<PAGE>
[NUVEEN LOGO]
Nuveen Tax-Free
Mutual Funds [PHOTOGRAPH APPEARS HERE]
Dependable tax-free
income for generations
CALIFORNIA
CALIFORNIA INSURED
MASSACHUSETTS
MASSACHUSETTS INSURED
NEW YORK
NEW YORK INSURED
OHIO
SEMIANNUAL REPORT/AUGUST 31, 1996
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
12 Portfolio of investments
59 Statement of net assets
61 Statement of operations
63 Statement of changes in net assets
67 Notes to financial statements
78 Financial highlights
<PAGE>
Dear
shareholder
[PHOTO OF TIMOTHY R. SCHWERTFEGER APPEARS HERE]
" Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors."
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen mutual funds,
I am pleased to have this opportunity to report to you on the performance of
your funds. My experience at Nuveen over the past 19 years has shaped my
commitment to maintaining Nuveen's tradition of value investing and prudent
management. Our goal is to help our shareholders meet their need for tax-free
investment income with a full range of investment choices. We continue to focus
on providing attractive levels of income, diversification, and professional
research-oriented management, in the belief that this focus will contribute to
many more years of investment success for our fund shareholders. The performance
of the mutual funds covered in this report demonstrates the ability of quality
investments to provide attractive tax-free income. As of August 31, 1996,
current yields on net asset values for R shares for these funds ranged from
4.51% to 5.11%. To match these yields, an investor in the 36% federal income tax
bracket would have had to earn at least 7.05% on taxable alternatives. When
state taxes are taken into account, the power of tax-free investing is even more
apparent, increasing the required taxable-equivalent yield to a range of 7.98%
to 8.71%. Taxable yields at this
3
<PAGE>
level on investments of comparable quality can be difficult to achieve in
today's markets.
Market appreciation of bonds in the portfolios further improved
investors' overall experience for the 12 months ending August 31, 1996. Total
returns on R shares, representing changes in net asset value and reinvestment of
all dividends and capital gains, if any, ranged from 5.23% to 6.65%, equivalent
to taxable investments with total returns of 9.38% to 10.73%.
I would like to take this opportunity to share with you the news of some
recent developments that will give Nuveen more flexibility to meet expanded
investor needs for capital preservation, current income, and future growth. For
nearly 100 years, we have offered products and services designed for the prudent
investor, services that have grown over the years as a natural extension of our
expertise in municipal bonds. We are now embarking on new endeavors, as we grow
to serve the broader needs of today's conservative investor.
In November, Nuveen will introduce the Nuveen Growth and Income Stock Fund,
designed to provide a high-quality equity complement to our current municipal
bond funds. The fund will be offered in affiliation with Institutional Capital
Corporation (ICAP), an institutional equity management firm located in Chicago
who shares Nuveen's values and investment management style. Tailor-made to
address the needs of many Nuveen investors, the fund can play a critical role in
achieving a balanced strategy for investors who expect their investments to
provide a core element of their financial security.
In addition, Nuveen plans to acquire Flagship Resources, Inc., a fixed-income
mutual fund specialist based in Dayton, Ohio. Flagship is a firm that shares our
views on the importance of research and emphasizes a conservative, value-
oriented approach to portfolio management. The tax-exempt mutual fund activities
of Flagship and Nuveen expect to be merged in January 1997, enabling us to offer
more than 40 municipal funds, the broadest selection available in the U.S.
Intermediate and limited term national funds as well as product offerings in 24
states, will provide more tax-free options to match investors' individual needs.
We are excited about these recent developments, and we are pleased to be
bringing Nuveen investors expanded options for achieving wealth preservation,
dependable income, and long-term asset growth. We thank you for your continued
confidence in Nuveen.
Sincerely,
Timothy R. Schwertfeger
Chairman of the Board
October 15, 1996
4
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market
How did the municipal market perform over the past year?
Unlike the prior two years, 1996's bond market has not been easy to categorize.
While 1994 represented the worst period in recent bond market history and 1995
the best in a decade, this year has seen a stream of mixed reports on the state
of the economy that have alternately caused investors to view the markets with
enthusiasm, then uncertainty. Despite this climate, the municipal bond market
has rewarded investors with solid returns, dependable income, and opportunities
to purchase bonds with strong credit quality. Over the past year, municipal
bonds have continued to outperform Treasuries, an indication of the strength and
resilience of this market segment.
What has been Nuveen's investment approach over the past year?
Nuveen continues to pursue its value investing strategy, a disciplined approach
to security selection and portfolio construction designed to deliver above
market performance by identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive relative
to
5
<PAGE>
[PHOTO OF TOM SPALDING]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
other bonds in the market. This approach was rewarded over the past year, as
many of our portfolio holdings were upgraded by the national rating agencies,
indicating that our Research Department's judgments about credit quality were on
target.
As opportunity allowed, we purchased bonds at discounts from their par value.
These bonds, which have coupon rates slightly below market levels, are less
likely to be called from our portfolios, assuring more stable yields for our
investors.
What is your outlook for the municipal market?
A look at the current economy shows a combination of factors that historically
bodes well for the bond market. Inflation continues at the same modest pace that
it has demonstrated over the past five years. The Federal Reserve's decision to
stand pat on short-term rates since January indicates that it believes inflation
is under control. The economy continues to enjoy modest expansion, supported by
generally level producer prices, low wage pressures, and a stable money supply.
Fading worries about tax reform-and the potential effect of a flat tax proposal-
have resulted in increased demand for tax-free products. New issuance of bonds
remains adequate but modest, further supporting a favorable environment for
investors.
6
<PAGE>
What are some of the factors affecting dividend changes?
All Nuveen funds are structured to provide an attractive stream of tax-free
income. For many investors, stability of income is another important objective.
To help investors satisfy this objective, we set dividends on Nuveen funds
conservatively, seeking a level that we expect will be sustainable for several
months. Still, dividends ultimately depend on the overall earnings of each fund,
which can be reduced by bond calls, fluctuations in interest rates, and other
portfolio changes.
When the Federal Reserve Board cut rates between July 1995 and January 1996,
long-term municipal bond yields reacted by declining almost 130 basis points
from their levels at the beginning of 1995. Current long-term rates are well
below those at the start of the decade. As older, higher-yielding bonds are
called from some portfolios, they must be replaced with the bonds available in
the market today, reducing fund earnings. To minimize the effect of bond calls
in the future, Nuveen has taken advantage of opportunities to invest in non-
callable bonds as well as bonds priced at a discount from their par value.
7
<PAGE>
NUVEEN CALIFORNIA
TAX-FREE VALUE FUND
CALIFORNIA
Shareholders have enjoyed relatively stable dividends. From time to time,
adjustments in the monthly dividend are made to reflect the current earnings of
the portfolio.
12 MONTH DIVIDEND HISTORY--R SHARES
9/95 - .0480
10/95 - .0475
11/95 - .0475
12/95 - .0465
1/96 - .0465
2/96 - .0465
3/96 - .0465
4/96 - .0465
5/96 - .0465
6/96 - .0475
7/96 - .0475
8/96 - .0475
- --------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- --------------------------------------------------------
Current SEC yield on R Shares* 8.03%
Taxable-equivalent yield on R Shares** 8.67%
12-mo. total return on R Shares* 6.65%
Taxable-equivalent total return on R Shares 10.73%
Combined tax rate 42.0%
- --------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
NUVEEN CALIFORNIA INSURED
TAX-FREE VALUE FUND
CALIFORNIA INSURED
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY--R SHARES
9/95 - .0460 3/96 - .0460
10/95 - .0460 4/96 - .0460
11/95 - .0460 5/96 - .0460
12/95 - .0460 6/96 - .0460
1/96 - .0460 7/96 - .0460
2/96 - .0460 8/96 - .0460
- --------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- --------------------------------------------------------
Current SEC yield on R Shares* 4.96%
Taxable-equivalent yield on R Shares** 8.55%
Annual total return on R Shares* 6.45%
Taxable-equivalent total return on R Shares 10.40%
Combined tax rate 42.0%
- --------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
8
<PAGE>
NUVEEN MASSACHUSETTS
TAX-FREE VALUE FUND
MASSACHUSETTS
The Fund adjusted its monthly tax-free dividend twice during the period as
older, higher coupon bonds were called away and replaced with today's lower
yielding bonds.
12 MONTH DIVIDEND HISTORY--R SHARES
9/95 - .0455 3/96 - .0440
10/95 - .0455 4/96 - .0440
11/95 - .0455 5/96 - .0440
12/95 - .0450 6/96 - .0440
1/96 - .0450 7/96 - .0440
2/96 - .0450 8/96 - .0440
- ------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- ------------------------------------------------------
Current SEC yield on R Shares* 4.92%
Taxable-equivalent yield on R Shares** 8.71%
Annual total return on R Shares* 5.69%
Taxable-equivalent total return on R Shares 10.04%
Combined tax rate 43.5%
- ------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
NUVEEN MASSACHUSETTS INSURED
TAX-FREE VALUE FUND
MASSACHUSETTS INSURED
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY--R SHARES
9/95 - .0450 3/96 - .0450
10/95 - .0450 4/96 - .0450
11/95 - .0450 5/96 - .0450
12/95 - .0450 6/96 - .0450
1/96 - .0450 7/96 - .0450
2/96 - .0450 8/96 - .0450
- -------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------------
Current SEC yield on R Shares* 4.51%
Taxable-equivalent yield on R Shares** 7.98%
Annual total return on R Shares* 5.23%
Taxable-equivalent total return on R Shares 9.38%
Combined tax rate 43.5%
- -------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
9
<PAGE>
NUVEEN NEW YORK
TAX-FREE VALUE FUND
New York
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY--R SHARES
[PERFORMANCE GRAPH APPEARS HERE]
9/95 - .0485 3/96 - .0485
10/95 - .0485 4/96 - .0485
11/95 - .0485 5/96 - .0485
12/95 - .0485 6/96 - .0485
1/96 - .0485 7/96 - .0485
2/96 - .0485 8/96 - .0485
- ------------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- ------------------------------------------------------------
Current SEC yield on R Shares* 5.11%
Taxable-equivalent yield on R Shares** 8.59%
Annual total return on R Shares* 5.98%
Taxable-equivalent total return on R Shares 9.90%
Combined tax rate 40.5%
- ------------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
NUVEEN NEW YORK INSURED
TAX-FREE VALUE FUND
NEW YORK INSURED
Shareholders enjoyed relatively stable dividends and a capital gains
distribution in November. From time to time, adjustments in the monthly dividend
are made to reflect the current earnings of the portfolio.
12 MONTH DIVIDEND HISTORY--R SHARES
[PERFORMANCE GRAPH APPEARS HERE]
9/95 - .0460 3/96 - .0460
10/95 - .0460 4/96 - .0460
11/95 - .0750 (with Capital Gains) 5/96 - .0460
12/95 - .0460 6/96 - .0450
1/96 - .0460 7/96 - .0450
2/96 - .0460 8/96 - .0450
- ------------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- ------------------------------------------------------------
Current SEC yield on R Shares* 4.78%
Taxable-equivalent yield on R Shares** 8.03%
Annual total return on R Shares* 5.45%
Taxable-equivalent total return on R Shares 9.16%
Combined tax rate 40.5%
- ------------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
10
<PAGE>
NUVEEN OHIO
TAX-FREE VALUE FUND
Ohio
In keeping with the Fund's goal of providing attractive, dependable tax-free
income, shareholders enjoyed 12 months of steady dividends.
12 MONTH DIVIDEND HISTORY--R SHARES
[PERFORMANCE GRAPH APPEARS HERE]
9/95 - .0470 3/96 - .0470
10/95 - .0470 4/96 - .0470
11/95 - .0470 5/96 - .0470
12/95 - .0470 6/96 - .0470
1/96 - .0470 7/96 - .0470
2/96 - .0470 8/96 - .0470
- ------------------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- ------------------------------------------------------------
Current SEC yield on R Shares* 4.90%
Taxable-equivalent yield on R Shares** 8.31%
Annual total return on R Shares* 5.32%
Taxable-equivalent total return on R Shares 9.20%
Combined tax rate 41.0%
- ------------------------------------------------------------
The dividend history used in this chart constitutes past performances and does
not necessarily predict the future dividends of the Fund.
See footnote on page 11.
* All shares issued prior to September 6, 1994, have been designated as Class R
shares, which are currently available only for dividend reinvestment and certain
other restricted situations. Please see Financial Highlights beginning on page
78 for additional data on Class A and Class C shares.
** An investor subject to the indicated income tax rate would have to receive
this return from a fully taxable investment to equal the stated yield and total
return on an after-tax basis.
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,200,000 California Statewide Cmntys Develop Auth Revenue Ctfs of
Participation Series 1996 Methodist Hospital of Southern Calif,
5.500%, 7/01/10 AAA 7/06 at 102 $ 3,106,272
3,150,000 California Educational Facilities Authority Revenue Bonds
(University of Southern California Project) Series 1989 A,
7.200%, 10/01/15 Aa 10/97 at 102 3,296,790
4,500,000 California Educational Facilities Authority Revenue Bonds
(University of San Francisco), Series 1996, 6.000%, 10/01/26 Aaa 10/06 at 102 4,544,010
California Educational Facilities Authority, Revenue Bonds
(Loyola Marymount University) Series 1996:
1,380,000 5.875%, 10/01/16 Aaa 10/06 at 102 1,379,917
2,405,000 5.900%, 10/01/21 (DD) Aaa 10/06 at 102 2,397,039
California Health Facilities Financing Authority, Insured Health
Facility Revenue Bonds (Small Facilities Pooled Loan Program),
1994 Series B:
3,000,000 7.400%, 4/01/14 A 4/05 at 102 3,373,860
3,635,000 7.500%, 4/01/22 A 4/05 at 102 4,112,385
3,750,000 California Health Facilities Financing Authority, Insured
Revenue Bond (Sutter/CHS), 5.875%, 8/15/16 Aaa 8/06 at 102 3,715,125
1,700,000 California Health Facilities Financing Authority, Hospital
Revenue Refunding Bonds (Sutter Health) Series 1989A,
7.000%, 1/01/09 A1 1/99 at 102 1,811,027
2,000,000 California Health Facilities Financing Authority, Health Facility
Revenue Bonds (Health Dimensions, Incorporated) 1990
Series A, 7.500%, 5/01/15 (Pre-refunded to 5/01/00) Ba 5/00 at 102 2,235,740
2,000,000 California Health Facilities Financing Authority, Health Facility
Revenue Bonds (Sisters of Providence), Series 1990,
7.500%, 10/01/10 (Pre-refunded to 10/01/00) AA- 10/00 at 102 2,250,520
3,380,000 California Health Facilities Financing Authority, Kaiser
Permanente, Revenue Bonds, 1990 Series A, 7.000%, 12/01/10 AA 12/00 at 102 3,681,699
4,750,000 California Housing Finance Agency Home Mortgage Revenue
Bonds, 1995 Series F, 5.950%, 8/01/14 Aaa 8/05 at 102 4,749,715
1,060,000 California State Public Works Board, High Technology Facilities
Lease, The Regents of the University of California, San Diego
Facility, 7.375%, 4/01/06 A1 No Opt. Call 1,127,490
2,905,000 California Statewide Communities Development Authority,
Senior Lien Multifamily Housing Revenue Bonds (Monte Vista
Terrace), Series 1996A, 6.375%, 9/01/20 AAA 9/06 at 100 2,931,929
2,000,000 California Statewide Communities Development Authority,
Certificates of Participation, Huntington Memorial Hospital,
5.750%, 7/01/16 AAA 7/06 at 102 1,963,860
2,500,000 Certificates of Participation, California Statewide Communities
Development Authority (Solheim Lutheran Home),
6.500%, 11/01/17 A 11/04 at 102 2,571,825
3,000,000 Certificates of Participation, California Statewide Communities
Development Authority, St. Joseph Health System Obligated
Group, 6.500%, 7/01/15 Aa 7/04 at 102 3,131,430
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 8,470,000 State Public Works Board of the State of California Lease
Revenue Bonds (The Trustees of The California State
University), 1992 Series A (Various California State University
Projects), 6.700%, 10/01/17 A 10/02 at 102 $ 8,964,309
5,000,000 State Public Works Board of the State of California Lease
Revenue Bonds (The Trustees of The California State
University), 1993 Series A (Various California State
University Projects), 5.500%, 12/01/18 A 12/03 at 102 4,616,850
5,000,000 State Public Works Board of the State of California Lease
Revenue Bonds (Department of Corrections) 1996 Series A
(California Substance Abuse Treatment Facility and State
Prison at Corcoran (Corcoran II)), 5.250%, 1/01/21 Aaa 1/06 at 100 4,628,050
5,900,000 State of California, Department of Water Resources, Central
Valley Project, Water System Revenue Bonds, Series M,
5.000%, 12/01/15 Aa 12/03 at 101 5,252,829
1,500,000 Insured Certificates of Participation (Channing House), Series
1991A, ABAG Finance Authority For Nonprofit Corporations,
7.125%, 1/01/21 A 1/01 at 102 1,606,545
2,035,000 Certificates of Participation (1991 Capital Improvement Project),
