<PAGE>
NUVEEN
Money Market
Funds
February 28, 1999
Annual Report
Dependable, tax-free income
to help you keep more of
what you earn.
[PHOTO APPEARS HERE]
Reserves
California
Massachusetts
New York
<PAGE>
Dear Shareholder
[Photo of Timothy R. Schwertfeger appears here]
Timothy R. Schwertfeger
Chairman of the Board
Wealth takes
a lifetime
to build.
Once achieved,
it should be
preserved.
I am pleased to report on the performance of the four Nuveen Tax-Free Money
Market Funds over the past 12 months ended February 28, 1999. Given the market
volatility of the past year, the Funds' conservative investment approach
provided the financial security and stability you have come to expect from
Nuveen Money Market Funds.
The Year in Review
The past 12 months were marked by periods of market volatility both at home and
abroad, as the financial crisis that began in Asia spread to emerging markets
and impacted economies around the globe. Investors responded to market
uncertainties by seeking a haven in more conservative investments, such as
municipal bond funds. Finally, to avert a potential domestic credit crunch and
bring some stability to global markets, the Federal Reserve stepped in and eased
short-term interest rates for the first time in almost three years. Between the
end of September and mid-November 1998, three successive rate cuts brought the
federal funds rate to 4.75%.
Throughout 1998, the U.S. economy exhibited more strength than had been
expected. Current conditions indicate that this momentum could continue. One of
the chief factors in achieving today's peaceful coexistence of economic growth
and low inflation has been improved productivity. In the months ahead, we will
continue to watch this and other factors that affect the economy's future,
including corporate earnings reports, wage and employment statistics, the
strength of the U.S. dollar, events in international markets, and any further
interest rate indications from the Federal Reserve. We believe these key
components will influence the outlook for fixed-income markets well into the
next century.
Municipal Bonds: A Compelling Value
During the past year, rising bond prices, spurred in part by demand from
international and conservative investors, drove yields on 30-year Treasuries to
historic lows, even below 5% at times. Over this period, the yield on the Bond
Buyer Revenue Bond Index, an unmanaged index of long-term municipal revenue
bonds, fell seven basis points - from 5.36% to 5.29% - versus the 34-point drop
in Treasury yields. At the end of February 1999, the ratio of long-term
municipal yields compared to 30-year Treasury yields stood at 95%, compared with
the more typical range of 86-87%. Over the past eight months, this ratio reached
as high as 104%. For investors, this meant that quality long-term municipal
bonds offered almost the same yield as Treasury bonds with comparable
maturities -even before the tax advantages of municipal bonds were taken into
account. On an after-tax basis, municipal bonds presented an exceptionally
attractive investment option relative to Treasuries.
In the municipal market, low interest rates and the strong economy combined to
generate high levels of new issuance and a dramatic increase in the refinancing
of existing bonds. Municipal issuance in 1998 reached $284 billion, up 29% over
1997. In terms of total municipal issuance, 1998 ranked as the second largest
year on record, next to 1993's $292 billion. Municipal bonds have continued to
outperform Treasuries in 1999. There are two reasons for this. For starters,
municipal
1
<PAGE>
"Despite the
financial
turmoil in other
economic
circles, the
Nuveen Money
Market Funds
were able to
offer attractive
short-term
rates."
supply declined 30% in the first quarter of 1999 when compared to the first
quarter of 1998, which made the bonds that were brought to market very
attractive. The second factor involved a drop-off in demand for Treasuries by
foreign investors. As the global economic turmoil subsided during the first
quarter of 1999, so did the interest in the U.S. Treasury market.
The continued strength of the U.S. economy also produced improvements in the
fundamental health of many municipalities and boosted the overall credit quality
of municipal bonds. In 1998, issues upgraded by Moody's outnumbered downgrades
by a margin of 4 to 1, while the comparable ratio at Standard & Poor's was more
than 2 to 1.
Performance Review
Despite the financial turmoil in other economic circles, the funds in this
report were able to offer attractive short-term rates. As of February 28, 1999,
the Nuveen Tax-Free Reserves, Inc. offered investors a tax-free yield of 2.47%,
which represented a taxable-equivalent yield of 3.58% for investors in the 31%
federal income tax bracket. The tax-free yields for the three state money market
funds were: 2.24% for California, 2.19% for Massachusetts, and 2.22% for New
York. The taxable-equivalents were 3.59%, 3.61%, and 3.45%, respectively, for
investors in the 31% federal and applicable state income tax bracket.
Please see your fund's Performance Overview in this report for more
information.
News about the Massachusetts Fund
In early February, the Board of Directors of the Nuveen Massachusetts Tax-Free
Money Market Fund approved the closure of the fund. Despite offering competitive
yields, the size and competitive environment of the Massachusetts market have
prevented the Fund from reaching a self-sustaining level of assets. In order to
ensure an orderly closure, we asked shareholders to close out their accounts by
either redeeming their shares or exchanging them for shares of another Nuveen
money market or long-term fund. Any accounts still open as of the close of
business on May 7, 1999 will be liquidated and a check for the redemption
proceeds, including accrued dividends through May 7th, will be mailed to
investors at their address of record.
Nuveen Expertise is Key
The solid track record of a proven investment manager is one key to taking
advantage of the exceptional values currently available in the municipal market.
The near-record level of municipal issuance in 1998, for example, highlighted
the value of Nuveen's in-depth knowledge of the municipal market, as our
portfolio management teams carefully analyzed the flood of issues to select
those securities best suited to help the funds achieve their investment
objectives. As a further enhancement to our management capabilities, Nuveen has
assembled a strong group of investment managers - experts in their particular
areas of the market - to provide investors with the advantage of their
experience and insights. In addition to Nuveen Advisory Services for tax-free
investing, you and your adviser can rely on Institutional Capital Corporation
for value-oriented equity investing and Rittenhouse Financial Services, Inc. for
growth-oriented equity investing. For more information on these funds, contact
your financial adviser for a prospectus, or call Nuveen at (800) 621-7227.
Please read the prospectus carefully before you invest or send money.
We encourage you to talk with your financial adviser about Nuveen's expanding
array of investments and the ways they can help you establish a diversified
portfolio designed to build and sustain long-term financial security. We are
grateful for the confidence you have placed in us and are dedicated to
maintaining your trust in the years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 15, 1999
2
<PAGE>
Nuveen Tax-Free Reserves, Inc.
Performance Overview
As of February 28, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
<S> <C>
Portfolio Statistics
- ----------------------------------------------------------------
Inception Date 11/82
Net Assets ($000) $252,354
Average Weighted Maturity (days) 36.82
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Tax-Free Yields
- ----------------------------------------------------------------
SEC 7-Day Yield 2.47%
SEC 30-Day Yield 2.29%
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Taxable-Equivalent (based on a federal income tax rate of 31%)
- ----------------------------------------------------------------
SEC 7-Day Yield 3.58%
SEC 30-Day Yield 3.32%
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Diversification (as a % of total investments)
- ----------------------------------------------------------------
Healthcare 19%
Tax Obligation/General 18%
Long-Term Care 13%
Utilities 12%
Industrial/Other 7%
Education and Civic Organizations 7%
Water and Sewer 5%
Tax Obligation/Limited 5%
Basic Materials 5%
Capital Goods 4%
Consumer Cyclicals 4%
Housing/Multifamily 1%
- ----------------------------------------------------------------
100%
================================================================
</TABLE>
- ----------------------------------------------------------------
1998-1999 Index Comparison
- ----------------------------------------------------------------
[LINE CHART APPEARS HERE]
<TABLE>
<CAPTION>
IBC Donoghue Retail
Nuveen Tax-Free Reserves Tax-Exempt Money Market
30-Day Yield Fund Average
<S> <C> <C>
2/98 2.74 2.77
3/98 2.78 2.78
4/98 3.08 3.16
5/98 3.45 3.45
6/98 3.04 3.02
7/98 2.93 2.89
8/98 2.87 2.81
9/98 2.94 2.91
10/98 2.83 2.75
11/98 2.77 2.68
12/98 2.76 2.68
1/99 2.56 2.49
2/99 2.29 2.19
</TABLE>
Past performance is not predictive of future performance.
Nuveen California
Tax-Free Money Market Fund
Performance Overview
As of February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
Portfolio Statistics
Inception Date 3/86
Net Assets ($000) $177,315
Average Weighted Maturity (days) 28.63
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Tax-Free Yields
- ----------------------------------------------------------------
SEC 7-Day Yield 2.24%
SEC 30-Day Yield 2.04%
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Taxable-Equivalent (based on a federal income tax rate of 37.5%)
- ----------------------------------------------------------------
SEC 7-Day Yield 3.58%
SEC 30-Day Yield 3.26%
- ----------------------------------------------------------------
- ----------------------------------------------------------------
Diversification (as a % of total investments)
- ----------------------------------------------------------------
Tax Obligation/General 23%
Tax Obligation/Limited 18%
Housing/Multifamily 17%
Healthcare 16%
Water and Sewer 9%
Long-Term Care 5%
Consumer Staples 4%
Transportation 4%
Utilities 4%
- ----------------------------------------------------------------
100%
================================================================
</TABLE>
- ----------------------------------------------------------------
1998 - 1999 Index Comparison
- ----------------------------------------------------------------
[LINE CHART APPEARS HERE]
<TABLE>
<CAPTION>
IBC Donoghue California
Nuveen California Retail Tax-Exempt Money
30-Day Yield Market Fund Average
<S> <C> <C>
2/98 2.83 2.59
3/98 2.89 2.60
4/98 3.37 3.06
5/98 3.33 3.09
6/98 3.12 2.86
7/98 2.90 2.60
8/98 2.66 2.37
9/98 2.97 2.57
10/98 2.78 2.44
11/98 2.62 2.41
12/98 2.63 2.45
1/99 2.41 2.26
2/99 2.04 1.91
</TABLE>
Past performance is not predictive of future performance.
3
<PAGE>
Nuveen Massachusetts
Tax-Free Money Market Fund
Performance Overview
As of February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
Portfolio Statistics
Inception Date 2/87
..........................................................................
Net Assets ($000) $40,774
..........................................................................
Average Weighted Maturity (days) 32.52
- --------------------------------------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 2.19%
..........................................................................
