<PAGE>
[Nuveen logo appears here]
Nuveen Tax-Free Mutual Funds
Dependable tax-free
income for generations
MUNICIPAL BOND
INSURED MUNICIPAL BOND
SEMIANNUAL REPORT/AUGUST 31, 1995
[Photo of couple appears here]
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
10 Shareholder Meeting Report
11 Portfolio of investments
36 Statement of net assets
37 Statement of operations
38 Statement of changes in net assets
39 Notes to financial statements
50 Financial highlights
<PAGE>
Dear
shareholder
[Photo of Richard J. Franke appears here]
"Over time, municipal bonds
have proven to
be a valuable
and dependable component of
successful investment programs."
Since the beginning of 1995, we have enjoyed a welcome rebound in the bond
markets, as we put 1994-a dismal period in bond market history-behind us. This
year serves as a reminder that weathering the ups and downs of the market is a
normal part of the investment process. It helps to put things in perspective if
we remember one of the basic principles of investing: A financial plan that
focuses on your long-term goals minimizes the impact of any short-term market
volatility.
Municipal bond funds continue to be one of the best ways to invest for the
long term, offering diversification across market sectors and states, relative
stability of principal, and steady income. Through-out this period, we have kept
our sights focused on meeting these objectives, providing you with a source of
stable current income, credit quality, and enhanced share price relative to the
market as a whole.
As of August 31, 1995, the current yield on the net asset value of Class R
shares was 5.02% for the Municipal Bond Fund and 5.34% for the Insured Municipal
Bond Fund. To match these yields, an investor in the 36% federal income tax
bracket would have had to earn at least 7.84% on taxable alternatives, which
would be difficult to achieve using securities of comparable credit quality.
3
<PAGE>
In addition, both of the funds covered in this report posted gains in net
asset value over August 31, 1994, figures, reflecting growth of fund principal.
The 12-month total returns for these funds, incorporating share price gains as
well as reinvested dividend income, were 8.16% for the Municipal Bond Fund and
8.76% for the Insured Municipal Bond Fund. That is equivalent to taxable total
returns of 11.49% and 12.01%, respectively.
These performance results remind us of the important role that municipal
bonds--and the tax-free income they provide--can play as part of an investment
strategy focused on diversification and long-term performance. Over time,
municipal bonds have proven to be a valuable and dependable component of
successful investment programs.
The value and dependability of your municipal bond investments are enhanced by
the fact that you have chosen tax-free mutual funds managed by Nuveen. We offer
a combination of professional management, award-winning research, and
shareholder service that distinguishes Nuveen as a fund manager.
We use a disciplined approach to security selection and portfolio construction
designed to deliver above-market performance by emphasizing securities that are
underpriced or undervalued by the market. This approach is supported by the
strength of Nuveen Research, which provides the insights and experience to
assist portfolio managers in identifying and selecting bonds with strong credit
quality. Our research professionals continually monitor our holdings.
Nuveen also prides itself on its superior service to shareholders. Through
annual and semiannual reports, regular statements, and our toll-free information
lines, our communication programs help us stay in touch with your needs and
concerns. We also provide support to financial advisers across the nation by
supplying them with the information they need to answer your questions and
ensure that products are selected to meet your needs.
As you review the following pages detailing the performance of your tax-free
mutual fund, I hope you come away with the feeling that these results, coupled
with Nuveen's continued pledge of superior service, add up to a rewarding
investing experience. We look forward to serving your tax-free investment needs
in the future.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
October 16, 1995
4
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
our approach to fund management and the outlook for Nuveen's Tax-Free Mutual
Funds.
What does
Nuveen mean by
"value investing"?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by emphasizing securities that are underpriced or undervalued by the
market. Our value investing approach avoids predictions about the direction of
the markets or the economy in general, concentrating instead on identifying
individual bonds with current yields, prices, credit quality, and future
prospects that are exceptionally attractive in relation to other bonds in the
market.
While the concept sounds simple, successful value investing must be based on
sound research that supports the selection of quality bonds. It also requires an
ability to recognize value by gaining insights into individual issuers as well
as specific bonds-information that often goes beyond that which is readily
5
<PAGE>
Tom Spalding, head
of Nuveen's portfolio
management team, answers investors'
questions on developments in the
municipal market.
[Photo of Tom Spalding]
available to the market in general. Having the largest research staff in the
investment management industry dedicated exclusively to gathering this type of
information on municipal bonds is reflected in the long-term results of our
value investing approach.
We believe that value investing gives us an important edge in the management of
municipal bond funds, an edge that translates to helping you meet your goals and
expectations.
How does the work
done by Nuveen's
Research Department
help support the
value of my funds?
At Nuveen, we believe that attention to detail combined with years of experience
is the foundation for sound research. And sound research is one of the core
elements of our disciplined approach to providing you with dependable income,
credit quality, and diversification--key elements of a successful fixed income
investment program.
Our award-winning team of more than 30 research professionals provides
invaluable support to our portfolio managers, assisting them in careful analysis
of bond issues considered for purchase-even those rated AAA by the rating
agencies.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets. This daily
6
<PAGE>
surveillance of events and trends in the credit markets assists us in monitoring
the underlying value of our holdings.
This combination of in depth research and review helps your tax-free municipal
investments to meet your expectations for dependable income and credit safety.
What impact have
Federal Reserve
Board actions had
on bond prices?
Between February 1994 and February 1995, the Federal Reserve Board moved an
unprecedented seven times to raise short-term interest rates. Board chairman
Greenspan justified the hikes in short-term rates on the basis that the
increases would cause the economy to slow enough in the future to relieve any
inflationary pressures and avoid a significant increase in the rate of
inflation. These increases in short-term rates reduced demand for long-term
bonds, which had the complementary effects of lowering bond prices and raising
bond yields.
On July 6, 1995, after much anticipation, the Federal Reserve Board cautiously
declared victory for this policy, making its first move to ease rates in nearly
three years. Long-term bond yields had already fallen substantially, in
anticipation of the Fed's move. In subsequent meetings, the Fed has held off on
any further action, sending the message that it believes the economy is on the
right track.
7
<PAGE>
What is the
current outlook for
municipal bonds?
With the rebound in the bond market at the beginning of 1995 and some consensus
that inflation is under control, economic indicators are favorable for municipal
bonds. Technical issues also point to a more favorable climate.
One technical issue that affects bond prices is the supply and demand
situation. While supplies of municipal bonds had been lagging over the past few
quarters, new issue supply rose sharply in the second quarter of 1995. Demand
has been somewhat subdued by extraordinary market volatility over the past 18
months and by the mounting discussion of the ramifications of proposed tax law
reforms.
We believe that municipal bonds continue to be a fundamentally sound and
attractive investment option, offering one of the few remaining tax-advantaged
alternatives. Once investors are more confident that the interest rate
environment has stabilized, we expect to see the demand for municipal
investments resume its long-term upward trend.
8
<PAGE>
NUVEEN MUNICIPAL BOND
FUND
Muni Bond
In keeping with the Fund's objective of providing steady tax-free income,
shareholders enjoyed 12 months of steady dividends. Shareholders also received
two capital gains distributions during this period.
[GRAPH APPEARS HERE]
12 MONTH DIVIDEND HISTORY--R SHARES
09/94 = .0430
10/94 = .0922
11/94 = .0430
12/94 = .0689
01/95 = .0430
02/95 = .0430
03/95 = .0430
04/95 = .0430
05/95 = .0430
06/95 = .0430
07/95 = .0430
08/95 = .0430
[_] Capital Gains
FUND HIGHLIGHTS 8/31/95
Current SEC yield on R Shares* 5.02%
Taxable-equivalent yield on R Shares** 7.84%
12-mo. total return on R Shares* 8.16%
Taxable-equivalent total return on R Shares** 11.49%
Combined state and federal tax rate 36.0%
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnote on page 10.
NUVEEN INSURED MUNICIPAL
BOND FUND
Insured Muni Bond
The Fund adjusted its monthly tax-free dividend twice during the period as
older, higher coupon bonds were called away and replaced with today's lower
yielding bonds. In addition, shareholders received a capital gains distribution
in October.
[GRAPH APPEARS HERE]
12 MONTH DIVIDEND HISTORY--R SHARES
09/94 = .0485
10/94 = .0646
11/94 = .0485
12/94 = .0485
01/95 = .0485
02/95 = .0480
03/95 = .0480
04/95 = .0480
05/95 = .0480
06/95 = .0480
07/95 = .0480
08/95 = .0475
[_] Capital Gains
FUND HIGHLIGHTS 8/31/95
Current SEC yield on R Shares* 5.34%
Taxable-equivalent yield on R Shares** 8.34%
12-mo. total return on R Shares* 8.76%
Taxable-equivalent total return on R Shares** 12.01%
Federal tax rate 36.0%
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnote on page 10.
9
<PAGE>
* All shares issued prior to June 13, 1995 for Municipal Bond Fund, and
September 6, 1994 for Insured Municipal Bond Fund, have been designated as Class
R Shares, which are currently available only for dividend reinvestment and
certain other restricted situations. Please see Financial Highlights beginning
on page 50 for additional data on Class A and C Shares.
** An investor subject to the indicated income tax rate would have to receive
this return from a fully taxable investment to equal the stated yield and total
return on an after-tax basis.
Shareholder Meeting Report
On May 26, 1995, Nuveen Municipal Bond Fund, Inc. held a Special Meeting of
Shareholders. At the meeting, shareholders were asked to consider and approve a
proposal to reorganize the Fund as a Massachusetts business trust, permitting
the Fund to issue multiple classes of shares.
In voting for the reorganization, shareholders also voted to elect current
Fund directors as trustees of the Trust, to approve the investment management
agreement with the Fund as the investment management agreement with the Trust,
and to select the auditors for the Fund as the auditors for the Trust. The
directors elected at the meeting include: Richard J. Franke, Timothy R.
Schwertfeger, Lawrence H. Brown, Anne E. Impellizzeri, Margaret K. Rosenheim and
Peter R. Sawers.
