<PAGE>
[NUVEEN LOGO APPEARS HERE]
Nuveen Tax-Free
Money Market Funds
Dependable tax-free
income for generations
TAX-FREE RESERVES
CALIFORNIA
MASSACHUSETTS
NEW YORK
[PHOTO OF COUPLE APPEARS HERE]
SEMIANNUAL REPORT/AUGUST 31, 1995
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
11 Portfolio of investments
22 Statement of net assets
23 Statement of operations
27 Statement of changes in net assets
34 Notes to financial statements
40 Financial highlights
<PAGE>
Dear
shareholder
[PHOTO OF RICHARD J. FRANKE]
"Over time,
municipal bonds
have proven to
be a valuable
and dependable
component of
successful invest-
ment programs."
Over the course of the past year, the interest rate environment--and the Federal
Reserve Board's inflation-fighting actions--have been the subject of many
predictions and the source of some challenges for the investor. On July 6, 1995,
the Fed finally ended its unprecedented series of interest rate increases and
reacted to a slowing economy by making a much-anticipated move to ease the
short-term rate, the first such reduction in nearly three years. Subsequent
meetings of the Fed's Open Market Committee, which controls interest rate
decisions, have not resulted in further rate cuts, but speculation continues
that the Fed will act to reduce rates again later this year.
In this environment, Nuveen's Tax-Free Money Market Funds continued to meet
their objectives, offering you yields that compared favorably with those
available from both tax-exempt and taxable short-term alternatives, combined
with share price stability, daily liquidity, and investment convenience.
On August 31, 1995, the seven-day annualized yield for the funds covered in
this report ranged from 2.94% to 3.19%. To equal these yields, an investor in
the 36% tax bracket would have had to earn at least 4.59% on taxable
alternatives.
Municipal money market funds--and the tax-free income they provide--continue
to be a valuable and dependable short-term vehicle for conservative,
3
<PAGE>
tax-conscious investors. The value and dependability of your municipal
investments are enhanced by the fact that you have chosen a Tax-Free Money
Market Fund managed by Nuveen. We offer a combination of professional
management, award-winning research, and shareholder service that distinguishes
Nuveen as a fund manager.
Nuveen also prides itself on its exceptional service to shareholders. Through
annual and semiannual reports, regular statements, as well as 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. Our educational
reports--covering issues such as credit analyses, tax-free investment
strategies, and tax reform proposals--are available to both you and your adviser
to keep you current on market developments.
As you review the following pages detailing the performance of your money
market fund, I hope you know we appreciate the confidence you have placed in us
and our family of funds. 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
Money Market Funds.
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.
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
5
<PAGE>
[PHOTO OF TOM SPALDING HERE]
Tom Spalding, head
of Nuveen's portfolio
management team,
answers investors'
questions on develop-
ments in the
municipal market.
daily 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 ensure that your tax-
free municipal investments meet your expectations for dependable income and
credit safety.
What impact have interest rates 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 significant increase in the rate of inflation.
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. 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.
6
<PAGE>
A number of fund
managers have
encountered problems
recently related to
the use of derivative
securities. Do you use
derivatives in your
portfolios?
Over the last year, participants in the financial services industry, including
securities dealers, underwriters and investment advisers, received much
attention in the press relating to the use of certain types of derivative
financial instruments in the management of portfolios, including those of mutual
funds. There are many different types of derivative investments available in the
market today, including those derivatives whose market values respond to
interest rate changes with greater volatility than do others. In general,
derivatives used to speculate on the future course of interest rates pose the
greatest risk, while derivatives used for hedging purposes present less risk
and, if used properly, can often reduce the probability of loss (while
sacrificing upside potential). Synthetic money market securities generally
present no greater risk to investors than ordinary money market securities.
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
period ended August 31, 1995, other than a limited amount of synthetic money
market securities.
7
<PAGE>
NUVEEN TAX-FREE
RESERVES, INC.
Tax-Free Reserves
Shareholders enjoyed attractive tax-free dividends over the past 12 months.
During the period, the Fund's 30-day annualized yield rose from 2.59% to 3.12%.
[GRAPH APPEARS HERE]
AVERAGE 30-DAY YIELD
9/94 = 2.59
2.5100
11/94 = 2.84
3.34
1/95 = 2.86
3.24
3/95 = 3.25
3.5
5/95 = 3.66
3.23
7/95 = 3.02
3.07
FUND HIGHLIGHTS 8/31/95
Current 7-day SEC yield on NAV 3.11%
Taxable-equivalent yield on NAV* 4.86%
Federal tax rate 36.0%
Total net assets ($000) 332,571
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 CALIFORNIA TAX-FREE
MONEY MARKET FUND
California
Shareholders enjoyed attractive tax-free dividends over the past 12 months.
During the period, the Fund's 30-day annualized yield rose from 2.71% to 3.27%.
[GRAPH APPEARS HERE]
AVERAGE 30-DAY YIELD
9/94 = 2.71
2.56
11/94 = 2.96
3.68
1/95 = 3.14
3.41
3/95 = 3.31
3.62
5/95 = 3.83
3.36
7/95 = 3.01
3.27
FUND HIGHLIGHTS 8/31/95
Current 7-day SEC yield on NAV 3.19%
Taxable-equivalent yield on NAV* 5.55%
Combined state and federal tax rate 42.5%
Total net assets ($000) 155,896
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.
8
<PAGE>
NUVEEN MASSACHUSETTS TAX-FREE
MONEY MARKET FUND
Massachusetts
Shareholders enjoyed attractive tax-free dividends over the past 12 months.
During the period, the Fund's 30-day annualized yield rose from 2.62% to 3.07%.
[GRAPH APPEARS HERE]
Average 30-Day Yield
9/94 2.62
2.63
11/94 2.88
3.42
1/95 2.92
3.24
3/95 3.16
3.39
5/95 3.62
3.21
7/95 2.98
3.07
FUND HIGHLIGHTS 8/31/95
Current 7-day SEC yield on NAV 3.13%
Taxable-equivalent yield on NAV* 5.54%
Combined state and federal tax rate 43.5%
Total net assets ($000) 57,593
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 NEW YORK TAX-FREE
MONEY MARKET FUND
New York
Shareholders enjoyed attractive tax-free dividends over the past 12 months.
During the period, the Fund's 30-day annualized yield rose from 2.55% to 3.06%.
[GRAPH APPEARS HERE]
Average 30-Day Yield
9/94 2.55
2.44
11/94 2.82
3.31
1/95 2.67
3.23
3/95 3.19
3.75
5/95 3.67
3.19
7/95 2.87
3.06
FUND HIGHLIGHTS 8/31/95
Current 7-day SEC yield on NAV 2.94%
Taxable-equivalent yield on NAV* 4.98%
Combined state and federal tax rate 41.0%
Total net assets ($000) 30,233
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>
* An investor subject to the indicated income
tax rate would need to receive this return
from a fully taxable investment to equal the
stated 7-day annualized yield on NAV.