Bella Vista Water District (California), 7.375%, 10/01/17 Baa 10/01 at 102 2,150,730
7,000,000 Brea Redevelopment Agency (Orange County, California), 1993
Tax Allocation Refunding Bonds (Redevelopment Project AB),
5.500%, 8/01/17 Aaa 8/03 at 102 6,629,490
1,000,000 Carson Redevelopment Agency (California), Redevelopment
Project Area No. 2, Refunding Tax Allocation Bonds, Series
1993, 6.000%, 10/01/13 Baa 10/03 at 102 973,400
2,000,000 Carson Redevelopment Agency (California), Redevelopment
Project Area No. 1, Tax Allocation Bonds, Series 1993,
6.000%, 10/01/16 Baa1 10/03 at 102 1,942,000
1,755,000 Central Joint Powers Health Financing Authority, Certificates of
Participation, Series 1993 (Community Hospitals of Central
California), 5.000%, 2/01/23 A 2/03 at 100 1,446,576
2,000,000 Certificates of Participation, Insured Health Facility Revenue,
(Sierra Sunrise Lodge) Series 1991A, 6.750%, 2/01/21 A 2/01 at 102 2,079,360
5,000,000 Contra Costa Water District (Contra Costa County, California),
Water Revenue Refunding Bonds, Series F, 5.000%, 10/01/20 Aaa 10/02 at 101 1/2 4,416,250
6,500,000 County of Contra Costa, Mortgage Revenue Refunding Bonds,
Series 1993A (FHA Insured Mortgage Loan -- Cedar Pointe
Apartments Project), 6.150%, 9/01/25 AAA 9/03 at 103 6,543,420
2,000,000 Hospital Revenue Certificates of Participation (Desert Hospital
Corporation Project), Series 1990, 8.100%, 7/01/20
(Pre-refunded to 7/01/00) AAA 7/00 at 102 2,285,760
3,200,000 Certificates of Participation, Desert Sands Unified School
District (Capital Projects Program), Series 1995,
5.750%, 3/01/20 Aaa 3/05 at 102 3,141,376
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA TAX-FREE VALUE FUND -- CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------- <C>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,950,000 East Bay Municipal Utility District (Alameda and Contra Costa
Counties, California), Water System Subordinated Revenue
Bonds, Series 1990, 7.500%, 6/01/18 (Pre-refunded to 6/01/00) Aaa 6/00 at 102 $ 2,185,268
4,000,000 East Bay Municipal Utility District (Alameda and Contra Costa
Counties, California), Water System Subordinated Revenue
Bonds, Series 1991, 6.375%, 6/01/21 (Pre-refunded to 12/01/01) Aaa 12/01 at 102 4,401,480
2,500,000 Fontana Public Financing Authority (San Bernardino County,
California), Tax Allocation Revenue Bonds (North Fontana
Redevelopment Project), 1990 Series A, 7.250%, 9/01/20 BB+ 9/00 at 102 2,441,750
2,475,000 City of Loma Linda California, Hospital Revenue Bonds (Loma
Linda University Medical Center Project), Series 1993-A,
6.000%, 12/01/06 BBB 12/03 at 102 2,435,549
5,000,000 The Community Redevelopment Agency of the City of
Los Angeles, California, Multifamily Housing Revenue
Refunding Bonds, 1995 Series A (Angelus Plaza Project),
7.400%, 6/15/10 AAA 6/05 at 105 5,491,500
3,505,000 Harbor Department of the City of Los Angeles (California),
Revenue Bonds, Issue of 1988, 7.600%, 10/01/18 AAA No Opt. Call 4,240,454
255,000 The City of Los Angeles 1987 Home Mortgage Revenue Bonds
(GNMA Mortgaged-Backed Securities Program),
8.100%, 5/01/17 Aaa No Opt. Call 268,280
4,595,000 Los Angeles County Public Works Finance Authority, Revenue
Bonds, Series 1994A (Los Angeles County Regional Park and
Open Space District), 6.125%, 10/01/10 Aa 10/04 at 102 4,735,837
3,740,000 Los Angeles County Public Works Financing Authority, Lease
Revenue Refunding Bonds (County of Los Angeles 1996
Master Refunding Project), Series A, 5.250%, 9/01/14 Aaa 9/06 at 102 3,494,207
3,735,000 Los Angeles County Public Works Financing Authority, Lease
Revenue Refunding Bonds (County of Los Angeles 1996
Master Refunding Project), Series B, 5.250%, 9/01/13 (DD) Aaa 9/06 at 102 3,516,727
190,000 County of Los Angeles Single Family Mortgage Revenue Bonds
(GNMA Mortgage Backed Securities Program), 1987 Issue A,
8.000%, 3/01/17 Aaa No Opt. Call 198,826
2,000,000 Los Angeles County Transportation Commission (California),
Sales Tax Revenue Refunding Bonds, Series 1989-A,
7.400%, 7/01/15 AA- 7/99 at 102 2,170,300
Los Angeles County Transportation Commission (California),
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A
2,300,000 6.250%, 7/01/13 Aaa 7/02 at 102 2,406,168
4,445,000 6.000%, 7/01/23 Aaa 7/02 at 102 4,476,293
1,260,000 Marysville Community Development Agency, Marysville Plaza
Project, 1992 Tax Allocation Refunding Bonds (Bank
Qualified), 7.250%, 3/01/21 Baa 3/02 at 102 1,341,018
740,000 Community Development Agency of The City of Menlo Park,
Multifamily Housing Revenue Bonds (FHA-Insured Mortgage
Loan -- The Gateway Project), Series 1987A, 8.250%, 12/01/28 Aa 6/97 at 103 776,534
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 5,000,000 Modesto Irrigation District Financing Authority, Refunding
Revenue Bonds, Series A, 6.000%, 10/01/15 Aaa 10/06 at 102 $ 5,083,000
860,000 City of Monterey, Hospital Revenue Bonds, (Monterey Peninsula
Hospital Project) Series 1984 A, 7.375% 7/01/14 A+ 1/97 at 102 885,671
1,500,000 Community Facilities District No. 1 of the North City West
School Facilities Financing Authority, Special Tax Bonds, Series
1989A, 7.850%, 9/01/19 (Pre-refunded to 9/01/99) N/R 9/99 at 102 1,675,680
2,930,000 Northern California Power Agency, Hydroelectric Project
Number One Revenue Bonds, Refunding Series E,
7.150%, 7/01/24 A 7/98 at 102 3,072,574
2,080,000 City of Ontario, (San Bernardino County, California), Limited
Obligation Improvement Bonds, Assessment District No. 100C,
(California Commerce Center -- Phase III), 8.000%, 9/02/11 N/R 3/97 at 103 2,155,192
1,430,000 Redding Joint Powers Financing Authority Lease Revenue Bonds,
(Capital Improvement Projects) Series 1993, 6.250%, 6/01/23 A 6/03 at 102 1,394,479
7,290,000 City of Riverside, California, Multifamily Housing Revenue
Bonds, (Fannie Mae Pass-through Certificate Program/
Birchwood Park Apartment Project), Series 1992A,
6.500%, 1/01/18 AAA 7/02 at 100 7,444,912
205,000 Sacramento Municipal Utility District (California), Subordinated
Electric Revenue Bonds, 1985 Refunding Series,
8.000%, 11/15/10 Baa1 10/96 at 100 205,494
3,500,000 Sacramento Municipal Utility District, Electric Revenue Bonds,
1988 Series W, 7.875%, 8/15/16 (Pre-refunded to 8/15/98) Aaa 8/98 at 102 3,811,395
2,315,000 Limited Obligation Refunding Bonds, City of Salinas,
Consolidated Refunding District 94-3, Series No. A-181
Monterey County, California, 7.400%, 9/02/09 N/R 9/06 at 103 2,402,600
2,080,000 City of Salinas, Housing Facility Refunding Revenue Bonds,
Series 1994A (GNMA Collateralized -- Villa Serra Project),
6.500%, 7/20/17 AAA 7/04 at 102 2,142,483
8,680,000 San Bernardino County, California, Certificates of Participation,
Series 1995 (Medical Center Financing Project),
5.500%, 8/01/15 (DD) Aaa 8/05 at 102 8,339,484
2,000,000 San Francisco City and County School District Facilities
Improvement Series D, 6.000%, 6/15/14 Aaa 6/04 at 102 2,045,100
5,000,000 City and County of San Francisco, Redevelopment Financing
Authority, 1993 Series C Tax Allocation Revenue Bonds,
(San Francisco Redevelopment Projects), 5.125%, 8/01/18 A 8/03 at 103 4,428,450
3,070,000 Certificates of Participation, (1993 Seismic Retrofit Financing
Project), City of San Leandro, California, San Leandro Public
Financing Authority, 5.900%, 6/01/13 A 6/03 at 102 3,010,503
1,000,000 Certificates of Participation Series 1991, San Mateo County
Board of Education, (Administration Building Project),
7.100%, 5/01/21 A+ 5/99 at 102 1,051,960
1,750,000 Certificates of Participation, Insured Revenue, City of
Santa Barbara, (FACT Retirement Services), 5.850%, 8/01/15 A 8/06 at 102 1,686,930
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA TAX-FREE VALUE FUND -- CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 3,000,000 Housing Authority of the County of Santa Cruz, Multifamily
Housing Refunding Revenue Bonds, Series 1990A,
(Fannie Mae Collateralized), 7.750%, 7/01/23 AAA 7/00 at 102 $ 3,188,460
2,000,000 Certificates of Participation, (1990 Financing Project), Sonoma
County Office of Education, 7.375%, 7/01/20
(Pre-refunded to 7/01/00) A+ 7/00 at 102 2,229,940
12,750,000 Southern California Public Power Authority (a public entity
organized under the laws of the State of California) (Palo Verde
Project), Power Project Revenue Bonds, 1993 Refunding
Series A, 5.000%, 7/01/15 (DD) Aa 7/03 at 102 11,381,288
740,000 Southern California Public Power Authority, Transmission
Project Revenue Bonds, 1986 Refunding Series B (Southern
Transmission Project), 5.500%, 7/01/23 Aa 9/96 at 100 732,363
1,100,000 Certificates of Participation, (1992 Financing Project) Series B,
County of Tulare, Tulare County Public Facilities Corporation,
6.875%, 11/15/12 Baa1 11/02 at 102 1,148,356
4,200,000 Certificates of Participation, (Capital Improvement Program),
1996 Series A, County of Tulare, California, 6.000%, 2/15/16 Aaa 2/06 at 102 4,208,484
The Regents of the University of California, 1993 Refunding
Certificates of Participation (UCLA Central Chiller/
Cogeneration Facility):
1,750,000 5.500%, 11/01/17 Aa 11/03 at 102 1,652,735
3,500,000 5.600%, 11/01/20 Aa 11/03 at 102 3,269,454
4,335,000 6.000%, 11/01/21 Aa 11/03 at 102 4,254,586
- -------------------------------------------------------------------------------------------------------------------------
$235,430,000 Total Investments -- (cost $228,572,506) -- 103.7% 236,539,342
=============------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 1.0%
$ 700,000 California Health Facilities Authority, Variable Rate Revenue
Bonds, (St. Joseph Health System), Series 1991B, Variable Rate
Demand Bonds, 3.650%, 7/01/09+ VMIG-1 700,000
1,500,000 State of California, 1996-97 Revenue Anticipation
Notes, Index Notes Series C-5, 3.650%, 6/30/97 VMIG-1 1,500,000
- -------------------------------------------------------------------------------------------------------------------------
$ 2,200,000 Total Temporary Investments -- 1.0% 2,200,000
=============------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- (4.7%) (10,702,293)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $228,037,049
=========================================================================================================================
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET PORTFOLIO
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 32 $119,374,734 50%
RATINGS* AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 13 46,586,365 20
PORTFOLIO OF A+ A1 5 7,106,088 3
INVESTMENTS A, A-- A, A2, A3 13 42,364,646 18
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 7 10,196,547 4
TEMPORARY BB+, BB, BB-- Ba1, Ba, Ba2, Ba3 2 4,677,490 2
INVESTMENTS): Non-rated Non-rated 3 6,233,472 3
- ---------------------------------------------------------------------------------------------------------------------
TOTAL 75 $236,539,342 100%
=====================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
call or redemption. There may be other call provisions at varying prices at
later dates.
(DD) Portion of Security purchased on a delayed basis (note 1).
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 California Educational Facilities Authority, Revenue Bonds
(Pepperdine University), Series 1990, 7.200%, 11/01/15
(Pre-refunded to 11/01/00) Aaa 11/00 at 102 $ 1,119,550
4,500,000 California Educational Facilities Authority Revenue Bonds
(University of San Francisco), Series 1996, 6.000%, 10/01/26 Aaa 10/06 at 102 4,544,010
6,000,000 California Health Facilities Authority, Kaiser Permanente
Medical Care Program, Semiannual Tender Revenue Bonds,
1983 Tender Bonds, 5.450%, 10/01/13 AA 10/01 at 101 5,622,540
6,340,000 California Housing Finance Agency, Housing Revenue Bonds
(Insured), 1991 Series B, 6.850%, 8/01/23 Aaa 2/02 at 102 6,635,317
5,000,000 California Housing Finance Agency, Home Mortgage Revenue
Bonds, 1995 Series F, 5.950%, 8/01/14 Aaa 8/05 at 102 4,999,700
240,000 California Public Capital Improvements Financing Authority
(A Joint Powers Agency) Revenue Bonds (Pooled Projects),
Series 1988B, 8.100%, 3/01/18 Aaa 3/98 at 102 252,602
8,500,000 California Statewide Communities Development Authority,
Sutter Health Obligated Group, Certificates of Participation,
6.125%, 8/15/22 Aaa 8/02 at 102 8,558,140
4,000,000 California Statewide Communities Development Authority,
Certificates of Participation, (Sutter Health Obligated Group),
Series 1993, 5.500%, 8/15/13 Aaa 8/03 at 102 3,871,440
6,000,000 California Statewide Communities Development Authority,
Certificates of Participation, Huntington Memorial Hospital,
5.500%, 7/01/10 AAA 7/06 at 102 5,824,260
5,000,000 State Public Works Board of the State of California Lease
Revenue Bonds (Department of Corrections), 1990 Series A
(State Prison-Madera County), 7.000%, 9/01/09
(Pre-refunded to 9/01/00) Aaa 9/00 at 102 5,543,700
5,000,000 State Public Works Board of the State of California Lease
Revenue Bonds (Department of Corrections), 1996 Series A
(California Substance Abuse Treatment Facility and State
Prison at Corcoran (Corcoran II)), 5.250%, 1/01/21 Aaa 1/06 at 100 4,628,050
5,000,000 State of California Various Purpose General Obligation Bonds,
5.500%, 4/01/19 Aaa 4/03 at 102 4,737,000
1,225,000 Redevelopment Agency of the City of Barstow, Central
Redevelopment Project Tax Allocation Bonds, 1994 Series A,
7.000%, 9/01/14 Aaa No Opt. Call 1,411,102
7,005,000 Big Bear Lake Financing Authority (San Bernardino County,
California) 1995 Tax Allocation Refunding Revenue Bonds,
6.300%, 8/01/25 Aaa 8/05 at 102 7,303,763
7,000,000 City of Big Bear Lake, California, 1992 Water Revenue
Refunding Bonds, 6.375%, 4/01/22 (Pre-refunded to 4/01/02) Aaa 4/02 at 102 7,703,290
3,525,000 Brea Public Financing Authority (Orange County, California),
1991 Tax Allocation Revenue Bonds, Series A (Redevelopment
Project AB), 7.000%, 8/01/15 (Pre-refunded to 8/01/01) Aaa 8/01 at 102 3,955,685
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,000,000 Calaveras County Water District (California), Certificates of
Participation (1991 Ebbetts Pass Water System Improvements
Project), 6.900%, 5/01/16 (Pre-refunded to 5/01/01) Aaa 5/01 at 102 $ 3,339,930
7,000,000 Chino Unified School District, Certificates of Participation
(1995 Master Lease Program), 6.125%, 9/01/26 Aaa 9/05 at 102 7,140,350
850,000 Redevelopment Agency of the City of Concord, Central Concord
Redevelopment Project, Tax Allocation Bonds, Series 1988-2,
7.875%, 7/01/07 Aaa 7/98 at 102 915,212
500,000 Cotati-Rohnert Park Unified School District (Sonoma County,
California), General Obligation Bonds, Election 1990, Series B,
9.000%, 8/01/06 Aaa 8/99 at 102 566,055
2,000,000 East Bay Municipal Utility District (Alameda and Contra Costa
Counties,California), Water System Subordinated Revenue
Bonds, Series 1990, 7.500%, 6/01/18
(Pre-refunded to 6/01/00) Aaa 6/00 at 102 2,241,300
2,000,000 Eastern Municipal Water District (Riverside County, California),
Water and Sewer Revenue, Certificates of Participation,
Series 1991, 6.500%, 7/01/20 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 2,200,080
3,865,000 Fallbrook Sanitary District, (San Diego County, California),
1991 Certificates of Participation (Wastewater Facilities
Refunding Project), 6.600%, 2/01/13 Aaa 2/01 at 100 4,108,070
2,500,000 Fontana Public Financing Authority (San Bernardino County,
California), Tax Allocation Revenue Bonds (North Fontana
Redevelopment Project), 1990 Series A, 7.000%, 9/01/10 Aaa 9/00 at 102 2,730,400
3,000,000 Gilroy Unified School District, Santa Clara County, California,
Certificates of Participation, Series of 1994, 6.250%, 9/01/12 Aaa 9/04 at 102 3,153,660
3,500,000 City of Glendale, California, Insured Health Facilities Revenue
Bonds (Glendale Memorial Hospital and Health Center), 1995
Series A, 5.600%, 11/15/25 AAA 11/05 at 102 3,328,605
1,000,000 LaQuinta Redevelopment Agency, LaQuinta Redevelopment
Project Tax Allocation Refunding Bonds, Series 1994 (Project
Area No. 1), 7.300%, 9/01/12 Aaa No Opt. Call 1,182,360
5,000,000 The Community Redevelopment Agency of the City of
Los Angeles, California, Multifamily Housing Revenue
Refunding Bonds, 1995 Series A (Angelus Plaza Project),
7.400%, 6/15/10 AAA 6/05 at 105 5,491,500
2,000,000 The City of Los Angeles (California), Los Angeles Convention
and Exhibition Center, Certificates of Participation,
1990 Series, 7.000%, 8/15/21 (Pre-refunded to 8/15/00) Aaa 8/00 at 102 2,215,620
Department of Water and Power of the City of Los Angeles,
California, Electric Plant Refunding Revenue Bonds,
Second Issue of 1993:
5,000,000 5.400%, 11/15/31 Aa 11/03 at 102 4,504,850
6,000,000 5.400%, 11/15/31 Aaa 11/03 at 102 5,486,520
260,000 The City of Los Angeles 1987 Home Mortgage Revenue Bonds
(GNMA Mortgage-Backed Securities Program),
8.100%, 5/01/17 Aaa No Opt. Call 273,541
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,500,000 Los Angeles County Metropolitan Transportation Authority
(California), Proposition A, Sales Tax Revenue Refunding
Bonds, Series 1993-A, 5.000%, 7/01/21 Aaa 7/03 at 100 $ 2,198,100
5,000,000 Los Angeles County Transportation Commission (California),
Proposition C Sales Tax Revenue Bonds, Second Senior Bonds,
Series 1992-A, 6.250%, 7/01/13 Aaa 7/02 at 102 5,230,800
Modesto Irrigation District Financing Authority, Domestic
Water Project Revenue Bonds, Series 1992A:
9,500,000 6.125%, 9/01/19 Aaa 9/02 at 102 9,649,910
5,750,000 5.500%, 9/01/22 Aaa 9/02 at 100 5,384,588
2,500,000 Mt. Diablo Hospital District, Insured Hospital Revenue Bonds,
1990 Series A, 8.000%, 12/01/11 (Pre-refunded to 12/01/00) Aaa 12/00 at 102 2,868,500
2,000,000 Mt. Diablo Unified School District, Community Facilities
District No. 1, Special Tax Bonds, Series 1990, (Contra Costa
County, California), 7.050%, 8/01/20 Aaa 8/00 at 102 2,181,260
2,555,000 City of Napa Mortgage Revenue Refunding Bonds, Series 1992A
(FHA Insured Mortgage Loan -- Creekside Park Apartments
Project), 6.625%, 7/01/24 Aaa 7/02 at 102 2,638,906
2,000,000 City of Napa Mortgage Revenue Refunding Bonds, Series 1994A
(FHA Insured Mortgage Loan -- Creekside Park II Apartments
Project), 6.625%, 7/01/25 Aaa 7/04 at 101 2,070,700
7,040,000 Norwalk Community Facilities Financing Authority
