<PAGE>
[NUVEEN LOGO APPEARS HERE]
Nuveen Tax-Free
Mutual Funds
Dependable tax-free
income for generations
MUNICIPAL BOND FUND, INC.
INSURED MUNICIPAL BOND FUND
[PHOTO OF COUPLE APPEARS HERE]
ANNUAL REPORT/FEBRUARY 28, 1995
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Portfolio of investments
37 Statement of net assets
38 Statement of operations
39 Statement of changes in net assets
40 Notes to financial statements
50 Financial highlights
52 Report of independent public accountants
<PAGE>
Dear
shareholder
[PHOTO OF RICHARD J. FRANKE APPEARS HERE]
"Providing secure income remains our top priority"
The 12 months ended February 28, 1995, were one of the most difficult periods
the bond markets have experienced in decades. The Federal Reserve Board raised
interest rates seven times since the beginning of 1994 to fend off future
inflation. As a result, the prices of all bonds and bond funds declined.
The unusually high volatility of the past year has brought home a basic fact
about bonds: interest rates are subject to change, and sometimes the changes can
have marked effects on net asset values of bonds and bond funds.
At Nuveen, we believe that the best approach to tax-free investing in such
tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives relatively well, providing
an attractive level of tax-free income while holding portfolio values in line
with or better than the market as a whole.
Looking first at income, at fiscal year end the current yield on offering
price for the Nuveen Municipal Bond Fund was 5.21% and the yield on offering
price for the Nuveen Insured Municipal Bond Fund was 5.66%. To equal these
yields, an investor in the 36% federal income tax bracket would need to earn at
least 8.14% and 8.84%, respectively, on taxable alternatives. This yield is
difficult to achieve on taxable investments of comparable credit quality.
3
<PAGE>
Your Fund also maintained its value relatively well during the past year.
While the net asset value of the Municipal Bond Fund declined 3.02% and the
Class R shares of the Insured Municipal Bond Fund declined 3.98%, the Bond Buyer
40 index--a measure of the value of newly issued municipal bonds--declined by
even more, slipping 8.5% over the past 12 months. And 30-year Treasury bonds
declined by 10.0% during the year.
In this context, we believe that your Fund met the demands of the past year's
market well. And when we take a long-range view of the municipal market, we
believe the outlook for your Fund is positively supported by several
considerations.
First, from November of 1994 through February of 1995, municipal bond yields
declined by nearly a full percent and bond prices started to gain ground. This
development suggests that the underlying inflationary pressures that drove
interest rates higher and bond prices lower may be moderating.
Second, and as we have noted in past reports, the municipal market's supply
and demand fundamentals continue to be sound. To put these trends in
perspective, in 1994, the supply of new municipal bonds declined by
approximately 40% from 1993; and market projections for new issue volume in 1995
are down over 20% from last year's already low level.
Once investors perceive that the interest rate environment has stabilized,
demand for municipal investments, which has been subdued over the last 12 months
as a result of the market's extraordinary volatility, should resume its long-
term upward trend. This combination of lower supply, which may be reduced
further by the high volume of bond calls expected in 1995, and the likelihood of
rising demand should help support municipal bond prices in the long term.
At Nuveen we are taking steps to increase the value our funds provide to
shareholders-steps reflected in last year's introduction of two new share
classes with different sales charge structures and service fees for the Insured
Municipal Bond Fund. These new share classes, designated A Shares and C Shares,
give you and your investment adviser added flexibility in designing a tax-free
investment program that meets your requirements. In addition, these classes also
encourage fund growth, which offsets redemptions and protects portfolio
integrity.
We appreciate your trust in our family of funds, and we look forward to
helping you meet your tax-free investment objectives in the future.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
April 17, 1995
4
<PAGE>
ANSWERING YOUR QUESTIONS
We spoke recently with Tom Spalding, head of Nuveen's portfolio management team,
and asked him about developments in the municipal market and the outlook for
Nuveen's Tax-Free Mutual Funds.
Why did my Fund's net asset value decline over the past year?
The past 12 months have been a difficult period for all fixed-income investors.
The Federal Reserve raised interest rates seven times from February 1994 through
February 1995, and its actions drove the prices of all bonds and bond funds
lower. Of course, changing interest rates are a fact of life for fixed-income
investments. The important point is that shareholders in these funds were less
affected by rising interest rates than the market overall. In fact, the net
asset values of the funds covered in this report declined less than 4.0% while
the municipal market overall, as measured by the Bond Buyer 40 index, was down
8.5% and as measured by the Lehman Brothers Municipal Bond index, was off 3.97%.
The Bond Buyer 40 index reflects price movements of newly issued long-term
municipal bonds,
5
<PAGE>
[PHOTO OF TOM SPALDING APPEARS HERE]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
What steps did you take to moderate the impact of rising interest rates on the
value of the funds' portfolios?
while the Lehman Brothers Municipal Bond index reflects the broader municipal
market.
This is one result of our conservative, value-oriented approach to investing;
our funds tend to hold their value better than the market as a whole when
interest rates are rising.
As value investors, we don't manage our portfolios to any specific interest rate
environment. We feel that it's impossible to predict changes in the economy or
interest rates with any degree of accuracy, and we don't try. Instead, we try to
buy bonds that will perform well in any interest rate environment, focusing
closely on relative values in the market.
Because of that approach, we didn't need to make major changes in our
portfolios as interest rates rose. For a number of technical reasons, above all
the compression of yields between higher-rated and lower-rated issues that had
been taking place for some time-the best values, in our view, were to be found
in conservative bonds. For some time, we had been concentrating on higher-rated
bonds with maturities in the 15-to-20 year range, as well as bonds priced at
premiums to their par values and pre-refunded issues. We also benefited from an
increase in assets in many of our funds, driven by
6
<PAGE>
A record amount of municipal bonds were called in 1993-1994. How did these bond
calls affect my income and the net asset value of my shares?
both higher demand for tax-free investments and Nuveen's UIT reinvestment
programs. As a result, we weren't under pressure to sell into difficult markets
to meet redemptions.
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher need to be replaced with today's lower-yielding bonds.
On the other hand, the fact that your fund's portfolio contained callable
bonds provided an important NAV benefit. Callable bonds with higher-than-market
coupons are priced at premiums to their par value or call price. Callable, high-
coupon long-term bonds, sometimes called "cushion bonds", tend to experience the
lower price volatility of intermediate-term or even shorter-term bonds when
rates are low but rising, as was the case in early 1994. As we saw last year,
the premium coupons of these bonds essentially act as a "cushion" that softens
the effect of rising interest rates.
Of course, we manage all of our portfolios with calls in mind. As part of our
basic management process we continually evaluate opportunities to sell bonds
approaching their call dates and to reinvest the proceeds in bonds we think have
high potential to provide above-market returns.
7
<PAGE>
A number of fund managers have encountered problems recently related to the use
of derivative securities. Do you use derivatives in your portfolios?
Over the last year, participants in the financial services industry, including
securities dealers, underwriters and investment advisers, received much
attention in the press relating to the use of certain types of derivative
financial instruments in the management of portfolios, including those of mutual
funds. There are many different types of derivative investments available in the
market today, including those derivatives whose market values respond to
interest rate changes with greater volatility than do others. In general,
derivatives used to speculate on the future course of interest rates pose the
greatest risk, while derivatives used for hedging purposes present less risk
and, if used properly, can often reduce risk. Synthetic money market securities
generally present no greater risk to investors than ordinary money market
securities.
Although Nuveen Insured Municipal Bond Fund, and to a lesser extent Nuveen
Municipal Bond Fund, 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 28, 1995, other than occasional purchases of high
quality synthetic money market securities, which were held temporarily pending
the investment in long-term portfolio securities.
8
<PAGE>
NUVEEN MUNICIPAL BOND FUND, INC.
Muni Bond
INDEX COMPARISON
Nuveen Municipal Bond Fund and Lehman Brothers Municipal Bond Index Comparison
of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN MUNICIPAL BOND FUND
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
Measurement Period NUVEEN MUNICIPAL LEHMAN BROTHERS
(Fiscal Year Covered) BOND FUND MUNICIPAL BOND INDEX
- ------------------- ---------------- --------------------
<S> <C> <C>
Measurement Pt-
2/85 $ 9,525 $10,000
FYE 8/85 $10,521 $10,877
FYE 2/86 $12,210 $12,813
FYE 8/86 $12,848 $13,390
FYE 2/87 $13,683 $14,375
FYE 8/87 $13,262 $14,010
FYE 2/88 $14,142 $14,752
FYE 8/88 $14,361 $14,973
FYE 2/89 $15,196 $15,667
FYE 8/89 $16,139 $16,615
FYE 2/90 $16,635 $17,273
FYE 8/90 $17,034 $17,681
FYE 2/91 $18,045 $18,865
FYE 8/91 $18,939 $19,767
FYE 2/92 $19,828 $20,750
FYE 8/92 $20,867 $21,974
FYE 2/93 $22,017 $23,606
FYE 8/93 $22,797 $24,654
FYE 2/94 $23,072 $24,911
FYE 8/94 $23,038 $24,690
FYE 2/95 $23,902 $25,381
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $25,381
==== Nuveen Municipal Bond Fund -- Total $23,902
($25,094 at NAV)
Past performance is not predictive of future performance
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.20 cents to 4.30 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 51.10 cents per share.
As yield differentials between higher- and lower-rated bond and longer- and
shorter- maturities narrowed, the Fund's manager focused attention on higher-
quality bonds with maturities in the 15-to-20 year range, as well as on pre-
refunded bonds.
The Fund continues, in our view, to offer a relatively low-risk vehicle for
investing in longer-term tax-free securities.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year 5 year 10 year
- -----------------------------------------------------------------
<S> <C> <C> <C>
Offering price* -1.32% 6.48% 9.11%
NAV 3.60% 7.52% 9.64%
- -----------------------------------------------------------------
</TABLE>
* Maximum public offering price, which includes sales charges, which are reduced
for purchases over $100,000 and waived for reinvestment of dividends.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the maximum initial sales
charge (4.75%) and all ongoing fund expenses.
9
<PAGE>
NUVEEN INSURED
TAX-FREE BOND FUND, INC.
Insured Muni Bond
INDEX COMPARISON
Nuveen Insured Tax-Free Bond Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN INSURED TAX-FREE BOND FUND R SHARES*
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
Measurement Period NUVEEN INSURED LEHMAN BROTHERS
(Fiscal Year Covered) TAX-FREE BOND FUND R MUNICIPAL BOND INDEX
- ------------------- -------------------- --------------------
<S> <C> <C>
Measurement Pt-
11/86 $ 9,525 $10,000
FYE 2/87 $ 9,840 $10,322
FYE 8/87 $ 9,375 $10,060
FYE 2/88 $10,037 $10,593
FYE 8/88 $10,163 $10,751
FYE 2/89 $10,803 $11,250
FYE 8/89 $11,467 $11,931
FYE 2/90 $11,853 $12,403
FYE 8/90 $12,055 $12,696
FYE 2/91 $12,913 $13,546
FYE 8/91 $13,603 $14,194
FYE 2/92 $14,337 $14,900
FYE 8/92 $15,237 $15,779
FYE 2/93 $16,523 $16,951
FYE 8/93 $17,346 $17,703
FYE 2/94 $17,426 $17,888
FYE 8/94 $17,077 $17,729
FYE 2/95 $17,748 $18,225
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $18,225
==== Nuveen Insured Municipal Bond Fund -- Total $17,748
($18,633 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------
1 year 5 year Since Inception
- ----------------------------------------------------------------------
<S> <C> <C> <C>
R shares on NAV 1.85% 8.41% 7.84%
A shares on NAV 3.84%+
A shares on offering price** -0.83%+
C shares on NAV 3.09%+
- ----------------------------------------------------------------------
</TABLE>
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.75 cents to 4.80 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 57.95 cents per share.
As interest rates rose and yield differentials between bonds of different
quality ratings and maturities continued to compress, the Fund's manager focused
on higher-quality bonds with maturities in the 15-to-20 year range.
Late in the period, as the yield differential widened, general obligation
bonds were emphasized.
