.52%
- ----------------------------------------------------------------
Taxable Equivalent
(based on a combined federal and state income tax rate of 35.5%)
SEC 7-Day Yield 4.02%
- ----------------------------------------------------------------
SEC 30-Day Yield 3.97%
- ----------------------------------------------------------------
Diversification (as a % of market value)
Tax Obligation (General) 32%
- ----------------------------------------------------------------
Education and Civic Organizations 17%
- ----------------------------------------------------------------
Long-Term Care 10%
- ----------------------------------------------------------------
Health Care 9%
- ----------------------------------------------------------------
Housing (Multifamily) 9%
- ----------------------------------------------------------------
Utilities 8%
- ----------------------------------------------------------------
Water and Sewer 5%
- ----------------------------------------------------------------
Transportation 4%
- ----------------------------------------------------------------
Consumer Cyclicals 3%
- ----------------------------------------------------------------
Industrial/Other 3%
- ----------------------------------------------------------------
SEMIANNUAL REPORT page 4
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Municipal Money Market Fund
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama - 1.5%
$ 1,500,000 Industrial Development Board of the City of Citronelle, Alabama, Pollution Control Aa-2 $ 1,500,000
Revenue Bonds, Series 1992 Refunding (Akzo Chemicals Inc. Project), Variable
Rate Demand Bonds, 3.350%, 2/01/04+
2,250,000 Jefferson County, Alabama, Public Improvement Warrants, Series 1988 (Briarwood N/R 2,250,000
Presbyterian Church Project), Variable Rate Demand Bonds, 4.278%, 5/01/08+
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 3.4%
8,500,000 Mesa, Arizona, Municipal Development Corporation, Special Tax Bonds, Series VMIG-1 8,500,000
1985, Commercial Paper, 3.600%, 2/02/00
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 2.0%
5,000,000 District of Columbia (Washington, D.C.), General Obligation Bonds, Variable Rate VMIG-1 5,000,000
Demand Revenue Bonds, Series 1992A-2, 3.050%, 10/01/07+
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 1.2%
3,100,000 Pasco County Housing Finance Authority, Multi-Family Housing Revenue Bonds (Carlton VMIG-1 3,100,000
Arms of Magnolia Valley Project), Series 1985, Variable Rate Demand Bonds, 3.425%,
12/01/07+
- ------------------------------------------------------------------------------------------------------------------------------------
Hawaii - 0.4%
900,000 Department of Budget and Finance of the State of Hawaii, Special Purpose Floating Rate A-2 900,000
Demand Revenue Bonds (Adventist Health System - West), Series 1984, Variable Rate
Demand Bonds, 3.450%, 9/01/99
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 16.8%
7,000,000 Illinois Development Finance Authority, Pollution Control Revenue Bonds (Diamond-Star P-1 7,000,000
Motors Corporation Project), Series 1985, Variable Rate Demand Bonds, 4.000%,
12/01/08+
6,000,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue Bonds, Shedd VMIG-1 6,000,000
Aquarium Society, Series 1987B, Commercial Paper, 3.450%, 7/18/00
3,000,000 Illinois Educational Facilities Authority, Variable Rate Demand Revenue Bonds A-1+ 3,000,000
(National Louis University), Series 1999A, 3.320%, 6/01/29+
4,500,000 Illinois Health Facilities Authority, Victory Health Services, Commercial Paper, VMIG-1 4,500,000
Series 1997A, 3.300%, 10/01/99
3,000,000 City of Chicago, Illinois, General Obligation Tender Notes, Series 1994C, 3.050%, VMIG-1 3,000,000
10/31/99
2,800,000 Chicago, Illinois, Industrial Development Revenue, Flying Food Fare Midway Project, A-1+ 2,800,000
Series 1998, Variable Rate Demand Bonds, 3.450%, 6/01/29+ (Alternative Minimum Tax)
5,430,000 City of Chicago, Illinois, Revenue Bonds (De La Salle Institute Project), Series 1997, A-1+ 5,430,000
Variable Rate Demand Bonds, 3.350%, 4/01/27+
10,700,000 Decatur (Illinois), Water Revenue, Series 1985 (New South Water Treatment), Adjustable A-2 10,700,000
Mode Variable Rate Demand/Commercial Paper Bonds, 3.750%, 11/01/99
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.2%
3,000,000 Indiana Bond Bank, Advance Funding Program Notes, Series 1999 A-2, 3.500%, 1/19/00 MIG-1 3,003,039
5,000,000 Washington Township Metropolitan School District (Indiana), Marion County, 1999 N/R 5,005,706
Second Series, Temporary Loan Warrants, 4.000%, 12/31/99
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 5.5%
6,500,000 Iowa Finance Authority, Solid Waste Disposal Revenue (Cedar River Paper Company), A-1+ 6,500,000
Variable Rate Demand Bonds, Series 1995A, 3.000%, 5/01/25+ (Alternative Minimum Tax)
4,500,000 Iowa Higher Education Loan Authority, Private College, Variable Rate Demand Revenue N/R 4,500,000
Bonds (Maharishi University Project), Series 1999, 3.350%, 3/01/29+
2,900,000 City of Eddyville, Iowa, Industrial Development Revenue Bonds (Heartland Lysine, Inc. N/R 2,900,000
Project), Series 1985, Variable Rate Demand Bonds, 3.750%, 11/01/03+
</TABLE>
5
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Municipal Money Market Fund (continued)
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Kentucky - 5.4%
$ 1,600,000 Carroll County (Kentucky), Collateralized Solid Waste Disposal Facilities Revenue VMIG-1 $1,600,000
(Kentucky Utilities Company Project), Variable Rate Demand Bonds, Series 1994A,
3.000%, 11/01/24+
3,100,000 City of Covington, Kentucky, Industrial Building Revenue Bonds, Series 1999 (Baptist N/R 3,100,000
Convalescent Center Project), Variable Rate Demand Bonds, 3.350%, 4/01/19+
9,005,000 Hancock County, Kentucky, Industrial Building Revenue Refunding Bonds (Southwire Company N/R 9,005,000
Project), Series 1990, Variable Rate Demand Bonds, 3.550%, 7/01/10+
- ------------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.5%
5,000,000 Ascension Parish Pollution Control (BASF Wyandotte Corporation), Variable Rate Demand P-1 5,000,000
Bonds, 2.900%, 12/01/05+
1,410,000 Kentwood, Louisiana, Industrial Development Adjustable Rate Demand Revenue Bonds, Series Aa-2 1,410,000
1993 Refunding (Suntory Water Group Inc.), 3.350%, 8/01/12+
- ------------------------------------------------------------------------------------------------------------------------------------
Maine - 1.0%
2,500,000 Maine Health and Higher Educational Facilities Authority, Variable Rate Hospital Revenue A-1+ 2,500,000
Bonds (VHA of New England Capital Asset Financing Program), 1985 Series B, 3.300%,
12/01/25+
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 2.8%
7,100,000 Michigan Job Development Authority, Limited Obligation Revenue Bonds (Frankenmuth Bavarian A-1 7,100,000
Inn Motor Lodge Project),
Series A, Variable Rate Demand Bonds, 3.625%, 9/01/15+
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.0%
4,985,000 City of Bloomington, Minnesota, Floating Rate Demand Bonds, Commercial Revenue Bonds A-1+ 4,985,000
