<PAGE>
NUVEEN
Investments
Money Market Funds
SEMIANNUAL REPORT AUGUST 31, 2000
For investors seeking tax-free income, stability and liquidity in a flexible
cash management investment.
[PHOTOS APPEARS HERE]
INVEST WELL
LOOK AHEAD
LEAVE YOUR MARK/SM/
Municipal
California Tax-Exempt
New York Tax-Exempt
<PAGE>
Contents
1 Dear Shareholder
3 Market Commentary
4 Fund Spotlight
5 Portfolio of Investments
13 Statement of Net Assets
14 Statement of Operations
15 Statement of Changes in Net Assets
17 Notes to Financial Statements
20 Financial Highlights
21 Fund Information
Must be preceded by or accompanied by a prospectus.
<PAGE>
Chairman of the Board
DEAR
Shareholder,
[PHOTO OF TIMOTHY R. SCHWERTFEGER CHAIRMAN OF THE BOARD APPEARS HERE]
Harvard University, Tiffany's and Dom Perignon are each the Rolls-Royce of its
market. Each is synonymous with "quality." Each has established, reinforced and
marketed its brand as one that consistently delivers a quality product -- be it
education, fine jewelry or champagne. Each has made a promise to its customers,
and each works hard to keep that promise, year after year.
Webster defines quality as the degree of excellence that a thing possesses.
Nuveen Investments defines quality by the excellence of our portfolio management
and products as well as of the financial advisors you, and our firm, work with.
Quality Portfolio Management and Products
Nuveen's income-oriented funds feature portfolio management by Nuveen Investment
Management (NIM). NIM follows a disciplined, research-driven investment approach
to uncover income securities that combine exceptional relative value with
above-average return potential. Drawing on 300 combined years of investment
experience, the Nuveen team of portfolio managers and research analysts offers:
. A commitment to exhaustive research
. An active, value-oriented investment style
. The unmatched presence of trading leverage of a market leader.
While you may be familiar with our municipal bond funds, you may not be
aware of the equity mutual funds we offer investors. Our two newest funds --
Nuveen Innovation and Nuveen International Growth -- were launched in December
1999. These funds are managed by Columbus Circle Investors (CCI), a firm that
has been managing money for more than 25 years and has used a single,
disciplined investment philosophy called "Positive Momentum and Positive
Surprise." This philosophy is based on the premise that:
. Strong companies tend to get stronger. CCI believes a company that
demonstrates positive momentum in its business fundamentals tends to generate
superior returns through rising stock prices. This represents the Positive
Momentum CCI seeks.
. Companies positively surprise when their business fundamentals and reported
results exceed investor and analyst expectations. CCI believes this is often
accompanied by strong, accelerating growth. This represents the Positive
Surprise CCI seeks.
Our Nuveen Rittenhouse Growth Fund is managed by Rittenhouse Financial
Services, Inc., a wholly owned subsidiary of the John Nuveen Company. The
investment philosophy Rittenhouse established years ago remains firmly in place
today -- pursue long-term growth with high-quality, large capitalization blue
chip stocks. This singular focus has translated into consistently strong risk-
adjusted returns and productive, long-lasting relationships.
SEMIANNUAL REPORT page 1
<PAGE>
We also offer several growth and income style funds, all managed by
Institutional Capital Corporation (ICAP), of which the John Nuveen Company holds
a minority interest. ICAP seeks out stocks it believes have appreciation
potential unrecognized by the general market for Nuveen Growth and Income Stock
Fund, Nuveen European Value Fund, Nuveen Balanced Stock and Bond Fund and Nuveen
Balanced Municipal and Stock Fund.
Quality Financial Advisors
Nuveen Investments works through financial advisors because we believe in
quality advice. Today, you face an unprecedented array of investment choices,
opportunities -- and risks. Your investment advisor can offer you the
professional assistance that will help bring to life your aspirations -- for
yourself and your family, today and in the future.
This Report
Please review your fund's Financial Spotlight to learn how it is positioned as
of its semiannual period, ended August 31, 2000. Also, I invite you to read the
following Market Commentary to learn more about the economic environment in
which your fund performed.
For more information on any Nuveen investment, including a prospectus, contact
your financial advisor. Or call Nuveen at (800) 621-7227 or visit our Internet
site at www.nuveen.com. Please read the prospectus carefully before you invest
or send money.
Thank you for your continued confidence.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 18, 2000
SEMIANNUAL REPORT page 2
<PAGE>
NUVEEN MUNICIPAL FUNDS
Market Commentary as of August 31, 2000
Municipal bonds performed well during the six-month period ended August 31,
2000. During this period, yields on long-term municipal bonds declined by
approximately 54 basis points, resulting in a corresponding rise in bond prices.
Three reasons account for this performance. First, the likelihood of a
Federal Reserve tightening -- in the view of the general market -- fell as signs
of inflation did not appear. Secondly, new issue supply in the municipal market
remained low. This was due in part to the fact that many municipalities have
been funding capital projects with current strong tax collections rather than
with long-term debt. Finally, volatility and lack-luster returns in the equity
market have increasingly turned investor attention to the municipal market.
During the period, credit spreads -- the basis point difference between
yields on high-grade bonds and low-grade bonds -- tightened. Still, compared
with credit spreads over the last several years, the spreads remained
attractive. Liquidity spreads -- the basis point difference between the yields
offered by sellers and yields demanded by buyers --remained wide and volatile
creating opportunities for value trading.
The strong economy continued to generate strong tax collections for
municipalities throughout the country. In addition to reducing the need for debt
issuance, the collections have contributed to improved credit quality among many
municipal issuers. The recent upgrade of New York City to A, its highest rating
in 25 years, illustrates this trend.
Among the noteworthy deals this quarter were two tobacco settlement-backed
bond issues, both on behalf of New York counties. In the $206 billion settlement
between 46 states and major tobacco companies, the states exchanged all smoking-
related claims for a stream of annual payments from the tobacco companies.
Several states and counties have come to market to borrow against the future
stream of payments. Proceeds of these transactions have been applied to several
different municipal purposes. We expect to see many more tobacco deals over the
next year.
A Look Ahead
We believe the Fed will remain on hold through the elections. As the
traditionally slow time of the year for the bond market -- summer -- has ended,
supply could increase incrementally. However, supply will likely remain
significantly below last year because of strong tax collections. Finally, we
believe that investors will increasingly shift money from the equity market to
the bond market if they see equity returns significantly lower than the past
several years.
