<PAGE>
ANNUAL REPORT February 29, 2000
NUVEEN
Investments
NUVEEN
MONEY MARKET
FUNDS
Money Market Fund
[Photo Appears Here]
<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 Report of Independent Public Accountants
13 Fund Information
<PAGE>
DEAR
Shareholder,
[Photo of Timothy R. Schwertfeger Appears Here]
Timothy R. Schwertfeger
Chairman of the Board
"We are dedicated to helping you and your financial advisor develop a family
wealth management strategy unique to you and your goals and values."
Setting financial goals is an important first step toward building wealth. At
Nuveen Investments, we believe those goals should not be considered ends in
themselves. Rather, you and your financial advisor's focus should be on
realizing your life's dreams--the things that matter most to you and how you can
make them happen--or make them better.
Through a well-crafted financial plan, you have the chance to shape future
generations--to broaden your sphere of influence--to leave your legacy.
As you develop that plan, you'll want to consider the different ways your
success can benefit others. You may find that you want to create a new set of
goals to achieve this. Working with your financial advisor, you have the ability
to make those dreams a reality--for yourself and future generations.
A Trusted Resource As you face some of the most important, lasting decisions you
and your family will make, you'll want to draw upon the support, counsel and
objectivity of a trusted advisor. That's because your financial advisor has the
expertise and access to other professionals who can help you make informed
choices--choices that affect not only your loved ones today, but those your
legacy will touch in the future.
Your financial advisor can provide sound financial insight, an
integrated approach to your investments and can serve as a knowledgeable friend
with your family's best interest at heart.
Family Wealth Management Too often, family wealth management is thought of in
one dimension--as the stewardship of your household's financial resources. At
Nuveen Investments, we think of family wealth management as the map to help you
reach your financial, and your life's, destinations. It's a multi-faceted
strategy to plan for not just your needs, but the needs of future generations.
We are dedicated to helping you and your financial advisor develop a
family wealth management strategy unique to you and your goals and values.
The Economic Environment You may be reading this report at the suggestion of
your financial advisor. I want to briefly report on the economic environment in
which your Nuveen investment performed.
The end of your fund's fiscal period, February 29, 2000, was an
important day in our nation's economic life. It marked the 107th month of
continued economic expansion, the longest period of expansion in history. The
only period to rival that length was the 106-month expansion from February 1961
to December 1969, a period known best for its military conflicts, domestic
unrest and soaring inflation.
That was then; this is now.
ANNUAL REPORT page 1
<PAGE>
Nuveen is dedicated to providing investors access to a team of highly
experienced investment managers, each overseeing portfolios within their
specific areas of expertise. This select group of asset management firms directs
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 income-oriented funds feature portfolio management by 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. Drawing upon 300 combined years of
investment experience, the Nuveen team of portfolio managers and research
analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence and trading leverage of a market leader.
The vigilant inflationary watch of Federal Reserve Chairman Alan
Greenspan, the growth of the Internet and other technology-related developments
and the globalization of the economy are three reasons for continued economic
health.
In their battle to keep inflation at bay, Greenspan's Fed raised
interest rates on February 2, 2000, and again on March 21, 2000. The latest
increase marked the fifth time the Fed has raised the federal funds rate--the
interest that banks charge each other on overnight loans--since June 1999.
Over the short term, the inflation threat has meant increased price
fluctuations in the equity markets. Part of that is due to the fact that
investors and the various markets have been watching--and reacting to--every
announcement concerning economic statistics.
Longer term, we believe there's still faith in the emerging paradigm,
which holds that improvements in productivity enable us to have both economic
growth and low inflation at the same time. The 1960's 106-month expansion that I
noted earlier was fueled by government spending. Today's economy has been fueled
by consumer spending and improved productivity.
Performance Review 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. I'm pleased to report that despite market
volatility, the Nuveen Money Market Fund continued to provide investors with
attractive short-term rates. As of February 29, 2000, Nuveen Money Market Fund
offered investors a 7-day yield of 4.68%. Please see the Fund Spotlight in this
report for more information.
In Closing We believe the potential presence of inflation and price
swings in the markets reinforce the importance of working with an advisor,
staying focused on the long term and adhering to your financial plan. With a
sound plan in place, you may be better positioned to weather the markets' ups
and downs. As you pursue your life's dreams, your financial advisor can serve as
a valuable resource in helping you keep market events in perspective while you
focus on your overall financial plan.
For more information on any Nuveen investment, including a prospectus,
contact your financial advisor. Or call Nuveen at (800) 621-7227 or visit our
Internet site at www.nuveen.com. Please read the prospectus carefully before you
invest or send money.
Since 1898, Nuveen has been synonymous with investments that stand the
test of time. We are committed to maintaining that reputation and working with
financial advisors to provide investment solutions that help individuals achieve
their lives dreams. Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 14, 2000
ANNUAL REPORT page 2
<PAGE>
NUVEEN MONEY MARKET FUND
Fund Spotlight as of February 29, 2000
Portfolio Statistics
Inception Date 6/99
- ---------------------------------------
Net Assets $8.4 million
- ---------------------------------------
Average Weighted Maturity 13.08 days
- ---------------------------------------
Yields
SEC 7-Day Yield 4.68%
- ---------------------------------------
SEC 30-Day Yield 4.83%
- ---------------------------------------
Diversification (as a % of market value)
Basic Materials 17%
- ---------------------------------------
Financials 16%
- ---------------------------------------
Consumer Staples 11%
- ---------------------------------------
Healthcare 11%
- ---------------------------------------
Consumer Cyclicals 10%
- ---------------------------------------
Utilities 9%
- ---------------------------------------
Capital Goods 7%
- ---------------------------------------
Industrial (Other) 4%
- ---------------------------------------
Long-Term Care 4%
- ---------------------------------------
Technology 4%
- ---------------------------------------
Transportation 4%
- ---------------------------------------
Education and Civic Organizations 2%
- ---------------------------------------
Housing (Multifamily) 1%
- ---------------------------------------
Past performance is no guarantee of future results.
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of an investment in the fund at $1.00 per share, it is
possible to lose money by investing in the fund.
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.
ANNUAL REPORT page 3
<PAGE>
Portfolio of Investments
Nuveen Money Market Fund
February 29, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CERTIFICATES of DEPOSIT - 0.6%
$ 50 MBNA America Bank, N.A., 5.400%, 6/16/00 N/R $ 49,923
=================---------------------------------------------------------------------------------------------------------
COMMERCIAL PAPER - 61.2%
$ 150 Allmerica Financial Corporation, 0.000%, 3/09/00 A-1 149,804
300 Allstate Corporation, 0.000%, 3/06/00 A-1 299,760
300 AT&T Corporation, 0.000%, 3/02/00 A-1+ 299,952
300 Coca-Cola Company, 0.000%, 5/01/00 A-1 297,031
300 Emerson Electric Company, 0.000%, 3/02/00 A-1+ 299,952
300 Ford Motor Credit Corporation, 0.000%, 4/06/00 A-1 298,263
300 Gillette Company, 0.000%, 3/17/00 A-1+ 299,234
200 Hasbro Incorporated, 0.000%, 3/10/00 A-1 199,713
300 MDU Resources, 0.000%, 3/08/00 A-1 299,663
300 Merrill Lynch, 0.000%, 3/10/00 A-1+ 299,573
300 MetLife Funding, 0.000%, 3/27/00 A-1+ 298,760
300 Motorola, Inc., 0.000%, 3/31/00 A-1 298,568
300 Pfizer Inc., 0.000%, 3/03/00 A-1+ 299,905
150 Southwestern Public Service Company, 0.000%, 3/28/00 A-1 149,346
300 Toyota Motor Credit Corporation, 0.000%, 3/23/00 A-1+ 298,952
300 United Parcel Service, 0.000%, 3/31/00 A-1+ 298,575
150 University of Chicago, 0.000%, 3/09/00 A-1+ 149,809
300 Walt Disney Company, 0.000%, 3/10/00 A-1 299,575
300 W.W. Grainger Corporation, 0.000%, 3/08/00 A-1+ 299,663
- --------------------------------------------------------------------------------------------------------------------------
$5,150 Total Commercial Paper 5,136,098
=================---------------------------------------------------------------------------------------------------------
TAXABLE MUNICIPAL BONDS - 29.7%
Florida - 1.2%
$ 100 Florida Housing Finance Authority, Taxable Affordable Housing Guarantee VMIG-1 100,000
Revenue Bonds, Variable Rate Demand Bonds, Series 1993A, 6.000%,
1/01/34+ (Mandatory put 3/02/00)
- --------------------------------------------------------------------------------------------------------------------------
Louisiana - 17.8%
1,500 Ascension Parish Pollution Control (BASF Wyandotte Corporation), Variable Rate P-1 1,500,000
Demand Bonds, 3.900%, 12/01/05+
- --------------------------------------------------------------------------------------------------------------------------
Minnesota - 3.6%
300 Port Authority of the City of Saint Paul, Minnesota, Variable Rate Demand A-1 300,000
Bonds, Industrial Development Revenue Bonds (Ideal Printers Project),
Series 1999B, 6.050%, 4/01/11+
- --------------------------------------------------------------------------------------------------------------------------
New York - 7.1%
300 Genessee Memorial Hospital Association, Taxable Adjustable Rate Notes, Series N/R 300,000
1997, 6.140%, 2/01/17+
300 Oswego County Industrial Development Agency (New York), Civic Facility N/R 300,000
Revenue, Series 1999B (O.H. Properties), Variable Rate Demand Bonds,
6.140%, 6/01/24+
- --------------------------------------------------------------------------------------------------------------------------
$2,500 Total Taxable Municipal Bonds 2,500,000
=================---------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAXABLE CORPORATE NOTES - 7.1%
$ 300 Budd Office Building Associates Limited Partnership, Taxable Adjustable Rate N/R $ 300,000
Notes, Series 1997, 6.140%, 10/01/47+
300 Fairborn Christel Manor, Inc., Floating Rate Demand Taxable Notes, Series N/R 300,000
1995, 6.140%, 6/01/10+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 600 Total Taxable Corporate Notes 600,000
============------------------------------------------------------------------------------------------------------------------------
$8,300 Total Investments - 98.6% 8,286,021
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 120,812
-------------------------------------------------------------------------------------------------------
Net Assets - 100% $8,406,833
=======================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants):
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
Nuveen Money Market Fund
February 29, 2000
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments in short-term securities, at amortized cost, which approximates market value $8,286,021
Cash 103,259
Receivables:
Fund manager 44,989
Interest 21,513
Other assets 92
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 8,455,874
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued expenses:
12b-1 fees 8,130
Other 18,392
Dividends payable 22,519
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 49,041
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $8,406,833
====================================================================================================================================
Shares outstanding:
Class A 4,315,822
Class B 713,458
Class C 934,847
Class R 2,442,706
- ------------------------------------------------------------------------------------------------------------------------------------
Total shares outstanding 8,406,833
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share (net assets divided by shares outstanding) $ 1.00
====================================================================================================================================
Statement of Operations
Nuveen Money Market Fund
For the period June 10, 1999 (commencement of operations) through February 29, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income $ 182,717
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 14,713
12b-1 service fees - Class A 2,959
12b-1 distribution and service fees - Class B 2,996
12b-1 distribution and service fees - Class C 2,582
Shareholders' servicing agent fees and expenses 1,034
Custodian's fees and expenses 33,698
Trustees' fees and expenses 69
Professional fees 6,169
Shareholders' reports - printing and mailing expenses 6,511
Federal and state registration fees 34,417
Other expenses 106
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 105,254
Custodian fee credit (1,836)
Expense reimbursement (73,628)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 29,790
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 152,927
Net gain from investment transactions -
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 152,927
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
Statement of Changes in Net Assets
Nuveen Money Market Fund
For the period June 10, 1999 (commencement of operations) through February 29,
2000
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 152,927
Net realized gain from investment transactions -
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 152,927
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders
From undistributed net investment income:
Class A (56,592)
Class B (12,275)
Class C (10,617)
Class R (73,443)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from distributions to shareholders (152,927)
- ------------------------------------------------------------------------------------------------------------------------------------
Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from sale of shares 13,607,662
Net proceeds from shares issued to shareholders due to reinvestment of distributions 56,984
- ------------------------------------------------------------------------------------------------------------------------------------
13,664,646
Cost of shares redeemed (5,357,813)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from share transactions 8,306,833
Net assets at the beginning of period 100,000
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 8,406,833
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
Notes to Financial Statements
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
accounting principles generally accepted in the United States.
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 February 29, 2000,
the dollar-weighted average life was 13.08 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
February 29, 2000, 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
annually. 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
February 29, 2000.