SEC 30-Day Yield 1.97%
- --------------------------------------------------------------------------
Taxable-Equivalent (based on a federal income tax rate of 35%)
SEC 7-Day Yield 3.37%
..........................................................................
SEC 30-Day Yield 3.03%
- --------------------------------------------------------------------------
Diversification (as a % of total investments)
..........................................................................
Education and Civic Organizations 28%
..........................................................................
Tax Obligation/General 19%
..........................................................................
Healthcare 17%
..........................................................................
Housing/Multifamily 16%
..........................................................................
Water and Sewer 10%
..........................................................................
Long-Term Care 5%
..........................................................................
Utilities 3%
..........................................................................
Tax Obligation/Limited 2%
- --------------------------------------------------------------------------
100%
==========================================================================
</TABLE>
1998-1999 Index Comparison
[LINE CHART APPEARS HERE]
IBC Donoghue Massachusetts Retail
Nuveen Massachusetts Retail Tax-Exempt Money Market Fund Average
2/98 2.71 2.65
3/98 2.82 2.62
4/98 3.21 3.03
5/98 3.24 3.12
6/98 2.99 2.89
7/98 2.83 2.77
8/98 2.74 2.69
9/98 2.84 2.78
10/98 2.68 2.65
11/98 2.62 2.58
12/98 2.62 2.57
1/99 2.38 2.37
2/99 1.96 2.06
Past performance is not predictive of future performance.
Nuveen New York
Tax-Free Money Fund
Performance Overview
As of February 28, 1999
Portfolio Statistics
Inception Date 2/87
..........................................................................
Net Assets ($000) $35,303
..........................................................................
Average Weighted Maturity (days) 38.58
- --------------------------------------------------------------------------
Tax-Free Yields
SEC 7-Day Yield 2.22%
..........................................................................
SEC 30-Day Yield 2.00%
- --------------------------------------------------------------------------
Taxable-Equivalent (based on a federal income tax rate of 35.5%)
SEC 7-Day Yield 3.44%
..........................................................................
SEC 30-Day Yield 3.10%
- --------------------------------------------------------------------------
Diversification (as a % of total investments)
Tax Obligation/General 24%
..........................................................................
Education and Civic Organizations 17%
..........................................................................
Tax Obligation/Limited 12%
..........................................................................
Housing/Multifamily 9%
..........................................................................
Long-Term Care 9%
..........................................................................
Utilities 7%
..........................................................................
Water and Sewer 6%
..........................................................................
Healthcare 5%
..........................................................................
Consumer Cyclicals 4%
..........................................................................
Transportation 4%
..........................................................................
Industrial/Other 3%
- --------------------------------------------------------------------------
100%
==========================================================================
1998-1999 Index Comparison
[LINE CHART APPEARS HERE]
Nuveen New York 30-Day Yield IBC Donoghue New York Retail Tax-Exempt
2/98 2.68 2.68
3/98 2.72 2.66
4/98 3.20 3.07
5/98 3.25 3.12
6/98 3.00 2.94
7/98 2.84 2.79
8/98 2.67 2.67
9/98 2.83 2.78
10/98 2.59 2.62
11/98 2.55 2.57
12/98 2.59 2.57
1/99 2.38 2.38
2/99 1.99 2.06
Past performance is not predictive of future performance.
4
<PAGE>
Portfolio of Investments
Nuveen Tax-Free Reserves, Inc.
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama - 0.6%
$ $1,500,000 Industrial Development Board of the City Aa-2 $ 1,500,000
of Citronelle, Alabama, Pollution Control
Revenue Bonds, Series 1992 (Akzo Chemicals
Inc. Project), Variable Rate Demand Bonds,
3.050%, 2/01/04+
- ------------------------------------------------------------------------------------------
Arizona - 3.2%
8,000,000 Mesa Municipal Development Corporation VMIG-1 8,000,000
(Arizona), Special Tax Updates Bonds,
Series 1985, Commercial Paper,
2.850%, 4/01/99
- ------------------------------------------------------------------------------------------
California - 1.2%
3,000,000 California School Cash Reserve Program MIG-1 3,007,401
Authority, Pooled Short-Term Obligation
Notes, Series, 1998A, 4.500%, 7/02/99
- ------------------------------------------------------------------------------------------
Colorado - 1.3%
3,300,000 Fort Morgan, Colorado, Waterworks and A-1+ 3,300,000
Distribution Enterprises, Water Revenue,
Series 1997, Variable Rate Demand Bonds,
3.000%, 12/01/17+
- ------------------------------------------------------------------------------------------
District of Columbia - 3.8%
1,400,000 District of Columbia (Washington, D.C.) VMIG-1 1,400,000
General Obligation Bonds, Variable Rate
Demand Bonds, Series 1992A-5, 3.350%,
10/01/07+
3,800,000 District of Columbia (Washington, D.C.) VMIG-1 3,800,000
General Obligation Bonds, Variable Rate
Demand Bonds, Series 1992A-4, 3.350%,
10/01/07+
4,500,000 District of Columbia (Washington, D.C.) VMIG-1 4,500,000
General Obligation Bonds, Variable Rate
Demand Bonds, Series 1992A-2, 3.350%,
10/01/07+
- ------------------------------------------------------------------------------------------
Florida - 4.7%
3,100,000 Pasco County Housing Finance Authority, VMIG-1 3,100,000
Multifamily Housing Revenue Bonds
(Carlton Arms of Magnolia Valley Project),
Series 1985, Variable Rate Demand Bonds,
3.075%, 12/01/07+
4,800,000 Sarasota County (Florida) Public Hospital A-1+ 4,800,000
District, Sarasota Memorial Hospital
Project, 1985 Series S, Commercial
Paper, 2.650%, 5/14/99
4,000,000 Sunshine State Governmental Financing VMIG-1 4,000,000
Commission, Commercial Paper, 2.750%,
5/07/99
- ------------------------------------------------------------------------------------------
Hawaii - 0.4%
900,000 Department of Budget and Finance of the A-1 900,000
State of Hawaii, Special Purpose Floating
Rate Demand Revenue Bonds (Adventist Health
System-West), Series 1984, Variable Rate
Demand Bonds, 3.100%, 9/01/99
- ------------------------------------------------------------------------------------------
Illinois - 20.9%
6,000,000 Illinois Health Facilities Authority, The VMIG-1 16,000,000
University of Chicago Hospitals, Series
1998, Variable Rate Demand Bonds, 3.250%,
8/01/26+
7,000,000 Illinois Development Finance Authority, P-1 7,000,000
Pollution Control Revenue Bonds
(Diamond-Star Motors Corporation Project),
Series 1985, Variable Rate Demand Bonds,
4.250%, 12/01/08+
2,500,000 Illinois Development Finance Authority A-1+ 2,500,000
(Radiological Society of North America),
Series 1997, Variable Rate Demand Bonds,
2.850%, 6/01/17+
2,475,000 Illinois Development Finance Authority N/R 2,475,000
(American College of Occupational and
Developmental Medicine Project),
Series 1998, Variable Rate Demand Bonds,
2.950%, 10/01/18+
6,000,000 Illinois Educational Facilities VMIG-1 6,000,000
Authority, Shedd Aquarium Society, Series
1987B, Commercial Paper, 3.700%, 7/20/99
5,500,000 Illinois Health Facilities Authority, VMIG-1 5,500,000
Series 1997 (Victory Health Services),
Commercial Paper, 2.950%, 5/13/99
3,000,000 City of Chicago, Illinois, General VMIG-1 3,000,000
Obligation Tender Notes, Series 1994C,
3.050%, 10/31/99
5,730,000 City of Chicago, Illinois (De La Salle A-1+ 5,730,000
Institute Project), Series 1997, Variable
Rate Demand Bonds, 3.000%, 4/01/27+
10,700,000 Decatur (Illinois), Water Revenue, Series A-2 10,700,000
1985 (New South Water Treatment),
Commercial Paper, 4.125%, 3/03/99
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Illinois (continued)
$ 2,100,000 City of Macomb, Illinois, Adjustable Rate N/R $ 2,100,000
Capital Improvement Revenue Bonds, Series
1996 (Wesley Village Project),
Variable Rate Demand Bonds, 2.950%,
8/01/17+
1,770,000 Village of Oak Park, Illinois (Lone Tree N/R 1,770,000
Area Girl Scout Council, Inc. Project),
Series 1997, Variable Rate Demand Bonds,
2.950%, 11/01/17+
- ------------------------------------------------------------------------------------------
Iowa - 1.1%
2,900,000 City of Eddyville, Iowa, Industrial N/R 2,900,000
Development Revenue Bonds (Heartland
Lysine, Inc. Project), Series 1985,
Variable Rate Demand Bonds, 3.450%,
11/01/03+
- ------------------------------------------------------------------------------------------
Kansas - 1.6%
4,000,000 City of Olathe, Kansas, General MIG-1 4,002,551
Obligation Temporary Notes, Series 1998B,
3.250%, 6/01/99
- ------------------------------------------------------------------------------------------
Kentucky - 4.8%