SEMIANNUAL REPORT page 3
<PAGE>
Fund Spotlight as of August 31, 2000
NUVEEN MUNICIPAL MONEY MARKET FUND
Portfolio Statistics
Inception Date 11/82
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Net Assets $225.1 million
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Average Weighted Maturity 35.42 days
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Tax-Free Yields
7-Day Yield 3.29%
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30-Day Yield 3.21%
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Taxable Equivalent
(based on a federal income tax rate of 31%)
7-Day Yield 4.77%
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30-Day Yield 4.65%
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Diversification (as a % of market value)
Capital Goods 13%
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Housing (Multifamily) 13%
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Education and Civic Organizations 10%
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Industrial (Other) 9%
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Long-Term Care 9%
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Basic Materials 9%
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Tax Obligation (General) 8%
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Healthcare 7%
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Consumer Cyclicals 6%
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Tax Obligation (Limited) 4%
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Financials 4%
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Utilities 4%
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Consumer Staples 2%
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Transportation 2%
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NUVEEN CALIFORNIA TAX-EXEMPT MONEY MARKET FUND
Portfolio Statistics
Inception Date 3/86
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Net Assets $49.2 million
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Average Weighted Maturity 33.63 day
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Tax - Free Yields
7-Day Yield 2.67%
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30-Day Yield 2.64%
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Taxable Equivalent
(based on a combined federal and state income tax rate of 37.5%)
7-Day Yield 4.27%
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30-Day Yield 4.22%
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Diversification (as a % of market value)
Housing (Multifamily) 17%
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Utilities 16%
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Tax Obligation (General) 16%
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Healthcare 13%
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Tax Obligation (Limited) 13%
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Water and Sewer 10%
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Capital Goods 6%
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Consumer Staples 6%
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Financials 2%
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Long-Term Care 1%
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NUVEEN NEW YORK TAX-EXEMPT MONEY MARKET FUND
Portfolio Statistics
Inception Date 2/87
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Net Assets $ 33.0 million
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Average Weighted Maturity 31.98 days
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Tax - Free Yields
7-Day Yield 3.11%
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30-Day Yield 2.99%
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Taxable Equivalent
(based on a combined federal and state income
tax rate of 35.5%)
7-Day Yield 4.82%
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30-Day Yield 4.64%
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Diversification (as a % of market value)
Tax Obligation (General) 33%
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Education and Civic Organizations 23%
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Housing (Multifamily) 14%
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Utilities 8%
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Healthcare 7%
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Long-Term Care 6%
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Transportation 4%
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Consumer Cyclicals 3%
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Industrial (Other) 2%
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Past performance is no guarantee of future results.
Income may be subject to the alternative minimum tax.
An investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks to
preserve the value of an investment in the fund at $1.00 per share, it is
possible to lose money by investing in the fund.
SEMIANNUAL REPORT page 4
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Municipal Money Market Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama - 1.2%
$ 1,500 Industrial Development Board of the City of Citronelle, Alabama, Pollution Control Aa-2 $ 1,500,000
Revenue Bonds, Series 1992 Refunding (Akzo Chemicals Inc. Project), Variable Rate
Demand Bonds, 4.400%, 2/01/04+
1,250 Jefferson County, Alabama, Public Improvement Warrants, Series 1988 (Briarwood N/R 1,250,000
Presbyterian Church Project), Variable Rate Demand Bonds, 5.610%, 5/01/08+
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Colorado - 0.4%
1,000 Adams and Arapahoe Counties Joint School District 28, General Obligation Bonds, Series Aaa 1,000,587
1996B, 4.550%, 12/01/00
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Idaho - 1.3%
3,000 Idaho Housing and Finance Association, Balmoral Apartments Development, Series 2000, A-1 3,000,000
Variable Rate Demand Bonds, 4.450%, 5/01/32+ (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Illinois - 8.2%
910 Illinois Development Finance Authority (Fleetwood Systems, Inc. Project), Industrial N/R 910,000
Development Revenue Bonds, Variable Rate Demand Bonds, 4.450%, 5/01/10+
(Alternative Minimum Tax)
1,640 Illinois Development Finance Authority (Tella Tool and Manufacturing Company Project), N/R 1,640,000
Series 2000, Variable Rate Demand Bonds, 4.450%, 8/01/15+ (Alternative Minimum Tax)
7,000 Illinois Development Finance Authority, Pollution Control Revenue Bonds (Diamond-Star P-1 7,000,000
Motors Corporation Project), Series 1985, Variable Rate Demand Bonds, 4.800%, 12/01/08+
5,330 City of Chicago, Illinois (De La Salle Institute Project), Series 1997, Variable Rate A-1+ 5,330,000
Demand Bonds, 4.350%, 4/01/27+
1,065 County of Lake, Illinois, Industrial Development Revenue Bonds, Series 1996A (Lake County N/R 1,065,000
Press, Inc. Project), Variable Rate Demand Bonds, 4.450%, 4/01/16+ (Alternative Minimum Tax)
1,550 City of McHenry, Illinois, Multifamily Housing Revenue Refunding Bonds (Westside Crest N/R 1,550,000
Apartments Project), Series 1996A, Variable Rate Demand Bonds, 4.450%, 3/01/21+
(Alternative Minimum Tax)
1,000 City of McHenry, Illinois, Multifamily Housing Revenue Refunding Bonds (Fawn Ridge N/R 1,000,000
Apartments Project), Series 1998, Variable Rate Demand Bonds, 4.450%, 12/01/24+
(Alternative Minimum Tax)
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Indiana - 3.4%
3,615 City of Lawrence, Indiana, Economic Development Revenue Bonds, Series 1998 (Lawrence A-1 3,615,000
Affordable Housing, LLC Project), Variable Rate Demand Bonds, 4.300%, 9/01/28+
(Alternative Minimum Tax)
4,000 Tippecanoe School Corporation, Indiana, Temporary Loan Warrants, 4.750%, 12/29/00 N/R 4,005,629
------------------------------------------------------------------------------------------------------------------------------------
Iowa - 8.4%