Approval of the reorganization of the Fund as a Massachusetts business trust
was reached as follows:
<TABLE>
<CAPTION>
Shares
<S> <C>
For 227,741,892.541
Against 11,255,115.590
Abstain 9,485,973.172
---------------
Total 248,482,981.303
</TABLE>
10
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ALASKA - 1.3%
Alaska Housing Finance
Corporation, Insured
Mortgage Program:
$ 4,265,000 6.375%, 12/01/07 12/95 at 101 Aa $ 4,317,630
3,290,000 7.650%, 12/01/10 12/00 at 102 Aa 3,499,540
10,885,000 7.800%, 12/01/30 12/00 at 102 Aa 11,466,368
Alaska State Housing
Finance Corporation:
3,675,000 6.375%, 12/01/12 12/02 at 102 Aa 3,902,960
12,250,000 6.600%, 12/01/23 12/02 at 102 Aa 13,210,645
- ------------------------------------------------------------------------------------
ARIZONA - 2.1%
Salt River Project,
Agricultural
Improvement
and Power District:
5,000,000 4.900%, 1/01/08 1/04 at 102 Aa 4,776,600
9,145,000 5.000%, 1/01/10 1/96 at 100 Aa 8,642,848
26,200,000 4.750%, 1/01/17 1/04 at 100 Aa 22,285,982
20,350,000 5.500%, 1/01/28 1/02 at 100 Aa 18,767,381
4,570,000 Scottsdale Industrial
Development Authority
(Scottsdale Memorial
Hospital), 8.500%,
9/01/07 9/97 at 102 Aaa 5,045,006
- ------------------------------------------------------------------------------------
ARKANSAS - 0.4%
11,210,000 Jefferson County
Hospital, 6.000%,
7/01/06 7/03 at 102 A 11,595,848
- ------------------------------------------------------------------------------------
CALIFORNIA - 13.4%
California Department of
Water Resources
(Central Valley
Project):
15,515,000 5.700%, 12/01/16 6/03 at 101 1/2 Aa 14,886,487
9,500,000 5.750%, 12/01/19 6/03 at 101 1/2 Aa 9,092,355
12,250,000 5.500%, 12/01/23 12/03 at 101 1/2 Aa 11,326,228
20,000,000 4.875%, 12/01/27 12/03 at 101 Aa 16,320,400
13,025,000 California Health
Facilities Financing
Authority (Catholic
Healthcare West),
5.000%, 7/01/14 7/04 at 102 Aaa 11,566,070
27,600,000 California Health
Facilities Financing
Authority (Daughters of
Charity), 9.250%,
3/01/15 3/96 at 102 Aa 28,886,712
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 12,833,880
34,795,000 California Statewide
Communities Development
Authority (St. Joseph
Health System),
5.500%, 7/01/23 7/03 at 102 Aa 31,411,186
9,000,000 East Bay Municipal
Utility District,
5.000%, 6/01/21 6/03 at 102 Aaa 7,794,720
Foothill/Eastern
Transportation Corridor
Agency:
45,000,000 0.000%, 1/01/23 No Opt. Call BBB- 6,665,850
15,000,000 6.000%, 1/01/34 1/05 at 102 BBB- 13,689,900
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Los Angeles Department
of Water and Power:
$ 17,575,000 6.500%, 4/15/32 4/02 at 102 Aa $ 17,968,504
13,100,000 6.125%, 1/15/33 1/03 at 102 Aa 13,098,821
Los Angeles Wastewater
System:
7,000,000 5.700%, 6/01/20 6/03 at 102 Aaa 6,704,180
21,000,000 5.700%, 6/01/23 6/03 at 102 Aaa 20,069,490
Los Angeles County
Metropolitan Transit
Authority: 5.500%,
10,000,000 7/01/13 7/03 at 102 AA- 9,352,300
14,935,000 4.750%, 7/01/18 7/03 at 102 Aaa 12,498,952
8,000,000 5.250%, 7/01/23 7/03 at 102 Aaa 7,162,480
Los Angeles County
Sanitation District
Financing Authority:
5,500,000 5.375%, 10/01/13 10/03 at 102 Aa 5,146,460
19,500,000 5.000%, 10/01/23 10/03 at 100 Aa 16,679,325
25,000,000 Los Angeles County
Transportation
Commission,
6.750%, 7/01/19 (Pre-
refunded to 7/01/02) 7/02 at 102 Aaa 28,596,500
Southern California
Metropolitan Water
District:
4,670,000 5.500%, 1/01/10 1/96 at 101 AA+ 4,610,411
5,000,000 5.500%, 7/01/19 7/02 at 102 Aa 4,666,700
12,750,000 Modesto Irrigation
District (Geysers
Geothermal Power
Project) Certificates
of Participation,
7.250%, 10/01/15 10/96 at 102 A1 13,338,158
22,575,000 Northern California
Power Agency,
7.150%, 7/01/24 7/98 at 102 A 24,123,194
12,600,000 Sacramento Sanitation
District Finance
Authority,
4.750%, 12/01/23 12/03 at 102 Aa 10,284,750
2,179,452 San Diego County
(Contel) Certificates
of Participation,
7.500%, 2/08/96 No Opt. Call N/R 2,211,010
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 8,092,100
8,050,000 University of
California,
6.875%, 9/01/16 (Pre-
refunded to 9/01/02) 9/02 at 102 A- 9,315,621
- --------------------------------------------------------------------------------
COLORADO - 1.3%
31,750,000 Colorado Housing Finance
Authority,
7.250%, 11/01/31 11/01 at 102 Aa 33,359,408
4,250,000 City and County of
Denver Airport System,
7.250%, 11/15/25 11/02 at 102 Baa 4,543,505
- --------------------------------------------------------------------------------
CONNECTICUT - 0.5%
9,280,000 Connecticut Housing
Finance Authority,
7.550%, 11/15/08 11/00 at 102 Aa 9,857,309
2,970,000 Connecticut Resources
Recovery Authority,
8.625%, 1/01/04 1/96 at 102 A 3,075,287
</TABLE>
12
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 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 1/96 at 103 N/R $ 7,899,705
- ------------------------------------------------------------------------------------
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 5,020,425
31,000,000 Hillsborough County
Industrial Development
Authority, Pollution
Control (Tampa
Electric), 8.000%,
5/01/22 5/02 at 103 Aa2 36,844,120
9,500,000 Jacksonville Electric
Authority, 7.375%,
10/01/13 (Pre-refunded
to 10/01/95) 10/95 at 101 1/2 Aaa 9,671,475
8,150,000 Jacksonville Electric
Authority (St. John's
River Power Park
System), 6.500%,
10/01/20 10/95 at 100 Aa1 8,169,071
26,950,000 North Broward Hospital
District, 8.000%,
1/01/14 (Pre-refunded
to 1/01/96) 1/96 at 103 AAA 28,140,651
Orlando Utilities
Commission:
22,700,000 8.500%, 10/01/09 (Pre-
refunded to 10/01/95) 10/95 at 102 Aaa 23,243,665
11,500,000 5.000%, 10/01/23 10/99 at 100 Aa 9,989,015
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 8,774,281
1,520,000 Sarasota Elderly Housing
Corporation, 7.500%,
7/01/95 1/96 at 104 A 1,584,843
- ------------------------------------------------------------------------------------
GEORGIA - 0.1%
2,975,000 Appling County
Development Authority,
Pollution Control
(Georgia Power
Company),
10.600%, 10/01/15 10/95 at 102 A2 3,051,815
- ------------------------------------------------------------------------------------
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 9,380,400
- ------------------------------------------------------------------------------------
ILLINOIS - 15.4%
8,500,000 Illinois Development
Finance Authority
(Columbus-Cuneo-Cabrini
Medical Center),
8.500%, 2/01/15 2/00 at 102 BBB+ 9,162,320
8,500,000 Illinois Educational
Facilities Authority
(The University of
Chicago), 5.600%,
7/01/24 7/03 at 102 Aaa 7,807,420
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
Illinois General
Obligation:
$ 15,100,000 6.200%, 10/01/04 10/02 at 102 AA- $ 16,391,201
14,750,000 5.875%, 6/01/10 6/02 at 102 AA- 14,954,730
5,000,000 5.875%, 6/01/11 6/02 at 102 AA- 5,007,900
10,000,000 5.700%, 4/01/18 4/03 at 102 AA- 9,595,200
5,435,000 Illinois Health
Facilities Authority
(Rush Presbyterian),
6.900%, 10/01/02 10/95 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 13,027,835
10,000,000 Illinois Health
Facilities Authority
(Highland Park
Hospital), 6.200%,
10/01/22 10/02 at 102 Aaa 10,096,000
6,115,000 Illinois Health
Facilities Authority
(Illinois Masonic
Medical Center),
5.500%, 10/01/19 10/03 at 102 A 5,341,942
33,620,000 Illinois Health
Facilities Authority
(Rush-Presbyterian-St.
Luke's Medical Center),
5.500%, 11/15/25 11/03 at 102 Aaa 31,065,216
10,425,000 Illinois Independent
Higher Education Loan
Authority (Northwestern
University),
8.000%, 12/01/07 12/96 at 102 Aa 11,120,556
Illinois Sales Tax:
21,670,000 6.000%, 6/15/18 6/01 at 100 AAA 21,455,250
14,200,000 5.250%, 6/15/18 6/03 at 102 AAA 12,819,902
Illinois Toll Highway
Authority:
20,000,000 6.450%, 1/01/13 1/03 at 102 A1 20,333,800
8,655,000 6.200%, 1/01/16 1/03 at 102 Aaa 8,739,473
Chicago General
Obligation:
5,800,000 5.250%, 1/01/18 1/04 at 102 Aaa 5,261,470
15,770,000 5.625%, 1/01/23 1/03 at 102 Aaa 14,958,476
22,380,000 Chicago Metropolitan
Housing Development
Corporation, 6.900%,
7/01/22 7/02 at 102 AA 23,199,779
4,465,000 Chicago Motor Fuel Tax,
5.000%, 1/01/16 1/03 at 101 Aaa 3,963,313
Chicago O'Hare
International Airport:
31,400,000 5.000%, 1/01/16 1/04 at 102 A1 27,469,976
16,590,000 5.000%, 1/01/18 1/04 at 102 Aaa 14,543,458
15,905,000 Cook County General
Obligation,
5.000%, 11/15/23 11/03 at 100 Aaa 13,733,649
DuPage Water Commission,
General Obligation:
39,040,000 7.875%, 3/01/11 (Pre-
refunded to 3/01/96) 3/96 at 102 Aaa 40,596,525
16,800,000 5.750%, 3/01/11 3/02 at 100 Aaa 16,782,864
9,500,000 5.250%, 5/01/14 5/03 at 102 Aa 8,785,790
2,000,000 Hazel Crest (South
Suburban Hospital),
9.125%, 7/01/17 (Pre-
refunded to 7/01/97) 7/97 at 102 AAA 2,219,100
</TABLE>
14
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 55,980,000 Metropolitan Pier &
Exposition Authority
(McCormick Place
Expansion Project),
6.500%, 6/15/27 6/03 at 102 A+ $ 56,659,597
Zion Elderly Housing
Corporation:
240,000 7.250%, 3/01/98 3/96 at 102 A 246,043
1,705,000 7.750%, 3/01/10 3/96 at 102 A 1,751,223
- --------------------------------------------------------------------------------
INDIANA - 1.4%
10,500,000 Indiana Health
Facilities Financing
Authority (Methodist
Hospital), 5.750%,
9/01/11 9/02 at 102 Aaa 10,338,300
12,550,000 Indiana Office Building
Commission,
8.750%, 7/01/12 (Pre-
refunded to 7/01/97) 7/97 at 102 Aaa 13,844,784
2,500,000 Indianapolis Local
Public Improvement,
Bond Bank, 6.750%,
2/01/20 2/03 at 102 A+ 2,633,225
3,135,000 Indianapolis Resource
Recovery (Ogden
Martin),
7.900%, 12/01/08 12/96 at 103 A 3,336,831
6,660,000 Evansville Hospital
Authority
(Daughters of Charity),
10.125%, 11/01/15 11/95 at 102 Aa 6,866,793
2,500,000 Southwind Housing, Inc.,
7.125%, 11/15/21 No Opt. Call AA 3,036,175
- --------------------------------------------------------------------------------
IOWA - 0.3%
4,035,000 Iowa Housing Finance
Authority,
5.875%, 8/01/08 2/96 at 101 Aa1 4,088,020
3,815,000 Davenport (Mercy
Hospital), 6.625%,