10
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS AUGUST 31, 1995
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
ALABAMA - 3.5%
$ 7,215,000 Anniston Industrial Development Board
(Union Foundry Company), Variable Rate
Demand Bonds, 3.700%, 6/01/05+ VMIG-1 $ 7,215,000
4,400,000 Birmingham Medical Clinic Board
(University of Alabama Health Services
Foundation), Variable Rate Demand Bonds,
3.500%, 12/01/26+ A-1+ 4,400,000
- -------------------------------------------------------------------------------
ARIZONA - 0.9%
2,900,000 Mesa, Arizona Municipal Development
Corporation, Special Tax Bonds, Series
1985, Commercial Paper, 3.750%, 10/16/95 VMIG-1 2,900,000
- -------------------------------------------------------------------------------
ARKANSAS - 4.3%
3,100,000 Arkansas Hospital Equipment Finance
Authority (Washington Regional Medical
Center), Variable Rate Demand Bonds,
3.760%, 10/01/98+ VMIG-1 3,100,000
11,000,000 University of Arkansas--Board of Trustees
(UAMS Campus-Series 1994), Variable Rate
Demand Bonds, 3.600%, 12/01/19+ VMIG-1 11,000,000
- -------------------------------------------------------------------------------
CALIFORNIA - 3.0%
5,000,000 California School Cash Reserve Program,
Series 1995 Notes, 4.750%, 7/03/96 MIG-1 5,040,268
5,000,000 Foothill/Eastern Trans Corridor Agency
Toll Road, Series 1995 D, Variable Rate
Demand Bonds, 3.500%, 1/02/35+ A-1 5,000,000
- -------------------------------------------------------------------------------
DELAWARE - 3.0%
9,900,000 New Castle County Economic Development,
Revenue Refunding Bonds
(Henderson/McGuire Partners Project),
Series 1994, Variable Rate Demand Bonds,
3.800%, 8/15/20+ A-1 9,900,000
- -------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.0%
10,100,000 District of Columbia General Obligation,
General Fund Recovery, Variable Rate
Demand Bonds, 4.200%, 6/01/03+ A-1+ 10,100,000
3,210,000 District of Columbia (American University
Project), Variable Rate Demand Bonds,
3.600%, 10/01/15+ VMIG-1 3,210,000
- -------------------------------------------------------------------------------
FLORIDA - 0.9%
3,100,000 Pasco Multi-Family Housing, Carlton Arms
of Magnolia Valley, Series 1985,
Variable Rate Demand Bonds, 3.800%,
12/01/07+ VMIG-1 3,100,000
- -------------------------------------------------------------------------------
GEORGIA - 6.5%
6,500,000 Burke County Development Authority,
Pollution Control (Oglethorpe Power
Company), Adjustable Tender Bonds,
3.700%, 10/26/95 VMIG-1 6,500,000
15,000,000 Fulton County, Georgia Hospital
Authority, Anticipation Certificates
(St. Joseph's Hospital of Atlanta
Project), Commercial Paper, 3.750%,
10/16/95 VMIG-1 15,000,000
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
HAWAII - 1.0%
$ 3,400,000 Hawaii Department of Budget and Finance,
Special Purpose, Floating Rate Demand
Bonds (Adventist Health System),
Variable Rate Demand Bonds, 4.150%,
9/01/99+ A-1 $ 3,400,000
- -------------------------------------------------------------------------------
ILLINOIS - 12.6%
2,400,000 Illinois Development Finance Authority,
Adjustable Rate Pollution Control
(Illinois Power Co.), 1993A, Variable
Rate Demand Bonds, 3.750%, 11/01/28+ VMIG-1 2,400,000
3,700,000 Illinois Development Finance Authority,
Pollution Control
(Diamond-Star Motors Corporation),
Variable Rate Demand Bonds,
3.500%, 12/01/08+ VMIG-1 3,700,000
11,400,000 Illinois Health Facilities Authority
(Victory Health Services Project),
Series 1991, Commercial Paper, 3.600%,
9/14/95 VMIG-1 11,400,000
Chicago O'Hare International Airport
(American Airlines), Variable Rate
Demand Bonds:
2,500,000 3.500%, 12/01/17+ P-1 2,500,000
6,700,000 3.500%, 12/01/17+ VMIG-1 6,700,000
Decatur Water Bonds (New South Water
Treatment), Series 1985, Commercial
Paper:
2,200,000 3.800%, 10/11/95 VMIG-1 2,200,000
4,300,000 3.750%, 10/16/95 VMIG-1 4,300,000
8,700,000 3.800%, 10/20/95 VMIG-1 8,700,000
- -------------------------------------------------------------------------------
INDIANA - 1.8%
6,000,000 Indianapolis Economic Development (Yellow
Freight),
Commercial Paper, 5.500%, 1/15/96 N/R 6,000,000
- -------------------------------------------------------------------------------
IOWA - 2.2%
4,250,000 Iowa School Corporation, Warrant
Certificates, Series 1995-96A
Municipal Note, 4.750%, 6/28/96 MIG-1 4,280,269
2,900,000 Eddyville Pollution Control (Heartland
Lysine Inc.), Variable Rate Demand
Bonds, 4.000%, 11/01/03+ N/R 2,900,000
- -------------------------------------------------------------------------------
KENTUCKY - 7.1%
9,005,000 Hancock County Industrial Development
(Southwire Company Project), Variable
Rate Demand Bonds, 3.800%, 7/01/10+ N/R 9,005,000
14,700,000 Perry County Health Care System
(Appalachian Regional Hospital Inc.
Project), Series 1984, Variable Rate
Demand Bonds,
3.700%, 8/01/14+ VMIG-1 14,700,000
- -------------------------------------------------------------------------------
LOUISIANA - 4.8%
Louisiana Recovery District, Sales Tax,
Variable Rate Demand Bonds:
2,600,000 3.500%, 7/01/97+ VMIG-1 2,600,000
10,500,000 3.500%, 7/01/98+ VMIG-1 10,500,000
3,000,000 Ascension Parish Pollution Control (Shell
Oil Company), Variable Rate Demand
Bonds, 3.300%, 9/01/23+ SP-1+ 3,000,000
</TABLE>
12
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
MASSACHUSETTS - 0.3%
$ 1,000,000 Massachusetts Dedicated Income Tax,
Variable Rate Demand Bonds, 3.200%,
12/01/97+ VMIG-1 $ 1,000,000
- -------------------------------------------------------------------------------
MICHIGAN - 2.6%
7,100,000 Michigan Job Development Authority,
Limited Obligation (Frankenmuth Bavarian
Inn), Variable Rate Demand Bonds,
4.000%, 8/15/15+ A-1 7,100,000
1,650,000 Warren Economic Development Corporation,
Limited Obligation (The Prince Company--
Michigan Division), Variable Rate Demand
Bonds, 4.000%, 11/01/99+ P-1 1,650,000
- -------------------------------------------------------------------------------
MINNESOTA - 4.6%
6,410,000 Bloomington Commercial Development (94th
Street Associates), Variable Rate Demand
Bonds, 3.800%, 12/01/15+ A-1+ 6,410,000
6,430,000 Bloomington Commercial Development (James
Avenue Associates Project), Variable
Rate Demand Bonds, 3.800%, 12/01/15+ A-1+ 6,430,000
2,600,000 St. Paul Housing and Redevelopment
Authority, District Heating, Variable
Rate Demand Bonds, 3.800%, 12/01/12+ A-1 2,600,000
- -------------------------------------------------------------------------------
MISSOURI - 3.8%
5,600,000 Missouri Environmental Improvement and
Energy Resources Authority, Pollution
Control (Union Electric Company),
Commercial Paper, 3.750%, 10/18/95 VMIG-1 5,600,000
7,000,000 Independence Water Utility, Commercial
Paper, 3.850%, 10/13/95 VMIG-1 7,000,000
- -------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.9%
2,900,000 Merrimack County Tax Anticipation Notes,
5.240%, 12/29/95 N/R 2,904,368
- -------------------------------------------------------------------------------
NEW MEXICO - 1.2%
4,100,000 Albuquerque Gross Receipts/Lodgers', Tax
Adjustable Tender, Series 1995, Variable
Rate Demand Bonds, 3.450%, 7/01/23+ VMIG-1 4,100,000
- -------------------------------------------------------------------------------
NORTH CAROLINA - 2.7%
Wake County Industrial Facilities and
Pollution Control Finance Authority,
Series 1990 B, Commercial Paper:
2,400,000 3.750%, 9/14/95 A-1 2,400,000
6,630,000 3.800%, 10/11/95 A-1 6,630,000
- -------------------------------------------------------------------------------
OHIO - 5.6%
Centerville Health Care (Bethany Lutheran
Village Continuing Care Facilities
Expansion Project), Variable Rate Demand
Bonds:
9,200,000 3.700%, 5/01/08+ VMIG-1 9,200,000
3,500,000 3.700%, 11/01/13+ VMIG-1 3,500,000
3,900,000 Franklin County Hospital Facilities
(Traditions at Mill Run), Floating Rate
Demand Bonds, 3.850%, 11/01/14+ N/R 3,900,000
1,900,000 Franklin County (Rickenbacker Holdings,
Inc. Project), Variable Rate Demand
Bonds, 3.650%, 12/01/10+ N/R 1,900,000
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
PENNSYLVANIA - 0.3%
$ 950,000 Chartiers Valley Industrial and
Commercial Development Authority
(Universal Auto), Variable Rate Demand
Bonds, 3.850%, 8/01/00+ N/R $ 950,000
- -------------------------------------------------------------------------------
TENNESSEE - 3.1%
7,400,000 Clarksville Public Building Authority,
Pooled Financing, Series 1994, Variable
Rate Demand Bonds, 3.700%, 6/01/24+ A-1 7,400,000
3,000,000 Montgomery County Public Building
Authority, Pooled Financing, Series
1995, Tennessee Co. Loan Pool, Variable
Rate Demand Bonds, 3.700%, 3/01/25+ A-1 3,000,000
- -------------------------------------------------------------------------------
TEXAS - 5.7%
12,700,000 Austin Combined Utility Systems (Travis
and Williamson Counties), Series A,
Commercial Paper, 3.650%, 9/14/95 A-1+ 12,700,000
4,800,000 Lufkin Health Facilities Development