10,000 Iowa Finance Authority, Solid Waste Disposal Revenue (Cedar River Paper Company), Series A-1+ 10,000,000
1995A, Variable Rate Demand Bonds, 4.450%, 5/01/25+ (Alternative Minimum Tax)
4,400 Iowa Higher Education Loan Authority, Private College Revenue Bonds (Maharishi University N/R 4,400,000
Project), Series 1999, Variable Rate Demand Bonds, 4.350%, 3/01/29+
2,900 City of Eddyville, Iowa, Industrial Development Revenue Bonds (Heartland Lysine, Inc. N/R 2,900,000
Project), Series 1985, Variable Rate Demand Bonds, 4.750%, 11/01/03+
1,500 Oskaloosa, Iowa (William Penn University Project), Series 2000, Variable Rate Demand A-1 1,500,000
Bonds, 4.400%, 7/01/20+
</TABLE>
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5
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Municipal Money Market Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Kansas - 3.3%
$ 2,400 Kansas Development Finance Authority (Hays Medical Center, Inc.), Series 2000N, Variable VMIG-1 $ 2,400,000
Rate Demand Revenue Bonds, 4.350%, 5/15/26+
5,000 City of Olathe, Kansas, Recreational Facilities Revenue Bonds, Series 1999B (YMCA of VMIG-1 5,000,000
Kansas City Project), Variable Rate Demand Bonds, 4.450%, 11/01/14+
------------------------------------------------------------------------------------------------------------------------------------
Kentucky - 8.2%
5,000 Kentucky Association of Counties, Tax and Revenue Anticipation Notes, Series 2000A, SP-1+ 5,019,719
Certificates of Participation, 5.000%, 6/29/01
9,005 Hancock County, Kentucky, Industrial Building Revenue Refunding Bonds (Southwire Company N/R 9,005,000
Project), Series 1990, Variable Rate Demand Bonds, 4.450%, 7/01/10+
1,600 Scottsville-Allen County Industrial Development Authority (Halton Company Project), N/R 1,600,000
Series 1998, Variable Rate Demand Bonds, 4.650%, 5/01/17+
2,825 City of Wilmore, Kentucky, Housing Facilities Revenue Bonds, Series 1999 (United N/R 2,825,000
Methodist Retirement Community, Inc. Project), Variable Rate Demand
Bonds, 4.430%, 11/01/26+
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Louisiana - 0.6%
1,410 Kentwood, Louisiana, Industrial Development Revenue Bonds, Series 1993 Refunding Aa-2 1,410,000
(Suntory Water Group Inc.), Variable Rate Demand Bonds, 4.400%, 8/01/12+
------------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 3.1%
7,000 Massachusetts Development Finance Authority, Senior Living Facility Revenue Bonds N/R 7,000,000
(Haskell House Senior Living Project), Series 2000, 5.000%, 10/27/00
------------------------------------------------------------------------------------------------------------------------------------
Michigan - 3.8%
7,100 Michigan Job Development Authority, Limited Obligation Revenue Bonds (Frankenmuth A-1 7,100,000
Bavarian Inn Motor Lodge Project), Series A, Variable Rate Demand
Bonds, 4.750%, 9/01/15+
1,375 Michigan Strategic Fund, Limited Obligation Revenue Bonds, Series 2000 (Fastco N/R 1,375,000
Industries, Inc. Project), Variable Rate Demand Bonds, 4.400%, 1/01/16+
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Minnesota - 2.1%
4,825 City of Bloomington, Minnesota, Commercial Revenue Bonds (James Avenue Associates A-1+ 4,825,000
Project), Series 1985, Variable Rate Demand Bonds, 4.300%, 12/01/15+
------------------------------------------------------------------------------------------------------------------------------------
Mississippi - 0.8%
1,800 Mississippi Business Finance Corporation, Universal Forest Products, Series 2000, N/R 1,800,000
Limited Obligation Revenue Bonds, Variable Rate Demand Bonds, 4.450%, 3/01/25+
(Alternative Minimum Tax)
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Missouri - 6.5%
4,000 Health and Educational Facilities Authority of the State of Missouri, Health Facilities VMIG-1 4,000,000
Revenue Bonds (Bethesda Barclay), Series 1996A, Variable Rate Demand
Bonds, 4.450%, 8/15/26+
2,150 Health and Educational Facilities Authority of the State of Missouri, School District SP-1+ 2,150,507
Advance Funding Notes, Series 1999L, Windsor C-1 School District, 4.250%, 9/19/00
1,500 Health and Educational Facilities Authority, Revenue Anticipation Notes, Series 2000C, N/R 1,500,000
Evangel College Assemblies of God GTD, 4.750%, 4/20/01
7,000 The Industrial Development Authority of the County of Jackson, Recreational Facilities VMIG-1 7,000,000
Revenue Bonds (YMCA of Greater Kansas City Project), Series 1996A, Variable
Rate Demand Bonds, 4.450%, 11/01/16+
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New Hampshire - 2.2%
4,900 New Hampshire Higher Educational and Health Facilities Authority, Revenue Bonds, Hunt A-1 4,900,000
Community Issue, Series 1996, Variable Rate Demand Bonds, 4.350%, 5/01/26+
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New Jersey - 0.5%
1,150 New Jersey Economic Development Authority, Economic Development Bonds (AJV Holdings, N/R 1,150,000
L.L.C. - 1999 Project), Variable Rate Demand Bonds, 4.550%, 12/01/14+
(Alternative Minimum Tax)
</TABLE>
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6
<PAGE>
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ohio - 16.0%
$ 2,000 Ohio School Districts, Cash Flow Borrowing Program, 5.130%, 6/29/01 MIG-1 $2,010,732
Certificates of Participation,
1,000 Ohio Housing Finance Agency, Residential Mortgage Revenue Notes (Mortgage-Backed MIG-1 1,000,000
Securities Program), 2000 Series A-2, 4.050%, 9/01/00 (Alternative Minimum Tax)
3,000 Canal Winchester, Local School District, Fairfield and Franklin Counties, Bond N/R 3,006,990
Anticipation Notes, Series 2000, 4.910%, 2/22/01
1,010 Cuyahoga County, Ohio, University Hospital Health Systems, Series 1999B, 5.000%, 1/15/01 Aaa 1,012,518
7,000 Cuyahoga County, Ohio, Multifamily Revenue Bonds (National Terminal Apartments Project), A-1 7,000,000
Series 1999A, Variable Rate Demand Bonds, 4.380%, 7/01/29+
5,005 County of Erie, Ohio, Health Care Facilities Revenue Bonds (The Commons of Providence VMIG-1 5,005,000
Project), Series 1996 B, Variable Rate Demand Bonds, 4.330%, 10/01/21+
3,300 Fairborn City School District, Greene County, Bond Anticipation Notes, Series 1999, N/R 3,300,454
School Improvement Bonds (General Obligation Unlimited Tax), 4.400%, 9/14/00
3,315 County of Franklin, Ohio, Hospital Financing Revenue Bonds, Series 1993 (Traditions at N/R 3,315,000
Mill Run Project), Variable Rate Demand Bonds, 4.380%, 11/01/14+
1,000 Grove City, Ohio, Multifamily Housing Mortgage Revenue Bonds (The Regency Arms Apartments SP-1+ 1,000,000
Project), Series 2000, Variable Rate Demand Bonds, 4.350%, 6/15/30+ (Alternative Minimum Tax)
6,500 Lorain County, Ohio, Industrial Development Multiple Mode Revenue Bonds (Skill Tools N/R 6,500,000
Project), Series 1999, Variable Rate Demand Bonds, 4.450%, 8/01/14+ (Alternative Minimum Tax)
2,610 City of Parma, Ohio, Industrial Development Revenue Bonds, Series 1999 (FDC Realty N/R 2,610,000
Project), Variable Rate Demand Bonds, 4.430%, 12/01/19+ (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Tennessee - 1.8%
4,000 The Industrial Development Board of the City of Memphis and County of Shelby, Tennessee, N/R 4,000,000
Industrial Development Refunding Revenue Bonds, Series 1999 (Techno Steel Corporation)
(Tomen Corporation Guarantor), Variable Rate Demand Bonds, 4.510%, 10/01/11+ (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Texas - 8.8%
1,800 Brazos River Authority, Pollution Control Revenue Bonds, Texas Utilities Electric VMIG-1 1,800,000
Company, Series 96C, Variable Rate Demand Bonds, 4.450%, 6/01/30+ (Alternative Minimum Tax)
1,300 Brownsville Industrial Development Corporation, Tella Tool and Manufacturing Company A-1 1,300,000
Project, Series 2000,Industrial Development Revenue Bonds, Variable Rate
Demand Bonds, 4.450%, 6/01/20+
5,000 Brownsville, Texas, Utilities System, Commercial Paper Notes, Series A, 4.150%, 10/20/00 A-1+ 5,000,000
8,400 Midlothian, Industrial Development Corporation, Exempt Facilities Revenue Bonds (Texas VMIG-1 8,400,000