7/01/14 7/02 at 102 Aaa 4,013,609
- --------------------------------------------------------------------------------
KENTUCKY - 3.1%
Kentucky Housing
Corporation:
17,600,000 5.300%, 7/01/10 1/04 at 102 Aaa 16,882,976
10,100,000 5.400%, 7/01/14 1/04 at 102 Aaa 9,453,196
3,925,000 7.250%, 1/01/17 7/01 at 102 Aaa 4,167,212
Kentucky Turnpike
Authority:
9,860,000 8.000%, 7/01/03 7/97 at 102 A+ 10,712,791
8,980,000 5.000%, 7/01/08 7/97 at 100 A+ 8,577,786
34,500,000 Carroll County Pollution
Control
(Kentucky Utilities
Company),
7.450%, 9/15/16 9/02 at 102 Aa2 38,680,365
- --------------------------------------------------------------------------------
MAINE - 0.3%
10,000,000 Maine Housing Authority,
5.700%, 11/15/26 2/04 at 102 AA- 9,273,600
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS - 3.6%
$ 15,000,000 Massachusetts Bay
Transportation
Authority,
Certificates of
Participation, 7.650%,
8/01/15 8/00 at 102 Aaa $ 17,332,350
19,670,000 Massachusetts General
Obligation,
4.700%, 8/01/02 No Opt. Call A1 19,646,199
12,245,000 Massachusetts Housing
Finance Agency (GNMA),
9.125%, 12/01/20 12/95 at 102 Aaa 12,659,493
Massachusetts Water
Resources Authority:
9,765,000 5.250%, 3/01/13 3/03 at 102 A 9,017,880
6,500,000 7.500%, 4/01/16 (Pre-
refunded to 4/01/00) 4/00 at 102 Aaa 7,416,760
9,500,000 6.000%, 4/01/20 4/00 at 100 A 9,403,005
24,650,000 5.250%, 12/01/20 12/04 at 102 A 22,024,036
5,795,000 5.000%, 3/01/22 3/03 at 100 A 4,996,507
- --------------------------------------------------------------------------------
MICHIGAN - 6.0%
3,000,000 Michigan Hospital
Finance Authority
(Genesys Health
System), 7.500%,
10/01/27 10/05 at 100 Baa 3,063,450
4,060,000 Michigan Housing
Development Authority,
6.750%, 7/01/05 1/96 at 100 Aa1 4,080,625
10,000,000 5.700%, 4/01/12 4/04 at 102 Aaa 9,748,400
10,000,000 Michigan Housing
Development Authority,
Rental Housing,
6.600%, 4/01/12 10/02 at 102 A+ 10,301,900
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 4,259,880
1,990,000 Michigan State Hospital
Finance Authority
(St. John Hospital):
9.125%, 12/01/02 (Pre-
refunded to 12/01/95) 12/95 at 102 A1 2,055,909
6,855,000 9.200%, 12/01/10 (Pre-
refunded to 12/01/95) 12/95 at 102 N/R 7,083,272
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 42,541,235
Michigan State Hospital
Finance Authority
(Detroit Medical
Center):
19,585,000 5.750%, 8/15/13 8/04 at 102 A 18,415,776
49,000,000 5.500%, 8/15/23 8/04 at 102 A 42,947,520
5,000,000 Detroit Sewage Disposal
System,
8.250%, 7/01/05 (Pre-
refunded to 7/01/97) 7/97 at 102 A 5,464,600
16,805,000 St. Joseph Hospital
Finance Authority
(Mercy Memorial
Medical Center
Obligated Group),
5.250%, 1/01/16 1/04 at 102 Aaa 15,445,139
5,000,000 University of Michigan
Hospital,
6.625%, 12/01/10 12/96 at 100 Aa 5,050,250
- --------------------------------------------------------------------------------
MINNESOTA - 0.8%
2,520,000 Minnesota Housing
Finance Agency,
6.250%, 2/01/20 2/96 at 102 A1 2,533,583
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 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 $ 15,031,120
5,000,000 University of Minnesota,
7.625%, 2/01/05 (Pre-
refunded to 2/01/96) 2/96 at 102 AAA 5,180,450
- ------------------------------------------------------------------------------------
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 2,943,327
15,750,000 Missouri Health and
Educational Facilities
Authority (Heartland
Health), 8.125%,
10/01/10 10/99 at 102 1/2 BBB+ 18,146,993
6,195,000 Missouri Housing
Development Commission,
7.000%, 9/15/22 9/95 at 101 3/4 AA+ 6,320,201
- ------------------------------------------------------------------------------------
NEBRASKA - 1.5%
40,835,000 Consumers Public Power
District, 5.100%,
1/01/03 1/96 at 100 A1 41,021,616
2,615,000 Hall County Hospital
Authority
(Sisters of Charity),
6.750%, 12/01/07 12/95 at 103 Aa 2,651,610
- ------------------------------------------------------------------------------------
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 8,939,875
- ------------------------------------------------------------------------------------
NEW JERSEY - 0.4%
10,750,000 New Jersey Housing and
Mortgage Finance
Agency, 6.950%,
11/01/13 5/02 at 102 A+ 11,327,168
- ------------------------------------------------------------------------------------
NEW YORK - 7.3%
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 9,227,760
13,000,000 New York State Housing
Finance Agency,
Health Facilities (New
York City),
8.000%, 11/01/08 11/00 at 102 BBB+ 14,639,430
11,490,000 New York State Mortgage
Agency,
6.875%, 4/01/17 10/96 at 102 Aa 11,854,463
10,725,000 Battery Park City
Authority, 5.000%,
11/01/13 11/03 at 102 AA 9,482,294
New York Municipal
Assistance Corporation:
16,270,000 7.750%, 7/01/06 7/97 at 102 Aa 17,633,426
18,565,000 6.750%, 7/01/06 7/97 at 102 Aa 19,737,937
23,535,000 7.250%, 7/01/08 7/96 at 102 Aa 24,647,029
14,250,000 6.000%, 7/01/08 7/97 at 100 Aa 14,443,088
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND--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 Baa1 $ 24,939,256
16,500,000 4.875%, 10/01/01 No Opt. Call Baa1 16,005,165
2,350,000 6.000%, 8/15/04 No Opt. Call Baa1 2,379,117
5,000,000 8.125%, 11/01/06 (Pre-
refunded to 11/01/97) 11/97 at 101 1/2 Aaa 5,510,000
8,000,000 5.750%, 8/15/11 8/03 at 102 Baa1 7,553,200
8,525,000 6.625%, 8/01/12 (Pre-
refunded to 8/01/02) 8/02 at 101 1/2 Aaa 9,695,994
14,000,000 6.625%, 2/15/25 2/05 at 101 Baa1 14,173,040
5,000,000 Triborough Bridge and
Tunnel Authority,
General Purpose,
4.750%, 1/01/19 1/04 at 100 Aa 4,220,150
- ------------------------------------------------------------------------------------
NORTH CAROLINA - 4.0%
North Carolina Eastern
Municipal Power Agency:
53,810,000 6.250%, 1/01/12 1/03 at 102 A 52,673,533
17,290,000 8.000%, 1/01/21 1/98 at 102 Aaa 19,125,852
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 14,401,472
5,545,000 7.625%, 1/01/14 1/98 at 102 Aaa 6,068,282
20,080,000 8.500%, 1/01/17 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 20,801,675
Wilmington Housing
Authority:
165,000 7.750%, 6/01/98 No Opt. Call AA 171,183
1,195,000 7.750%, 6/01/10 No Opt. Call AA 1,268,481
- ------------------------------------------------------------------------------------
OHIO - 0.2%
6,285,000 Ohio Building Authority
(Correctional
Facilities), 9.100%,
10/01/04 (Pre-refunded
to 10/01/95) 10/95 at 103 Aaa 6,500,890
500,000 Ohio Building Authority
(Toledo Center),
9.100%, 10/01/04 10/95 at 103 A1 517,330
- ------------------------------------------------------------------------------------
OKLAHOMA - 0.3%
5,375,000 Comanche County Hospital
Authority,
8.050%, 7/01/16 (Pre-
refunded to 7/01/99) 7/99 at 102 AAA 6,175,284
2,970,000 Midwest City Memorial
Hospital Authority,
7.375%, 4/01/12 4/02 at 102 BBB+ 3,033,023
- ------------------------------------------------------------------------------------
PENNSYLVANIA - 4.7%
Pennsylvania Housing
Finance Agency:
4,025,000 8.100%, 7/01/13 7/02 at 102 AAA 4,464,933
16,830,000 8.200%, 7/01/24 7/02 at 102 AAA 18,662,619
22,500,000 Pennsylvania Housing
Finance Agency, Rental
Housing (FNMA), 5.750%,
7/01/14 7/03 at 102 Aaa 22,092,075
15,000,000 Pennsylvania
Intergovernmental
Cooperative Authority
(Philadelphia Funding
Program), 5.00%,
6/15/22 6/03 at 100 Aaa 13,119,600
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 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 $ 5,257,050
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 10,294,300
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 6,712,833
9,300,000 Philadelphia Airport,
6.200%, 6/15/06 12/95 at 100 Baa1 9,301,860
Philadelphia Water and
Sewer System:
5,890,000 7.250%, 7/01/14 (Pre-
refunded to 7/01/96) 7/96 at 102 AAA 6,114,232
7,000,000 7.000%, 8/01/18 (Pre-
refunded to 8/01/01) 8/01 at 100 Baa 7,830,480
28,075,000 Philadelphia Hospitals
and Higher Educational
Facilities Authority
(Pennsylvania
Hospital), 7.250%,
7/01/14 7/96 at 101 A 28,679,736
- ------------------------------------------------------------------------------------
RHODE ISLAND - 0.2%
7,595,000 Rhode Island Convention
Center Authority,
5.000%, 5/15/20 5/03 at 100 Aaa 6,587,144
- ------------------------------------------------------------------------------------
TEXAS - 4.5%
Austin Water, Sewer and
Electric:
300,000 14.000%, 11/15/01 (Pre-
refunded to 5/15/99) 5/99 at 100 A 393,816
17,275,000 14.000%, 11/15/01 No Opt. Call A 23,704,582
4,000,000 11.000%, 11/15/02 (Pre-
refunded to 5/15/97) 5/97 at 100 AAA 4,460,200
15,000,000 Brazos River Authority,
5.800%, 8/01/15 8/00 at 102 Aaa 14,704,200
Dallas-Fort Worth
International Airport:
9,400,000 9.000%, 11/01/05 11/95 at 102 1/2 A1 9,714,806
15,945,000 9.125%, 11/01/15 11/95 at 102 1/2 A1 16,482,187
19,900,000 Harris County Toll Road,
5.300%, 8/15/13 8/04 at 102 Aaa 18,671,772
7,000,000 Harris County Health
Facilities Development
Corporation (St. Luke's
Episcopal Hospital),
6.750%, 2/15/21 2/01 at 102 Aa 7,290,290
3,345,000 Houston Water and Sewer
System, 8.200%,
12/01/15 (Pre-refunded
to 12/01/96) 12/96 at 102 AAA 3,588,650
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 5,534,700
3,500,000 8.000%, 2/01/16 (Pre-
refunded to 2/01/98) 2/98 at 102 Aaa 3,874,290
16,000,000 5.000%, 2/01/17 2/02 at 101 Aa1 14,066,720
5,615,000 San Antonio Sewer
System, 7.900%, 5/01/14
(Pre-refunded to
5/01/97) 5/97 at 101 1/2 Aaa 6,050,612
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH - 2.7%
Intermountain Power
Agency:
$ 6,300,000 5.500%, 7/01/13 7/03 at 103 Aa $ 5,977,125
32,080,000 7.875%, 7/01/14 7/96 at 102 Aa 33,644,221
16,260,000 7.200%, 7/01/19 7/97 at 102 Aa 17,159,991
22,140,000 5.000%, 7/01/23 7/03 at 100 Aa 18,895,383
1,730,000 Layton Industrial
Development (K-Mart),
8.750%, 6/01/05 12/95 at 100 1/2 Baa1 1,745,657
- ------------------------------------------------------------------------------------
VERMONT - 0.1%
255,000 University of Vermont,
Housing, Dining and
Student Services,