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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. Fund Shares
Transactions in Fund shares were as follows:
- -------------------------------------------------------------------------------
Shares sold:
Class A $ 6,806,544
Class B 1,880,840
Class C 2,466,518
Class R 2,453,760
Shares issued to shareholders due to reinvestment of distributions:
Class A 40,650
Class B 7,514
Class C 7,829
Class R 991
- -------------------------------------------------------------------------------
13,664,646
- -------------------------------------------------------------------------------
Shares redeemed:
Class A (2,556,372)
Class B (1,199,896)
Class C (1,564,500)
Class R (37,045)
- -------------------------------------------------------------------------------
(5,357,813)
- -------------------------------------------------------------------------------
Net increase $ 8,306,833
===============================================================================
3. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
securities during the period June 10, 1999 (commencement of operations) through
February 29, 2000, aggregated $43,975,468 and $35,827,000, respectively.
At February 29, 2000, 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:
Average Daily Net Assets Management Fee
- ------------------------------------------------------------------
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
==================================================================
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 (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 February 29, 2000, the Fund had an unlimited number of $.01 par value stock
authorized. Net assets consisted of $8,406,833 paid-in capital.
6. Investment Composition
At February 29, 2000, the revenue sources by purpose, expressed as a percent of
total investments, were as follows:
- ------------------------------------------------------------------
Basic Materials 17%
Capital Goods 7
Consumer Cyclicals 10
Consumer Staples 11
Education and Civic Organizations 2
Financials 16
Health Care 11
Housing/Multifamily 1
Industrial/Other 4
Long-Term Care 4
Technology 4
Transportation 4
Utilities 9
- ------------------------------------------------------------------
100%
==================================================================
For additional information regarding each investment security, refer to the
Portfolio of Investments.
10
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout the period June 10, 1999
(commencement of operations) through February 29, 2000:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------
Before Credit/ After
Reimbursement Reimbursement (a)
--------------------- -----------------------
Ratio Ratio
Less of Net of Net
Beginning Distributions Ratio of Investment Ratio of Investment
Net Net from Net Ending Ending Expenses Income Expenses Income
Year Ended Asset Investment Investment Net Asset Total Net Assets to Average to Average to Average to Average
February 28/29, Value Income Income Value Return (000) Net Assets Net Assets Net Assets Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A (6/99)
2000 (c) $ 1.00 $ .03 $ (.03) $ 1.00 3.28% $ 4,316 3.69%* 1.98%* .95%* 4.71%*
Class B (6/99)
2000 (c) 1.00 .03 (.03) 1.00 2.74 713 3.82* 1.91* 1.70* 4.03*
Class C (6/99)
2000 (c) 1.00 .03 (.03) 1.00 2.74 935 4.44* 1.31* 1.70* 4.04*
Class R (6/99)
2000 (c) 1.00 .03 (.03) 1.00 3.46 2,443 2.52* 2.93* .70* 4.74*
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
After Credit/
Reimbursement (b)
-----------------------
Ratio
of Net
Ratio of Investment
Expenses Income to
Year Ended to Average Average
February 28/29, Net Assets Net Assets
- -----------------------------------------------
<S> <C> <C>
class A (6/99)
2000 (c) .90%* 4.77%*
Class B (6/99)
2000 (c) 1.65* 4.09*
Class C (6/99)
2000 (c) 1.65* 4.10*
Class R (6/99)
2000 (c) .65* 4.80*
===============================================
</TABLE>
* Annualized
(a) After expense reimbursement from the investment adviser, where
applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) For the period June 10, 1999 (commencement of operations) through
February 29, 2000.
11
<PAGE>
Report of Independent Public Accountants
To the Board of Trustees and Shareholders of
Nuveen Money Market Fund
We have audited the accompanying statement of net assets of the Nuveen Money
Market Fund (a series of the Nuveen Money Market Trust) (a Massachusetts
business trust) including the portfolio of investments, as of February 29, 2000,
and the related statement of operations, the statement of changes in net assets
and the financial highlights for the period indicated thereon. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of February 29,
2000, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of the Nuveen
Money Market Fund as of February 29, 2000, the results of its operations, the
changes in its net assets and the financial highlights for the period indicated
thereon in conformity with accounting principles generally accepted in the
United States.
ARTHUR ANDERSEN LLP
Chicago, Illinois
April 14, 2000
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 Funds Services
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
13
<PAGE>
SERVING INVESTORS
FOR GENERATIONS
[Photo of John Nuveen, Sr. Appears Here]
John Nuveen, Sr.
A 100-Year Tradition of Quality Investments
Since 1898, John Nuveen & Co. Incorporated has been synonymous with investments
that withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Adviser Today
To find out how the Nuveen Innovation Fund might round out your investment
portfolio, contact your financial adviser today. Or call Nuveen at
(800) 257.8787 for more information. Ask your adviser or call for a prospectus
which details risks, fees and expenses. Please read the prospectus carefully
before you invest.
NUVEEN
Investments
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
<PAGE>
ANNUAL REPORT February 29, 2000
NUVEEN INVESTMENTS
NUVEEN
MONEY MARKET
FUNDS
Institutional Tax-Exempt
[PHOTO APPEARS HERE]
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and
Shareholder Services
Chase Global Funds Services Company
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
Contents
1 Dear Shareholder
3 Nuveen Institutional Tax-Exempt
Money Market Fund Spotlight
4 Portfolio of Investments
7 Statement of Net Assets
7 Statement of Operations
8 Statement of Changes in Net Assets
9 Notes to Financial Statements
12 Financial Highlights
13 Report of Independent Public Accountants
Shareholder Meeting Report
A special shareholder meeting was held in Chicago, Illinois on June 4, 1999
<TABLE>
<CAPTION>
- -----------------------------------------------------
Approval of the Trustees was reached as follows:
=====================================================
<S> <C>
Robert P. Bremner
For 290,212,736
Withhold 1,508,694
- -----------------------------------------------------
Total 291,721,430
=====================================================
Lawrence H. Brown
For 290,267,176
Withhold 1,454,254
- -----------------------------------------------------
Total 291,721,430
=====================================================
Anne E. Impellizzeri
For 290,267,176
Withhold 1,454,254
- -----------------------------------------------------
Total 291,721,430
=====================================================
Peter R. Sawers
For 290,267,176
Withhold 1,454,254
- -----------------------------------------------------
Total 291,721,430
=====================================================
William J. Schneider
For 290,267,176
Withhold 1,454,254
- -----------------------------------------------------
Total 291,721,430
=====================================================
Timothy R. Schwertfeger
For 290,267,176
Withhold 1,454,254
- -----------------------------------------------------
Total 291,721,430
=====================================================
Judith M. Stockdale
For 290,267,176
Withhold 1,454,254
- -----------------------------------------------------
Total 291,721,430
=====================================================
Ratification of auditors was reached as follows:
For 281,738,543
Against 5,286,351
Abstain 4,696,536
- -----------------------------------------------------
Total 291,721,430
=====================================================
Approval of new investment management agreement:
For 246,931,226
Against 16,024,921
Abstain 6,514,227
Broker Non-Vote 22,251,056
- -----------------------------------------------------
Total 291,721,430
=====================================================
Approval of plan and agreement of reorganization:
For 287,068,431
Against 14,426,701
Abstain 6,166,102
Broker Non-Vote 22,251,056
- -----------------------------------------------------
Total 329,912,290
=====================================================
Approval of amendments to the Fund's investment
objective:
For 255,671,676
Against 6,917,244
Abstain 6,881,453
Broker Non-Vote 22,251,057
- -----------------------------------------------------
Total 291,721,430
=====================================================
Approval of elimination of the Fund's fundamental
investment policy on unseasoned issues:
For 225,969,446
Against 39,481,838
Abstain 4,019,091
Broker Non-Vote 22,251,057
- -----------------------------------------------------
Total 291,721,430
=====================================================
Approval of elimination of the Fund's fundamental
investment policy on limitations on ownership of
securities:
For 260,470,013
Against 4,510,347
Abstain 4,490,013
Broker Non-Vote 22,251,057
- -----------------------------------------------------
Total 291,721,430
=====================================================
</TABLE>
<PAGE>
DEAR
Shareholder,
[Photo of Timothy R. Schwertfeger appears here]
Timothy R. Schwertfeger
Chairman of the Board
Setting financial goals is an important first step toward building wealth. At
Nuveen Investments, we believe those goals should not be considered ends in
themselves. Rather, you and your financial advisor's focus should be on
realizing your life's dreams -- the things that matter most to you and how you
can make them happen -- or make them better.
Through a well-crafted financial plan, you have the chance to shape future
generations -- to broaden your sphere of influence -- to leave your legacy.
As you develop that plan, you'll want to consider the different ways your
success can benefit others. You may find that you want to create a new set of
goals to achieve this. Working with your financial advisor, you have the ability
to make those dreams a reality -- for yourself and future generations.
A Trusted Resource As you face some of the most important, lasting decisions
you and your family will make, you'll want to draw upon the support, counsel and
objectivity of a trusted advisor. That's because your financial advisor has the
expertise and access to other professionals who can help you make informed
choices -- choices that affect not only your loved ones today, but those your
legacy will touch in the future.
Your financial advisor can provide sound financial insight, an integrated
approach to your investments and can serve as a knowledgeable friend with your
family's best interest at heart.
We are dedicated to helping you and your financial advisor develop a family
wealth management strategy unique to you and your goals and values.
Family Wealth Management Too often, family wealth management is thought of in
one dimension--as the stewardship of your household's financial resources. At
Nuveen Investments, we think of family wealth management as the map to help you
reach your financial, and your life's, destinations. It's a multi-faceted
strategy to plan for not just your needs, but the needs of future generations.
The Economic Environment You may be reading this report at the suggestion of
your financial advisor. I want to briefly report on the economic environment in
which your Nuveen investment performed.
The end of your fund's fiscal period, February 29, 2000, was an important
day in our nation's economic life. It marked the 107th month of continued
economic expansion, the longest period of expansion in history. The only period
to rival that length was the 106-month expansion from February 1961 to December
1969, a peri-
"We are dedicated to helping you and your financial advisor develop a family
wealth management strategy unique to you and your goals and values."
ANNUAL REPORT page 1
<PAGE>
Nuveen is dedicated to providing investors access to a team of highly
experienced investment managers, each overseeing portfolios within their
specific areas of expertise. This select group of asset management firms directs
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 income-oriented funds feature portfolio management by 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. Drawing upon 300 combined years of
investment experience, the Nuveen team of portfolio managers and research
analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence and trading leverage of a market leader.
od known best for its military conflicts, domestic unrest and soaring inflation.
That was then; this is now.
The vigilant inflationary watch of Federal Reserve Chairman Alan Greenspan,
the growth of the Internet and other technology-related developments and the
globalization of the economy are three reasons for continued economic health.
In their battle to keep inflation at bay, Greenspan's Fed raised interest
rates on February 2, 2000, and again on March 21, 2000. The latest increase
marked the fifth time the Fed has raised the federal funds rate -- the interest
that banks charge each other on overnight loans -- since June 1999.
Over the short term, the inflation threat has meant increased price
fluctuations in the equity markets. Part of that is due to the fact that
investors and the various markets have been watching -- and reacting to -- every
announcement concerning economic statistics.
Longer term, we believe there's still faith in the emerging paradigm, which
holds that improvements in productivity enable us to have both economic growth
and low inflation at the same time. The 1960's 106-month expansion that I noted
earlier was fueled by government spending. Today's economy has been fueled by
consumer spending and improved productivity.
Performance Review I'm pleased to report that despite market volatility, the
Nuveen Institutional Tax-Exempt Money Market Fund continued to provide investors
with attractive short-term rates. As of February 29, 2000, the fund offered
investors a 7-day tax-free yield of 3.31%, which represented a taxable-
equivalent yield of 4.80% for investors in the 31% federal income tax bracket.
Please see the Fund Spotlight in this report for more information.
In Closing We believe the potential presence of inflation and price swings in
the markets reinforce the importance of working with an advisor, staying focused
on the long term and adhering to your financial plan. With a sound plan in
place, you may be better positioned to weather the markets' ups and downs. As
you pursue your life's dreams, your financial advisor can serve as a valuable
resource in helping you keep market events in perspective while you focus on
your overall financial plan.
For more information on any Nuveen investment, including a prospectus,
contact your financial advisor. Or call Nuveen at (800) 621-7227 or visit our
Internet site at www.nuveen.com. Please read the prospectus carefully before you
invest or send money.