Given the relative safety and marketability of insured bonds, the Fund was
invested in bonds with somewhat longer maturities and durations to enhance
overall portfolio yield.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
10
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ALASKA - 1.7%
Alaska Housing Finance
Corporation, Insured
Mortgage Program:
$ 4,265,000 6.375%, 12/01/07 6/95 at 101 Aa $ 4,299,291
3,290,000 7.650%, 12/01/10 12/00 at 102 Aa 3,476,181
10,885,000 7.800%, 12/01/30 12/00 at 102 Aa 11,444,162
Alaska State Housing
Finance Corporation:
3,675,000 6.375%, 12/01/12 12/02 at 102 Aa 3,977,122
22,250,000 6.600%, 12/01/23 12/02 at 102 Aa 23,617,930
- ------------------------------------------------------------------------------------
ARIZONA - 2.1%
Salt River Project,
Agricultural
Improvement
and Power District:
5,000,000 4.900%, 1/01/08 1/04 at 102 AA 4,596,050
9,145,000 5.000%, 1/01/10 7/95 at 100 AA 8,358,896
26,200,000 4.750%, 1/01/17 1/04 at 102 AA 21,849,490
20,350,000 5.500%, 1/01/28 1/02 at 100 AA 18,438,525
4,570,000 Scottsdale Industrial
Development Authority
(Scottsdale Memorial
Hospital), 8.500%,
9/01/07 9/97 at 102 Aaa 5,016,580
- ------------------------------------------------------------------------------------
ARKANSAS - 0.4%
11,210,000 Jefferson County
Hospital, 6.000%,
7/01/06 7/03 at 102 N/R 11,010,238
- ------------------------------------------------------------------------------------
CALIFORNIA - 12.2%
California Department of
Water Resources
(Central Valley
Project):
15,515,000 5.700%, 12/01/16 6/03 at 101 1/2 AA 14,771,056
8,500,000 5.750%, 12/01/19 6/03 at 101 1/2 AA 8,111,040
12,250,000 5.500%, 12/01/23 12/03 at 101 1/2 AA 11,219,163
20,000,000 4.875%, 12/01/27 12/03 at 101 AA 16,044,000
13,025,000 California Health
Facilities Financing
Authority (Catholic
Healthcare West),
5.000%, 7/01/14 7/04 at 102 Aaa 11,517,747
27,600,000 California Health
Facilities Financing
Authority (Daughters of
Charity), 9.250%,
3/01/15 3/96 at 102 Aa 29,213,772
12,000,000 California State Public
Works Board, Department
of Corrections
(California State
Prison, Monterey
County), 7.000%,
11/01/19 11/04 at 102 A- 12,544,080
32,795,000 California Statewide
Communities Development
Authority (St. Joseph
Health System),
5.500%, 7/01/23 7/03 at 102 AA 28,607,734
9,000,000 East Bay Municipal
Utility District,
5.000%, 6/01/21 6/03 at 102 Aaa 7,679,880
Los Angeles Department
of Water and Power:
15,825,000 6.500%, 4/15/32 4/02 at 102 AA 16,073,453
13,100,000 6.125%, 1/15/33 1/03 at 102 AA 12,862,235
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Los Angeles Wastewater
System:
$ 7,000,000 5.700%, 6/01/20 6/03 at 102 Aaa $ 6,649,440
21,000,000 5.700%, 6/01/23 6/03 at 102 Aaa 19,899,600
Los Angeles County
Metropolitan Transit
Authority: 5.500%,
10,000,000 7/01/13 7/03 at 102 AA- 9,228,100
13,435,000 4.750%, 7/01/18 7/03 at 102 Aaa 11,104,834
19,500,000 Los Angeles County
Sanitation District
Financing Authority,
5.000%, 10/01/23 10/03 at 100 AA 16,270,020
25,000,000 Los Angeles County
Transportation
Commission,
6.750%, 7/01/19 (Pre-
refunded to 7/01/02) 7/02 at 102 Aaa 27,713,000
Southern California
Metropolitan Water
District:
4,670,000 5.500%, 1/01/10 7/95 at 101 1/2 AA+ 4,563,197
5,000,000 5.500%, 7/01/19 7/02 at 102 AA 4,597,950
12,750,000 Modesto Irrigation
District (Geysers
Geothermal Power
Project), Certificates
of Participation,
7.250%, 10/01/15 10/96 at 102 A1 13,180,185
22,725,000 Northern California
Power Agency,
7.150%, 7/01/24 7/98 at 102 A- 23,330,621
12,600,000 Sacramento Sanitation
District Finance
Authority,
4.750%, 12/01/23 12/03 at 102 AA 9,936,108
2,179,452 San Diego County
(Contel), Certificates
of Participation,
7.500%, 2/08/96 No Opt. Call N/R 2,221,341
7,600,000 Santa Clara County
(Capital Project No.
1), Certificates of
Participation,
8.000%, 10/01/06 (Pre-
refunded to 10/01/96) 10/96 at 102 AAA 8,122,120
8,050,000 University of
California,
6.875%, 9/01/16 (Pre-
refunded to 9/01/02) 9/02 at 102 A- 8,999,498
- -----------------------------------------------------------------------------------
COLORADO - 2.1%
31,750,000 Colorado Housing Finance
Authority,
7.250%, 11/01/31 11/01 at 102 AA- 32,901,573
City and County of
Denver Airport System:
12,075,000 8.375%, 8/01/11 4/95 at 101 Con(Baa) 12,227,024
7,090,000 9.250%, 8/01/20 4/95 at 102 Con(Baa) 7,257,608
4,250,000 7.250%, 11/15/25 11/02 at 102 Baa 4,335,298
- -----------------------------------------------------------------------------------
CONNECTICUT - 0.5%
9,820,000 Connecticut Housing
Finance Authority,
7.550%, 11/15/08 11/00 at 102 AA 10,424,126
2,970,000 Connecticut Resources
Recovery Authority,
8.625%, 1/01/04 1/96 at 102 A 3,105,194
</TABLE>
12
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA -
0.3%
$ 7,635,000 CHT Housing, Inc., FHA-
Insured,
8.500%, 1/01/22 7/95 at 103 N/R $ 7,917,571
- ------------------------------------------------------------------------------------
FLORIDA - 4.6%
4,500,000 Dade County Health
Facilities Authority
(Mt. Sinai Medical
Center),
8.400%, 12/01/07 (Pre-
refunded to 12/01/99) 12/99 at 102 Aaa 4,999,725
31,000,000 Hillsborough County
Industrial Development
Authority, Pollution
Control (Tampa
Electric), 8.000%,
5/01/22 5/02 at 103 Aa2 35,490,660
9,500,000 Jacksonville Electric
Authority, 7.375%,
10/01/13 (Pre-refunded
to 10/01/95) 10/95 at 101 1/2 Aaa 9,785,665
8,150,000 Jacksonville Electric
Authority (St. John's
River Power Park
System), 6.500%,
10/01/20 10/95 at 100 Aa1 8,196,700
26,950,000 North Broward Hospital
District, 8.000%,
1/01/14 (Pre-refunded
to 1/01/96) 1/96 at 103 AAA 28,475,640
Orlando Utilities
Commission:
22,700,000 8.500%, 10/01/09 (Pre-
refunded to 10/01/95) 10/95 at 102 Aaa 23,649,768
6,500,000 5.000%, 10/01/23 10/99 at 100 AA- 5,545,540
8,005,000 Pensacola Health
Facilities Authority
(Daughters of Charity),
7.750%, 1/01/03 (Pre-
refunded to 1/01/98) 1/98 at 101 1/2 Aaa 8,702,716
Sarasota Elderly Housing
Corporation:
30,000 7.500%, 7/01/95 No Opt. Call A 30,207
1,520,000 7.500%, 7/01/09 7/95 at 104 A 1,581,378
- ------------------------------------------------------------------------------------
GEORGIA - 0.3%
2,975,000 Appling County
Development Authority,
Pollution Control
(Georgia Power
Company),
10.600%, 10/01/15 10/95 at 102 A3 3,126,190
4,000,000 Burke County Development
Authority, Pollution
Control (Georgia Power
Company),
10.125%, 6/01/15 6/95 at 102 A3 4,129,360
- ------------------------------------------------------------------------------------
HAWAII - 0.3%
8,000,000 Hawaii Department of
Budget and Finance
(Kapiolani Health Care
System),
7.650%, 7/01/19 (Pre-
refunded to 7/01/01) 7/01 at 102 Aaa 9,148,000
- ------------------------------------------------------------------------------------
ILLINOIS - 16.1%
8,500,000 Illinois Development
Finance Authority
(Columbus-Cuneo-Cabrini
Medical Center),
8.500%, 2/01/15 2/00 at 102 BBB+ 9,070,605
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,500,000 Illinois Educational
Facilities Authority
(The University of
Chicago), 5.600%,
7/01/24 7/03 at 102 Aaa $ 7,686,805
Illinois General
Obligation:
15,100,000 6.200%, 10/01/04 10/02 at 102 AA- 15,913,286
14,750,000 5.875%, 6/01/10 6/02 at 102 AA- 14,784,958
5,000,000 5.875%, 6/01/11 6/02 at 102 AA- 4,899,550
10,000,000 5.700%, 4/01/18 4/03 at 102 AA- 9,366,500
5,435,000 Illinois Health
Facilities Authority
(Rush Presbyterian),
6.900%, 10/01/02 4/95 at 100 A1 5,434,185
12,420,000 Illinois Health
Facilities Authority
(LaGrange Hospital),
7.625%, 7/01/13 (Pre-
refunded to 7/01/96) 7/96 at 102 A 13,122,599
5,000,000 Illinois Health
Facilities Authority
(Evanston Hospital),
9.750%, 9/01/15 9/95 at 102 AA 5,211,050
10,900,000 Illinois Health
Facilities Authority
(Illinois Masonic
Medical Center),
10.250%, 9/01/15 (Pre-
refunded to 9/01/95) 9/95 at 102 AAA 11,418,295
10,000,000 Illinois Health
Facilities Authority
(Highland Park
Hospital),
6.200%, 10/01/22 10/02 at 102 Aaa 9,973,000
33,620,000 Illinois Health
Facilities Authority
(Rush Presbyterian-St.
Luke's Medical
Center), 5.500%,
11/15/25 11/03 at 102 Aaa 30,275,482
10,425,000 Illinois Independent
Higher Education Loan
Authority
(Northwestern
University),
8.000%, 12/01/07 12/96 at 102 AA- 11,195,512
Illinois Sales Tax:
21,670,000 6.000%, 6/15/18 6/01 at 100 AAA 21,189,143
14,200,000 5.250%, 6/15/18 6/03 at 102 AAA 12,421,024
Illinois Toll Highway
Authority:
20,000,000 6.450%, 1/01/13 1/03 at 102 A1 20,215,400
6,000,000 6.200%, 1/01/16 1/03 at 102 Aaa 5,999,340
Chicago General
Obligation:
4,900,000 9.000%, 1/01/99 (Pre-
refunded to 7/01/95) 7/95 at 102 Aaa 5,076,057
5,800,000 5.250%, 1/01/18 1/04 at 102 Aaa 5,144,020
15,770,000 5.625%, 1/01/23 1/03 at 102 Aaa 14,495,153
22,425,000 Chicago Metropolitan
Housing Development
Corporation, 6.900%,
7/01/22 7/02 at 102 AA 22,776,400
4,465,000 Chicago Motor Fuel Tax,
5.000%, 1/01/16 1/03 at 101 Aaa 3,851,866
31,000,000 Chicago O'Hare
International Airport,
5.000%, 1/01/16 1/04 at 102 A1 26,516,470
15,905,000 Cook County General
Obligation,
5.000%, 11/15/23 11/03 at 100 Aaa 13,414,277
</TABLE>
14
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
DuPage Water Commission,
General Obligation:
$ 51,290,000 7.875%, 3/01/11 (Pre-
refunded to 3/01/96) 3/96 at 102 Aaa $ 53,892,968
16,800,000 5.750%, 3/01/11 3/02 at 100 Aaa 16,747,584
9,500,000 5.250%, 5/01/14 5/03 at 102 AA 8,703,995
2,000,000 Hazel Crest (South
Suburban Hospital),
9.125%, 7/01/17 (Pre-
refunded to 7/01/97) 7/97 at 102 AAA 2,226,880
54,980,000 Metropolitan Pier and
Exposition Authority
(McCormick Place
Expansion Project),
6.500%, 6/15/27 6/03 at 102 A+ 55,177,378
Zion Elderly Housing
Corporation:
310,000 7.250%, 3/01/98 9/95 at 102 A 319,675
1,705,000 7.750%, 3/01/10 9/95 at 102 A 1,747,096
- --------------------------------------------------------------------------------
INDIANA - 1.5%
10,500,000 Indiana Health
Facilities Financing
Authority (Methodist
Hospital), 5.750%,
9/01/11 9/02 at 102 Aaa 10,163,265
12,550,000 Indiana Office Building
Commission,
8.750%, 7/01/12 (Pre-
refunded to 7/01/97) 7/97 at 102 Aaa 13,873,649
2,500,000 Indianapolis Local
Public Improvement,
Bond Bank, 6.750%,
2/01/20 2/03 at 102 A+ 2,556,000
3,135,000 Indianapolis Resource
Recovery (Ogden
Martin),
7.900%, 12/01/08 12/96 at 103 A 3,323,257
6,660,000 Evansville Hospital
Authority
(Daughters of Charity),
10.125%, 11/01/15 11/95 at 102 Aa 7,004,788
2,500,000 Southwind Housing, Inc.,
7.125%, 11/15/21 No Opt. Call AA 2,835,375
- --------------------------------------------------------------------------------
IOWA - 0.3%
4,350,000 Iowa Housing Finance
Authority,
5.875%, 8/01/08 8/95 at 101 Aa1 4,371,794
3,500,000 Davenport (Mercy
Hospital), 6.625%,
7/01/14 7/02 at 102 Aaa 3,631,530
- --------------------------------------------------------------------------------
KENTUCKY - 3.1%
Kentucky Housing
Corporation:
17,600,000 5.300%, 7/01/10 1/04 at 102 Aaa 16,093,616
10,100,000 5.400%, 7/01/14 1/04 at 102 Aaa 9,080,506
3,925,000 7.250%, 1/01/17 7/01 at 102 Aaa 4,101,507