6.300%, 7/01/06 1/96 at 101 AA- 258,443
- ------------------------------------------------------------------------------------
VIRGINIA - 3.9%
Virginia Housing
Development Authority:
3,275,000 6.700%, 11/01/21 11/95 at 101 AA+ 3,314,857
50,000,000 7.150%, 1/01/33 1/02 at 102 AA+ 52,452,500
Virginia Housing
Development Authority,
Multi-Family Housing:
19,080,000 5.550%, 5/01/08 5/03 at 102 AA+ 18,975,442
28,075,000 5.900%, 5/01/14 5/03 at 102 AA+ 27,451,454
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 6,933,451
1,035,000 Chesapeake Industrial
Development Authority
(Camelot Hall Nursing
Home), 7.500%, 9/01/01 No Opt. Call N/R 1,037,349
- ------------------------------------------------------------------------------------
WASHINGTON - 7.1%
Washington Public Power
Supply System,
Nuclear Project No. 1:
14,260,000 7.000%, 7/01/07 No Opt. Call Aa 15,773,414
7,805,000 7.000%, 7/01/09 No Opt. Call Aa 8,553,890
18,500,000 5.750%, 7/01/13 7/03 at 102 Aa 17,455,120
10,000,000 5.375%, 7/01/15 7/03 at 102 Aa 8,882,200
5,000,000 7.125%, 7/01/16 No Opt. Call Aa 5,468,150
10,000,000 5.700%, 7/01/17 7/03 at 102 Aaa 9,531,400
Washington Public Power
Supply System,
Nuclear Project No. 3:
9,180,000 5.300%, 7/01/10 7/03 at 102 Aa 8,494,254
51,070,000 5.375%, 7/01/15 7/03 at 102 Aa 45,361,395
2,095,000 15.000%, 7/01/18 (Pre-
refunded to 7/01/96) 7/96 at 103 Aaa 2,346,630
8,835,000 5.700%, 7/01/18 7/03 at 102 Aa 8,097,012
11,545,000 5.500%, 7/01/18 7/03 at 102 Aa 10,305,528
6,635,000 Chelan County Public
Utility District No. 1,
5.125%, 7/01/23 1/96 at 100 A1 6,070,692
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 32,482,000 Chelan County Public
Utility District No. 1
(Rocky Reach Hydro-
Electric System),
5.000%, 7/01/13 1/96 at 100 A1 $ 32,489,470
12,825,000 Columbia Storage Power
Exchange,
3.875%, 4/01/03 10/95 at 100 Aa 12,812,046
5,910,000 Douglas County Public
Utility District No. 1
(Wells Hydroelectric),
4.000%, 9/01/18 9/96 at 101 A+ 5,078,580
4,950,000 Seattle Metropolitan
Sewer,
7.400%, 1/01/16 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 5,108,845
- ------------------------------------------------------------------------------------
WISCONSIN - 3.1%
13,700,000 Wisconsin Health and
Educational Facilities
Authority (Columbia
Hospital), 6.250%,
11/15/21 11/01 at 102 Aaa 13,807,544
6,000,000 Wisconsin Health and
Educational Facilities
Authority (Meriter
Health Services),
6.000%, 12/01/22 12/02 at 102 Aaa 5,935,800
13,500,000 Wisconsin Health and
Educational Facilities
Authority (Aurora
Health Care Obligated
Group), 5.250%, 8/15/23 8/03 at 102 Aaa 11,952,630
3,250,000 Wisconsin Health and
Educational Facilities
Authority (Froedtert
Memorial Lutheran
Hospital), 5.875%,
10/01/13 10/04 at 102 Aaa 3,201,802
Wisconsin Housing and
Economic Development
Authority:
2,760,000 9.875%, 11/01/03 11/95 at 100 1/2 A1 2,801,565
3,200,000 10.000%, 11/01/10 11/95 at 100 1/2 A1 3,248,800
28,200,000 5.800%, 11/01/13 1/04 at 102 A1 27,547,733
4,500,000 5.800%, 6/01/17 No Optional Call Aa 4,450,184
8,500,000 7.050%, 11/01/22 4/02 at 102 A1 8,874,084
4,815,000 Sheboygan Pollution
Control
(Wisconsin Electric
Power Company),
9.750%, 9/15/15 9/95 at 102 AA+ 4,933,881
- ------------------------------------------------------------------------------------
PUERTO RICO - 0.3%
8,000,000 Puerto Rico Aqueduct and
Sewer Authority,
7.875%, 7/01/17 7/98 at 102 A 8,910,000
- ------------------------------------------------------------------------------------
$2,785,181,452 Total Investments -
(cost $2,627,589,228) -
96.8% 2,743,859,075
- ------------------------------------------------------------------------------------
- -------------------
- ------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 1.3%
$ 7,000,000 District of Columbia
(American Association
for Advancement of
Science), Series 1995,
Variable Rate Demand
Bonds, 3.550%,
10/01/22+ A-1 $ 7,000,000
11,000,000 Massachusetts Health and
Educational Facilities
Authority (Harvard
University), Variable
Rate Demand Bonds,
3.150%, 8/01/17+ VMIG-1 11,000,000
5,800,000 McIntosh Industrial
Development Board
Pollution Control
Revenue (Ciba-Geigy
Corporation) Variable
Rate Demand Bonds,
3.450%, 7/01/04+ A-1+ 5,800,000
3,500,000 Schuylkill County
Industrial Development
Authority Resource
Recovery (Northeastern
Power Co. Project) 1985
Variable Rate Demand
Bonds, 3.450%,
12/01/11+ A-1 3,500,000
9,100,000 University of Michigan
Hospital (Adjustable
Rate Demand) Variable
Rate Demand Bonds,
3.450%, 12/01/27+ VMIG-1 9,100,000
- -------------------------------------------------------------------------------
$ 36,400,000 Total Temporary
Investments--1.3% 36,400,000
- -------------------------------------------------------------------------------
Other Assets Less
Liabilities - 1.9% 54,776,148
- -------------------------------------------------------------------------------
Net Assets - 100% $2,835,035,223
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 77 $ 890,631,936 32%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 77 1,008,397,189 36
PORTFOLIO OF A+ A1 24 344,871,140 13
INVESTMENTS A, A- A, A2, A3 24 315,915,353 12
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 17 165,812,121 6
TEMPORARY Non-rated Non-rated 4 18,231,336 1
INVESTMENTS):
- -----------------------------------------------------------------------------------------
TOTAL 223 $2,743,859,075 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
22
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
NUVEEN INSURED MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ALABAMA - 4.6%
$ 2,120,000 Albertville Water Supply
Board, 6.700%, 3/01/11 3/02 at 102 Aaa $ 2,271,559
4,960,000 Auburn Government
Utility Services
Corporation, Wastewater
Treatment, 7.300%,
1/01/12 12/99 at 102 Aaa 5,349,509
1,875,000 Birmingham Special Care
Facilities Financing
Authority (Baptist
Medical Center),
7.000%, 1/01/21 1/01 at 102 Aaa 2,033,175
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 1,428,943
1,225,000 7.350%, 6/01/20 6/00 at 102 Aaa 1,368,484
Madison General
Obligation:
3,000,000 6.250%, 2/01/19 2/04 at 102 Aaa 3,073,620
5,500,000 6.000%, 4/01/23 4/05 at 102 Aaa 5,531,570
3,000,000 Mobile County General
Obligation,
6.700%, 2/01/11 (Pre-
refunded to 2/01/00) 2/00 at 102 Aaa 3,318,480
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 2,647,721
3,000,000 Oneanta Utilities Board,
6.900%, 11/01/24 11/04 at 102 Aaa 3,252,720
750,000 Warrior River Water
Authority, 5.350%,
8/01/23 8/03 at 102 Aaa 694,793
West Morgan--East
Lawrence Water
Authority:
2,200,000 6.800%, 8/15/19 8/04 at 102 Aaa 2,374,614
3,000,000 6.850%, 8/15/25 8/04 at 102 Aaa 3,250,140
- --------------------------------------------------------------------------------
ALASKA - 0.6%
5,000,000 Anchorage General
Obligation, 5.600%,
1/01/14 1/04 at 100 Aaa 4,816,600
- --------------------------------------------------------------------------------
ARIZONA - 1.6%
3,000,000 Maricopa County
Industrial Development
Authority (Catholic
Healthcare West),
5.125%, 7/01/09 7/04 at 102 Aaa 2,914,380
3,680,000 Maricopa County
Industrial Development
Authority (Baptist
Hospital), 5.500%,
9/01/13 (WI) 9/05 at 101 Aaa 3,537,805
6,000,000 Tempe Union High School
District No. 213,
General Obligation,
6.000%, 7/01/10 7/04 at 101 Aaa 6,241,860
- --------------------------------------------------------------------------------
ARKANSAS - 0.3%
2,000,000 Saline County (Saline
Memorial Hospital),
6.000%, 9/01/19 9/05 at 102 AAA 1,972,480
- --------------------------------------------------------------------------------
CALIFORNIA - 13.6%
5,000,000 California Health
Facilities Financing
Authority (Catholic
Healthcare West),
5.000%, 7/01/14 7/04 at 102 Aaa 4,439,950
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 4,042,223
1,475,000 7.000%, 8/01/15 8/01 at 102 Aaa 1,602,853
5,000,000 Brea Redevelopment
Agency, Tax Allocation,
5.750%, 8/01/23 8/03 at 102 Aaa 4,837,900
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 6,000,000 Contra Costa Water
Authority, 5.750%,
10/01/20 10/02 at 102 Aaa $ 5,813,940
4,150,000 Fairfield Public Finance
Authority,
5.500%, 8/01/23 8/03 at 102 Aaa 3,838,667
Los Angeles Community
Redevelopment Agency
(Bunker Hill Project):
10,700,000 5.625%, 12/01/23 12/03 at 102 Aaa 10,045,588
2,500,000 5.600%, 12/01/28 12/03 at 102 Aaa 2,325,950
14,740,000 Los Angeles Convention
and Exhibition Center
Authority,
5.375%, 8/15/18 8/03 at 102 Aaa 13,582,026
Los Angeles Wastewater
System:
4,570,000 5.800%, 6/01/21 6/03 at 102 Aaa 4,432,946
3,515,000 5.200%, 11/01/21 11/03 at 102 Aaa 3,133,095
4,500,000 Los Angeles County
Metropolitan
Transportation
Authority, Sales Tax,
5.625%, 7/01/18 7/03 at 102 Aaa 4,291,245
4,500,000 M-S-R Public Power
Agency (San Juan
Project),
6.000%, 7/01/20 7/03 at 102 Aaa 4,502,835
1,700,000 Monterey Regional Water
Pollution Control
Agency, Wastewater
System, 5.300%, 6/01/14 6/03 at 100 Aaa 1,566,958
6,875,000 Ontario Redevelopment
Financing Authority,
5.800%, 8/01/23 8/03 at 102 Aaa 6,671,294
3,000,000 Rancho Cucamonga
Redevelopment Agency,
5.500%, 9/01/23 3/04 at 102 Aaa 2,790,090
5,295,000 Riverside County Desert,
Justice Facility
Corporation,
Certificates of
Participation,
6.000%, 12/01/12 12/04 at 101 Aaa 5,334,713
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 2,527,628
4,750,000 San Francisco City and
County Sewer System,
5.375%, 10/01/22 10/02 at 102 Aaa 4,378,503
7,500,000 University of California
Housing System,
5.500%, 11/01/18 11/03 at 102 Aaa 7,050,975
10,000,000 University of
California,
6.375%, 9/01/24 9/02 at 102 Aaa 10,229,900
- --------------------------------------------------------------------------------
COLORADO - 1.7%
4,500,000 Colorado Springs
(Memorial Hospital),
6.000%, 12/15/24 12/05 at 102 Aaa 4,507,245
4,500,000 Denver Board of Water
Commissioners,
Certificates of
Participation, 6.625%,
11/15/11 11/01 at 101 Aaa 4,809,420
3,500,000 Jefferson County
Equipment Lease,
Certificates of