(James Avenue Associates Project), Series 1985, Variable Rate Demand Bonds, 3.350%,
12/01/15+
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 7.9%
4,600,000 Health and Educational Facilities Authority of the State of Missouri, Variable Rate VMIG-1 4,600,000
Demand Bonds, Health Facilities Revenue Bonds (Bethesda Barclay), Series 1996A,
2.950%, 8/15/26+
2,150,000 Health and Educational Facilities Authority of the State of Missouri, School District SP-1+ 2,160,817
Advance Funding Note, Series 1999L,
Windsor C-1 School District, 4.250%, 9/19/00
5,000,000 Missouri Rural Water Finance Corporation, Public Projects Construction Notes, Series MIG-1 5,013,664
1998, 4.500%, 11/15/99
8,000,000 State Environmental Improvement and Energy Resources Authority of the State of VMIG-1 8,000,000
Missouri, Unit Priced Demand Adjustable Pollution Control Revenue Bonds, Series
1985A (Union Electric Company), Commercial Paper, 3.300%, 2/07/00
- ------------------------------------------------------------------------------------------------------------------------------------
Montana - 2.0%
5,000,000 Forsyth, Montana, Pollution Control Revenue Bonds (Pacificorp Colstrip), N/R 5,000,000
Variable Rate Demand Bonds, Series 1986, 3.100%, 12/01/16+ (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.0%
5,000,000 New Hampshire Higher Educational and Health Facilities Authority, Revenue A-1 5,000,000
Bonds, Hunt Community Issue, Series 1996, Variable Rate Demand Bonds, 3.300%, 5/01/26+
- ------------------------------------------------------------------------------------------------------------------------------------
New York - 1.2%
3,000,000 North Hempstead, Nassau County, New York, Bond Anticipation Notes, Series 1999, 4.000%, N/R 3,005,105
1/25/00
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 9.9%
7,000,000 Cuyahoga County, Ohio, Multifamily Revenue Bonds (National Terminal Apartments Project), A-1 7,000,000
Series 1999A, Variable Rate Demand Bonds, 3.390%, 7/01/29+
5,120,000 County of Erie, Ohio, Adjustable Rate Demand Bonds, Health Care Facilities Revenue VMIG-1 5,120,000
Bonds (The Commons of Providence Project), Series 1996B, Variable Rate Demand Bonds,
3.390%, 10/01/21+
3,445,000 County of Franklin, Ohio, Floating Rate Demand Bonds, Hospital Financing Revenue Bonds, N/R 3,445,000
Series 1993 (Traditions at Mill Run Project), Variable Rate Demand Bonds, 3.490%,
11/01/14+
3,000,000 Kings Local School District, Ohio, Bond Anticipation Notes, Series 1999, 4.190%, 3/01/00 N/R 3,010,839
6,500,000 Lorain County, Ohio, Industrial Development Multiple Mode Revenue (Skill Tools Project), N/R 6,500,000
Variable Rate Demand Bonds, Series 1999, 3.300%, 8/01/14+ (Alternative Minimum Tax)
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oregon - 1.2%
$ 3,000,000 Multnomah County School District 1J, Portland (Oregon), 1999 Tax and Revenue Anticipation MIG-1 $3,012,027
Notes, 4.000%, 6/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.1%
2,175,000 Butler County Industrial Development Authority (Pennsylvania), Industrial Development N/R 2,175,000
Revenue Bonds (Wise Business Forms Project), Series 1997, Variable Rate Demand Bonds,
3.340%, 8/01/18+
3,000,000 Philadelphia School District, Tax and Revenue Anticipation Notes, Series 1999, 4.000%, MIG-1 3,013,185
6/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 7.4%
8,500,000 Brownsville, Texas, Utility System, Commercial Paper Notes, Series A, 3.150%, 9/03/99 A-1+ 8,500,000
1,500,000 City of El Paso, Texas, Industrial Development Authority, Incorporated, Industrial N/R 1,500,000
Development Revenue Bonds (Contel Cellular Inc. Project), Series 1985, Variable
Rate Demand Bonds, 4.713%, 2/01/04+
3,000,000 Midlothian, Texas, Industrial Development Corporation, Exempt Facilities Revenue VMIG-1 3,000,000
(Texas Industries Inc. Project), Variable Rate Demand Bonds, Series 1999, 3.100%,
5/01/29+
5,500,000 Sabine River Authority of Texas, Collateralized Pollution Control, Variable Rate Demand A-1+ 5,500,000
Bonds (Texas Utilities Electric Company), 2.850%, 4/01/30+ (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
Utah - 5.6%
3,000,000 Utah County, Utah, Tax and Revenue Anticipation Notes, Series 1999, 3.850%, 12/29/99 N/R 3,005,757
5,000,000 Davis County, Utah, Tax and Revenue Anticipation Notes, Series 1999, 3.850%, 12/29/99 N/R 5,009,579
3,000,000 Salt Lake County, Utah, Tax and Revenue Anticipation Notes, Series 1999, 4.000%, N/R 3,005,006
12/29/99
3,000,000 West Valley City (Utah), Industrial Development (Johnson Matthey Project), Series 1987, N/R 3,000,000
Variable Rate Demand Bonds, 3.050%, 12/01/11+
- ------------------------------------------------------------------------------------------------------------------------------------
Virginia - 2.3%
2,600,000 The Industrial Development Authority of the City of Norfolk, Floating Rate Industrial N/R 2,600,000
Development Revenue Bonds (Norfolk - Virginia Beach - Portsmouth MSA Limited
Partnership Project), Series 1984, Variable Rate Demand Bonds, 4.713%, 11/01/04+
3,300,000 The Industrial Development Authority of the City of Richmond, Floating Rate Industrial N/R 3,300,000
Development Revenue Bonds, (Richmond MSA Limited Partnership Project), Variable Rate
Demand Bonds, 4.713%, 11/01/04+
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 3.1%
4,400,000 Washington Health Care Facilities Authority, Variable Rate Demand Revenue Bonds, Series A-2 4,400,000
1984 (Adventist Health System - West/Walla Walla General Hospital), 3.450%, 9/01/09+
3,400,000 Housing Authority of the City of Tacoma (Washington), Adjustable Rate Demand Revenue N/R 3,400,000
Bonds, Series 1998 (Crown Assisted Living Project), 3.300%, 6/01/28+
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 6.9%
8,000,000 Wisconsin Health and Educational Facilities Authority, Unit Priced Demand Adjustable VMIG-1 8,000,000
Revenue Bonds (Alexian Village of Milwaukee, Inc. - Refinancing), Series 1988A,
3.500%, 3/01/17+
3,000,000 Wisconsin Health and Educational Facilities Authority, Adjustable Put Option Revenue A-1 3,000,000
Bonds, Series 1997 (Froedtert Memorial Lutheran Hospital Trust), 3.300%, 4/01/27+
3,400,000 Cedarburg, Wisconsin, School District, Tax and Revenue Anticipation Notes, 3.600%, N/R 3,400,187
9/20/99
3,000,000 Mukwango Area School District, Waukesha and Walworth Counties, Wisconsin, Bonds MIG-1 3,003,180
Anticipation Notes, Series 1999, 3.750%, 11/01/99
- ------------------------------------------------------------------------------------------------------------------------------------
$249,870,000 Total Investments - 99.3% 249,968,091
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.7% 1,709,813
---------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $251,677,904
=====================================================================================================================
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The 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.