Kentucky Turnpike
Authority:
9,860,000 8.000%, 7/01/03 7/97 at 102 A+ 10,701,255
8,980,000 5.000%, 7/01/08 7/97 at 100 A+ 8,286,834
34,500,000 Carroll County Pollution
Control
(Kentucky Utilities
Company),
7.450%, 9/15/16 9/02 at 102 Aa2 37,665,720
- --------------------------------------------------------------------------------
MAINE - 0.3%
10,000,000 Maine Housing Authority,
5.700%, 11/15/26 2/04 at 102 AA- 8,966,700
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS - 4.0%
$ 15,000,000 Massachusetts Bay
Transportation
Authority,
Certificates of
Participation, 7.650%,
8/01/15 8/00 at 102 Aaa $ 16,539,000
29,670,000 Massachusetts General
Obligation,
4.700%, 8/01/02 No Opt. Call A1 28,289,752
12,245,000 Massachusetts Housing
Finance Agency (GNMA),
9.125%, 12/01/20 12/95 at 102 Aaa 12,731,494
Massachusetts Water
Resources Authority:
9,765,000 5.250%, 3/01/13 3/03 at 102 A 8,905,094
6,500,000 7.500%, 4/01/16 (Pre-
refunded to 4/01/00) 4/00 at 102 Aaa 7,270,185
9,500,000 6.000%, 4/01/20 4/00 at 100 A 9,366,050
24,650,000 5.250%, 12/01/20 12/04 at 102 A 21,769,155
5,795,000 5.000%, 3/01/22 3/03 at 100 A 4,895,558
- --------------------------------------------------------------------------------
MICHIGAN - 5.8%
3,000,000 Michigan Hospital
Finance Authority
(Genesys Health
System), 7.500%,
10/01/27 10/05 at 100 BBB 2,900,670
4,595,000 Michigan Housing
Development Authority,
6.750%, 7/01/05 7/95 at 100 Aa1 4,628,544
10,000,000 Michigan Housing
Development Authority,
Rental Housing,
6.600%, 4/01/12 10/02 at 102 A+ 10,191,100
4,000,000 Michigan State Hospital
Finance Authority
(Henry Ford Hospital),
7.500%, 7/01/13
(Pre-refunded to
1/01/97) 1/97 at 102 Aaa 4,262,560
Michigan State Hospital
Finance Authority
(St. John Hospital):
9.125%, 12/01/02 (Pre-
1,990,000 refunded to 12/01/95) 12/95 at 102 A1 2,093,002
6,855,000 9.200%, 12/01/10 (Pre-
refunded to 12/01/95) 12/95 at 102 N/R 7,213,585
41,500,000 Michigan State Hospital
Finance Authority
(Harper Grace and
Huron Valley
Hospitals), 10.000%,
10/01/16 (Pre-refunded
to 10/01/95) 10/95 at 102 AAA 43,560,060
Michigan State Hospital
Finance Authority
(Detroit Medical
Center):
19,585,000 5.750%, 8/15/13 8/04 at 102 A- 17,841,935
49,000,000 5.500%, 8/15/23 8/04 at 102 A- 40,973,800
5,000,000 Detroit Sewage Disposal
System,
8.250%, 7/01/05 (Pre-
refunded to 7/01/97) 7/97 at 102 A- 5,467,900
16,805,000 St. Joseph Hospital
Finance Authority
(Mercy Memorial
Medical Center
Obligated Group),
5.250%, 1/01/16 1/04 at 102 Aaa 14,949,728
5,000,000 University of Michigan
Hospital,
6.625%, 12/01/10 12/96 at 100 AA 5,043,350
- --------------------------------------------------------------------------------
MINNESOTA - 0.8%
2,520,000 Minnesota Housing
Finance Agency,
6.250%, 2/01/20 8/95 at 102 A1 2,513,524
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MINNESOTA (CONTINUED)
$ 14,420,000 Minneapolis Convention
Center,
7.750%, 4/01/11 (Pre-
refunded to 4/01/96) 4/96 at 102 Aaa $ 15,167,677
5,000,000 University of Minnesota,
7.625%, 2/01/05 (Pre-
refunded to 2/01/96) 2/96 at 102 AAA 5,229,150
- ------------------------------------------------------------------------------------
MISSOURI - 1.0%
2,785,000 Missouri Environmental
Improvement and Energy
Resource Authority,
Pollution Control
(Associated Electric
Cooperative, Inc.),
7.900%, 11/15/14 5/96 at 103 Aa3 2,940,654
15,750,000 Missouri Health and
Educational Facilities
Authority (Heartland
Health), 8.125%,
10/01/10 10/99 at 102 1/2 BBB+ 17,837,033
6,195,000 Missouri Housing
Development Commission,
7.000%, 9/15/22 3/95 at 102 AA+ 6,317,413
- ------------------------------------------------------------------------------------
NEBRASKA - 1.6%
40,835,000 Consumers Public Power
District, 5.100%,
1/01/03 7/95 at 101 A1 40,941,988
2,615,000 Hall County Hospital
Authority
(Sisters of Charity),
6.750%, 12/01/07 6/95 at 103 Aa 2,693,450
- ------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
8,500,000 New Hampshire Industrial
Development Authority,
Pollution Control
(Central Maine Power
Company), 7.375%,
5/01/14 12/01 at 103 Baa3 8,823,680
- ------------------------------------------------------------------------------------
NEW JERSEY - 0.4%
10,750,000 New Jersey Housing and
Mortgage Finance
Agency, 6.950%,
11/01/13 5/02 at 102 A+ 11,199,565
- ------------------------------------------------------------------------------------
NEW YORK - 6.8%
8,000,000 New York Local
Government
Assistance Corporation,
7.000%, 4/01/18 (Pre-
refunded to 4/01/02) 4/02 at 102 Aaa 8,970,800
13,000,000 New York State Housing
Finance Agency,
Health Facilities (New
York City),
8.000%, 11/01/08 11/00 at 102 BBB+ 14,379,430
11,490,000 New York State Mortgage
Agency,
6.875%, 4/01/17 10/96 at 102 Aa 11,753,925
10,725,000 Battery Park City
Authority, 5.000%,
11/01/13 11/03 at 102 AA 9,122,149
New York Municipal
Assistance Corporation:
16,270,000 7.750%, 7/01/06 7/97 at 102 AA- 17,618,295
18,565,000 6.750%, 7/01/06 7/97 at 102 AA- 19,578,278
23,535,000 7.250%, 7/01/08 7/96 at 102 AA- 24,627,024
14,250,000 6.000%, 7/01/08 7/97 at 100 AA- 14,400,195
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
New York City General
Obligation:
$ 24,685,000 6.700%, 2/01/96 No Opt. Call A- $ 25,095,265
16,500,000 4.875%, 10/01/01 No Opt. Call A- 15,299,955
5,000,000 8.125%, 11/01/06 (Pre-
refunded to 11/01/97) 11/97 at 101 1/2 Aaa 5,492,800
8,000,000 5.750%, 8/15/11 8/03 at 102 A- 7,270,880
8,525,000 6.625%, 8/01/12 (Pre-
refunded to 8/01/02) 8/02 at 101 1/2 Aaa 9,335,728
5,000,000 Triborough Bridge and
Tunnel Authority,
General Purpose,
4.750%, 1/01/19 1/04 at 100 Aa 4,129,950
- ------------------------------------------------------------------------------------
NORTH CAROLINA - 4.2%
North Carolina Eastern
Municipal Power Agency:
53,810,000 6.250%, 1/01/12 1/03 at 102 A- 52,171,486
17,290,000 8.000%, 1/01/21 (Pre-
refunded to 1/01/98) 1/98 at 102 Aaa 19,000,154
North Carolina Municipal
Power Agency No. 1
(Catawba):
13,880,000 9.000%, 1/01/14 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 14,647,703
5,545,000 7.625%, 1/01/14 1/98 at 102 Aaa 5,939,471
20,080,000 8.500%, 1/01/17 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 21,105,285
Wilmington Housing
Authority:
210,000 7.750%, 6/01/98 No Opt. Call AA 215,462
1,195,000 7.750%, 6/01/10 No Opt. Call AA 1,283,848
- ------------------------------------------------------------------------------------
OHIO - 0.3%
6,285,000 Ohio Building Authority
(Correctional
Facilities), 9.100%,
10/01/04 (Pre-refunded
to 10/01/95) 10/95 at 103 Aaa 6,630,864
500,000 Ohio Building Authority
(Toledo Center),
9.100%, 10/01/04 10/95 at 103 A1 527,395
- ------------------------------------------------------------------------------------
OKLAHOMA - 0.2%
5,375,000 Comanche County Hospital
Authority,
8.050%, 7/01/16 (Pre-
refunded to 7/01/99) 7/99 at 102 AAA 6,089,391
- ------------------------------------------------------------------------------------
PENNSYLVANIA - 4.7%
Pennsylvania Housing
Finance Agency:
4,025,000 8.100%, 7/01/13 7/02 at 102 AAA 4,433,618
16,830,000 8.200%, 7/01/24 7/02 at 102 AAA 18,480,182
14,000,000 Pennsylvania Housing
Finance Agency, Rental
Housing (FNMA), 5.750%,
7/01/14 7/03 at 102 Aaa 13,408,360
15,000,000 Pennsylvania
Intergovernmental
Cooperative Authority
(Philadelphia Funding
Program), 5.00%,
6/15/22 6/03 at 100 Aaa 12,853,500
5,000,000 Allegheny County
Hospital Development
Authority (St. Francis
Medical Center),
8.125%, 6/01/13 (Pre-
refunded to 6/01/96) 6/96 at 102 Aaa 5,307,600
7,000,000 Geisinger Health System,
7.875%, 7/01/04 7/95 at 102 AA 7,212.940
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 10,000,000 Lehigh County Industrial
Development Authority,
Pollution Control
(Pennsylvania Power and
Light Company), 6.400%,
9/01/29 9/04 at 102 Aaa $ 10,138,100
6,550,000 Monroeville Hospital
Authority
(Forbes Health System),
9.700%, 10/01/13 (Pre-
refunded to 10/01/95) 10/95 at 102 AAA 6,863,811
9,300,000 Philadelphia Airport,
6.200%, 6/15/06 6/95 at 100 BBB 9,299,070
Philadelphia Water and
Sewer System:
5,890,000 7.250%, 7/01/14 (Pre-
refunded to 7/01/96) 7/96 at 102 AAA 6,139,442
7,000,000 7.000%, 8/01/18 8/01 at 100 BBB 7,195,720
28,075,000 Philadelphia Hospitals
and Higher Educational
Facilities Authority
(Pennsylvania
Hospital), 7.250%,
7/01/14 7/96 at 101 A 28,588,211
- ------------------------------------------------------------------------------------
RHODE ISLAND - 0.4%
3,900,000 Rhode Island Housing and
Mortgage Finance
Corporation, 8.875%,
7/01/07 7/95 at 100 A1 3,948,750
7,595,000 Rhode Island Convention
Center Authority,
5.000%, 5/15/20 5/03 at 100 Aaa 6,371,825
- ------------------------------------------------------------------------------------
TEXAS - 4.4%
Austin Water, Sewer and
Electric:
17,575,000 14.000%, 11/15/01 No Opt. Call A 25,332,429
4,000,000 11.000%, 11/15/02 (Pre-
refunded to 5/15/97) 5/97 at 100 AAA 4,509,000
Dallas-Fort Worth
International Airport:
9,400,000 9.000%, 11/01/05 11/95 at 102 1/2 A1 9,891,432
15,945,000 9.125%, 11/01/15 11/95 at 102 1/2 A1 16,782,910
19,400,000 Harris County Toll Road,
5.300%, 8/15/13 8/04 at 102 Aaa 18,080,218
7,000,000 Harris County Health
Facilities Development
Corporation (St. Luke's
Episcopal Hospital),
6.750%, 2/15/21 2/01 at 102 AA 7,120,190
3,345,000 Houston Water and Sewer
System, 8.200%,
12/01/15 (Pre-refunded
to 12/01/96) 12/96 at 102 AAA 3,608,118
San Antonio Electric and
Gas Systems:
5,000,000 8.000%, 2/01/09 (Pre-
refunded to 2/01/98) 2/98 at 102 Aaa 5,504,100
3,500,000 8.000%, 2/01/16 (Pre-
refunded to 2/01/98) 2/98 at 102 Aaa 3,852,870
16,000,000 5.000%, 2/01/17 2/02 at 101 Aa1 13,886,720
San Antonio Sewer
System:
6,750,000 8.000%, 5/01/10 (Pre-
refunded to 5/01/95) 5/95 at 102 Aaa 6,928,133
5,615,000 7.900%, 5/01/14 (Pre-
refunded to 5/01/97) 5/97 at 101 1/2 Aaa 6,048,253
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH - 4.2%
Intermountain Power
Agency:
$ 9,200,000 10.250%, 7/01/04 7/95 at 102 1/2 AA $ 9,592,380
6,345,000 10.000%, 7/01/10 7/95 at 102 1/2 AA 6,613,711
6,300,000 5.500%, 7/01/13 7/03 at 103 AA 5,878,971
32,080,000 7.875%, 7/01/14 7/96 at 102 AA- 33,670,847
3,200,000 9.625%, 7/01/19 7/95 at 102 AA 3,315,648
16,260,000 7.200%, 7/01/19 7/97 at 102 AA- 16,983,407
18,225,000 7.000%, 7/01/23 (Pre-
refunded to 7/01/95) 7/95 at 100 Aaa 18,396,497
22,140,000 5.000%, 7/01/23 7/03 at 100 AA 18,535,165
1,835,000 Layton Industrial
Development (K-Mart),
8.750%, 6/01/05 6/95 at 100 1/2 Baa1 1,859,442
- -----------------------------------------------------------------------------------
VERMONT - 0.1%
270,000 University of Vermont,
Housing, Dining and
Student Services,
6.300%, 7/01/06 7/95 at 101 AA- 274,136
- -----------------------------------------------------------------------------------
VIRGINIA - 3.9%
Virginia Housing
Development Authority:
19,080,000 5.550%, 5/01/08 5/03 at 102 AA 18,253,645
28,075,000 5.900%, 5/01/14 5/03 at 102 AA 26,386,570
3,275,000 6.700%, 11/01/21 4/95 at 101 AA 3,304,573
50,000,000 7.150%, 1/01/33 1/02 at 102 AA+ 52,085,000