Participation, 6.650%,
12/01/08 12/02 at 102 Aaa 3,833,340
- --------------------------------------------------------------------------------
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 3,797,388
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA -
1.3%
District of Columbia
General Obligation:
$ 2,500,000 7.500%, 6/01/10 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa $ 2,862,400
6,000,000 6.100%, 6/01/11 6/04 at 102 Aaa 6,055,800
1,000,000 Washington Metropolitan
Area Transit Authority,
5.250%, 7/01/14 1/04 at 102 Aaa 941,760
- --------------------------------------------------------------------------------
FLORIDA - 0.7%
Florida Keys Aqueduct
Authority:
920,000 6.750%, 9/01/21 (Pre-
refunded to 9/01/01) 9/01 at 101 Aaa 1,038,450
80,000 6.750%, 9/01/21 9/01 at 101 Aaa 85,103
Brevard County, Utility
System:
1,520,000 7.375%, 3/01/14 (Pre-
refunded to 3/01/98) 3/98 at 102 Aaa 1,668,048
295,000 7.375%, 3/01/14 3/98 at 102 Aaa 321,810
2,405,000 South Broward Hospital
District,
7.500%, 5/01/08 5/03 at 102 Aaa 2,775,009
- --------------------------------------------------------------------------------
GEORGIA - 2.4%
1,000,000 Georgia Municipal
Electric Authority,
6.500%, 1/01/26 1/04 at 102 Aaa 1,042,680
5,000,000 Albany Sewerage System,
6.625%, 7/01/17 7/02 at 102 Aaa 5,288,550
5,000,000 Appling County
Development Authority
(Oglethorpe Power
Corporation),
7.150%, 1/01/21 1/04 at 101 Aaa 5,537,950
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 1,129,070
2,250,000 Chatham County Hospital
Authority
(Savannah Memorial
Medical Center),
7.000%, 1/01/21 1/01 at 102 Aaa 2,467,215
1,500,000 Columbus Water and
Sewerage System,
5.700%, 5/01/20 11/03 at 102 Aaa 1,461,120
2,500,000 Fulton-DeKalb Hospital
Authority
(Grady Memorial),
5.500%, 1/01/20 7/03 at 102 Aaa 2,359,150
- --------------------------------------------------------------------------------
ILLINOIS - 14.2%
Illinois General
Obligation:
3,065,000 6.100%, 2/01/19 2/05 at 102 Aaa 3,079,804
5,000,000 5.875%, 8/01/19 8/04 at 102 AA- 4,843,800
5,545,000 6.100%, 2/01/20 2/05 at 102 Aaa 5,571,782
6,750,000 Illinois Health
Facilities Authority
(Methodist Health
Services),
8.000%, 8/01/15 2/99 at 103 Aaa 7,620,210
4,500,000 Illinois Health
Facilities Authority
(The Children's
Memorial Hospital),
5.500%, 8/15/22 8/03 at 102 Aaa 3,848,985
1,500,000 Illinois Health
Facilities Authority
(Rush-Presbyterian-St.
Luke's Medical Center),
5.500%, 11/15/25 11/03 at 102 Aaa 1,386,015
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 3,000,000 Illinois Health
Facilities Authority
(The University of
Chicago Hospitals),
6.125%, 8/15/24 8/04 at 102 Aaa $ 3,008,190
Illinois Health
Facilities Authority
(Ingalls Health
System):
7,000,000 6.250%, 5/15/14 5/04 at 102 Aaa 7,130,410
4,500,000 6.250%, 5/15/15 5/04 at 102 Aaa 4,551,975
2,100,000 7.000%, 1/01/19 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 2,355,864
4,000,000 Illinois Health
Facilities Authority
(Northwestern Medical
Faculty Foundation),
6.500%, 11/15/15 11/04 at 102 Aaa 4,161,000
1,463,000 Illinois Health
Facilities Authority
(Community Provider
Pooled Loan Program),
7.900%, 8/15/03 2/96 at 102 Aaa 1,520,996
7,705,000 Illinois State Toll
Highway Authority,
6.200%, 1/01/16 1/03 at 102 Aaa 7,780,201
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 2,849,150
5,000,000 Chicago General
Obligation,
6.250%, 1/01/12 1/02 at 102 Aaa 5,096,900
1,500,000 Chicago Public Building
Commission (Community
College District No.
508), 7.700%, 1/01/08 1/98 at 102 Aaa 1,644,210
23,300,000 Chicago Public Building
Commission (Board of
Education),
5.750%, 12/01/18 12/03 at 102 Aaa 22,543,915
6,540,000 Cicero General
Obligation,
6.400%, 12/01/14 12/04 at 102 Aaa 6,783,484
2,500,000 Cook County Community
College District No.
508, 8.750%, 1/01/07 No Opt. Call Aaa 3,239,975
2,370,000 Eastern Illinois
University, 6.375%,
4/01/16 4/04 at 102 Aaa 2,427,544
7,570,000 Franklin Park General
Obligation, 5.500%,
7/01/22 7/04 at 102 Aaa 7,067,579
4,000,000 Regional Transportation
Authority, General
Obligation, 5.850%,
6/01/23 6/03 at 102 Aaa 3,892,600
- -----------------------------------------------------------------------------------
INDIANA - 5.5%
5,000,000 Indiana Health
Facilities Financing
Authority (Community
Hospitals Project),
6.400%, 5/01/12 5/02 at 102 Aaa 5,156,950
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 1,119,420
5,000,000 6.125%, 1/01/19 1/03 at 102 Aaa 5,029,450
3,750,000 Indianapolis Gas Utility
System, 6.200%, 6/01/23 6/02 at 102 Aaa 3,789,863
5,350,000 Jasper County Pollution
Control
(Northern Indiana
Public Service
Company),
7.100%, 7/01/17 7/01 at 102 Aaa 5,793,783
2,000,000 Lawrence Central High
School Building
Corporation, First
Mortgage,
7.250%, 7/01/08 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 2,272,360
</TABLE>
26
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA (CONTINUED)
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 $ 3,755,631
500,000 7.000%, 6/01/21 6/01 at 102 Aaa 545,100
2,250,000 Monroe County Hospital
Authority
(Bloomington Hospital),
7.125%, 5/01/11 5/99 at 101 Aaa 2,452,950
1,000,000 Princeton Pollution
Control (Public Service
Company of Indiana),
7.375%, 3/15/12 3/00 at 102 Aaa 1,105,310
2,000,000 St. Joseph County
Hospital Authority
(Memorial Hospital of
South Bend),
7.000%, 8/15/20 8/01 at 102 Aaa 2,163,560
2,190,000 Shelby County Jail
Building Corporation,
First Mortgage,
6.500%, 7/15/09 7/02 at 102 Aaa 2,301,143
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 4,384,160
1,380,000 6.650%, 1/15/14 (Pre-
refunded to 7/15/00) 7/00 at 100 Aaa 1,512,204
2,265,000 Southwest Allen Multi-
School Building
Corporation,
6.375%, 1/15/09 1/02 at 101 Aaa 2,347,514
- --------------------------------------------------------------------------------
KENTUCKY - 0.1%
1,000,000 Louisville and Jefferson
County Metropolitan
Sewer District, 7.350%,
5/01/19 (Pre-refunded
to 5/01/00) 5/00 at 102 Aaa 1,136,740
- --------------------------------------------------------------------------------
LOUISIANA - 2.9%
Louisiana General
Obligation:
5,000,000 6.500%, 5/01/09 5/02 at 102 Aaa 5,342,150
2,000,000 6.500%, 5/01/12 5/02 at 102 Aaa 2,102,480
7,000,000 Louisiana Public
Facilities Authority
(Southern Baptist
Hospital),
6.800%, 5/15/12 5/02 at 102 Aaa 7,502,040
1,655,000 Louisiana Public
Facilities Authority
(West Jefferson Medical
Center), 7.900%,
12/01/15 12/98 at 102 Aaa 1,847,030
Tangipahoa Parish
Hospital Service
District No. 1:
1,250,000 6.125%, 2/01/14 2/04 at 102 Aaa 1,268,663
4,750,000 6.250%, 2/01/24 2/04 at 102 Aaa 4,811,323
- --------------------------------------------------------------------------------
MAINE - 2.0%
Maine Health and Higher
Educational Facilities
Authority:
3,175,000 7.000%, 7/01/24 7/04 at 102 Aaa 3,475,736
11,500,000 5.875%, 7/01/25 7/05 at 102 Aaa 11,176,045
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MAINE (CONTINUED)
Old Orchard Beach
General Obligation:
$ 750,000 6.650%, 9/01/09 9/02 at 103 Aaa $ 812,655
500,000 6.650%, 9/01/10 9/02 at 103 Aaa 540,550
- --------------------------------------------------------------------------------
MARYLAND - 0.5%
3,000,000 Maryland Health and
Higher Educational
Facilities Authority
(Frederick Memorial
Hospital),
5.000%, 7/01/23 7/03 at 102 Aaa 2,607,120
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 1,125,420
- --------------------------------------------------------------------------------
MASSACHUSETTS - 4.2%
1,250,000 Massachusetts Bay
Transportation
Authority, Certificates
of Participation,
7.650%, 8/01/15 8/00 at 102 Aaa 1,444,363
2,000,000 Massachusetts General
Obligation,
7.000%, 6/01/09 (Pre-
refunded to 6/01/99) 6/99 at 102 Aaa 2,220,560
2,000,000 Massachusetts Health and
Educational Facilities
Authority (Capital
Asset Program),
7.300%, 10/01/18 4/00 at 102 Aaa 2,201,680
3,400,000 Massachusetts Health and
Educational Facilities
Authority (New England
Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 3,572,210
4,000,000 Massachusetts Health and
Educational Facilities
Authority (South Shore
Hospital),
6.500%, 7/01/22 7/02 at 102 Aaa 4,154,600
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Falmouth
Hospital),
5.625%, 7/01/11 7/03 at 102 Aaa 982,950
2,800,000 Massachusetts Health and
Educational Facilities
Authority (Lahey Clinic
Medical Center),
5.625%, 7/01/15 7/03 at 102 Aaa 2,697,744
5,875,000 Massachusetts Health and
Educational Facilities
Authority (Cape Cod
Health System),
5.250%, 11/15/21 11/03 at 102 AAA 5,260,475
4,000,000 Massachusetts Health and
Educational Facilities
Authority (Berkshire
Health System),
6.000%, 10/01/19 10/05 at 102 Aaa 3,979,560
1,660,000 Massachusetts Turnpike
Authority,
5.125%, 1/01/23 1/03 at 102 Aaa 1,484,239
3,500,000 Boston City Hospital
(FHA-Insured),
7.625%, 2/15/21 (Pre-
refunded to 8/15/00) 8/00 at 102 Aaa 4,006,730
1,150,000 Haverhill General
Obligation,
7.000%, 6/15/12 6/02 at 102 Aaa 1,254,880
</TABLE>
28
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN - 5.3%
$ 5,475,000 Michigan State Trunk
Line Fund Series 1992-
B2, 5.500%, 10/01/21 10/02 at 100 Aaa $ 5,136,536
1,535,000 Michigan Housing
Development Authority,
5.625%, 10/15/18 10/03 at 103 Aaa 1,437,927
2,400,000 Michigan Hospital
Finance Authority
(Henry Ford Health
System),
5.750%, 9/01/17 9/02 at 102 Aaa 2,324,376
2,000,000 Michigan Strategic Fund
(The Detroit Edison
Company),
6.875%, 12/01/21 12/01 at 102 Aaa 2,147,840
12,130,000 Bay City General
Obligation, Unlimited
Tax, 0.000%, 6/01/21 No Opt. Call Aaa 2,524,132
5,000,000 Caledonia Community
Schools General
Obligation,
6.700%, 5/01/22 (Pre-
refunded to 5/01/02) 5/02 at 102 Aaa 5,661,150
2,500,000 Chelsea School District,
Counties of Washtenaw
and Jackson, General
Obligation, 6.000%,
5/01/19 5/05 at 102 Aaa 2,505,600
2,000,000 Detroit Sewage Disposal
System, 6.625%, 7/01/21 7/01 at 102 Aaa 2,098,640
5,000,000 Jackson County Hospital
Finance Authority
(W. A. Foote Memorial
Hospital),