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Tax-Exempt Money Market Fund
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Staples - 5.2%
$ 3,900,000 San Dimas (California), Industrial Development Revenue Bonds (Bausch & Lomb N/R $ 3,900,000
Incorporated), Series 1985, Variable Rate Demand Bonds, 3.500%, 12/01/15+
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 9.4%
3,500,000 California Health Facilities Financing Authority, Hospital Revenue Bonds, Series VMIG-1 3,500,000
1998A (Adventist Health Systems West), Variable Rate Demand Bonds, 2.650%, 9/01/28+
3,500,000 California Health Facilities Authority, Variable Rate Revenue Bonds (St. Joseph VMIG-1 3,500,000
Health System), Variable Rate Demand Bonds, 2.400%, 7/01/09+
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 4.8%
2,570,000 City of Chico, California, Multifamily Housing Revenue Refunding Bonds, Series N/R 2,570,000
1995A (Sycamore Glen Project), Variable Rate Demand Bonds, 3.450%, 4/07/14+
1,000,000 Los Angeles Community Redevelopment Agency, Multifamily Housing Revenue Bonds, Series VMIG-2 1,000,000
1985 (Skyline at South Park Apartments Phase II), Variable Rate Demand Bonds,
4.450%, 12/01/05+
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 4.0%
3,000,000 City of Santa Ana, Multi-Modal Interchangeable Rate Health Facility Revenue Bonds A-1 3,000,000
(Town and Country Manor Project), Series 1990, Variable Rate Demand Bonds,
2.650%, 10/01/20+
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 19.9%
2,400,000 Hillsborough City School District (County of San Mateo, California), 1999 Tax and SP-1+ 2,418,022
Revenue Anticipation Notes, 4.250%, 8/30/00
3,000,000 Irvine Ranch Water District (California), Consolidated Improvement Districts, Series VMIG-1 3,000,000
1989, Variable Rate Demand Bonds, 2.500%, 6/01/15+
1,200,000 Irvine Ranch Water District, Variable Rate Demand Bonds, 2.400%, 8/01/16+ VMIG-1 1,200,000
2,000,000 Millbrae School District (County of Mateo, California), Tax and Revenue Anticipation SP-1+ 2,009,596
Notes, Series 1999, 4.000%, 6/30/00
2,500,000 City of Ontario (County of San Bernardino, California), 1999 Tax and Revenue SP-1+ 2,511,601
Anticipation Notes, 4.000%, 6/30/00
1,250,000 San Carlos School District (County of San Mateo, California), 1999 Tax and Revenue SP-1+ 1,255,998
Anticipation Notes, 4.000%, 6/30/00
500,000 San Diego County, California, 1998 Tax and Revenue Anticipation Notes, 4.500%, 9/30/99 MIG-1 500,386
2,000,000 San Diego County, California, Teeter Obligation Tax Exempt Commercial Paper P-1 2,000,000
Notes, Series B-1, 3.300%, 2/02/00
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 20.4%
2,000,000 Hacienda La Puente Unified School District, Certificates of Participation, Adult VMIG-1 2,000,000
Education Facility Financing Project, Series 1999, Variable Rate Demand
Obligations, 3.200%, 10/01/09+
1,900,000 City of Irvine (California), Assessment District No. 87-8, Limited Obligation VMIG-1 1,900,000
Improvement Bonds, Adjustable Rate Series, 2.400%, 9/02/24+
3,000,000 Los Angeles County Capital Assets Leasing Corporation (California), Commercial Paper, A-1+ 3,000,000
2.750%, 9/03/99
1,800,000 Oakland, California, Certificates of Participation, Capital Improvement Project, VMIG-1 1,800,000
Variable Rate Demand Obligations, Series 1985, 2.950%, 12/01/15+
3,000,000 Orange County (California), Improvement Bond Act of 1915, Irvine Coast Assessment VMIG-1 3,000,000
District No. 88-1, Limited Obligation Improvement, Variable Rate Demand Bonds,
2.650%, 9/02/18+
3,500,000 San Joaquin County Transportation Authority (California), Sales Tax Revenue, Commercial A-1+ 3,500,000
Paper Notes, 3.100%, 11/03/99
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Transportation - 6.4%
$ 1,790,000 San Diego Unified Port District (California), Subordinate Airport Revenue, A-1+ $1,790,000
Commercial Paper Notes (Lindberg Field), Series B, 3.250%, 2/01/00
2,970,000 San Francisco Airport Commission, San Francisco International Airport, A-1+ 2,970,000
Subordinate Commercial Paper Notes, Series B, 3.050%, 9/09/99
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 16.7%
3,500,000 California Pollution Control Financing Authority, Pollution Control Refunding A-1+ 3,500,000
Revenue Bonds (Pacific Gas and Electric Company), 1996 Series C, Variable Rate
Demand Bonds, 2.650%, 11/01/26+
2,000,000 City of Fresno, California, Industrial Development Revenue Bonds, Series 1985 N/R 2,000,000
(Fresno MSA Limited Partnership), Floating Rate Demand Bonds, 4.713%, 8/01/05+
3,500,000 Los Angeles Department of Water and Sewer (California), Electric Plant, A-1+ 3,500,000
Commercial Paper, 2.850%, 9/10/99
3,500,000 Sacramento Municipal Utility District (California), Commercial Paper Notes, VMIG-1 3,500,000
3.100%, 9/03/99
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 13.2%
3,360,000 Hillsborough (California), Certificates of Participation, Water and Sewer A-1 3,360,000
System Project, Series 1995A, Variable Rate Demand Bonds, 3.550%, 6/01/15+
3,500,000 City of Los Angeles, California, Wastewater Revenue, Commercial Paper, A-1+ 3,500,000
2.950%, 9/03/99
3,000,000 Orange County Sanitation District, Certificates of Participation, Variable VMIG-1 3,000,000
Rate Demand Bonds, 2.550%, 8/01/17+
- ------------------------------------------------------------------------------------------------------------------------------------
$74,640,000 Total Investments - 100.0% 74,685,603
================--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% 36,999
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $74,722,602
====================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The 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.