6,240,000 Chesapeake Hospital
Authority
(Chesapeake General
Hospital),
7.625%, 7/01/18 (Pre-
refunded to 7/01/98) 7/98 at 102 Aaa 6,859,757
1,190,000 Chesapeake Industrial
Development Authority
(Camelot Hall Nursing
Home), 7.500%, 9/01/01 No Opt. Call N/R 1,194,129
- -----------------------------------------------------------------------------------
WASHINGTON - 7.3%
Washington Public Power
Supply System,
Nuclear Project No. 1:
14,260,000 7.000%, 7/01/07 No Opt. Call AA 15,489,212
7,805,000 7.000%, 7/01/09 No Opt. Call AA 8,414,804
18,500,000 5.750%, 7/01/13 7/03 at 102 AA 17,079,570
10,000,000 5.375%, 7/01/15 7/03 at 102 AA 8,821,400
5,000,000 7.125%, 7/01/16 No Opt. Call AA 5,542,700
10,000,000 5.700%, 7/01/17 7/03 at 102 Aaa 9,307,400
Washington Public Power
Supply System,
Nuclear Project No. 3:
9,180,000 5.300%, 7/01/10 7/03 at 102 AA 8,209,765
51,070,000 5.375%, 7/01/15 7/03 at 102 AA 45,050,890
2,095,000 15.000%, 7/01/18 (Pre-
refunded to 7/01/96) 7/96 at 103 Aaa 2,433,342
8,835,000 5.700%, 7/01/18 7/03 at 102 AA 7,990,991
11,545,000 5.500%, 7/01/18 7/03 at 102 AA 10,204,510
6,635,000 Chelan County Public
Utility District No. 1,
5.125%, 7/01/23 7/95 at 100 A1 6,270,207
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 33,576,000 Chelan County Public
Utility District No. 1
(Rocky Reach Hydro-
Electric System),
5.000%, 7/01/13 7/95 at 100 A1 $ 33,573,313
16,920,000 Columbia Storage Power
Exchange,
3.875%, 4/01/03 4/95 at 100 AA 16,919,491
4,950,000 Seattle Metropolitan
Sewer,
7.400%, 1/01/16 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 5,176,066
- --------------------------------------------------------------------------------
WISCONSIN - 2.2%
13,500,000 Wisconsin Health and
Educational Facilities
Authority (Aurora
Health Care Obligated
Group), 5.250%, 8/15/23 8/03 at 102 Aaa 11,762,550
3,250,000 Wisconsin Health and
Educational Facilities
Authority (Froedtert
Memorial Lutheran
Hospital), 5.875%,
10/01/13 10/04 at 102 Aaa 3,137,614
Wisconsin Housing and
Economic Development
Authority:
2,760,000 9.875%, 11/01/03 3/95 at 101 A1 2,825,550
3,205,000 10.000%, 11/01/10 3/95 at 101 A1 3,265,093
23,200,000 5.800%, 11/01/13 1/04 at 104 A1 21,669,263
4,500,000 5.800%, 6/01/17 No Opt. Call AA 4,378,950
8,500,000 7.050%, 11/01/22 4/02 at 102 A1 8,728,395
4,815,000 Sheboygan Pollution
Control
(Wisconsin Electric
Power Company),
9.750%, 9/15/15 9/95 at 102 AA+ 5,033,360
- --------------------------------------------------------------------------------
PUERTO RICO - 0.3%
8,000,000 Puerto Rico Aqueduct and
Sewer Authority,
7.875%, 7/01/17 7/98 at 102 A 8,772,240
- --------------------------------------------------------------------------------
$2,727,460,452 Total Investments -
(cost $2,622,064,371) -
98.7% 2,704,785,376
- --------------------------------------------------------------------------------
- -------------------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 0.1%
$ 2,700,000 Michigan Strategic Fund
(Dow Chemical Company),
Variable Rate Demand
Bonds, 3.800%, 2/01/09+ P-1 2,700,000
- --------------------------------------
- --------------------------------------------------------------------------------
Other Assets Less
Liabilities - 1.2% 33,692,723
- --------------------------------------------------------------------------------
Net Assets - 100% $2,741,178,099
</TABLE>
- --------------------------------------------------------------------------------
21
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 75 $ 859,743,088 32%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 81 1,028,411,785 38
PORTFOLIO OF A+ A1 24 344,778,946 13
INVESTMENTS A, A- A, A2, A3 26 347,109,113 13
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 11 95,185,580 3
TEMPORARY Non-rated Non-rated 5 29,556,864 1
INVESTMENTS):
- -----------------------------------------------------------------------------------------
TOTAL 222 $2,704,785,376 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (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.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
+ 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.
22
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
NUVEEN INSURED MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ALABAMA - 4.2%
$ 2,120,000 Albertville Water Supply
Board, 6.700%, 3/01/11 3/02 at 102 Aaa $ 2,244,762
4,960,000 Auburn Government Utility
Services Corporation,
Wastewater Treatment,
7.300%, 1/01/12 12/99 at 102 Aaa 5,288,104
500,000 Auburn Water Works Board,
5.750%, 9/01/22 9/02 at 102 Aaa 478,080
1,875,000 Birmingham Special Care
Facilities Financing
Authority (Baptist Medical
Center),
7.000%, 1/01/21 1/01 at 102 Aaa 1,963,275
Daphne Utilities Board,
Water, Gas and Sewer:
1,255,000 7.350%, 6/01/20 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 1,401,069
1,225,000 7.350%, 6/01/20 6/00 at 102 Aaa 1,311,840
3,000,000 Madison General Obligation,
6.250%, 2/01/19 2/04 at 102 Aaa 3,044,880
3,000,000 Mobile County General
Obligation,
6.700%, 2/01/11 (Pre-
refunded to 2/01/00) 2/00 at 102 Aaa 3,252,030
2,375,000 Muscle Shoals Utilities
Board,
Water and Sewer System,
7.250%, 4/01/17 (Pre-
refunded to 4/01/99) 4/99 at 102 Aaa 2,611,028
3,000,000 Oneanta Utilities Board,
6.900%, 11/01/24 11/04 at 102 Aaa 3,218,760
1,250,000 Warrior River Water
Authority, 5.350%, 8/01/23 8/03 at 102 Aaa 1,120,238
West Morgan--East Lawrence
Water Authority:
2,200,000 6.800%, 8/15/19 8/04 at 102 Aaa 2,340,536
3,000,000 6.850%, 8/15/25 8/04 at 102 Aaa 3,203,940
- -------------------------------------------------------------------------------
ALASKA - 0.6%
5,000,000 Anchorage General
Obligation, 5.600%,
1/01/14 1/04 at 100 Aaa 4,721,800
- -------------------------------------------------------------------------------
ARIZONA - 0.8%
6,000,000 Tempe Union High School
District No. 213, General
Obligation, 6.000%,
7/01/10 7/04 at 101 Aaa 6,153,300
- -------------------------------------------------------------------------------
CALIFORNIA - 13.6%
5,000,000 California Health
Facilities Financing
Authority (Catholic
Healthcare West), 5.000%,
7/01/14 7/04 at 102 Aaa 4,421,400
Brea Public Financing
Authority, Tax Allocation:
3,525,000 7.000%, 8/01/15 (Pre-
refunded to 8/01/01) 8/01 at 102 Aaa 3,936,755
1,475,000 7.000%, 8/01/15 8/01 at 102 Aaa 1,576,362
5,000,000 Brea Redevelopment Agency,
Tax Allocation,
5.750%, 8/01/23 8/03 at 102 Aaa 4,771,300
5,000,000 Contra Costa Water
Authority, 5.750%,
10/01/20 10/02 at 102 Aaa 4,780,650
4,150,000 Fairfield Public Finance
Authority, 5.500%, 8/01/23 8/03 at 102 Aaa 3,789,531
Lancaster Redevelopment
Agency, Tax Allocation:
2,500,000 6.100%, 8/01/19 8/01 at 102 Aaa 2,509,400
2,500,000 5.800%, 8/01/23 8/03 at 102 Aaa 2,395,925
10,700,000 Los Angeles Community
Redevelopment Agency
(Bunker Hill Project),
5.625%, 12/01/23 12/03 at 102 Aaa 9,851,062
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 14,740,000 Los Angeles Convention and
Exhibition Center
Authority, 5.375%, 8/15/18 8/03 at 102 Aaa $ 13,432,415
4,570,000 Los Angeles Wastewater
System, 5.800%, 6/01/21 6/03 at 102 Aaa 4,385,372
4,500,000 Los Angeles County
Metropolitan
Transportation Authority,
Sales Tax, 5.625%, 7/01/18 7/03 at 102 Aaa 4,262,085
4,500,000 M-S-R Public Power Agency
(San Juan Project),
6.000%, 7/01/20 7/03 at 102 Aaa 4,441,860
1,700,000 Monterey Regional Water
Pollution Control Agency,
Wastewater System,
5.300%, 6/01/14 6/03 at 100 Aaa 1,548,751
2,500,000 Moulton Niguel Water
District, Certificates of
Participation,
5.300%, 9/01/23 9/03 at 102 Aaa 2,206,775
2,500,000 Oakland General Obligation,
6.000%, 6/15/22 6/02 at 102 Aaa 2,466,675
3,000,000 Rancho Cucamonga
Redevelopment Agency,
5.500%, 9/01/23 3/04 at 102 Aaa 2,758,080
5,295,000 Riverside County Desert,
Justice Facility
Corporation, Certificates
of Participation,
6.000%, 12/01/12 12/04 at 101 Aaa 5,331,959
2,250,000 Sacramento Municipal
Utility District,
Electric System,
6.500%, 9/01/21 (Pre-
refunded to 9/01/01) 9/01 at 102 Aaa 2,456,325
4,750,000 San Francisco City and
County Sewer System,
5.375%, 10/01/22 10/02 at 102 Aaa 4,275,238
7,500,000 University of California
Housing System,
5.500%, 11/01/18 11/03 at 102 Aaa 6,948,225
10,000,000 University of California,
6.375%, 9/01/24 9/02 at 102 Aaa 10,145,700
- -------------------------------------------------------------------------------
COLORADO - 1.1%
4,500,000 Denver Board of Water
Commissioners,
Certificates of
Participation, 6.625%,
11/15/11 11/01 at 101 Aaa 4,747,005
3,500,000 Jefferson County Equipment
Lease, Certificates of
Participation, 6.650%,
12/01/08 12/02 at 102 Aaa 3,831,905
- -------------------------------------------------------------------------------
DELAWARE - 0.5%
3,600,000 Delaware Economic
Development Authority,
Pollution Control
(Delmarva Power and
Light Company), 6.750%,
5/01/19 5/02 at 102 Aaa 3,767,292
- -------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6%
District of Columbia
General Obligation:
2,500,000 7.500%, 6/01/10 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 2,804,375
6,000,000 6.100%, 6/01/11 6/04 at 102 Aaa 5,932,320
2,000,000 District of Columbia
(American College of
Obstetricians and
Gynecologists),
6.500%, 8/15/18 8/01 at 102 Aaa 2,023,240
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA
(CONTINUED)
$ 1,000,000 Washington Metropolitan
Area Transit Authority,
5.250%, 7/01/14 1/04 at 102 Aaa $ 909,430
- -------------------------------------------------------------------------------
FLORIDA - 0.8%
Florida Keys Aqueduct
Authority:
920,000 6.750%, 9/01/21 (Pre-
refunded to 9/01/01) 9/01 at 101 Aaa 1,003,398
80,000 6.750%, 9/01/21 9/01 at 101 Aaa 83,682
Brevard County, Utility
System:
1,520,000 7.375%, 3/01/14 (Pre-
refunded to 3/01/98) 3/98 at 102 Aaa 1,649,869
295,000 7.375%, 3/01/14 3/98 at 102 Aaa 314,730
2,405,000 South Broward Hospital
District, 7.500%, 5/01/08 5/03 at 102 Aaa 2,726,693
- -------------------------------------------------------------------------------
GEORGIA - 2.5%
5,000,000 Albany Sewerage System,
6.625%, 7/01/17 7/02 at 102 Aaa 5,231,400
5,000,000 Appling County Development
Authority (Oglethorpe
Power Corporation),
7.150%, 1/01/21 1/04 at 101 Aaa 5,447,900
1,000,000 Atlanta Board of Education,
Certificates of
Participation,
7.125%, 6/01/12 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 1,106,140
2,250,000 Chatham County Hospital
Authority
(Savannah Memorial Medical
Center),
7.000%, 1/01/21 1/01 at 102 Aaa 2,396,093
1,500,000 Columbus Water and Sewerage
System, 5.700%, 5/01/20 11/03 at 102 Aaa 1,441,785
2,500,000 Fulton-DeKalb Hospital
Authority
(Grady Memorial),
5.500%, 1/01/20 7/03 at 102 Aaa 2,309,125
1,000,000 Georgia Municipal Electric
Authority,
6.500%, 1/01/26 1/04 at 102 Aaa 1,028,090
- -------------------------------------------------------------------------------
ILLINOIS - 9.9%
6,810,000 Illinois Health Facilities
Authority
(Methodist Health
Services), 8.000%, 8/01/15 2/99 at 103 Aaa 7,444,011
1,500,000 Illinois Health Facilities
Authority
(Rush-Presbyterian-St.