Since 1898, Nuveen has been synonymous with investments that stand the test
of time. We are committed to maintaining that reputation and working with
financial advisors to provide investment solutions that help individuals achieve
their lives dreams. Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 14, 2000
ANNUAL REPORT page 2
<PAGE>
NUVEEN INSTITUTIONAL TAX-EXEMPT MONEY MARKET FUND
Fund Spotlight as of February 29, 2000
Portfolio Statistics
Inception Date 3/81
- -------------------------------------------
Net Assets $235.3 million
- -------------------------------------------
Average Weighted Maturity 39.6 days
- -------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 3.31%
- -------------------------------------------
SEC 30-Day Yield 3.09%
- -------------------------------------------
Taxable Equivalent
(based on a federal income tax rate of 31%)
SEC 7-Day Yield 4.80%
- -------------------------------------------
SEC 30-Day Yield 4.48%
- -------------------------------------------
Diversification (as a % of market value)
Health Care 25%
- -------------------------------------------
Long-Term Care 23%
- -------------------------------------------
Tax Obligation (General) 21%
- -------------------------------------------
Education and Civic Organizations 8%
- -------------------------------------------
Housing (Multifamily) 7%
- -------------------------------------------
Financials 5%
- -------------------------------------------
Transportation 5%
- -------------------------------------------
Utilities 3%
- -------------------------------------------
Tax Obligation (Limited) 2%
- -------------------------------------------
Other 1%
- -------------------------------------------
Past performance is no guarantee of future results.
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund serves
to preserve the value of an investment in the fund at $1.00 per share, it is
possible to lose money by investing in the fund.
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.
Taxable Equivalent Yield The yield that would have to be earned on a security to
pay as much, after tax, as what is earned from a tax-exempt bond.
ANNUAL REPORT page 3
<PAGE>
Portfolio of Investments
Nuveen Institutional Tax-Exempt Money Market Fund
February 29, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama - 0.8%
$ 2,000 Dallas County Housing Development Corporation, Housing Development Revenue, Series 1999, A-1 $ 2,000,000
Variable Rate Demand Bonds, 4.060%, 7/01/19+
- ------------------------------------------------------------------------------------------------------------------------------------
Arizona - 1.9%
4,500 Rancho Ladera Certificates Trust, Variable Rate Certificates of Participation, 1999 Series VMIG-1 4,500,000
A (Interests in Industrial Development Authority of the City of Phoenix, Arizona),
Multifamily Housing Revenue Bonds, Series 1997, 4.050%, 10/01/08+
- ------------------------------------------------------------------------------------------------------------------------------------
District of Columbia - 3.8%
2,700 District of Columbia (Washington, D.C.) General Obligation Bonds, Variable Rate VMIG-1 2,700,000
Demand Revenue Bonds, Series 1992A-3, 3.900%, 10/01/07+
4,650 District of Columbia (Washington, D.C.) General Obligation Bonds, Variable Rate VMIG-1 4,650,000
Demand Revenue Bonds, Series 1992A-6, 3.900%, 10/01/07+
1,700 District of Columbia (Washington, D.C.) General Obligation Bonds, Variable Rate VMIG-1 1,700,000
Demand Revenue Bonds, Series 1992A-4, 3.900%, 10/01/07+
- ------------------------------------------------------------------------------------------------------------------------------------
Florida - 2.1%
5,000 Miami Health Facilities Authority (Miami Jewish Home and Hospital for the Aged, Aa-3 5,000,000
Inc.), Series 1992, Variable Rate Demand Bonds, 3.950%, 3/01/12+
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia - 5.5%
2,300 Columbia Elderly Authority, Residential Care Facilities Revenue Bonds (Augusta Resource Aa-3 2,300,000
Center on Aging, Inc.), Variable Rate Demand Bonds, Series 1994, 3.950%, 1/01/21+
10,705 Housing Authority of the County of DeKalb, Georgia, Multifamily Housing Revenue VMIG-1 10,705,000
Refunding Bonds (Lenox Pointe Project), Series 1996A, Variable Rate Demand Bonds,
4.000%, 11/01/23+
- ------------------------------------------------------------------------------------------------------------------------------------
Illinois - 2.5%
5,970 Illinois Educational Facilities Authority, Cultural Pool, Series 1985, Variable VMIG-1 5,970,000
Rate Demand Revenue Bonds, 3.800%, 12/01/25+
- ------------------------------------------------------------------------------------------------------------------------------------
Indiana - 4.3%
6,200 Fort Wayne, Indiana, Economic Development Revenue Bonds, Variable Rate Demand A-1+ 6,200,000
Bonds, Series 1998 (St. Anne Home and Retirement), 3.990%, 9/01/23+
4,000 Tippecanoe School Corporation, Indiana, Temporary Loan Warrants, 4.750%, 12/29/00 N/R 4,014,333
- ------------------------------------------------------------------------------------------------------------------------------------
Iowa - 2.1%
5,000 Iowa Finance Authority (Burlington Medical Center), Series 1997, Variable Rate A-1 5,000,000
Demand Revenue Bonds, 3.950%, 6/01/27+
- ------------------------------------------------------------------------------------------------------------------------------------
Kansas - 2.3%
1,400 Kansas State Development Finance Authority, Health Facilities Revenue Bonds, Series 1998M VMIG-1 1,400,000
(Stormont-Vail Regional Medical Center), Variable Rate Demand Bonds, 3.900%, 11/15/23+
4,000 City of Wamego, Kansas, Pollution Control Refunding Revenue Bonds (UtiliCorp United, A-1 4,000,000
Inc. Project), Series 1996, Variable Rate Demand Bonds, 3.850%, 3/01/26+
- ------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 4.5%
3,000 Kentucky Asset/Liability Commission, General Fund Tax and Revenue Anticipation Notes, MIG-1 3,002,623
1999 Series A, 4.250%, 6/28/00
7,580 Kentucky Development Finance Authority (Presbyterian Homes and Services Project), VMIG-1 7,580,000
Variable Rate Demand Bonds, Series 1988A, 4.010%, 11/01/18+
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Louisiana - 2.1%
$ 5,000 New Orleans Aviation Board, Revenue Bonds, Series 1993B, Variable Rate Demand Bonds, VMIG-1 $ 5,000,000
3.900%, 8/01/16+
- ------------------------------------------------------------------------------------------------------------------------------------
Michigan - 6.3%
11,800 Detroit Downtown Development Authority (Millender Center Project), Series 1988, A-1 11,800,000
Variable Rate Demand Revenue Bonds, 4.100%, 12/01/10+
3,100 Farmington Hills Hospital Finance Authority (Botsford General Hospital), Series VMIG-1 3,100,000
1991B, Variable Rate Demand Bonds, 3.900%, 2/15/16+
- ------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 8.1%
4,400 Bloomington Port Authority, Minnesota, Special Tax Revenue Refunding Bonds (Mall VMIG-1 4,400,000
of America Project), Series 1999B, Variable Rate Demand Bonds, 3.950%, 2/01/13+
1,480 City of Cohasset, Minnesota, Variable Rate Demand Revenue Refunding Bonds (Minnesota A-1+ 1,480,000
Power and Light Company Project), Series 1997A, 3.850%, 6/01/20+
2,000 City of Cohasset, Minnesota, Variable Rate Demand Revenue Refunding Bonds (Minnesota A-1+ 2,000,000
Power and Light Company Project), Series 1997D, 3.850%, 12/01/07+
4,000 Minneapolis/St. Paul Housing and Redevelopment Authority (Children's Health Care), SP-1+ 4,000,000
Series 1995, Variable Rate Demand Bonds, 3.900%, 8/15/25+
7,195 St. Paul Housing and Redevelopment Authority, Parking Revenue Bonds, Series VMIG-1 7,195,000
1995B, Variable Rate Demand Bonds, 3.950%, 8/01/17+
- ------------------------------------------------------------------------------------------------------------------------------------
Missouri - 4.4%
4,000 Health and Educational Facilities Authority of the State of Missouri, Variable Rate VMIG-1 4,000,000
Demand Bonds, Health Facilities Revenue Bonds (Bethesda Barclay), Series 1996A,
4.000%, 8/15/26+
2,600 The Industrial Development Authority of the City of Independence, Missouri, A-1+ 2,600,000
Variable Rate Demand Industrial Development Revenue Bonds (The Groves and Graceland
College Nursing Arts Center Projects), Series 1997A, 3.850%, 11/01/27+
3,700 Kansas City Industrial Development (Research Health System), Variable Rate Demand VMIG-1 3,700,000
Bonds, 3.900%, 4/15/15+
- ------------------------------------------------------------------------------------------------------------------------------------
Nebraska - 1.9%
4,355 Scotts Bluff County Hospital Authority, Elderly Residential Facility Refunding A-1 4,355,000
Revenue (Regional West Village Project), Variable Rate Demand Bonds, 3.900%, 12/01/31+
- ------------------------------------------------------------------------------------------------------------------------------------
Ohio - 2.1%
5,000 County of Hamilton, Ohio, Variable Rate Demand Bonds, Hospital Facilities Revenue VMIG-1 5,000,000
Bonds, Series 1997A (Children's Hospital Medical Center), 3.900%, 5/15/17+
- ------------------------------------------------------------------------------------------------------------------------------------
Oregon - 3.0%
7,000 Multnomah County School District 1J, Portland (Oregon), 1999 Tax and Revenue MIG-1 7,011,206
Anticipation Notes, 4.000%, 6/30/00
- ------------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 17.2%
4,000 Allegheny County Hospital Development Authority (Allegheny County, Pennsylvania), VMIG-1 4,000,000
Health Center Revenue Bonds, Series 1990C (Presbyterian-University Health System,
Inc.), Variable Rate Demand Bonds, 3.950%, 3/01/20+
1,630 Allegheny County Industrial Development Authority (Longwood at Oakmont, Inc. VMIG-1 1,630,000
Project), Series 1997B, Variable Rate Demand Revenue Bonds, 3.850%, 7/01/27+
1,500 Allegheny County Industrial Development Authority (Longwood at Oakmont, Inc. VMIG-1 1,500,000
Project), Series 1997C, Variable Rate Demand Revenue Bonds, 3.850%, 7/01/27+
4,000 Allegheny County Industrial Development Authority, Zoological Society of Pittsburgh, A-1 4,004,863
Adjustable Rate Demand Revenue Bonds, Series A of 1999, 4.000%, 6/01/19+ (Mandatory
put 6/01/00)
9,900 Dauphin County General Authority, Variable Rate Demand Revenue Bonds, Series of 1997 VMIG-1 9,900,000
(Education and Health Loan Program), 3.940%, 11/01/17+
</TABLE>
5
<PAGE>
Portfolio of Investments
Nuveen Institutional Tax-Exempt Money Market Fund (continued)
February 29, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Pennsylvania (continued)
$ 12,500 Lancaster County Hospital Authority, Series 1998B, Variable Rate Demand Revenue Bonds A-1 $ 12,500,000
(Willow Valley Lakes Manor), 3.940%, 12/01/18+
3,440 Philadelphia Authority for Industrial Development (Horizon House, Inc. Project), VMIG-1 3,440,000
Variable Rate Demand Revenue Bonds, Series 1998, 3.950%, 6/01/13+
3,250 Philadelphia Authority for Industrial Development (The Academy of Music of Aa-3 3,250,000
Philadelphia), Variable Rate Demand Revenue Bonds, Series 1998, 3.950%, 8/01/18+
- ------------------------------------------------------------------------------------------------------------------------------------
South Dakota - 5.0%
11,780 South Dakota Health and Educational Facilities Authority (McKennan Hospital), VMIG-1 11,780,000
Series 1994, Variable Rate Demand Revenue Bonds, 3.950%, 7/01/14+
- ------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 0.8%
1,900 Chattanooga-Hamilton Counties Hospital Authority, Hospital Revenue and Refunding A-1+ 1,900,000
Bonds (Erlanger Medical Center), Series 1987, Variable Rate Demand Bonds, 3.850%,
10/01/17+
- ------------------------------------------------------------------------------------------------------------------------------------
Texas - 5.1%
10,000 State of Texas, Tax and Revenue Anticipation Notes, Series 1999-2000A, 4.500%, 8/31/00 MIG-1 10,031,408
1,900 Texas Health Facilities Development Corporation (North Texas Pooled Health Program), VMIG-1 1,900,000
Variable Rate Demand Bonds, Series 1985A, 4.100%, 5/31/25+
- ------------------------------------------------------------------------------------------------------------------------------------
Washington - 2.5%
1,500 Washington State Housing Finance Commission, Variable Rate Demand Nonprofit A-1 1,500,000
Revenue Bonds (Emerald Heights Project), Series 1990, 3.850%, 1/01/21+
2,800 Washington State Housing Finance Commission, Nonprofit Revenue Bonds (Panorama VMIG-1 2,800,000
City Project), Series 1997, Refunding Bonds, Variable Rate Demand Bonds, 3.950%,
1/01/27+
1,620 Washington State Housing Finance Commission, Nonprofit Revenue Bonds (YMCA of VMIG-1 1,620,000
Snohomish County Program), Series 1994, Variable Rate Demand Bonds, 3.950%, 8/01/19+
- ------------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 10.8%
7,200 Wisconsin Health and Educational Facilities Authority, Series 1988A (Alexian VMIG-1 7,200,000
Village of Milwaukee), Commercial Paper, 3.800%, 5/08/00
3,000 Cedarburg School District, Series 1999, Tax and Revenue Anticipation Notes, N/R 3,003,766
4.150%, 9/08/00
4,400 Clinton Community School District, Rock and Walworth Counties, Wisconsin, Bond MIG-1 4,403,413
Anticipation Notes, 4.250%, 10/16/00
3,515 Monroe School District of Green County, Bond Anticipation Notes, Series 1999, MIG-1 3,518,542
4.400%, 6/12/00
7,000 Oshkosh Area School District, Wisconsin, Series 1999, Tax and Revenue MIG-1 7,009,702
Promissory Notes, 4.000%, 8/23/00
- ------------------------------------------------------------------------------------------------------------------------------------
$233,170 Total Investments - 99.1% 233,254,856
==============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 2,070,175
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $235,325,031
===================================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants):
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.