Corporation (Memorial Medical Center of
East Texas), Variable Rate Demand Bonds,
3.750%, 1/01/18+ A-1 4,800,000
1,500,000 Tarrant County Health Facilities
Corporation (Retirement Cumberland),
Variable Rate Demand Bonds, 3.600%,
1/01/21+ A-1 1,500,000
- -------------------------------------------------------------------------------
UTAH - 2.4%
7,800,000 Emery County Pollution Control, Refunding
Bonds (Pacificorp Project), Series 1991,
Commercial Paper, 3.700%, 9/20/95 A-1+ 7,800,000
- -------------------------------------------------------------------------------
VIRGINIA - 4.3%
Fairfax County Industrial Authority
(Inova Health System Hospitals Project),
Series 1993B, Commercial Paper:
5,000,000 3.750%, 10/10/95 VMIG-1 5,000,000
3,500,000 3.500%, 10/10/95 VMIG-1 3,500,000
2,600,000 Norfolk Industrial Development Authority
(Norfolk, Virginia Beach, Portsmouth),
Floating Rate Industrial Development
Bonds, Variable Rate Demand Bonds,
5.688%, 11/01/04+ N/R 2,600,000
3,300,000 Richmond Industrial Development Authority
(Richmond MSA), Variable Rate Demand
Bonds, 5.688%, 11/01/04+ N/R 3,300,000
- -------------------------------------------------------------------------------
WASHINGTON - 4.9%
5,300,000 Washington Health Care Facilities
Authority (Adventist Health System
West/Walla Walla General), Variable Rate
Demand Bonds, 4.150%, 9/01/09+ A-1 5,300,000
3,300,000 Washington Housing Finance Commission
(Crista Ministries Project), Series
1991B, Variable Rate Demand Bonds,
3.850%, 7/01/11+ VMIG-1 3,300,000
4,700,000 Washington Public Power Supply System
(Nuclear Project 3) Revenue Refunding,
Series 1993-3A2, Variable Rate Demand
Bonds, 3.650%, 7/01/18+ VMIG-1 4,700,000
3,000,000 Washington Housing Finance Commission,
(Mill Plain Crossing Project), Multi-
family Mortgage, Series 1988 Variable
Rate Demand Bonds, 3.700%, 1/01/10+ A-1+ 3,000,000
</TABLE>
14
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
WISCONSIN - 1.2%
$ 4,000,000 Madison Metropolitan School District, Tax
and Revenue Anticipation Promissory
Notes, 4.500%, 2/21/96 N/R $ 4,015,671
- -------------------------------------------------------------------------------
$329,850,000 Total Investments - 99.2% 329,940,576
- -------------------
--------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 2,630,898
- -------------------------------------------------------------------------------
Net Assets - 100% $332,571,474
</TABLE>
- --------------------------------------------------------------------------------
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 5,000,000 California Health Facilities Authority
(Catholic Healthcare West), Series
1995B, Variable Rate Demand Bonds,
3.400%, 7/01/05+ VMIG-1 $ 5,000,000
3,600,000 California Health Facilities Authority
(Sutter Health), Series 1990-A, Variable
Rate Demand Bonds, 3.300%, 3/01/20+ VMIG-1 3,600,000
2,000,000 California Health Facilities Authority
(St. Joseph Health System), Series
1991B, Variable Rate Demand Bonds,
3.200%, 7/01/09+ VMIG-1 2,000,000
5,000,000 California Health Facilities Authority
(St. Francis Memorial Hospital), Series
1993B, Variable Rate Demand Bonds,
3.350%, 11/01/19+ P-1 5,000,000
7,000,000 California Pollution Control Finance
Authority (Pacific Gas and Electric),
Series D 1988, Commercial Paper, 3.800%,
10/24/95 A-1 7,000,000
6,000,000 California Pollution Control Finance
Authority (Shell Oil Company), Variable
Rate Demand Bonds, 3.300%, 10/01/11+ VMIG-1 6,000,000
1,000,000 California Pollution Control Finance
Authority (Shell Oil Company Project),
Variable Rate Demand Bonds, 3.300%,
10/01/08+ VMIG-1 1,000,000
3,000,000 California School Cash Reserve Program,
Series 1995 Notes, 4.750%, 7/03/96 MIG-1 3,024,160
4,075,000 California State Revenue Anticipation
Warrants, 1994 Series C, 5.750%, 4/25/96 Aaa 4,124,393
4,400,000 California Department of Water Resources
(Central Valley Project), Water System
Revenue Bonds, Series N-V1, Variable
Rate Demand Bonds, 3.450%, 12/01/25+ VMIG-1 4,400,000
5,405,000 California Statewide Community
Development Authority, Certificates of
Participation, Series 1993, Variable
Rate Demand Bonds, 3.250%, 12/01/18+ A-1+ 5,405,000
3,250,000 Chico Multi-Family Housing (Sycamore Glen
Project), Series 1995, Variable Rate
Demand Bonds, 3.910%, 4/07/14+ N/R 3,250,000
4,500,000 Contra Costa Multi-Family Mortgage
Revenue Refunding (Delta Square
Project), Series 1990A, Variable Rate
Demand Bonds,
3.550%, 8/01/07+ VMIG-1 4,500,000
5,000,000 Eastern Municipal Water District, Water
and Sewer Revenue Bond, Series 1993B,
Variable Rate Demand Bonds, 3.350%,
7/01/20+ VMIG-1 5,000,000
7,000,000 Foothill/Eastern Transportation Corridor
Agency, Toll Road Revenue Bonds, Series
1995E, Variable Rate Demand Bonds,
3.350%, 1/02/35+ A-1 7,000,000
3,000,000 Hayward Housing Authority, Multi-Family
Mortgage Revenue Refunding, Series 1993A
(Huntwood Terrace), Variable Rate Demand
Bonds, 3.750%, 3/01/27+ A-1 3,000,000
2,500,000 Hillsborough Certificates of
Participation Water & Sewer System
Project Series 1995A, Variable Rate
Demand Bonds,
4.100%, 6/01/15+ A-1 2,500,000
7,000,000 Kern Community College District,
Certificates of Participation, Series
1995, Variable Rate Demand Bonds,
3.650%, 1/01/25+ A-1 7,000,000
3,000,000 City of Long Beach 1994-1995 Tax and
Revenue Anticipation Notes, 4.750%,
9/20/95 MIG-1 3,000,975
3,000,000 Los Angeles County Metropolitan
Transportation Authority, Second
Subordinate Sales Tax Revenue,
Commercial Paper, 3.500%, 9/11/95 A-1 3,000,000
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 3,000,000 Los Angeles County Metropolitan
Transportation Authority, Second
Subordinate Sales Tax Revenue Bonds,
Commercial Paper, 3.800%, 10/30/95 A-1 $ 3,000,000
2,800,000 Monterey County Financing Authority
Revenue Bonds, (Reclamation and
Distribution Project), Series 1995A,
Variable Rate Demand Bonds, 3.600%,
9/01/36+ VMIG-1 2,800,000
7,400,000 Oakland, California Certificates of
Participation, Capital Improvement
Project, Variable Rate Demand Bonds,
3.750%, 12/01/15+ N/R 7,400,000
4,900,000 Orange County Apartment Development
(Monarch Bay Apartments Project),
Variable Rate Demand Bonds, 3.900%,
10/01/07+ A-1+ 4,900,000
3,800,000 Orange County (Robinson Ranch Apartments
Project), Variable Rate Demand Revenue
Bonds, 3.900%, 11/01/08+ VMIG-1 3,800,000
5,000,000 Orange County Apartment Development
(Niguel Summit), Variable Rate Demand
Bonds, 4.250%, 11/01/09+ VMIG-1 5,000,000
7,000,000 Sacramento Municipal District, Series H,
Commercial Paper,
3.550%, 9/12/95 A-1 7,000,000
7,000,000 San Diego Area Local Governments 1995
Pooled Tax and Revenue Anticipation
Notes, 3.770%, 10/18/96 N/R 7,000,000
3,000,000 San Diego Housing Authority, Multi-Family
Housing, Revenue Refunding, Series 1993-
A (Carmel Del Mar Apartments), Variable
Rate Demand Bonds, 3.600%, 12/01/15+ A-1 3,000,000
7,000,000 San Dimas Industrial Development Bonds
(Bausch and Lomb Incorporated), Variable
Rate Demand Bonds, 4.150%, 12/01/15+ N/R 7,000,000
4,900,000 Santa Ana Health Facilities Authority
(Town and Country), Variable Rate Demand
Bonds, 3.250%, 10/01/20+ A-1 4,900,000
1,400,000 Santa Clara County Transit District
Refunding Equipment, Trust Certificates,
Variable Rate Demand Bonds, 3.500%,
6/01/15+ VMIG-1 1,400,000
6,400,000 Torrance Hospital Revenue (Little Company
of Mary Hospital/ Torrance Memorial
Hospital), Variable Rate Demand Bonds,
3.650%, 2/01/22+ A-1 6,400,000
7,000,000 Vista Community Development Commission,
Bond Anticipation Notes, Issue of 1992,
4.500%, 11/01/95 A-1 7,000,000
- -------------------------------------------------------------------------------
$155,330,000 Total Investments - 99.7% 155,404,528
- -------------------
--------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 491,258
- -------------------------------------------------------------------------------
Net Assets - 100% $155,895,786
</TABLE>
- --------------------------------------------------------------------------------
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT DESCRIPTION RATINGS* VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 2,000,000 Massachusetts Bay Transportation Authority,
Commercial Paper,
Series C, 3.700%, 10/20/95 A-1+ $ 2,000,000
2,400,000 Massachusetts Municipal Wholesale Electric
Company, Series 1994, Variable Rate Demand
Bonds, 3.500%, 7/01/19+ A-1+ 2,400,000
2,200,000 Massachusetts General Obligation Notes,
Series 1995A,
4.250%, 6/12/96 MIG-1 2,210,759
500,000 Massachusetts Dedicated Income Tax,
Variable Rate Demand Bonds, 3.200%,
12/01/97+ VMIG-1 500,000
1,200,000 Massachusetts Health and Educational
Facilities Authority (Capital Asset
Program), Series G-1, Variable Rate Demand
Bonds,
3.000%, 1/01/19+ VMIG-1 1,200,000
1,490,000 Massachusetts Health and Educational
Facilities Authority (Newbury College),
Variable Rate Demand Bonds, 3.350%,
11/01/18+ N/R 1,490,000