9
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New York Tax-Exempt Money Market Fund
August 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Cyclicals - 3.0%
$ 1,000,000 Dutchess County Industrial Development Agency, Industrial Development Revenue A-1 $ 1,000,000
Bonds (Toys "R" US - NYTEX Inc. Facility), Series 1984, Variable Rate Demand Bonds,
3.425%, 11/01/19+
- -----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 16.5%
1,300,000 New York State Dormitory Authority, New York Founding Charitable VMIG-1 1,300,000
Corporation, Revenue Bonds, Series 1997, Variable Rate Demand Bonds, 3.150%, 7/01/12+
1,400,000 New York State Dormitory Authority New York Public Library Revenue, VMIG-1 1,400,000
Variable Rate Demand Bonds, 1999A, 3.000%, 7/01/28+
1,400,000 Madison County Industrial Development Agency (New York), Civic Facility Revenue, A-2 1,400,000
Series 1999 (Cazenovia College) Variable Rate Demand Bonds, 3.250%, 6/01/19+
1,400,000 Syracuse Industrial Development Agency, Civic Facility Revenue, Multi-Modal VMIG-1 1,400,000
Interchangeable Rate Demand Bonds, Series 1993 (Syracuse University), 2.950%, 3/01/23+
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 9.3%
1,400,000 New York State Dormitory Authority, Sloan Kettering Cancer Center, VMIG-1 1,400,000
Series 1989C, Variable Rate Demand Revenue Bonds, 3.100%, 7/01/19+
1,000,000 New York State Housing Finance Agency, The Hospital for Special Surgery, Series VMIG-1 1,000,000
1985A, HSS Properties Corporation, Variable Rate Demand Bonds, 3.100%, 11/01/10+
700,000 New York State Medical Care Facilities Finance Agency (Lenox Hill VMIG-1 700,000
Hospital), Variable Rate Demand Bonds, Series 1990, 3.150%, 11/01/08+
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 8.4%
1,400,000 Monroe County (New York), Industrial Development Agency, Revenue Bonds, Series VMIG-1 1,400,000
1998A (Collegiate Housing Foundation), Variable Rate Demand Bonds, 3.150%, 10/01/28+
1,400,000 New York City Housing Development Corporation (Upper Fifth Avenue Project), VMIG-1 1,400,000
Variable Rate Demand Bonds, 3.300%, 1/01/16+
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 2.7%
900,000 Guilderland Industrial Development Agency, Variable Rate Demand Revenue Bonds P-1 900,000
(Northeastern Industrial Park Project), Series 1993A, 3.150%, 12/01/08+
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 9.9%
1,100,000 New York State Dormitory Authority, Series 1994 (St. Francis Center VMIG-1 1,100,000
at the Knolls, Inc.), Variable Rate Demand Bonds, 3.200%, 7/01/23+
800,000 New York State Dormitory Authority, Series 1995 (Beverwyck Inc.), VMIG-1 800,000
Variable Rate Demand Bonds, 3.250%, 7/01/25+
1,400,000 County of Otsego Industrial Development Agency (New York), Civic Facility Revenue A-2 1,400,000
Bonds (St. James Retirement Community Project - Letter of Credit Secured), Series 1998A,
Variable Rate Demand Bonds, 3.300%, 8/01/28+
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 32.0%
1,000,000 State of New York General Obligation Environmental Quality, A-1+ 1,000,000
Commercial Paper, Series 1997A, 3.150%, 11/01/99
1,000,000 Edgemont Union Free School District at Greenburgh (New York), N/R 1,002,815
Westchester County, Tax Anticipation Notes, Series 1999, 4.000%, 2/11/00
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/General (continued)
$ 1,000,000 County of Erie, New York, Revenue Anticipation Notes, Series 1998, 4.000%, 10/13/99 MIG-1 $ 1,001,117
1,340,000 Harrison, New York, Bonds Anticipation Notes, Series 1998, 3.250%, 12/17/99 Aa-1 1,340,951
1,500,000 Hilton Central School District, Monroe County, New York, Bond Anticipation N/R 1,502,255
Notes, Series 1999, 3.750%, 12/22/99
1,000,000 New York City General Obligation Bonds, Fiscal 1995, Series B, Variable VMIG-1 1,000,000
Rate Demand Bonds, 2.700%, 8/15/05+
1,000,000 New York City General Obligation Bonds, Variable Rate Demand Bonds, 3.150%, 2/01/21+ VMIG-1 1,000,000
1,400,000 New York City General Obligation Bonds, Variable Rate Demand Bonds, Fiscal VMIG-1 1,400,000
1996, Series J Subseries J3, 3.150%, 2/15/16+
1,400,000 North Hempstead, Nassau County, New York, Bond Anticipation Notes, Series N/R 1,402,173
1999, 4.000%, 1/25/00
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.2%
1,400,000 Metropolitan Transportation Authority, Transit Facilities, Commercial A-1+ 1,400,000
Paper, 3.150%, 9/03/99
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 8.4%
1,400,000 New York State Energy Research and Development Authority, Pollution Control P-1 1,400,000
Revenue Refunding, Series 1987A (Niagara Mohawk Power Corporation), Variable Rate
Demand Bonds, 2.950%, 3/01/27+
1,400,000 Long Island Power Authority (New York), Electric System Subordinated VMIG-1 1,400,000
Revenue Bonds, Series 7, Variable Rate Demand Bonds, 2.800%, 4/01/25+
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 4.5%
1,500,000 New York City Municipal Water Finance Authority, Water and Sewer System, A-1+ 1,500,000
Commercial Paper Notes, Series 3, 3.200%, 9/17/99
- -----------------------------------------------------------------------------------------------------------------------------------
$32,940,000 Total Investments - 98.9% 32,949,311
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 372,226
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $33,321,537
====================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The 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.