6
<PAGE>
Statement of Net Assets
Nuveen Institutional Tax-Exempt Money Market Fund
February 29, 2000
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------------------------------------------
Assets
Investments in short-term municipal securities, at amortized cost, which approximates market value $233,254,856
Cash 805,817
Receivables:
Fund manager 122,236
Interest 1,330,285
Investments sold 500,000
Other assets 9,590
- -------------------------------------------------------------------------------------------------------------------
Total assets 236,022,784
- -------------------------------------------------------------------------------------------------------------------
Liabilities
Other accrued expenses 70,222
Dividends payable 627,531
- -------------------------------------------------------------------------------------------------------------------
Total liabilities 697,753
- -------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $235,325,031
===================================================================================================================
Shares outstanding 235,325,031
===================================================================================================================
Net asset value, offering and redemption price per share (net assets divided by shares outstanding) $ 1.00
===================================================================================================================
</TABLE>
Statement of Operations*
Nuveen Institutional Tax-Exempt Money Market Fund
Year ended February 29, 2000
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------------------------------------------
Investment Income $ 10,478,824
- -------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 1,209,903
Shareholders' servicing agent fees and expenses 105,068
Custodian's fees and expenses 98,466
Trustees' fees and expenses 7,394
Professional fees 138,159
Shareholders' reports - printing and mailing expenses 39,135
Federal and state registration fees 57,141
Portfolio insurance expense 31,076
Other expenses 54,608
- -------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,740,950
Custodian fee credit (3,968)
Expense reimbursement (331,411)
- -------------------------------------------------------------------------------------------------------------------
Net expenses 1,405,571
- -------------------------------------------------------------------------------------------------------------------
Net investment income 9,073,253
Net realized gain (loss) from investment transactions (1,772)
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 9,071,481
===================================================================================================================
</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 February 29, 2000.
See accompanying notes to financial statements.
7
<PAGE>
Statement of Changes in Net Assets
Nuveen Institutional Tax-Exempt Money Market Fund
<TABLE>
<CAPTION>
Year Ended Year Ended
2/29/00* 2/28/99
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 9,073,253 $ 10,920,584
Net realized gain (loss) from investment transactions (1,772) --
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 9,071,481 10,920,584
- -------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (9,073,253) (10,920,584)
- -------------------------------------------------------------------------------------------------------------------------
Share Transactions (at constant net asset value of $1 per share)
Net proceeds from sale of shares 1,482,836,758 1,894,910,826
Net proceeds from shares issued to shareholders due to reinvestment of distributions 4,987,456 5,680,509
- -------------------------------------------------------------------------------------------------------------------------
1,487,824,214 1,900,591,335
Cost of shares redeemed (1,598,130,841) (2,028,459,624)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (110,306,627) (127,868,289)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets (110,308,399) (127,868,289)
Net assets at the beginning of year 345,633,430 473,501,719
- -------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 235,325,031 $ 345,633,430
=========================================================================================================================
</TABLE>
* Year ended February 29, 2000, 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 February 29, 2000.
See accompanying notes to financial statements.
8
<PAGE>
Notes to Financial Statements
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 previously approved
by shareholders. 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
accounting principles generally accepted in the United States.
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 February
29, 2000, the dollar-weighted average life was 39.6 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
February 29, 2000, 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
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. All income dividends
paid during the fiscal year ended February 29, 2000, have been designated Exempt
Interest Dividends. 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.
9
<PAGE>
Notes to Financial Statements (continued)
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 fiscal year ended February 29, 2000.
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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
municipal securities during the fiscal year ended February 29, 2000, aggregated
$1,293,857,568 and $1,404,148,000, 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 February 29, 2000.
At February 29, 2000, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes.
At February 29, 2000, the Fund had unused capital loss carryforwards of $44,203
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, $3,287 of the carryforwards will expire in the
year 2002, $15,535 will expire in the year 2003, $5,800 will expire in the year
2004, $17,809 will expire in the year 2007 and $1,772 will expire in the year
2008.
3. Management Fee and Other Transactions with Affiliates
For the periods prior to the close of business on June 25, 1999, under the
Fund's investment management agreement with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, the Fund paid
an annual management fee, payable monthly, which was 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 had 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.
10
<PAGE>
4. Composition of Net Assets
At February 29, 2000, the Fund had an unlimited number of $.01 par value stock
authorized. Net assets consisted of $235,369,234 paid-in capital and $44,203 of
accumulated net realized loss from investment transactions.
5. Investment Composition
At February 29, 2000, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
Education and Civic Organizations 8%
Financials 5
Health Care 25
Housing/Multifamily 7
Long-Term Care 23
Tax Obligation/General 21
Tax Obligation/Limited 2
Transportation 5
Utilities 3
Other 1
- --------------------------------------------------------------------------------
100%
================================================================================
</TABLE>
At February 29, 2000, 80% 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.
For additional information regarding each investment security, refer to the
Portfolio of Investments.
11
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout each period:
Nuveen Institutional Tax-Exempt Money Market Fund*
<TABLE>
<CAPTION>
Less
Beginning Distributions
Net Net from Net Ending
Year Ended Asset Investment Investment Net Asset Total
February 28/29, Value Income Income Value Return
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
2000 (c) $1.00 $.03 $(.03) $1.00 2.97%
1999 1.00 .03 (.03) 1.00 3.07
1998 1.00 .03 (.03) 1.00 3.27
1997 1.00 .03 (.03) 1.00 3.11
1996 1.00 .03 (.03) 1.00 3.42
============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement (a) Reimbursement (b)
------------------------- ------------------------- -------------------------
Ratio Ratio Ratio
of Net of Net of Net
Ratio of Investment Ratio of Investment Ratio of Investment
Ending Expenses Income Expenses Income Expenses Income to
Year Ended Net Assets to Average to Average to Average to Average to Average Average
February 28/29, (000) Net Assets Net Assets Net Assets Net Assets Net Assets Net Assets
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2000 (c) $235,325 .57% 2.84% .46% 2.95% .46% 2.95%
1999 345,633 .45 3.06 .45 3.06 .45 3.06
1998 473,502 .44 3.26 .44 3.26 .44 3.26
1997 515,403 .44 3.10 .44 3.10 .44 3.10
1996 610,053 .44 3.43 .44 3.43 .44 3.43
========================================================================================================================
</TABLE>
* Information included prior to the year ended February 29, 2000, reflects the
financial highlights of Nuveen Tax-Exempt Money Market Fund, Inc.
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) 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 February 29, 2000.
12
<PAGE>
Report of Independent Public Accountants
To the Board of Trustees and Shareholders of
Nuveen Institutional Tax-Exempt Money Market Fund
We have audited the accompanying statement of net assets of the Nuveen
Institutional Tax-Exempt Money Market Fund (a Massachusetts business trust)
including the portfolio of investments, as of February 29, 2000, and the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the two years then ended and the financial highlights for the
periods indicated thereon. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial highlights are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of February 29, 2000, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of the Nuveen
Institutional Tax-Exempt Money Market Fund as of February 29, 2000, the results
of its operations for the year then ended, the changes in its net assets for
each of the two years then ended and the financial highlights for the periods
indicated thereon in conformity with accounting principles generally accepted in
the United States.
ARTHUR ANDERSEN LLP
Chicago, Illinois
April 14, 2000
13
<PAGE>
SERVING INVESTORS
FOR GENERATIONS
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
John Nuveen, Sr.
A 100-Year Tradition of Quality Investments
Since 1898, John Nuveen & Co. Incorporated has been synonymous with investments
that withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Adviser Today
To find out how the Nuveen Innovation Fund might round out your investment
portfolio, contact your financial adviser today. Or call Nuveen at (800)
257.8787 for more information. Ask your adviser or call for a prospectus which
details risks, fees and expenses. Please read the prospectus carefully before
you invest.
NUVEEN INVESTMENTS
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
<PAGE>
ANNUAL REPORT February 29, 2000
NUVEEN
Investments
NUVEEN
MONEY MARKET
FUNDS
[PHOTO APPEARS HERE]
Municipal
California Tax-Exempt
New York Tax-Exempt
<PAGE>
Contents
1 Dear Shareholder
3 Nuveen Money Market Funds Spotlight
4 Portfolio of Investments
12 Statement of Net Assets
13 Statement of Operations
14 Statement of Changes in Net Assets
17 Notes to Financial Statements
21 Financial Highlights
22 Report of Independent Public Accountants
23 Shareholder Meeting Report
25 Fund Information
<PAGE>
DEAR
Shareholder,
Setting financial goals is an important first step toward building wealth. At
Nuveen Investments, we believe those goals should not be considered ends in
themselves. Rather, you and your financial advisor's focus should be on
realizing your life's dreams - the things that matter most to you and how you
can make them happen - or make them better.
Through a well-crafted financial plan, you have the chance to shape future
generations - to broaden your sphere of influence - to leave your legacy.
As you develop that plan, you'll want to consider the different ways your
success can benefit others. You may find that you want to create a new set of
goals to achieve this. Working with your financial advisor, you have the ability
to make those dreams a reality - for yourself and future generations.
A Trusted Resource As you face some of the most important, lasting decisions
you and your family will make, you'll want to draw upon the support, counsel and
objectivity of a trusted advisor. That's because your financial advisor has the
expertise and access to other professionals who can help you make informed
choices - choices that affect not only your loved ones today, but those your
legacy will touch in the future.
Your financial advisor can provide sound financial insight, an integrated
approach to your investments and can serve as a knowledgeable friend with your
family's best interest at heart.
Family Wealth Management Too often, family wealth management is thought of in
one dimension - as the stewardship of your household's financial resources. At
Nuveen Investments, we think of family wealth management as the map to help you
reach your financial, and your life's, destinations. It's a multi-faceted
strategy to plan for not just your needs, but the needs of future generations.
We are dedicated to helping you and your financial advisor develop a family
wealth management strategy unique to you and your goals and values.
The Economic Environment You may be reading this report at the suggestion of
your financial advisor. I want to briefly report on the economic environment in
which your Nuveen investment performed.
The end of your fund's fiscal period, February 29, 2000, was an important
day in our nation's economic life. It marked the 107th month of continued
economic expansion, the longest period of expansion in history. The only period
to rival that length was the 106-month expansion from February 1961 to December
1969, a period known best for its military conflicts, domestic unrest and
soaring inflation.
That was then; this is now.
The vigilant inflationary watch of Federal Reserve Chairman Alan Greenspan,
the growth of the Internet and other technology-related developments and the
globalization of the economy are three reasons for continued economic health.
[PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
Chairman of the Board
"We are dedicated to helping you and your financial advisor develop a family
wealth management strategy unique to you and your goals and values."
ANNUAL REPORT page 1
<PAGE>
In their battle to keep inflation at bay, Greenspan's Fed raised interest
rates on February 2, 2000 and again on March 21, 2000. The latest increase
marked the fifth time the Fed has raised the federal funds rate - the interest
that banks charge each other on overnight loans - since June 1999.
Over the short term, the inflation threat has meant increased price
fluctuations in the equity markets. Part of that is due to the fact that
investors and the various markets have been watching -- and reacting to -- every
announcement concerning economic statistics.
Longer term, there's still faith in the emerging paradigm, which holds that
improvements in productivity enable us to have both economic growth and low
inflation at the same time. The 1960's 106-month expansion that I noted earlier
was fueled by government spending. Today's economy has been fueled by consumer
spending and improved productivity.
Performance Review I'm pleased to report that despite market volatility,
Nuveen's municipal money market funds continued to provide investors with
attractive short-term rates. As of February 29, 2000, Nuveen Municipal Money
Market Fund offered investors a 7-day tax-free yield of 3.01%, which represented
a taxable-equivalent yield of 4.36% for investors in the 31% federal income tax
bracket. The tax-free 7-day yields for the two state money market funds were
2.99% for New York and 2.34% for California. The taxable-equivalent yield for
New York was 4.64% for investors in the 35.5% combined federal and state income
tax bracket. The taxable-equivalent yield for California was 3.74% for investors
in the 37.5% combined federal and state income tax bracket. Please see the Fund
Spotlight in this report for more information.