3,000,000 Kentucky Economic Development Finance VMIG-1 3,000,000
Authority, Hospital Revenue (Baptist
Health Care), Series C, Variable Rate
Demand Bonds, 3.300%, 8/15/31+
9,005,000 Hancock County, Kentucky, Industrial N/R 9,005,000
Building Revenue Refunding Bonds
(Southwire Company Project), Series 1990,
Variable Rate Demand Bonds, 3.150%,
7/01/10+
- ------------------------------------------------------------------------------------------
Louisiana - 4.1%
9,000,000 Ascension Parish Pollution Control (BASF P-1 9,000,000
Wyandotte Corporation), Variable Rate
Demand Bonds, 3.300%, 12/01/05+
1,410,000 Kentwood, Louisiana, Industrial Aa-2 1,410,000
Development Adjustable Rate Demand
Revenue Bonds, Series 1993 Refunding
(Suntory Water Group Inc), 3.050%,
8/01/12+
- ------------------------------------------------------------------------------------------
Massachusetts - 0.4%
1,000,000 Massachusetts Health and Educational Facilities VMIG-1 1,000,000
Authority (Harvard University), Variable Rate
Demand Bonds, 2.700%, 2/01/16+
- ------------------------------------------------------------------------------------------
Michigan - 4.8%
7,100,000 Michigan Job Development Authority, A-1 7,100,000
Limited Obligation Revenue Bonds
(Frankenmuth Bavarian Inn Motor Lodge
Project), Series A, Variable Rate Demand
Bonds, 3.500%, 9/01/15+
5,000,000 Detroit City School District (County of SP-1+ 5,013,694
Wayne, State of Michigan), State School
Aid Notes, Series 1998 (Limited Tax
Obligation), 4.500%, 7/01/99
- ------------------------------------------------------------------------------------------
Minnesota - 2.0%
4,985,000 City of Bloomington, Minnesota, Floating A-1+ 4,985,000
Rate Demand Commercial Revenue Bonds
(James Avenue Associates Project),
Series 1985, Variable Rate Demand Bonds,
3.000%, 12/01/15+
- ------------------------------------------------------------------------------------------
Mississippi - 1.6%
4,000,000 Jackson County, Mississippi, Port P-1 4,000,000
Facility Refunding Revenue Bonds (Chevron
U.S.A. Inc. Project), Series 1993,
Variable Rate Demand Bonds, 3.250%,
6/01/23+
- ------------------------------------------------------------------------------------------
Missouri - 5.0%
4,600,000 Health and Educational Facilities VMIG-1 4,600,000
Authority of the State of Missouri,
Health Facilities Revenue Bonds (Bethesda
Barclay), Series 1996A, Variable Rate
Demand Bonds, 3.500%, 8/15/26+
8,000,000 State Environmental Improvement and Energy VMIG-1 8,000,000
Resources Authority of the State of
Missouri, Pollution Control Revenue Bonds,
Series 1985 A (Union Electric Company),
Commercial Paper, 3.000%, 3/08/99
- ------------------------------------------------------------------------------------------
New Hampshire - 2.7%
6,800,000 New Hampshire Higher Educational and A-1 6,800,000
Health Facilities Authority, Hunt
Community Issue, Series 1996, Variable
Rate Demand Bonds, 2.950%, 5/01/26+
- ------------------------------------------------------------------------------------------
New Mexico - 1.0%
2,500,000 State of New Mexico, 1998-1999 Tax and MIG-1 2,506,290
Revenue Anticipation Notes, 3.750%,
6/30/99
- ------------------------------------------------------------------------------------------
North Carolina - 1.2%
3,000,000 The Wake County Industrial Facilities and VMIG-1 3,000,000
Pollution Control Financing Authority,
Pollution Control Refunding Bonds
(Carolina Power and Light Company
Project), Series 1985C, Variable Rate
Demand Bonds, 3.050%, 10/01/15+
</TABLE>
6
<PAGE>
Portfolio of Investments
Nuveen Tax-Free Reserves, Inc. (continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ohio - 8.3%
$ 1,000,000 Butler County, Ohio, Limited Tax General MIG-1 $ 1,000,196
Obligation Bond Anticipation Notes,
3.500%, 3/19/99
7,800,000 Centerville (Ohio), Health Care Revenue VMIG-1 7,800,000
Bonds (Bethany Lutheran Village
Continuing Care Facilities Expansion
Project), Variable Rate Demand Bonds,
2.850%, 5/01/08+
3,600,000 Cuyahoga County, University Hospital of VMIG-1 3,600,000
Cleveland, Series 1985, Variable Rate
Demand Bonds, 3.350%, 1/01/16+
5,120,000 County of Erie, Ohio, Adjustable Rate
Demand Health Care Facilities Revenue
Bonds (The Commons of Providence
Project), Series 1996 B, Variable
Rate Demand Bonds, 3.070%, 10/01/21+ VMIG-1 5,120,000
3,445,000 County of Franklin, Ohio, Floating Rate
Demand Hospital Financing Revenue Bonds,
Series 1993 (Traditions at Mill Run
Project), Variable Rate Demand Bonds,
3.100%, 11/01/14+ N/R 3,445,000
- ------------------------------------------------------------------------------------------
Pennsylvania - 5.7%
2,250,000 Butler County Industrial Development N/R 2,250,000
Authority (Pennsylvania), Industrial
Development Revenue Bonds (Wise Business
Forms Project), Series 1997, Variable
Rate Demand Bonds, 3.020%, 8/01/18+
7,000,000 Dauphin County General Authority (Pennsylvania), A-1+ 7,000,000
Variable Rate Demand Revenue Bonds (All
Health Pooled Financing Program),
Series A of 1997, 3.000%, 10/01/27+
5,000,000 City of Philadelphia, Pennsylvania, Tax MIG-1 5,009,823
and Revenue Anticipation Notes, Series A
of 1998-1999, 4.250%, 6/30/99
- ------------------------------------------------------------------------------------------
Tennessee - 1.0%
2,500,000 The Industrial Development Board of the N/R 2,500,000
County of Jackson, Tennessee, Industrial
Development Revenue Bonds
(Esselte Project), Series 1985B, Variable
Rate Demand Bonds, 3.350%, 8/01/15+
- ------------------------------------------------------------------------------------------
Texas - 5.3%
5,000,000 State of Texas, Transportation System, MIG-1 5,000,000
Commercial Paper, Series B, 2.950%,
8/13/99
8,500,000 Brownsville, Texas, Utility System, A-1+ 8,500,000
Commercial Paper, Series A, 2.750%,
5/14/99
- ------------------------------------------------------------------------------------------
Utah - 1.3%
3,200,000 West Valley City (Utah), Industrial N/R 3,200,000
Development (Johnson Matthey Project),
Series 1987, Variable Rate Demand Bonds,
3.350%, 12/01/11+
- ------------------------------------------------------------------------------------------
Virginia - 2.3%
2,600,000 The Industrial Development Authority of N/R 2,600,000
the City of Norfolk, Floating Rate
Industrial Development Revenue Bonds
(Norfolk-Virginia Beach-Portsmouth MSA
Limited Partnership Project), Series
1984, Variable Rate Demand Bonds,
5.363%, 11/01/04+
3,300,000 The Industrial Development Authority of N/R 3,300,000
the City of Richmond, Floating Rate
Industrial Development Revenue Bonds
(Richmond MSA Limited Partnership
Project), Variable Rate Demand Bonds,
3.900%, 11/01/04+
- ------------------------------------------------------------------------------------------
Washington - 3.2%
4,700,000 Washington Health Care Facilities A-1 4,700,000
Authority, Series 1984 (Adventist Health
System-West/Walla Walla General Hospital),
Variable Rate Demand Bonds, 3.100%,
9/01/09+
3,400,000 Housing Authority of the City of Tacoma N/R 3,400,000
(Washington), Series 1998 (Crown Assisted
Living Project), Adjustable Rate
Demand Bonds, 2.950%, 6/01/28+
- ------------------------------------------------------------------------------------------
Wisconsin - 6.1%
6,000,000 Wisconsin Health and Educational P-2 6,000,000
Facilities Authority, Alexian Village of
Milwaukee, Inc. Refinancing, Series 1988A,
Variable Date Demand Bonds, 4.125%,
3/01/17+
3,000,000 Wisconsin Health and Educational A-1 3,000,000
Facilities Authority, Adjustable Put
Option Revenue Bonds, Series 1997
(Froedtert Memorial Lutheran Hospital
Trust), Variable Rate Demand Bonds,
3.000%, 4/01/27+
3,400,000 Cedarburg, Wisconsin, School District, N/R 3,401,997
Tax and Revenue Anticipation Notes,
3.600%, 9/20/99
3,000,000 Mukwango Area School District, Waukesha MIG-1 3,012,765
and Walworth Counties, Wisconsin, Bonds
Anticipation Notes,
Series 1999, 3.750%, 11/01/99
- ------------------------------------------------------------------------------------------
$ 251,190,000 Total Investments - 99.6% 251,244,717
=============-----------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 1,109,439
-------------------------------------------------------------------------
Net Assets - 100% $252,354,156
=========================================================================
</TABLE>
* Ratings (not covered by the report of independent public
accountants): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently
in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
7
<PAGE>
Portfolio of Investments
Nuveen California Tax-Free Money Market Fund
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Staples - 3.9%
$7,000,000 San Dimas (California), Industrial N/R $ 7,000,000
Development Revenue Bonds (Bausch & Lomb
Incorporated), Series 1985, Variable Rate
Demand Bonds, 3.150%, 12/01/15+
- ------------------------------------------------------------------------------------------
Health Care - 16.4%
5,000,000 California Health Facilities Financing VMIG-1 5,000,000
Authority, Insured Revenue Bonds
(Sutter/CHS), Series 1996C, Variable
Rate Demand Bonds, 3.100%, 7/01/22+
7,100,000 California Health Facilities Financing VMIG-1 7,100,000
Authority, Hospital Revenue Bonds,
Series 1998A (Adventist Health System
West), Variable Rate Demand Bonds,
3.100%, 9/01/28+
1,300,000 California Health Facilities Financing VMIG-1 1,300,000
Authority, Refunding Revenue Bonds (St.