Luke's Medical Center),
5.500%, 11/15/25 11/03 at 102 Aaa 1,350,780
Illinois Health Facilities
Authority (Community
Provider Pooled Loan
Program):
20,000 7.900%, 8/15/03 (Pre-
refunded to 8/15/95) 8/95 at 102 Aaa 20,732
159,000 7.900%, 8/15/03 No Opt. Call Aaa 186,540
1,304,000 7.900%, 8/15/03 8/95 at 102 Aaa 1,350,475
Illinois Health Facilities
Authority
(Ingalls Health System):
7,000,000 6.250%, 5/15/14 5/04 at 102 Aaa 7,038,360
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 2,100,000 7.000%, 1/01/19 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa $ 2,299,143
4,000,000 Illinois Health
Facilities Authority
(Northwestern Medical
Faculty Foundation),
6.500%, 11/15/15 11/04 at 102 Aaa 4,123,600
7,705,000 Illinois Toll Highway
Authority,
6.200%, 1/01/16 1/03 at 102 Aaa 7,704,152
2,500,000 Chicago General
Obligation
(Central Public Library
Project),
6.850%, 1/01/17 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 Aaa 2,760,050
5,000,000 Chicago General
Obligation,
6.250%, 1/01/12 1/02 at 102 Aaa 5,060,350
1,500,000 Chicago Public Building
Commission (Community
College District No.
508), 7.700%, 1/01/08 No Opt. Call Aaa 1,650,795
18,300,000 Chicago Public Building
Commission (Board of
Education),
5.750%, 12/01/18 12/03 at 102 Aaa 17,411,901
6,540,000 Cicero General
Obligation,
6.400%, 12/01/14 12/04 at 102 Aaa 6,445,497
2,500,000 Community College
District No. 508, Cook
County, 8.750%, 1/01/07 No Opt. Call Aaa 3,182,250
2,370,000 Eastern Illinois
University,
6.375%, 4/01/16 4/04 at 102 Aaa 2,427,544
4,000,000 Northlake General
Obligation,
6.250%, 12/01/11 12/01 at 102 Aaa 4,080,520
- -------------------------------------------------------------------------------
INDIANA - 7.1%
5,000,000 Indiana Health
Facilities Financing
Authority (Community
Hospitals Project),
6.400%, 5/01/12 5/02 at 102 Aaa 5,107,150
Indiana Municipal Power
Agency,
Power Supply System:
1,000,000 7.100%, 1/01/15 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,099,290
5,000,000 6.125%, 1/01/19 1/03 at 102 Aaa 4,946,950
3,750,000 Indianapolis Gas Utility
System, 6.200%, 6/01/23 6/02 at 102 Aaa 3,757,388
2,000,000 Allen County
Certificates of
Participation, 6.500%,
11/01/17 5/02 at 101 Aa 2,036,500
5,350,000 Jasper County Pollution
Control
(Northern Indiana
Public Service
Company),
7.100%, 7/01/17 7/01 at 102 Aaa 5,677,153
2,000,000 Lawrence Central High
School Building
Corporation, First
Mortgage,
7.250%, 7/01/08 7/00 at 102 Aaa 2,141,760
Marion County Convention
and Recreational
Facilities Authority,
Excise Taxes Lease
Rental:
3,300,000 7.000%, 6/01/21 (Pre-
refunded to 6/01/01) 6/01 at 102 Aaa 3,665,112
500,000 7.000%, 6/01/21 6/01 at 102 Aaa 528,455
2,250,000 Monroe County Hospital
Authority
(Bloomington Hospital),
7.125%, 5/01/11 5/99 at 101 Aaa 2,368,058
1,000,000 Princeton Pollution
Control (Public Service
Company of Indiana),
7.375%, 3/15/12 3/00 at 102 Aaa 1,074,360
1,800,000 Randolph County Jail
Building Corporation,
First Mortgage,
6.250%, 8/01/13 8/02 at 101 Aaa 1,823,382
</TABLE>
26
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA (CONTINUED)
$ 4,000,000 Richmond Hospital Authority
(Reid Hospital and Health
Care), 6.250%, 1/01/12 1/02 at 102 Aaa $ 4,053,760
St. Joseph County Hospital
Authority
(Memorial Hospital of
South Bend):
2,000,000 7.000%, 8/15/20 8/01 at 102 Aaa 2,109,440
2,500,000 6.250%, 8/15/22 2/03 at 102 Aaa 2,483,675
2,190,000 Shelby County Jail Building
Corporation,
First Mortgage,
6.500%, 7/15/09 7/02 at 102 Aaa 2,293,061
South Bend Community School
Building Corporation,
First Mortgage:
4,000,000 7.000%, 1/15/11 (Pre-
refunded to 7/15/99) 7/99 at 100 Aaa 4,315,800
1,380,000 6.650%, 1/15/14 (Pre-
refunded to 7/15/00) 7/00 at 100 Aaa 1,479,443
2,265,000 Southwest Allen Multi-
School Building
Corporation,
6.375%, 1/15/09 1/02 at 101 Aaa 2,339,020
- -------------------------------------------------------------------------------
KENTUCKY - 0.3%
Louisville and Jefferson
County Metropolitan Sewer
District:
1,000,000 7.000%, 5/01/09 (Pre-
refunded to 5/01/99) 5/99 at 102 Aaa 1,091,890
1,000,000 7.350%, 5/01/19 (Pre-
refunded to 5/01/00) 5/00 at 102 Aaa 1,115,310
- -------------------------------------------------------------------------------
LOUISIANA - 3.4%
Louisiana General
Obligation:
5,000,000 6.500%, 5/01/09 5/02 at 102 Aaa 5,265,850
2,000,000 6.500%, 5/01/12 5/02 at 102 Aaa 2,088,320
1,700,000 Louisiana Public Facilities
Authority
(Our Lady of Lourdes
Regional Medical Center),
6.450%, 2/01/22 2/02 at 102 Aaa 1,724,752
7,000,000 Louisiana Public Facilities
Authority
(Southern Baptist
Hospital), 6.800%, 5/15/12 5/02 at 102 Aaa 7,396,130
1,655,000 Louisiana Public Facilities
Authority (West Jefferson
Medical Center), 7.900%,
12/01/15 12/98 at 102 Aaa 1,805,539
1,000,000 Louisiana State University
and Agricultural and
Mechanical College,
5.750%, 7/01/74 7/04 at 102 Aaa 969,290
Tangipahoa Parish Hospital
Service District No. 1:
1,250,000 6.125%, 2/01/14 2/04 at 102 Aaa 1,255,350
4,750,000 6.250%, 2/01/24 2/04 at 102 Aaa 4,764,583
- -------------------------------------------------------------------------------
MAINE - 0.6%
3,175,000 Maine Health and Higher
Educational Facilities
Authority, 7.00%, 7/01/24 7/04 at 102 Aaa 3,379,311
Old Orchard Beach General
Obligation:
750,000 6.650%, 9/01/09 9/02 at 103 Aaa 806,820
500,000 6.650%, 9/01/10 9/02 at 103 Aaa 535,015
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND - 0.6%
$ 3,000,000 Maryland Health and Higher
Educational Facilities
Authority (Frederick
Memorial Hospital),
5.000%, 7/01/23 7/03 at 102 Aaa $ 2,548,380
1,000,000 Morgan State University,
Academic and Auxiliary
Fees, 7.000%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,101,570
1,000,000 Prince George's County
Industrial
Development Authority
(Upper Marlboro
Justice Center Project),
7.000%, 6/30/19 (Pre-
refunded to 6/30/99) 6/99 at 102 Aaa 1,093,600
- -------------------------------------------------------------------------------
MASSACHUSETTS - 4.3%
2,000,000 Massachusetts General
Obligation,
7.000%, 6/01/09 (Pre-
refunded to 6/01/99) 6/99 at 102 Aaa 2,184,720
2,500,000 Massachusetts Bay
Transportation Authority,
General Transportation
System,
7.100%, 3/01/13 (Pre-
refunded to 3/01/99) 3/99 at 102 Aaa 2,730,525
1,250,000 Massachusetts Bay
Transportation Authority,
Certificates of
Participation,
7.650%, 8/01/15 8/00 at 102 Aaa 1,378,250
2,000,000 Massachusetts Health and
Educational Facilities
Authority (Capital Asset
Program), 7.300%, 10/01/18 4/00 at 102 Aaa 2,161,300
3,400,000 Massachusetts Health and
Educational Facilities
Authority (New England
Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 3,505,774
4,000,000 Massachusetts Health and
Educational Facilities
Authority (South Shore
Hospital), 6.500%, 7/01/22 7/02 at 102 Aaa 4,075,160
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Falmouth
Hospital), 5.625%, 7/01/11 7/03 at 102 Aaa 955,180
2,800,000 Massachusetts Health and
Educational Facilities
Authority (Lahey Clinic
Medical Center),
5.625%, 7/01/15 7/03 at 102 Aaa 2,645,916
3,875,000 Massachusetts Health and
Educational Facilities
Authority (Cape Cod Health
System),
5.250%, 11/15/21 11/03 at 102 AAA 3,351,914
2,500,000 Massachusetts Housing
Finance Agency, Housing
Project, 6.150%, 10/01/15 4/03 at 102 Aaa 2,479,650
1,660,000 Massachusetts Turnpike
Authority, 5.125%, 1/01/23 1/03 at 102 Aaa 1,434,423
3,500,000 Boston City Hospital (FHA-
Insured),
7.625%, 2/15/21 (Pre-
refunded to 8/15/00) 8/00 at 102 Aaa 3,951,955
1,150,000 Haverhill General
Obligation,
7.000%, 6/15/12 6/02 at 102 Aaa 1,244,737
</TABLE>
28
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN - 4.9%
$ 1,535,000 Michigan Housing
Development Authority,
5.625%, 10/15/18 10/03 at 103 Aaa $ 1,397,863
2,400,000 Michigan Hospital
Finance Authority
(Henry Ford Health
System),
5.750%, 9/01/17 9/02 at 102 Aaa 2,275,416
2,000,000 Michigan Strategic Fund
(The Detroit Edison
Company),
6.875%, 12/01/21 12/01 at 102 Aaa 2,112,040
12,130,000 Bay City General
Obligation, Unlimited
Tax, 0.000%, 6/01/21 No Opt. Call Aaa 2,403,923
5,000,000 Caledonia Community
Schools General
Obligation,
6.700%, 5/01/22 (Pre-
refunded to 5/01/02) 5/02 at 102 Aaa 5,506,750
2,000,000 Detroit Sewage Disposal
System, 6.625%, 7/01/21 7/01 at 102 Aaa 2,068,960
2,000,000 Grand Rapids Water
Supply System,
6.500%, 1/01/15 1/01 at 102 Aaa 2,069,180
1,750,000 Grand Traverse County
Hospital Finance
Authority (Munson
Healthcare),
6.250%, 7/01/22 7/02 at 102 Aaa 1,765,208
5,000,000 Jackson County Hospital
Finance Authority
(W. A. Foote Memorial
Hospital),
5.250%, 6/01/23 6/03 at 102 Aaa 4,399,900
8,000,000 Livonia Public School
District, General
Obligation,
5.500%, 5/01/21 5/03 at 102 Aaa 7,385,360
6,085,000 River Rouge School
District, Unlimited
Tax, 5.625%, 5/01/22 5/03 at 101 1/2 Aaa 5,718,440
- -------------------------------------------------------------------------------
MISSISSIPPI - 0.8%
6,400,000 Medical Center
Educational Building
Corporation (University
of Mississippi Medical
Center Project),
5.900%, 12/01/23 12/04 at 102 Aaa 6,134,784
- -------------------------------------------------------------------------------
NEBRASKA - 0.2%
1,500,000 Lancaster County
Hospital Authority No.