5.250%, 6/01/23 6/03 at 102 Aaa 4,501,900
8,000,000 Livonia Public School
District, General
Obligation,
5.500%, 5/01/21 5/03 at 102 Aaa 7,588,960
6,085,000 River Rouge School
District, Unlimited
Tax, 5.625%, 5/01/22 5/03 at 101 1/2 Aaa 5,837,341
- -----------------------------------------------------------------------------------
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 6,287,040
- -----------------------------------------------------------------------------------
NEVADA - 1.3%
2,500,000 Churchill County
(Western Health
Network), 6.000%,
1/01/24 1/04 at 102 Aaa 2,492,975
2,000,000 Clark County Industrial
Development
(Nevada Power Company),
7.200%, 10/01/22 10/02 at 102 Aaa 2,211,900
4,555,000 Reno Insured Hospital
(St. Mary's Regional
Medical Center),
5.625%, 5/15/23 5/03 at 102 Aaa 4,278,512
1,160,000 University of Nevada
System,
7.125%, 7/01/16 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,311,728
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW HAMPSHIRE - 0.4%
$ 2,850,000 New Hampshire Higher
Education and Health
Facilities Authority,
University System,
6.250%, 7/01/20 7/02 at 102 Aaa $ 2,894,090
- -----------------------------------------------------------------------------------
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 1,597,275
1,955,000 Pennsauken Township,
Housing Finance
Corporation,
8.000%, 4/01/11 4/05 at 100 Aaa 2,065,203
- -----------------------------------------------------------------------------------
NEW MEXICO - 1.0%
3,000,000 Albuquerque Hospital
System (Presbyterian
Healthcare Services),
6.600%, 8/01/07 8/97 at 102 Aaa 3,154,650
4,445,000 Farmington Pollution
Control (Public Service
Company of New Mexico),
6.375%, 12/15/22 12/02 at 102 Aaa 4,571,416
- -----------------------------------------------------------------------------------
NEW YORK - 12.8%
6,530,000 New York State Medical
Care Facilities Finance
Agency, Mental Health
Services, Facilities
Improvement, 5.900%,
8/15/22 8/02 at 102 Aaa 6,468,879
3,000,000 New York State Urban
Development
Corporation,
Correctional
Facilities,
5.250%, 1/01/18 1/03 at 102 Aaa 2,762,910
3,000,000 Dormitory Authority of
the State of New York
(City University),
5.750%, 7/01/18 No Opt. Call Aaa 2,965,890
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 1,598,476
8,375,000 5.000%, 7/01/21 7/04 at 102 Aaa 7,406,431
Metropolitan
Transportation
Authority
Commuter Facilities:
4,955,000 6.250%, 7/01/17 7/02 at 102 Aaa 5,089,677
5,000,000 6.375%, 7/01/18 7/04 at 101 1/2 Aaa 5,195,700
6,925,000 6.250%, 7/01/22 7/02 at 102 Aaa 7,094,039
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 6,500,012
285,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 303,112
3,010,000 6.000%, 5/15/16 5/03 at 101 1/2 Aaa 3,025,050
3,750,000 7.000%, 2/01/18 2/02 at 101 1/2 Aaa 4,105,050
1,000,000 New York City
Educational
Construction Fund,
5.625%, 4/01/13 4/04 at 101 1/2 Aaa 978,650
6,675,000 New York City Health and
Hospitals Corporation,
Health System,
5.750%, 2/15/22 2/03 at 102 Aaa 6,480,624
6,330,000 New York City Municipal
Water Financing
Authority, 6.750%,
6/15/16 6/01 at 101 Aaa 6,746,074
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
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 $ 4,580,057
2,025,000 6.750%, 6/15/14 6/99 at 101 1/2 Aaa 2,150,003
4,470,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 4,353,333
1,000,000 New York City Transit
Authority Transit
Facilities (Livingston
Plaza Project) 7.500%,
1/01/20
(Pre-refunded to
1/01/00) 1/00 at 102 Aaa 1,139,270
3,900,000 New York City Transit
Authority Transit
Facilities, 5.400%,
1/01/18 No Opt. Call Aaa 3,670,836
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 3,762,185
3,000,000 6.600%, 11/15/11 11/04 at 102 Aaa 3,236,490
2,765,000 Suffolk County Water
Authority, Water
System, 5.000%, 6/01/17 6/03 at 102 Aaa 2,483,882
Triborough Bridge and
Tunnel Authority,
Special Obligation:
5,240,000 6.875%, 1/01/15 1/01 at 102 Aaa 5,626,922
3,015,000 5.500%, 1/01/17 1/02 at 100 Aaa 2,894,159
- -----------------------------------------------------------------------------------
NORTH CAROLINA - 0.3%
2,500,000 Charlotte Convention
Facility, Certificates
of Participation,
5.250%, 12/01/20 12/03 at 102 Aaa 2,309,325
- -----------------------------------------------------------------------------------
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 1,133,490
2,500,000 Dublin City School
District, General
Obligation,
6.200%, 12/01/19 12/02 at 102 Aaa 2,561,525
1,500,000 Pickerington Local
School District,
General Obligation,
5.375%, 12/01/19 12/04 at 102 Aaa 1,411,830
1,000,000 South Euclid-Lyndhurst
City School District,
General Obligation,
Unlimited Tax,
5.300%, 12/01/14 12/04 at 102 Aaa 951,270
- -----------------------------------------------------------------------------------
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 5,144,050
400,000 Muskogee County Home
Finance Authority,
Single Family Mortgage,
7.600%, 12/01/10 6/00 at 102 Aaa 428,664
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA - 2.9%
$ 5,000,000 Lehigh County General
Purpose Authority (St.
Luke's Hospital of
Bethlehem),
6.250%, 7/01/22 7/02 at 102 Aaa $ 5,073,950
North Penn Water
Authority:
750,000 6.875%, 11/01/19 (Pre-
refunded to 11/01/04) 11/04 at 101 Aaa 872,753
3,000,000 7.000%, 11/01/24 (Pre-
refunded to 11/01/04) 11/04 at 101 Aaa 3,518,610
500,000 Northampton County
Higher Educational
Authority (Moravian
College),
7.150%, 6/01/09 (Pre-
refunded to 6/01/98) 6/98 at 101 Aaa 543,705
7,500,000 Philadelphia Water and
Wastewater System,
5.500%, 6/15/14 6/03 at 102 Aaa 7,104,300
3,900,000 Philadelphia Municipal
Authority, Justice
Lease, 7.125%, 11/15/18
(Pre-refunded to
11/15/01) 11/01 at 102 Aaa 4,496,271
1,000,000 Washington County
Hospital Authority,
Hospital Refunding,
7.150%, 7/01/17 7/00 at 102 Aaa 1,094,750
- -----------------------------------------------------------------------------------
RHODE ISLAND - 3.2%
Rhode Island Depositors
Economic Protection
Corporation, Special
Obligation:
7,950,000 6.000%, 8/01/17 8/03 at 102 Aaa 7,949,444
2,250,000 6.625%, 8/01/19 (Pre-
refunded to 8/01/02) 8/02 at 102 Aaa 2,545,763
6,255,000 Rhode Island Health and
Educational Building
Corporation, Higher
Education Auxiliary
Enterprise,
5.250%, 9/15/23 9/03 at 102 Aaa 5,614,175
4,000,000 Cranston General
Obligation,
7.200%, 7/15/11 (Pre-
refunded to 7/15/01) 7/01 at 101 1/2 Aaa 4,586,640
3,130,000 Kent County Water
Authority,
6.350%, 7/15/14 7/04 at 102 Aaa 3,247,937
1,000,000 Providence Housing
Development
Corporation, FHA-
Insured (Barbara Jordan
Apartments), 6.650%,
7/01/15 7/04 at 102 Aaa 1,044,640
- -----------------------------------------------------------------------------------
SOUTH CAROLINA - 1.2%
1,000,000 Aiken Water and Sewer
System, 7.250%, 1/01/14 1/00 at 102 Aaa 1,107,280
Charleston County Public
Facilities Corporation,
Certificates of
Participation:
1,500,000 6.875%, 6/01/14 6/04 at 102 Aaa 1,623,720
2,500,000 7.000%, 6/01/19 6/04 at 102 Aaa 2,744,475
Rock Hill Combined
Utility System:
2,000,000 6.375%, 1/01/15 1/01 at 102 Aaa 2,054,480
2,000,000 7.000%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 2,231,040
</TABLE>
32
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 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 $ 1,099,870
- --------------------------------------------------------------------------------
TENNESSEE - 0.2%
500,000 Memphis-Shelby County
Airport Authority,
5.650%, 9/01/15 9/03 at 102 Aaa 483,160
1,000,000 Robertson and Sumner
Counties, White House
Utility District,
6.375%, 1/01/22 1/02 at 102 Aaa 1,035,470
- --------------------------------------------------------------------------------
TEXAS - 3.9%
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 6,178,800
800,000 Texas Housing Agency,
Single Family Mortgage,
7.875%, 9/01/17 9/96 at 102 Aa 825,335
3,000,000 Bexar County Health
Facilities Development
Corporation (Baptist
Memorial Hospital
System Project),
6.750%, 8/15/19 8/04 at 102 Aaa 3,186,060
5,000,000 Bexar Metropolitan Water
District,
5.000%, 5/01/19 5/04 at 100 Aaa 4,429,500
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 5,145,227
1,000,000 Harris County Hospital
District,
7.400%, 2/15/10 No Opt. Call Aaa 1,170,180
500,000 Houston Hotel Occupancy
Tax and Parking
Facilities,
7.000%, 7/01/15 (Pre-
refunded to 7/01/01) 7/01 at 100 Aaa 562,100
825,000 Lower Colorado River
Authority, Priority
Refunding,
7.000%, 1/01/11 1/01 at 102 Aaa 912,375
3,250,000 Sabine River Authority,
Pollution Control
(Texas Utilities
Electric Company),
5.550%, 5/01/22 11/03 at 102 Aaa 3,048,110
5,000,000 Tarrant County Health
Facilities Development
Corporation (Fort Worth
Osteopathic Hospital),
6.000%, 5/15/21 No Opt. Call Aaa 5,045,350
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH - 1.4%
$ 310,000 Utah Housing Finance
Agency, Single Family
Mortgage,
8.375%, 7/01/19 1/09 at 100 AA $ 355,848
4,500,000 Utah Building Ownership
Authority,
5,750%, 5/15/18 11/05 at 100 Aaa 4,366,440
Provo City Energy
System:
2,300,000 5.500%, 11/15/11 5/03 at 102 Aaa 2,246,777
500,000 5.750%, 5/15/14 5/03 at 102 Aaa 487,650
3,500,000 White City Water System,
6.600%, 2/01/25 2/05 at 100 Aaa 3,672,270
- --------------------------------------------------------------------------------
VIRGINIA - 0.5%
2,860,000 Richmond Metropolitan
Authority Expressway,
5.750%, 7/15/22 7/02 at 100 Aaa 2,783,523
1,050,000 Roanoke County Water
System, 6.000%, 7/01/31
(Pre-refunded to
7/01/01) 7/01 at 100 Aaa 1,129,380
- --------------------------------------------------------------------------------
WASHINGTON - 3.2%
6,500,000 Washington Public Power
Supply System,
Nuclear Project No. 1,
5.700%, 7/01/17 7/03 at 102 Aaa 6,195,410
5,000,000 Washington Public Power
Supply System,
Nuclear Project No. 2,
5.400%, 7/01/05 No Opt. Call Aaa 5,118,350
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 2,802,225
1,000,000 Marysville Water and
Sewer,