Joseph Health System), Series 1985B,
Variable Rate Demand Bonds, 3.100%,
7/01/13+
4,000,000 California Statewide Communities A-1+ 4,000,000
Development Authority, Tri-Modal Variable
Rate Revenue Refunding Certificates of
Participation (House Ear Institute), 1993
Series A, 3.100%, 12/01/18+
3,700,000 California Statewide Communities VMIG-2 3,700,000
Development Authority, Certificates of
Participation (Sutter Health Obligation
Group), Variable Rate Demand Bonds,
Series 1995, 3.550%, 7/01/15+
5,000,000 Torrance Hospital (Little Company of Mary A-1+ 5,000,000
Hospital - Torrance Memorial Hospital),
Variable Rate Demand Bonds,
2.700%, 2/01/22+
2,900,000 Washington Township Hospital District VMIG-2 2,900,000
(Alameda County, California), 1985 Issue
A, Floating Rate Demand Revenue Bonds,
4.500%, 1/01/16+
- ------------------------------------------------------------------------------------------
Housing/Multifamily - 17.1%
2,740,000 City of Chico, California, Multifamily N/R 2,740,000
Housing Revenue Refunding Bonds, Series
1995A (Sycamore Glen Project), Variable
Rate Demand Bonds, 3.200%, 4/07/14+
3,000,000 Hayward Housing Authority, Multifamily A-2 3,000,000
Mortgage Revenue Bonds, Refunding Series
1993A (Huntwood Terrace), Variable
Rate Demand Bonds, 4.350%, 3/01/27+
4,000,000 Los Angeles Community Redevelopment VMIG-2 4,000,000
Agency, Multifamily Housing Revenue,
Series 1985 (Skyline at South Park
Apartments Phase II), Variable Rate
Demand Bonds, 4.150%, 12/01/05+
4,696,000 City of Los Angeles, Multifamily Housing VMIG-2 4,696,000
Revenue Bonds (Studio Colony Project),
Series 1985C, Variable Rate
Demand Bonds, 2.600%, 5/01/07+
1,000,000 City of Ontario, California, Multifamily VMIG-1 1,000,000
Residential Mortgage Revenue Bonds, Issue
A of 1985 (Park Centre Partners),
Variable Rate Demand Bonds, 2.100%,
8/01/07+
7,000,000 Orange County (California), Apartment A-1+ 7,000,000
Development Revenue, Series 1985T
(Monarch Bay Apartments Project),
Variable Rate Demand Bonds, 2.100%,
10/01/07+
5,000,000 Orange County (California), Apartment A-1+ 5,000,000
Development Revenue, Series 1998-2 (WLCO
LF Partners), Issue G, Variable
Rate Demand Bonds, 2.600%, 11/15/28+
2,830,000 San Diego County, Multifamily Mortgage A-1+ 2,830,000
Revenue (La Jolla Pointe Apartments
Project), Series D, Variable Rate
Demand Bonds, 2.100%, 8/01/14+
- ------------------------------------------------------------------------------------------
Long-Term Care - 4.9%
3,600,000 Certificates of Participation, California VMIG-1 3,600,000
Statewide Communities Development
Authority, Northern California Retired
Officers Community, Variable Rate
Demand Bonds, 3.050%, 6/01/26+
5,100,000 City of Santa Ana, Multi-Modal A-1 5,100,000
Interchangeable Rate Health Facility
Revenue Bonds (Town and Country Manor
Project), Series 1990, Variable Rate
Demand Bonds, 3.100%, 10/01/20+
- ------------------------------------------------------------------------------------------
Tax Obligation/General - 22.4%
3,000,000 California School Cash Reserve Program MIG-1 3,007,401
Authority, Pooled Short-Term Obligations,
Series 1998A, 4.500%, 7/02/99
5,000,000 California State, Revenue Anticipation MIG-1 5,013,746
Notes, Series 1998, 4.000%, 6/30/99
</TABLE>
8
<PAGE>
Portfolio of Investments
Nuveen California Tax-Free Money Market Fund (continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/General (continued)
$3,000,000 County of Alameda, California, 1998-99 MIG-1 $ 3,010,207
Tax and Revenue Anticipation Notes,
4.500%, 7/07/99
2,700,000 Elk Grove Unified School District SP-1+ 2,707,772
(Sacramento County, California),
1998 Tax and Revenue Anticipation
Notes, 4.500%, 6/30/99
3,900,000 Irvine Ranch Water District (California), A-1+ 3,900,000
Consolidated Refunding Bonds, Series
1985-B, 1986 Capital Improvement Project,
Variable Rate Demand Bonds, 3.000%,
10/01/04+
6,400,000 Irvine Ranch Water District (California), A-1+ 6,400,000
Consolidated Bonds, Series 1985-B, 1986
Capital Improvement Project, Variable
Rate Demand Bonds, 3.000%, 10/01/09+
1,400,000 Irvine Ranch Water District (California), VMIG-1 1,400,000
Consolidated Improvement Districts,
Series 1989, Variable Rate
Demand Bonds, 3.000%, 6/01/15+
5,000,000 Irvine Ranch Water District (California), VMIG-1 5,000,000
Consolidated Refunding Bonds, Series A,
Variable Rate Demand Bonds,
3.000%, 5/01/09+
4,401,000 San Diego County, Teeter Obligation P-1 4,401,000
Tax-Exempt Commercial Paper, Series B-1,
2.800%, 3/10/99
5,000,000 South Coast Local Education Agencies SP-1+ 5,014,876
(California), Pooled Tax and Revenue
Anticipation Notes, Series 1998A,
4.500%, 6/30/99
- ------------------------------------------------------------------------------------------
Tax Obligation/Limited - 17.4%
3,650,000 Los Angeles County Metropolitan Transportation A-1 3,650,000
Authority, Second Subordinate Sales
Tax Revenue Bonds, Commercial Paper,
2.700%, 5/13/99
5,000,000 Los Angeles County Capital Assets Leasing A-1+ 5,000,000
Corporation, Lease Revenue, Tax-Exempt
Commercial Paper, 2.550%, 3/05/99
1,800,000 Oakland, California, Certificates of N/R 1,800,000
Participation, Capital Improvement
Project, Variable Rate Demand Bonds,
Series 1985, 2.950%, 12/01/15+
8,000,000 Orange County (California), Improvement VMIG-1 8,000,000
Bond Act of 1915, Irvine Coast Assessment
District No. 88-1, Limited Obligation
Improvement, Variable Rate Demand Bonds,
3.100%, 9/02/18+
2,500,000 County of Riverside, California, Teeter A-1+ 2,500,000
Obligation, Series B, Commercial Paper,
2.400%, 5/06/99
8,000,000 San Joaquin County Transportation A-1+ 8,000,000
Authority, Sales Tax Revenue, Commercial
Paper, Limited Tax Bonds, 2.600%, 6/01/99
1,860,000 Santa Clara County Transit District, AAA 1,860,000
Refunding Equipment Trust Certificates,
Variable Rate Demand Bonds, 2.100%,
6/01/15+
- ------------------------------------------------------------------------------------------
Transportation - 3.6%
6,295,000 San Francisco Airport Commission, San A-1+ 6,295,000
Francisco International Airport,
Subordinate Commercial Paper, Series B,
2.250%, 3/09/99
- ------------------------------------------------------------------------------------------
Utilities - 3.9%
7,000,000 Sacramento Municipal Utility District, VMIG-1 7,000,000
Commercial Paper, 2.400%, 5/14/99
- ------------------------------------------------------------------------------------------
Water and Sewer - 9.0%
4,500,000 Hillsborough (California), Certificates A-1 4,500,000
of Participation, Water and Sewer System
Project, Series 1995A, Variable Rate
Demand Bonds, 3.050%, 6/01/15+
1,900,000 City of Los Angeles (California), A-1+ 1,900,000
Wastewater System Revenue Notes,
Commercial Paper, 2.400%, 5/18/99
3,850,000 Monterey County Financing Authority, VMIG-1 3,850,000
Revenue Bonds (Reclamation and
Distribution Project), Series 1995A,
Variable Rate Demand Bonds, 2.700%,
9/01/36+
5,700,000 Santa Paula Public Financing Authority, A-2 5,700,000
Lease Revenue Bonds, Series 1996, Water
System Acquisition Project, Variable
Rate Demand Bonds, 2.250%, 2/01/26+
- ------------------------------------------------------------------------------------------
$ 174,822,000 Total Investments - 98.6% 174,876,002
=============-----------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 2,439,156
-------------------------------------------------------------------------
Net Assets - 100% $ 177,315,158
=========================================================================
</TABLE>
* Ratings (not covered by the report of independent public
accountants): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently
in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
9
<PAGE>
Portfolio of Investments
Nuveen Massachusetts Tax-Free Money Market Fund
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Education and Civic Organizations - 26.5%
$ 1,500,000 Massachusetts Health and Educational Facilities Authority (Capital Asset Program), Series E, VMIG-1 $1,500,000
Variable Rate Demand Bonds, 3.150%, 1/01/35+
1,500,000 Massachusetts Health and Educational Facilities Authority, Amherst College Issue, Series F, VMIG-1 1,500,000
Variable Rate Demand Bonds, 2.750%, 11/01/26+
2,000,000 Massachusetts Industrial Finance Agency (Showa Women's Institute Boston, Inc., 1994 VMIG-1 2,000,000
Project), Variable Rate Demand Bonds, 3.200%, 3/15/04+
900,000 Massachusetts Industrial Finance Agency (Emerson College Issue), Series 1995, Variable Rate N/R 900,000
Demand Bonds, 2.800%, 1/01/15+
1,000,000 Massachusetts Industrial Finance Agency, Variable Rate Demand Bonds (Massachusetts Society A-1 1,000,000
for the Prevention of Cruelty to Animals Issue, Series 1997), 2.800%, 8/01/27+
1,900,000 Massachusetts Industrial Finance Agency, Variable Rate Demand Bonds (Gordon College Issue), A-1+ 1,900,000
Series 1997, 2.800%, 12/01/27+
1,000,000 Massachusetts Industrial Finance Agency, Variable Rate Demand Bonds (Eastern Nazarene A-1+ 1,000,000
College Issue), Series 1997, 2.800%, 10/01/27+
1,000,000 Massachusetts Industrial Finance Agency, Variable Rate Demand Bonds (New England College of A-1+ 1,000,000
Optometry), Series 1997, 2.800%, 10/01/27+
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care - 16.2%
1,500,000 Massachusetts Health and Educational Facilities Authority, Variable Rate Demand Bonds, VMIG-1 1,500,000
Capital Asset Program Issue, Series A, 2.750%, 1/01/01+
1,800,000 Massachusetts Health and Educational Facilities Authority (Brigham and Women's Hospital), VMIG-1 1,800,000
Variable Rate Demand Bonds, Series 1985A, 2.800%, 7/01/17+
1,400,000 Massachusetts Health and Educational Facilities Authority, Variable Rate Demand Bonds, A-1+ 1,400,000
Newton-Wellesley Hospital Issue, Series F, 2.750%, 7/01/25+
1,900,000 Massachusetts Health and Educational Facilities Authority, Variable Rate Demand Bonds, VMIG-1 1,900,000
Partners Healthcare System, Series P, 2.850%, 7/01/27+
- ------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 14.9%
1,900,000 Massachusetts Housing Finance Agency, Multifamily Refunding Revenue Bonds, 1995 Series A VMIG-1 1,900,000
(Harbor Point), Variable Rate Demand Bonds, 2.900%, 12/01/25+
1,800,000 Massachusetts Housing Finance Agency, Multifamily Housing Project, Refunding Bonds, Series A-1+ 1,800,000
1995A, Variable Rate Demand Bonds, 2.900%, 1/15/10+
1,370,000 Massachusetts Industrial Finance Agency, Chestnut House Apartments (FHA Insured Mortgage), A-2 1,370,000
Series 1992, Variable Rate Demand Bonds, 3.100%, 8/01/26+
1,000,000 Massachusetts Industrial Finance Agency (Lower Mills Associates LP), Series 1995, Variable N/R 1,000,000
Rate Demand Bonds, 2.800%, 12/01/20+
- ------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 4.7%
1,900,000 Massachusetts Industrial Finance Agency, Revenue Bonds (Goddard House - Series 1995), A-1 1,900,000
Variable Rate Demand Bonds, 2.800%, 11/01/25+
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 18.5%
1,000,000 Massachusetts Bay Transportation Authority, General Transportation, Series 1984A, Commercial VMIG-1 1,000,000