1
(Bryan Memorial
Hospital),
6.700%, 6/01/22 6/02 at 102 Aaa 1,575,750
- -------------------------------------------------------------------------------
NEVADA - 1.0%
2,000,000 Clark County Industrial
Development
(Nevada Power Company),
7.200%, 10/01/22 10/02 at 102 Aaa 2,150,300
4,555,000 Reno, Insured Hospital
(St. Mary's Regional
Medical Center),
5.625%, 5/15/23 5/03 at 102 Aaa 4,179,213
1,160,000 University of Nevada
System,
7.125%, 7/01/16 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,284,526
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW HAMPSHIRE - 0.5%
New Hampshire Higher
Educational and Health
Facilities Authority,
University System:
$ 1,000,000 7.625%, 7/01/20 (Pre-
refunded to 7/01/99) 7/99 at 102 Aaa $ 1,117,350
2,850,000 6.250%, 7/01/20 7/02 at 102 Aaa 2,855,672
- -------------------------------------------------------------------------------
NEW JERSEY - 0.5%
1,480,000 New Jersey Housing and
Mortgage Finance
Agency, Home Mortgage
Purchase,
8.100%, 10/01/17 4/98 at 103 Aaa 1,587,700
2,015,000 Pennsauken Township,
Housing Finance
Corporation,
8.000%, 4/01/11 4/95 at 105 Aaa 2,118,087
- -------------------------------------------------------------------------------
NEW MEXICO - 1.0%
5,000 New Mexico Mortgage
Finance Authority,
Single Family Mortgage,
8.625%, 7/01/17 7/97 at 103 Aaa 5,322
3,000,000 Albuquerque Hospital
System (Presbyterian
Healthcare Services),
6.600%, 8/01/07 8/97 at 102 Aaa 3,107,670
4,445,000 Farmington Pollution
Control (Public Service
Company of New Mexico),
6.375%, 12/15/22 12/02 at 102 Aaa 4,550,080
- -------------------------------------------------------------------------------
NEW YORK - 13.0%
New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities
Improvement:
2,000,000 6.375%, 8/15/17 12/02 at 102 Aaa 2,037,480
6,530,000 5.900%, 8/15/22 8/02 at 102 Aaa 6,373,737
3,000,000 New York State Urban
Development
Corporation,
Correctional
Facilities,
5.250%, 1/01/18 1/03 at 102 Aaa 2,694,450
3,000,000 Dormitory Authority of
the State of New York
(City University),
5.750%, 7/01/18 No Opt. Call Aaa 2,906,160
Dormitory Authority of
the State of New York
(Mount Sinai School of
Medicine):
1,775,000 5.000%, 7/01/16 7/04 at 102 Aaa 1,556,977
8,375,000 5.000%, 7/01/21 7/04 at 102 Aaa 7,232,985
Metropolitan
Transportation
Authority
Commuter Facilities:
4,955,000 6.250%, 7/01/17 7/02 at 102 Aaa 5,027,938
5,000,000 6.375%, 7/01/18 7/04 at 101 1/2 Aaa 5,135,550
6,925,000 6.250%, 7/01/22 7/02 at 102 Aaa 6,992,519
New York City General
Obligation:
5,715,000 6.625%, 8/01/12 (Pre-
refunded to 8/01/02) 8/02 at 101 1/2 Aaa 6,258,497
285,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 298,917
3,010,000 6.000%, 5/15/16 5/03 at 101 1/2 Aaa 2,991,790
3,750,000 7.000%, 2/01/18 2/02 at 101 1/2 Aaa 4,036,838
1,000,000 New York City
Educational
Construction Fund,
5.625%, 4/01/13 4/04 at 101 1/2 Aaa 958,880
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 3,885,000 New York City Health and
Hospitals Corporation,
Health System,
5.750%, 2/15/22 2/03 at 102 Aaa $ 3,691,333
New York City Municipal
Water Finance
Authority, Water and
Sewer System:
4,155,000 6.750%, 6/15/14 (Pre-
refunded to 6/15/99) 6/99 at 101 1/2 Aaa 4,496,458
2,025,000 6.750%, 6/15/14 6/99 at 101 1/2 Aaa 2,107,721
6,330,000 6.750%, 6/15/16 6/01 at 101 Aaa 6,648,536
4,470,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 4,297,771
New York City Transit
Authority Transit
Facilities (Livingston
Plaza Project):
1,000,000 7.500%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,123,360
3,900,000 5.400%, 1/01/18 No Opt. Call Aaa 3,578,991
New York City Industrial
Development Agency,
Civic Facility (USTA
National Tennis Center
Incorporated Project):
3,500,000 6.500%, 11/15/10 11/04 at 102 Aaa 3,696,630
3,000,000 6.600%, 11/15/11 11/04 at 102 Aaa 3,181,980
2,765,000 Suffolk County Water
Authority, Water
System, 5.000%, 6/01/17 6/03 at 102 Aaa 2,433,670
Triborough Bridge and
Tunnel Authority,
Special Obligation:
5,240,000 6.875%, 1/01/15 1/01 at 102 Aaa 5,576,775
3,015,000 5.500%, 1/01/17 1/02 at 100 Aaa 2,829,065
- -------------------------------------------------------------------------------
NORTH CAROLINA - 0.3%
2,500,000 Charlotte Convention
Facility, Certificates
of Participation,
5.250%, 12/01/20 12/03 at 102 Aaa 2,273,650
- -------------------------------------------------------------------------------
OHIO - 0.8%
1,000,000 Columbus City School
District,
General Obligation,
Unlimited Tax,
7.000%, 12/01/11 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 1,107,310
2,500,000 Dublin City School
District, General
Obligation,
6.200%, 12/01/19 12/02 at 102 Aaa 2,538,075
1,500,000 Pickerington Local
School District,
General Obligation,
5.375%, 12/01/19 12/04 at 102 Aaa 1,385,190
1,000,000 South Euclid-Lyndhurst
City School District,
General Obligation,
Unlimited Tax,
5.300%, 12/01/14 12/04 at 102 Aaa 929,340
- -------------------------------------------------------------------------------
OKLAHOMA - 0.7%
5,000,000 Oklahoma Industries
Authority (Baptist
Center--South Oklahoma
City Hospital),
6.250%, 08/15/12 8/05 at 102 Aaa 5,047,250
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OKLAHOMA (CONTINUED)
$ 435,000 Muskogee County Home
Finance Authority,
Single Family Mortgage,
7.600%, 12/01/10 6/00 at 102 Aaa $ 465,789
- -------------------------------------------------------------------------------
PENNSYLVANIA - 3.1%
5,000,000 Lehigh County General
Purpose Authority (St.
Luke's Hospital of
Bethlehem),
6.250%, 7/01/22 7/02 at 102 Aaa 5,038,150
North Penn Water
Authority:
750,000 6.875%, 11/01/19 11/04 at 101 Aaa 804,638
3,000,000 7.000%, 11/01/24 11/04 at 101 Aaa 3,245,850
500,000 Northampton County
Higher Educational
Authority (Moravian
College),
7.150%, 6/01/09 6/98 at 101 Aaa 527,975
1,000,000 Northampton County
Higher Education
Authority (Lehigh
University),
7.000%, 10/15/11 10/01 at 102 Aaa 1,085,210
7,500,000 Philadelphia Water and
Wastewater System,
5.500%, 6/15/14 6/03 at 102 Aaa 7,049,475
3,900,000 Philadelphia Municipal
Authority, Justice
Lease, 7.125%, 11/15/18
(Pre-refunded to
11/15/01) 11/01 at 102 Aaa 4,375,722
1,000,000 Washington County
Hospital Authority,
Hospital Refunding,
7.150%, 7/01/17 7/00 to 102 Aaa 1,054,030
- -------------------------------------------------------------------------------
RHODE ISLAND - 2.7%
Rhode Island Depositors
Economic Protection
Corporation, Special
Obligation:
3,750,000 6.000%, 8/01/17 8/03 at 102 Aaa 3,686,288
2,250,000 6.625%, 8/01/19 (Pre-
refunded to 8/01/02) 8/02 at 102 Aaa 2,468,723
6,255,000 Rhode Island Health and
Educational Building
Corporation, Higher
Education Auxiliary
Enterprise,
5.250%, 9/15/23 9/03 at 102 Aaa 5,449,043
4,000,000 Cranston, General
Obligation,
7.200%, 7/15/11 (Pre-
refunded to 7/15/01) 7/01 at 101 1/2 Aaa 4,474,920
3,130,000 Kent County Water
Authority,
6.350%, 7/15/14 7/04 at 102 Aaa 3,219,142
1,000,000 Providence Housing
Development
Corporation, FHA-
Insured (Barbara Jordan
Apartments), 6.650%,
7/01/15 7/04 at 102 Aaa 1,026,320
- -------------------------------------------------------------------------------
SOUTH CAROLINA - 1.3%
1,000,000 Aiken Water and Sewer
System, 7.250%, 1/01/14 1/00 at 102 Aaa 1,067,190
Charleston County Public
Facilities Corporation,
Certificates of
Participation:
1,500,000 6.875%, 6/01/14 6/04 at 102 Aaa 1,617,600
2,500,000 7.00%, 6/01/19 6/04 at 102 Aaa 2,702,175
Rock Hill Combined
Utility System Revenue:
2,000,000 6.375%, 1/01/15 1/01 at 102 Aaa 2,046,160
2,000,000 7.000%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 2,189,660
</TABLE>
32
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH DAKOTA - 0.1%
$ 1,000,000 South Dakota Health and
Educational Facilities
Authority (McKennan
Hospital), 7.250%, 7/01/15 7/00 at 102 Aaa $ 1,060,450
- -------------------------------------------------------------------------------
TENNESSEE - 0.7%
1,375,000 Memphis-Shelby County
Airport Authority,
5.650%, 9/01/15 9/03 at 102 Aaa 1,309,303
3,000,000 Metropolitan Nashville
Airport Authority,
Airport Improvement,
6.600%, 7/01/15 7/01 at 102 Aaa 3,130,440
1,000,000 Robertson and Sumner
Counties, White House
Utility District,
6.375%, 1/01/22 1/02 at 102 Aaa 1,024,650
- -------------------------------------------------------------------------------
TEXAS - 5.0%
6,080,000 Texas Health Facilities
Development Corporation
(All Saints Episcopal
Hospitals of Fort Worth),
6.250%, 8/15/22 8/03 at 102 Aaa 6,098,301
800,000 Texas Housing Agency,
Single Family Mortgage,
7.875%, 9/01/17 9/96 at 102 Aa 825,080
3,000,000 Bexar County Health
Facilities Development
Corporation (Baptist
Memorial Hospital System
Project), 6.750%, 8/15/19 8/04 at 102 Aaa 3,133,860
5,000,000 Bexar Metropolitan Water
District, 5.000%, 5/01/19 5/04 at 100 Aaa 4,308,850
4,575,000 Harris County Toll Road,
Senior Lien,
6.500%, 8/15/17 (Pre-
refunded to 8/15/02) 8/02 at 102 Aaa 4,992,332
1,000,000 Harris County Hospital
District, 7.400%, 2/15/10 No Opt. Call Aaa 1,150,400
500,000 Houston Hotel Occupancy Tax
and Parking Facilities,
7.000%, 7/01/15 7/01 at 100 Aaa 529,370
4,820,000 Houston Water and Sewer
System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 4,931,294
825,000 Lower Colorado River
Authority, Priority
Refunding, 7.000%, 1/01/11 1/01 at 102 Aaa 883,064
3,205,000 Lower Colorado River
Authority, 6.000%, 1/01/17 1/02 at 100 Aaa 3,206,442
3,250,000 Sabine River Authority,
Pollution Control (Texas
Utilities Electric
Company), 5.550%, 5/01/22 11/03 at 102 Aaa 3,009,858
5,000,000 Tarrant County Health
Facilities Development
Corporation (Fort Worth
Osteopathic Hospital),
6.000%, 5/15/21 No Opt. Call Aaa 4,870,650
- -------------------------------------------------------------------------------
UTAH - 1.1%
335,000 Utah Housing Finance
Agency, Single Family
Mortgage, 8.375%, 7/01/19 1/09 at 100 AA 391,494
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH (CONTINUED)
Provo City Energy System:
$ 2,300,000 5.500%, 11/15/11 5/03 at 102 Aaa $ 2,188,772
500,000 5.750%, 5/15/14 5/03 at 102 Aaa 479,755
1,500,000 West Valley City Municipal
Building Authority,
7.700%, 1/15/10 (Pre-
refunded to 1/15/99) 1/99 at 102 Aaa 1,665,900
3,500,000 White City Water System,
6.600%, 2/01/25 2/05 at 100 Aaa 3,594,570
- -------------------------------------------------------------------------------
VIRGINIA - 0.7%
1,000,000 Fairfax County, Sewer
Revenue,
7.000%, 11/15/16 (Pre-
refunded to 11/15/99) 11/99 at 102 Aaa 1,099,250
2,860,000 Richmond Metropolitan
Authority Expressway,
5.750%, 7/15/22 7/02 at 100 Aaa 2,756,783
1,050,000 Roanoke County Water
System,
6.000%, 7/01/31 (Pre-
refunded to 7/01/01) 7/01 at 100 Aaa 1,091,349
- -------------------------------------------------------------------------------
WASHINGTON - 5.3%
2,750,000 Washington Health Care
Facilities Authority
(Group Health Cooperative
of Puget Sound),
6.250%, 12/01/21 12/00 at 102 Aaa 2,751,320
6,000,000 Washington Health Care
Facilities Authority
(Swedish Hospital Medical
Center of Seattle),
6.300%, 11/15/22 11/02 at 102 Aaa 5,983,620
Washington Public Power
Supply System,
Nuclear Project No. 1:
5,000,000 6.250%, 7/01/17 7/02 at 102 Aaa 5,006,450
6,500,000 5.700%, 7/01/17 7/03 at 102 Aaa 6,049,810
5,000,000 Washington Public Power
Supply System,
Nuclear Project No. 2,
5.400%, 7/01/05 No Opt. Call Aaa 4,925,700
2,500,000 Washington Public Power
Supply System,
Nuclear Project No. 3,
7.250%, 7/01/16 (Pre-
refunded to 7/01/99) 7/99 at 102 Aaa 2,759,275
1,000,000 Marysville Water and Sewer,
7.000%, 12/01/11 (Pre-
refunded to 12/01/03) 12/03 at 100 Aaa 1,111,110
Seattle Metropolitan
Municipality Sewer System:
5,000,000 5.400%, 1/01/14 1/03 at 102 Aaa 4,626,500
3,080,000 5.400%, 1/01/15 1/03 at 102 Aaa 2,843,547
2,000,000 Walla Walla Water and Sewer
System, 6.200%, 8/01/12 8/02 at 102 Aaa 2,031,219
2,000,000 Whatcom County School
District No. 501,
General Obligation,
6.125%, 12/01/13 12/04 at 100 Aaa 1,961,559
- -------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,000,000 West Virginia School
Building Authority,
Capital Improvement,
7.250%, 7/01/15 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,113,369
</TABLE>
34
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WEST VIRGINIA
(CONTINUED)
$ 5,000,000 Mason County Pollution
Control (Appalachian
Power Company),
6.850%, 6/01/22 6/02 at 102 Aaa $ 5,207,799
- ------------------------------------------------------------------------------
WISCONSIN - 1.7%
7,020,000 Wisconsin Health and
Educational Facilities
Authority (Sisters of
the Sorrowful
Mother--Ministry
Corporation),
6.125%, 8/15/22 2/03 at 102 Aaa 6,824,562
1,000,000 Wisconsin Municipal
Insurance Commission,
8.700%, 4/01/07 4/97 at 102 Aaa 1,089,739
1,050,000 Ashland School District
General Obligation,
6.900%, 4/01/10 (Pre-
refunded to 4/01/00) 4/00 at 100 Aaa 1,132,288
2,000,000 Superior Limited
Obligation
(Detroit Edison
Company),
6.900%, 8/01/21 No Opt. Call Aaa 2,234,099
1,000,000 Three Lakes School
District, General
Obligation,
6.750%, 4/01/12 (Pre-
refunded to 4/01/03) 4/03 at 100 Aaa 1,089,199
- ------------------------------------------------------------------------------