11
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 1999
<TABLE>
<CAPTION>
Municipal California New York
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in short-term municipal securities, at amortized cost, which approximates
market value (note 1) $249,968,091 $74,685,603 $32,949,311
Cash 711,222 -- 308,748
Receivables:
Interest 1,155,305 256,625 171,920
Investments sold 300,000 100,000 --
Other assets 353,799 77,892 26,329
- --------------------------------------------------------------------------------------------------------------------------------
Total assets 252,488,417 75,120,120 33,456,308
- --------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft -- 123,633 --
Accrued expenses:
Management fees (note 4) 60,849 12,048 102
12b-1 fees (notes 1 and 4) 91,093 52,843 12,761
Other 124,571 57,371 52,905
Dividends payable 534,000 151,623 69,003
- --------------------------------------------------------------------------------------------------------------------------------
Total liabilities 810,513 397,518 134,771
- --------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding (note 3) $251,677,904 $74,722,602 $33,321,537
================================================================================================================================
Shares outstanding (note 1):
Class A -- 28,278,105 --
Distribution Plan series -- 46,444,497 --
- --------------------------------------------------------------------------------------------------------------------------------
Total shares outstanding 251,677,904 74,722,602 33,321,537
================================================================================================================================
Net asset value, offering and redemption price per share (net assets divided
by shares outstanding) $1.00 $1.00 $1.00
================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
Statement of Operations (Unaudited)
Six Months Ended August 31, 1999
<TABLE>
<CAPTION>
Municipal
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income (note 1) $4,289,461
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 632,193
12b-1 fees (notes 1 and 4) 132,714
Shareholders' servicing agent fees and expenses 226,074
Custodian's fees and expenses 26,835
Directors' fees and expenses (note 4) 2,547
Professional fees 7,788
Shareholders' reports - printing and mailing expenses 32,223
Federal and state registration fees 14,001
Portfolio insurance expense 6,695
Other expenses 18,586
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,099,656
Custodian fee credit (note 1) (649)
Expense reimbursement (note 4) (146,544)
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses 952,463
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,336,998
Net gain from investment transactions (notes 1 and 2) --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $3,336,998
================================================================================================================================
California
- --------------------------------------------------------------------------------------------------------------------------------
Distribution Plan
Class A* Series Total
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income (note 1) $ 488,549 $ 863,606 $1,352,155
- --------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 65,521 111,624 177,145
12b-1 fees (notes 1 and 4) 41,713 27,772 69,485
Shareholders' servicing agent fees and expenses 4,346 18,504 22,850
Custodian's fees and expenses 6,754 14,182 20,936
Trustees' fees and expenses (note 4) 455 1,024 1,479
Professional fees 1,034 2,691 3,725
Shareholders' reports - printing and mailing expenses 9,161 4,511 13,672
Federal and state registration fees 3,729 1,232 4,961
Portfolio insurance expense 198 345 543
Other expenses 1,881 5,518 7,399
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 134,792 187,403 322,195
Custodian fee credit (note 1) (395) (656) (1,051)
Expense reimbursement (note 4) (44,307) (33,391) (77,698)
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses 90,090 153,356 243,446
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income 398,459 710,250 1,108,709
Net gain from investment transactions (notes 1 and 2) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 398,459 $ 710,250 $1,108,709
================================================================================================================================
</TABLE>
* Class A includes the operations of the Service Plan series of the Nuveen
California Tax-Free Money Market Fund through the close of business on June
25, 1999, and the operations of the Nuveen California Tax-Exempt Money
Market Fund Class A from such date through August 31, 1999 (see note 1 of
the Notes to Financial Statements).
See accompanying notes to financial statements.
13
<PAGE>
Statement of Operations (Unaudited) (continued)
Six Months Ended August 31, 1999
<TABLE>
<CAPTION>
New York*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income (note 1) $510,970
- ------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 66,234
12b-1 fees (notes 1 and 4) 18,582
Shareholders' servicing agent fees and expenses 16,474
Custodian's fees and expenses 17,497
Trustees' fees and expenses (note 4) 1,747
Professional fees 5,805
Shareholders' reports - printing and mailing expenses 2,169
Federal and state registration fees 468
Portfolio insurance expense 330
Other expenses 3,365
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 132,671
Custodian fee credit (note 1) (804)
Expense reimbursement (note 4) (40,794)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 91,073
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 419,897
Net gain from investment transactions (notes 1 and 2) --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $419,897
==============================================================================================================================
</TABLE>
* The statement includes the operations of the Distribution Plan series of
the Nuveen New York Tax-Free Money Market Fund through the close of
business on June 25, 1999, and the operations of the Nuveen New York Tax-
Exempt Money Market Fund from such date through August 31, 1999 (see note 1
of the Notes to Financial Statements).
See accompanying notes to financial statements.
14
<PAGE>
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Municipal
- ------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended
8/31/99 2/28/99
- ------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 3,336,998 $ 7,273,829
Net realized gain from investment transactions (notes 1 and 2) -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 3,336,998 7,273,829
- ------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (3,336,998) (7,273,829)
- ------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 97,744,918 159,407,682
Net proceeds from shares issued to shareholders due to reinvestment of distributions 3,030,724 6,997,731
- ------------------------------------------------------------------------------------------------------------------------
100,775,642 166,405,413
Cost of shares redeemed (101,451,894) (184,774,094)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (676,252) (18,368,681)
Net assets at the beginning of period 252,354,156 270,722,837
- ------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 251,677,904 $ 252,354,156
========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
California
- -------------------------------------------------------------------------------------------------------------------------
Six Months Ended 8/31/99
- -------------------------------------------------------------------------------------------------------------------------
Distribution Plan
Class A* Series Total
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment income $ 398,459 $ 710,250 $ 1,108,709
Net realized gain from investment transactions (notes 1 and 2) -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 398,459 710,250 1,108,709
- -------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (398,459) (710,250) (1,108,709)
- -------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from shares issued in the reorganization
of Nuveen California Tax-Free Money Market Fund
Institutional Series (note 1) 3,634,486 -- 3,634,486
Net proceeds from sale of shares 47,154,988 8,943,214 56,098,202
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 250,958 649,041 899,999
- -------------------------------------------------------------------------------------------------------------------------
51,040,432 9,592,255 60,632,687
Cost of shares redeemed (136,523,817) (23,289,611) 159,813,428
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (85,483,385) (13,697,356) (99,180,741)
Net assets at the beginning of period 113,761,490 60,141,853 173,903,343
- -------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 28,278,105 $ 46,444,497 $ 74,722,602
=========================================================================================================================
</TABLE>
* Class A information includes the change in net assets of the Service Plan
series of the Nuveen California Tax-Free Money Market Fund through June 25,
1999, and the changes in net assets of the Nuveen California Tax-Exempt
Money Market Fund Class A from such date through August 31, 1999 (see note
1 of the Notes to Financial Statements).