Paper, 3.500%, 3/01/99
1,800,000 Town of Chelmsford, Massachusetts, Bond Anticipation Notes, 3.250%, 6/25/99 N/R 1,801,681
1,180,000 Frontier Regional School District (Massachusetts), Series 1998, General Obligation Bonds, Aaa 1,180,833
4.000%, 6/15/99
</TABLE>
10
<PAGE>
Portfolio of Investments
Nuveen Massachusetts Tax-Free Money Market Fund (continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/General (continued)
$ 999,000 Town of Plymouth, Massachusetts, General Obligation Bonds, 4.900%, 12/15/99 Aaa $ 1,014,081
1,040,000 Waltham (Massachusetts) Bond Anticipation Notes, Series 1998, 3.900%, 3/25/99 N/R 1,043,193
1,500,000 Woods Hole, Martha's Vineyard and Nantucket Steamship Authority, Bond Anticipation N/R 1,501,267
Notes, Series 1998, 3.250%, 5/18/99
- ------------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 2.4%
1,000,000 Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds VMIG-1 1,000,000
(Series A), Variable Rate Demand Bonds, 2.600%, 7/01/28+
- ------------------------------------------------------------------------------------------------------------------------------------
Utilities - 2.4%
1,000,000 Massachusetts Municipal Wholesale Electric Company, Series A, Commercial Paper, A-1 1,000,000
2.500%, 3/01/99
- ------------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 9.1%
1,900,000 Massachusetts Water Resources Authority, Series 1994, Commercial Paper, 2.650%, A-1+ 1,900,000
3/05/99
1,800,000 Massachusetts Water Pollution Abatement Trust, Pooled Loan Program, Series 4, Aaa 1,809,609
4.250%, 8/01/99
- ------------------------------------------------------------------------------------------------------------------------------------
$ 38,589,000 Total Investments - 94.7% 38,620,664
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.3% 2,153,316
-------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 40,773,980
===================================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public
accountants): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently
in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
11
<PAGE>
Portfolio of Investments
Nuveen New York Tax-Free Money Market Fund
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Cyclicals - 4.2%
$ 1,000,000 Dutchess County Industrial Development Agency, A-1 $1,000,000
Industrial Development Revenue Bonds (Toys "R" US-NYTEX
Inc. Facility), Series 1984, Variable Rate Demand Bonds,
3.025%, 11/01/19+
500,000 Yonkers Industrial Development Agency, Series 1989, VMIG-1 500,000
Civic Facility Revenue Bonds (Consumer Union Facility),
Variable Rate Demand Bonds, 2.600%, 7/01/19+
- -----------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 16.8%
1,400,000 Dormitory Authority of the State of New York, New York VMIG-1 1,400,000
Founding Charitable Corporation Revenue Bonds, Series
1997, Variable Rate Demand Bonds, 2.700%, 7/01/12+
1,000,000 New York State Housing Finance Agency, Series 1984-A VMIG-1 1,000,000
(Mt. Sinai School of Medicine), Variable Rate Demand
Bonds, 2.550%, 11/01/14+
1,000,000 Nassau County Industrial Development Agency, Civic A-1+ 1,000,000
Facility Revenue, Series 1989 (Cold Spring Harbor),
Variable Rate Demand Bonds, 3.150%, 7/01/19+
1,500,000 New York City Trust For Cultural Resources, Series 1985 VMIG-1 1,500,000
(Carnegie Hall), Variable Rate Demand Bonds, 2.700%,
12/01/15+
1,000,000 Syracuse Industrial Development Agency, Civic Facility VMIG-1 1,000,000
Revenue, Multi-Modal Interchangeable Rate Demand Bonds,
Series 1993 (Syracuse University), 3.150%, 3/01/23+
- -----------------------------------------------------------------------------------------------------------
Health Care - 4.5%
900,000 Dormitory Authority of the State of New York, A-1+ 900,000
Series 1989A (Sloan-Kettering Cancer Center),
Commercial Paper, 2.600%, 4/09/99
700,000 New York State Medical Care Facilities Finance Agency VMIG-1 700,000
(Lenox Hill Hospital), Variable Rate Demand Bonds,
Series 1990, 2.700%, 11/01/08+
- -----------------------------------------------------------------------------------------------------------
Housing/Multifamily - 8.8%
1,800,000 New York State Housing Finance Agency (Normandie Court), VMIG-1 1,800,000
Variable Rate Demand Revenue Bonds, Series 1991A,
2.650%, 5/15/15+
1,000,000 Monroe County (New York) Industrial Development Agency, VMIG-1 1,000,000
Series 1998A (Collegiate Housing Foundation), Variable
Rate Demand Bonds, 2.850%, 10/01/28+
300,000 New York City Housing Development Corporation (Columbus A-1+ 300,000
Gardens Project), Multi-Family Mortgage, Variable Rate
Demand Bonds, Series 1993A, 2.600%, 2/01/07+
- -----------------------------------------------------------------------------------------------------------
Industrial/Other - 2.5%
900,000 Guilderland Industrial Development Agency, P-1 900,000
Variable Rate Demand Bonds (Northeastern
Industrial Park Project), Series 1993A, 2.900%, 12/01/08+
- -----------------------------------------------------------------------------------------------------------
Long-Term Care - 9.3%
1,100,000 New York State Dormitory Authority, Series 1994 (St. VMIG-1 1,100,000
Francis Center at the Knolls, Inc.), Variable Rate
Demand Bonds, 3.400%, 7/01/23+
800,000 New York State Dormitory Authority, Series 1995 VMIG-1 800,000
(Beverwyck Inc.), Variable Rate Demand Bonds, 2.750%,
7/01/25+
1,400,000 County of Otsego Industrial Development Agency (New A-2 1,400,000
York), Civic Facility Revenue Bonds (St. James Retirement
Community Project - Letter of Credit Secured),
Series 1998A, Variable Rate Demand Bonds, 2.800%, 8/01/28+
- -----------------------------------------------------------------------------------------------------------
Tax Obligation/General - 24.4%
1,000,000 State of New York, General Obligation Environmental A-1+ 1,000,000
Quality Bonds, Series 1997A, Commercial Paper, 2.750%,
6/11/99
1,000,000 Brockport, New York, Central School District, N/R 1,000,305
Bonds Anticipation Notes, Series 1998, 4.000%,
3/30/99
</TABLE>
12
<PAGE>
Portfolio of Investments
Nuveen New York Tax-Free Money Market Fund (continued)
February 28, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/General (continued)
$ 1,000,000 Buffalo, New York, Revenue Anticipation Notes, Series 1998A, 3.750%, 7/27/99 MIG-1 $ 1,002,998
1,000,000 County of Erie, New York, Revenue Anticipation Notes, Series 1998, 4.000%, 10/13/99 MIG-1 1,006,010
1,340,000 Harrison, New York, Bonds Anticipation Notes, Series 1998, 3.250%, 12/17/99 A-1 1,342,843
1,000,000 New York City, General Obligation Adjustable Rate Bonds, Fiscal 1994, 3.300%, 8/15/21+ VMIG-1 1,000,000
1,250,000 Puerto Rico Government Development Bank, Adjustable Refunding Bonds, Series 1985, Variable VMIG-1 1,250,000
Rate Demand Bonds, 2.400%, 12/01/15+
1,000,000 South Huntington Union Free School District, Suffolk County, New York, Tax Anticipation MIG-1 1,002,003
Notes, Series 1998-99, 3.900%, 6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 12.6%
1,400,000 New York Local Government Assistance Corporation, Series 1995E, Variable Rate Demand Bonds, VMIG-1 1,400,000
2.650%, 4/01/25+
1,400,000 New York State Housing Finance Agency, Service Contract Obligation Revenue Bonds, VMIG-1 1,400,000
Series 1998A, Variable Rate Demand Bonds, 2.550%, 3/15/28+
640,000 New York State Job Development Authority, Series 1984E, Variable Rate Demand Bonds, VMIG-1 640,000
2.450%, 3/01/99
1,000,000 Puerto Rico Highway and Transportation Authority, Transportation Revenue Bonds (Series A), VMIG-1 1,000,000
Variable Rate Demand Bonds, 2.600%, 7/01/28+
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.0%
1,400,000 Metropolitan Transportation Authority (New York), Transit Facilities, Commercial Paper, A-1+ 1,400,000
Series 1, 2.550%, 5/05/99
- -----------------------------------------------------------------------------------------------------------------------------------
Utilities - 6.8%
1,000,000 New York State Energy Research and Development Authority, Pollution Control Revenue P-1 1,000,000
(Central Hudson Gas and Electric Corporation), Variable Rate Demand Bonds,
Series 1985B, 2.740%, 11/01/20+
1,400,000 New York State Energy Research and Development Authority, Pollution Control Revenue P-1 1,400,000
Refunding, Series 1987A (Niagara Mohawk Power Corporation), Variable Rate Demand Bonds,
3.150%, 3/01/27+
- -----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 5.9%
500,000 New York City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, VMIG-1 500,000
Fiscal 1996, Series A, Variable Rate Demand Bonds, 3.600%, 6/15/25+
1,600,000 New York City Municipal Water Finance Authority, Series 3, Commercial Paper, 2.950%, 3/31/99 A-1+ 1,600,000
- -----------------------------------------------------------------------------------------------------------------------------------
$35,230,000 Total Investments - 99.8% 35,244,159
===========------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.2% 59,282
---------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 35,303,441
=====================================================================================================================
</TABLE>
* Ratings (not covered by the report of Independent public accountants):
Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
13
<PAGE>
Statement of Net Assets
February 28, 1999
<TABLE>
<CAPTION>
Reserves California Massachusetts New York
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in short-term municipal
securities, at amortized cost,
which approximates market value (note 1) $251,244,717 $174,876,002 $38,620,664 $35,244,159
Cash 710,640 953,637 2,126,544 40,622
Receivables:
Interest 1,278,955 837,406 160,793 149,131
Investments sold -- 1,100,000 100,000 --
Other assets 12,293 12,111 2,542 1,888
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 253,246,605 177,779,156 41,010,543 35,435,800
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued expenses:
Management fees (note 4) 82,395 50,340 6,112 6,942
12b-1 fees (note 4) 78,250 97,804 36,686 7,030
Other 291,268 44,149 131,312 64,514
Dividends payable 440,536 271,705 62,453 53,873
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 892,449 463,998 236,563 132,359
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding (note 3) $252,354,156 $177,315,158 $40,773,980 $35,303,441
====================================================================================================================================
Shares outstanding:
Service Plan series -- 113,761,490 5,797,639 2,180,165
Distribution Plan series -- 60,141,853 29,216,823 33,106,609
Institutional series -- 3,411,815 5,759,518 16,667
- ------------------------------------------------------------------------------------------------------------------------------------
Total shares outstanding 252,354,156 177,315,158 40,773,980 35,303,441
====================================================================================================================================
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.