Massachusetts Health and Educational
Facilities Authority (Harvard University),
Variable Rate Demand Bonds:
1,500,000 3.150%, 2/01/16+ VMIG-1 1,500,000
1,000,000 3.150%, 8/01/17+ VMIG-1 1,000,000
2,400,000 Massachusetts Health and Educational
Facilities Authority (Brigham and Women's
Hospital), Variable Rate Demand Bonds,
3.450%, 7/01/17+ VMIG-1 2,400,000
2,400,000 Massachusetts Health and Educational
Facilities Authority (M. I. T. Project),
Variable Rate Demand Bonds, 3.200%,
7/01/21+ VMIG-1 2,400,000
1,500,000 Massachusetts Industrial Finance Agency
(Jencoat/Levy Realty Trust), Variable Rate
Demand Bonds, 4.188%, 10/06/99+ N/R 1,500,000
1,000,000 Massachusetts Industrial Finance Agency
(Nova Realty Trust 1994 Refunding),
Variable Rate Demand Bonds, 3.500%,
12/01/02+ P-1 1,000,000
2,300,000 Massachusetts Industrial Finance Agency
(Holyoke Water Power Company Project),
Variable Rate Demand Bonds, 3.400%,
5/01/22+ VMIG-1 2,300,000
2,000,000 Massachusetts Health and Educational
Facilities Authority (Community Health
Center Capital Fund), Variable Rate Demand
Bonds, 3.820%, 3/01/15+ A-2 2,000,000
1,000,000 Massachusetts Industrial Finance Agency,
Pollution Control, (New England Power
Company Project), Variable Rate Demand
Bonds, 3.750%, 3/01/18+ A-1 1,000,000
3,310,000 Massachusetts Port Authority, Multimodal
Series 1995A, Variable Rate Demand Bonds,
3.250%, 7/01/15+ VMIG-1 3,310,000
1,000,000 Massachusetts Industrial Finance Agency,
Resource Recovery (Ogden Haverhill),
Variable Rate Demand Bonds, 3.250%,
12/01/06+ VMIG-1 1,000,000
1,900,000 Massachusetts Industrial Finance Agency
(WGBH Educational Foundation Project),
Adjustable Rate Revenue Bonds,
3.550%, 10/01/09+ VMIG-1 1,900,000
1,500,000 Massachusetts Industrial Finance Agency
(The Williston Northampton School),
Variable Rate Demand Bonds, 3.400%,
4/01/24+ N/R 1,500,000
5,350,000 Massachusetts Industrial Finance Agency
(Showa Women's Institute Boston), Variable
Rate Demand Bonds, 3.400%, 3/15/04+ VMIG-1 5,350,000
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT DESCRIPTION RATINGS* VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 665,000 Boston Water and Sewer Commission, Series
1985A, Variable Rate Demand Bonds, 3.400%,
11/01/14+ VMIG-1 $ 665,000
1,500,000 Boston Water and Sewer Commission, Series
1994A, General Revenue (Senior Series),
Variable Rate Demand Bonds, 3.450%,
11/01/24+ VMIG-1 1,500,000
550,000 Cape Cod Regional Transit Authority,
Revenue Anticipation Notes, Unlimited Tax,
4.100%, 7/05/96 N/R 551,981
800,000 Holyoke Pollution Control (Holyoke Water
Power Company Project), Series 1988,
Variable Rate Demand Bonds, 3.400%,
11/01/13+ A-1+ 800,000
1,400,000 Lincoln Bond Anticipation Notes, Unlimited
Tax, 4.000%, 7/05/96 Aa-1 1,403,289
2,200,000 Marlborough Bond Anticipation Notes,
3.750%, 2/29/96 N/R 2,202,541
1,300,000 New Bedford Industrial Development (Cliftex
Corporation), Series 1989, Variable Rate
Demand Bonds, 4.188%, 10/01/97+ N/R 1,300,000
2,000,000 Puerto Rico Commonwealth Public Improvement
Bonds of 1995 (General Obligation Bonds),
P-Float 97, Variable Rate Demand Bonds,
3.600%, 7/01/24+ VMIG-1 2,000,000
2,800,000 Puerto Rico Government Development Bank,
Series 1985, Variable Rate Demand Bonds,
3.200%, 12/01/15+ VMIG-1 2,800,000
2,500,000 Puerto Rico Highway/Transportation
Authority, Series X, Variable Rate Demand
Bonds, 3.200%, 7/01/99+ VMIG-1 2,500,000
1,000,000 Puerto Rico Industrial Medical Educational
and Environmental Authority (Inter
American University of Puerto Rico),
Commercial Paper, 3.650%, 10/16/95 VMIG-1 1,000,000
2,000,000 Waltham Notes, 3.800%, 1/03/96 Aa 2,001,000
700,000 Westfield General Obligation Notes, State
Grant Anticipation Notes, 4.100%, 10/26/95 N/R 700,295
- -------------------------------------------------------------------------------
$57,365,000 Total Investments - 99.6% 57,384,865
- -------------------------------------------------------------------------------
- -------------------
Other Assets Less Liabilities - 0.4% 208,589
- -------------------------------------------------------------------------------
Net Assets - 100% $57,593,454
</TABLE>
- --------------------------------------------------------------------------------
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT DESCRIPTION RATINGS* VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 1,200,000 Erie County Water Authority,
Adjustable/Fixed Rate, Water Works System,
Variable Rate Demand Bonds, 3.250%,
12/01/16+ VMIG-1 $ 1,200,000
1,300,000 Metropolitan Transportation Authority
Commuter Facilities, Variable Rate Demand
Bonds, 3.450%, 7/01/21+ VMIG-1 1,300,000
1,400,000 Metropolitan Transportation Authority
Commuter Facilities, Revenue Anticipation
Notes, 5.500%, 12/14/95 MIG-2 1,404,180
1,400,000 New York City General Obligation Bonds,
Adjustable Rate, Variable Rate Demand
Bonds, 3.400%, 8/15/22+ VMIG-1 1,400,000
1,300,000 New York City General Obligation, Tax
Anticipation Notes, Fiscal 1996 Series A,
4.500%, 2/15/96 MIG-1 1,304,010
300,000 New York City Housing Development
Corporation (Columbus Gardens Project),
Variable Rate Demand Bonds, 3.450%,
2/01/07+ A-1 300,000
1,200,000 New York City Housing Development
Corporation Residential Mortgage Revenue
(East 17th Street), Variable Rate Demand
Bonds, 3.500%, 1/01/23+ A-1 1,200,000
800,000 New York City Industrial Development Agency
(LaGuardia Associates Project), Variable
Rate Demand Bonds, 3.350%, 12/01/15+ A-1 800,000
1,400,000 New York City Trust for Cultural Resources
(Guggenheim Foundation), Variable Rate
Demand Bonds, 3.250%, 12/01/15+ VMIG-1 1,400,000
700,000 Dormitory Authority of the State of New
York (Sloan-Kettering Cancer Center),
Commercial Paper, 3.400%, 9/20/95 A-1 700,000
600,000 Dormitory Authority of the State of New
York (Sloan-Kettering Cancer Center),
Series 1989C, Commercial Paper, 3.400%,
9/20/95 A-1 600,000
400,000 Dormitory Authority of the State of New
York (Sloan-Kettering Cancer Center),
Series 1989C, Commercial Paper, 3.500%,
9/20/95 A-1 400,000
500,000 Dormitory Authority of the State of New
York, Commercial Paper, 3.550%, 11/30/95 A-1 500,000
1,400,000 Dormitory Authority of the State of New
York (St. Francis Center at the Knolls,
Inc.), Variable Rate Demand Bonds, 3.450%,
7/01/23+ VMIG-1 1,400,000
1,400,000 Dormitory Authority of Oxford University,
Press Revenue Bonds (Letter of Credit
Secured), Series 1993, Variable Rate
Demand Bonds, 3.450%, 7/01/23+ VMIG-1 1,400,000
1,400,000 New York State Energy Research and
Development Authority (Central Hudson Gas
and Electric Corporation), Variable Rate
Demand Bonds,
3.350%, 11/01/20+ A-1+ 1,400,000
1,100,000 New York Environmental Facilities
Corporation (General Electric Company),
Commercial Paper, 3.350%, 11/30/95 A-1+ 1,100,000
1,400,000 New York State Housing Finance Agency
(Normandie Court), Variable Rate Demand
Bonds, 3.400%, 5/15/15+ VMIG-1 1,400,000
1,300,000 New York Local Government Assistance
Corporation,
Series 1994B, Variable Interest Rate
Bonds, 3.300%, 4/01/23+ VMIG-1 1,300,000
2,500,000 New York Local Govt Assistance Corp.,
Series 1995E, Variable Interest Rate
Bonds, 3.500%, 4/01/25+ VMIG-1 2,500,000
800,000 New York State Medical Care Facilities
Finance Agency (Lenox Hill Hospital),
Variable Rate Demand Bonds, 3.450%,
11/01/08+ VMIG-1 800,000
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT DESCRIPTION RATINGS* VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 1,400,000 New York State Medical Care Facilities
Finance Agency (Children's Hospital of
Buffalo), Variable Rate Demand Bonds,
3.450%, 11/01/05+ VMIG-1 $ 1,400,000
200,000 Puerto Rico Government Development Bank
Adjustable Refunding Bonds, Series 1985,
Variable Rate Demand Bonds, 3.200%,
12/01/15+ VMIG-1 200,000
1,000,000 Puerto Rico Industrial Medical Educational
and Environmental Authority (Inter
American University of Puerto Rico),
Commercial Paper, 3.650%, 10/16/95 VMIG-1 1,000,000
1,000,000 Suffolk County Tax, Anticipation Notes 1994
(RA Series II),
4.500%, 9/14/95 MIG-1 1,000,142
1,400,000 Triborough Bridge and Tunnel Authority,
Special Obligation, Variable Rate Demand
Bonds, Series 1994, 3.300%, 1/01/24+ MIG-1 1,400,000
1,300,000 Yonkers Industrial Development Agency,
Series 1989 (Civic Facility), Variable
Rate Demand Bonds, 3.550%, 7/01/19+ VMIG-1 1,300,000
- -------------------------------------------------------------------------------
$30,100,000 Total Investments - 99.6% 30,108,332
- -------------------------------------------------------------------------------
- -------------------
Other Assets Less Liabilities - 0.4% 124,249
- -------------------------------------------------------------------------------
Net Assets - 100% $30,232,581
- -------------------------------------------------------------------------------
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
+ 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.