(Los Angeles County, California) Tax Allocation Refunding
Revenue Bonds, 1995 Series A, 6.050%, 9/01/25 Aaa 9/05 at 102 6,997,126
2,500,000 City of Oakland, California, Special Refunding Revenue Bonds
(Pension Financing), 1988 Series A, 7.600%, 8/01/21 Aaa 8/98 at 102 2,687,000
4,885,000 Ontario Redevelopment Financing Authority (San Bernardino
County, California), 1992 Revenue Bonds (Project No. 1,
Center City and Cimarron Redevelopment Projects),
6.250%, 8/01/15 Aaa 2/02 at 102 5,064,866
1,250,000 Palm Desert Redevelopment Agency Project Area No. 1, as
Amended (Added Territory Only) Subordinated Tax Allocation
Bonds Issue of 1989, 7.400%, 5/01/09 Aaa 5/97 at 101 1,287,300
2,000,000 Redevelopment Agency of the City of Pittsburgh, California,
Los Medanos Community Development Project, Tax Allocation
Bonds, Series 1991, 7.150%, 8/01/21 Aaa 8/01 at 103 2,273,460
1,500,000 Port of Oakland, California, Revenue Bonds, 1989 Series B,
7.250%, 11/01/16 Aaa 5/97 at 102 1,558,185
County of Riverside, California (1994 Desert Justice Facility
Project), Certificates of Participation:
3,600,000 6.000%, 12/01/17 Aaa 12/04 at 101 3,605,940
2,500,000 6.250%, 12/01/21 Aaa 12/04 at 101 2,574,900
3,000,000 Sacramento Municipal Utility District, Electric Revenue Bonds,
1991 Series Y, 6.500%, 9/01/21 (Pre-refunded to 9/01/01) Aaa 9/01 at 102 3,307,740
2,500,000 San Bernardino County Transportation Authority, Sales Tax
Revenue Bonds (Limited Tax Bonds), 1992 Series A,
6.000%, 3/01/10 Aaa 3/02 at 102 2,576,775
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 San Diego Regional Building Authority Lease Revenue Bonds,
Series 1990A (San Miguel Consolidated Fire Protection
District Project), 7.250%, 1/01/20 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 $ 2,208,440
Redevelopment Agency of the City and County of San Francisco
Lease Revenue Bonds, Series 1994 (George R. Moscone
Convention Center):
2,250,000 6.800%, 7/01/19 Aaa 7/04 at 102 2,461,118
1,000,000 6.750%, 7/01/24 Aaa 7/04 at 102 1,092,690
2,250,000 Redevelopment Agency of the City of San Jose, Merged Area
Redevelopment Project, Tax Allocation Bonds, Series 1993,
4.750%, 8/01/24 Aaa 2/04 at 102 1,888,425
3,000,000 City of Shasta Lake 1996--2 Certificates of Participation,
6.000%, 4/01/16 Aaa 4/05 at 102 3,005,640
2,000,000 Southern California Rapid Transit District, Certificates of
Participation (Workers' Compensation Funding Program),
7.500%, 7/01/05 Aaa 1/01 at 102 1/2 2,248,380
3,040,000 Sulphur Springs Union School District (County of Los Angeles,
California), General Obligation Bonds, Election 1991, Series A,
0.000%, 9/01/15 Aaa No Opt. Call 983,075
105,000 Thousand Oaks Redevelopment Agency (Ventura County,
California), Single Family Mortgage Revenue Refunding Bonds,
Issue of 1986, 7.900%, 1/01/16 Aaa 1/97 at 102 107,797
6,250,000 Tri-City Hospital District, Insured Refunding Revenue Bonds,
Series 1996A, 5.625%, 2/15/17 Aaa 2/06 at 102 6,043,563
2,500,000 The Regents of the University of California Refunding Revenue
Bonds (1989 Multiple Purpose Projects), Series C,
5.000%, 9/01/23 Aaa 9/03 at 102 2,187,324
5,000,000 City of Vallejo Refunding Revenue Bonds, 1996 Series A
(Water Improvement Project), 5.875%, 5/01/26 Aaa 5/06 at 102 4,957,900
- -------------------------------------------------------------------------------------------------------------------------
$214,785,000 Total Investments -- (cost $207,453,584) -- 98.2% 216,928,610
=============------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 0.3%
$ 600,000 California Health Facilities Financing Authority, Refunding
============= Revenue Bonds, (St. Joseph Health System), Series 1985B,
Variable Rate Demand Bonds, 3.650%, 7/01/13+ VMIG-1 600,000
- -------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.5% 3,238,029
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $220,766,639
=========================================================================================================================
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 59 $206,801,220 95%
RATINGS* AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 2 10,127,390 5
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------------
TOTAL 61 $216,928,610 100%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
All of the bonds in the portfolio, excluding temporary investments in short-
term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. Government or U.S. Government agency
securities, any of which ensure the timely payment of principal and interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts Health and Educational, Facilities Authority,
Revenue Refunding Bonds, Youville Hospital Issue (FHA
Insured Project), Series B:
$ 2,500,000 6.000%, 2/15/25 Aa 2/04 at 102 $ 2,497,550
2,000,000 6.000%, 2/15/34 Aa 2/04 at 102 1,971,460
250,000 Massachusetts Bay Transportation Authority, General
Transportation System Bonds, 1988 Series A, 7.750%,
3/01/10 (Pre-refunded to 3/01/98) Aaa 3/98 at 102 267,763
1,000,000 Massachusetts Bay Transportation Authority, General
Transportation Bonds, 1991 Series A, 7.000%, 3/01/11
(Pre-refunded to 3/01/01) Aaa 3/01 at 102 1,112,090
Massachusetts Educational Loan Authority, Education Loan
Revenue Bonds, Issue C, Series 1985A:
160,000 7.875%, 6/01/03 AAA 6/97 at 102 167,606
1,185,000 7.875%, 6/01/03 AAA 6/00 at 100 1,243,646
1,320,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Emerson Hospital Issue, Series C, 8.000%,
7/01/18 (Pre-refunded to 7/01/00) AAA 7/00 at 102 1,491,996
250,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Mount Auburn Hospital Issue, Series A,
7.875%, 7/01/18 (Pre-refunded to 7/01/98) Aaa 7/98 at 102 270,568
350,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Salem Hospital Issue, Series A, 7.250%,
7/01/09 (Pre-refunded to 7/01/97) Aaa 7/97 at 100 359,562
500,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Series 1989 (Cardinal Cushing General
Hospital), 8.875%, 7/01/18 N/R 7/99 at 102 1/2 533,315
1,180,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Suffolk University Issue, Series A, 8.125%,
7/01/20 (Pre-refunded to 7/01/00) Baa 7/00 at 101 1/2 1,327,299
500,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Newton-Wellesley Hospital Issue, Series C,
8.000%, 7/01/18 (Pre-refunded to 7/01/98) Aaa 7/98 at 102 542,135
500,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Saint Elizabeth's Hospital Of Boston Issue
(FHA-Insured Project), Series B, 7.750%, 8/01/27
(Pre-refunded to 8/01/97) Aaa 8/97 at 102 526,745
750,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Baystate Medical Center Issue, Series C,
7.500%, 7/01/20 (Pre-refunded to 7/01/99) A+ 7/99 at 102 818,970
1,000,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Boston College Issue, Series J,
6.625%, 7/01/21 Aaa 7/01 at 102 1,071,980
500,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Refunding Bonds, Worcester Polytechnic Institute
Issue, Series E, 6.625%, 9/01/17 A+ 9/02 at 102 528,570
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 495,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Brockton Hospital Issue, Series B,
8.000%, 7/01/07 A 7/97 at 102 $ 515,523
250,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, University Hospital Issue, Series C,
7.250%, 7/01/10 Aaa 7/00 at 102 273,390
750,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25 Aaa 7/02 at 102 800,355
2,750,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, New England Deaconess Hospital Issue,
Series D, 6.875%, 4/01/22 A 4/02 at 102 2,878,563
1,000,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Suffolk University Issue, Series B,
6.350%, 7/01/22 AAA 7/02 at 102 1,029,390
1,000,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, MetroWest Health, Inc. Issue, Series C,
6.500%, 11/15/18 (Pre-refunded to 11/15/02) Aaa 11/02 at 102 1,107,710
885,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Cable Housing and Health Services Issue,
Series A, 5.625%, 7/01/13 Aaa 7/03 at 102 868,415
Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds, Lahey Clinic Medical Center Issue, Series B:
1,000,000 5.625%, 7/01/15 Aaa 7/03 at 102 967,230
2,000,000 5.375%, 7/01/23 Aaa 7/03 at 102 1,840,360
700,000 Massachusetts Health and Educational, Facilities Authority,
Revenue Bonds (Daughters of Charity National Health
System--The Carney Hospital), Series D, 6.100%, 7/01/14 Aa 7/04 at 102 701,211
3,700,000 Massachusetts Housing Finance Agency, Housing Project
Revenue Bonds, 6.375%, 4/01/21 A1 4/03 at 102 3,717,908
1,000,000 Massachusetts Housing Finance Agency, Residential
Development Bonds, 6.250%, 11/15/14 Aaa 11/02 at 102 1,014,610
1,000,000 Massachusetts Housing Finance Agency, Residential
Development Bonds, 1992 Series D, 6.875%, 11/15/21 Aaa 5/02 at 102 1,042,610
500,000 Massachusetts Housing Finance Agency, Single Family Housing
Revenue Bonds, Series 18, 7.350%, 12/01/16 Aa 6/01 at 102 528,165
1,250,000 Massachusetts Housing Finance Agency, Single Family Housing
Revenue Bonds, Series B, 7.700%, 6/01/17 Aa 6/98 at 102 1,318,300
1,440,000 Massachusetts Industrial Finance Agency, Pollution Control
Revenue Bonds, 1993 Series (Eastern Edison Company
Project), 5.875%, 8/01/08 BBB 8/03 at 102 1,380,658
975,000 Massachusetts Industrial Finance, Library Revenue Bonds
(Malden Public Library Project), Series 1994, 7.250%, 1/01/15 Aaa 1/05 at 102 1,117,496
1,000,000 Massachusetts Industrial Finance Agency, Resource Recovery
Revenue Bonds (SEMASS Project), Series 1991A,
9.000%, 7/01/15 N/R 7/01 at 103 1,110,060
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 250,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
College of the Holy Cross-1992 Issue, 6.450%, 1/01/12
(Pre-refunded to 1/01/02) A1 1/02 at 102 $ 273,610
455,000 Massachusetts Industrial Finance Agency, Revenue
(Sturdy Memorial Hospital), 7.900%, 6/01/09 BBB+ 6/99 at 102 487,000
500,000 Massachusetts Industrial Finance Agency, Revenue Bonds
(Springfield College Project--1989 Issue), 7.800%, 10/01/09 A 10/99 at 103 561,815
1,335,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Merrimack College Issue, Series 1992, 7.125%, 7/01/12 BBB- 7/02 at 102 1,427,128
1,250,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Phillips Academy Issue, Series 1993, 5.375%, 9/01/23 Aa1 9/08 at 102 1,159,525
500,000 Massachusetts Industrial Finance Agency, Revenue Bonds
(Whitehead Institute for Biomedical Research--1993 Issue),
5.125%, 7/01/26 Aa 7/03 at 102 446,830
2,290,000 Massachusetts Industrial Finance Agency, Revenue and
Refunding Bonds, 1995 Series A (Lesley College Project),
6.300%, 7/01/25 AAA 7/05 at 102 2,363,280
1,750,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Harvard Community Health Plan, Inc., Issue 1988 Series B
(Refunding Bonds), 8.125%, 10/01/17 A 10/98 at 102 1,884,348
1,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds
(College of the Holy Cross--1996 Issue), 5.500%, 3/01/20 Aaa 3/06 at 102 948,880
500,000 Massachusetts Port Authority, Revenue Refunding Bonds,
Series 1978, 7.125%, 7/01/12 Aa 1/94 at 101 1/2 503,555
635,000 Massachusetts Port Authority, Revenue Bonds, Series 1982,
13.000%, 7/01/13 Aaa No Opt. Call 1,065,625
165,000 Massachusetts ST, General Obligation Bonds, Consolidated Loan
of 1990 Series A, 7.250%, 3/01/09 (Pre-refunded to
3/01/00) Aaa 3/00 at 102 182,280
1,000,000 Massachusetts Turnpike Authority, Turnpike Revenue Bonds,
1993 Series A, 5.125%, 1/01/23 Aaa 1/03 at 102 895,130
715,000 The Commonwealth of Massachusetts, General Obligation
Refunding Bonds, 1993 Series A, 5.500%, 2/01/11 A 2/03 at 102 700,686
250,000 The Massachusetts Bay Transportation Authority, Certificates of
Participation, Series 1988, 7.800%, 1/15/14 A- 12/06 at 100 288,260
City of Attleboro, Massachusetts, General Obligation Bonds:
450,000 6.250%, 1/15/10 Baa1 1/03 at 102 462,047
450,000 6.250%, 1/15/11 Baa1 1/03 at 102 460,553
Town of Barnstable, Massachusetts, General Obligation Bonds:
880,000 5.750%, 9/15/13 Aa 9/04 at 102 879,498
490,000 5.750%, 9/15/14 Aa 9/04 at 102 486,996
250,000 City of Boston, Massachusetts, General Obligation Bonds,
1989 Series A, 7.700%, 2/01/09 (Pre-refunded to 2/01/99) A 2/99 at 102 273,620
1,000,000 City of Boston, Massachusetts, General Obligation Bonds, 1991
Series A, 6.750%, 7/01/11 Aaa 7/01 at 102 1,105,720
1,500,000 City of Boston, Massachusetts, Revenue Bonds, Boston City
Hospital (FHA Insured Mortgage), Series A, 7.625%, 2/15/21
(Pre-refunded to 8/15/00) Aaa 8/00 at 102 1,687,815
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Boston Water and Sewer Commission (A Public Instrumentality
of the Commonwealth of Massachusetts), General Revenue
Bonds, 1986 Series A (Senior Series):
$ 180,000 7.875%, 11/01/13 (Pre-refunded to 11/01/96) A 11/96 at 102 $ 184,775
320,000 7.875%, 11/01/13 A 11/96 at 102 328,365
500,000 Boston Water and Sewer Commission, General Revenue Bonds,
1991 Series A (Senior Series), 7.000%, 11/01/18
(Pre-refunded to 11/01/01) Aaa 11/01 at 102 561,160
985,000 Boston-Mount Pleasant Housing Development Corporation,
Multifamily Housing Refunding Revenue Bonds,
Series 1992 A, 6.750%, 8/01/23 AAA 8/02 at 102 1,017,190
1,000,000 Dartmouth Housing Development Corporation Multifamily
Housing Refunding Revenue Bonds, Series 1989 (Crossroads
Apartments), FNMA Collateral, 7.375%, 7/01/24 AAA 1/98 at 103 1,032,480
Town of Deerfield, Massachusetts, General Obligation School
Bonds of 1992, School Project Loan, Act of 1948,
Bank-Qualified Unlimited Tax:
420,000 6.200%, 6/15/09 A1 6/02 at 102 445,129
415,000 6.250%, 6/15/10 A1 6/02 at 102 439,356
525,000 City of Haverhill, Massachusetts, General Obligation, Municipal
Purpose Loan of 1991 Bonds, 7.500%, 10/15/11 Baa 10/01 at 102 576,403
250,000 City of Holyoke, Massachusetts, General Obligation Bonds,
8.150%, 6/15/06 Aaa 6/02 at 103 298,075
590,000 City of Holyoke, Massachusetts, General Obligation Bonds,
1991 Series A, 8.000%, 6/01/01 Baa No Opt. Call 632,303
500,000 City of Holyoke, Massachusetts, General Obligation School
Project Loan, Act of 1948, 7.650%, 8/01/09 Baa 8/01 at 102 552,155
750,000 City of Holyoke, Massachusetts, General Obligation Refunding
Bonds, 7.000%, 11/01/08 Baa 11/02 at 102 808,403
City of Lowell, Massachusetts, General Obligation
Qualified Bonds:
545,000 8.300%, 2/15/05 Baa1 No Opt. Call 645,269
445,000 8.400%, 1/15/09 (Pre-refunded to 1/15/01) Aaa 1/01 at 102 518,332
1,000,000 City of Lynn, Massachusetts, General Obligation Bonds,
7.850%, 1/15/11 (Pre-refunded to 1/15/02) Aaa 1/02 at 104 1,176,380
500,000 Town of Monson, Massachusetts, General Obligation School
Project Loan, Act of 1948 Bonds, 7.700%, 10/15/10
(Pre-refunded to 10/15/00) Aaa 10/00 at 102 566,795
500,000 Town of Palmer, Massachusetts, General Obligation School
Project Loan, Act of 1948, 1990 Series B, 7.700%, 10/01/10
(Pre-refunded to 10/01/00) Aaa 10/00 at 102 566,320
500,000 Town of Palmer, Massachusetts, General Obligation Refunding
Bonds, 5.500%, 10/01/10 Aaa 10/03 at 102 499,245
1,130,000 City of Peabody, Massachusetts, General Obligation Electric
Bonds, 6.950%, 8/01/09 Aaa 8/00 at 100 1,220,321
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 250,000 Town of Sandwich, Massachusetts, Unlimited Tax, General
Obligation Bonds, 7.100%, 11/01/07 (Pre-refunded to 11/01/98) Aaa 11/98 at 102 1/2 $ 270,438
1,250,000 Somerville Housing Authority (Massachusetts), Mortgage
Revenue Bonds, Series 1990 (GNMA Collateralized-
Clarendon Hill Towers Project), 7.950%, 11/20/30 AAA 5/00 at 102 1,327,738
425,000 South Essex Sewerage District, Massachusetts, General
Obligation Bonds, 9.000%, 12/01/00 A No Opt. Call 493,765
1,000,000 City of Springfield, Massachusetts, General Obligation School
Project Loan, Act of 1948 Bonds, Series B, 7.100%, 9/01/11 Baa 9/02 at 102 1,073,770
City of Taunton, Massachusetts, General
Obligation (Electric Loan Act of 1969) Bonds:
1,465,000 8.000%, 2/01/02 A No Opt. Call 1,666,847
1,005,000 8.000%, 2/01/03 A No Opt. Call 1,159,226
250,000 University of Lowell Building Authority (Massachusetts),
Facilities Bonds, Fourth Series A (General Obligation Bonds),
7.400%, 11/01/07 A 11/97 at 102 264,222
500,000 University of Massachusetts Building Authority, Project
Revenue Bonds, Series 1988-A (General Obligation Bonds),
7.500%, 5/01/14 A 5/98 at 102 535,604
1,000,000 City of Worcester, Massachusetts, General Obligation Bonds,
8/01/04 BBB+ 8/02 at 102 1,039,500
1,000,000 Puerto Rico Aqueduct and Sewer Authority, Revenue Bonds,
Series 1988A, 7.875%, 7/01/17 (Pre-refunded to 7/01/98) AAA 7/98 at 102 1,085,060
2,250,000 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series P, 7.000%, 7/01/21 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 2,519,257
- -------------------------------------------------------------------------------------------------------------------------
$ 74,705,000 Total Investments -- (cost $74,866,438) -- 97.7% 78,991,293
- -------------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 0.9%
$ 500,000 The Commonwealth of Massachusetts, Dedicated Income Tax
Bonds, Fiscal Recovery Loan, Act of 1990, Series B, Variable
Rate Demand Bonds, 3.650%, 12/01/97+ VMIG-1 500,000
200,000 Massachusetts Health and Educational Facilities Authority
(Capital Asset Program), Variable Rate Demand Bonds,
3.850%, 1/01/35+ VMIG-1 200,000
- -------------------------------------------------------------------------------------------------------------------------
$ 700,000 Total Temporary Investments -- 0.9% 700,000
- -------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.4% 1,177,502
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 80,868,795
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 41 $38,023,178 48%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 10 10,493,090 13
PORTFOLIO OF A+ A1 6 6,223,543 8
INVESTMENTS A, A- A, A2, A3 14 11,735,619 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 13 10,872,488 14
TEMPORARY Non-rated Non-rated 2 1,643,375 2
INVESTMENTS):
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL 86 $78,991,293 100%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ 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.