14
<PAGE>
Statement of Operations
Year Ended February 28, 1999
<TABLE>
<CAPTION>
Reserves
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income (note 1) $ 9,191,624
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 1,278,530
12b-1 fees (note 4) 114,670
Shareholders' servicing agent fees and expenses 467,836
Custodian's fees and expenses 57,271
Directors' fees and expenses (note 4) 6,332
Professional fees 7,898
Shareholders' reports - printing and mailing
expenses 64,081
Federal and state registration fees 30,239
Other expenses 22,630
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 2,049,487
Expense reimbursement (note 4) (131,692)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,917,795
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,273,829
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 7,273,829
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
California
- -----------------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $ 3,326,165 $ 1,945,652 $ 775,161 $ 6,046,978
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 398,130 232,037 88,807 718,974
12b-1 fees (note 4) 116,329 23,295 -- 139,624
Shareholders' servicing agent fees and expenses 4,940 50,097 503 55,540
Custodian's fees and expenses 26,866 15,603 5,254 47,723
Directors' fees and expenses (note 4) 2,538 1,459 470 4,467
Professional fees 8,214 4,807 1,627 14,648
Shareholders' reports - printing and mailing
expenses 15,987 32,130 114 48,231
Federal and state registration fees 5,742 74 -- 5,816
Other expenses 9,026 4,960 390 14,376
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 587,772 364,462 97,165 1,049,399
Expense reimbursement (note 4) (40,407) (45,455) (5) (85,867)
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 547,365 319,007 97,160 963,532
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,778,800 1,626,645 678,001 5,083,446
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 2,778,800 $ 1,626,645 $ 678,001 $ 5,083,446
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
Massachusetts
- ------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $192,454 $ 978,563 $159,275 $1,330,292
- ------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 23,310 118,822 19,675 161,807
12b-1 fees (note 4) 6,855 24,760 -- 31,615
Shareholders' servicing agent fees and expenses 3,466 39,118 4,838 47,422
Custodian's fees and expenses 4,762 22,949 3,611 31,322
Directors' fees and expenses (note 4) 214 1,242 217 1,673
Professional fees 1,836 9,324 1,614 12,774
Shareholders' reports - printing and mailing expenses 1,053 28,872 243 30,168
Federal and state registration fees 1,030 3,336 1,875 6,241
Other expenses 530 2,669 443 3,642
- ------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 43,056 251,092 32,516 326,664
Expense reimbursement (note 4) (11,007) (87,712) (5,461) (104,180)
- ------------------------------------------------------------------------------------------------------------------------
Net expenses 32,049 163,380 27,055 222,484
- ------------------------------------------------------------------------------------------------------------------------
Net investment income 160,405 815,183 132,220 1,107,808
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $160,405 $ 815,183 $132,220 $1,107,808
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
New York
- ------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (note 1) $ 63,330 $1,004,812 $ 546 $1,068,688
- ------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 7,913 123,465 66 131,444
12b-1 fees (note 4) 1,992 8,464 -- 10,456
Shareholders' servicing agent fees and expenses 1,323 40,239 41 41,603
Custodian's fees and expenses 1,535 22,864 13 24,412
Directors' fees and expenses (note 4) 150 2,385 1 2,536
Professional fees 337 4,037 3 4,377
Shareholders' reports - printing and mailing expenses 884 18,161 44 19,089
Federal and state registration fees 429 96 -- 525
Other expenses 165 1,086 1 1,252
- ------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 14,728 220,797 169 235,694
Expense reimbursement (note 4) (3,849) (51,033) (77) (54,959)
- ------------------------------------------------------------------------------------------------------------------------
Net expenses 10,879 169,764 92 180,735
- ------------------------------------------------------------------------------------------------------------------------
Net investment income 52,451 835,048 454 887,953
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 52,451 $ 835,048 $ 454 $ 887,953
========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Reserves
- ----------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
2/28/99 2/28/98
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 7,273,829 $ 8,301,248
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 7,273,829 8,301,248
- ----------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (7,273,829) (8,301,248)
- ----------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 159,407,682 175,436,062
Net proceeds from shares issued to shareholders due to reinvestment of distributions 6,997,731 7,880,661
- ----------------------------------------------------------------------------------------------------------------------
166,405,413 183,316,723
Cost of shares redeemed (184,774,094) (216,681,366)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (18,368,681) (33,364,643)
Net assets at the beginning of year 270,722,837 304,087,480
- ----------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 252,354,156 $ 270,722,837
======================================================================================================================
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
California
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/99
- -----------------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 2,778,800 $ 1,626,645 $ 678,001 $ 5,083,446
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 2,778,800 1,626,645 678,001 5,083,446
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (2,778,800) (1,626,645) (678,001) (5,083,446)
- -----------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 295,788,047 50,528,459 92,428,289 438,744,795
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 2,604,802 1,475,584 406,037 4,486,423
- -----------------------------------------------------------------------------------------------------------------------------------
298,392,849 52,004,043 92,834,326 443,231,218
Cost of shares redeemed (271,546,956) (46,651,143) (108,213,403) (426,411,502)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions 26,845,893 5,352,900 (15,379,077) 16,819,716
Net assets at the beginning of year 86,915,597 54,788,953 18,790,892 160,495,442
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 113,761,490 $ 60,141,853 $ 3,411,815 $ 177,315,158
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
California
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/98
- -----------------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 2,435,939 $ 1,676,605 $ 758,859 $ 4,871,403
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 2,435,939 1,676,605 758,859 4,871,403
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (2,435,939) (1,676,605) (758,859) (4,871,403)
- -----------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 161,050,966 31,802,629 101,301,804 294,155,399
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 2,277,888 1,512,816 18 3,790,722
- -----------------------------------------------------------------------------------------------------------------------------------
163,328,854 33,315,445 101,301,822 297,946,121
Cost of shares redeemed (171,719,687) (36,016,099) (115,353,497) (323,089,283)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (8,390,833) (2,700,654) (14,051,675) (25,143,162)
Net assets at the beginning of year 95,306,430 57,489,607 32,842,567 185,638,604
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 86,915,597 $ 54,788,953 $ 18,790,892 $ 160,495,442
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
Statement of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
Massachusetts
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/99
- -----------------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 160,405 $ 815,183 $ 132,220 $ 1,107,808
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 160,405 815,183 132,220 1,107,808
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (160,405) (815,183) (132,220) (1,107,808)
- -----------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 9,072,701 31,932,823 10,603,858 51,609,382
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 161,161 810,289 32,751 1,004,201
- -----------------------------------------------------------------------------------------------------------------------------------
9,233,862 32,743,112 10,636,609 52,613,583
Cost of shares redeemed (9,521,677) (29,446,506) (10,454,718) (49,422,901)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (287,815) 3,296,606 181,891 3,190,682
Net assets at the beginning of year 6,085,454 25,920,217 5,577,627 37,583,298
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 5,797,639 $ 29,216,823 $ 5,759,518 $ 40,773,980
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Massachusetts
- -----------------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/98
- -----------------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 251,426 $ 826,655 $ 142,493 $ 1,220,574
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 251,426 826,655 142,493 1,220,574
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (251,426) (826,655) (142,493) (1,220,574)
- -----------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 11,631,756 20,106,738 11,348,896 43,087,390
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 252,889 812,123 21,738 1,086,750
- -----------------------------------------------------------------------------------------------------------------------------------
11,884,645 20,918,861 11,370,634 44,174,140
Cost of shares redeemed (15,763,455) (22,081,518) (9,770,347) (47,615,320)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (3,878,810) (1,162,657) 1,600,287 (3,441,180)
Net assets at the beginning of year 9,964,264 27,082,874 3,977,340 41,024,478
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 6,085,454 $ 25,920,217 $ 5,577,627 $ 37,583,298
===================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
<TABLE>
<CAPTION>
New York
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/99
- ---------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 52,451 $ 835,048 $ 454 $ 887,953
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 52,451 835,048 454 887,953
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (52,451) (835,048) (454) (887,953)
- ---------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 2,834,704 16,651,466 -- 19,486,170
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 29,489 810,058 -- 839,547
- ---------------------------------------------------------------------------------------------------------------------------
2,864,193 17,461,524 -- 20,325,717
Cost of shares redeemed (2,089,547) (13,209,032) -- (15,298,579)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from share transactions 774,646 4,252,492 -- 5,027,138
Net assets at the beginning of year 1,405,519 28,854,117 16,667 30,276,303
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 2,180,165 $ 33,106,609 $16,667 $ 35,303,441
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
New York
- ---------------------------------------------------------------------------------------------------------------------------
Year Ended 2/28/98
- ---------------------------------------------------------------------------------------------------------------------------
Service Plan Distribution Plan Institutional
Series Series Series Total
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 16,929 $ 839,227 $ 516 $ 856,672
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 16,929 839,227 516 856,672
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (16,929) (839,227) (516) (856,672)
- ---------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 1,014,732 14,585,479 -- 15,600,211
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 13,306 854,990 -- 868,296
- ---------------------------------------------------------------------------------------------------------------------------
1,028,038 15,440,469 -- 16,468,507
Cost of shares redeemed (36,590) (12,701,915) -- (12,738,505)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from share transactions 991,448 2,738,554 -- 3,730,002
Net assets at the beginning of year 414,071 26,115,563 16,667 26,546,301
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 1,405,519 $ 28,854,117 $16,667 $ 30,276,303
===========================================================================================================================
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
Notes to Financial Statements
1. General Information and Significant Accounting Policies
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. (comprising the Nuveen California Tax-Free Money Market Fund ("California")
and Nuveen Tax-Free Money Market Fund, Inc. (comprising the Nuveen Massachusetts
("Massachusetts") and New York ("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 a sales charge.