21
<PAGE>
STATEMENT OF NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
RESERVES CA MA NY
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in short-term
municipal securities, at
amortized cost (note 1) $329,940,576 $155,404,528 $57,384,865 $30,108,332
Cash 1,360,374 272,976 104,840 51,675
Receivables:
Interest 1,415,181 775,405 201,801 170,350
Investments sold 1,000,000 -- 100,000 --
Other assets 21,743 21,085 13,732 1,479
------------ ------------ ----------- -----------
Total assets 333,737,874 156,473,994 57,805,238 30,331,836
------------ ------------ ----------- -----------
LIABILITIES
Accrued expenses:
Management fees (note 4) 142,418 53,425 18,641 7,336
Other 133,262 86,434 45,944 13,607
Dividends payable 890,720 438,349 147,199 78,312
------------ ------------ ----------- -----------
Total liabilities 1,166,400 578,208 211,784 99,255
------------ ------------ ----------- -----------
Net assets applicable to
shares outstanding
(note 3) $332,571,474 $155,895,786 $57,593,454 $30,232,581
------------ ------------ ----------- -----------
Shares outstanding:
Service Plan series -- 57,643,407 29,090,441 491,815
Distribution Plan series -- 63,599,083 24,312,037 29,724,099
Institutional series -- 34,653,296 4,190,976 16,667
------------ ------------ ----------- -----------
Total shares outstanding 332,571,474 155,895,786 57,593,454 30,232,581
------------ ------------ ----------- -----------
Net asset value, offering
and redemption price per
share (net assets divided
by shares outstanding) $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ----------- -----------
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
STATEMENT OF OPERATIONS
Six months ended August 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
RESERVES
- -------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $6,927,106
----------
Expenses:
Management fees (note 4) 853,866
12b-1 expense (note 4) 65,320
Shareholders' servicing agent fees and
expenses 244,432
Custodian's fees and expenses 36,106
Directors' fees and expenses (note 4) 1,976
Professional fees 8,890
Shareholders' reports--printing and
mailing expenses 54,920
Federal and state registration fees 27,725
Other expenses 12,376
----------
Total expenses before expense
reimbursement 1,305,611
Expense reimbursement from investment
adviser (note 4) (24,786)
----------
Net expenses 1,280,825
----------
Net investment income 5,646,281
Net gain from investment transactions --
----------
Net increase in net assets from
operations $5,646,281
----------
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
STATEMENT OF OPERATIONS
Six months ended August 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
CALIFORNIA MONEY MARKET
-----------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest
income (note 1) $992,694 $1,278,717 $699,972 $2,971,383
-------- ---------- -------- ----------
Expenses:
Management fees (note 4) 101,516 130,007 71,459 302,982
12b-1 expense (note 4) 14,349 24,023 -- 38,372
Shareholders' servicing
agent fees and expenses 3,731 22,169 235 26,135
Custodian's fees and
expenses 11,022 15,728 9,031 35,781
Directors' fees and
expenses (note 4) 856 1,100 615 2,571
Professional fees 1,785 2,167 1,187 5,139
Shareholders' reports--
printing and mailing
expenses 2,092 10,617 122 12,831
Federal and state
registration fees -- -- -- --
Other expenses 326 1,041 1,766 3,133
-------- ---------- -------- ----------
Total expenses before
expense reimbursement 135,677 206,852 84,415 426,944
Expense reimbursement
from investment adviser
(note 4) (2,353) (28,293) -- (30,646)
-------- ---------- -------- ----------
Net expenses 133,324 178,559 84,415 396,298
-------- ---------- -------- ----------
Net investment income 859,370 1,100,158 615,557 2,575,085
Net gain from investment
transactions -- -- -- --
-------- ---------- -------- ----------
Net increase in net
assets from operations $859,370 $1,100,158 $615,557 $2,575,085
-------- ---------- -------- ----------
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT AUGUST 31, 1995
<TABLE>
<CAPTION>
MASSACHUSETTS MONEY MARKET
-----------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income
(note 1) $496,206 $438,566 $53,978 $988,750
-------- -------- ------- --------
Expenses:
Management fees (note 4) 52,493 46,262 5,718 104,473
12b-1 expense (note 4) 16,141 11,016 -- 27,157
Shareholders' servicing
agent fees and expenses 1,024 17,086 388 18,498
Custodian's fees and
expenses 9,165 11,294 1,144 21,603
Directors' fees and
expenses (note 4) 793 708 88 1,589
Professional fees 3,705 3,198 458 7,361
Shareholders' reports--
printing and mailing
expenses 739 11,512 307 12,558
Federal and state
registration fees 227 310 113 650
Other expenses 1,448 623 139 2,210
-------- -------- ------- --------
Total expenses before
expense reimbursement 85,735 102,009 8,355 196,099
Expense reimbursement from
investment adviser (note
4) (13,409) (38,514) (469) (52,392)
-------- -------- ------- --------
Net expenses 72,326 63,495 7,886 143,707
-------- -------- ------- --------
Net investment income 423,880 375,071 46,092 845,043
Net gain from investment
transactions -- -- -- --
-------- -------- ------- --------
Net increase in net assets
from operations $423,880 $375,071 $46,092 $845,043
-------- -------- ------- --------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
STATEMENT OF OPERATIONS
Six months ended August 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
NEW YORK MONEY MARKET
-----------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income
(note 1) $9,784 $577,738 $319 $587,841
------ -------- ---- --------
Expenses:
Management fees (note 4) 1,026 60,778 33 61,837
12b-1 expense (note 4) 153 6,861 -- 7,014
Shareholders' servicing
agent fees and expenses 360 14,215 11 14,586
Custodian's fees and
expenses 537 32,858 18 33,413
Directors' fees and
expenses (note 4) 23 767 3 793
Professional fees 104 6,135 3 6,242
Shareholders' reports--
printing and mailing
expenses 2,642 18,411 56 21,109
Federal and state
registration fees 447 481 14 942
Other expenses 28 1,186 -- 1,214
------ -------- ---- --------
Total expenses before
expense reimbursement 5,320 141,692 138 147,150
Expense reimbursement from
investment adviser (note
4) (3,899) (58,119) (92) (62,110)
------ -------- ---- --------
Net expenses 1,421 83,573 46 85,040
------ -------- ---- --------
Net investment income 8,363 494,165 273 502,801
Net gain from investment
transactions -- -- -- --
------ -------- ---- --------
Net increase in net assets
from operations $8,363 $494,165 $273 $502,801
------ -------- ---- --------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
STATEMENT OF CHANGES IN NET ASSETSNUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
(Unaudited)
AUGUST 31, 1995
<TABLE>
<CAPTION>
RESERVES
---------------------------------
Six months
ended Year ended
8/31/95 2/28/95
- -------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 5,646,281 $ 8,795,175
Net realized gain (loss) from investment
transactions -- --
------------ ------------
Net increase in net assets from operations 5,646,281 8,795,175
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (5,646,281) (8,795,175)
------------ ------------
COMMON SHARE TRANSACTIONS (at constant net asset
value of $1 per share) (note 1)
Net proceeds from sales of shares 348,643,315 657,011,312
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 5,250,861 7,787,100
------------ ------------
353,894,176 664,798,412
Cost of shares redeemed (372,929,099) (717,393,211)
------------ ------------
Net increase (decrease) in net assets derived
from Common share transactions (19,034,923) (52,594,799)
Net assets at the beginning of period 351,606,397 404,201,196
------------ ------------
Net assets at the end of period $332,571,474 $351,606,397
------------ ------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
---------------------------------------------
<CAPTION>
CALIFORNIA MONEY MARKET
---------------------------------------------
Six months ended August 31, 1995
---------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 859,370 $ 1,100,158 $ 615,557 $ 2,575,085
Net realized gain (loss)
from investment
transactions -- -- -- --
----------- ----------- ----------- ------------
Net increase in net
assets from operations 859,370 1,100,158 615,557 2,575,085
----------- ----------- ----------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1) (859,370) (1,100,158) (615,557) (2,575,085)
----------- ----------- ----------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset
value of $1 per share)
(note 1)
Net proceeds from sales
of shares 67,274,680 52,710,345 82,623,328 202,608,353
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 724,439 819,580 3,084 1,547,103
----------- ----------- ----------- ------------
67,999,119 53,529,925 82,626,412 204,155,456
Cost of shares redeemed (52,127,630) (57,088,021) (98,745,505) (207,961,156)
----------- ----------- ----------- ------------
Net increase (decrease)
in net assets derived
from Common share
transactions 15,871,489 (3,558,096) (16,119,093) (3,805,700)
Net assets at the
beginning of period 41,771,918 67,157,179 50,772,389 159,701,486
----------- ----------- ----------- ------------
Net assets at the end of
period $57,643,407 $63,599,083 $34,653,296 $155,895,786
----------- ----------- ----------- ------------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