28
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 250,000 Massachusetts Bay Transportation Auth, General Transportation
System Revenue, 1990 Series A, 7.250%, 3/01/03 Aaa 3/00 at 102 $ 276,373
250,000 Massachusetts Bay Transportation Auth, General Transportation
System 1989 Series A, 7.100%, 3/01/13 (Pre-refunded to 3/01/99) Aaa 3/99 at 102 270,968
1,000,000 Massachusetts Bay Transportation Authority, General
Transportation System Bonds, 1992 Series A, 5.750%, 3/01/22 Aaa 3/02 at 100 970,730
250,000 Massachusetts Bay Transportation Authority, Certificates of
Participation, 1990 Series A, 7.650%, 8/01/15
(Pre-refunded to 8/01/00) Aaa 8/00 at 102 281,665
450,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, St. Luke's Hospital of New Bedford Issue,
Series B, 7.750%, 7/01/13 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 472,842
200,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, South Shore Hospital Issue, Series B, 8.125%,
7/01/17 (Pre-refunded to 7/01/97) Aaa 7/97 at 102 210,762
250,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, South Shore Hospital Issue, Series C, 7.500%,
7/01/20 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 279,455
1,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, South Shore Hospital Issue, Series D,
6.500%, 7/01/22 Aaa 7/02 at 102 1,059,290
300,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Mount Auburn Hospital Issue, Series A,
7.875%, 7/01/18 (Pre-refunded to 7/01/98) Aaa 7/98 at 102 324,681
750,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Lahey Clinic Medical Center Issue, Series A,
7.600%, 7/01/08 (Pre-refunded to 7/01/98) Aaa 7/98 at 102 808,238
Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Lahey Clinic Medical Center Issue, Series B:
1,700,000 5.625%, 7/01/15 Aaa 7/03 at 102 1,644,291
2,500,000 5.375%, 7/01/23 Aaa 7/03 at 102 2,300,450
800,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Berkshire Health Systems Issue, Series A,
7.600%, 10/01/14 (Pre-refunded to 10/01/98) Aaa 10/98 at 102 867,320
750,000 Massachusetts Health and Educational Facilities Authority
Revenue Bonds, Salem Hospital Issue, Series A,
7.250%, 7/01/09 (Pre-refunded to 7/01/97) Aaa 7/97 at 100 770,490
250,000 Massachusetts Health & Ed. Facs Authority, Revenue Bonds,
Capital Asset Program, 7.200%, 7/01/09 Aaa 7/99 at 102 269,908
500,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, University Hospital Issue, Series C,
7.250%, 7/01/19 Aaa 7/00 at 102 545,495
250,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Newton-Wellesley Hospital Issue, Series C,
8.000%, 7/01/18 (Pre-refunded to 7/01/98) Aaa 7/98 at 102 271,068
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
<CAPTION>
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 250,000 Massachusetts Health and Educational Facilities Authority
Revenue Bonds, Northeastern University Issue, Series B,
7.600%, 10/01/10 Aaa 10/98 at 102 $ 269,993
1,600,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Northeastern University Issue, Series E,
6.550%, 10/01/22 Aaa 10/02 at 102 1,725,632
500,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Baystate Medical Center Issue, Series C,
7.500%, 7/01/20 (Pre-refunded to 7/01/99) A+ 7/99 at 102 545,980
500,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Stonehill College Issue, Series D,
7.700%, 7/01/20 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 563,145
1,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Boston College Issue, Series J,
6.625%, 7/01/21 Aaa 7/01 at 102 1,071,980
500,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Berklee College of Music Issue, Series C,
6.875%, 10/01/21 Aaa 10/01 at 102 545,035
1,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Brigham and Woman's Hospital Issue,
Series D, 6.750%, 7/01/24 A1 7/01 at 102 1,039,460
250,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Beverly Hospital Issue, Series D,
7.300%, 7/01/19 (Pre-refunded to 7/01/99) Aaa 7/99 at 102 273,495
1,500,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, New England Medical Center Hospitals Issue,
Series F, 6.625%, 7/01/25 Aaa 7/02 at 102 1,600,710
1,450,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Boston University Issue, Series M,
6.000%, 10/01/22 Aaa 10/02 at 100 1,458,338
2,000,000 Massachusetts Health and Educational Facilities Authority,
Revenue Bonds, Bentley College Issue, Series I,
6.125%, 7/01/17 Aaa 7/02 at 102 2,037,120
350,000 Massachusetts Housing Finance Agency, Housing Revenue Bonds,
1989 Series A, 7.600%, 12/01/16 Aaa 12/99 at 103 368,116
500,000 Massachusetts Housing Finance Agency, Single Family Housing
Revenue Bonds, Series 18, 7.350%, 12/01/16 Aa 6/01 at 102 528,165
250,000 Massachusetts Housing Finance Agency, Single Family Housing
Revenue Bonds, Series 8, 7.700%, 6/01/17 Aa 6/98 at 102 263,660
1,590,000 Massachusetts Industrial Finance Agency, Library Revenue Bonds,
(Malden Public Library Project), Series 1994, 7.250%, 1/01/15 Aaa 1/05 at 102 1,822,379
500,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Brandeis University Issue, 1989 Series C, 6.800%, 10/01/19 Aaa 10/99 at 102 535,710
200,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Harvard Community Health Plan, Inc., Issue 1988 Series B
(Refunding Bonds), 7.750%, 10/01/08 Aaa 10/98 at 102 216,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 250,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Milton Academy Issue, Series A, 7.250%, 9/01/19
(Pre-refunded to 9/01/99) Aaa 9/99 at 102 $ 274,485
375,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
Museum of Science Issue, Series 1989, 7.300%, 11/01/09
(Pre-refunded to 11/01/99) Aaa 11/99 at 102 413,475
1,000,000 Massachusetts Industrial Finance Agency, Revenue Refunding
Bonds, Mount Holyoke College Issue, Series 1992A,
6.300%, 7/01/13 Aaa 7/01 at 102 1,045,270
420,000 Massachusetts Industrial Finance Agency Revenue Bonds,
Babson College Issue, Series 1995A, 5.800%, 10/01/10 Aaa 10/05 at 102 427,228
1,000,000 Massachusetts Industrial Finance Agency, Revenue Bonds,
(College of the Holy Cross - 1996 Issue), 5.500%, 3/01/20 Aaa 3/06 at 102 948,880
2,000,000 Massachusetts Municipal Wholesale Electric Company, Power
Supply System Revenue Bonds, 1993 Series A,
5.000%, 7/01/10 Aaa 7/03 at 102 1,869,820
1,000,000 Massachusetts Port Authority, Revenue Bonds, Series 1982,
13.000%, 7/01/13 Aaa No Opt. Call 1,678,150
250,000 Massachusetts ST, General Obligation Bonds, Consolidated Loan
of 1990 Series A, 7.250%, 3/01/09 (Pre-refunded to 3/01/00) Aaa 3/00 at 102 276,182
Massachusetts ST, General Obligation Bonds, Consolidated Loan
Series 1992-A:
500,000 6.500%, 6/01/08 Aaa 6/02 at 101 540,940
1,200,000 6.000%, 6/01/13 Aaa 6/02 at 100 1,218,792
1,000,000 Massachusetts Turnpike Authority, Turnpike Revenue Bonds,
1993 Series A, 5.125%, 1/01/23 Aaa 1/03 at 102 895,130
1,000,000 City of Boston, Massachusetts, General Obligation Bonds,
1991 Series A, 6.750%, 7/01/11 Aaa 7/01 at 102 1,105,720
500,000 City of Boston, Massachusetts, Revenue Bonds, Boston City
Hospital (FHA Insured Mortgage), Series A, 7.625%, 2/15/21
(Pre-refunded to 8/15/00) Aaa 8/00 at 102 562,605
500,000 Boston Water and Sewer Commission, General Revenue Bonds,
1991 Series A, (Senior Series), 7.000%, 11/01/18
(Pre-refunded to 11/01/01) Aaa 11/01 at 102 561,160
500,000 Boston Water and Sewer Commission, (A Public Instrumentality
of The Commonwealth of Massachusetts), General Revenue
Bonds, 1988 Series A, (Subordinated Series),
7.250%, 11/01/06 Aaa 11/98 at 100 528,445
500,000 City of Fall River, Massachusetts General Obligation Bonds,
7.200%, 6/01/10 Aaa 6/01 at 102 554,890
250,000 Town of Groveland, Massachusetts, General Obligation Bonds,
6.900%, 6/15/07 Aaa 6/01 at 102 275,348
1,000,000 City of Haverhill, Massachusetts, General Obligation, Hospital
Refunding Bonds, Series A, 6.700%, 9/01/10 Aaa 9/01 at 102 1,080,570
250,000 City of Holyoke, Massachusetts, General Obligation Bonds,
8.150%, 6/15/06 Aaa 6/02 at 103 298,075
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
<CAPTION>
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 450,000 City of Leominster, Massachusetts, General Obligation Bonds,
7.500%, 4/01/09 Aaa 4/00 at 102 $ 500,913
2,625,000 City of Lowell, Massachusetts, General Obligation State
Qualified Bonds, 5.600%, 11/01/12 Aaa 11/03 at 102 2,578,249
1,025,000 City of Lynn, Massachusetts, General Obligation Bonds,
6.750%, 1/15/02 Aaa No Opt. Call 1,116,861
250,000 Lynn, Massachusetts, Water and Sewer Commission, General
Revenue Bonds, 1990 Series A, 7.250%, 12/01/10
(Pre-refunded to 12/01/00) Aaa 12/00 at 102 279,888
1,000,000 Town of Mansfield, Massachusetts, General Obligation Bonds,
6.700%, 1/15/11 Aaa 1/02 at 102 1,085,390
250,000 Town of Methuen, Massachusetts, General Obligation Bonds,
7.400%, 5/15/04 Aaa 5/00 at 102 276,145
500,000 Town of Monson, Massachusetts, General Obligation School
Project Loan, Act of 1948 Bonds, 7.700%, 10/15/10
(Pre-refunded to 10/15/00) Aaa 10/00 at 102 566,795
1,500,000 Town of Monson, Massachusetts, General Obligation, Bank-
Qualified Unlimited Tax, School Refunding Bonds,
5.500%, 10/15/10 Aaa No Opt. Call 1,503,555
300,000 Town of North Andover, Massachusetts, General Obligation
Bonds, 7.400%, 9/15/10 Aaa 9/00 at 103 335,946
North Middlesex Regional School District, School Bonds
of 1990:
270,000 7.200%, 6/15/08 Aaa 6/00 at 103 299,109
245,000 7.200%, 6/15/09 Aaa 6/00 at 103 271,413
250,000 City of Northampton, Massachusetts, General Obligation Bonds,
Bank-Qualified, 5.300%, 3/01/10 Aaa 3/03 at 102 246,050
190,000 Town of Northfield, Massachusetts, General Obligation Bonds,
Municipal Purpose Loan of 1992, Bank-Qualified,
6.350%, 10/15/09 Aaa 10/01 at 102 201,875
270,000 Town of Palmer, Massachusetts, General Obligation School
Bonds of 1990, Series A, School Project Loan of 1948,
7.300%, 3/01/10 (Pre-refunded to 3/01/00) Aaa 3/00 at 102 298,712
250,000 Town of Palmer, Massachusetts, General Obligation, School
Project Loan, Act of 1948, 1990 Series B, 7.700%, 10/01/10
(Pre-refunding to 10/01/00) Aaa 10/00 at 102 283,160
1,000,000 Town of Palmer, Massachusetts, General Obligation Refunding
Bonds, 5.500%, 10/01/10 Aaa 10/03 at 102 998,490
440,000 Quaboag Regional School District, General Obligation School
Bonds of 1991, Ult - Bank Qualified, 6.250%, 6/15/08 Aaa 6/02 at 102 469,682
City of Salem, Massachusetts, General Obligation Bonds:
500,000 6.800%, 8/15/09 Aaa 8/01 at 102 550,035
900,000 6.000%, 7/15/10 Aaa 7/02 at 102 932,157
250,000 Town of Sandwich, Massachusetts, Unlimited Tax, General
Obligation Bonds, 7.100%, 11/01/07
(Pre-refunded to 11/01/98) Aaa 11/98 at 1021/2 270,438
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 515,000 Southern Berkshire Regional School Dist, General Obligation
School Bonds, Unlimited Tax, 7.500%, 4/15/07
(Pre-refunded to 4/15/02) Aaa 4/02 at 102 $ 592,199
1,145,000 Southern Berkshire Regional School District, Massachusetts,
General Obligation School Bonds, 7.000%, 4/15/11 Aaa 4/02 at 102 1,281,953
250,000 City of Springfield, Massachusetts, Municipal Purpose Loan of
1988, (General Obligation Bonds.), 7.000%, 11/01/07 Aaa 11/98 at 103 269,815
220,000 Taunton, Massachusetts, General Obligation Bonds,
6.800%, 9/01/09 Aaa 9/01 at 103 241,514
455,000 Town of Wareham, Massachusetts, General Obligation School
Bonds, 7.050%, 1/15/07 Aaa 1/01 at 103 503,066
250,000 City of Westfield, Massachusetts, General Obligation Bonds,
7.100%, 12/15/08 (Pre-refunded to 12/15/00) Aaa 12/00 at 102 278,648
215,000 Town of Whately, Massachusetts, General Obligation Bonds,
6.350%, 1/15/09 Aaa 1/02 at 102 226,548
1,210,000 Town of Winchendon, Massachusetts, Unlimited Tax, General
Obligation Bonds, 6.050%, 3/15/10 Aaa 3/03 at 102 1,260,273
160,000 City of Worcester, Massachusetts, General Obligation Bonds,
6.900%, 5/15/07 Aaa 5/02 at 102 179,496
1,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of
1995 (General Obligation Bonds), 5.750%, 7/01/24 Aaa 7/05 at 1011/2 977,520
2,290,000 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Hospital
Revenue Bonds, 1995 Series A, (Hospital Auxilio Mutuo
Obligated Group Project), 6.250%, 7/01/16 Aaa 1/05 at 102 2,398,981
- -------------------------------------------------------------------------------------------------------------------------
$59,060,000 Total Investments -- (cost $58,941,628) -- 96.8% 62,318,985
===========--------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 1.7%
$ 1,100,000 The Commonwealth of Massachusetts, Dedicated Income Tax
=========== Bonds, Fiscal Recovery Loan, Act of 1990, Series B, Variable
Rate Demand Bonds, 3.650%, 12/01/97+ VMIG-1 1,100,000
- -------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.5% 951,666
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $64,370,651
=========================================================================================================================
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
NUMBER OF MARKET PORTFOLIO
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 80 $59,941,720 96%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 2 791,825 1
PORTFOLIO OF A+ A1 2 1,585,440 3
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -------------------------------------------------------------------------------------------------
TOTAL 84 $62,318,985 100%
- -------------------------------------------------------------------------------------------------
</TABLE>
All of the bonds in the portfolio, excluding temporary investments in short-term
municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or
trust containing sufficient U.S. Government or U.S. Government agency
securities, any of which ensure the timely payment of principal and interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
+ 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.
34
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
NUVEEN NEW YORK TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 500,000 Certificates of Participation, The State of New York,
Commissioner of the Office of Mental Health of the State of
New York, 8.300%, 9/01/12 Baa1 9/97 at 102 $ 527,000
500,000 Dormitory Authority of the State of New York, Hospital
Revenue Bonds, Long Island Jewish Medical Center
(FHA-Insured Mortgage), Series 1988, 7.750%, 8/15/27 AAA 2/98 at 102 528,940
500,000 Dormitory Authority of the State of New York, City University
Refunding Bonds, 1988B Issue, 8.200%, 7/01/13 Baa1 7/98 at 102 540,035
750,000 Dormitory Authority of the State of New York, GNMA
Collateralized Revenue Bonds (Park Ridge Housing, Inc.