<TABLE>
<CAPTION>
California
- -------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/99
- -------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan
Series Series Total
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment income $ 2,778,800 $ 1,626,645 $ 4,405,445
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 2,778,800 1,626,645 4,405,445
- -------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (2,778,800) (1,626,645) (4,405,445)
- -------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 295,788,047 50,528,459 346,316,506
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 2,604,802 1,475,584 4,080,386
- -------------------------------------------------------------------------------------------------------------------
298,392,849 52,004,043 350,396,892
Cost of shares redeemed (271,546,956) (46,651,143) (318,198,099)
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets from share transactions 26,845,893 5,352,900 32,198,793
Net assets at the beginning of year 86,915,597 54,788,953 141,704,550
- -------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 113,761,490 $ 60,141,853 $ 173,903,343
===================================================================================================================
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
New York
- --------------------------------------------------------------------------------------------
Six Months Ended 8/31/99*
- --------------------------------------------------------------------------------------------
<S> <C>
Operations
Net investment income $ 419,897
Net realized gain from investment transactions (notes 1 and 2) --
- --------------------------------------------------------------------------------------------
Net increase in net assets from operations 419,897
- --------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (419,897)
- --------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from shares issued in the reorganization of
Nuveen New York Tax-Free Money Market Fund
Service Plan series (note 1) 1,473,077
Net proceeds from shares issued in the reorganization of
Nuveen New York Tax-Free Money Market Fund
Institutional series (note 1) 16,667
Net proceeds from sale of shares 36,869,173
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 382,198
- --------------------------------------------------------------------------------------------
38,741,115
Cost of shares redeemed (38,526,187)
- --------------------------------------------------------------------------------------------
Net increase in net assets from share transactions 214,928
Net assets at the beginning of period 33,106,609
- --------------------------------------------------------------------------------------------
Net assets at the end of period $ 33,321,537
============================================================================================
</TABLE>
*The six months ended August 31, 1999, information includes the changes in net
assets of the Distribution Plan series of the Nuveen New York Tax-Free Money
Market Fund through June 25, 1999, and the changes in net assets of the Nuveen
New York Tax-Exempt Money Market Fund from such date through August 31, 1999.
<TABLE>
<CAPTION>
<S> <C>
New York
- -----------------------------------------------------------------------
Year Ended 2/28/99
- -----------------------------------------------------------------------
Distribution Plan
Series
- -----------------------------------------------------------------------
Operations
Net investment income $ 835,048
- -----------------------------------------------------------------------
Net increase in net assets from operations 835,048
- -----------------------------------------------------------------------
Distributions to Shareholders (note 1) (835,048)
- -----------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
(note 1)
Net proceeds from sale of shares 16,651,466
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 810,058
- -----------------------------------------------------------------------
17,461,524
Cost of shares redeemed (13,209,032)
- -----------------------------------------------------------------------
Net increase in net assets from share transactions 4,252,492
Net assets at the beginning of year 28,854,117
- -----------------------------------------------------------------------
Net assets at the end of year $ 33,106,609
=======================================================================
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The money market funds (the "Funds") covered in this report are Nuveen Municipal
Money Market Fund ("Municipal"), formerly, Nuveen Tax-Free Reserves, Inc.,
Nuveen California Tax-Exempt Money Market Fund ("California"), formerly, Nuveen
California Tax-Free Money Market Fund and Nuveen New York Tax-Exempt Money
Market Fund ("New York"), formerly, Nuveen New York Tax-Free Money Market Fund.
Nuveen California Tax-Free Money Market Fund and Nuveen New York Tax-Free Money
Market Fund were reorganized after the close of business on June 25, 1999, as
approved by the shareholders of the Funds on June 22, 1999 and June 4, 1999,
respectively. As part of the reorganization of the Nuveen California Tax-Free
Money Market Fund, the Service Plan series and the Institutional series were
consolidated and renamed Class A in the California Fund. As part of the
reorganization of the Nuveen New York Tax-Free Money Market Fund, the Service
Plan series, the Distribution Plan series and the Institutional series were
consolidated into the New York Fund.
Municipal is an open-end diversified management company incorporated as a
Maryland corporation on July 6, 1982. California and New York are each a series
of the Nuveen Money Market Trust, an open-end management series investment
company organized as a Massachusetts business trust on January 15, 1999.
Each Fund invests substantially all of its assets in a diversified portfolio of
high quality, tax-exempt money market instruments for current income, the
stability of principal, and the maintenance of liquidity.
Each Fund issues its own shares at net asset value, which the Fund will seek to
maintain at $1.00 per share, without a sales charge.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Each Fund invests in short-term municipal securities maturing within one year
from the date of acquisition. Securities with a maturity of more than one year
in all cases have variable rate and demand features qualifying them as short-
term securities and are valued at amortized cost. On a dollar-weighted basis,
the average maturity of all such securities must be 90 days or less (at August
31, 1999, the dollar-weighted average life was 52 days for Municipal, 49 days
for California, and 26 days for New York).
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, 1999, 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.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend to shareholders of
record as of the close of each business day and payment is made or reinvestment
is credited to shareholder accounts after month-end. The Fund may also
distribute, from time to time, net ordinary taxable income and/or capital gains.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all of its tax-exempt net investment income, taxable
ordinary income and/or net realized capital gains from investment transactions,
if any, and to otherwise comply with the requirements of Subchapter M of the
Internal Revenue Code applicable to regulated investment companies. Therefore,
no federal income tax provision is required. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal income tax and designated state income taxes for
the California and New York Funds, to retain such tax-exempt status when
distributed to the shareholders of the Funds. Net ordinary taxable income and
net realized capital gain distributions, if any, are subject to federal
taxation.
18
<PAGE>
12b-1 Plan
Effective after the close of business on June 25, 1999, each Fund (excluding
California Distribution Plan series - see note 4 for details of the 12b-1 plan
currently in effect for the California Distribution Plan series) pays a fee to
reimburse John Nuveen & Co., Incorporated ("Nuveen"), a wholly owned subsidiary
of the John Nuveen Company, the Funds' principal underwriter and distributor,
for compensating authorized dealers of record, including Nuveen, for providing
ongoing services to the Fund or its shareholders. Nuveen may pay additional
amounts to such firms from its own resources at its discretion, and may retain
any portion of the 12b-1 fees not paid to such firms.