In Closing We believe the potential presence of inflation and price swings in
the markets reinforce the importance of working with an advisor, staying focused
on the long term and adhering to your financial plan. With a sound plan in
place, you may be better positioned to weather the markets' ups and downs. As
you pursue your life's dreams, your financial advisor can serve as a valuable
resource in helping you keep short-term market events in perspective while you
focus on your overall financial plan.
For more information on any Nuveen investment, including a prospectus,
contact your financial advisor. Or call Nuveen at (800) 621-7227 or visit our
Internet site at www.nuveen.com. Please read the prospectus carefully before you
invest or send money.
Since 1898, Nuveen has been synonymous with investments that stand the test
of time. We are committed to maintaining that reputation and working with
financial advisors to provide investment solutions that help individuals achieve
their lives dreams. Thank you for your continued confidence.
Sincerely,
/s/Tim Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 14, 2000
Nuveen is dedicated to providing investors access to a team of highly
experienced investment managers, each overseeing portfolios within their
specific areas of expertise. This select group of asset management firms directs
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 income-oriented funds feature portfolio management by 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. Drawing upon 300 combined years of
investment experience, the Nuveen team of portfolio managers and research
analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence and trading leverage of a market leader.
ANNUAL REPORT page 2
<PAGE>
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.
Taxable Equivalent Yield The yield that would have to be earned on a security
to pay as much, after tax, as what is earned from a tax-exempt bond.
Past performance is no guarantee of future results.
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency.
Although the fund serves to preserve the value of an investment in the fund at
$1.00 per share, it is possible to lose money by investing in the fund.
Fund Spotlight as of February 29, 2000
NUVEEN MUNICIPAL MONEY MARKET FUND
<TABLE>
<CAPTION>
Portfolio Statistics
<S> <C>
Inception Date 11/82
- -----------------------------------------------------------------
Net Assets $242.7 million
- -----------------------------------------------------------------
Average Weighted Maturity 27.37 days
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Tax-Free Yields
<S> <C>
SEC 7-Day Yield 3.01%
- -----------------------------------------------------------------
SEC 30-Day Yield 2.80%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Taxable Equivalent
(based on a federal income tax rate of 31%)
<S> <C>
SEC 7-Day Yield 4.36%
- -----------------------------------------------------------------
SEC 30-Day Yield 4.06%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Diversification (as a % of market value)
<S> <C>
Education and Civic Organizations 11%
- -----------------------------------------------------------------
Long-Term Care 11%
- -----------------------------------------------------------------
Tax Obligation (General) 11%
- -----------------------------------------------------------------
Utilities 11%
- -----------------------------------------------------------------
Capital Goods 10%
- -----------------------------------------------------------------
Healthcare 10%
- -----------------------------------------------------------------
Housing (Multifamily) 10%
- -----------------------------------------------------------------
Industrial/Other 9%
- -----------------------------------------------------------------
Basic Material 8%
- -----------------------------------------------------------------
Consumer Cyclicals 5%
- -----------------------------------------------------------------
Consumer Staples 2%
- -----------------------------------------------------------------
Tax Obligation (Limited) 1%
- -----------------------------------------------------------------
Transportation 1%
- -----------------------------------------------------------------
</TABLE>
NUVEEN CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
<TABLE>
<CAPTION>
Portfolio Statistics
<S> <C>
Inception Date 3/86
- -----------------------------------------------------------------
Net Assets $55.5 million
- -----------------------------------------------------------------
Average Weighted Maturity 31.52 days
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Tax-Free Yields
<S> <C>
SEC 7-Day Yield 2.34%
- -----------------------------------------------------------------
SEC 30-Day Yield 2.20%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Taxable Equivalent
(based on a combined federal and state income tax rate of 37.5%)
<S> <C>
SEC 7-Day Yield 3.74%
- -----------------------------------------------------------------
SEC 30-Day Yield 3.52%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Diversification (as a % of market value)
<S> <C>
Tax Obligation (General) 18%
- -----------------------------------------------------------------
Healthcare 14%
- -----------------------------------------------------------------
Utilities 14%
- -----------------------------------------------------------------
Tax Obligation (Limited) 13%
- -----------------------------------------------------------------
Housing (Multifamily) 12%
- -----------------------------------------------------------------
Transportation 9%
- -----------------------------------------------------------------
Water and Sewer 6%
- -----------------------------------------------------------------
Capital Goods 5%
- -----------------------------------------------------------------
Consumer Staples 5%
- -----------------------------------------------------------------
Industrial (Other) 4%
- -----------------------------------------------------------------
</TABLE>
NUVEEN NEW YORK TAX-EXEMPT MONEY MARKET FUND
<TABLE>
<CAPTION>
Portfolio Statistics
<S> <C>
Inception Date 2/87
- -----------------------------------------------------------------
Net Assets $31.6 million
- -----------------------------------------------------------------
Average Weighted Maturity 29.01 days
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Tax-Free Yields
<S> <C>
SEC 7-Day Yield 2.99%
- -----------------------------------------------------------------
SEC 30-Day Yield 2.73%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Taxable Equivalent
(based on a combined federal and state income tax rate of 35.5%)
<S> <C>
SEC 7-Day Yield 4.64%
- -----------------------------------------------------------------
SEC 30-Day Yield 4.23%
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Diversification (as a % of market value)
<S> <C>
Tax Obligation (General) 30%
- -----------------------------------------------------------------
Education and Civic Organizations 17%
- -----------------------------------------------------------------
Housing (Multifamily) 15%
- -----------------------------------------------------------------
Transportation 9%
- -----------------------------------------------------------------
Utilities 9%
- -----------------------------------------------------------------
Healthcare 7%
- -----------------------------------------------------------------
Long-Term Care 6%
- -----------------------------------------------------------------
Consumer Cyclicals 3%
- -----------------------------------------------------------------
Industrial (Other) 2%
- -----------------------------------------------------------------
Water and Sewer 2%
- -----------------------------------------------------------------
</TABLE>
ANNUAL REPORT page 3
<PAGE>
Portfolio of Investments
Nuveen Municipal Money Market Fund
February 29, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.5%
$ 1,500 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, 4.050%, 2/01/04+
2,250 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 - 1.4%
3,300 Maricopa County Pollution Control Corporation, Pollution Control Revenue Refunding A-1+ 3,300,000
Bonds (Arizona Public Service Company - Palo Verde Project), 1994 Series A, Variable
Rate Demand Bonds, 3.750%, 5/01/29+
- -----------------------------------------------------------------------------------------------------------------------------------
Florida - 2.8%
3,100 Pasco County Housing Finance Authority, Multi-Family Housing Revenue Bonds (Carlton Arms VMIG-1 3,100,000
of Magnolia Valley Project), Series 1985, Variable Rate Demand Bonds, 3.975%, 12/01/07+
3,800 Sarasota County Public Hospital District, Sarasota Memorial Hospital Project, Commercial A-1+ 3,800,000
Paper Notes, 3.350%, 3/13/00
- -----------------------------------------------------------------------------------------------------------------------------------
Illinois - 10.5%
7,000 Illinois Development Finance Authority, Pollution Control Revenue Bonds (Diamond-Star P-1 7,000,000
Motors Corporation Project), Series 1985, Variable Rate Demand Bonds, 4.800%, 12/01/08+
6,000 Illinois Educational Facilities Authority, Shedd Aquarium Society, Series 1987B, VMIG-1 6,000,000
Commercial Paper, 3.450%, 7/18/00
3,300 Illinois Health Facilities Authority, Healthcorp Affiliates, Series 1990 (Central VMIG-1 3,300,000
Du Page Hospital Association), Variable Rate Demand Revenue Bonds, 3.900%, 11/01/20+
5,430 City of Chicago, Illinois, Revenue Bonds (De La Salle Institute Project), Series 1997, A-1+ 5,430,000
Variable Rate Demand Bonds, 3.950%, 4/01/27+
1,065 County of Lake, Illinois, Variable Rate Demand Industrial Development Revenue Bonds, N/R 1,065,000
Series 1996A (Lake County Press, Inc. Project), 4.000%, 4/01/16+ (Alternative Minimum
Tax)
1,550 City of McHenry, Illinois, Variable Rate Demand Multifamily Housing Revenue Refunding N/R 1,550,000
Bonds (Westside Crest Apartments Project), Series 1996A, 4.000%, 3/01/21+ (Alternative
Minimum Tax)
1,000 City of McHenry, Illinois, Variable Rate Demand Multifamily Housing Revenue Refunding N/R 1,000,000
Bonds (Fawn Ridge Apartments Project), Series 1998, 4.000%, 12/01/24+ (Alternative
Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Indiana - 3.1%
3,615 City of Lawrence, Indiana, Adjustable Rate Economic Development Revenue Bonds, Series 1998 A-1+ 3,615,000
(Lawrence Affordable Housing, LLC Project), Variable Rate Demand Bonds, 3.950%, 9/01/28+
(Alternative Minimum Tax)
4,000 Tippecanoe School Corporation, Indiana, Temporary Loan Warrants, 4.750%, 12/29/00 N/R 4,014,333
- -----------------------------------------------------------------------------------------------------------------------------------
Iowa - 6.6%
8,800 Iowa Finance Authority, Solid Waste Disposal Revenue (Cedar River Paper Company), Variable A-1+ 8,800,000
Rate Demand Bonds, Series 1995A, 3.950%, 5/01/25+ (Alternative Minimum Tax)
4,400 Iowa Higher Education Loan Authority, Private College Variable Rate Demand Revenue Bonds N/R 4,400,000
(Maharishi University Project), Series 1999, 3.900%, 3/01/29+
2,900 City of Eddyville, Iowa, Industrial Development Revenue Bonds (Heartland Lysine, Inc. N/R 2,900,000
Project), Series 1985, Variable Rate Demand Bonds, 4.300%, 11/01/03+
- -----------------------------------------------------------------------------------------------------------------------------------
Kansas - 2.9%
2,100 Kansas Development Finance Authority, Revenue Bonds (Village Shalom Obligated Group), A-1+ 2,100,000
Series 1998BB, Variable Rate Demand Bonds, 3.850%, 11/15/28+
5,000 City of Olathe, Kansas, Recreational Facilities Revenue, Series 1999B (YMCA of Kansas VMIG-1 5,000,000
City Project), Variable Rate Demand Bonds, 4.000%, 11/01/14+
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
Kentucky - 6.8%
$ 1,600 Carroll County Collateralized Solid Waste Disposal Facilities (Kentucky Utilities VMIG-1 $ 1,600,000
Company Project), Variable Rate Demand Bonds, Series 1994A, 3.950%, 11/01/24+
(Alternative Minimum Tax)
3,100 City of Covington, Kentucky, Industrial Building Revenue Bonds, Series 1999 (Baptist N/R 3,100,000
Convalescent Center Project), Variable Rate Demand Bonds, 3.860%, 4/01/19+
9,005 Hancock County, Kentucky, Industrial Building Revenue Refunding Bonds (Southwire Company N/R 9,005,000
Project), Series 1990, Variable Rate Demand Bonds, 4.100%, 7/01/10+
2,825 City of Wilmore, Kentucky, Adjustable Rate Demand Housing Facilities Revenue Bonds, Series N/R 2,825,000
1999 (United Methodist Retirement Community, Inc. Project), 4.060%, 11/01/26+
- -----------------------------------------------------------------------------------------------------------------------------------
Louisiana - 0.6%
1,410 Kentwood, Louisiana, Industrial Development Adjustable Rate Demand Revenue Bonds, Series Aa-2 1,410,000
1993 Refunding (Suntory Water Group Inc.), 4.050%, 8/01/12+
- -----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 1.9%
4,548 Town of Milton, Massachusetts, Bond Anticipation Notes, 4.500%, 8/16/00 N/R 4,557,041
- -----------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.5%
7,100 Michigan Job Development Authority, Limited Obligation Revenue Bonds (Frankenmuth A-1 7,100,000
Bavarian Inn Motor Lodge Project), Series A, Variable Rate Demand Bonds, 4.000%,
9/01/15+
1,375 Michigan Strategic Fund, Variable Rate Demand Limited Obligation Revenue Bonds, Series 2000 N/R 1,375,000
(Fastco Industries, Inc. Project), 4.000%, 1/01/16+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.0%
4,825 City of Bloomington, Minnesota, Floating Rate Demand Commercial Revenue Bonds (James A-1+ 4,825,000
Avenue Associates Project), Series 1985, Variable Rate Demand Bonds, 3.950%, 12/01/15+
- -----------------------------------------------------------------------------------------------------------------------------------
Missouri - 8.6%
2,000 Health and Educational Facilities Authority of the State of Missouri, Variable Rate A-1+ 2,000,000