Project), Series 1989, 7.850%, 2/01/29 AAA 2/99 at 102 808,995
1,985,000 Dormitory Authority of the State of New York, United Health
Services, Inc., FHA-Insured Mortgage Revenue Bonds,
Series 1989, 7.350%, 8/01/29 AAA 2/00 at 102 2,130,580
1,000,000 Dormitory Authority of the State of New York, City University
System Consolidated Revenue Bonds, Series 1990A,
7.625%, 7/01/20 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 1,125,560
2,000,000 Dormitory Authority of the State of New York, State University
Educational Facilities Revenue Bonds, Series 1990A,
7.400%, 5/15/01 Baa1 5/00 at 102 2,156,380
750,000 Dormitory Authority of the State of New York, City University
System Consolidated, Second General Resolution Revenue
Bonds, Series 1990C, 7.500%, 7/01/10 Baa1 2/99 at 99 861,165
2,250,000 Dormitory Authority of the State of New York, Judicial
Facilities Lease Revenue Bonds (Suffolk County Issue),
Series 1991A, 9.500%, 4/15/14 Baa1 10/96 at 115 7/8 2,624,828
2,000,000 Dormitory Authority of the State of New York, State University
Educational Facilities Revenue Bonds, Series 1993A,
5.500%, 5/15/08 Baa1 No Opt. Call 1,929,580
1,500,000 Dormitory Authority of the State of New York, City University
System Consolidated Second General Resolution Revenue
Bonds, Series 1993A, 5.750%, 7/01/07 Baa1 No Opt. Call 1,492,110
1,375,000 Dormitory Authority of the State of New York, University of
Rochester, Strong Memorial Hospital Revenue Bonds,
Series 1994, 5.500%, 7/01/21 A1 7/04 at 102 1,280,826
2,225,000 Dormitory Authority of the State of New York, Court Facilities
Lease Revenue Bonds (The City of New York Issue),
Series 1993A, 5.700%, 5/15/22 Baa1 5/03 at 101 1/2 2,049,247
1,125,000 Dormitory Authority of the State of New York, State University
Education Facilities, Revenue Bonds, Series 1993B,
5.250%, 5/15/09 Baa1 No Opt. Call 1,052,505
2,225,000 Dormitory Authority of the State of New York, City University
Refunding Bonds, 1993C Issue, 5.750%, 7/01/12 Baa1 No Opt. Call 2,145,323
2,195,000 Dormitory Authority of the State of New York, Revenue Bonds,
Upstate Community Colleges, Series 1995A, 6.500%, 7/01/07 Baa1 No Opt. Call 2,307,186
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK TAX-FREE VALUE FUND CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,500,000 Dormitory Authority of the State of New York, Nursing Homes
Revenue Bonds, (Letter of Credit Secured), 1995 Issue A,
5.750%, 7/01/17 Aa3 7/05 at 102 $ 3,378,235
2,500,000 Dormitory Authority of the State of New York, W.K. Nursing
Home Corporation, FHA-Insured Mortgage Revenue Bonds,
Series 1996, 5.950%, 2/01/16 AAA 8/06 at 102 2,495,575
2,615,000 Empire State Development Corporation, New York State Urban
Development Corporation, Project Revenue Bonds (Pine
Barrens), 1996 Series, 5.375%, 4/01/17 Baa1 4/05 at 102 2,339,353
3,000,000 New York Local Government Assistance Corporation,
Series 1993B, Refunding Bonds, 5.000%, 4/01/23 A 4/04 at 100 2,601,900
2,000,000 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1992
Series A, 5.500%, 8/15/21 Aaa 2/02 at 100 1,860,400
1,545,000 New York State Environmental Facilities Corporation, State Park
Infrastructure Special Obligation Bonds, Series 1993A,
5.750%, 3/15/13 Baa1 3/03 at 101 1,475,954
2,250,000 New York State Finance Agency, Housing Project Mortgage
Revenue Bonds, 1996 Series A Refunding, 6.125%, 11/01/20 Aaa 5/06 at 102 2,261,880
200,000 New York State Housing Finance Agency, State University
Construction Refunding Bonds, 1986 Series A,
8.000%, 5/01/11 Aaa No Opt. Calls 245,970
1,650,000 New York State Housing Finance Agency, Insured Multi-Family
Mortgage Housing Revenue Bonds, 1992 Series A,
6.950%, 8/15/12 Aa 8/02 at 102 1,747,977
New York State Housing Finance Agency, Health Facilities
Revenue Bonds (New York City), 1990 Series A Refunding:
1,660,000 8.000%, 11/01/08 (Pre-refunded to 11/01/00 Aaa 11/00 at 102 1,902,974
340,000 8.000%, 11/01/08 BBB+ 11/00 at 102 378,760
2,990,000 New York State Housing Finance Agency, Service Contract
Obligation Revenue Bonds, 1993 Series C Refunding,
5.875%, 9/15/14 Baa1 9/03 at 102 2,837,091
4,250,000 New York State Housing Finance Agency, Service Contract
Obligation Revenue Bonds, 1993 Series A, 5.500%, 9/15/22 Baa1 9/03 at 102 3,795,123
1,000,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home Insured Mortgage Revenue Bonds, 1987
Series A, 8.000%, 2/15/27 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 1,049,330
995,000 New York State Medical Care Facilities Finance Agency, Albany
Medical Center Hospital Project Revenue Bonds, 1987 Series A,
8.000%, 2/15/28 AAA 8/98 at 102 1,069,516
995,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home Insured Mortgage Revenue Bonds, 1989
Series B, 7.350%, 2/15/29 Aa 8/99 at 102 1,065,456
1,000,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1988 Series C, 7.700%, 2/15/22 (Pre-refunded to 8/15/98) AAA 8/98 at 102 1,083,160
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,250,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1987 Series A, 8.300%, 2/15/22 (Pre-refunded to 2/15/98) AAA 2/98 at 102 $ 1,346,088
2,250,000 New York State Medical Care Facilities Finance Agency, Hospital
Insured Mortgage Revenue Bonds, 1987 Series A Refunding,
8.000%, 2/15/25 (Pre-refunded to 8/15/97) Aaa 8/97 at 102 2,378,408
2,000,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series B, 6.200%, 8/15/22 AAA 8/02 at 102 2,030,640
1,495,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1992 Series D, 6.450%, 2/15/09 AAA 2/03 at 102 1,589,469
1,460,000 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds, 1991
Series A, 7.500%, 2/15/21 (Pre-refunded to 2/15/01) Aaa 2/01 at 102 1,653,289
2,500,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1994 Series A, 6.200%, 2/15/21 AAA 2/04 at 102 2,523,925
1,500,000 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds,
1994 Series E, 6.500%, 8/15/24 Baa1 8/04 at 102 1,539,165
1,000,000 New York State Medical Care Facilities Finance Agency, Health
Center Projects Revenue Bonds (Secured Mortgage Program),
1995 Series A, 6.375%, 11/15/19 Aa 11/05 at 102 1,029,750
1,250,000 New York State Medical Care Facilities Agency, New York
Downtown Hospital Secured Hospital Revenue Bonds,
1995 Series A, 6.700%, 2/15/12 Baa 2/05 at 102 1,273,738
2,470,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1994 Series C, 6.400%, 8/15/14 AAA 8/04 at 102 2,551,584
New York State Medical Care Facilities Finance Agency,
New York Hospital FHA-Insured Mortgage Revenue Bonds,
1994 Series A:
1,000,000 6.750%, 8/15/14 Aaa 2/05 at 102 1,090,210
1,000,000 6.800%, 8/15/24 Aaa 2/05 at 102 1,093,540
New York State Medical Care Facilities Finance Agency,
Brookdale Hospital Medical Center Secured Hospital Revenue
Bonds, 1995 Series A:
1,000,000 6.400%, 2/15/01 Baa No Opt. Call 1,026,400
2,700,000 6.800%, 8/15/12 Baa 2/05 at 102 2,771,604
4,000,000 New York State Medical Care Facilities Finance Agency,
Montefiore Medical Center FHA-Insured Mortgage Revenue
Bonds, 1995 Series A, 5.750%, 2/15/25 Aaa 2/05 at 102 3,888,080
1,000,000 New York State Urban Development Corporation, Section 236
Revenue Bonds, Series 1992A, 6.750%, 1/01/26 Aaa 1/02 at 102 1,079,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,100,000 New York State Urban Development Corporation, Project
Revenue Bonds (Syracuse University Center for Science and
Technology), Series 1987, 7.875%, 1/01/17
(Pre-refunded to 1/01/98) Baa1 1/98 at 102 $ 1,174,063
1,000,000 New York State Urban Development Corporation, Correctional
Capital Facilities Revenue Bonds, Series 1, 7.500%, 1/01/20
(Pre-refunded to 1/01/00) Aaa 1/00 at 102 1,110,580
2,000,000 New York State Urban Development Corporation, Project
Revenue Bonds (Clarkson Center for Advanced Materials
Processing Loan), Series 1990, 7.800%, 1/01/20
(Pre-refunded to 1/01/01) Baa1 1/01 at 102 2,275,800
2,900,000 New York State Urban Development Corporation, State Facilities
Revenue Bonds, Series 1991, 7.500%, 4/01/20
(Pre-refunded to 4/01/01) Aaa 4/01 at 102 3,295,473
1,000,000 New York State Urban Development Corporation, Project
Revenue Bonds (Cornell Center for Theory and Simulation in
Science and Engineering Grant), Series 1993, 6.00%, 1/01/14 Baa 1/03 at 102 966,990
New York State Urban Development Corporation, Correctional
Capital Facilities Revenue Bonds, 1993 Refunding Series:
2,490,000 5.750%, 1/01/13 Baa1 1/03 at 102 2,363,458
5,090,000 5.500%, 1/01/15 Baa1 1/03 at 102 4,642,691
380,000 New York State Mortgage Agency, Mortgage Revenue Bonds,
Ninth Series E, 8.100%, 10/01/17 Aa 4/98 at 102 396,184
3,000,000 State of New York, General Obligation Refunding Bonds,
Series 1995C, 5.625%, 10/01/20 A 10/05 at 101 2,888,850
2,100,000 Town of Babylon Industrial Development Agency, (New York),
Resource Recovery Revenue Bonds, Series 1985 (Ogden Martin
Systems of Babylon, Inc. Project), 8.500%, 1/01/19 Baa1 7/98 at 103 2,318,337
1,000,000 City of Batavia Housing Authority, Tax-Exempt Mortgage
Revenue Refunding Bonds, Series 1994A (Washington Towers--
FHA-Insured Mortgage), 6.500%, 1/01/23 Aaa 7/01 at 102 1,017,520
1,000,000 Town of Brookhaven, Industrial Development Agency, 1993
Civic Facility Revenue Bonds (Dowling College/The National
Aviation and Transportation Center Civic Facility),
6.750%, 3/01/23 BBB 3/03 at 102 1,026,300
2,000,000 Certificates of Participation, The State of New York, The City
University of New York (John Jay College of Criminal Justice
Project Refunding), 6.000%, 8/15/06 Baa1 No Opt. Call 2,020,840
2,470,000 Dutchess County Industrial Development Agency, Civic Facility
Revenue Bonds (the Bard College Project), Series 1992,
7.000%, 11/01/17 A 11/03 at 102 2,610,765
1,000,000 County of Franklin Industrial Development Agency, Lease
Revenue Bonds (County Correctional Facility Project),
Series 1992, 6.750%, 11/01/12 BBB 11/02 at 102 1,044,160
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 750,000 Town of Hempstead Industrial Development Agency, Civic
Facility Revenue Bonds, (United Cerebral Palsy Association
of Nassau County, Inc. Civic Facility Project--1989 Series),
7.500%, 10/01/09 Aa2 10/99 at 102 $ 790,343
2,500,000 Housing New York Corporation, Senior Revenue Refunding
Bonds, Series 1993, 5.00%, 11/01/13 AA 11/03 at 102 2,258,975
1,000,000 Metropolitan Transportation Authority, Commuter Facilities
Revenue Bonds, Series 1992B, 6.250%, 7/01/17 Aaa 7/02 at 102 1,033,320
1,000,000 Metropolitan Transportation Authority (New York), Commuter
Facilities 1987 Service Contract Bonds, Series 3, 7.500%,
7/01/16 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 1,121,200
4,000,000 Metropolitan Transportation Authority (New York), Transit
Facilities Service Contract Bonds, Series P, 5.750%, 7/01/15 Baa1 7/03 at 101 1/2 3,765,240
1,025,000 Metropolitan Transportation Authority, Transit Facilities
Revenue Bonds, Series J, 6.500%, 7/01/18 Aaa 7/02 at 102 1,094,926
2,000,000 The City of New York, General Obligation Bonds, Fiscal 1992
Series B, 7.500%, 2/01/06 Baa1 2/02 at 101 1/2 2,204,040
45,000 The City of New York, General Obligation Bonds, Fiscal 1992
Series C, Fixed Rate Bonds, Subseries C1, 6.625%, 8/01/13 Aaa 8/02 at 101 1/2 48,642
The City of New York, General Obligation Bonds, Fiscal 1996
Series G:
2,000,000 5.750%, 2/01/17 Baa1 2/06 at 101 1/2 1,841,140
2,500,000 5.750%, 2/01/20 Baa1 2/06 at 101 1/2 2,277,274
1,000,000 The City of New York, General Obligation Bonds, Fiscal 1996
Series F, 5.750%, 2/01/19 Baa1 2/06 at 101 1/2 912,600
2,000,000 The City of New York, General Obligation Bonds, Fiscal 1997
Series C, 5.875%, 2/01/16 Baa1 8/06 at 101 1/2 1,874,600
2,000,000 New York City Housing Development Corporation,
Multi-Family Mortgage Revenue Bonds (FHA Insured
Mortgage Loan), 1993 Series A, 6.550%, 10/01/15 AAA 4/03 at 102 2,071,480
1,000,000 New York City Housing Development Corporation, Multi-Unit
Mortgage Refunding Bonds (FHA Insured Mortgage Loans),
1991 Series A, 7.350%, 6/01/19 AAA 6/01 at 102 1,061,970
1,000,000 New York City Housing Development Corporation, Multi-Family
Housing Revenue Bonds, 1993 Series A, 5.850%, 5/01/26 Aa 5/03 at 102 972,480
1,500,000 New York City, Municipal Water Finance Authority (New York),
Water and Sewer System Revenue Bonds, Fiscal 1991 Series C,
7.750%, 6/15/20 (Pre-refunded to 6/15/01) Aaa 6/01 at 101 1/2 1,714,530
2,000,000 New York City Municipal Water Finance Authority, Water and
Sewer Revenue Bonds, Fiscal 1993 Series A, 5.500%, 6/15/20 A 6/02 at 100 1,834,940
4,000,000 New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Fiscal 1996 Series A,
6.000%, 6/15/25 A 6/05 at 101 3,980,560
4,000,000 New York City Housing Development Corporation, Multi-Family
Housing Revenue Bonds, 1996 Series A, 5.625%, 5/01/12 (WI) Aa 5/06 at 102 3,940,360
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,845,000 New York City Industrial Development Agency, Civic Facility
Revenue Bonds, (1992 The Lighthouse, Inc. Project),
6.500%, 7/01/22 AA 7/02 at 102 $ 5,037,104
New York City Industrial Development Agency Civic Facility
Revenue Bonds, (College of New Rochelle Project), Series 1995:
1,000,000 6.200%, 9/01/10 Baa 9/05 at 102 988,950
1,000,000 6.300%, 9/01/15 Baa 9/05 at 102 973,570
2,345,000 Newark-Wayne Community Hospital, Inc., Hospital Revenue
Improvement and Refunding Bonds, Series 1993A,
7.600%, 9/01/15 N/R 9/03 at 102 2,215,603
1,000,000 Orangetown Housing Authority (Rockland County, New York),
Housing Facilities Revenue Bonds, (Orangetown Senior
Housing Center--1990 Series), 7.600%, 4/01/30
(Pre-refunded to 10/01/00) A 10/00 at 102 1,127,350
South Orangetown Central School District, Rockland County,
New York, Serial General Obligation Bonds, Series 1990:
390,000 6.875%, 10/01/08 A No Opt. Call 440,739
390,000 6.875%, 10/01/09 A No Opt. Call 439,347
3,015,000 Suffolk County Industrial Development Agency, Civic Facility
Revenue Bonds, (Dowling College Civic Facility), Series 1994,
6.625%, 6/01/24 BBB 6/04 at 102 3,063,270
1,000,000 Suffolk County Industrial Development Agency, Civic Facility
Revenue Refunding Bonds, (Dowling College Civic Facility),
Series 1996, 6.700%, 12/01/20 BBB 12/06 at 102 998,080
2,000,000 34th Street Partnership, Inc., 34th Street Business Improvement
District, Capital Improvement Bonds, Series 1993,
5.500%, 1/01/23 A1 1/03 at 102 1,825,260
2,000,000 Triborough Bridge and Tunnel Authority (New York), Special
Obligation Refunding Bonds, Series 1991B, 7.100%, 1/01/10 A1 1/01 at 102 2,165,060
2,000,000 Triborough Bridge and Tunnel Authority, Special Obligation
Refunding Bonds, Series 1991B, 7.100%, 1/01/10 Aaa 1/01 at 102 2,196,900
2,100,000 UFA Development Corporation, Utica, New York, FHA-Insured
Mortgage Revenue Bonds, Series 1993 (Loretto-Utica Project),
5.950%, 7/01/35 Aa 7/04 at 102 2,025,996
2,000,000 New York City Industrial Development Agency, Civic Facility
Revenue Bonds (1992 Jewish Board of Family and Children
Services, Inc., Project), 6.750%, 12/15/12 BBB-- 12/02 at 102 2,037,160
- -------------------------------------------------------------------------------------------------------------------------
$172,180,000 Total Investments -- (cost $167,654,909) -- 100.9% 173,498,824
============-------------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 0.4%
$ 700,000 The City of New York, General Obligation Bonds, Fiscal 1994
========== Series A, Adjustable Rate Bonds, Subseries A-4, Variable Rate
Demand Bonds, 3.600%, 8/01/21+ VMIG-1 700,000
- -------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- (1.3)% (2,276,863)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $171,921,961
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 34 $ 53,553,654 31%
RATINGS* AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 11 22,642,860 13
PORTFOLIO OF A+ A1 3 5,271,146 3
INVESTMENTS A, A-- A, A2, A3 8 15,924,451 9
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 40 73,891,110 43
TEMPORARY Non-Rated Non-Rated 1 2,215,603 1
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------------------------
TOTAL 97 $173,498,824 100%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices and later dates.
(WI) Security purchased on a when issued basis (note 1).
+ 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.