Industries, Inc. Project), Variable Rate Demand Bonds, Series 1999, 4.450%, 5/01/29+
(Alternative Minimum Tax)
2,085 Rockwell Industrial Development Corporation, Industrial Development Revenue Bonds, Series P-1 2,085,000
1989 (Columbia Extrusion Corporation Project), Variable Rate Demand Bonds, 4.400%,
7/01/14+ (Alternative Minimum Tax)
1,300 Sabine River Authority of Texas, Collateralized Pollution Control Bonds (Texas Utilities A-1+ 1,300,000
Electric Company), Variable Rate Demand Bonds, 4.450%, 4/01/30+ (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Vermont - 1.4%
3,195 Vermont Economic Development Authority (Vermont Pure Springs, Inc. Project), 1999 Series N/R 3,195,000
A, Variable Rate Demand Bonds, 4.450%, 1/01/20+ (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Virginia - 1.0%
2,170 Virginia Small Business Financing Authority, Industrial Development Revenue Bonds, Series N/R 2,170,000
1999 (Coral Graphic Services of Virginia, Inc. Project), Variable Rate Demand Bonds,
4.450%, 11/01/06+ (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Washington - 9.4%
2,500 Washington State Housing Finance Commission (Mill Pointe Apartment Project), Series A-1 2,500,000
1999A, Variable Rate Demand Bonds, 4.450%, 1/01/30+ (Alternative Minimum Tax)
4,400 Washington Health Care Facilities Authority, Series 1984 (Adventist Health A-2 4,400,000
System-West/Walla Walla General Hospital), Variable Rate Demand Bonds, 4.700%, 9/01/09+
</TABLE>
____
7
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen Municipal Money Market Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Washington (continued)
$ 1,720 Washington State Housing Finance Commission, Multifamily Revenue Bonds (LTC Properties, A-1 $ 1,720,000
Inc. Project), Series 1995, Variable Rate Demand Bonds, 4.350%, 12/01/15+
(Alternative Minimum Tax)
1,775 Washington State Housing Finance Commission, Multifamily Revenue Bonds (Summer Ridge A-1 1,775,000
Apartments Project), Series 1999A, Variable Rate Demand Bonds, 4.450%, 12/02/29+
(Alternative Minimum Tax)
7,805 Washington State Housing Finance Commission, Multifamily Revenue Bonds, Series 1999A A-1 7,805,000
(Regency Park Apartments Project), Variable Rate Demand Bonds, 4.450%, 10/01/29+
(Alternative Minimum Tax)
3,000 Port Benton Economic Development Corporation, Solid Waste Revenue Bonds, Series 1999B N/R 3,000,000
(ATG Inc. Project), Variable Rate Demand Bonds, 4.350%, 11/01/14+
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
Wisconsin - 9.5%
7,600 Wisconsin Health and Educational Facilities Authority, Unit Priced Demand Adjustable VMIG-1 7,600,000
Revenue Bonds (Alexian Village of Milwaukee, Inc. - Refinancing), Series 1988A,
4.200%, 3/01/17+
3,500 Glendale-River Hills School District, Tax and Revenue Anticipation Notes, 4.750%, N/R 3,511,690
8/20/01 (WI)
3,400 City of Milwaukee, Wisconsin, Industrial Development Revenue Bonds, Series 1998 (Midwest N/R 3,400,000
Express Airlines, Inc. Project), Variable Rate Demand Bonds, 4.450%, 8/01/30+
(Alternative Minimum Tax)
1,050 City of New Berlin, Wisconsin, Industrial Development Revenue Bonds, Series 1992 N/R 1,050,000
(Wenninger Project), Variable Rate Demand Bonds, 4.450%, 4/01/07+
(Alternative Minimum Tax)
1,470 River Falls School District, St. Croix and Pierce Counties Anticipation Notes, Series MIG-1 1,472,984
2000A, 5.600%, 11/30/00
3,000 School District of Shorewood, Tax and Revenue Anticipation Promissory Notes, 4.600%, N/R 3,006,358
9/04/01+
1,300 Village of Winneconne, Wisconsin, Industrial Development Revenue Bonds, Series 2000 N/R 1,300,000
(Historic Floors of Oshkosh, Inc.
Project), Variable Rate Demand Bonds, 4.550%, 4/01/15+ (Alternative Minimum Tax)
$ 229,210 Total Investments - 101.9% 229,278,168
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.9)% (4,177,241)
---------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $225,100,927
---------------------------------------------------------------------------------------------------------------------
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's
rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
____
8
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Tax-Exempt Money Market Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital Goods - 6.1%
$ 3,000 California Pollution Control Financing Authority, Solid Waste Disposal, Series 1994A VMIG-1 $ 3,000,000
(Western Waste Industries), Variable Rate Demand Bonds, 3.950%, 10/01/06+
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
Consumer Staples - 6.1%
3,000 San Dimas (California), Industrial Development Revenue Bonds (Bausch and Lomb N/R 3,000,000
Incorporated), Series 1985, Variable Rate Demand Bonds, 4.500%, 12/01/15+
----------------------------------------------------------------------------------------------------------------------------------
Financials - 2.0%
1,000 California Statewide Communities Development Authority, Nonprofits' Insurance Alliance VMIG-1 1,000,000
of California, Series 2000A, Variable Rate Demand Bonds, 3.750%, 9/01/20+
----------------------------------------------------------------------------------------------------------------------------------
Healthcare - 13.0%
2,000 California Health Facilities Financing Authority, Insured Revenue Bonds, Series 1996B VMIG-1 2,000,000
(Sutter/CHS), Variable Rate Demand Bonds, 3.450%, 7/01/12+
2,000 California Health Facilities Financing Authority, Hospital Revenue Bonds, Series 1998A VMIG-1 2,000,000
(Adventist Health System West), Variable Rate Demand Bonds, 3.400%, 9/01/28+
2,400 The City of Newport Beach (Orange County, California), Revenue Bonds, Series 1992 (Hoag VMIG-1 2,400,000
Memorial Presbyterian Hospital), Variable Rate Demand Bonds, 3.550%, 10/01/22+
----------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 17.5%
2,000 Azusa, California, Multifamily Housing Revenue Refunding Bonds, Series 1994 (Pacific A-1+ 2,000,000
Glen Apartments Project), Variable Rate Demand Bonds, 3.600%, 7/15/15+
2,400 City of Chico, California, Multifamily Housing Revenue Refunding Bonds, Series 1995A N/R 2,400,000
(Sycamore Glen Project), Variable Rate Demand Bonds, 4.500%, 4/07/14+
1,000 Los Angeles Community Redevelopment Agency, Multifamily Housing Revenue Bonds, Series VMIG-2 1,000,000
1985 (Skyline at South Park Apartments - Phase II), Variable Rate Demand Bonds,
5.600%, 12/01/05+
1,000 Los Angeles Fountain Park - Phase II Project, Series 2000B, Variable Rate Demand Bonds, A-1+ 1,000,000
3.550%, 3/15/34+ (Alternative Minimum Tax)
2,200 Housing Authority of the County of Santa Cruz, Multifamily Housing Revenue Bonds (Paloma A-1+ 2,200,000
del Mar Apartments), 1992 Issue A, Variable Rate Demand Bonds, 3.850%, 6/01/22+
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 1.0%
500 City of Santa Ana, Multi-Modal Interchangeable Rate Health Facility Revenue Bonds (Town A-1 500,000
and Country Manor Project), Series 1990, Variable Rate Demand Bonds, 3.400%, 10/01/20+
----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/General - 15.5%
2,000 California Statewide Community Development Authority, Riverside County Tax and Revenue VMIG-1 2,000,000
Anticipation Notes, Series N-6, Trust Receipt Floaters, 4.000%, 10/04/01+
1,000 Irvine Ranch Water District, Series 1993, Variable Rate Demand Bonds, 3.600%, 4/01/33+ VMIG-1 1,000,000
2,300 New Haven Unified School District, Alameda County, Series 2000, Tax and Revenue SP-1+ 2,312,977
Anticipation Notes, 5.000%, 7/05/01
2,300 Petaluma City School District, Sonoma County, Series 2000, Tax and Revenue Anticipation SP-1+ 2,312,978
Notes, 5.000%, 7/05/01
----------------------------------------------------------------------------------------------------------------------------------
Tax Obligation/Limited - 13.0%
2,000 Hacienda La Puente Unified School District, Certificates of Participation, Adult VMIG-1 2,000,000