Insurance Commitments
Effective April 1, 1999, the Funds purchased liability insurance to protect
against a decline in the value of securities held in the Funds' portfolio caused
by the default of securities owned by the Funds. This policy replaces a similar
insurance policy from MBIA Insurance Corp. The insurance covers substantially
all of the Funds' investments except U.S. government securities. The maximum
total coverage for all Nuveen money market funds is $50 million, with certain
deductibles for each loss. The Funds pay the policy premiums. Coverage under the
policy is subject to certain conditions and may not be renewable upon
expiration. While the policy is intended to provide some protection against
credit risk and to help the Funds maintain a constant price per share of $1.00,
there is no guarantee that the insurance will do so.
Derivative Financial Instruments
The Funds may invest in transactions 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,
1999.
Custodian Fee Credit
Each Fund has an agreement with the custodian bank whereby the 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 generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
2. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
municipal securities during the six months ended August 31, 1999, were as
follows:
<TABLE>
<CAPTION>
Municipal California* New York**
<S> <C> <C> <C>
- ------------------------------------------------------
Purchases $465,643,117 $152,246,747 $47,312,927
Sales 466,820,000 252,374,150 49,590,000
======================================================
</TABLE>
*The securities transactions include the purchases and sales (including
maturities) of the Nuveen California Tax-Free Money Market Fund through the
close of business on June 25, 1999, and the purchases and sales (including
maturities) of the Nuveen California Tax-Exempt Money Market Fund from such
date through August 31, 1999 (see note 1).
**The securities transactions include the purchases and sales (including
maturities) of the Nuveen New York Tax-Free Money Market Fund through the
close of business on June 25, 1999, and the purchases and sales (including
maturities) of the Nuveen New York Tax-Exempt Money Market Fund from such date
through August 31, 1999 (see note 1).
At August 31, 1999, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for each
Fund.
3. Composition of Net Assets
At August 31, 1999, the Funds had common stock authorized of $.01 par value per
share. The composition of net assets as well as the number of authorized shares
were as follows:
<TABLE>
<CAPTION>
Municipal California New York
<S> <C> <C> <C>
- -----------------------------------------------------------------------
Capital paid in:
Class A $ -- $28,278,105 $ --
Distribution Plan series -- 46,444,497 --
- -----------------------------------------------------------------------
Net assets $ 251,677,904 $74,722,602 $33,321,537
- -----------------------------------------------------------------------
Authorized shares 2,000,000,000 Unlimited Unlimited
=======================================================================
</TABLE>
19
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
4. Management Fees and Other Transactions with Affiliates
Under the Funds' 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 as follows:
<TABLE>
<CAPTION>
Management Fees
-------------------------
Average Daily Net Assets Municipal CA, NY
- -----------------------------------------------------------
<S> <C> <C>
- -----------------------------------------------------------
For the first $500 million .500 of 1% .400 of 1%
For the next $500 million .475 of 1 .375 of 1
For net assets over $1 billion .450 of 1 .350 of 1
===========================================================
</TABLE>
For the periods prior to the close of business on June 25, 1999, pursuant to the
management agreements, the Adviser was obligated to reduce the management fee or
assume certain expenses of each Fund, in an amount necessary to prevent the
total expenses of each Fund (including the management fee and each Fund's share
of service payments under the Distribution and Service Plans, but excluding
interest, taxes, fees incurred in acquiring and disposing of portfolio
securities and, to the extent permitted, extraordinary expenses) in any fiscal
year from exceeding .75 of 1% of the average daily net assets of Municipal, and
.55 of 1% of the average daily net assets of the California and New York Funds.
Effective after the close of business on June 25, 1999, as approved by the
shareholders of Municipal and New York on June 4, 1999, and by shareholders of
California on June 22, 1999, the management fee was as follows:
<TABLE>
<CAPTION>
Management Fees
------------------------
Average Daily Net Assets Municipal CA, NY
<S> <C> <C>
- ----------------------------------------------------------
For the first $125 million .5000 of 1% .4000 of 1%
- ----------------------------------------------------------
For the next $125 million .4875 of 1 .3875 of 1
- ----------------------------------------------------------
For the next $250 million .4750 of 1 .3750 of 1
- ----------------------------------------------------------
For the next $500 million .4625 of 1 .3625 of 1
- ----------------------------------------------------------
For the next $1 billion .4500 of 1 .3500 of 1
- ----------------------------------------------------------
For net assets over $2 billion .4250 of 1 .3250 of 1
==========================================================
</TABLE>
Although not obligated to do so pursuant to the new advisory agreements, the
Adviser may for limited periods of time voluntarily agree to reimburse certain
expenses of the Funds and has agreed to limit the total operating expenses of
the Funds to .75 of 1% of the average daily net assets of Municipal and .55 of
1% of the average daily net assets of the California and New York Funds through
December 31, 1999.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
Pursuant to a distribution agreement with the California Distribution Plan
series, Nuveen pays sales and promotion expenses in connection with the offering
of shares (see note 1 for the 12b-1 plan applicable to Municipal, California
Class A and New York). The California Distribution Plan series has adopted a
Distribution Plan pursuant to Rule 12b-1 of the Investment Company Act of 1940
under which the California Distribution Plan series and Nuveen pay, in equal
amounts, fees to securities dealers and service organizations for services
rendered in the distribution of shares.
20
<PAGE>
5. Investment Composition
At August 31, 1999, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
Municipal California New York
- -------------------------------------------------------------------------
<S> <C> <C> <C>
Basic Materials 8% --% --%
Capital Goods 6 -- --
Consumer Cyclicals 4 -- 3
Consumer Staples 2 5 --
Education and Civic Organizations 8 -- 17
Health Care 9 10 9
Housing/Multifamily 4 5 9
Industrial/Other 6 -- 3
Long-Term Care 10 4 10
Tax Obligation/General 18 20 32
Tax Obligation/Limited 5 20 --
Transportation -- 6 4
Utilities 16 17 8
Water and Sewer 4 13 5
- -------------------------------------------------------------------------
100% 100% 100%
=========================================================================
</TABLE>
At August 31, 1999, certain investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions (83% for Municipal, 88%
for California, and 84% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
21
<PAGE>
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio
Municipal of Net
Ratio of Investment
Less Expenses Income to
Beginning Distributions Ending to Average Average
Net Net from Net Net Ending Net Assets Net Assets
Year Ended Asset Investment Investment Asset Total Net Assets Before Credit/ Before Credit/
February 28/29, Value Income(a) Income Value Return (000) Reimbursement Reimbursement
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 (b) $1.00 $.01 $(.01) $1.00 1.32% $251,678 .86%* 2.51%*
1999 1.00 .03 (.03) 1.00 2.85 252,354 .80 2.79
1998 1.00 .03 (.03) 1.00 3.02 270,723 .81 2.96
1997 1.00 .03 (.03) 1.00 2.87 304,087 .80 2.82
1996 1.00 .03 (.03) 1.00 3.23 339,662 .79 3.18
1995 1.00 .03 (.03) 1.00 2.46 351,606 .78 2.40
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio
of Net
Ratio of Investment
Expenses Income to
to Average Average
Net Assets Net Assets
Year Ended After Credit/ After Credit/
February 28/29, Reimbursement (a) Reimbursement (a)
- -------------------------------------------------------------------------------
<S> <C> <C>
2000 (b) .75%* 2.62%*
1999 .75 2.84
1998 .75 3.02
1997 .75 2.87
1996 .75 3.22
1995 .75 2.43
- -------------------------------------------------------------------------------
</TABLE>
* Annualized.