Demand Bonds, Health Facilities Revenue Bonds (St. Francis' Medical Center), Series
1996A, 3.900%, 6/01/26+
4,600 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, 4.000%,
8/15/26+
2,150 Health and Educational Facilities Authority of the State of Missouri, School District SP-1+ 2,155,690
Advance Funding, Series 1999L, Windsor C-1 School District, 4.250%, 9/19/00
8,000 State Environmental Improvement and Energy Resources Authority of Missouri, Unit Priced VMIG-1 8,000,000
Demand Adjustable Pollution Control Revenue Bonds, Series 1985A (Union Electric
Company), Commercial Paper, 3.250%, 3/07/00
4,000 The Industrial Development Authority of the County of Jackson, State of Missouri, VMIG-1 4,000,000
Variable Rate Demand Recreational Facilities Revenue Bonds (YMCA of Greater Kansas
City Project), Series 1996A, 4.000%, 11/01/16+
- -----------------------------------------------------------------------------------------------------------------------------------
Montana - 2.1%
5,000 Forsyth, Montana, Pollution Control Revenue Bonds (Pacificorp Colstrip), Variable N/R 5,000,000
Rate Demand Bonds, Series 1986, 3.950%, 12/01/16+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.1%
5,000 New Hampshire Higher Educational and Health Facilities Authority, Revenue Bonds, Hunt A-1 5,000,000
Community Issue, Series 1996, Variable Rate Demand Bonds, 3.900%, 5/01/26+
- -----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 0.5%
1,150 New Jersey Economic Development Authority, Economic Development Bonds (AJV Holdings, N/R 1,150,000
L.L.C. - 1999 Project), Variable Rate Demand Bonds, 4.000%, 12/01/14+ (Alternative
Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Ohio - 14.2%
1,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Notes (Mortgage Backed MIG-1 1,000,000
Securities Program), 2000 Series A-2, 4.050%, 9/01/00 (Alternative Minimum Tax)
2,500 Avon Local School District, Lorain County, Bond Anticipation Notes, Series 1999, N/R 2,504,543
School Improvement Bonds (General Unlimited Tax), 4.640%, 6/15/00
</TABLE>
5
<PAGE>
Portfolio of Investments
Nuveen Municipal Money Market Fund (continued)
February 29, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ohio (continued)
$ 7,000 Cuyahoga County, Ohio, Multifamily Revenue Bonds (National Terminal Apartments Project), A-1 $ 7,000,000
Series 1999A, Variable Rate Demand Bonds, 4.010%, 7/01/29+
5,005 County of Erie, Ohio, Adjustable Rate Demand Health Care Facilities Revenue Bonds (The VMIG-1 5,005,000
Commons of Providence Project), Series 1996 B, Variable Rate Demand Bonds, 3.960%,
10/01/21+
3,300 Fairborn City School District, Greene County, Bond Anticipation Notes, Series 1999, N/R 3,306,879
School Improvement Bonds (General Unlimited Tax), 4.400%, 9/14/00
3,315 County of Franklin, Ohio, Floating Rate Demand Hospital Financing Revenue Bonds, Series N/R 3,315,000
1993 (Traditions at Mill Run Project), Variable Rate Demand Bonds, 4.040%, 11/01/14+
3,000 Kings Local School District, Ohio, Bond Anticipation Notes, Series 1999, 4.190%, 3/01/00 N/R 3,000,000
6,500 Lorain County, Ohio, Industrial Development Multiple Mode Revenue Bonds (Skill Tools N/R 6,500,000
Project), Variable Rate Demand Bonds, Series 1999, 4.100%, 8/01/14+ (Alternative Minimum
Tax)
2,610 City of Parma, Ohio, Adjustable Rate Industrial Development Revenue Bonds, Series 1999 (FDC N/R 2,610,000
Realty Project), Variable Rate Demand Bonds, 4.060%, 12/01/19+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Oregon - 1.2%
3,000 Multnomah County School District 1J, Portland (Oregon), Series 1999, Tax and Revenue MIG-1 3,004,803
Anticipation Notes, 4.000%, 6/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 2.1%
2,175 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,
3.960%, 8/01/18+
3,000 Philadelphia School District, Tax and Revenue Anticipation Notes, Series 1999, 4.000%, MIG-1 3,005,266
6/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.6%
4,000 The Industrial Development Board of the City of Memphis and County of Shelby, Tennessee, N/R 4,000,000
Industrial Development Refunding Revenue Bonds, Series 1999 (Techno Steel Corp.) (Tomen
Corporation Guarantor), Variable Rate Demand Bonds, 4.140%, 10/01/11+ (Alternative Minimum
Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Texas - 8.0%
7,000 Brownsville, Texas, Utilities System, Commercial Paper Notes, Series A, 3.800%, 4/14/00 A-1+ 7,000,000
2,000 Brownsville, Texas, Utilities System, Commercial Paper Notes, Series A, 3.550%, 5/19/00 A-1+ 2,000,000
7,900 Midlothian Industrial Development Corporation, Exempt Facilities Revenue Bonds (Texas VMIG-1 7,900,000
Industries, Inc. Project), Variable Rate Demand Bonds, Series 1999, 3.950%, 5/01/29+
(Alternative Minimum Tax)
2,500 Sabine River Authority of Texas, Collateralized Pollution Control, Variable Rate Demand A-1+ 2,500,000
Bonds (Texas Utilities Electric Company), 3.900%, 4/01/30+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Vermont - 1.3%
3,195 Vermont Economic Development Authority, Variable Rate Demand Revenue Bonds (Vermont Pure N/R 3,195,000
Springs, Inc. Project), 1999 Series A, 4.000%, 1/01/20+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.9%
2,235 Virginia Small Business Financing Authority, Variable Rate Demand Industrial Development N/R 2,235,000
Revenue Bonds, Series 1999 (Coral Graphic Services of Virginia, Inc. Project), 4.000%,
11/01/06+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Washington - 7.6%
4,400 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), 3.710%, 9/01/09+
1,720 Washington State Housing Finance Commission, Variable Rate Demand Multifamily Revenue A-1 1,720,000
Bonds (LTC Properties, Inc. Project), Series 1995, 4.100%, 12/01/15+ (Alternative
Minimum Tax)
1,775 Washington State Housing Finance Commission, Variable Rate Demand Multifamily Revenue A-1 1,775,000
Bonds (Summer Ridge Apartments Project), Series 1999A, 4.150%, 12/02/29+ (Alternative
Minimum Tax)
5,000 Washington State Housing Finance Commission, Multifamily Revenue Bonds, Series 1999A A-1 5,000,000
(Regency Park Apartments Project), Variable Rate Demand Bonds, 4.150%, 10/01/29+
(Alternative Minimum Tax)
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Washington (continued)
$ 2,500 Lake Tapps Parkway Properties, Washington, Special Revenue Bonds, Series 1999B, VMIG-1 $ 2,500,000
Variable Rate Demand Bonds, 3.900%, 12/01/19+
3,000 Port Benton Economic Development Corporation, Washington, Solid Waste Revenue N/R 3,000,000
Bonds, Series 1999B (ATG Inc. Project), Variable Rate Demand Bonds, 4.000%,
11/01/14+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 6.0%
7,600 Wisconsin Health and Educational Facilities Authority, Commercial Paper (Alexian VMIG-1 7,600,000
Village of Milwaukee, Inc.-Refinancing), Series 1988A, 3.600%, 3/28/00
3,000 Wisconsin Health and Educational Facilities Authority, Adjustable Put Option Revenue A-1 3,000,000
Bonds, Series 1997 (Froedtert Memorial Lutheran Hospital Trust), 3.980%, 4/01/27+
2,910 City of Milwaukee, Wisconsin, Variable Rate Demand Industrial Development Revenue N/R 2,910,000
Bonds, Series 1998 (Midwest Express Airlines, Inc. Project), 4.050%, 8/01/30+
(Alternative Minimum Tax)
1,150 City of New Berlin, Wisconsin, Adjustable Rate Industrial Development Revenue Bonds, N/R 1,150,000
Series 1992 (Wenninger Project), 4.000%, 4/01/07+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
$242,088 Total Investments - 99.8% 242,138,555
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.2% 559,931
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $242,698,486
====================================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants):
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.
7
<PAGE>
Portfolio of Investments
Nuveen California Tax-Exempt Money Market Fund
February 29, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
Capital Goods - 5.4%
$ 3,000 California Pollution Control Financing Authority, Solid Waste Disposal, Series VMIG-1 $ 3,000,000
1994A (Western Waste Industries), Variable Rate Demand Revenue Bonds, 2.750%,
10/01/06+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 5.4%
3,000 San Dimas Industrial Development Revenue Bonds (Bausch & Lomb Incorporated), Series N/R 3,000,000
1985, Variable Rate Demand Bonds, 4.050%, 12/01/15+
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 13.5%
2,500 California Health Facilities Financing Authority, Hospital Revenue Bonds, Series 1998A VMIG-1 2,500,000
(Adventist Health System West), Variable Rate Demand Bonds, 3.200%, 9/01/28+
2,500 California Health Facilities Authority (St. Joseph Health System), Series 1991B, Variable VMIG-1 2,500,000
Rate Demand Bonds, 3.200%, 7/01/09+
2,500 The City of Newport Beach (Orange County, California), Series 1992 (Hoag Memorial VMIG-1 2,500,000
Presbyterian Hospital), Variable Rate Demand Bonds, 3.250%, 10/01/22+
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 11.8%
2,570 City of Chico, California, Multifamily Housing Revenue Refunding Bonds, Series 1995A N/R 2,570,000
(Sycamore Glen Project), Variable Rate Demand Bonds, 4.150%, 4/07/14+
1,000 Los Angeles Community Redevelopment Agency, Multifamily Housing Revenue, Series 1985 VMIG-2 1,000,000
(Skyline at South Park Apartments - Phase II), Variable Rate Demand Bonds, 5.550%,
12/01/05+
3,000 Housing Authority of the County of Santa Cruz, Variable Rate Demand Bonds, Multifamily A-1+ 3,000,000
Housing Revenue Bonds (Paloma del Mar Apartments), 1992 Issue A, 2.850%, 6/01/22+
(Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 3.7%
2,030 Industrial Development Authority of the County of Riverside, California, Variable A-1+ 2,030,000
Rate Demand Bonds, Industrial Development Revenue Bonds, Series 1997 (Merrick Engineering,
Inc. Project), 3.000%, 3/01/27+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 18.3%
2,000 State of California, Commercial Paper Notes, General Obligation, 3.000%, 3/10/00 A-1+ 2,000,000
2,400 Hillsborough City School District (County of San Mateo, California), 1999 Tax and Revenue SP-1+ 2,409,011
Anticipation Notes, 4.250%, 8/30/00
2,000 Millbrae School District (County of Mateo, California), Tax and Revenue Anticipation SP-1+ 2,003,832
Notes, Series 1999, 4.000%, 6/30/00
2,500 City of Ontario (County of San Bernardino, California), 1999 Tax and Revenue Anticipation SP-1+ 2,504,633
Notes, 4.000%, 6/30/00
1,250 San Carlos School District (County of San Mateo, California), 1999 Tax and Revenue SP-1+ 1,252,397
Anticipation Notes, 4.000%, 6/30/00
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 12.6%
2,000 Hacienda La Puente Unified School District, Certificates of Participation, Adult Education VMIG-1 2,000,000
Facility Financing Project, Series 1999, Variable Rate Demand Obligations, 2.550%,
10/01/09+
2,000 Orange County Improvement Bond Act of 1915, Irvine Coast Assessment District No. 88-1, VMIG-1 2,000,000
Limited Obligation Improvement, Variable Rate Demand Bonds, 3.200%, 9/02/18+
3,000 San Joaquin County Transportation Authority, Sales Tax Revenue, Commercial Paper Notes, A-1+ 3,000,000
3.150%, 3/16/00
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 9.1%
$ 2,000 San Diego Unified Port District, Subordinate Airport Revenue (Lindberg Field), A-1+ $ 2,000,000
Series B, Commercial Paper Notes, 2.800%, 3/06/00
3,025 San Francisco Airport Commission, Commercial Paper Notes, 3.300%, 4/04/00 A-1+ 3,025,000
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 13.5%
2,500 California Pollution Control Financing Authority, Pollution Control Refunding Revenue A-1+ 2,500,000
Bonds (Pacific Gas and Electric Company), 1997 Series B, Variable Rate Demand Bonds,
3.150%, 11/01/26+ (Alternative Minimum Tax)
2,500 Los Angeles Department of Water and Power, Electric Plant, Commercial Paper Notes, A-1+ 2,500,000
2.750%, 4/13/00
2,500 Sacramento Municipal Utility District, Commercial Paper Notes, 2.650%, 5/12/00 VMIG-1 2,500,000
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 6.1%
3,360 Hillsborough (California), Certificates of Participation, Water and Sewer System Project, A-1 3,360,000
Series 1995A, Variable Rate Demand Bonds, 3.850%, 6/01/15+
- -----------------------------------------------------------------------------------------------------------------------------------
$55,135 Total Investments - 99.4% 55,154,873
===============--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 358,805
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $55,513,678
====================================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants):
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
Nuveen New York Tax-Exempt Money Market Fund
February 29, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
Consumer Cyclicals - 3.2%
$ 1,000 Dutchess County Industrial Development Agency, Industrial Development Revenue Bonds A-1 $ 1,000,000
(Toys "R" Us - NYTEX Inc. Facility), Series 1984, Variable Rate Demand Bonds, 3.975%,
11/01/19+
- -----------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 17.4%
1,300 Dormitory Authority of the State of New York, New York Founding Charitable Corporation VMIG-1 1,300,000
Revenue Bonds, Series 1997, Variable Rate Demand Bonds, 3.750%, 7/01/12+
1,400 Madison County Industrial Development Agency (New York), Civic Facility Revenue, Series A-2 1,400,000
1999 (Cazenovia College), Variable Rate Demand Bonds, 4.100%, 6/01/19+
1,400 County of Monroe Industrial Development Agency, New York, Variable Rate Demand Revenue VMIG-1 1,400,000
Bonds (CHF - Rochester, L.L.C. - Rochester Institute of Technology Project), Series
1999A, 3.850%, 6/01/29+
1,400 New York City Industrial Development Agency, Revenue Bonds, Series 1989, Audubon Society, A-1+ 1,400,000
Variable Demand Revenue Bonds, 3.700%, 12/01/14+
- -----------------------------------------------------------------------------------------------------------------------------------
Health Care - 7.6%
1,000 New York State Dormitory Authority, Sloan Kettering Cancer Center, Series 1989C, Variable VMIG-1 1,000,000