CALIFORNIA MONEY MARKET
-----------------------------------------------
Year ended February 28, 1995
-----------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,628,687 $ 1,814,647 $ 1,366,100 $ 5,809,434
Net realized gain (loss)
from investment
transactions (11,576) (4,489) (2,299) (18,364)
------------ ------------ ------------ ------------
Net increase in net
assets from operations 2,617,111 1,810,158 1,363,801 5,791,070
------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1) (2,617,111) (1,810,158) (1,363,801) (5,791,070)
------------ ------------ ------------ ------------
COMMON SHARE TRANSACTIONS
(at constant net asset
value of $1 per share)
(note 1)
Net proceeds from sale of
shares 208,318,412 113,315,156 247,997,081 569,630,649
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 2,983,786 1,322,451 7,041 4,313,278
------------ ------------ ------------ ------------
211,302,198 114,637,607 248,004,122 573,943,927
Cost of shares redeemed (584,768,062) (119,860,860) (229,530,966) (934,159,888)
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets derived
from Common share
transactions (373,465,864) (5,223,253) 18,473,156 (360,215,961)
Net assets at the
beginning of year 415,237,782 72,380,432 32,299,233 519,917,447
------------ ------------ ------------ ------------
Net assets at the end of
year $ 41,771,918 $ 67,157,179 $50,772,389 $159,701,486
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
MASSACHUSETTS MONEY MARKET
--------------------------------------------
Six months ended August 31, 1995
--------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 423,880 $ 375,071 $ 46,092 $ 845,043
Net realized gain (loss)
from investment
transactions -- -- -- --
----------- ----------- ---------- -----------
Net increase in net
assets from operations 423,880 375,071 46,092 845,043
----------- ----------- ---------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1) (423,880) (375,071) (46,092) (845,043)
----------- ----------- ---------- -----------
COMMON SHARE TRANSACTIONS
(at constant net asset
value of $1 per share)
(note 1)
Net proceeds from sales
of shares 38,938,814 11,320,230 9,472,209 59,731,253
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 431,748 366,730 13,943 812,421
----------- ----------- ---------- -----------
39,370,562 11,686,960 9,486,152 60,543,674
Cost of shares redeemed (38,011,673) (11,612,103) (6,330,736) (55,954,512)
----------- ----------- ---------- -----------
Net increase (decrease)
in net assets derived
from Common share
transactions 1,358,889 74,857 3,155,416 4,589,162
Net assets at the
beginning of period 27,731,552 24,237,180 1,035,560 53,004,292
----------- ----------- ---------- -----------
Net assets at the end of
period $29,090,441 $24,312,037 $4,190,976 $57,593,454
----------- ----------- ---------- -----------
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
MASSACHUSETTS MONEY MARKET
----------------------------------------------
Year ended February 28, 1995
----------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,007,902 $ 699,762 $ 101,590 $ 1,809,254
Net realized gain (loss)
from investment
transactions (1,430) (1,013) (60) (2,503)
------------ ----------- ----------- ------------
Net increase in net
assets from operations 1,006,472 698,749 101,530 1,806,751
------------ ----------- ----------- ------------
DISTRIBUTIONS TO SHARE-
HOLDERS (note 1) (1,006,472) (698,749) (101,530) (1,806,751)
------------ ----------- ----------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset
value of $1 per share)
(note 1)
Net proceeds from sales
of shares 126,292,160 26,877,207 10,226,869 163,396,236
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 982,397 655,827 5,596 1,643,820
------------ ----------- ----------- ------------
127,274,557 27,533,034 10,232,465 165,040,056
Cost of shares redeemed (138,119,127) (31,068,859) (12,602,539) (181,790,525)
------------ ----------- ----------- ------------
Net increase (decrease)
in net assets derived
from Common share
transactions (10,844,570) (3,535,825) (2,370,074) (16,750,469)
Net assets at the
beginning of year 38,576,122 27,773,005 3,405,634 69,754,761
------------ ----------- ----------- ------------
Net assets at the end of
year $ 27,731,552 $24,237,180 $ 1,035,560 $ 53,004,292
------------ ----------- ----------- ------------
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
NEW YORK MONEY MARKET
------------------------------------------
6 months ended August 31, 1995
------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 8,363 $ 494,165 $ 273 $ 502,801
Net realized gain (loss)
from investment
transactions -- -- -- --
-------- ----------- ------- -----------
Net increase in net
assets from operations 8,363 494,165 273 502,801
-------- ----------- ------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1) (8,363) (494,165) (273) (502,801)
-------- ----------- ------- -----------
COMMON SHARE
TRANSACTIONS (at
constant net asset
value of $1 per share)
(note 1)
Net proceeds from sales
of shares 185,389 7,563,542 -- 7,748,931
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 6,966 474,916 -- 481,882
-------- ----------- ------- -----------
192,355 8,038,458 -- 8,230,813
Cost of shares redeemed (340,613) (8,112,031) -- (8,452,644)
-------- ----------- ------- -----------
Net increase (decrease)
in net assets derived
from Common share
transactions (148,258) (73,573) -- (221,831)
Net assets at the
beginning of period 640,073 29,797,672 16,667 30,454,412
-------- ----------- ------- -----------
Net assets at the end of
period $491,815 $29,724,099 $16,667 $30,232,581
-------- ----------- ------- -----------
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
<TABLE>
<CAPTION>
NEW YORK MONEY MARKET
--------------------------------------------
Year ended February 28, 1995
--------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 17,057 $ 692,514 $ 385 $ 709,956
Net realized gain (loss)
from investment
transactions -- -- -- --
---------- ----------- ------- -----------
Net increase in net
assets from operations 17,057 692,514 385 709,956
---------- ----------- ------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1) (17,057) (692,514) (385) (709,956)
---------- ----------- ------- -----------
COMMON SHARE TRANSACTIONS
(at constant net asset
value of $1 per share)
(note 1)
Net proceeds from sales
of shares 1,126,675 16,626,815 -- 17,753,490
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 15,591 626,707 -- 642,298
---------- ----------- ------- -----------
1,142,266 17,253,522 -- 18,395,788
Cost of shares redeemed (1,058,955) (15,341,900) -- (16,400,855)
---------- ----------- ------- -----------
Net increase (decrease)
in net assets derived
from Common share
transactions 83,311 1,911,622 -- 1,994,933
Net assets at the
beginning of year 556,762 27,886,050 16,667 28,459,479
---------- ----------- ------- -----------
Net assets at the end of
year $ 640,073 $29,797,672 $16,667 $30,454,412
---------- ----------- ------- -----------
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
At August 31, 1995, the money market Funds (the "Funds")
covered in this report are Nuveen Tax-Free Reserves, Inc., a
nationally diversified Fund, Nuveen California Tax-Free Fund,
Inc. (comprised of the Nuveen California Tax-Free Money
Market Fund) and Nuveen Tax-Free Money Market Fund, Inc.
(comprised of the Nuveen Massachusetts and New York Tax-Free
Money Market Funds).
The Funds are registered under the Investment Company Act of
1940 as open-end, diversified management investment
companies.
Each Fund invests in tax-exempt money market instruments.
Shares of the state Funds are issued in three series: (1) the
"Service Plan" series intended for purchase by or through
banks and other organizations who have agreed to perform
certain services for their customers who are shareholders of
this series of the Fund, (2) the "Distribution Plan" series
intended for purchase by or through securities dealers who
have agreed to perform distribution and administrative
services for their customers who are shareholders of this
series of the Fund and (3) the "Institutional" series
intended for purchase by trustees, bank trust departments and
investment bankers or advisers.
Each Fund issues its own shares, at net asset value which the
Fund will seek to maintain at $1.00 per share without sales
charge.
The following is a summary of significant accounting policies
followed by the Funds in the preparation of their financial
statements in accordance with generally accepted accounting
principles.
Securities Investments in each of the Funds consist of short-term
Valuation municipal securities maturing within one year from the date
of acquisition. Securities with a maturity of more than one
year in all cases have variable rate and demand features
qualifying them as short-term securities and are traded and
valued at amortized cost. On a dollar-weighted basis, the
average maturity of all such securities must be 90 days or
less (at August 31, 1995, the dollar-weighted average life
was 29 days for Reserves, 24 days for California Money
Market, 42 days for Massachusetts Money Market and 23 days
for New York Money Market).
34
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
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.
The 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, there were no such purchase
commitments in any of the Funds.