In early February, the Board of Directors of Massachusetts approved the closure
of the Fund. After the close of business on March 12, 1999, Massachusetts will
be closed to new investments, including new accounts and purchases by existing
shareholders. John Nuveen & Co. Incorporated, a wholly owned subsidiary of The
John Nuveen Company and the principal underwriter of Massachusetts, is in the
process of liquidating all remaining shareholder accounts and distributing final
dividends. As a result, Massachusetts has changed its basis of accounting to the
liquidation basis. Adoption of the liquidation basis of accounting had no
material affect on the financial statements of Massachusetts as assets and
liabilities are already stated at fair value.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Investments in each of the Funds consist of short-term municipal securities
maturing within one year from the date of acquisition. Securities with a
maturity of more than one year in all cases have variable rate and demand
features qualifying them as short-term securities and are valued at amortized
cost. On a dollar-weighted basis, the average maturity of all such securities
must be 90 days or less (at February 28, 1999, the dollar-weighted average life
was 37 days for Reserves, 29 days for California, 33 days for Massachusetts and
39 days for New York).
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. Any securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
February 28, 1999, there were no such outstanding purchase commitments in any of
the Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
Dividends and Distributions to Shareholders
Tax-exempt net investment income, adjusted for realized short-term gains and
losses on investment transactions, is declared as a dividend to shareholders of
record as of the close of each business day and payment is made or reinvestment
is credited to shareholder accounts after month-end.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its tax-exempt net
investment income, including any net realized capital gains from investment
transactions. Therefore, no federal income tax provision is required.
Furthermore, each Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular federal income tax and
designated state income taxes for the California, Massachusetts and New York
Funds, to retain such tax exempt status when distributed to the shareholders of
the Funds. All income dividends paid during the fiscal year ended February 28,
1999, have been designated Exempt Interest Dividends. Net realized capital gain
distributions, if any, are subject to federal taxation.
21
<PAGE>
Insurance Commitments
Commitments have been obtained (each a "Commitment") 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 the
Approved Banks 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 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.
Effective April 1, 1999, the Funds purchased liability insurance to protect
against a decline in the value of securities held in the Funds' Portfolio of
Investments caused by the default of securities owned by the Funds. This policy
replaces the similar insurance policy from MBIA Insurance Corp. described above.
The insurance covers substantially all of the Funds' investments except U.S.
government securities. The maximum total coverage for all Nuveen money market
funds is $50 million, with certain deductibles for each loss. The Funds pay the
policy premiums. Coverage under the policy is subject to certain conditions and
may not be renewable upon expiration. While the policy is intended to provide
some protection against credit risk and to help the Funds maintain a constant
price per share of $1.00, there is no guarantee that the insurance will do so.
Derivative Financial Instruments
The Funds may invest in transactions in certain derivative financial
instruments, including futures, forward, swap and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the future,
they did not make any such investments during the fiscal year ended February 28,
1999.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period. Actual results may differ
from those estimates.
2. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
municipal securities during the fiscal year ended February 28, 1999, were as
follows:
<TABLE>
<CAPTION>
Reserves California Massachusetts New York
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $657,972,030 $682,756,566 $67,167,093 $57,663,863
Sales and Maturities 675,535,000 667,008,000 64,825,000 51,750,000
==============================================================================
</TABLE>
At February, 28, 1999, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for each
Fund.
3. Composition of Net Assets
At February 28, 1999, 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 California Massachusetts New York
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in:
Service Plan series $ -- $ 113,761,490 $ 5,797,639 $ 2,180,165
Distribution Plan series -- 60,141,853 29,216,823 33,106,609
Institutional series -- 3,411,815 5,759,518 16,667
- --------------------------------------------------------------------------------------------------------------------
Net assets $ 252,354,156 $ 177,315,158 $ 40,773,980 $ 35,303,441
====================================================================================================================
Authorized shares 2,000,000,000 2,350,000,000 2,500,000,000 2,500,000,000
====================================================================================================================
</TABLE>
4. Management Fees and Other Transactions with Affiliates
Under the Funds' investment management agreement with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund pays
an annual management fee, payable monthly, at the rates set forth below which
are based upon the average daily net 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 million .500 of 1% .400 of 1%
For the next $500 million .475 of 1 .375 of 1
For net assets over $1 billion .450 of 1 .350 of 1
=================================================================
</TABLE>
22
<PAGE>
Notes to Financial Statements (continued)
Also, pursuant to a distribution agreement with the Funds, John Nuveen & Co.
Incorporated (the "Distributor"), a wholly owned subsidiary of The John Nuveen
Company, 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 and a Service Plan pursuant to which the
Distribution Plan series and the Service Plan series and the Distributor 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 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 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 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 those of its 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 or its affiliates.
5. Investment Composition
At February 28, 1999, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
<TABLE>
<CAPTION>
Reserves California Massachusetts New York
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Basic Materials 5% --% --% --%
Capital Goods 4 -- -- --
Consumer Cyclicals 4 -- -- 4
Consumer Staples -- 4 -- --
Education and Civic Organizations 7 -- 28 17
Health Care 19 16 17 5
Housing/Multifamily 1 17 16 9
Industrial/Other 7 -- -- 3
Long-Term Care 13 5 5 9
Tax Obligation/General 18 23 19 24
Tax Obligation/Limited 5 18 2 12
Transportation -- 4 -- 4
Utilities 12 4 3 7
Water and Sewer 5 9 10 6
- ----------------------------------------------------------------------------------------------------------
100% 100% 100% 100%
==========================================================================================================
</TABLE>
At February 28, 1999, certain investments in short-term municipal securities
have credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions (87% for Reserves,
89% for California, 74% for Massachusetts and 91% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
23
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout each period is as
follows:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------------------
Ratio Ratio
of Net of Net
RESERVES Ratio of Investment Ratio of Investment
Less Expenses Income Expenses Income to
Distributions to Average to Average to Average Average
Beginning Net from Net Ending Ending Net Assets Net Assets Net Assets Net Assets
Net Invest- Invest- Net Net Before Before After After
Year Ended Asset ment ment Asset Total Assets Reimburse- Reimburse- Reimburse- Reimburse-
February 28/29, Value Income (a) Income Value Return (000) ment ment ment (a) ment (a)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $1.00 $.03 $(.03) $1.00 2.85% $252,354 .80% 2.79% .75% 2.84%
1998 1.00 .03 (.03) 1.00 3.02 270,723 .81 2.96 .75 3.02
1997 1.00 .03 (.03) 1.00 2.87 304,087 .80 2.82 .75 2.87
1996 1.00 .03 (.03) 1.00 3.23 339,662 .79 3.18 .75 3.22
1995 1.00 .03 (.03) 1.00 2.46 351,606 .78 2.40 .75 2.43
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) After waiver of certain management fees or reimbursement of expenses, if
applicable, by Nuveen Advisory.
24
<PAGE>
Financial Highlights (continued)
Selected data for a share outstanding throughout each period is as
follows:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------------------
Ratio Ratio
of Net of Net
CALIFORNIA Ratio of Investment Ratio of Investment
Less Expenses Income Expenses Income to
Distributions to Average to Average to Average Average
Beginning Net from Net Ending Ending Net Assets Net Assets Net Assets Net Assets
Net Invest- Invest- Net Net Before Before After After
Year Ended Asset ment ment Asset Total Assets Reimburse- Reimburse- Reimburse- Reimburse-
February 28/29, Value Income (a) Income Value Return (000) ment ment ment (a) ment (a)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999
Service Plan $1.00 $.03 $(.03) $1.00 2.81% $113,761 .59% 2.75% .55% 2.79%
series
Distribution 1.00 .03 (.03) 1.00 2.81 60,142 .63 2.72 .55 2.80
Plan series
Institutional 1.00 .03 (.03) 1.00 2.92 3,412 .44 3.05 .44 3.05
series
1998
Service Plan 1.00 .03 (.03) 1.00 3.13 86,916 .58 3.09 .55 3.12
series
Distribution 1.00 .03 (.03) 1.00 3.13 54,789 .66 3.02 .55 3.13
Plan series
Institutional 1.00 .03 (.03) 1.00 3.22 18,791 .47 3.22 .47 3.22
series
1997
Service Plan 1.00 .03 (.03) 1.00 2.94 95,306 .59 2.89 .55 2.93
series
Distribution 1.00 .03 (.03) 1.00 2.94 57,490 .61 2.87 .55 2.93
Plan series
Institutional 1.00 .03 (.03) 1.00 3.02 32,843 .46 3.01 .46 3.01
series
1996
Service Plan 1.00 .03 (.03) 1.00 3.32 70,722 .56 3.28 .54 3.30
series
Distribution 1.00 .03 (.03) 1.00 3.31 73,020 .62 3.23 .55 3.30
Plan series
Institutional 1.00 .03 (.03) 1.00 3.40 34,392 .46 3.39 .46 3.39
series
1995
Service Plan 1.00 .03 (.03) 1.00 2.59 41,772 .59 2.15 .55 2.19
series
Distribution 1.00 .03 (.03) 1.00 2.60 67,157 .64 2.47 .55 2.56
Plan series
Institutional 1.00 .03 (.03) 1.00 2.69 50,772 .47 2.74 .47 2.74
series
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) After waiver of certain management fees or reimbursement of expenses, if
applicable, by Nuveen Advisory.