41
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,415,000 Dormitory Authority of the State of New York, College and
University Revenue (Pooled Capital Program), Series 1985,
7.800%, 12/01/05 Aaa 12/98 at 102 $ 1,527,747
1,490,000 Dormitory Authority of the State of New York, United Health
Services, Inc., FHA-Insured Mortgage Revenue Bonds,
Series 1989, 7.350%, 8/01/29 AAA 2/00 at 102 1,599,277
1,490,000 Dormitory Authority of the State of New York, Iona College,
Insured Revenue Bonds, Series 1988, 7.625%, 7/01/09 Aaa 7/98 at 102 1,599,187
1,200,000 Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1989B,
7.250%, 5/15/15 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 1,331,568
1,000,000 Dormitory Authority of the State of New York, United Cerebral
Palsy Association of Westchester County, Inc., Insured Revenue
Bonds, Series 1992, 6.200%, 7/01/12 Aaa 7/02 at 102 1,035,940
1,000,000 Dormitory Authority of the State of New York, Manhattanville
College, Insured Revenue Bonds, Series 1990,
7.500%, 7/01/22 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 1,121,200
2,500,000 Dormitory Authority of the State of New York, City University
System Consolidated Second General Resolution Revenue
Bonds, Series 1990C, 7.000%, 7/01/14 Aaa 7/00 at 102 2,715,100
1,800,000 Dormitory Authority of the State of New York, City University
System Consolidated Second General Resolution Revenue
Bonds, Series 1993A, 5.750%, 7/01/18 Aaa No Opt. Call 1,798,722
6,295,000 Dormitory Authority of the State of New York, City University
System Consolidated Second General Resolution Revenue
Bonds, Series 1990F, 7.500%, 7/01/20
(Pre-refunded to 7/01/00) Aaa 7/00 at 102 7,057,954
2,500,000 Dormitory Authority of the State of New York, Cooper Union,
Insured Revenue Bonds, Series 1990, 7.200%, 7/01/20 Aaa 7/01 at 102 2,777,975
2,500,000 Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1993A,
5.250%, 5/15/15 Aaa No Opt. Call 2,383,800
1,200,000 Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990C,
7.000%, 5/15/18 (Pre-refunded to 5/15/00) Aaa 5/00 at 102 1,321,440
2,000,000 Dormitory Authority of the State of New York, State University
Educational Facilities, Revenue Bonds, Series 1990A,
6.500%, 5/15/19 (Pre-refunded to 5/15/00) Aaa 5/00 at 100 2,136,100
5,000,000 Dormitory Authority of the State of New York, New York
University Insured Revenue Bonds, Series 1991,
6.250%, 7/01/09 Aaa 7/01 at 102 5,223,850
1,000,000 Dormitory Authority of the State of New York, Fordham
University, Insured Revenue Bonds, Series 1990,
7.200%, 7/01/15 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 1,110,750
4,640,000 Dormitory Authority of the State of New York, Mount Sinai
School of Medicine, Insured Revenue Bonds, Series 1994A,
5.000%, 7/01/21 Aaa 7/04 at 102 4,118,139
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
42
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,175,000 Dormitory Authority of the State of New York, University of
Rochester, Strong Memorial Hospital Revenue Bonds,
Series 1994, 5.500%, 7/01/21 Aaa 7/04 at 102 $ 1,104,571
1,500,000 Dormitory Authority of the State of New York, Sarah Lawrence
College, Revenue Bonds, Series 1995, 6.000%, 7/01/24 Aaa 7/05 at 102 1,513,530
6,460,000 Dormitory Authority of the State of New York, St. Vincent's
Hospital and Medical Center of New York, FHA-Insured
Mortgage Revenue Bonds, Series 1995, 5.800%, 8/01/25 Aaa 8/05 at 102 6,287,583
3,730,000 Dormitory Authority of the State of New York, Maimonides
Medical Center, FHA-Insured Mortgage Hospital Revenue
Bonds, Series 1996A, 5.750%, 8/01/24 Aaa 2/06 at 102 3,626,343
New York Medical Care Facilities Finance Agency, Mental Health
Services Facilities Improvement Revenue Bonds, 1992 Series A:
5,000 6.375%, 8/15/17 (Pre-refunded to 2/15/02) Aaa 2/02 at 102 5,466
6,145,000 6.375%, 8/15/17 Aaa 12/02 at 102 6,437,625
3,500,000 New York State Energy Research and Development Authority,
Gas Facilities Revenue Bonds, 1996 Series (The Brooklyn
Union Gas Company Project), 5.500%, 1/01/21 Aaa 1/06 at 102 3,335,220
2,500,000 New York State Energy Research and Development Authority,
Pollution Control Revenue Bonds (Central Hudson Gas &
Electric Corporation Project), 1984 Series B, 7.375%, 10/01/14 Aaa 10/99 at 103 2,752,975
1,450,000 New York State Environmental Facilities Corporation, State
Water Pollution Control, Revolving Fund Revenue Bonds,
Series 1990C, (Pooled Loan Issue), 7.200%, 3/15/11 Aaa 6/00 at 102 1,585,836
New York State Finance Agency, Housing Project Mortgage
Revenue Bonds, 1996 Series A Refunding:
750,000 5.875%, 11/01/10 Aaa 5/06 at 102 758,453
5,000,000 6.125%, 11/01/20 Aaa 5/06 at 102 5,026,400
2,195,000 New York State Housing Finance Agency, Multi-Family Housing
Revenue Bonds, (AMBAC Insured Program), 1989 Series A,
7.450%, 11/01/28 Aaa 11/99 at 102 2,312,652
995,000 New York State Medical Care Facilities Finance Agency, Albany
Medical Center Hospital Project Revenue Bonds, 1987 Series A,
8.000%, 2/15/28 AAA 8/98 at 102 1,069,516
895,000 New York State Medical Care Facilities Finance Agency,
St. Francis Hospital Project Revenue Bonds, 1988 Series A,
7.625%, 11/01/21 Aaa 11/98 at 102 966,716
4,765,000 New York State Medical Care Facilities Finance Agency, Secured
Hospital Revenue Bonds, 1987 Series A, 7.100%, 2/15/27 Aaa 2/97 at 102 4,908,331
1,995,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home Insured Mortgage Revenue Bonds,
1989 Series B, 7.350%, 2/15/29 Aa 8/99 at 102 2,136,266
1,500,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home, FHA-Insured Mortgage Revenue Bonds,
1987 Series A, 8.300%, 2/15/22 (Pre-refunded to 2/15/98) AAA 2/98 at 102 1,615,305
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND -- CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,500,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home FHA-Insured Mortgage Revenue Bonds,
1989 Series A, 7.250%, 2/15/24 Aa 2/99 at 102 $ 1,597,755
1,300,000 New York State Medical Care Facilities Finance Agency,
St. Luke's-Roosevelt Hospital Center FHA-Insured Mortgage
Revenue Bonds, 1989 Series B, 7.450%, 2/15/29
(Pre-refunded to 2/15/00) Aaa 2/00 at 102 1,444,521
3,200,000 New York State Medical Care Facilities Finance Agency, North
Shore University Hospital, Mortgage Project Revenue Bonds,
1990 Series A, 7.200%, 11/01/20 Aaa 11/00 at 102 3,504,288
2,000,000 New York State Medical Care Facilities Finance Agency, Hospital
and Nursing Home, FHA-Insured Mortgage Revenue Bonds,
1989 Series A, 7.250%, 2/15/24 Aaa 2/99 at 102 2,132,260
1,670,000 New York State Medical Care Facilities Finance Agency,
Our Lady of Victory Hospital Project Revenue Bonds,
1991 Series A, 6.625%, 11/01/16 Aaa 11/01 at 102 1,782,892
New York State Medical Care Facilities Finance Agency, Sisters
of Charity Hospital of Buffalo Project Revenue Bonds,
1991 Series A:
500,000 6.600%, 11/01/10 Aaa 11/01 at 102 537,935
1,550,000 6.625%, 11/01/18 Aaa 11/01 at 102 1,654,780
1,000,000 New York State Medical Care Facilities Finance Agency, Aurelia
Osborn Fox Memorial Hospital Project Revenue Bonds,
1992 Series A, 6.500%, 11/01/19 Aaa 11/01 at 102 1,055,160
2,815,000 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds,
1992 Series B, 6.250%, 8/15/18 Aaa 2/02 at 102 2,898,437
3,000,000 New York State Medical Care Facilities Finance Agency, South
Nassau Communities Hospital Project Revenue Bonds,
1992 Series A, 6.125%, 11/01/11 Aaa 11/02 at 102 3,102,840
1,500,000 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds,
1994 Series A, 5.250%, 8/15/23 Aaa 2/04 at 102 1,368,225
2,500,000 New York State Medical Care Facilities Finance Agency, St. Mary's
Hospital (Rochester) Mortgage Project Revenue Bonds,
1994 Series A Refunding, 6.200%, 11/01/14 Aaa 11/03 at 102 2,585,375
7,000,000 New York State Medical Care Facilities Finance Agency, New
York Hospital FHA-Insured Mortgage Revenue Bonds,
1994 Series A, 6.800%, 8/15/24 Aaa 2/05 at 102 7,654,780
5,890,000 New York State Medical Care Facilities Finance Agency,
Montefiore Medical Center FHA-Insured Mortgage Revenue
Bonds, 1995 Series A, 5.750%, 2/15/15 Aaa 2/05 at 102 5,788,044
4,000,000 New York State Medical Care Facilities Finance Agency, Mental
Health Services Facilities Improvement Revenue Bonds,
1993 Series F Refunding, 5.250%, 2/15/19 Aaa 2/04 at 102 3,680,920
7,300,000 New York State Thruway Authority, General Revenue Bonds,
Series A, 5.750%, 1/01/19 Aaa 1/02 at 102 7,142,247
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 2,000,000 New York State Thruway Authority, Local Highway and Bridge
Service Contract Bonds, Series 1994, 5.750%, 4/01/13 Aaa 4/04 at 102 $ 2,000,620
New York State Urban Development Corporation, Section 236
Revenue Bonds, Series 1992A:
3,850,000 6.700%, 1/01/12 Aaa 1/02 at 102 4,150,916
9,650,000 6.750%, 1/01/26 Aaa 1/02 at 102 10,412,350
2,000,000 New York State Urban Development Corporation, Correctional
Capital Facilities Revenue Bonds, Series 1, 7.500%, 1/01/20
(Pre-refunded to 1/01/00) Aaa 1/00 at 102 2,221,160
New York State Urban Development Corporation, Correctional
Facilities Revenue Bonds, Series G:
1,500,000 7.250%, 1/01/14 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 1,654,365
575,000 7.000%, 1/01/17 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 629,763
1,000,000 New York State Urban Development Corporation, Correctional
Facilities Revenue Bonds, 1993A, Refunding Series,
5.250%, 1/01/14 Aaa No Opt. Call 952,360
4,000,000 New York State Urban Development Corporation Revenue
Bonds, (Sports Facility Assistance Program), 1996 Series A,
5.500%, 4/01/19 Aaa 4/06 at 102 3,818,320
2,000,000 Power Authority of the State of New York, General Purpose
Bonds, Series Z, 6.500%, 1/01/19 Aaa 1/02 at 102 2,130,260
225,000 State of New York Mortgage Agency, Mortgage Revenue Bonds,
Eighth Series D, 8.375%, 10/01/17 Aa 1/98 at 102 234,565
390,000 State of New York Mortgage Agency, Mortgage Revenue Bonds,
Ninth Series E, 8.100%, 10/01/17 Aa 4/98 at 102 406,610
3,500,000 State of New York Mortgage Agency, Homeowner Mortgage
Revenue Bonds, Series 29-C-1, 5.650%, 4/01/15 Aaa 10/03 at 102 3,386,495
280,000 Albany, New York, Municipal Water Finance Authority, Water
and Sewer System Revenue Bonds, Series 1988A,
7.500%, 12/01/17 Aaa 12/98 at 102 303,190
6,000,000 Battery Park City Authority, Senior Revenue Refunding Bonds,
Series 1993A, 5.250%, 11/01/17 Aaa 11/03 at 102 5,541,720
1,250,000 County of Broome, New York, Certificates of Participation,
(Public Safety Facility), Series 1994, 5.250%, 4/01/22 Aaa 4/04 at 102 1,148,725
2,250,000 Buffalo and Fort Erie Public Bridge Authority, Toll Bridge
System Revenue Bonds, Series 1995, 5.750%, 1/01/25 Aaa 1/05 at 101 2,205,113
1,000,000 City of Buffalo, New York, Refunding Serial Bonds, 1991,
6.150%, 2/01/04 Aaa 1/01 at 101 1,055,730
8,385,000 Buffalo Municipal Water Finance Authority, Water System
Revenue Bonds, Series 1992, 5.750%, 7/01/19 Aaa 7/03 at 102 8,201,872
2,000,000 Buffalo Sewer Authority, Sewer System Revenue Bonds, Series G,
5.000%, 7/01/12 Aaa 7/03 at 100 1,840,400
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Camden Central School District, Oneida County, New York,
School District (Serial) Bonds, 1991:
$ 500,000 7.100%, 6/15/07 Aaa No Opt. Call $ 583,200
600,000 7.100%, 6/15/08 Aaa No Opt. Call 700,182
600,000 7.100%, 6/15/09 Aaa No Opt. Call 700,074
275,000 7.100%, 6/15/10 Aaa No Opt. Call 321,258
1,000,000 Erie County Water Authority, (New York), Water Works System
Revenue Bonds, Series 1990B, 6.750%, 12/01/14 Aaa 12/01/09 1,073,140
470,000 City of Glen Cove, Nassau County, New York, General
Obligation Serial Bonds, 1995 Series A, 5.625%, 6/15/11 Aaa No Opt. Call 472,773
500,000 Greece Central School District, Monroe County, New York,
General Obligation Bonds, School District (Serial) Bonds,
1992, 6.000%, 6/15/09 Aaa No Opt. Call 531,450
Town of Halfmoon, Saratoga County, New York, Public
Improvement (Serial) Bonds, 1991:
385,000 6.500%, 6/01/09 Aaa No Opt. Call 427,962
395,000 6.500%, 6/01/10 Aaa No Opt. Call 438,584
395,000 6.500%, 6/01/11 Aaa No Opt. Call 438,545
1,350,000 Town of Hempstead Industrial Development Agency, Civic
Facility Revenue Bonds, (Hofstra University Project--
Series 1996), 5.800%, 7/01/15 Aaa 7/06 at 102 1,338,431
4,000,000 Metropolitan Transportation Authority, Commuter Facilities
Subordinated Revenue Bonds, Series 1995-1, (Grand Central
Terminal Redevelopment Project), 5.700%, 7/01/24 Aaa 7/05 at 101 3,882,920
4,500,000 Metropolitan Transportation Authority, Commuter Facilities
Revenue Bonds, Series 1996A, 6.100%, 7/01/26 Aaa 7/06 at 102 4,550,625
1,000,000 Metropolitan Transportation Authority, Transit Facilities Service
Contract Bonds, Series L, 7.500%, 7/01/17 Aaa 7/98 at 102 1,071,660
10,340,000 Metropolitan Transportation Authority, Transit Facilities Revenue
Bonds, Series J, 6.500%, 7/01/18 Aaa 7/02 at 102 11,045,395
Middle Country Central School District at Centereach in the
Town of Brookhaven, Suffolk Co., N.Y., School District (Serial)
Bonds, 1991 (ULT):
475,000 6.900%, 12/15/07 Aaa No Opt. Call 550,098
475,000 6.900%, 12/15/08 Aaa No Opt. Call 549,727
Public Improvement Serial Bonds 1992, County of Monroe,
New York, General Obligation Bonds:
375,000 6.500%, 6/01/15 Aaa 6/01 at 102 396,818
375,000 6.500%, 6/01/16 Aaa 6/01 at 102 396,818
350,000 6.500%, 6/01/17 Aaa 6/01 at 102 370,363
3,725,000 Montgomery, Otsego, Schoharie, Solid Waste Management
Authority, Solid Waste System Revenue Bonds, Series 1990,
7.250%, 1/01/14 (Pre-refunded to 1/01/00) Aaa 1/00 at 103 4,140,487
Mount Sinai Union Free School District, Suffolk County,
New York, School District (Serial) Bonds, 1989:
1,000,000 7.250%, 2/15/15 (Pre-refunded to 2/15/00) Aaa 2/00 at 102 1,105,510
1,000,000 7.250%, 2/15/17 (Pre-refunded to 2/15/00) Aaa 2/00 at 102 1,105,510
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
46
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mount Sinai Union Free School District, County of Suffolk,
New York, School District Refunding (Serial) Bonds, 1992:
$ 500,000 6.200%, 2/15/15 Aaa No Opt. Call $ 530,955
1,035,000 6.200%, 2/15/16 Aaa No Opt. Call 1,101,012
1,500,000 County of Nassau, New York, General Obligation Serial Bonds,
Serial General Improvement Bonds, Series O, 5.700%, 8/01/13 Aaa 8/04 at 103 1,506,885
4,840,000 Nassau County Industrial Development Agency, Civic Facility
Revenue Bonds, (Hofstra University Project--Series 1991),
6.750%, 8/01/11 Aaa 8/01 at 102 5,306,624
1,020,000 City of New Rochelle, Westchester County, New York, General
Obligations, Public Improvement Bonds, 1994 Series B,
6.200%, 8/15/22 Aaa 8/04 at 102 1,048,560
The City of New York, General Obligation Bonds, Fiscal 1992
Series C, Fixed Rate Bonds, Subseries C-1:
3,000,000 6.250%, 8/01/10 (Pre-refunded to 8/01/02) Aaa 8/02 at 101 1/2 3,272,700
1,000,000 6.250%, 8/01/10 Aaa 8/02 at 101 1/2 1,045,940
75,000 The City of New York, General Obligation Bonds, Fiscal 1992
Series C, 6.625%, 8/01/12 Aaa 8/02 at 101 1/2 81,072
2,600,000 The City of New York, General Obligation Bonds, Fiscal 1993
Series C, 6.000%, 8/01/12 Aaa 8/02 at 101 1/2 2,661,490
2,520,000 The City of New York, General Obligation Bonds, Fiscal 1993
Series E, 5.750%, 5/15/12 Aaa 5/03 at 101 1/2 2,527,459
The City of New York, General Obligation Bonds, Fiscal 1990,
Series B:
1,300,000 7.000%, 10/01/15 Aaa No Opt. Call 1,378,572
2,000,000 7.000%, 10/01/16 Aaa No Opt. Call 2,301,940
1,025,000 7.000%, 10/01/17 Aaa No Opt. Call 1,086,951
310,000 7.000%, 10/01/18 Aaa No Opt. Call 328,736
500,000 The City of New York, General Obligation Bonds, Fiscal 1988
Series A, 8.250%, 11/01/02 (Pre-refunded to 11/01/97) Aaa 11/97 at 101 1/2 531,455
1,000,000 New York City Educational Construction Fund, Revenue Bonds,
Series 1994, Senior Subordinated Revenue Bonds,
5.625%, 4/01/13 Aaa 4/04 at 101 1/2 988,800
New York City Health and Hospitals Corporation, Health
System Bonds, 1993 Series A:
2,500,000 5.625%, 2/15/13 Aaa 2/03 at 102 2,453,925
11,980,000 5.750%, 2/15/22 Aaa 2/03 at 102 11,598,796
5,000,000 Pass-Through Certificates of New York City HDC Multifamily
Housing, Limited Obligation Bonds, Series 1991A,
6.500%, 2/20/19 Aaa 7/97 at 105 5,772,600
1,000,000 New York City Housing Development Corporation, MultiFamily
Housing Revenue Bonds, 1993 Series B, 5.850%, 5/01/26 Aaa 5/03 at 102 981,950
1,000,000 New York City Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Fiscal 1991 Series A,
7.250%, 6/15/15 (Pre-refunded to 6/15/00) Aaa 6/00 at 101 1/2 1,105,060
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York City Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Fiscal 1992 Series A:
$ 2,000,000 6.750%, 6/15/16 Aaa 6/01 at 101 $ 2,159,980
1,250,000 6.750%, 6/15/16 Aaa 6/01 at 101 1,348,888
New York City Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Fiscal 1993 Series A:
6,765,000 5.750%, 6/15/18 Aaa 6/02 at 101 1/2 6,661,157
4,650,000 5.500%, 6/15/20 Aaa 6/02 at 100 4,365,374
7,000,000 New York City Municipal Water Finance Authority, Water and
Sewer System Revenue Bonds, Fiscal 1996 Series B,
5.750%, 6/15/26 Aaa 6/06 at 101 6,857,620
1,000,000 New York City Transit Authority, Transit Facilities Revenue
Bonds, Series 1990 (Livingston Plaza Project),
7.500%, 1/01/20 (Pre-refunded to 1/01/00) Aaa 1/00 at 102 1,108,600
7,225,000 New York City Transit Authority, Transit Facilities Refunding
Revenue Bonds, Series 1993 (Livingston Plaza Project),
7.500%, 1/01/20 Aaa 1/03 at 100 6,561,167
2,200,000 The Trust for Cultural Resources of The City of New York,
Revenue Refunding Bonds, Series 1991A, (The American
Museum of Natural History), 6.900%, 4/01/21
(Pre-refunded to 4/01/01) Aaa 4/01 at 102 2,440,174
1,000,000 New York City Industrial Development Agency, Civic Facility
Revenue Bonds, (USTA National Tennis Center Incorporated
Project), 6.375%, 11/15/14 Aaa 11/04 at 102 1,057,540
1,000,000 New York City Industrial Development Agency, Civic Facility
Revenue Bonds, (New School for Social Research Project),
Series 1995A, 5.750%, 9/01/15 Aaa 9/05 at 102 989,180
1,590,000 City of Niagara Falls, Niagara County, New York, Public
Improvement (Serial)Bonds, 1994, 6.900%, 3/01/21 Aaa 3/04 at 102 1,749,095
5,725,000 Niagara Falls Bridge Commission, Toll Bridge System Revenue
Bonds, Series 1992, 6.125%, 10/01/19
(Pre-refunded to 10/01/02) Aaa 10/02 at 102 6,249,639
Town of North Hempstead, Nassau County, New York, Public
Improvement (Serial)Bonds, 1991, Series B, Unlimited Tax:
425,000 6.800%, 6/01/10 (Pre-refunded to 6/01/00) Aaa 6/00 at 102 465,486
425,000 6.800%, 6/01/11 (Pre-refunded to 6/01/00) Aaa 6/00 at 102 465,486
Town of North Hempstead, Nassau County, New York, General
Obligation Refunding Serial Bonds, Refunding Serial Bonds--
1992, Series B:
1,500,000 6.375%, 4/01/09 Aaa No Opt. Call 1,644,480
1,505,000 6.400%, 4/01/14 Aaa No Opt. Call 1,641,157
Nyack Union Free School District, Rockland County, New York,
School District Serial Bonds 1992:
625,000 6.500%, 4/01/12 Aaa 4/02 at 102 669,369
625,000 6.500%, 4/01/13 Aaa 4/02 at 102 670,306
625,000 6.500%, 4/01/14 Aaa 4/02 at 102 668,738
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Rensselaer County, New York, General Obligation Serial Bonds,
Series 1991:
$ 960,000 6.700%, 2/15/13 Aaa No Opt. Call $ 1,086,461
960,000 6.700%, 2/15/14 Aaa No Opt. Call 1,085,290
960,000 6.700%, 2/15/15 Aaa No Opt. Call 1,083,485
700,000 County of Rockland, New York, Solid Waste Management
Authority, General Obligation Bonds, Series 1996B,
5.550%, 12/15/16 Aaa 12/06 at 102 677,999
Rondout Valley Central School District at Accord, Ulster
County, New York, General Obligation, School District (Serial)
Bonds, 1991:
550,000 6.800%, 6/15/06 Aaa No Opt. Call 628,843
550,000 6.850%, 6/15/07 Aaa No Opt. Call 631,785
550,000 6.850%, 6/15/08 Aaa No Opt. Call 631,554
550,000 6.850%, 6/15/09 Aaa No Opt. Call 630,900
550,000 6.850%, 6/15/10 Aaa No Opt. Call 631,147
County of Suffolk, New York, General Obligation Refunding
(Serial) Bonds, Public Improvement Refunding Bonds,
1993 Series B:
1,000,000 6.900%, 4/01/01 Aaa 4/00 at 102 1,096,640
600,000 6.150%, 5/01/10 Aaa 5/03 at 102 626,561
County of Suffolk, New York, General Obligation Refunding
(Serial) Bonds, Public Improvement Refunding Bonds,
1993 Series F:
1,895,000 5.250%, 7/15/09 Aaa 7/02 at 102 1,866,157
1,890,000 5.300%, 7/15/10 Aaa 7/02 at 102 1,855,130
1,860,000 5.400%, 7/15/11 Aaa 7/02 at 102 1,831,318
County of Suffolk, New York, General Obligation Refunding
(Serial) Bonds, Public Improvement Refunding Bonds,
1993 Series G:
1,630,000 5.400%, 4/01/11 Aaa 4/02 at 102 1,605,207
625,000 5.400%, 4/01/15 Aaa 4/02 at 102 602,050
1,000,000 Suffolk County Industrial Development Agency, (Suffolk County,
New York), Suffolk County Southwest Sewer System
Revenue Bonds, Series 1994, 4.750%, 2/01/09 Aaa 2/04 at 101 921,660
1,800,000 Suffolk County Water Authority, New York, Water System
Revenue Bonds, Series 1993 Refunding, 5.100%, 6/01/11 Aaa No Opt. Call 1,722,815
3,700,000 Suffolk County Water Authority, New York, Water System
Revenue Bonds, Series 1994, 5.000%, 6/01/17 Aaa 6/03 at 102 3,310,241
2,750,000 Triborough Bridge and Tunnel Authority, General Purpose
Revenue Bonds, Series X, 6.500%, 1/01/19 Aaa 1/02 at 101 1/2 2,916,127
2,000,000 Triborough Bridge and Tunnel Authority, General Purpose
Revenue Bonds, Series T, 7.000%, 1/01/20
(Pre-refunded to 1/01/01) Aaa 1/01 at 102 2,221,520
1,175,000 Triborough Bridge and Tunnel Authority, General Purpose
Revenue Bonds, Series S, 7.000%, 1/01/21
(Pre-refunded to 1/01/01) Aaa 1/01 at 101 1/2 1,300,313
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
49
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 8,650,000 Triborough Bridge and Tunnel Authority, Special Obligation
Refunding Bonds, Series 1991B, 6.875%, 1/01/15 Aaa 1/01 at 102 $9,401,771
1,750,000 City of Yonkers, New York, General Obligation School Bonds--
1990-C, 7.375%, 12/01/09 (Pre-refunded to 12/01/00) Aaa 12/00 at 102 1,971,200
- -------------------------------------------------------------------------------------------------------------------------
$345,750,000 Total Investments -- (cost $339,090,235) -- 99.3% 356,439,152
============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.7% 2,535,090
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $358,974,242
=========================================================================================================================
- -------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET PORTFOLIO
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 151 $352,063,956 99%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 4 4,375,196 1
PORTFOLIO OF
INVESTMENTS:
- -------------------------------------------------------------------------------------------------------------------------
TOTAL 155 $356,439,152 100%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities, any of which ensure the timely payment of principal and
interest.