WYOMING - 0.3%
2,000,000 University of Wyoming
Facilities,
7.100%, 6/01/10 6/00 at 101 Aaa 2,153,519
- ------------------------------------------------------------------------------
PUERTO RICO - 0.6%
3,750,000 Commonwealth of Puerto
Rico, General
Obligation,
6.600%, 7/01/13 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 Aaa 4,123,349
- ------------------------------------------------------------------------------
$752,003,000 Total Investments -
(cost $726,819,723) -
98.9% 746,237,257
- ------------------------------------------------------------------------------
- -------------------
Other Assets Less
Liabilities - 1.1% 8,540,950
- ------------------------------------------------------------------------------
Net Assets - 100% $754,778,207
</TABLE>
- --------------------------------------------------------------------------------
35
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 237 $742,984,183 99%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 3 3,253,074 1
PORTFOLIO OF
INVESTMENTS:
- ----------------------------------------------------------------------------------
TOTAL 240 $746,237,257 100%
</TABLE>
- --------------------------------------------------------------------------------
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities to ensure the timely payment of principal and interest.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
36
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
STATEMENT OF NET ASSETS FEBRUARY 28, 1995
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $2,704,785,376 $746,237,257
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 2,700,000 --
Cash 669,552 1,167,558
Receivables:
Interest 45,210,467 10,140,262
Shares sold 602,478 157,707
Investments sold -- 40,000
Other assets 30,882 9,656
-------------- ------------
Total assets 2,753,998,755 757,752,440
-------------- ------------
LIABILITIES
Payable for shares reacquired 947,975 303,139
Accrued expenses:
Management fees (note 7) 942,248 272,800
Other 617,944 88,837
Dividends payable 10,312,489 2,309,457
-------------- ------------
Total liabilities 12,820,656 2,974,233
-------------- ------------
Net assets (note 8) $2,741,178,099 $754,778,207
-------------- ------------
Class A Shares (note 1)
Net Assets $ N/A $ 14,096,504
-------------- ------------
Shares outstanding N/A 1,355,512
-------------- ------------
Net asset value and redemption price per share $ N/A $ 10.40
-------------- ------------
Offering price per share (net asset value per
share plus maximum sales charge of 4.50% of
offering price) $ N/A $ 10.89
-------------- ------------
Class C Shares (note 1)
Net Assets $ N/A $ 3,979,241
-------------- ------------
Shares outstanding N/A 386,035
-------------- ------------
Net asset value, offering and redemption price
per share $ N/A $ 10.31
-------------- ------------
Class R Shares (note 1)
Net Assets $2,741,178,099 $736,702,462
-------------- ------------
Shares outstanding 304,572,559 70,992,270
-------------- ------------
Net asset value and redemption price per share $ 9.00 $ 10.38
-------------- ------------
Offering price per share (net asset value per
share plus maximum sales charge of 4.75% of
offering price) $ 9.45 $ N/A
-------------- ------------
</TABLE>
N/A--Muni Bond is not authorized to issue Class A Shares or Class C Shares.
Ins. Muni Bond Class R Shares are sold without a sales charge.
See accompanying notes to financial statements.
37
<PAGE>
STATEMENT OF OPERATIONS
Year Ended February 28, 1995
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $167,929,987 $45,571,804
Taxable market discount -- 4,697
------------ -----------
Total income 167,929,987 45,576,501
------------ -----------
Expenses (note 2):
Management fees (note 7) 11,932,164 3,449,591
12b-1 distribution and service fees (note 1) -- 18,173
Shareholders' servicing agent fees and expenses 2,319,241 654,783
Custodian's fees and expenses 290,635 93,642
Directors' fees and expenses (note 7) 29,527 9,281
Professional fees 103,583 24,210
Shareholders' reports--printing and mailing
expenses 442,979 268,338
Federal and state registration fees 298,970 97,443
Portfolio insurance expense -- 17,052
Other expenses 52,161 24,267
------------ -----------
Total expenses before expense reimbursement 15,469,260 4,656,780
Expense reimbursement from investment adviser
(note 7) -- (10,570)
------------ -----------
Net expenses 15,469,260 4,646,210
------------ -----------
Net investment income 152,460,727 40,930,291
------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 5) 9,508,194 (1,781,054)
Net change in unrealized appreciation or
depreciation of investments (67,140,015) (25,968,067)
------------ -----------
Net gain (loss) from investments (57,631,821) (27,749,121)
------------ -----------
Net increase in net assets from operations $ 94,828,906 $13,181,170
------------ -----------
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
MUNI BOND INS. MUNI BOND
- ---------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
2/28/95 2/28/94 2/28/95 2/28/94
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 152,460,727 $ 140,045,709 $ 40,930,291 $ 34,985,971
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable 9,508,194 33,668,121 (1,781,054) 3,722,189
Net change in unrealized
appreciation or
depreciation of
investments (67,140,015) (57,025,692) (25,968,067) (4,767,784)
-------------- -------------- ------------ ------------
Net increase in net
assets from operations 94,828,906 116,688,138 13,181,170 33,940,376
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A N/A N/A (204,455) --
Class C N/A N/A (45,156) --
Class R (151,297,051) (139,098,668) (41,157,453) (34,323,272)
From accumulated net
realized gains from
investment
transactions:
Class A N/A N/A (6,709) --
Class C N/A N/A (1,121) --
Class R (22,411,997) (26,833,320) (1,157,602) (3,876,453)
-------------- -------------- ------------ ------------
Decrease in net assets
from distributions to
shareholders (173,709,048) (165,931,988) (42,572,496) (38,199,725)
-------------- -------------- ------------ ------------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sales
of shares:
Class A N/A N/A 15,273,227 --
Class C N/A N/A 4,686,336 --
Class R 469,226,165 554,702,232 158,370,453 226,307,056
Net asset value of
shares issued to
shareholders due to
reinvestment of
distributions from net
investment
income and from net
realized gains from
investment
transactions:
Class A N/A N/A 105,479 --
Class C N/A N/A 25,888 --
Class R 141,568,061 138,399,306 28,508,956 26,207,900
-------------- -------------- ------------ ------------
610,794,226 693,101,538 206,970,339 252,514,956
-------------- -------------- ------------ ------------
Cost of shares redeemed:
Class A N/A N/A (1,930,617) --
Class C N/A N/A (893,066) --
Class R (490,742,684) (315,520,307) (165,891,052) (69,573,599)
-------------- -------------- ------------ ------------
(490,742,684) (315,520,307) (168,714,735) (69,573,599)
-------------- -------------- ------------ ------------
Net increase in net
assets derived from
Fund share
transactions 120,051,542 377,581,231 38,255,604 182,941,357
-------------- -------------- ------------ ------------
Net increase in net
assets 41,171,400 328,337,381 8,864,278 178,682,008
Net assets at beginning
of year 2,700,006,699 2,371,669,318 745,913,929 567,231,921
-------------- -------------- ------------ ------------
Net assets at end of
year $2,741,178,099 $2,700,006,699 $754,778,207 $745,913,929
-------------- -------------- ------------ ------------
Balance of undistributed
net investment income
at end
of year $ 2,133,643 $ 969,967 $ 189,790 $ 666,563
-------------- -------------- ------------ ------------
</TABLE>
N/A--Muni Bond is not authorized to issue Class A Shares or Class C Shares.
See accompanying notes to financial statements.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At February 28, 1995, the nationally diversified Funds
covered in this report (the "Funds") are Nuveen Municipal
Bond Fund, Inc. and Nuveen Insured Tax-Free Bond Fund, Inc.
(comprised of Nuveen Insured Municipal Bond Fund). Each Fund
invests primarily in a diversified portfolio of municipal
obligations issued by state and local government authorities.
Municipal Bond issues its shares at a price equal to net
asset value plus varying sales charges. Insured Municipal
Bond issues shares of each of its classes at a price equal to
net asset value of such classes plus the appropriate front-
end sales charge, if any.
The following is a summary of significant accounting
policies followed by each Fund in the preparation of their
financial statements in accordance with generally accepted
accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily
available are valued at the mean between the quoted bid and
asked prices or the yield equivalent. Portfolio securities
for which market quotations are not readily available are
valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary
investments in securities that have variable rate and demand
features qualifying them as short-term securities are traded
and valued at amortized cost.
Securities Securities transactions are recorded on a trade date basis.
Transactions 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 be settled a month or more after the transaction date.
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 their purchase
commitments. At February 28, 1995, there were no such
purchase commitments in either of the Funds.
40
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Interest Income Interest income is determined on the basis of interest
accrued and discount earned, adjusted for amortization of
premiums or discounts on long-term debt securities when
required for federal income tax purposes.
Dividends and Net investment income is declared as a dividend monthly and
Distributions to payment is made or reinvestment is credited to shareholder
Shareholders accounts after month-end. Net realized gains from securities
transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed
available capital loss carryovers.
Distributions to shareholders of net investment income and
net realized gains from investment transactions are recorded
on the ex-dividend date. The amount and timing of such
distributions are determined in accordance with federal
income tax regulations, which may differ from generally
accepted accounting principles. Accordingly, temporary over-
distributions as a result of these differences may result and
will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated
net realized gains from investment transactions, if
applicable.
Federal Income Each Fund is a separate taxpayer for federal income tax
Taxes purposes and intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies by distributing all of its net investment income,
in addition to any significant amounts of net realized gains
from investments, to shareholders. The Funds currently
consider significant net realized gains as amounts in excess
of $.001 per share. Furthermore, each Fund intends to satisfy
conditions which will enable interest from municipal
securities, which is exempt from regular federal income tax,
to retain such tax exempt status when distributed to the
shareholders of the Funds. All income dividends paid during
the fiscal year ended February 28, 1995, have been designated
Exempt Interest Dividends.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Insurance Insured Municipal Bond invests in municipal securities which
are covered by insurance guaranteeing timely payment of
principal and interest thereon or backed by an escrow or
trust account containing sufficient U.S. Government or U.S.
Government agency securities to ensure the timely payment of
principal and interest. Each insured municipal security is
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the
value of the Fund's shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the
municipal securities covered thereby remain outstanding and
the insurer remains in business, regardless of whether the
Fund ultimately disposes of such municipal securities.
Consequently, the market value of the municipal securities
covered by Original Issue Insurance or Secondary Market
Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal
securities are held by the Fund. Accordingly, neither the
prices used in determining the market value of the underlying
municipal securities nor the net asset value of the Fund's
shares include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does,
however, give the Fund the right to obtain permanent
insurance with respect to the municipal security covered by
the Portfolio Insurance policy at the time of its sale.
42
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Flexible Sales Effective September 6, 1994, Insured Municipal Bond commenced
Charge Program offering Class "A" Shares and Class "C" Shares. Class "A"
Shares incur a front-end sales charge and an annual 12b-1
service fee. Class "C" Shares are sold without a sales charge
but incur annual 12b-1 distribution and service fees.