(a) After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 4).
(b) For the six months ended August 31, 1999.
22
<PAGE>
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio
CALIFORNIA of Net
Ratio of Investment
Less Expenses Income to
Beginning Distributions Ending to Average Average
Net Net from Net Net Ending Net Assets Net Assets
Year Ended Asset Investment Investment Asset Total Net Assets Before Credit/ Before Credit/
February 28/29, Value Income(a) Income Value Return (000) Reimbursement Reimbursement
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (b)
2000 (c) $1.00 $.01 $(.01) $1.00 1.28% $ 28,278 .82%* 2.10%*
1999 1.00 .03 (.03) 1.00 2.81 113,761 .59 2.75
1998 1.00 .03 (.03) 1.00 3.13 86,916 .58 3.09
1997 1.00 .03 (.03) 1.00 2.94 95,306 .59 2.89
1996 1.00 .03 (.03) 1.00 3.32 70,722 .56 3.28
1995 1.00 .03 (.03) 1.00 2.59 41,772 .59 2.15
Distribution Plan series
2000 (d) 1.00 .03 (.03) 1.00 1.28 46,444 .67* 2.42*
1999 1.00 .03 (.03) 1.00 2.81 60,142 .63 2.72
1998 1.00 .03 (.03) 1.00 3.13 54,789 .66 3.02
1997 1.00 .03 (.03) 1.00 2.94 57,490 .61 2.87
1996 1.00 .03 (.03) 1.00 3.31 73,020 .62 3.23
1995 1.00 .03 (.03) 1.00 2.60 67,157 .64 2.47
===================================================================================================================================
Ratios/Supplemental Data
---------------------------------------------
Ratio
of Net
Ratio of Investment
Expenses Income to
to Average Average
Net Assets Net Assets
Year Ended After Credit/ After Credit/
February 28/29, Reimbursement (a) Reimbursement (a)
- -------------------------------------------------------------------------------
<S> <C> <C>
Class A (b)
2000 (c) .55%* 2.37%
1999 .55 2.79
1998 .55 3.12
1997 .55 2.93
1996 .54 3.30
1995 .55 2.19
Distribution Plan series
2000 (d) .55* 2.54*
1999 .55 2.80
1998 .55 3.13
1997 .55 2.93
1996 .55 3.30
1995 .55 2.56
</TABLE>
===============================================================================
* Annualized.
(a) After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 4).
(b) Class A information included prior to the six months ended August 31, 1999,
reflects the financial highlights of the Service Plan series of the Nuveen
California Tax-Free Money Market Fund (see note 1).
(c) For the six months ended August 31, 1999. Information includes the
financial highlights of the Service Plan series of the Nuveen California
Tax-Free Money Market Fund through the close of business on June 25, 1999,
and the financial highlights of the Nuveen California Tax-Exempt Money
Market Fund from such date through August 31, 1999 (see note 1).
(d) For the six months ended August 31, 1999.
23
<PAGE>
Financial Highlights (Unaudited)(continued)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
NEW YORK** Ratio
of Net
Ratio of Investment
Less Expenses Income to
Beginning Distributions Ending to Average Average
Net Net from Net Net Ending Net Assets Net Assets
Year Ended Asset Investment Investment Asset Total Net Assets Before Credit/ Before Credit/
February 28/29, Value Income(a) Income Value Return (000) Reimbursement Reimbursement
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000 (b) $1.00 $.01 $(.01) $1.00 1.28% $ 33,322 .80%* 2.28%*
1999 1.00 .03 (.03) 1.00 2.73 33,107 .72 2.54
1998 1.00 .03 (.03) 1.00 3.10 28,854 .89 2.75
1997 1.00 .03 (.03) 1.00 2.90 26,116 .92 2.52
1996 1.00 .03 (.03) 1.00 3.20 31,631 .94 2.80
1995 1.00 .02 (.02) 1.00 2.37 29,798 .79 2.14
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------
Ratio
of Net
Ratio of Investment
Expenses Income to
to Average Average
Net Assets Net Assets
Year Ended After Credit/ After Credit/
February 28/29, Reimbursement (a) Reimbursement (a)
- -------------------------------------------------------------------------------
<S> <C> <C>
2000 (b) .55%* 2.53%*
1999 .55 2.71
1998 .55 3.09
1997 .55 2.89
1996 .55 3.19
1995 .55 2.38
- -------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Information included prior to the six months ended August 31, 1999, reflects
the financial highlights of the Distribution Plan series of the Nuveen New
York Tax-Free Money Market Fund (see note 1).
(a) After custodian fee credit and expense reimbursement, where applicable
(notes 1 and 4).
(b) For the six months ended August 31, 1999. Information includes the financial
highlights of the Distribution Plan series of the Nuveen New York Tax-Free
Money Market Fund prior to the close of business on June 25, 1999, and the
financial highlights of the Nuveen New York Tax-Exempt Money Market Fund
from such date through August 31, 1999 (see note 1).
24
<PAGE>
Fund Information
Board of Trustees Transfer Agent and
Robert P. Bremner Shareholder Services
Lawrence H. Brown Chase Global Fund Services Company
Anne E. Impellizzeri P.O. Box 5186
Peter R. Sawers New York, NY 10274
William J. Schneider (800) 257-8787
Timothy R. Schwertfeger
Judith M. Stockdale Legal Counsel
Morgan, Lewis &
Fund Manager Bockius LLP
Nuveen Advisory Corp. Washington, D.C.
333 West Wacker Drive
Chicago, IL 60606 Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
25
<PAGE>
SERVING
Investors for Generations
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to
disciplined long-term investment strategies whose aim is to provide consistent,
competitive performance over time -- with moderated risk. We emphasize quality
securities carefully chosen through in-depth research, and we follow those
securities closely over time to ensure that they continue to meet our exacting
standards.
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. Our growth,
growth and income, income, and tax-free funds, along with our defined portfolios
and private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
[PHOTO OF JOHN NUVEEN SR. APPEARS HERE]
John Nuveen, Sr.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com MSA-1-8-99