Rate Demand Revenue Bonds, 3.700%, 7/01/19+
1,400 New York State Housing Finance Agency, The Hospital for Special Surgery, Series 1985A, HSS VMIG-1 1,400,000
Properties Corporation, Variable Rate Demand Bonds, 3.800%, 11/01/10+
- -----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 15.2%
1,000 New York City Housing Development Corporation, Multifamily Rental Housing Revenue Bonds A-1+ 1,000,000
(Brittany Development), 1999 Series A, Variable Rate Demand Bonds, 3.800%, 6/15/29+
(Alternative Minimum Tax)
1,000 New York City Housing Development Corporation, Multifamily Rental Housing Revenue Bonds A-1+ 1,000,000
(One Columbus Place Development), 1998 Series A, Variable Rate Demand Bonds, 3.800%,
11/15/28+ (Alternative Minimum Tax)
1,400 New York State Housing Finance Agency, Housing Revenue, Series 1995A (East 84th Street), VMIG-1 1,400,000
Variable Rate Demand Bonds, 3.800%, 11/01/28+ (Alternative Minimum Tax)
1,400 New York City Housing Development Corporation (Upper Fifth Avenue Project), Variable VMIG-1 1,400,000
Rate Demand Bonds, 3.800%, 1/01/16+
- -----------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 2.5%
800 Guilderland Industrial Development Agency, Variable Rate Demand Revenue Bonds (Northeastern P-1 800,000
Industrial Park Project), Series 1993A, 3.800%, 12/01/08+
- -----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 6.6%
700 New York State Dormitory Authority, Revenue Bonds, Series 1995 (Beverwyck Inc.), Variable VMIG-1 700,000
Rate Demand Bonds, 3.850%, 7/01/25+
1,400 County of Otsego Industrial Development Agency (New York), Civic Facility Revenue Bonds A-2 1,400,000
(St. James Retirement Community Project - Letter of Credit Secured), Series 1998A,
Variable Rate Demand Bonds, 3.800%, 8/01/28+
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 31.3%
1,400 State of New York, General Obligation Environmental Quality, Commercial Paper Notes, A-1+ 1,400,000
Series 1997A, 3.500%, 3/09/00
1,400 Town of Hempstead, Nassau County, New York, Bond Anticipation Notes, Series 1999D, N/R 1,401,550
4.250%, 5/09/00
1,000 Mahopac Central School District, Putnam County, Bond Anticipation Notes, Series 2000A, A-1 1,002,450
4.500%, 9/01/00 (WI)
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/General (continued)
$ 1,300 City of New York, General Obligation Bonds, Fiscal 1995 Series B, Variable Rate Demand VMIG-1 $ 1,300,000
Bonds, 3.750%, 8/15/05+
1,400 City of New York, General Obligation Bonds, Variable Rate Demand Bonds, Fiscal 1996 VMIG-1 1,400,000
Series J - Subseries J3, 3.800%, 2/15/16+
1,000 Patchogue-Medford Union Free School District, Suffolk County, New York, Tax MIG-1 1,001,533
Anticipation Notes for 1999-2000, 4.250%, 6/28/00
1,400 County of Schenectady, New York, Bond Anticipation Notes, Series 1999A, 4.25%, 3/22/00 N/R 1,400,359
1,000 County of Westchester, New York, General Obligation Serial Bonds, 1997 Series D, 4.625%, Aaa 1,005,312
11/15/00
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 9.2%
1,400 Metropolitan Transit Authority, New York, Transit Facilities, Commercial Paper Notes, A-1+ 1,400,000
3.700%, 6/09/00
700 The Port Authority of New York and New Jersey, Versatile Structure Obligations, Series A-1+ 700,000
2, Variable Rate Demand Bonds, 3.750%, 5/01/19+
800 The Port Authority of New York and New Jersey, Versatile Structure Obligations, Series VMIG-1 800,000
4, Variable Rate Demand Bonds, 3.850%, 4/01/24+ (Alternative Minimum Tax)
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 8.8%
1,400 New York State Energy Research and Development Authority (Niagara Mohawk Power P-1 1,400,000
Corporation), Pollution Control Revenue, Variable Rate Demand Bonds, Series 1986A,
3.800%, 12/01/26+ (Alternative Minimum Tax)
1,400 Long Island Power Authority (New York), Electric System Revenue Bonds, Series 6 of 1998, VMIG-1 1,400,000
Subordinate Lien, Variable Rate Demand Obligations, 3.700%, 5/01/33+
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 1.6%
500 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, VMIG-1 500,000
Fiscal 1996 Series A, Variable Rate Demand Bonds, 3.900%, 6/15/25+
- -----------------------------------------------------------------------------------------------------------------------------------
$32,700 Total Investments - 103.4% 32,711,204
============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.4)% (1,065,028)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $31,646,176
====================================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public
accountants): 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.
11
<PAGE>
Statement of Net Assets
February 29, 2000
<TABLE>
<CAPTION>
Municipal California New York
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in short-term municipal securities, at amortized cost, which approximates
market value $242,138,555 $55,154,873 $32,711,204
Cash -- 47,340 --
Receivables:
Fund manager 438,199 32,887 14,553
Interest 1,118,694 303,375 143,104
Investments sold 100,000 175,000 --
Other assets 1,625 181 274
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 243,797,073 55,713,656 32,869,135
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 142,667 -- 78,753
Payable for investments purchased -- -- 1,002,450
Accrued expenses:
12b-1 fees 185,713 58,063 31,886
Other 241,475 47,497 41,118
Dividends payable 528,732 94,418 68,752
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,098,587 199,978 1,222,959
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $242,698,486 $55,513,678 $31,646,176
- -----------------------------------------------------------------------------------------------------------------------------------
Shares outstanding 242,698,486 55,513,678 31,646,176
- -----------------------------------------------------------------------------------------------------------------------------------
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
Year Ended February 29, 2000
<TABLE>
<CAPTION>
Municipal California* New York**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income $8,909,172 $1,192,029 $1,072,749
- ---------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 1,241,259 149,466 130,249
12b-1 fees 333,532 68,137 58,581
Shareholders' servicing agent fees and expenses 600,091 29,337 43,546
Custodian's fees and expenses 57,687 24,461 21,277
Trustees' fees and expenses 4,800 157 178
Professional fees 110,931 29,323 18,140
Shareholders' reports - printing and mailing expenses 156,292 29,859 10,470
Federal and state registration fees 22,954 3,460 188
Portfolio insurance expense 25,832 2,489 2,330
Other expenses 27,589 14,997 3,926
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 2,580,967 351,686 288,885
Custodian fee credit (1,418) (1,321) (1,291)
Expense reimbursement (657,154) (131,921) (101,182)
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses 1,922,395 218,444 186,412
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income 6,986,777 973,585 886,337
Net realized gain from investment transactions -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $6,986,777 $ 973,585 $ 886,337
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* California 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
from such date through February 29, 2000.
**New York 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 February 29, 2000.
See accompanying notes to financial statements.
13
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Municipal
- ----------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
2/29/00 2/28/99
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 6,986,777 $ 7,273,829
Net realized gain from investment transactions -- --
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 6,986,777 7,273,829
- ----------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (6,986,777) (7,273,829)
- ----------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from sale of shares 163,405,512 159,407,682
Net proceeds from shares issued to shareholders due to reinvestment of distributions 6,413,805 6,997,731
- ----------------------------------------------------------------------------------------------------------------------
169,819,317 166,405,413
Cost of shares redeemed (179,474,987) (184,774,094)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (9,655,670) (18,368,681)
Net assets at the beginning of year 252,354,156 270,722,837
- ----------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 242,698,486 $ 252,354,156
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
California
- --------------------------------------------------------------------------------
Year Ended 2/29/00*
- --------------------------------------------------------------------------------
<S> <C>
Operations
Net investment income $ 973,585
Net realized gain from investment transactions --
- --------------------------------------------------------------------------------
Net increase in net assets from operations 973,585
- --------------------------------------------------------------------------------
Distributions to Shareholders (973,585)
- --------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from shares issued in the reorganization
of Nuveen California Tax-Free Money Market Fund
Institutional Series 3,634,486
Net proceeds from sale of shares 103,596,018
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 615,227
- --------------------------------------------------------------------------------
107,845,731
Cost of shares redeemed (166,093,543)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (58,247,812)
Net assets at the beginning of year 113,761,490
- --------------------------------------------------------------------------------
Net assets at the end of year $ 55,513,678
- --------------------------------------------------------------------------------
</TABLE>
*The year ended February 29, 2000, 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 from such date through February 29, 2000.
<TABLE>
<CAPTION>
California
- --------------------------------------------------------------------------------
Year Ended 2/28/99
- --------------------------------------------------------------------------------
Service Plan
Series
- --------------------------------------------------------------------------------
<S> <C>
Operations
Net investment income $ 2,778,800
Net realized gain from investment transactions --
- --------------------------------------------------------------------------------
Net increase in net assets from operations 2,778,800
- --------------------------------------------------------------------------------
Distributions to Shareholders (2,778,800)
- --------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from sale of shares 295,788,047
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 2,604,802
- --------------------------------------------------------------------------------
298,392,849
Cost of shares redeemed (271,546,956)
- --------------------------------------------------------------------------------
Net increase in net assets from share transactions 26,845,893
Net assets at the beginning of year 86,915,597
- --------------------------------------------------------------------------------
Net assets at the end of year $ 113,761,490
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
New York
- --------------------------------------------------------------------------------
Year Ended 2/29/00*
- --------------------------------------------------------------------------------
<S> <C>
Operations
Net investment income $ 886,337
Net realized gain from investment transactions --
- --------------------------------------------------------------------------------
Net increase in net assets from operations 886,337
- --------------------------------------------------------------------------------
Distributions to Shareholders (886,337)
- --------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from shares issued in the reorganization of
Nuveen New York Tax-Free Money Market Fund
Service Plan series 1,473,077
Net proceeds from shares issued in the reorganization of
Nuveen New York Tax-Free Money Market Fund
Institutional series 16,667
Net proceeds from sale of shares 40,147,717
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 832,491
- --------------------------------------------------------------------------------
42,469,952
Cost of shares redeemed (43,930,385)
- --------------------------------------------------------------------------------
Net increase in net assets from share transactions (1,460,433)
Net assets at the beginning of year 33,106,609
- --------------------------------------------------------------------------------
Net assets at the end of year $ 31,646,176
- --------------------------------------------------------------------------------
</TABLE>
*The year ended February 29, 2000, 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 February 29, 2000.
<TABLE>
<CAPTION>
New York
- --------------------------------------------------------------------------------
<S> <C>
Year Ended 2/28/99
- --------------------------------------------------------------------------------
Distribution Plan
Series
- --------------------------------------------------------------------------------
Operations
Net investment income $ 835,048
Net realized gain from investment transactions --
- --------------------------------------------------------------------------------
Net increase in net assets from operations 835,048
- --------------------------------------------------------------------------------
Distributions to Shareholders (835,048)
- --------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
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.
16
<PAGE>
Notes to Financial Statements
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
previously approved by shareholders. 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 California. 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 New York.