Prior to the offering of Class "A" and Class "C" Shares, the
shares outstanding were renamed Class "R" and are not subject
to any 12b-1 distribution or service fees. Effective with the
offering of the new classes, Class "R" Shares are generally
available only for reinvestment of dividends by current "R"
shareholders and for already established Nuveen Unit
Investment Trust reinvestment accounts.
Municipal Bond is not authorized to issue Class "A" Shares
or Class "C" Shares, therefore, in the Notes to Financial
Statements "N/A" represents not-applicable.
Derivative In October 1994, the Financial Accounting Standards Board
Financial (FASB) issued Statement of Financial Accounting Standards No.
Instruments 119 Disclosure about Derivative Financial Instruments and
Fair Value of Financial Instruments which prescribes
disclosure requirements for 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 28, 1995, other than
occasional purchases of high quality synthetic money market
securities which were held temporarily pending the re-
investment in long-term portfolio securities.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
2. EXPENSE ALLOCATION
Expenses of the Insured Municipal Bond Fund that are not
directly attributable to any class of shares are prorated
among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares
are recorded to the specific class. A breakdown of the class
level expenses, as well as the total fund level expenses, for
the year ended February 28, 1995, are as follows:
<TABLE>
<CAPTION>
INS. MUNI
BOND
- -------------------------------------------------------
<S> <C>
CLASS A
12b-1 service fees $ 9,661
Shareholder servicing agent fees and
expenses 8,467
Shareholder reports-printing and mailing
expenses 6,781
Federal and state registration fees 4,940
----------
Total class level expenses 29,849
Total fund level expenses 19,324
----------
Total expenses before expense
reimbursement 49,173
Less: Expense reimbursement from
investment adviser (10,551)
----------
Net expenses--Class A $ 38,622
----------
CLASS C
12b-1 service fees $ 2,128
12b-1 distribution fees 6,384
Shareholder servicing agent fees and
expenses 597
Shareholder reports-printing and mailing
expenses 438
Federal and state registration fees 1,108
----------
Total class level expenses 10,655
Total fund level expenses 4,261
----------
Total expenses before expense
reimbursement 14,916
Less: Expense reimbursement from
investment adviser (19)
----------
Net expenses--Class C $ 14,897
----------
CLASS R
Shareholder servicing agent fees and
expenses $ 645,719
Shareholder reports-printing and mailing
expenses 261,119
Federal and state registration fees 91,395
----------
Total class level expenses 998,233
Total fund level expenses 3,594,458
----------
Total expenses before expense
reimbursement 4,592,691
Less: Expense reimbursement from
investment adviser --
----------
Net expenses--Class R $4,592,691
----------
Net expenses--Fund $4,646,210
----------
</TABLE>
44
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
3. FUND SHARES
Transactions in shares were as follows:
<TABLE>
<CAPTION>
MUNI BOND INS. MUNI BOND
- ----------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A N/A N/A 1,538,119 --
Class C N/A N/A 474,253 --
Class R 52,970,376 58,943,195 15,709,700 20,708,650
Shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized
gains from investment
transactions:
Class A N/A N/A 10,686 --
Class C N/A N/A 2,644 --
Class R 15,973,465 14,663,493 2,822,384 2,386,849
----------- ----------- ----------- ----------
68,943,841 73,606,688 20,557,786 23,095,499
----------- ----------- ----------- ----------
Shares redeemed:
Class A N/A N/A (193,293) --
Class C N/A N/A (90,862) --
Class R (55,355,782) (33,503,455) (16,561,539) (6,346,641)
----------- ----------- ----------- ----------
(55,355,782) (33,503,455) (16,845,694) (6,346,641)
----------- ----------- ----------- ----------
Net increase 13,588,059 40,103,233 3,712,092 16,748,858
----------- ----------- ----------- ----------
</TABLE>
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. DISTRIBUTIONS TO SHAREHOLDERS
On March 9, 1995, the Funds declared dividend distributions
from their ordinary income which were paid on April 3, 1995,
to shareholders of record on March 9, 1995 as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ---------------------------------------
<S> <C> <C>
Dividend per share:
Class A $ N/A $.0450
Class C N/A .0385
Class R .0430 .0480
------ ------
</TABLE>
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in
municipal securities and temporary municipal investments for
the year ended February 28, 1995, were as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ----------------------------------------------------------------
<S> <C> <C>
PURCHASES
Investments in municipal securities $597,214,116 $211,453,612
Temporary municipal investments 410,185,000 113,800,000
SALES
Investments in municipal securities 448,105,688 176,027,201
Temporary municipal investments 445,685,000 120,400,000
------------ ------------
</TABLE>
At February 28, 1995, the cost of investments for federal
income tax purposes was the same as the cost for financial
reporting purposes for each Fund.
At February 28, 1995, Insured Muni Bond had a capital loss
carryforward of $1,780,735 available for federal income tax
purposes to be applied against future security gains, if any.
If not applied, the carryover will expire in the year 2003.
46
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at February 28, 1995, were as
follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------
<S> <C> <C>
Gross Unrealized:
Appreciation $118,858,244 $29,302,832
Depreciation (36,137,239) (9,885,298)
------------ -----------
Net unrealized appreciation (depreciation) $ 82,721,005 $19,417,534
------------ -----------
</TABLE>
7. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreement with Nuveen
Advisory Corp. (the "Adviser"), a wholly owned subsidiary of
The John Nuveen Company, each Fund pays to the Adviser an
annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset
value of each Fund:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- ----------------------------------------------------
<S> <C>
For the first $125,000,000 .5 of 1%
For the next $125,000,000 .4875 of 1
For the next $250,000,000 .475 of 1
For the next $500,000,000 .4625 of 1
For the next $1,000,000,000 .45 of 1
For net assets over $2,000,000,000 .425 of 1
</TABLE>
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The management fee is reduced by, or the Adviser assumes
certain expenses of each Fund, in an amount necessary to
prevent the total expenses of each Fund (including the
management fee, but excluding interest, taxes, fees incurred
in acquiring and disposing of portfolio securities, 12b-1
Service and Distribution fees, if applicable, and to the
extent permitted, extraordinary expenses) in any fiscal year
from exceeding .75 of 1% of the average daily net asset value
of the Funds.
The management fee referred to above compensates the Adviser
for overall investment advisory and administrative services,
and general office facilities. The Funds pay no compensation
directly to their directors who are affiliated with the
Adviser or to their officers, all of whom receive
remuneration for their services to the Funds from the
Adviser.
8. COMPOSITION OF NET ASSETS
At February 28, 1995, the Funds had common stock authorized
of $.10 par value per share for Municipal Bond and $.01 par
value per share for Insured Municipal Bond. The composition
of net assets as well as the number of authorized shares were
as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
Capital paid-in $2,654,349,505 $736,951,618
Balance of undistributed net investment income 2,133,643 189,790
Undistributed net realized gain (loss) from
investment transactions, net of taxes, if
applicable 1,973,946 (1,780,735)
Net unrealized appreciation (depreciation) of
investments 82,721,005 19,417,534
-------------- ------------
Net assets $2,741,178,099 $754,778,207
-------------- ------------
Authorized Shares:
Class A N/A 340,000,000
Class C N/A 460,000,000
Class R 750,000,000 200,000,000
-------------- ------------
</TABLE>
48
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At February
28, 1995, the revenue sources by municipal purpose for these
investments, expressed as a percent of total investments,
were as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- -------------------------------------------
<S> <C> <C>
Revenue Bonds:
Health Care Facilities 12% 21%
Electric Utilities 19 5
Housing Facilities 15 1
Water/Sewer Facilities 7 14
Educational Facilities 1 7
Transportation 6 5
Pollution Control 4 5
Lease Rental Facilities 2 5
Other 9 8
General Obligation Bonds 6 15
Escrowed Bonds 19 14
- -------------------------------------------
100% 100%
</TABLE>
Certain long-term and intermediate-term investments owned by
the Funds are covered by insurance issued by several private
insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, either of
which ensure the timely payment of principal and interest in
the event of default (29% for Municipal Bond, 100% for
Insured Municipal Bond) Such insurance, however, does not
guarantee the market value of the municipal securities or the
value of the Funds' shares.
For additional information regarding each investment
security, refer to the Portfolio of Investments of each Fund.
49
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
---------------------------------------------------------------------
Net realized
and
Net asset unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments** income capital gains
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MUNI BOND
- ----------------------------------------------------------------------------------------------
Year ended
2/28/95 $9.280 $.515 $(.209) $(.511) $(.075)
2/28/94 9.450 .519 (.075) (.516) (.098)
2/28/93 9.080 .555 .414 (.544) (.055)
5 Months ended
2/29/92 9.040 .239 .080 (.239) (.040)
Year ended
9/30/91 8.650 .579 .438 (.589) (.038)
9/30/90 8.730 .596 (.080) (.596) --
9/30/89 8.520 .597 .239 (.597) (.029)
9/30/88 8.020 .596 .536 (.596) (.036)
9/30/87 8.780 .598 (.614) (.598) (.146)
9/30/86 7.830 .595 1.162 (.595) (.212)
9/30/85 7.180 .586 .650 (.586) --
- ----------------------------------------------------------------------------------------------
INS. MUNI BOND
- ----------------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 10.310 .264+ .115 (.273) (.016)
Class C
9/8/94 to 2/28/95 10.290 .227+ .075 (.266) (.016)
Class R
Year ended
2/28/95 10.810 .573 (.407) (.580) (.016)
2/28/94 10.850 .574 .012 (.565) (.061)
2/28/93 10.030 .591 .880 (.589) (.062)
2/29/92 9.690 .612 .425 (.617) (.080)
2/28/91 9.520 .617 .198 (.611) (.034)
2/28/90 9.350 .627 .262 (.630) (.089)
2/29/89 9.300 .629 .050 (.629) --
2/29/88 9.790 .637+ (.490) (.637) --
12/10/86 to 2/28/87 9.600 .127+ .190 (.127) --
- ----------------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Net of taxes, if applicable. See Note 1 of the Notes to Financial
Statements.
+ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser. See note 7 of Notes to Financial Statements.
++ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in net
asset value per share.
50
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
------------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value++ (in thousands) net assets net assets turnover rate
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
$9.000 3.60% $2,741,178 .59% 5.79% 17%
9.280 4.79 2,700,007 .62 5.49 15
9.450 11.04 2,371,669 .61 5.95 14
9.080 3.56 1,835,708 .62* 6.24* 6
9.040 12.15 1,661,420 .60 6.48 10
8.650 6.04 1,323,623 .62 6.78 8
8.730 10.07 1,119,833 .64 6.85 12
8.520 14.50 945,361 .65 7.11 8
8.020 (.39) 764,092 .68 6.85 16
8.780 23.02 668,416 .71 6.95 39
7.830 17.73 459,627 .73 7.68 28
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
10.400 3.84 14,097 1.00*+ 5.55*+ 25
10.310 3.09 3,979 1.75*+ 4.83*+ 25
10.380 1.85 736,702 .64 5.67 25
10.810 5.47 745,914 .65 5.21 11
10.850 15.24 567,232 .72 5.68 20
10.030 11.03 306,853 .73 6.12 45
9.690 8.94 178,931 .85 6.45 53
9.520 9.73 111,806 .83 6.49 78
9.350 7.63 66,049 .87 6.83 106
9.300 2.00 41,330 .60+ 6.93+ 88
9.790 3.31 13,160 -- 4.00*+ --
- ----------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Nuveen Municipal Bond Fund, Inc.
Nuveen Insured Tax-Free Bond Fund, Inc.:
We have audited the accompanying statements of net assets of
NUVEEN MUNICIPAL BOND FUND, INC. (a Maryland corporation) and
NUVEEN INSURED TAX-FREE BOND FUND, INC. (comprised of Nuveen
Insured Municipal Bond Fund) (a Minnesota corporation),
including the portfolios of investments, as of February 28,
1995, and the related statements of operations for the year
then ended, the statements of changes in net assets for each
of the two years in the period 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 generally
accepted auditing standards. 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 28, 1995, 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 each of the respective funds
constituting Nuveen Municipal Bond Fund, Inc. and Nuveen
Insured Tax-Free Bond Fund, Inc. as of February 28, 1995, the
results of their operations for the year then ended, the
changes in their net assets for each of the two years in the
period then ended, and the financial highlights for the
periods indicated thereon in conformity with generally
accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois,
April 3, 1995
52
<PAGE>
[PHOTO OF BOOK APPEARS HERE]
At John Nuveen & Co. Incorporated, where our tax-free municipal bonds have
helped people live their dreams for nearly 100 years, we still believe our
strongest bond is human.(TM)
[LOGO]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
The
human bond
For almost a century, John Nuveen & Company has concentrated its resources and
expertise on one area: municipal bonds. We are the oldest and largest investment
banking firm specializing exclusively in municipal securities, and we strive to
be the best.
We maintain a sharp focus on the needs of prudent investors and their
families, offer investments of quality, and then work to make them better by
seeking out opportunity. We hold to a dedicated belief in the importance of
research. And we sustain a commitment to sound financial management through
value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we hope to provide our shareholders
with the attractive level of income they need to achieve their personal goals
and aspirations.
These are the things that matter most, and it's why we say that, at Nuveen,
our strongest bond is human.