7.000%, 12/01/11 (Pre-
refunded to 12/01/03) 12/03 at 100 Aaa 1,152,730
Seattle Metropolitan
Municipality Sewer
System:
5,000,000 5.400%, 1/01/14 1/03 at 102 Aaa 4,711,050
3,080,000 5.400%, 1/01/15 1/03 at 102 Aaa 2,890,025
2,000,000 Whatcom County School
District No. 501,
General Obligation,
6.125%, 12/01/13 12/04 at 100 Aaa 2,048,680
- --------------------------------------------------------------------------------
WEST VIRGINIA - 0.1%
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 1,136,180
</TABLE>
34
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WISCONSIN - 1.5%
$ 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 $ 7,019,718
1,000,000 Wisconsin Municipal
Insurance Commission,
8.700%, 4/01/07 4/97 at 102 Aaa 1,084,800
2,000,000 Superior Limited
Obligation
(Detroit Edison
Company),
6.900%, 8/01/21 No Opt. Call Aaa 2,257,940
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 1,128,090
- ----------------------------------------------------------------------------------
WYOMING - 0.3%
2,000,000 University of Wyoming
Facilities,
7.100%, 6/01/10 6/00 at 101 Aaa 2,197,460
- ----------------------------------------------------------------------------------
PUERTO RICO - 0.5%
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 4,242,937
- ----------------------------------------------------------------------------------
$783,563,000 Total Investments -
(cost $753,274,400) -
99.6% 785,431,179
- ----------------------------------------------------------------------------------
- -------------------
Other Assets Less
Liabilities - 0.4% 3,274,056
- ----------------------------------------------------------------------------------
Net Assets - 100% $788,705,235
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 222 $779,406,196 99%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 3 6,024,983 1
PORTFOLIO OF
INVESTMENTS:
- ----------------------------------------------------------------------------------
TOTAL 225 $785,431,179 100%
</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: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
35
<PAGE>
STATEMENT OF NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $2,743,859,075 $785,431,179
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 36,400,000 --
Cash 6,160,794 --
Receivables:
Interest 45,684,212 10,110,023
Shares sold 194,124 112,839
Investments sold 16,373,000 --
Other assets 69,783 23,013
-------------- ------------
Total assets 2,848,740,988 795,677,054
-------------- ------------
LIABILITIES
Payables:
Investments purchased 1,827,972 3,476,729
Shares reacquired 436,746 35,134
Cash overdraft -- 797,434
Accrued expenses:
Management fees (note 7) 1,063,644 310,532
Other 45,257 80,324
Dividends payable 10,332,146 2,271,666
-------------- ------------
Total liabilities 13,705,765 6,971,819
-------------- ------------
Net assets (note 8) $2,835,035,223 $788,705,235
-------------- ------------
Class A Shares (note 1)
Net Assets $ 20,907,266 $ 35,043,994
-------------- ------------
Shares outstanding 2,294,196 3,302,457
-------------- ------------
Net asset value and redemption price per share $ 9.11 $ 10.61
-------------- ------------
Offering price per share (net asset value per
share plus maximum sales charge of 4.50% of
offering price) $ 9.54 $ 11.11
-------------- ------------
Class C Shares (note 1)
Net Assets $ 691,820 $ 5,370,813
-------------- ------------
Shares outstanding 75,953 511,522
-------------- ------------
Net asset value, offering and redemption price
per share $ 9.11 $ 10.50
-------------- ------------
Class R Shares (note 1)
Net Assets $2,813,436,137 $748,290,428
-------------- ------------
Shares outstanding 308,573,807 70,808,174
-------------- ------------
Net asset value and redemption price per share $ 9.12 $ 10.57
-------------- ------------
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
STATEMENT OF OPERATIONS
(Unaudited)
AUGUST 31, 1995
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 87,262,430 $23,324,885
------------ -----------
Expenses (note 2):
Management fees (note 7) 6,309,609 1,846,777
12b-1 distribution and service fees (note 1) 4,182 52,018
Shareholders' servicing agent fees and expenses 1,124,965 317,397
Custodian's fees and expenses 148,503 61,708
Directors'/Trustees' fees and expenses (note 7) 13,447 5,889
Professional fees 9,693 25,145
Shareholders' reports--printing and mailing
expenses 227,976 149,291
Federal and state registration fees 97,757 33,819
Portfolio insurance expense -- 2,179
Other expenses 78,842 14,139
------------ -----------
Total expenses before expense reimbursement 8,014,974 2,508,362
Expense reimbursement from investment adviser
(note 7) (4,313) (1,303)
------------ -----------
Net expenses 8,010,661 2,507,059
------------ -----------
Net investment income 79,251,769 20,817,826
------------ -----------
REALIZED AND UNREALIZED GAIN FROM INVESTMENTS
Net realized gain from investment transactions,
net of taxes, if applicable (notes 1 and 5) 2,457,127 2,068,059
Net change in unrealized appreciation or
depreciation of investments 33,548,842 12,739,245
------------ -----------
Net gain from investments 36,005,969 14,807,304
------------ -----------
Net increase in net assets from operations $115,257,738 $35,625,130
------------ -----------
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
MUNI BOND INS. MUNI BOND
- ----------------------------------------------------------------------------------------
6 months Year ended 6 months Year ended
ended 8/31/95 2/28/95 ended 8/31/95 2/28/95
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 79,251,769 $ 152,460,727 $ 20,817,826 $ 40,930,291
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable 2,457,127 9,508,194 2,068,059 (1,781,054)
Net change in unrealized
appreciation or
depreciation of
investments 33,548,842 (67,140,015) 12,739,245 (25,968,067)
-------------- -------------- ------------ ------------
Net increase in net
assets from operations 115,257,738 94,828,906 35,625,130 13,181,170
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (52,879) N/A (554,507) (204,455)
Class C (2,265) N/A (106,786) (45,156)
Class R (78,799,741) (151,297,051) (20,342,865) (41,157,453)
From accumulated net
realized gains from
investment
transactions:
Class A -- N/A -- (6,709)
Class C -- N/A -- (1,121)
Class R -- (22,411,997) -- (1,157,602)
-------------- -------------- ------------ ------------
Decrease in net assets
from distributions to
shareholders (78,854,885) (173,709,048) (21,004,158) (42,572,496)
-------------- -------------- ------------ ------------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sales
of shares:
Class A 21,102,636 N/A 42,469,284 15,273,227
Class C 689,610 N/A 3,063,788 4,686,336
Class R 240,267,499 469,226,165 81,814,009 158,370,453
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 14,691 N/A 323,162 105,479
Class C 596 N/A 86,994 25,888
Class R 62,302,396 141,568,061 12,975,133 28,508,956
-------------- -------------- ------------ ------------
324,377,428 610,794,226 140,732,370 206,970,339
-------------- -------------- ------------ ------------
Cost of shares redeemed:
Class A (371,606) N/A (22,430,964) (1,930,617)
Class C (89) N/A (1,835,689) (893,066)
Class R (266,551,462) (490,742,684) (97,159,661) (165,891,052)
-------------- -------------- ------------ ------------
(266,923,157) (490,742,684) (121,426,314) (168,714,735)
-------------- -------------- ------------ ------------
Net increase in net
assets derived from
Fund share
transactions 57,454,271 120,051,542 19,306,056 38,255,604
-------------- -------------- ------------ ------------
Net increase in net
assets 93,857,124 41,171,400 33,927,028 8,864,278
Net assets at beginning
of period 2,741,178,099 2,700,006,699 754,778,207 745,913,929
-------------- -------------- ------------ ------------
Net assets at end of
period $2,835,035,223 $2,741,178,099 $788,705,235 $754,778,207
-------------- -------------- ------------ ------------
Balance of undistributed
net investment income
at end
of period $ 2,530,527 $ 2,133,643 $ 3,458 $ 189,790
-------------- -------------- ------------ ------------
</TABLE>
N/A - Muni Bond was not authorized to issue Class A Shares or Class C Shares
before June 13, 1995.
See accompanying notes to financial statements.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At August 31, 1995, the nationally diversified Funds covered
in this report (the "Funds") are Nuveen Municipal Bond Fund
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. The Funds
issue shares of each of their classes at a price equal to net
assest value of such classes plus the appropriate front-end
sales charge, if any.
Municipal Bond was originally incorporated in Maryland on
October 8, 1976 and reorganized as a Massachusetts business
trust at the close of business on June 12, 1995. Insured
Municipal Bond was incorporated in Minnesota on July 11,
1986.
The Funds are registered under the Investment Company Act of
1940 as open-end, diversified management investment
companies.
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/Trustees.
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 August 31, 1995, Insured Municipal Bond had
purchase commitments of $3,476,729. Municipal Bond had no
such purchase commitments.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Interest Income Interest income is determined on the basis of interest
accrued, adjusted for amortization of premiums and accretion
of discounts on long-term debt securities when required for
federal income tax purposes.
Dividends and 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.
40
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
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.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Flexible Sales Charge
Effective September 6, 1994 for Insured Municipal Bond and
Program June 13, 1995 for Municipal Bond, both Funds commenced
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.