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
** Optional call provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
See accompanying notes to financial statements.
50
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
NUVEEN OHIO TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 Ohio Air Quality Development Authority, State of Ohio,
Pollution Control Revenue Refunding Bonds, 1990 Series A
(Ohio Edison Company Project), 7.450%, 3/01/16 Aaa 3/00 at 102 $ 2,191,680
1,000,000 Ohio Air Quality Development Authority, State of Ohio, Air
Quality Development Revenue Refunding Bonds (Ohio Power
Company Project), Series B, 7.400%, 8/01/09 Baa1 8/99 at 102 1,048,860
2,000,000 Ohio Air Quality Development Authority, State of Ohio,
Collateralized Pollution Control Revenue Refunding Bonds,
Series 1992 (The Cleveland Electric Illuminating Company
Project), 8.000%, 12/01/13 Aaa 6/02 at 103 2,344,440
1,250,000 Ohio Capital Corporation for Housing, Multifamily Housing
Refunding Revenue Bonds, Series 1989A, 7.600%, 11/01/23 AAA 11/97 at 105 1,330,388
755,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue
Bonds (GNMA Mortgage-Backed Securities Program), 1990
Series A, 7.400%, 9/01/15 AAA 3/00 at 102 795,815
655,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue
Bonds (GNMA Mortgage-Backed Securities Program), 1990
Series D, 7.500%, 9/01/13 AAA 9/00 at 102 690,481
335,000 Ohio Housing Finance Agency, Single Family Mortgage Revenue
Bonds (GNMA Mortgage-Backed Securities Program), 1991
Series D, 7.050%, 9/01/16 Aaa 9/01 at 102 352,336
1,750,000 Ohio Water Development Authority, State of Ohio,
Collateralized Water Development Revenue Refunding Bonds,
1992 Series A (The Dayton Power and Light Company Project),
6.400%, 8/15/27 AA- 8/02 at 102 1,813,525
1,000,000 Ohio Water Development Authority, State of Ohio, Water
Development Revenue Bonds, 1995 Fresh Water Series,
5.900%, 12/01/21 Aaa 6/05 at 102 996,640
1,000,000 State of Ohio (Ohio Higher Educational Facility Commission),
Higher Educational Facility Revenue Bonds (Ohio Wesleyan
University Project), 7.650%, 11/15/07 Aaa 11/97 at 102 1,061,540
1,750,000 State of Ohio (Ohio Higher Educational Facility Commission),
Higher Educational Facility Revenue Bonds (University of
Dayton 1994 Project), 5.800%, 12/01/19 Aaa 12/04 at 102 1,720,233
1,750,000 State of Ohio, Air Quality Development Revenue Bonds
(Columbus Southern Power Company Project), Series 1985 A,
6.375%, 12/01/20 Aaa 12/02 at 102 1,840,230
1,475,000 State of Ohio, Full Faith and Credit, General Obligation
Infrastructure Improvement Bonds, Series 1996,
6.650%, 8/01/05 Aa1 No Opt. Call 1,652,738
1,000,000 State of Ohio, Full Faith and Credit, General Obligation
Infrastructure Improvement Bonds, Series 1994,
6.000%, 8/01/10 Aa1 No Opt. Call 1,050,620
250,000 State of Ohio, Higher Educational Facility, Mortgage Revenue
Bonds (Ohio Dominican College Project), 8.500%, 12/01/07
(Pre-refunded to 12/01/97) N/R 12/97 at 102 267,825
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN OHIO TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 400,000 State of Ohio, Higher Educational Facility, Mortgage Revenue
Bonds (John Carroll University Project), 9.250%, 10/01/07
(Pre-refunded to 10/01/97) A 10/97 at 102 $ 429,736
60,000 State of Ohio, Mortgage Revenue Bonds, Series 1987A (FHA
Insured Mortgage Loan-I.O.O.F. Home of Ohio, Inc. Nursing
Home and Board and Care Project), 8.150%, 8/01/02 AAA 8/97 at 103 63,328
1,000,000 State of Ohio, Ohio Building Authority, State Correctional
Facilities Refunding Bonds, 1986 Series B, 7.125%, 9/01/09 AA- 9/96 at 102 1,022,090
1,000,000 State of Ohio, Ohio Higher Educational Facilities Commission
(Ohio Northern University Project), 7.300%, 5/15/10
(Pre-refunded to 5/15/00) Aaa 5/00 at 100 1,091,170
750,000 State of Ohio, Pollution Control Revenue Refunding Bonds,
Ohio Air Quality Development Authority, 1989 Series B
(Ohio Edison Company Project), 7.625%, 7/01/23 Baa3 7/99 at 102 790,470
5,000,000 State of Ohio, Turnpike Revenue Bonds, 1996 Series A, Issued
by the Ohio Turnpike Commission, 5.500%, 2/15/26 Aaa 2/06 at 102 4,758,800
Adams County/Ohio Valley School District, Counties of Adams
and Highland, Ohio, School Improvement Unlimited Tax
General Obligation Bonds, Series 1995:
2,000,000 7.000%, 12/01/15 Aaa No Opt. Call 2,312,860
3,865,000 5.250%, 12/01/21 Aaa 12/05 at 102 3,606,432
3,955,000 City of Akron, Ohio, General Obligation Bonds, Various Purpose
Improvement Bonds, Series 1994 (Limited Tax),
6.750%, 12/01/14 Aaa 12/04 at 102 4,381,072
1,500,000 City of Akron, Ohio, Waterworks System Mortgage Revenue
Improvement Bonds, Series 1991, 6.550%, 3/01/12
(Pre-refunded to 3/01/01) Aaa 3/01 at 102 1,636,860
2,850,000 Anthony Wayne Local School District, Lucas, Wood and Fulton
Counties, Ohio, School Facilities Construction and
Improvement Bonds, 5.750%, 12/01/24 Aaa 12/05 at 101 2,785,505
1,000,000 Archbold Area Local School District, General Obligation Bonds
(Unlimited Tax), Series 1996, 6.000%, 12/01/21 Aaa 11/06 at 102 1,012,450
1,000,000 Aurora City School District, Ohio, General Obligation
(Unlimited Tax) School Improvement Bonds, Series 1995,
5.800%, 12/01/16 Aaa 12/05 at 102 998,120
1,000,000 Board of Education, Beavercreek Local School District, County
of Greene, Ohio, School Improvement Bonds, Series 1996
(Unlimited Tax General Obligation), 6.600%, 12/01/15 Aaa No Opt. Call 1,109,880
1,415,000 City of Bedford, Ohio, Hospital Facilities Refunding Revenue
Bonds, Series 1990 (The Community Hospital of Bedford, Inc.),
8.500%, 5/15/09 (Pre-refunded to 5/15/00) N/R 5/00 at 102 1,599,870
City of Bellefontaine, Sewer System First Mortgage Revenue
Refunding and Improvement Bonds (Bank Qualified):
1,000,000 6.800%, 12/01/07 Baa1 12/02 at 101 1,057,500
1,000,000 6.900%, 12/01/11 Baa1 12/02 at 101 1,057,890
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
52
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,500,000 Buckeye Valley Local School District, Ohio, General Obligation
(Unlimited Tax) Bonds, School Improvement Bonds,
Series 1995A, 6.850%, 12/01/15 Aaa No Opt. Call $ 2,847,450
1,250,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding
and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes
Memorial Hospital Center), 7.500%, 1/10/10 Baa 1/02 at 102 1,323,100
1,000,000 County of Butler, Ohio, Sewer System Revenue Bonds,
Series 1996, 5.250%, 12/01/21 Aaa 12/06 at 101 930,590
1,000,000 Canal Winchester Local School District, Franklin and Fairfield
Counties, Ohio, General Obligation Bonds (Unlimited Tax),
For School Facilities Construction and Improvement,
7.100%, 12/01/13 (Pre-refunded to 12/01/01) Aaa 12/01 at 102 1,124,390
1,000,000 Clermont County, Ohio, Road Improvement Bonds, Series 1990,
7.125%, 9/01/11 (Pre-refunded to 9/01/00) Aaa 9/00 at 102 1,106,670
2,000,000 County of Clermont, Ohio, Sewer System Revenue Bonds, Series
1990, Clermont County Sewer District, 7.375%, 12/01/20
(Pre-refunded to 12/01/00) Aaa 12/00 at 102 2,242,040
1,000,000 County of Clermont, Ohio, Sewer System Revenue Bonds, Series
1991, Clermont County Sewer District, 7.100%, 12/01/21
(Pre-refunded to 12/01/01) Aaa 12/01 at 102 1,124,390
1,000,000 County of Clermont, Ohio, Waterworks System Revenue Bonds,
Series 1991, Clermont County Sewer District,
6.625%, 12/01/13 (Pre-refunded to 12/01/01) Aaa 12/01 at 102 1,103,030
2,000,000 Board of Education of the Cleveland City School District, Ohio,
General Obligation Unlimited Tax Bonds, Library
Improvement Bonds, Series 1992A, 5.875%, 12/01/11 Aaa 12/02 at 102 2,019,300
1,500,000 City of Cleveland, Ohio, Public Power System First Mortgage
Revenue Bonds, Series 1994A, 7.000%, 11/15/24 Aaa 11/04 at 102 1,684,650
990,000 City of Cleveland, Ohio, Waterworks Improvement First
Mortgage Revenue Refunding Bonds, Series F, 1992B,
6.500%, 1/01/11 Aaa 1/02 at 102 1,044,430
1,750,000 City of Cleveland, Ohio, Waterworks Improvement First
Mortgage Revenue Bonds, Series F, 1992A, 6.500%, 1/01/21
(Pre-refunded to 1/01/02) Aaa 1/02 at 102 1,921,273
1,000,000 City of Cleveland, Waterworks Revenue Refunding and
Improvement Bonds, First Mortgage, Series 1996-H,
5.750%, 1/01/21 Aaa 1/06 at 102 977,500
10,000 City of Cleveland, Ohio, First Mortgage Revenue Refunding
Bonds, Series F, 1992-B, 6.500%, 1/01/11
(Pre-refunded to 1/01/02) Aaa 1/02 at 102 10,979
1,000,000 Coldwater Exempted Village School District, Mercer County,
Ohio, General Obligation Bonds, 7.00%, 12/01/13
(Pre-refunded to 12/01/99) Aaa 12/99 at 102 1,092,970
1,500,000 City of Columbus, Ohio, General Obligation Refunding Bonds,
Series 1992B, 6.500%, 1/01/10 Aaa 1/02 at 102 1,607,085
2,050,000 City of Columbus, Ohio, Various Purpose Unlimited Tax Bonds,
Series 1993-1, 5.250%, 9/15/18 Aaa 9/03 at 102 1,946,065
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
53
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN OHIO TAX-FREE VALUE FUND CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,500,000 County of Cuyahoga, Ohio, General Obligation (Unlimited Tax)
Various Purpose Improvement and Refunding Bonds,
Series 1991, 7.000%, 10/01/13
(Pre-refunded to 10/01/01) N/R 10/01 at 102 $ 1,675,545
1,000,000 County of Cuyahoga, Ohio, General Obligation Various Purpose
Refunding Bonds, Series 1993B (Limited Tax Obligation),
5.250%, 10/01/13 Aa No Opt. Call 963,370
1,000,000 County of Cuyahoga, Ohio, General Obligation (Limited Tax)
Various Purpose Improvement Bonds, Series 1995,
5.250%, 11/15/15 Aa 11/05 at 102 956,210
1,250,000 Conversion and Remarketing of the County of Cuyahoga, Ohio,
Hospital Improvement Revenue Bonds (Deaconess Hospital of
Cleveland Project), Series 1995B, 7.450%, 10/01/18
(Pre-refunded to 10/01/00) A1 10/00 at 103 1,410,650
2,750,000 County of Cuyahoga, Ohio, Hospital Revenue Bonds, Series
1990 (Meridia Health System), 7.250%, 8/15/19 A1 8/00 at 102 2,953,720
2,000,000 City of Dayton, Ohio, Airport Revenue Refunding Bonds, Series
1995 (James M. Cox Dayton International Airport),
5.250%, 12/01/15 Aaa 12/05 at 101 1,898,800
750,000 City of Defiance, Ohio, Waterworks System Improvement Bonds,
Series 1994, 6.200%, 12/01/20 Aaa 12/04 at 102 783,173
1,110,000 City of Fairborn, Ohio, General Obligation Bonds, Utility
Improvement Bonds, Series 1991, 7.000%, 10/01/11 Aaa 10/02 at 102 1,243,189
2,790,000 County of Franklin, Ohio, Refunding Bonds, Series 1993
(Limited Tax General Obligation Bonds), 5.375%, 12/01/20 Aaa 12/08 at 102 2,647,850
1,500,000 County of Franklin, Ohio, Health Care Facilities Revenue Bonds,
Series 1993 (Ohio Presbyterian Retirement Services),
6.500%, 7/01/23 N/R 7/03 at 102 1,391,370
500,000 County of Franklin, Ohio, Hospital Facilities Improvement
Revenue Bonds, Series 1990A (Riverside United Methodist
Hospital Project), 7.250%, 5/15/20 Aaa 5/00 at 102 543,705
1,350,000 County of Franklin, Ohio, Hospital Facilities Mortgage Revenue
Bonds, 1991 Series A (Ohio Presbyterian Retirement Services),
8.750%, 7/01/21 N/R 7/01 at 103 1,429,812
695,000 County of Franklin, Ohio, Revenue Bonds, Series 1991 (OCLC
Online Computer Library Center, Incorporated Project),
7.000%, 8/01/16 N/R 8/00 at 102 711,152
1,575,000 County of Franklin, Ohio, Hospital Refunding and Improvement
Revenue Bonds, 1996 Series A (The Children's Hospital
Project), 5.750%, 11/01/15 Aa 11/06 at 101 1,543,516
2,000,000 County of Franklin, Ohio, Hospital Revenue Bonds, Holy Cross
Health Systems Corporation, Series 1996, 5.875%, 6/01/21 Aa 6/06 at 102 1,946,420
1,000,000 County of Franklin, Ohio, Revenue Bonds, Series 1991 (OCLC
Online Computer Library Center, Incorporated Project),
7.200%, 7/15/06 N/R 7/01 at 100 1,064,070
250,000 City of Fremont, Ohio, Sewerage System Mortgage Revenue
Bonds, Series 1987, 8.100%, 12/01/07
(Pre-refunded to 12/01/97) A- 12/97 at 102 266,618
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
54
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Board of Education, Gahanna-Jefferson City School District,
Franklin County, Ohio, General Obligation Bonds, Series
1990 A, 7.125%, 12/01/14 (Pre-refunded to 12/01/00) A1 12/00 at 102 $ 1,109,420
1,000,000 City of Garfield Heights, Ohio, General Obligation (Limited
Tax) Various Purpose Improvement Bonds, 5.600%, 11/01/16 Aaa 11/06 at 102 974,570
3,000,000 City of Garfield Heights, Ohio, Hospital Improvement and
Refunding Revenue Bonds, Series 1992B (Marymount
Hospital Project), 6.650%, 11/15/11 A 11/02 at 102 3,111,810
1,000,000 County of Geauga, Ohio, General Obligation (Limited Tax)
Sewer District Improvement Bonds (Bainbridge Water Project),
5.625%, 12/01/15 Aa 12/05 at 102 976,370
Grandview Heights City School District, Franklin County, Ohio,
School Facilities Construction and Improvement Bonds
(General Obligation-Unlimited Tax):
2,000,000 6.100%, 12/01/19 AA 12/05 at 101 2,034,080
1,520,000 5.550%, 12/01/19 AA No Opt. Call 1,483,991
250,000 City of Grandview Heights, Franklin County, Ohio, Library
Building Mortgage Revenue Bonds (Board of Trustees of the
Grandview Heights Public Library-Lessee), 8.250%, 12/01/07
(Pre-refunded to 12/01/97) N/R 12/97 at 102 267,260
1,600,000 County of Greene, Ohio, Water System Revenue Bonds, Series
1996, 6.125%, 12/01/21 Aaa 12/07 at 102 1,642,240
1,000,000 City of Greenville, Ohio (Dark County), Wastewater System First
Mortgage Revenue Bonds, Series 1992 (Governmental
Enterprise Revenue Bonds), 6.350%, 12/01/17 Aaa 10/02 at 102 1,056,690
1,495,000 County of Hamilton, Ohio, Judson Care Center Nursing Home
and Board and Care Project (FHA Insured Mortgage),
7.800%, 8/01/19 A+ 8/00 at 101 1/4 1,586,614
400,000 City of Hubbard, Ohio, Municipal Center Bond, Anticipation
Notes, Series 1987, 8.800%, 11/15/17 N/R 5/98 at 102 430,080
1,700,000 Indian Lake Local School District Logan and Auglaize Counties,
Ohio, School Facilities Construction and Improvement Bonds,
(General Obligation-Unlimited Tax), 5.375%, 12/01/23 Aaa 12/06 at 101 1,611,498
1,000,000 Indian Valley Local School District, Ohio, General Obligation
(Unlimited Tax) School Improvement Bonds, Series 1995,
5.750%, 12/01/19 Aaa 12/05 at 102 979,190
1,000,000 Kent State University (A State University of Ohio), General
Receipts Bonds, Series 1992, 6.500%, 5/01/22 Aaa 5/02 at 102 1,071,610
2,630,000 Kings Local School District, General Obligation (Unlimited Tax)
School Improvement Bonds, Series 1995, 5.500%, 12/01/21 Aaa 12/05 at 100 2,534,242
500,000 Kirtland Local School District, Ohio, School Improvement
Bonds, Series 1989 General Obligation Unlimited Tax Bonds,
7.500%, 12/01/09 A1 12/99 at 102 544,535
1,500,000 City of Lakewood, Ohio, Various Purpose General Obligation
Bonds, Series 1992 (Limited Tax Obligation),
6.500%, 12/01/12 Aa 12/02 at 102 1,630,020
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN OHIO TAX-FREE VALUE FUNDCONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Lakota Local School District, County of Butler, Ohio, School
Improvement Unlimited Tax General Obligation Bonds,
Series 1994, 6.125%, 12/01/17 Aaa 12/05 at 100 $ 1,029,040
1,500,000 City of Lorain, Ohio, Hospital Refunding Revenue Bonds, Series
1992 (Lakeland Community Hospital, Inc.), 6.500%, 11/15/12 A1 11/02 at 102 1,530,840
500,000 City of Lorain, Ohio, Sewer System Mortgage Revenue
Refunding Bonds, Series 1988, 8.750%, 4/01/11 BBB- 4/98 at 102 542,710
1,000,000 County of Lucas, Ohio, General Obligation (Limited Tax)
Various Purpose Improvement Bonds, Series 1992,
6.650%, 12/01/12 A 12/02 at 102 1,028,930
1,000,000 County of Lucas, Ohio, General Obligation (Limited Tax)
Various Purpose Improvement Bonds, Series 1995-1,
5.400%, 12/01/15 Aaa 12/05 at 102 971,370
1,000,000 County of Mahoning, Ohio, General Obligation Bonds, Various
Purpose Improvement Bonds, Series 1989, Limited Tax,