25
<PAGE>
Selected data for a share outstanding throughout each period is as
follows:
<TABLE>
<CAPTION>
Ratios/Supplemental Data
---------------------------------------------------------
Ratio Ratio
of Net of Net
MASSACHUSETTS Ratio of Investment Ratio of Investment
Less Expenses Income Expenses Income to
Distributions to Average to Average to Average Average
Beginning Net from Net Ending Ending Net Assets Net Assets Net Assets Net Assets
Net Invest- Invest- Net Net Before Before After After
Year Ended Asset ment ment Asset Total Assets Reimburse- Reimburse- Reimburse- Reimburse-
February 28/29, Value Income (a) Income Value Return (000) ment ment ment (a) ment (a)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999
Service Plan $1.00 $.03 $(.03) $1.00 2.76% $ 5,798 .74% 2.56% .55% 2.75%
series
Distribution 1.00 .03 (.03) 1.00 2.76 29,217 .85 2.44 .55 2.74
Plan series
Institutional 1.00 .03 (.03) 1.00 2.76 5,760 .66 2.58 .55 2.69
series
1998
Service Plan 1.00 .03 (.03) 1.00 3.05 6,085 .89 2.71 .55 3.05
series
Distribution 1.00 .03 (.03) 1.00 3.05 25,920 .95 2.65 .55 3.05
Plan series
Institutional 1.00 .03 (.03) 1.00 3.05 5,578 .68 2.91 .55 3.04
series
1997
Service Plan 1.00 .03 (.03) 1.00 2.84 9,964 .74 2.64 .55 2.83
series
Distribution 1.00 .03 (.03) 1.00 2.84 27,083 .90 2.49 .55 2.84
Plan series
Institutional 1.00 .03 (.03) 1.00 2.84 3,977 .61 2.78 .55 2.84
series
1996
Service Plan 1.00 .03 (.03) 1.00 3.17 38,251 .63 3.06 .55 3.14
series
Distribution 1.00 .03 (.03) 1.00 3.17 26,279 .84 2.87 .55 3.16
Plan series
Institutional 1.00 .03 (.03) 1.00 3.18 3,550 .57 3.12 .54 3.15
series
1995
Service Plan 1.00 .03 (.03) 1.00 2.53 27,732 .61 2.49 .55 2.55
series
Distribution 1.00 .03 (.03) 1.00 2.53 24,237 .82 2.28 .55 2.55
Plan series
Institutional 1.00 .03 (.03) 1.00 2.61 1,036 .47 2.63 .47 2.63
series
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) After waiver of certain management fees or reimbursement of expenses, if
applicable, by Nuveen Advisory.
26
<PAGE>
Financial Highlights (continued)
Selected data for a share outstanding throughout each period is as
follows:
Ratios/Supplemental Data
<TABLE>
<CAPTION>
NEW YORK
Less
Distributions
Beginning Net from Net Ending
Net Invest- Invest- Net
Year Ended Asset ment ment Asset Total
February 28/29, Value Income (a) Income Value Return
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999
Service Plan series $1.00 $.03 $(.03) $1.00 2.73%
Distribution Plan series 1.00 .03 (.03) 1.00 2.73
Institutional series 1.00 .03 (.03) 1.00 2.74
1998
Service Plan series 1.00 .03 (.03) 1.00 3.10
Distribution Plan series 1.00 .03 (.03) 1.00 3.10
Institutional series 1.00 .03 (.03) 1.00 3.10
1997
Service Plan series 1.00 .03 (.03) 1.00 2.90
Distribution Plan series 1.00 .03 (.03) 1.00 2.90
Institutional series 1.00 .03 (.03) 1.00 2.90
1996
Service Plan series 1.00 .03 (.03) 1.00 3.20
Distribution Plan series 1.00 .03 (.03) 1.00 3.20
Institutional series 1.00 .03 (.03) 1.00 3.20
1995
Service Plan series 1.00 .02 (.02) 1.00 2.36
Distribution Plan series 1.00 .02 (.02) 1.00 2.37
Institutional series 1.00 .02 (.02) 1.00 2.28
=====================================================================================
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Expenses Income Expenses Income to
to Average to Average to Average Average
Ending Net Assets Net Assets Net Assets Net Assets
Net Before Before After After
Year Ended Assets Reimburse- Reimburse- Reimburse- Reimburse-
February 28/29, (000) ment ment ment (a) ment (a)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1999
Service Plan series $ 2,180 .74% 2.46% .55% 2.65%
Distribution Plan series 33,107 .72 2.54 .55 2.71
Institutional series 17 1.01 2.26 .55 2.72
1998
Service Plan series 1,406 1.20 2.38 .55 3.03
Distribution Plan series 28,854 .89 2.75 .55 3.09
Institutional series 17 1.13 2.52 .55 3.10
1997
Service Plan series 414 1.27 2.17 .55 2.89
Distribution Plan series 26,116 .92 2.52 .55 2.89
Institutional series 17 1.12 2.33 .55 2.90
1996
Service Plan series 554 1.92 1.82 .55 3.19
Distribution Plan series 31,631 .94 2.80 .55 3.19
Institutional series 17 1.38 2.37 .55 3.20
1995
Service Plan series 640 .95 1.98 .55 2.38
Distribution Plan series 29,798 .79 2.14 .55 2.38
Institutional series 17 2.14 .79 .55 2.38
===================================================================================================
</TABLE>
(a) After waiver of certain management fees or reimbursement of expenses, if
applicable, by Nuveen Advisory.
27
<PAGE>
Report of Independent Public Accountants
To the Board of Directors and Shareholders of
Nuveen Tax-Free Reserves, Inc.
Nuveen California Tax-Free Fund, Inc.
Nuveen Tax-Free Money Market Fund, Inc.:
We have audited the accompanying statements of net assets of Nuveen Tax-Free
Reserves, Inc. (a Maryland Corporation), Nuveen California Tax-Free Fund, Inc.
(comprising the Nuveen California Tax-Free Money Market Fund) (a Maryland
Corporation) and Nuveen Tax-Free Money Market Fund, Inc. (comprising the Nuveen
Massachusetts (in the process of liquidation) and New York Tax-Free Money Market
Funds) (a Minnesota Corporation), including the portfolios of investments, as of
February 28, 1999, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years then
ended and the financial highlights for the periods indicated thereon. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1999, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As described in Note 1 to the financial statements, John Nuveen & Co.
Incorporated notified the shareholders of its intention to liquidate Nuveen
Massachusetts Tax-Free Money Market Fund ("Massachusetts"). Massachusetts will
cease operations after the close of business on May 7, 1999. As a result,
Massachusetts has changed its basis of accounting to the liquidation basis.
Adoption of the liquidation basis of accounting had no material affect on the
financial statements of Massachusetts as assets and liabilities are already
stated at fair value.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of each of the
respective funds constituting the Nuveen Tax-Free Reserves, Inc., Nuveen
California Tax-Free Fund, Inc. and Nuveen Tax-Free Money Market Fund, Inc. as of
February 28, 1999, the results of their operations for the year then ended, the
changes in their net assets for each of the two years then ended, and the
financial highlights for the periods indicated thereon in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois
April 12, 1999
28
<PAGE>
Building a Better Portfolio
Can Make You a Successful Investor
Nuveen Family
of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals.
Growth
Nuveen Rittenhouse Growth Fund
Growth and Income
European Value Fund
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
Dividend and Growth Fund
Income
Income Fund
Tax-Free Income
National Funds
Long-Term
Insured
Intermediate-Term
Limited Term
State Funds
Arizona
California
Colorado
Connecticut
Florida
Georgia
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
Wisconsin
Successful investors know that a well-diversified portfolio - one that balances
different types of investments, levels of risk, and tax management - can be the
foundation for building and sustaining wealth. That's why Nuveen offers you and
your financial adviser a wide range of quality investments that can help you
build a better portfolio in the pursuit of your financial goals.
Mutual Funds
Nuveen offers a family of equity, balanced, and municipal bond funds featuring
Premier Advisers/SM/ including Institutional Capital Corporation, Rittenhouse
Financial Services, and Nuveen Advisory Corp. Each brings a specialized
expertise in a particular investment style or asset class, time-tested
investment strategies, and a focus on consistent, long-term performance. With
Nuveen's Premier Adviser funds, you have all the advantages of a family of funds
plus the benefits of specialized investment expertise.
Private Asset Management
Rittenhouse Financial Services and Nuveen Asset Management offer comprehensive,
customized investment management solutions to investors with assets of $250,000
or more to invest. A range of actively managed growth, balanced, and municipal
income-oriented portfolios are available, all based upon a disciplined
investment philosophy.
Defined Portfolios
Nuveen Defined Portfolios are fixed portfolios of quality securities that are a
convenient, attractive alternative to purchasing individual securities. They
provide low-cost diversification to reduce risk, while also offering
experienced, professional security selection and surveillance. In addition,
Nuveen Defined Portfolios provide daily liquidity at that day's net asset value
for quick access to your assets.
Exchange-Traded Funds
Nuveen Exchange-Traded Funds offer investors actively managed portfolios of
investment-grade quality municipal bonds. The fund shares are listed and traded
on the New York and American stock exchanges. Exchange-traded funds provide the
investment convenience, price visibility and liquidity of common stocks.
MuniPreferred(R)
Nuveen MuniPreferred offers investors a AAA rated investment with an attractive
tax-free yield for the cash reserves portion of an investment portfolio.
MuniPreferred shares are backed 2-to-1 by the long-term portfolios of Nuveen
dual-class exchange-traded funds and are available for national as well as a
wide variety of state-specific portfolios.
29
<PAGE>
Fund Information
Board of Directors
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and
Shareholder Services
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
30
<PAGE>
Serving Investors for Generations
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
John Nuveen, Sr.
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today we offer a broad range of
quality investments designed for individuals seeking to build and sustain
wealth. In fact, more than 1.3 million investors have trusted Nuveen to help
them pursue their financial goals.
The cornerstone of Nuveen's investment philosophy is a commitment to disciplined
long-term investment strategies focused on providing consistent, attractive
performance over time. We emphasize quality securities carefully chosen through
in-depth research, and we follow those securities closely over time to ensure
that they continue to meet our exacting standards.
Whether your focus is long-term growth, dependable current income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. Our equity,
balanced, and tax-free income funds, along with our defined portfolios and
private asset management, can help you build a better, well-diversified
portfolio.
Talk with your financial adviser to learn more about how Nuveen investment
products and services can help you. Or call us at (800) 257-8787 for more
information, including a prospectus where applicable. Please read that
information carefully before investing.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
www.nuveen.com