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
accounting principles generally accepted in the United States.
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 February
29, 2000, the dollar-weighted average life was 27.37 days for Municipal, 31.52
days for California, and 29.01 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
February 29, 2000, New York had an outstanding when-issued purchase commitment
of $1,002,450. There were no such outstanding purchase commitments in either
Municipal or California.
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. All income dividends paid during
the fiscal year ended February 29, 2000, have been designated Exempt Interest
Dividends. Net ordinary taxable income and net realized capital gain
distributions, if any, are subject to federal taxation.
17
<PAGE>
Notes to Financial Statements (continued)
12b-1 Plan
Effective after the close of business on June 25, 1999, each Fund 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 fiscal year ended February 29,
2000.
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 accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
municipal securities during the fiscal year ended February 29, 2000, were as
follows:
<TABLE>
<CAPTION>
Municipal California* New York**
<S> <C> <C> <C>
- ----------------------------------------------------------------
Purchases $712,414,542 $277,036,747 $78,781,139
Sales 721,330,000 396,669,150 81,280,000
- ----------------------------------------------------------------
</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 February 29, 2000.
**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
February 29, 2000.
At February 29, 2000, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for each
Fund.
At February 29, 2000, California had unused capital loss carryforwards of
$25,566 available for federal income tax purposes to be applied against future
capital gains if any. If not applied, $18,364 of the carryforwards will expire
in the year 2003 and $7,202 will expire in the year 2008.
3. Composition of Net Assets
At February 29, 2000, 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 $ 242,698,486 $55,539,244 $31,646,176
Accumulated net realized gain (loss)
from investment transactions -- (25,566) --
- --------------------------------------------------------------------------------
Net assets $ 242,698,486 $55,513,678 $31,646,176
- --------------------------------------------------------------------------------
Authorized shares 2,000,000,000 Unlimited Unlimited
- --------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
4. Management Fees and Other Transactions with Affiliates
Prior to the close of business on June 25, 1999, 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>
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 California and New York.
Effective after the close of business on June 25, 1999, as approved by
shareholders, 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 California and New York 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.
19
<PAGE>
Notes to Financial Statements (continued)
5. Investment Composition
At February 29, 2000, 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 10 5 --
Consumer Cyclicals 5 -- 3
Consumer Staples 2 5 --
Education and Civic Organizations 11 -- 17
Health Care 10 14 7
Housing/Multifamily 10 12 15
Industrial/Other 9 4 2
Long-Term Care 11 -- 6
Tax Obligation/General 11 18 30
Tax Obligation/Limited 1 13 --
Transportation 1 9 9
Utilities 11 14 9
Water and Sewer -- 6 2
- -----------------------------------------------------------------------
100% 100% 100%
- -----------------------------------------------------------------------
</TABLE>
At February 29, 2000, 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 (90% for Municipal,
85% for California, and 82% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
20
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(a) Reimbursement(b)
--------------------- ------------------ --------------------
MUNICIPAL Ratio of Ratio Ratio of Ratio Ratio of Ratio
Less Expenses of Net Expenses of Net Expenses of Net
Year Beginning Distributions Ending Ending to Investment to Investment to Investment
Ending Net Net from Net Net Net Average Income to Average Income Average Income to
February Asset Investment Investment Asset Total Assets Net Average Net to Average Net Average
28/29, Value Income Income Value Return (000) Assets Net Assets Assets Net Assets Assets Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 $1.00 $.03 $(.03) $1.00 2.79% $242,698 1.03% 2.53% .77% 2.79% .77% 2.79%
1999 1.00 .03 (.03) 1.00 2.85 252,354 .80 2.79 .75 2.84 .75 2.84
1998 1.00 .03 (.03) 1.00 3.02 270,723 .81 2.96 .75 3.02 .75 3.02
1997 1.00 .03 (.03) 1.00 2.87 304,087 .80 2.82 .75 2.87 .75 2.87
1996 1.00 .03 (.03) 1.00 3.23 339,662 .79 3.18 .75 3.22 .75 3.22
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(a) Reimbursement(b)
--------------------- ------------------ --------------------
CALIFORNIA* Ratio of Ratio Ratio of Ratio Ratio of Ratio
Less Expenses of Net Expenses of Net Expenses of Net
Year Beginning Distributions Ending Ending to Investment to Investment to Investment
Ending Net Net from Net Net Net Average Income to Average Income Average Income to
February Asset Investment Investment Asset Total Assets Net Average Net to Average Net Average
28/29, Value Income Income Value Return (000) Assets Net Assets Assets Net Assets Assets Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000(c) $1.00 $.03 $(.03) $1.00 2.65% $ 55,514 .93% 2.23% .58% 2.58% .58% 2.58%
1999 1.00 .03 (.03) 1.00 2.81 113,761 .59 2.75 .55 2.79 .55 2.79
1998 1.00 .03 (.03) 1.00 3.13 86,916 .58 3.09 .55 3.12 .55 3.12
1997 1.00 .03 (.03) 1.00 2.94 95,306 .59 2.89 .55 2.93 .55 2.93
1996 1.00 .03 (.03) 1.00 3.32 70,722 .56 3.28 .54 3.30 .54 3.30
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Information included prior to the year ended February 29, 2000, reflects the
financial highlights of the Service Plan series of the Nuveen California Tax-
Free Money Market Fund.
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) 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 February 29,
2000.
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------
Before Credit/ After After Credit/
Reimbursement Reimbursement(a) Reimbursement(b)
--------------------- ------------------ --------------------
NEW YORK* Ratio of Ratio Ratio of Ratio Ratio of Ratio
Less Expenses of Net Expenses of Net Expenses of Net
Year Beginning Distributions Ending Ending to Investment to Investment to Investment
Ending Net Net from Net Net Net Average Income to Average Income Average Income to
February Asset Investment Investment Asset Total Assets Net Average Net to Average Net Average
28/29, Value Income Income Value Return (000) Assets Net Assets Assets Net Assets Assets Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000(c) $1.00 $.03 $(.03) $1.00 2.73% $ 31,646 .89% 2.41% .58% 2.72% .57% 2.72%
1999 1.00 .03 (.03) 1.00 2.73 33,107 .72 2.54 .55 2.71 .55 2.71
1998 1.00 .03 (.03) 1.00 3.10 28,854 .89 2.75 .55 3.09 .55 3.09
1997 1.00 .03 (.03) 1.00 2.90 26,116 .92 2.52 .55 2.89 .55 2.89
1996 1.00 .03 (.03) 1.00 3.20 31,631 .94 2.80 .55 3.19 .55 3.19
</TABLE>
* Information included prior to the year ended February 29, 2000, reflects the
financial highlights of the Distribution Plan series of the Nuveen New York Tax-
Free Money Market Fund.
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) 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 February 29,
2000.
21
<PAGE>
Report of Independent Public Accountants
To the Board of Directors/Trustees and Shareholders of
Nuveen Municipal Money Market Fund
Nuveen California Tax-Exempt Money Market Fund
Nuveen New York Tax-Exempt Money Market Fund:
We have audited the accompanying statements of net assets of Nuveen Municipal
Money Market Fund (a Maryland Corporation), Nuveen California Tax-Exempt Money
Market Fund and Nuveen New York Tax-Exempt Money Market Fund (each a series of
the Nuveen Money Market Trust) (a Massachusetts business Trust), including the
portfolios of investments, as of February 29, 2000, and the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the two years then ended and the financial highlights for the
periods indicated thereon. These financial statements and financial highlights
are the responsibility of the Funds' management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of February 29, 2000, by correspondence with the custodian and brokers.
As to securities purchased but not received, we requested confirmation from
brokers, and when replies were not received, we carried out alternative auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of each of the
respective funds constituting the Nuveen Municipal Money Markey Fund, Nuveen
California Tax-Exempt Money Market Fund and Nuveen New York Tax-Exempt Money
Market Fund as of February 29, 2000, the results of their operations for the
year then ended, the changes in their net assets for each of the two years then
ended, and the financial highlights for the periods indicated thereon in
conformity with accounting principles generally accepted in the United States.
ARTHUR ANDERSEN LLP
Chicago, Illinois
April 14, 2000
22
<PAGE>
Shareholder Meeting Report
A special shareholder meeting was held in Chicago, Illinois on June 4, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Municipal California New York
- --------------------------------------------------------------------------------
Approval of the Directors/Trustees
was reached as follows:
Robert P. Bremner
For 147,093,944 59,113,169 15,194,075
Withhold 4,061,638 1,919,061 316,066
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Lawrence H. Brown
For 147,131,185 59,113,169 15,194,264
Withhold 4,024,397 1,919,061 315,877
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Anne E. Impellizzeri
For 147,131,185 59,113,169 15,194,264
Withhold 4,024,397 1,919,061 315,877
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Peter R. Sawers
For 147,131,185 59,113,169 15,194,264
Withhold 4,024,397 1,919,061 315,877
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
William J. Schneider
For 147,131,185 59,113,169 15,194,264
Withhold 4,024,397 1,919,061 315,877
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Timothy R. Schwertfeger
For 147,131,185 59,113,169 15,194,264
Withhold 4,024,397 1,919,061 315,877
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Judith M. Stockdale
For 147,131,185 59,113,169 15,194,264
Withhold 4,024,397 1,919,061 315,877
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Ratification of auditors was reached
as follows:
For 138,560,834 53,840,864 14,799,429
Against 3,174,394 3,063,841 130,944
Abstain 9,420,354 4,127,525 579,768
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Approval of new investment management
agreement:
For 129,260,136 46,178,389 13,977,012
Against 7,871,753 10,782,780 587,586
Abstain 10,220,629 4,057,102 841,070
Broker Non-Vote 3,803,064 13,959 104,473
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
Shareholder Meeting Report (continued)
<TABLE>
<CAPTION>
Municipal California New York
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Approval of new Rule 12B-1 plan:
Service Plan Service Plan
Series Series
------------- ------------
For 123,428,990 12,791,022 875,823
Against 11,925,115 1,679,673 40,695
Abstain 11,998,412 -- 177,290
Broker Non-Vote 3,803,065 12,626 49,075
- --------------------------------------------------------------------------------
Total 151,155,582 14,483,321 1,142,883
- --------------------------------------------------------------------------------
Distribution Distribution
Plan Series Plan Series
------------- ------------
For -- 27,367,030 12,920,231
Against -- 11,959,853 598,979
Abstain -- 4,339,386 775,982
Broker Non-Vote -- 1,331 55,399
- --------------------------------------------------------------------------------
Total -- 43,667,600 14,350,591
- --------------------------------------------------------------------------------
Institutional Institutional
Plan Series Plan Series
---------------------------
For -- 2,650,287 16,666
Against -- 231,022 --
Abstain -- -- --
Broker Non-Vote -- -- --
- --------------------------------------------------------------------------------
Total -- 2,881,309 16,666
- --------------------------------------------------------------------------------
Approval of plan and agreement of
reorganization:
For 128,915,984 42,905,192 13,357,820
Against 7,097,985 13,833,850 1,166,721
Abstain 11,338,548 4,279,231 881,127
Broker Non-Vote 3,803,065 13,957 104,473
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Approval of amendments to the Fund's
investment objective:
For 129,579,240 44,422,103 14,087,953
Against 6,980,755 11,996,643 621,629
Abstain 10,792,522 4,599,527 696,086
Broker Non-Vote 3,803,065 13,957 104,473
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Approval of elimination of the Fund's
fundamental investment policy on
unseasoned issuers:
For 126,900,773 44,732,732 13,431,154
Against 8,204,172 11,366,647 1,240,027
Abstain 12,247,572 4,918,894 734,487
Broker Non-Vote 3,803,065 13,957 104,473
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
Approval of elimination of the Fund's
fundamental investment policy on
limitation on ownership of
securities:
For 126,807,484 45,973,400 13,371,249
Against 8,197,706 10,302,634 1,340,496
Abstain 12,347,327 4,742,239 693,923
Broker Non-Vote 3,803,065 13,957 104,473
- --------------------------------------------------------------------------------
Total 151,155,582 61,032,230 15,510,141
- --------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
Fund Information
Board of Directors/Trustees
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and Shareholder Services
Chase Global Funds Services
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis & Bockius LLP
Washington, D.C.
Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
25
<PAGE>
John Nuveen, Sr.
[PHOTO APPEARS HERE]
SERVING
INVESTORS
FOR GENERATIONS
A 100-Year Tradition of Quality Investments
Since 1898, John Nuveen & Co. Incorporated has been synonymous with investments
that withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Adviser Today
To find out how the Nuveen Innovation Fund might round out your investment
portfolio, contact your financial adviser today. Or call Nuveen at (800)
257-8787 for more information. Ask your adviser or call for a prospectus which
details risks, fees and expenses. Please read the prospectus carefully before
you invest.
NUVEEN
Investments
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