Education Facility Financing Project, Series 1999, Variable Rate Demand Bonds,
4.050%, 10/01/09+
2,400 Orange County (California), Improvement Bond Act of 1915, Irvine Coast Assessment VMIG-1 2,400,000
District No. 88-1, Limited Obligation Improvement Bonds, Variable Rate Demand
Bonds, 3.400%, 9/02/18+
</TABLE>
____
9
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen California Tax-Exempt Money Market Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/Limited (continued)
$ 2,000 San Joaquin County Transportation Authority, Sales Tax Revenue Bonds, Commercial Paper, A-1+ $ 2,000,000
3.900%, 9/28/00
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 15.7%
1,000 California Pollution Control Financing Authority, Equity Stanislaus Project, Variable VMIG-1 1,000,000
Rate Demand Bonds, 3.450%, 12/07/17+ (Alternative Minimum Tax)
2,200 California Pollution Control Financing Authority, Pollution Control Refunding Revenue A-1+ 2,200,000
Bonds (Pacific Gas and Electric Company), 1997 Series B, Variable Rate Demand Bonds,
3.500%, 11/01/26+ (Alternative Minimum Tax)
2,500 Los Angeles Department of Water and Power, Electric Plant Revenue Bonds, Second Issue of VMIG-1 2,500,000
2000, Series A, Variable Rate Demand Bonds, 3.500%, 2/01/10+
2,000 Los Angeles Department of Water and Power, Electric Plant Revenue Bonds, Commercial A-1+ 2,000,000
Paper Notes, 3.850%, 9/01/00
-----------------------------------------------------------------------------------------------------------------------------------
Water and Sewer - 9.6%
2,300 Metro Water District, Southern California, Series C, Variable Rate Demand Bonds, 3.550%, VMIG-1 2,300,000
7/01/27+
2,400 Orange County Sanitation District, Certificates of Participation, Variable Rate Demand VMIG-1 2,400,000
Bonds, 3.600%, 8/01/15+
-----------------------------------------------------------------------------------------------------------------------------------
$ 48,900 Total Investments - 99.5% 48,925,955
-----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.5% 264,175
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $49,190,130
=================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based
on market conditions or a specified market index.
See accompanying notes to financial statements.
_______
10
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New York Tax-Exempt Money Market Fund
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Consumer Cyclicals - 3.0%
$ 1,000 Dutchess County Industrial Development Agency, Industrial Development Revenue Bonds A-1 $ 1,000,000
(Toys "R" US-NYTEX Inc. Facility), Series 1984, Variable Rate Demand Bonds, 4.325%,
11/01/19+
------------------------------------------------------------------------------------------------------------------------------------
Education and Civic Organizations - 22.6%
1,400 Dormitory Authority of the State of New York, Cornell University Revenue Bonds, Series VMIG-1 1,400,000
1990B, Variable Rate Demand Bonds, 4.200%, 7/01/25+
1,300 Dormitory Authority of the State of New York, New York Founding Charitable Corporation VMIG-1 1,300,000
Revenue Bonds, Series 1997, Variable Rate Demand Bonds, 3.900%, 7/01/12+
1,360 Madison County Industrial Development Agency (New York), Civic Facility Revenue Bonds, A-2 1,360,000
Series 1999 (Cazenovia College), Variable Rate Demand Bonds, 4.450%, 6/01/19+
1,400 County of Monroe Industrial Development Agency (CHF - Rochester, L.L.C. - Rochester VMIG-1 1,400,000
Institute of Technology Project), Series 1999A, Variable Rate Demand Bonds, 4.250%,
6/01/29+
1,000 New York City Trust for Cultural Resources (Guggenheim Foundation), Variable Rate VMIG-1 1,000,000
Demand Bonds, 4.150%, 12/01/15+
1,000 New York City Industrial Development Agency, Civic Facility Revenue Bonds (2000 CASA A-1+ 1,000,000
Project), Variable Rate Demand Bonds, 4.350%, 3/01/20+
------------------------------------------------------------------------------------------------------------------------------------
Healthcare - 7.3%
1,000 New York State Dormitory Authority, Sloan Kettering Cancer Center, Series 1989C, VMIG-1 1,000,000
Variable Rate Demand Bonds, 4.000%, 7/01/19+
1,400 New York State Housing Finance Agency, The Hospital for Special Surgery, Series 1985A, VMIG-1 1,400,000
HSS Properties Corporation, Variable Rate Demand Bonds, 4.150%, 11/01/10+
------------------------------------------------------------------------------------------------------------------------------------
Housing/Multifamily - 14.6%
1,000 New York City Housing Development Corporation, Multifamily Rental Housing Revenue Bonds A-1+ 1,000,000
(Brittany Development), 1999 Series A, Variable Rate Demand Bonds, 4.100%, 6/15/29+
(Alternative Minimum Tax)
1,000 New York City Housing Development Corporation, Multifamily Rental Housing Revenue Bonds A-1+ 1,000,000
(One Columbus Place Development), 1998 Series A, Variable Rate Demand Bonds, 4.100%,
11/15/28+ (Alternative Minimum Tax)
1,400 New York State Housing Finance Agency, Housing Revenue Bonds, Series 1995A (East 84th VMIG-1 1,400,000
Street), Variable Rate Demand Bonds, 4.100%, 11/01/28+ (Alternative Minimum Tax)
1,400 New York City Housing Development Corporation (Upper Fifth Avenue Project), Variable VMIG-1 1,400,000
Rate Demand Bonds, Variable Rate Demand Bonds, 4.250%, 1/01/16+
------------------------------------------------------------------------------------------------------------------------------------
Industrial/Other - 2.4%
800 Guilderland Industrial Development Agency, Industrial Development Revenue Bonds P-1 800,000
(Northeastern Industrial Park Project), Series 1993A, Variable Rate Demand Bonds,
4.100%, 12/01/08+
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Care - 6.4%
700 New York State Dormitory Authority, Revenue Bonds, Series 1995 (Beverwyck Inc.), VMIG-1 700,000
Variable Rate Demand Bonds, 4.300%, 7/01/25+
1,400 County of Otsego Industrial Development Agency (New York), Civic Facility Revenue Bonds A-2 1,400,000
(St. James Retirement Community Project - Letter of Credit Secured), Series 1998A,
Variable Rate Demand Bonds, 4.100%, 8/01/28+
</TABLE>
________
11
<PAGE>
Portfolio of Investments (Unaudited)
Nuveen New York Tax-Exempt Money Market Fund (continued)
August 31, 2000
<TABLE>
<CAPTION>
Principal Amortized
Amount (000) Description Ratings* Cost
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Tax Obligation/General - 32.7%
$ 1,000 State of New York, General Obligation Bonds, Variable Rate Demand Bonds, VMIG-1 $ 1,000,000
Series 2000A, 4.400%, 2/08/01+
1,400 State of New York, General Obligation Environmental Quality Bonds, Commercial Paper A-1+ 1,400,000
Notes, Series 1997A, 4.200%, 10/11/00
1,000 Mahopac Central School District, Putnam County, Bond Anticipation Notes, 2000 Series A, A-1 1,000,000
4.500%, 9/01/00
1,000 Nassau County, Revenue Anticipation Notes, Series 2000A, 6.000%, 3/20/01 MIG-1 1,008,083
1,300 City of New York, General Obligation Bonds, Fiscal 1995 Series B, Variable Rate VMIG-1 1,300,000
Demand Bonds, 4.150%, 8/15/05+
1,400 City of New York, General Obligation Bonds, Fiscal 1996 Series J - Subseries J3, VMIG-1 1,400,000
Variable Rate Demand Bonds, 4.100%, 2/15/16+
1,400 Pelham Union Free School District, Westchester County, Tax Anticipation Notes, Series N/R 1,401,416
2000, 4.750%, 11/16/00
1,000 Valley Stream Central High School District, Nassau County, General Obligation Bonds, MIG-1 1,003,169
4.750%, 6/28/01
1,250 County of Westchester, New York, General Obligation Serial Bonds, 1997 Series D, 4.625%, Aaa 1,251,794
11/15/00
------------------------------------------------------------------------------------------------------------------------------------
Transportation - 4.2%
1,400 Metropolitan Transportation Authority, New York, Transit Facilities, Commercial Paper A-1+ 1,400,000
Notes, 4.100%, 9/07/00
------------------------------------------------------------------------------------------------------------------------------------