Interest Income Interest income is determined on the basis of interest
accrued, adjusted for amortization of premiums and accretion
of discounts.
Dividends and Net investment income, adjusted for realized short-term gains
Distributions and losses on investment transactions, is declared as a
to Shareholders dividend to shareholders of record as of the close of each
business day and payment is made or reinvestment is credited
to shareholder accounts after month-end.
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 income to shareholders.
Therefore, no federal income tax provision is required.
Furthermore, each Fund intends to satisfy conditions which
will enable interest from municipal securities, which is
exempt from regular federal and designated state income taxes
for the California, Massachusetts and New York Money Market
Funds, to retain such tax-exempt status when distributed to
the shareholders of the Funds.
Insurance The Funds have obtained commitments (each, a "Commitment")
Commitments from Municipal Bond Investors Assurance Corporation ("MBIA")
with respect to certain designated bonds held by the Funds
for which credit support is furnished by banks (Approved
Banks) approved by MBIA under its established credit approval
standards. Under the terms of a Commitment, if a Fund were to
determine that certain adverse circumstances relating to the
financial condition of an Approved Bank had occurred, the
Fund could cause MBIA to issue a "while-in-fund" insurance
policy covering the underlying bonds; after time and subject
to further terms and conditions, the
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Fund could obtain from MBIA an "insured-to-maturity"
insurance policy as to the covered bonds. Each type of
insurance policy would insure payment of interest on the
bonds and payment of principal at maturity. Although such
insurance would not guarantee the market value of the bonds
or the value of the Funds' shares, the Funds believe that
their ability to obtain insurance for such bonds under such
adverse circumstances will enable the Funds to hold or
dispose of such bonds at a price at or near their par value.
Derivative In October 1994, the Financial Accounting Standards Board
Financial (FASB) issued Statement of Financial Accounting Standards No.
Instruments 119 Disclosure about Derivative Financial Instruments and
Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain
derivative financial instruments including futures, forward,
swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may
do so in the future, they did not make any such investments
during the six months ended August 31, 1995, other than
occasional purchases of high quality synthetic money market
securities.
2. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment
securities during the six months ended August 31, 1995, were
as follows:
<TABLE>
<CAPTION>
RESERVES CA MA NY
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $584,185,685 $253,932,094 $99,583,977 $41,615,309
Sales and maturities 607,710,000 250,715,000 93,885,000 41,730,000
------------ ------------ ----------- -----------
</TABLE>
At August 31, 1995, the cost of investments owned for federal
income tax purposes was the same as the cost for financial
reporting purposes for all Funds.
36
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
3. COMPOSITION OF NET ASSETS
At August 31, 1995, the Funds had common stock authorized at
$.01 par value per share. The composition of net assets as
well as the number of authorized shares were as follows:
<TABLE>
<CAPTION>
RESERVES CA MA NY
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in:
Service Plan series $ -- $ 57,643,407 $ 29,090,441 $ 491,815
Distribution Plan se-
ries -- 63,599,083 24,312,037 29,724,099
Institutional series -- 34,653,296 4,190,976 16,667
------------- ------------- ------------- -------------
Total $ 332,571,474 $ 155,895,786 $ 57,593,454 $ 30,232,581
------------- ------------- ------------- -------------
Authorized shares 2,000,000,000 2,350,000,000 2,500,000,000 2,500,000,000
------------- ------------- ------------- -------------
</TABLE>
4. 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>
MANAGEMENT FEES
- -------------------------------------------------------------------
AVERAGE DAILY NET ASSET VALUE RESERVES CA, MA, NY
- -------------------------------------------------------------------
<S> <C> <C>
For the first $500,000,000 .5 of 1% .4 of 1%
For the next $500,000,000 .475 of 1 .375 of 1
For net assets over $1,000,000,000 .45 of 1 .35 of 1
</TABLE>
Also, pursuant to a distribution agreement with the Funds,
Nuveen is the distributor or principal underwriter of Fund
shares and pays sales and promotion expenses in connection
with the offering of Fund shares. The Funds have adopted a
Distribution Plan pursuant to Rule 12b-1 of the Investment
Company Act of 1940
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
and a Service Plan pursuant to which the Funds and Nuveen
pay, in equal amounts, fees to securities dealers and service
organizations for services rendered in the distribution of
shares of the Funds or the servicing of shareholder accounts.
For Reserves, total service payments to such securities
dealers and organizations on an annualized basis range from
.1 of 1% to .2 of 1% of the average daily net asset value of
serviced accounts up to $10 million and .3 of 1% for such
assets over $10 million. For the California, Massachusetts
and New York Money Market Funds, total service payments to
such securities dealers and organizations are .25 of 1% per
year of the average daily net asset value of serviced
accounts.
The management fee referred to above 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 and each Fund's share of
service payments under the Distribution and Service Plans,
but excluding interest, taxes, fees incurred in acquiring and
disposing of portfolio securities and, to the extent
permitted, extraordinary expenses) in any fiscal year from
exceeding .75 of 1% of the average daily net asset value of
Reserves, and .55 of 1% of the average daily net asset value
of the California, Massachusetts and New York Money Market
Funds.
The management fee compensates the Adviser for overall
investment advisory and administrative services, and general
office facilities. The Funds pay no compensation directly to
their Directors who are affiliated with the Adviser or to
their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
38
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
5. 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>
RESERVES CA MA NY
- --------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue bonds:
Pollution control facilities 32% 13% 15% 16%
Health care facilities 27 21 16 21
Housing facilities 6 18 -- 10
Electric facilities 5 5 15 --
Transportation 2 4 9 9
Water/Sewer facilities 7 9 4 4
Lease rental facilities -- 9 -- --
Educational facilities 4 -- 7 2
Other 9 14 9 25
General obligation bonds 8 7 25 13
- --------------------------------------------------------
100% 100% 100% 100%
--- --- --- ---
</TABLE>
In addition, certain temporary investments in short-term
municipal securities have credit enhancements (letters of
credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions (95% for
Reserves, 96% for California, 84% for Massachusetts and 84%
for New York).
For additional information regarding each investment
security, refer to the Portfolio of Investments.
39
<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>
RESERVES
- ---------------------------------------------------------------------------------------------
6 months ended
8/31/95 $1.000 $.017* $-- $(.017) $--
Year ended 2/28,
1995 1.000 .025* -- (.025) --
1994 1.000 .018* -- (.018) --
1993 1.000 .023 -- (.023) --
5 months ended 2/29/92 1.000 .015 -- (.015) --
Year ended 9/30,
1991 1.000 .046 -- (.046) --
1990 1.000 .055 -- (.055) --
1989 1.000 .057 -- (.057) --
1988 1.000 .045 -- (.045) --
1987 1.000 .039 -- (.039) --
1986 1.000 .045* -- (.045) --
- ---------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
40
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/supplemental data
---------------------------------------------------------------------------------------
Ratio of Ratio of net
Ratio of net investment Ratio of investment
expenses to income expenses to income
Net assets average to average average to average
Net asset value Total return on end of period net assets before net assets before net assets after net assets after
end of period net asset value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
$1.000 1.66% $332,571 .76%+ 3.29%+ .75%+ 3.30%+
1.000 2.46 351,606 .78 2.40 .75 2.43
1.000 1.84 404,201 .80 1.78 .75 1.83
1.000 2.34 450,746 .74 2.35 .74 2.35
1.000 1.45 477,127 .75+ 3.48+ .75+ 3.48+
1.000 4.57 451,808 .72 4.56 .72 4.56
1.000 5.45 430,206 .73 5.45 .73 5.45
1.000 5.70 390,258 .72 5.69 .72 5.69
1.000 4.52 409,653 .73 4.52 .73 4.52
1.000 3.88 361,044 .73 3.85 .73 3.85
1.000 4.46 272,677 .80 4.34 .75 4.39
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
41
<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>