Effective June 13, 1995, for both Funds, an investor
purchasing Class "C" Shares agrees to pay a contingent
deferred sales charge ("CDSC") of 1% if Class "C" Shares are
redeemed within 12 months of purchase.
Prior to the offering of Class "A" and Class "C" Shares, the
shares outstanding for both Funds 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.
Derivative Financial
In October 1994, the Financial Accounting Standards Board
Instruments (FASB) issued Statement of Financial Accounting Standards No.
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 six months ended August 31, 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.
42
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
2. EXPENSE ALLOCATION
Expenses of the Funds 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. Effective August 1, 1995, the Funds adopted a
multiple class plan pursuant to Rule 18f-3 under the
Investment Company Act of 1940 and now designate class
specific expenses to include Rule 12b-1 distribution and
service fees, and other expenses incurred for services
received by a class that differ in either amount of kind. A
breakdown of the class specific expenses for the six months
ended August 31, 1995, are as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- --------------------------------------------------------------------------
<S> <C> <C>
12b-1 distribution and service fees:
Class A $ 3,543 $ 28,110
Class C 639 23,908
Shareholders' servicing agent fees and expenses:
Class A 729 18,022
Class C 82 1,093
Class R 914,407 247,643
Shareholders' reports-printing and mailing expenses:
Class A 1,275 1,019
Class C 119 66
Class R 190,481 123,497
Federal and state registration fees:
Class A 2,483 3,958
Class C 276 1,019
Class R 89,323 23,054
Professional fees:
Class R 9,834 --
</TABLE>
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. FUND SHARES
Transactions in shares were as follows:
<TABLE>
<CAPTION>
MUNI BOND INS. MUNI BOND
- -----------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
8/31/95 2/28/95 8/31/95 2/28/95
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 2,333,588 N/A 4,032,086 1,538,119
Class C 75,897 N/A 292,071 474,253
Class R 25,951,722 52,970,376 7,802,783 15,709,700
Shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized
gains from investment
transactions:
Class A 1,621 N/A 30,693 10,686
Class C 66 N/A 8,354 2,644
Class R 5,985,405 15,973,465 1,288,639 2,822,384
----------- ----------- ----------- -----------
34,348,299 68,943,841 13,454,626 20,557,786
----------- ----------- ----------- -----------
Shares redeemed:
Class A (41,013) N/A (2,115,834) (193,293)
Class C (10) N/A (174,938) (90,862)
Class R (27,935,879) (55,355,782) (9,275,518) (16,561,539)
----------- ----------- ----------- -----------
(27,976,902) (55,355,782) (11,566,290) (16,845,694)
----------- ----------- ----------- -----------
Net increase 6,371,397 13,588,059 1,888,336 3,712,092
----------- ----------- ----------- -----------
</TABLE>
N/A - Muni Bond was not authorized to issue Class A Shares or Class C Shares
before June 13, 1995.
44
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
4. DISTRIBUTIONS TO SHAREHOLDERS
On September 8, 1995, the Funds declared dividend
distributions from their ordinary income which were paid on
October 2, 1995, to shareholders of record on September 8,
1995, as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ---------------------------------------
<S> <C> <C>
Dividend per share:
Class A $.0410 $.0455
Class C .0355 .0385
Class R .0430 .0475
------ ------
</TABLE>
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in
municipal securities and temporary municipal investments for
the six months ended August 31, 1995, were as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ----------------------------------------------------------------
<S> <C> <C>
PURCHASES
Investments in municipal securities $146,869,792 $108,242,266
Temporary municipal investments 237,705,000 142,000,000
SALES
Investments in municipal securities 139,977,618 83,977,900
Temporary municipal investments 204,005,000 142,000,000
------------ ------------
</TABLE>
At August 31, 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, the Fund's last fiscal year end,
Insured Municipal 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.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at August 31, 1995, were as
follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ---------------------------------------------------------
<S> <C> <C>
Gross unrealized:
Appreciation $134,114,260 $38,354,032
Depreciation (17,844,413) (6,197,253)
------------ -----------
Net unrealized appreciation $116,269,847 $32,156,779
------------ -----------
</TABLE>
46
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
7. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements 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>
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 Municipal Bond and .975 of 1% of the average daily net
asset value of Insured Municipal Bond. The Adviser may also
voluntarily agree to reimburse additional expenses from time
to time, which may be voluntarily terminated at any time at
its discretion.
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/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive
remuneration for their services to the Funds from the
Adviser.
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
8. COMPOSITION OF NET ASSETS
At August 31, 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 is
as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
Capital paid-in $2,711,803,776 $756,256,969
Balance of undistributed net investment income 2,530,527 3,458
Undistributed net realized gain from investment
transactions 4,431,073 288,029
Net unrealized appreciation of investments 116,269,847 32,156,779
-------------- ------------
Net assets $2,835,035,223 $788,705,235
-------------- ------------
Authorized Shares:
Class A Unlimited 340,000,000
Class C Unlimited 460,000,000
Class R Unlimited 200,000,000
-------------- ------------
</TABLE>
48
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At August 31,
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 13% 22%
Electric Utilities 19 4
Housing Facilities 15 1
Water/Sewer Facilities 8 12
Educational Facilities 1 8
Transportation 6 4
Pollution Control 5 4
Lease Rental Facilities 2 5
Other 8 8
General Obligation Bonds 7 18
Escrowed Bonds 16 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 or escrow, however,
does not guarantee the market value of the municipal
securities or the value of the Funds' shares.
75% of the temporary investments in short-term municipal
securities owned by Municipal Bond have credit enhancements
(letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions.
For additional information regarding each investment
security, refer to the Portfolio of Investments of each Fund.
49
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
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
- -----------------------------------------------------------------------------------------------
CLASS A
6/13/95 to 8/31/95 $9.150 $.102+ $(.060) $(.082) $ --
CLASS C
6/13/95 to 8/31/95 9.150 .088+ (.058) (.070) --
CLASS R
6 mos. ended 8/31/95 9.000 .259 .119 (.258) --
Year ended 2/28,
1995 9.280 .515 (.209) (.511) (.075)
1994 9.450 .519 (.075) (.516) (.098)
1993 9.080 .555 .414 (.544) (.055)
5 mos. ended 2/29/92 9.040 .239 .080 (.239) (.040)
Year ended 9/30,
1991 8.650 .579 .438 (.589) (.038)
1990 8.730 .596 (.080) (.596) --
1989 8.520 .597 .239 (.597) (.029)
1988 8.020 .596 .536 (.596) (.036)
1987 8.780 .598 (.614) (.598) (.146)
1986 7.830 .595 1.162 (.595) (.212)
1985 7.180 .586 .650 (.586) --
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes on page 52.
50
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Net asset value Total return on
end of period net asset value++
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
<S> <C>
$9.110 .46%
9.110 .33
9.120 4.25
9.000 3.60
9.280 4.79
9.450 11.04
9.080 3.56
9.040 12.15
8.650 6.04
8.730 10.07
8.520 14.50
8.020 (.39)
8.780 23.02
7.830 17.73
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Ratios/supplemental data
- --------------------------------------------------------------------------------------------------
Ratio of net Ratio of net
Ratio of investment Ratio of investment
expenses to income expenses to income
Net assets average to average average to average
end of period net assets before net assets before net assets after net assets after Portfolio
(in thousands) reimbursement reimbursement reimbursement+ reimbursement+ turnover rate
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 20,907 1.11%* 4.92%* .84%* 5.19%* 5%
692 2.29* 3.78* 1.59* 4.48* 5
2,813,436 .57* 5.66* .57* 5.66* 5
2,741,178 .59 5.79 .59 5.79 17
2,700,007 .62 5.49 .62 5.49 15
2,371,669 .61 5.95 .61 5.95 14
1,835,708 .62* 6.24* .62* 6.24* 6
1,661,420 .60 6.48 .60 6.48 10
1,323,623 .62 6.78 .62 6.78 8
1,119,833 .64 6.85 .64 6.85 12
945,361 .65 7.11 .65 7.11 8
764,092 .68 6.85 .68 6.85 16
668,416 .71 6.95 .71 6.95 39
459,627 .73 7.68 .73 7.68 28
- --------------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
- --------------------------------------------------------------------------------
<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>
INS. MUNI BOND
- ----------------------------------------------------------------------------------------------
CLASS A
6 mos. ended 8/31/95 $10.400 $.260+ $ .219 $(.270) $ --
9/7/94 to
2/28/95 10.310 .264+ .115 (.273) (.016)
CLASS C
6 mos. ended 8/31/95 10.310 .234 .188 (.233) --
9/8/94 to
2/28/95 10.290 .227+ .075 (.266) (.016)
CLASS R
6 mos. ended 8/31/95 10.380 .285 .192 (.288) --
Year ended 2/28,
1995 10.810 .573 (.407) (.580) (.016)
1994 10.850 .574 .012 (.565) (.061)
1993 10.030 .591 .880 (.589) (.062)
Year ended 2/29/92 9.690 .612 .425 (.617) (.080)
Year ended 2/28,
1991 9.520 .617 .198 (.611) (.034)
1990 9.350 .627 .262 (.630) (.089)
1989 9.300 .629 .050 (.629) --
Year ended 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, if applicable. See note 7 of Notes to Financial
Statements. During the period 6/13/95-7/31/95 for Muni Bond, the Adviser
voluntarily reimbursed additional expenses to prevent the total expenses from
exceeding .60% of the average daily net asset value of the Fund.
++ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in stock
price per share.
52
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Net asset value Total return on
end of period net asset value++
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
<S> <C>
$10.610 4.65%
10.400 3.84
10.500 4.13
10.310 3.09
10.570 4.65
10.380 1.85
10.810 5.47
10.850 15.24
10.030 11.03
9.690 8.94
9.520 9.73
9.350 7.63
9.300 2.00
9.790 3.31
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Ratios/supplemental data
- --------------------------------------------------------------------------------------------------
Ratio of net Ratio of net
Ratio of investment Ratio of investment
expenses to income expenses to income
Net assets average to average average to average
end of period net assets before net assets before net assets after net assets after Portfolio
(in thousands) reimbursement reimbursement reimbursement+ reimbursement+ turnover rate
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 35,044 .98%* 5.00%* .97%* 5.01%* 11%
14,097 1.27* 5.28* 1.00* 5.55* 25
5,371 1.62* 4.38* 1.62* 4.38* 11
3,979 1.75* 4.83* 1.75* 4.83* 25
748,290 .63* 5.38* .63* 5.38* 11
736,702 .64 5.67 .64 5.67 25
745,914 .65 5.21 .65 5.21 11
567,232 .72 5.68 .72 5.68 20
306,853 .73 6.12 .73 6.12 45
178,931 .80 6.45 .80 6.45 53
111,806 .83 6.49 .83 6.49 78
66,049 .87 6.83 .87 6.83 106
41,330 .88 6.65 .60 6.93+ 88
13,160 3.50* .50* -- 4.00* --
- --------------------------------------------------------------------------------------------------
</TABLE>
53
<PAGE>
[Photo appears here]
For nearly 100 years,
Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
municipal bonds.
Your
investment
partners
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers-Nuveen believes that forging
relationships within these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their
needs in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent financial
planners, to bring the benefits of tax-free investing to you. These advisers are
experts at identifying your needs and recommending the best solutions for your
situation. Together we make a powerful team, helping you create a successful
investment plan that meets your needs today and in the future.
[Nuveen logo appears here]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
OEF1-10.95
[Recycled logo appears here]