Utilities - 7.9%
1,400 New York State Energy Research and Development Authority (Niagara Mohawk Power P-1 1,400,000
Corporation), Pollution Control Revenue Bonds, Series 1986A, Variable Rate
Demand Bonds, 4.250%, 12/01/26+ (Alternative Minimum Tax)
1,200 Long Island Power Authority, Commercial Paper Notes, 4.100%, 9/05/00 A-1+ 1,200,000
------------------------------------------------------------------------------------------------------------------------------------
$ 33,310 Total Investments - 101.1% 33,324,462
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.1)% (346,497)
------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 32,977,965
==================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
________
12
<PAGE>
Statement of Net Assets (Unaudited)
August 31, 2000
<TABLE>
<CAPTION>
Municipal California New York
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments in short-term municipal securities, at
amortized cost, which approximates market value $ 229,278,168 $ 48,925,955 $ 33,324,462
Receivables:
Fund manager 187,573 14,187 12,493
Interest 1,245,501 290,905 169,783
Shares sold 671,107 246,048 81,982
Other assets 1,112 476 165
----------------------------------------------------------------------------------------------------------------------
Total assets 231,383,461 49,477,571 33,588,885
----------------------------------------------------------------------------------------------------------------------
Liabilities
Cash overdraft 229,998 16,227 411,747
Payables:
Investments purchased 3,511,690 -- --
Shares redeemed 1,383,430 43,300 56,056
Accrued expenses:
12b-1 fees 205,924 49,462 32,547
Other 340,325 71,323 27,073
Dividends payable 611,167 107,129 83,497
----------------------------------------------------------------------------------------------------------------------
Total liabilities 6,282,534 287,441 610,920
----------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding $ 225,100,927 $ 49,190,130 $ 32,977,965
======================================================================================================================
Shares outstanding 225,100,927 49,190,130 32,977,965
======================================================================================================================
Net asset value, offering and redemption price per share
(net assets divided by shares outstanding) $ 1.00 $ 1.00 $ 1.00
======================================================================================================================
</TABLE>
See accompanying notes to financial statements.
-----
13
<PAGE>
Statement of Operations (Unaudited)
Six Months Ended August 31, 2000
<TABLE>
<CAPTION>
Municipal California New York
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income $ 5,049,502 $ 964,900 $ 668,721
--------------------------------------------------------------------------------------------------------------------
Expenses
Management fees 575,606 99,880 65,075
12b-1 fees 232,914 62,425 40,672
Shareholders' servicing agent fees and expenses 362,690 30,911 19,115
Custodian's fees and expenses 25,152 17,218 15,827
Trustees' fees and expenses 3,868 1,278 687
Professional fees 67,121 25,978 13,937
Shareholders' reports - printing and mailing expenses 102,869 71,198 48,078
Federal and state registration fees 15,612 9,723 225
Portfolio insurance expense 17,611 5,517 3,033
Other expenses 10,458 7,347 1,976
--------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 1,413,901 331,475 208,625
Custodian fee credit (1,184) (76) (1,180)
Expense reimbursement (193,000) (66,216) (44,906)
--------------------------------------------------------------------------------------------------------------------
Net expenses 1,219,717 265,183 162,539
--------------------------------------------------------------------------------------------------------------------
Net investment income 3,829,785 699,717 506,182
Net realized gain from investment transactions -- -- --
--------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 3,829,785 $ 699,717 $ 506,182
====================================================================================================================
</TABLE>
See accompanying notes to financial statements.
-----
14
<PAGE>
Statements of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Municipal
---------------------------------------------
Six Months Ended Year Ended
8/31/00 2/29/00
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 3,829,785 $ 6,986,777
Net realized gain from investment transactions -- --
--------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 3,829,785 6,986,777
--------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (3,829,785) (6,986,777)
--------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from sale of shares 47,824,537 163,405,512
Net proceeds from shares issued to shareholders due to reinvestment of distributions 4,052,963 6,413,805
--------------------------------------------------------------------------------------------------------------------------------
51,877,500 169,819,317
Cost of shares redeemed (69,475,059) (179,474,987)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (17,597,559) (9,655,670)
Net assets at the beginning of period 242,698,486 252,354,156
--------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 225,100,927 $ 242,698,486
================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
----
15
<PAGE>
Statements of Changes in Net Assets (Unaudited)(continued)
<TABLE>
<CAPTION>
California New York
-------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
8/31/00 2/29/00* 8/31/00 2/29/00**
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 699,717 $ 973,585 $ 506,182 $ 886,337
Net realized gain from investment transactions -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 699,717 973,585 506,182 886,337
------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (699,717) (973,585) (506,182) (886,337)
------------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share)
Net proceeds from shares issued in the reorganization
of Nuveen California Tax-Free Money Market Fund
Institutional series -- 3,634,486 -- --
Net proceeds from shares issued in the reorganization
of Nuveen New York Tax-Free Money Market Fund
Service Plan series -- -- -- 1,473,077
Net proceeds from shares issued in the reorganization
of Nuveen New York Tax-Free Money Market Fund
Institutional series -- -- -- 16,667
Net proceeds from sale of shares 15,983,457 103,596,018 5,983,012 40,147,717
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 669,406 615,227 556,443 832,491
------------------------------------------------------------------------------------------------------------------------------------
16,652,863 107,845,731 6,539,455 42,469,952
Cost of shares redeemed (22,976,411) (166,093,543) (5,207,666) (43,930,385)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (6,323,548) (58,247,812) 1,331,789 (1,460,433)
Net assets at the beginning of period 55,513,678 113,761,490 31,646,176 33,106,609
------------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $ 49,190,130 $ 55,513,678 $ 32,977,965 $ 31,646,176
====================================================================================================================================
</TABLE>
*The year ended February 29, 2000, information includes the change in net
assets of the Service Plan series of the Nuveen California Tax-Free Money
Market Fund through June 25, 1999, and the changes in net assets of the Nuveen
California Tax-Exempt Money Market Fund from such date through February 29,
2000.
**The year ended February 29, 2000, information includes the changes in net
assets of the Distribution Plan series of the Nuveen New York Tax-Free Money
Market Fund through June 25, 1999, and the changes in net assets of the Nuveen
New York Tax-Exempt Money Market Fund from such date through February 29,
2000.