CA**
- -------------------------------------------------------------------------------------
Six months ended
8/31/95
Service Plan series $1.000 $.017* $-- $(.017) $--
Distribution Plan se-
ries 1.000 .017* -- (.017) --
Institutional series 1.000 .017 -- (.017) --
Year ended
2/28/95
Service Plan series 1.000 .026* -- (.026) --
Distribution Plan se-
ries 1.000 .026* -- (.026) --
Institutional series 1.000 .027 -- (.027) --
Year ended
2/28/94
Service Plan series 1.000 .019 -- (.019) --
Distribution Plan se-
ries 1.000 .019* -- (.019) --
Institutional series 1.000 .021 -- (.021) --
Year ended
2/28/93
Service Plan series 1.000 .023* -- (.023) --
Distribution Plan se-
ries 1.000 .023* -- (.023) --
Institutional series 1.000 .024 -- (.024) --
8 months ended
2/29/92
Service Plan series 1.000 .024* -- (.024) --
Distribution Plan se-
ries 1.000 .024* -- (.024) --
Institutional series 1.000 .025 -- (.025) --
Year ended
6/30/91
Service Plan series 1.000 .047* -- (.047)
Distribution Plan se-
ries 1.000 .047* -- (.047)
Institutional series 1.000 .048 -- (.048)
Year ended
6/30/90++ 1.000 .054* -- (.054) --
6/30/89++ 1.000 .056* -- (.056) --
6/30/88++ 1.000 .043* -- (.043) --
6/30/87++ 1.000 .039* -- (.039) --
3/27/86 to
6/30/86++ 1.000 .011* -- (.011) --
- -------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
42
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/supplemental data
------------------------------------------------------------------------------------------
Net Ratio of net Ratio of net
asset Total return Ratio of investment income Ratio of investment income
value on Net assets expenses to average to average expenses to average to average
end of net asset end of period net assets before net assets before net assets after net assets after
period value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
$1.000 1.71% $57,643 .53%+ 3.37%+ .52%+ 3.38%+
1.000 1.70 63,599 .64+ 3.29+ .55+ 3.38+
1.000 1.74 34,653 .47+ 3.44+ .47+ 3.44+
1.000 2.59 41,772 .59 2.15 .55 2.19
1.000 2.60 67,157 .64 2.47 .55 2.56
1.000 2.69 50,772 .47 2.74 .47 2.74
1.000 1.94 415,238 .53 1.94 .53 1.94
1.000 1.92 72,380 .73 1.74 .55 1.92
1.000 2.07 32,299 .41 2.06 .41 2.06
1.000 2.28 469,812 .57 2.24 .55 2.26
1.000 2.29 80,652 .62 2.19 .55 2.26
1.000 2.36 24,156 .47 2.33 .47 2.33
1.000 2.39 478,886 .56+ 3.53+ .55+ 3.54+
1.000 2.39 91,670 .61+ 3.48+ .55+ 3.54+
1.000 2.45 18,334 .45+ 3.64+ .45+ 3.64+
1.000 4.70 431,590 .57 4.65 .55 4.67
1.000 4.70 90,031 .61 4.61 .55 4.67
1.000 4.80 22,342 .45 4.77 .45 4.77
1.000 5.37 452,465 .59 5.34 .55 5.38
1.000 5.62 362,927 .57 5.68 .55 5.70
1.000 4.28 207,897 .59 4.27 .55 4.31
1.000 3.90 284,956 .63 3.79 .50 3.92
1.000 1.10 80,871 1.48+ 2.73+ .05+ 4.16+
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
43
<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>
MA***
- -------------------------------------------------------------------------------------
Six months ended
8/31/95
Service Plan series $1.000 $.016* $-- $(.016) $--
Distribution Plan se-
ries 1.000 .016* -- (.016) --
Institutional series 1.000 .016* -- (.016) --
Year ended
2/28/95
Service Plan series 1.000 .025* -- (.025) --
Distribution Plan se-
ries 1.000 .025* -- (.025) --
Institutional series 1.000 .026 -- (.026) --
Year ended
2/28/94
Service Plan series 1.000 .018* -- (.018) --
Distribution Plan se-
ries 1.000 .017* -- (.017) --
Institutional series 1.000 .018 -- (.018) --
Year ended
2/28/93
Service Plan series 1.000 .023* -- (.023) --
Distribution Plan se-
ries 1.000 .023* -- (.023) --
Institutional series 1.000 .023* -- (.023) --
10 months ended
2/29/92
Service Plan series 1.000 .032* -- (.032) --
Distribution Plan se-
ries 1.000 .032* -- (.032) --
Institutional series 1.000 .032 -- (.032) --
Year ended
4/30/91
Service Plan series 1.000 .053* -- (.053) --
Distribution Plan se-
ries 1.000 .053* -- (.053) --
Institutional series 1.000 .053 -- (.053) --
Year ended
4/30/90++ 1.000 .057* -- (.057) --
4/30/89++ 1.000 .050* -- (.050) --
4/30/88++ 1.000 .043* -- (.043) --
12/10/86 to
4/30/87++ 1.000 .016* -- (.016) --
- -------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
44
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/supplemental data
-----------------------------------------------------------------------------------------
Net Ratio of net Ratio of net
asset Total return Ratio of investment income Ratio of investment income
value on Net assets expenses to average to average expenses to average to average
end of net asset end of period net assets before net assets before net assets after net assets after
period value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
$1.000 1.63% $29,090 .65%+ 3.12%+ .55%+ 3.22%+
1.000 1.63 24,312 .88+ 2.90+ .55+ 3.23+
1.000 1.64 4,191 .58+ 3.19+ .55+ 3.22+
1.000 2.53 27,732 .61 2.49 .55 2.55
1.000 2.53 24,237 .82 2.28 .55 2.55
1.000 2.61 1,036 .47 2.63 .47 2.63
1.000 1.77 38,576 .55 1.88 .52 1.91
1.000 1.74 27,773 .76 1.67 .55 1.88
1.000 1.80 3,406 .49 1.93 .49 1.93
1.000 2.33 40,214 .73 2.16 .55 2.34
1.000 2.33 27,993 .82 2.07 .55 2.34
1.000 2.34 5,325 .58 2.31 .55 2.34
1.000 3.22 61,476 .62+ 3.73+ .55+ 3.80+
1.000 3.22 34,509 .72+ 3.63+ .55+ 3.80+
1.000 3.24 8,917 .53+ 3.82+ .53+ 3.82+
1.000 5.30 37,979 .68 5.12 .55 5.25
1.000 5.30 33,809 .76 5.04 .55 5.25
1.000 5.30 14,973 .54 5.26 .54 5.26
1.000 5.70 53,631 .74 5.48 .55 5.67
1.000 5.00 31,319 .76 4.97 .55 5.18
1.000 4.29 35,614 .75 4.03 .48 4.30
1.000 1.60 12,371 3.02+ 1.40+ .06+ 4.36+
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
45
<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>
NY***
- ------------------------------------------------------------------------------------
Six months ended
8/31/95
Service Plan series $1.000 $.016* $-- $(.016) $--
Distribution Plan
series 1.000 .016* -- (.016) --
Institutional series 1.000 .016* -- (.016) --
Year ended
2/28/95
Service Plan series 1.000 .024* -- (.024) --
Distribution Plan
series 1.000 .024* -- (.024) --
Institutional series 1.000 .023* -- (.023) --
Year ended
2/28/94
Service Plan series 1.000 .015* -- (.015) --
Distribution Plan
series 1.000 .015* -- (.015) --
Institutional series 1.000 .015* -- (.015) --
Year ended
2/28/93
Service Plan series 1.000 .020* -- (.020) --
Distribution Plan
series 1.000 .020* -- (.020) --
Institutional series 1.000 .020* -- (.020) --
10 months ended
2/29/92
Service Plan series 1.000 .029* -- (.029) --
Distribution Plan
series 1.000 .029* -- (.029) --
Institutional series 1.000 .030* -- (.030) --
Year ended
4/30/91
Service Plan series 1.000 .047* -- (.047) --
Distribution Plan
series 1.000 .047* -- (.047) --
Institutional series 1.000 .047* -- (.047) --
Year ended
4/30/90++ 1.000 .054* -- (.054) --
4/30/89++ 1.000 .050* -- (.050) --
4/30/88++ 1.000 .041* -- (.041) --
12/10/86 to
4/30/87++ 1.000 .015* -- (.015) --
- ------------------------------------------------------------------------------------
</TABLE>
* Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser, if applicable. See note 4 of Notes to Financial
Statements.
** Effective for the fiscal year ended June 30, 1991, and thereafter, the Fund
has presented the above per share data by series.
*** Effective for the fiscal year ended April 30, 1991, and thereafter, the
Fund has presented the above per share data by series.
+ Annualized.
++ Represents combined per share data and ratios for the Service Plan series,
Distribution Plan series and Institutional series.
46
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/supplemental data
------------------------------------------------------------------------------------------
Net Ratio of net Ratio of net
asset Total return Ratio of investment income Ratio of investment income
value on Net assets expenses to average to average expenses to average to average
end of net asset end of period net assets before net assets before net assets after net assets after
period value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
$1.000 1.64% $ 492 2.07%+ 1.73%+ .55%+ 3.25%+
1.000 1.64 29,724 .93+ 2.86+ .55+ 3.24+
1.000 1.64 17 1.64+ 2.16+ .55+ 3.25+
1.000 2.36 640 .95 1.98 .55 2.38
1.000 2.37 29,798 .79 2.14 .55 2.38
1.000 2.28 17 2.14 .79 .55 2.38
1.000 1.51 557 1.49 .69 .55 1.63
1.000 1.51 27,886 .78 1.40 .55 1.63
1.000 1.51 17 4.60 (2.42) .55 1.63
1.000 2.02 529 1.17 1.42 .55 2.04
1.000 2.02 34,827 .78 1.81 .55 2.04
1.000 2.02 17 19.33 (16.59) .55 2.19
1.000 2.94 1,934 .87+ 3.19+ .55+ 3.51+
1.000 2.94 45,259 .71+ 3.35+ .55+ 3.51+
1.000 2.97 17 11.89+ (7.83)+ .55+ 3.51+
1.000 4.73 1,653 .88 4.39 .55 4.72
1.000 4.73 41,446 .69 4.58 .55 4.72
1.000 4.73 17 .62 4.65 .55 4.72
1.000 5.36 41,602 .71 5.18 .55 5.34
1.000 4.95 30,262 .86 4.74 .55 5.05
1.000 4.10 17,016 1.03 3.54 .50 4.07
1.000 1.50 4,134 4.20+ .05+ .05+ 4.20+
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
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Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
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Nuveen also works closely with financial advisers around the country,
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