See accompanying notes to financial statements.
_____
16
<PAGE>
Notes to Financial Statements (Unaudited)
1. General Information and Significant Accounting Policies
The money market funds (the "Funds") covered in this report are Nuveen Municipal
Money Market Fund, Inc. ("Municipal"), formerly, Nuveen Tax-Free Reserves, Inc.,
Nuveen California Tax-Exempt Money Market Fund ("California"), formerly, Nuveen
California Tax-Free Money Market Fund and Nuveen New York Tax-Exempt Money
Market Fund ("New York"), formerly, Nuveen New York Tax-Free Money Market Fund.
Nuveen California Tax-Free Money Market Fund and Nuveen New York Tax-Free Money
Market Fund were reorganized after the close of business on June 25, 1999, as
previously approved by shareholders. As part of the reorganization of the Nuveen
California Tax-Free Money Market Fund, the Service Plan series and the
Institutional series were consolidated and renamed Class A in California. As
part of the reorganization of the Nuveen New York Tax-Free Money Market Fund,
the Service Plan series, the Distribution Plan series and the Institutional
series were consolidated into New York.
Municipal is an open-end, diversified management company incorporated as a
Maryland corporation on July 6, 1982. California and New York are each a series
of the Nuveen Money Market Trust, an open-end management series investment
company organized as a Massachusetts business trust on January 15, 1999.
Each Fund invests substantially all of its assets in a diversified portfolio of
high quality, tax-exempt money market instruments for current income, the
stability of principal, and the maintenance of liquidity.
Each Fund issues its own shares at net asset value, which the Fund will seek to
maintain at $1.00 per share, without a sales charge.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
Each Fund invests in short-term municipal securities maturing within one year
from the date of acquisition. Securities with a maturity of more than one year
in all cases have variable rate and demand features qualifying them as short-
term securities and are valued at amortized cost. On a dollar-weighted basis,
the average maturity of all such securities must be 90 days or less (at August
31, 2000, the dollar-weighted average life was 35.42 days for Municipal, 33.63
days for California, and 31.98 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
August 31, 2000, Municipal had an outstanding when-issued purchase commitment of
$3,511,690. There were no such outstanding purchase commitments in either
California or New York.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared as a dividend to shareholders of
record as of the close of each business day and payment is made or reinvestment
is credited to shareholder accounts after month-end. Net realized capital gains
from investment transactions and/or net ordinary taxable income, if any, are
declared and distributed to shareholders annually. Furthermore, capital gains
are distributed only to the extent they exceed available capital loss
carryforwards.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all of its tax-exempt net investment income, taxable
ordinary income and/or net realized capital gains from investment transactions,
if any, and to otherwise comply with the requirements of Subchapter M of the
Internal Revenue Code applicable to regulated investment companies. Therefore,
no federal income tax provision is required. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal income tax and designated state income taxes for
the California and New York Funds, to retain such tax-exempt status when
distributed to the shareholders of the Funds. Net ordinary taxable income and
net realized capital gain distributions, if any, are subject to federal
taxation.
_____
17
<PAGE>
Notes to Financial Statements (Unaudited) (continued)
12b-1 Plan
Each Fund pays a fee to reimburse Nuveen Investments ("Nuveen"), a wholly owned
subsidiary of The John Nuveen Company, the Funds' principal underwriter and
distributor, for compensating authorized dealers of record, including Nuveen,
for providing ongoing services to the Fund or its shareholders. Nuveen may pay
additional amounts to such firms from its own resources at its discretion, and
may retain any portion of the 12b-1 fees not paid to such firms.
Insurance Commitments
The Funds have purchased liability insurance to protect against a decline in the
value of securities held in the Funds' portfolio caused by the default of
securities owned by the Funds. 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 six months ended August 31,
2000.
Custodian Fee Credit
Each Fund has an agreement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results may differ from those estimates.
2. Securities Transactions
Purchases and sales (including maturities) of investments in short-term
municipal securities during the six months ended August 31, 2000, were as
follows:
Municipal California New York
--------------------------------------------------------------------------------
Purchases $ 145,280,267 $ 61,480,774 $ 21,667,198
Sales 158,077,788 67,685,000 21,040,000
--------------------------------------------------------------------------------
At August 31, 2000, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for each
Fund.
At February 29, 2000, the Funds' last fiscal year end, California had unused
capital loss carryforwards of $25,566 available for federal income tax purposes
to be applied against future capital gains if any. If not applied, $18,364 of
the carryforwards will expire in the year 2003 and $7,202 will expire in the
year 2008.
3. Composition of Net Assets
At August 31, 2000, the Funds had common stock authorized of $.01 par value per
share. The composition of net assets as well as the number of authorized shares
were as follows:
<TABLE>
<CAPTION>
Municipal California New York
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid in $ 225,100,927 $ 49,215,696 $ 32,977,965
Accumulated net realized gain (loss)
from investment transactions -- (25,566) --
-----------------------------------------------------------------------------------------------
Net assets $ 225,100,927 $ 49,190,130 $ 32,977,965
===============================================================================================
Authorized shares 2,000,000,000 Unlimited Unlimited
===============================================================================================
</TABLE>
_____
18
<PAGE>
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 assets of each Fund as follows:
Management Fees
---------------------------------------------
Average Daily Net Assets Municipal CA, NY
--------------------------------------------------------------------------------
For the first $125 million .5000 of 1% .4000 of 1%
For the next $125 million .4875 of 1 .3875 of 1
For the next $250 million .4750 of 1 .3750 of 1
For the next $500 million .4625 of 1 .3625 of 1
For the next $1 billion .4500 of 1 .3500 of 1
For net assets over $2 billion .4250 of 1 .3250 of 1
================================================================================
The Adviser may voluntarily reimburse expenses from time to time, which may be
terminated at any time at its discretion.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
5. Investment Composition
At August 31, 2000, the revenue sources by municipal purpose, expressed as a
percent of total investments, were as follows:
Municipal California New York
--------------------------------------------------------------------------------
Basic Materials 9% --% --%
Capital Goods 13 6 --
Consumer Cyclicals 6 -- 3
Consumer Staples 2 6 --
Education and Civic Organizations 10 -- 23
Financials 4 2 --
Healthcare 7 13 7
Housing/Multifamily 13 17 14
Industrial/Other 9 -- 2
Long-Term Care 9 1 6
Tax Obligation/General 8 16 33
Tax Obligation/Limited 4 13 --
Transportation 2 -- 4
Utilities 4 16 8
Water and Sewer -- 10 --
--------------------------------------------------------------------------------
100% 100% 100%
================================================================================
At August 31, 2000, certain investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance) issued by third
party domestic or foreign banks or other institutions (86% for Municipal, 91%
for California, and 86% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
_____
19
<PAGE>
Financial Highlights (Unaudited)
Selected data for a share outstanding throughout each period:
<TABLE>
<CAPTION>
---------------------------------------------
Before Credit/
Reimbursement
------------------------------
MUNICIPAL Ratio
Less of Net
Beginning Distributions Ratio of Investment
Net Net from Net Ending Ending Expenses Income
Year Ended Asset Investment Investment Net Asset Total Net Assets to Average to Average
February 28/29, Value Income Income Value Return (000) Net Assets Net Assets
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2001 (c) $ 1.00 $ .02 $(.02) $ 1.00 1.66% $ 225,101 1.21%* 3.12%*
2000 1.00 .03 (.03) 1.00 2.79 242,698 1.03 2.53
1999 1.00 .03 (.03) 1.00 2.85 252,354 .80 2.79
1998 1.00 .03 (.03) 1.00 3.02 270,723 .81 2.96
1997 1.00 .03 (.03) 1.00 2.87 304,087 .80 2.82
1996 1.00 .03 (.03) 1.00 3.23 339,662 .79 3.18
====================================================================================================================================
<CAPTION>
Ratios/Supplement Data
----------------------------------------------------------------------
After After Credit/
Reimbursement(a) Reimbursement(b)
------------------------ ------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Expenses Income Expenses Income
Year Ended to Average to Average to Average to Average
February 28/29, Net Assets Net Assets Net Assets Net Assets
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
2001 (c) 1.05%* 3.29%* 1.05%* 3.29%*
2000 .77 2.79 .77 2.79
1999 .75 2.84 .75 2.84
1998 .75 3.02 .75 3.02
1997 .75 2.87 .75 2.87
1996 .75 3.22 .75 3.22
======================================================================
</TABLE>
* Annualized.
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) For the six months ended August 31, 2000.
<TABLE>
<CAPTION>
---------------------------------------------
Before Credit/
Reimbursement
------------------------------
CALIFORNIA** Ratio
Less of Net
Beginning Distributions Ratio of Investment
Net Net from Net Ending Ending Expenses Income
Year Ended Asset Investment Investment Net Asset Total Net Assets to Average to Average
February 28/29, Value Income Income Value Return (000) Net Assets Net Assets
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2001 (c) $ 1.00 $ .01 $(.01) $ 1.00 1.42% $ 49,190 1.33%* 2.53%*
2000 (d) 1.00 .03 (.03) 1.00 2.65 55,514 .93 2.23
1999 1.00 .03 (.03) 1.00 2.81 113,761 .59 2.75
1998 1.00 .03 (.03) 1.00 3.13 86,916 .58 3.09
1997 1.00 .03 (.03) 1.00 2.94 95,306 .59 2.89
1996 1.00 .03 (.03) 1.00 3.32 70,722 .56 3.28
====================================================================================================================================
<CAPTION>
Ratios/Supplement Data
----------------------------------------------------------------------
After After Credit/
Reimbursement(a) Reimbursement(b)
------------------------ ------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Expenses Income Expenses Income
Year Ended to Average to Average to Average to Average
February 28/29, Net Assets Net Assets Net Assets Net Assets
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
2001 (c) 1.06%* 2.80%* 1.06%* 29%*
2000 (d) .58 2.58 .58 2.58
1999 .55 2.79 .55 2.79
1998 .55 3.12 .55 3.12
1997 .55 2.93 .55 2.93
1996 .54 3.30 .54 3.30
======================================================================
</TABLE>
* Annualized.
** Information included prior to the year ended February 29, 2000, reflects
the financial highlights of the Service Plan series of the Nuveen
California Tax-Free Money Market Fund.
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) For the six months ended August 31, 2000.
(d) Information includes the financial highlights of the Service Plan series of
the Nuveen California Tax-Free Money Market Fund through the close of
business on June 25, 1999, and the financial highlights of the Nuveen
California Tax-Exempt Money Market Fund from such date through February 29,
2000.
<TABLE>
<CAPTION>
---------------------------------------------
Before Credit/
Reimbursement
------------------------------
NEW YORK** Ratio
Less of Net
Beginning Distributions Ratio of Investment
Net Net from Net Ending Ending Expenses Income
Year Ended Asset Investment Investment Net Asset Total Net Assets to Average to Average
February 28/29, Value Income Income Value Return (000) Net Assets Net Assets
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2001 (c) $ 1.00 $ .02 $(.02) $ 1.00 1.56% $ 32,978 1.28%* 2.83%*
2000 (d) 1.00 .03 (.03) 1.00 2.73 31,646 .89 2.41
1999 1.00 .03 (.03) 1.00 2.73 33,107 .72 2.54
1998 1.00 .03 (.03) 1.00 3.10 28,854 .89 2.75
1997 1.00 .03 (.03) 1.00 2.90 26,116 .92 2.52
1996 1.00 .03 (.03) 1.00 3.20 31,631 .94 2.80
====================================================================================================================================
<CAPTION>
Ratios/Supplement Data
----------------------------------------------------------------------
After After Credit/
Reimbursement(a) Reimbursement(b)
------------------------ ------------------------
Ratio Ratio
of Net of Net
Ratio of Investment Ratio of Investment
Expenses Income Expenses Income
Year Ended to Average to Average to Average to Average
February 28/29, Net Assets Net Assets Net Assets Net Assets
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
2001 (c) 1.01%* 3.10%* 1.00%* 3.11%*
2000 (d) .58 2.72 .57 2.72
1999 .55 2.70 .55 2.71
1998 .55 3.09 .55 3.09
1997 .55 2.89 .55 2.89
1996 .55 3.19 .55 3.19
======================================================================
</TABLE>
* Annualized.
** Information included prior to the year ended February 29, 2000, reflects
the financial highlights of the Distribution Plan series of the Nuveen New
York Tax-Free Money Market Fund.
(a) After expense reimbursement from the investment adviser, where applicable.
(b) After custodian fee credit and expense reimbursement, where applicable.
(c) For the six months ended August 31, 2000.
(d) Information includes the financial highlights of the Distribution Plan
series of the Nuveen New York Tax-Free Money Market Fund prior to the close
of business on June 25, 1999, and the financial highlights of the Nuveen
New York Tax-Exempt Money Market Fund from such date through February 29,
2000.
See accompanying notes to financial statements.
_____
20
<PAGE>
Fund Information
Board of Trustees
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Transfer Agent and Shareholder Services
Chase Global Funds Services
73 Tremont Street
Boston, MA 02108
(800) 257-8787
Legal Counsel
Morgan, Lewis &
Bockius LLP
Washington, D.C.
Independent Public Accountants
Arthur Andersen LLP
Chicago, IL
NASD Regulation, Inc. provides a Public Disclosure Program which supplies
certain information regarding the disciplinary history of NASD members and their
associated persons in response to either telephone inquiries at (800) 289-9999
or written inquiries at www.nasdr.com. NASD Regulation, Inc. also provides an
investor brochure that includes information describing the Public Disclosure
Program.
______
21
<PAGE>
Serving
Investors
For Generations
A 100-Year Tradition of Quality Investments
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
John Nuveen, Sr.
Since 1898, Nuveen Investments has been synonymous with investments that
withstand the test of time. In fact, more than 1.3 million investors have
trusted Nuveen to help them build and sustain the wealth of a lifetime.
Whether your focus is long-term growth, dependable income or sustaining
accumulated wealth, Nuveen offers a wide variety of investments and services to
help meet your unique circumstances and financial planning needs. We can help
you build a better, well-diversified portfolio.
Call Your Financial Advisor Today
To find out how Nuveen Mutual Funds might round out your investment portfolio,
contact your financial advisor today. Or call Nuveen at (800) 257-8787 for more
information. Ask your advisor or call for a prospectus, which details risks,
fees and expenses. Please read the prospectus carefully before you invest.
Nuveen
Investments
Nuveen Investments
333 West Wacker Drive
Chicago, Illinois 60606-1286
www.nuveen.com