7.200%, 12/01/09 Aaa 12/99 at 102 1,091,850
2,000,000 County of Mahoning, Ohio, Hospital Improvement and
Refunding Revenue Bonds, Series 1986 (St. Elizabeth Hospital
Medical Center Project), 7.375%, 12/01/09 A1 6/98 at 100 2,043,000
2,355,000 County of Mahoning, Ohio, Hospital Improvement Revenue
Bonds, Series 1991 (YHA, Inc. Project), Series 1991A,
7.000%, 10/15/14 Aaa 10/00 at 102 2,537,089
1,000,000 County of Marion, Ohio, Health Care Facilities Refunding and
Improvement Revenue Bonds, Series 1993 (United Church
Homes, Inc. Project), 6.375%, 11/15/10 BBB- 11/03 at 102 976,010
1,150,000 County of Marion, Ohio, Health Care Facilities Revenue Bonds,
Series 1990 (United Church Home, Inc.), 8.875%, 12/01/12
(Pre-refunded to 12/01/99) N/R 12/99 at 103 1,320,821
750,000 County of Marion, Ohio, Health Care Facilities Refunding and
Improvement Revenue Bonds, Series 1993 (United Church
Homes, Inc. Project), 6.300%, 11/15/15 BBB- 11/03 at 102 711,023
1,000,000 The Board of Education of the Marysville Exempted Village
School District, Union County, Ohio, School Improvement
Bonds, General Obligation (Unlimited Taxes),
7.200%, 12/01/10 (Pre-refunded to 12/01/00) Aaa 12/00 at 102 1,114,340
1,250,000 City of Marysville, Ohio, Water System Mortgage Revenue
Bonds, Series 1991, 7.050%, 12/01/21 Aaa 12/01 at 101 1,392,838
1,000,000 Board of Education of the Mentor Exempted Village School
District, Ohio, Improvement Bonds, Series 1989 (General
Obligation Bonds), 7.400%, 12/01/11
(Pre-refunded to 12/01/02) Aaa 12/02 at 100 1,104,950
1,500,000 County of Montgomery, Ohio, Hospital Facilities Revenue
Refunding and Improvement Bonds, Series 1996 (Kettering
Medical Center), 5.625%, 4/01/16 Aaa 4/06 at 102 1,466,850
1,000,000 County of Montgomery, Ohio, Water Revenue Bonds, Greater
Moraine-Beavercreek Sewer District Series 1992,
6.250% 11/15/17 Aaa 11/02 at 102 1,043,210
</TABLE>
56
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,000,000 City of Mount Vernon, Ohio, Hospital Refunding Revenue
Bonds, Series 1986A (Knox Community Hospital),
7.875%, 6/01/12 N/R 12/96 at 103 $ 3,092,430
2,245,000 City of Napoleon, Ohio, Health Care Facilities Mortgage
Revenue Refunding Bonds, Series 1994 (The Lutheran
Orphans' and Old Folks' Home Society at Napoleon, Ohio,
Inc.-FHA Insured Project), 6.875%, 8/01/23 Aa 9/04 at 102 2,386,817
1,000,000 City of North Olmsted, Ohio, General Obligation (Limited Tax)
Various Purpose Bonds, Series 1992, 6.250%, 12/15/12 Aaa 12/02 at 102 1,051,680
1,000,000 City of Parma, Ohio, Various Purpose General Obligation Bonds,
Series 1990 (Limited Tax Obligation), 7.600%, 12/01/11 A 12/00 at 102 1,127,540
1,750,000 Pickerington Local School District, Fairfield and Franklin
Counties, Ohio, General Obligation Bonds (Pickerington
Public Library Project) (Unlimited Tax), 6.750%, 12/01/16 A 12/01 at 102 1,843,380
1,000,000 Revere Local School District, Ohio, School Improvement Bonds,
Series 1993 (General Obligation Unlimited Tax Bonds),
6.000%, 12/01/16 Aaa 12/03 at 102 1,012,990
1,500,000 Reynoldsburg City School District, Franklin, Fairfield and
Licking Counties, Ohio, General Obligation Bonds (Unlimited
Tax) For School Building Construction and Improvement,
6.550%, 12/01/17 Aaa 12/02 at 102 1,621,410
1,200,000 Ridgemont Local School District, Ohio, General Obligation
(Unlimited Tax) School Improvement Bonds, Series 1992,
7.250%, 12/01/14 N/R 12/02 at 102 1,305,156
735,000 City of Salem, Ohio, Sewer System Mortgage Revenue Bonds,
Series 1987, 7.500%, 11/01/11 (Pre-refunded to 11/01/96) N/R 11/96 at 102 753,963
1,000,000 The Board of Education of the Springfield City School District,
Clark County, Ohio, School Improvement Bonds, General
Obligation (Unlimited Tax), 6.600%, 12/01/12 Aaa 12/01 at 102 1,087,720
2,340,000 City of Stow, Ohio, Safety Center Construction Bonds (General
Obligation Limited Tax), 6.200%, 12/01/20 A1 12/05 at 102 2,386,261
3,080,000 Sylvania City School District, Ohio, General Obligation
(Unlimited Tax) School Improvement Bonds, Series 1995,
5.750%, 12/01/22 Aaa 12/05 at 101 3,012,363
1,070,000 County of Trumbull, Ohio, Correctional Facilities Bonds, Series
1995 (General Obligation Limited Tax), 7.000%, 12/01/04 Aaa No Opt. Call 1,214,311
1,000,000 County of Trumbull, Ohio, Hospital Refunding and
Improvement Revenue Bonds, Series 1991 (Trumbell Memorial
Hospital Project), Series 1991B, 6.900%, 11/15/12 Aaa 11/01 at 102 1,103,730
750,000 County of Tuscarawas, Ohio, Hospital Facilities Revenue Bonds,
Series 1993A (Union Hospital Project), 6.500%, 10/01/21 Baa 10/03 at 102 710,385
1,000,000 University of Cincinnati, Ohio General Receipts Bonds, Series I,
7.300%, 6/01/09 (Pre-refunded to 6/01/99) AA- 6/99 at 100 1,073,650
1,000,000 University of Cincinnati, General Receipts Bonds, Series O,
6.300%, 6/01/12 AA- 12/02 at 102 1,047,330
1,000,000 University of Cincinnati, General Receipts Bonds, Series V,
5.500%, 6/01/15 AA- 6/05 at 101 974,240
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
57
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN OHIO TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS* PROVISIONS** VALUE
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,500,000 The University of Toledo (A State University of Ohio) General
Receipts Bonds, Series 1994, 5.350%, 6/01/25 Aaa 6/04 at 102 $ 1,406,954
1,950,000 County of Warren, Ohio, Hospital Facilities Improvement and
Refunding Revenue Bonds, Series 1991 (Otterbein Home
Project), 7.200%, 7/01/11 Aa1 7/01 at 102 2,093,480
250,000 City of Warren, Ohio, General Obligation Limited Tax, Various
Purpose Improvement Bonds, 8.625%, 11/15/13
(Pre-refunded to 11/15/98) BBB+ 11/98 at 102 277,270
1,500,000 City of Warren, Ohio, General Obligation (Limited Tax)
Sewerage System Improvement Bonds, Series 1990,
7.750%, 11/01/10 (Pre-refunded to 11/01/00) BBB+ 11/00 at 102 1,708,544
1,750,000 City of Washington, Ohio, Water System Mortgage Revenue
Bonds, Series 1993, 5.375%, 12/01/19 Aaa 12/03 at 101 1,633,344
750,000 West Geauga Local School District, Ohio, School Improvement
Bonds, Series 1994 (General Obligation Unlimited Tax),
5.950%, 11/01/12 Aaa 11/04 at 102 767,677
500,000 Wooster City School District, Wayne County, Ohio, General
Obligation Bonds (Unlimited Tax) For School Building
Construction and Improvement, 6.500%, 12/01/17 Aaa 12/02 at 102 538,599
3,000,000 Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series X, 5.500%, 7/01/25 A- 7/05 at 100 2,797,140
- -------------------------------------------------------------------------------------------------------------------------
$170,805,000 Total Investments - (cost $169,211,038) -- 98.6% 177,383,921
============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.4% 2,505,087
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $179,889,008
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 69 $103,052,144 58%
RATINGS* AA+, AA, AA- Aa1, Aa, Aa2, Aa3 17 24,648,467 14
PORTFOLIO OF A+ A1 8 13,565,040 8
INVESTMENTS: A, A- A, A2, A3 7 10,605,154 6
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 11 10,203,762 6
Non-rated Non-rated 13 15,309,354 8
- -----------------------------------------------------------------------------------------------------------------
TOTAL 125 $177,383,921 100%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
** Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
See accompanying notes to financial statements.
58
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $236,539,342 $216,928,610 $ 78,991,293 $ 62,318,985
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 2,200,000 600,000 700,000 1,100,000
Cash 214,914 272,613 295,680 169,227
Receivables:
Interest 3,781,216 3,539,873 1,171,926 1,005,662
Shares sold 333,691 249,667 45,367 29,670
Investments sold 46,200 -- -- --
Other assets 6,826 4,621 3,844 1,133
------------ ------------ ------------ ------------
Total assets 243,122,189 221,595,384 81,208,110 64,624,677
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased 14,264,059 -- -- --
Shares reacquired -- 87,215 -- --
Accrued expenses:
Management fees (note 6) 106,156 102,940 38,088 30,405
Other 92,252 82,165 48,463 25,346
Dividends payable 622,673 556,425 252,764 198,275
------------ ------------ ------------ ------------
Total liabilities 15,085,140 828,745 339,315 254,026
------------ ------------ ------------ ------------
Net assets (note 7) $228,037,049 $220,766,639 $ 80,868,795 $ 64,370,651
============ ============ ============ ============
Class A Shares (note 1)
Net assets $ 16,952,703 $ 22,728,330 $ 5,575,913 $ 6,368,939
============ ============ ============ ============
Shares outstanding 1,637,398 2,164,059 570,888 621,514
============ ============ ============ ============
Net asset value and redemption price per share $ 10.35 $ 10.50 $ 9.77 $ 10.25
============ ============ ============ ============
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price) $ 10.84 $ 10.99 $ 10.23 $ 10.73
============ ============ ============ ============
Class C Shares (note 1)
Net assets $ 722,815 $ 936,247 $ 786,508 $ 846,620
============ ============ ============ ============
Shares outstanding 69,816 89,887 80,957 82,846
============ ============ ============ ============
Net asset value, offering and redemption price per share $ 10.35 $ 10.42 $ 9.72 $ 10.22
============ ============ ============ ============
Class R Shares (note 1)
Net assets $210,361,531 $197,102,062 $ 74,506,374 $ 57,155,092
============ ============ ============ ============
Shares outstanding 20,274,353 18,808,742 7,650,711 5,576,842
============ ============ ============ ============
Net asset value and redemption price per share $ 10.38 $ 10.48 $ 9.74 $ 10.25
============ ============ ============ ============
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statement.
59
<PAGE>
STATEMENT OF NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
NA NY INS OH
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $173,498,824 $356,439,152 $177,383,921
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 700,000 -- --
Cash 36,638 -- 42,012
Receivables:
Interest 2,310,278 4,188,767 2,854,224
Shares sold 16,470 85,391 189,025
Investments sold 60,000 -- 150,000
Other assets 2,605 15,268 2,989
------------ ------------ ------------
Total assets 176,624,815 360,728,578 180,622,171
------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased 3,993,255 -- --
Shares reacquired -- 52,000 1,668
Accrued expenses:
Management fees (note 6) 80,313 165,674 84,464
Other 79,518 454,205 98,451
Dividends payable 549,768 1,082,456 548,580
------------ ------------ ------------
Total liabilities 4,702,854 1,754,335 733,163
------------ ------------ ------------
Net assets (note 7) $171,921,961 $358,974,242 $179,889,008
============ ============ ============
Class A Shares (note 1)
Net assets $ 18,941,870 $ 30,575,497 $ 16,654,039
============ ============ ============
Shares outstanding 1,826,771 2,960,137 1,611,111
============ ============ ============
Net asset value and redemption price per share $ 10.37 $ 10.33 $ 10.34
============ ============ ============
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price) $ 10.86 $ 10.82 $ 10.83
============ ============ ============
Class C Shares (note 1)
Net assets $ 711,060 $ 2,240,716 $ 2,447,945
============ ============ ============
Shares outstanding 68,396 216,952 237,837
============ ============ ============
Net asset value, offering and redemption price per share $ 10.40 $ 10.33 $ 10.29
Class R Shares (note 1)
Net assets $152,269,031 $326,158,029 $160,787,024
============ ============ ============
Shares outstanding 14,646,005 31,587,612 15,573,722
============ ============ ============
Net asset value and redemption price per share $ 10.40 $ 10.33 $ 10.32
============ ============ ============
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
STATEMENT OF OPERATIONS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
Six months ended August 31, 1996 AUGUST 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 6,959,313 $ 6,570,683 $ 2,512,746 $ 1,948,144
----------- ----------- ----------- -----------
Expenses:
Management fees (note 6) 617,847 598,926 222,848 177,953
12b-1 service fees - Class A (note 1) 18,000 23,962 6,250 7,217
12b-1 distribution and service fees - Class C (note 1) 3,606 4,733 3,522 4,024
Shareholders' servicing agent fees and expenses 76,263 71,077 34,558 29,425
Custodian's fees and expenses 39,385 31,681 20,754 20,204
Directors' fees and expenses (note 6) 2,553 2,265 1,295 1,866
Professional fees 10,268 7,459 7,961 5,922
Shareholders' reports - printing and mailing expenses 43,454 34,282 15,038 8,676
Federal and state registration fees 1,206 1,763 2,322 2,390
Portfolio insurance expense - 12,074 - 2,458
Other expenses 7,461 6,742 3,305 2,733
----------- ----------- ----------- -----------
Total expenses before expense reimbursement 820,043 794,964 317,853 262,868
Expense reimbursement from investment adviser (note 6) - - (4,365) -
----------- ----------- ----------- -----------
Net expenses 820,043 794,964 313,488 262,868
----------- ----------- ----------- -----------
Net investment income 6,139,270 5,775,719 2,199,258 1,685,276
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions, net
of taxes, if applicable (notes 1 and 4) (826,085) (671,021) (94,972) -
Net change in unrealized appreciation or depreciation
of investments (4,146,759) (4,844,258) (1,379,754) (1,573,160)
----------- ----------- ----------- -----------
Net gain (loss) from investments (4,972,844) (5,515,279) (1,474,726) (1,573,160)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations $ 1,166,426 $ 260,440 $ 724,532 $ 112,116
=========== =========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
STATEMENT OF OPERATIONS
Six months ended August 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
NY NY INS OH
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 5,322,665 $10,718,430 $ 5,507,819
----------- ----------- -----------
Expenses:
Management fees (note 6) 465,528 971,392 492,498
12b-1 service fees - Class A (note 1) 21,875 34,690 18,607
12b-1 distribution and service fees - Class C (note 1) 3,248 8,245 11,898
Shareholders' servicing agent fees and expenses 67,740 141,583 76,701
Custodian's fees and expenses 26,662 37,866 27,125
Directors' fees and expenses (note 6) 1,139 4,579 2,362
Professional fees 9,599 16,324 7,782
Shareholders' reports - printing and mailing expenses 28,141 42,988 36,741
Federal and state registration fees 1,187 4,037 2,373
Portfolio insurance expenses -- 5,627 --
Other expenses 4,759 11,481 6,372
----------- ----------- -----------
Total expenses before expense reimbursement 629,878 1,278,812 682,459
Expense reimbursement from investment adviser (note 6) -- -- --
----------- ----------- -----------
Net expenses 629,878 1,278,812 682,459
----------- ----------- -----------
Net investment income 4,692,787 9,439,618 4,825,360
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (721,907) (1,574,234) 20,631
Net change in unrealized appreciation or depreciation
of investments (3,219,365) (8,205,201) (4,467,205)
----------- ----------- -----------
Net gain (loss) from investments (3,941,272) (9,779,435) (4,446,574)
----------- ----------- -----------
Net increase (decrease) in net assets from operations $ 751,515 $ (339,817) $ 378,786
=========== =========== ===========
- ---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
- ------------------------------------------------------------------------------------------------------------------------
CA CA INS
- ------------------------------------------------------------------------------------------------------------------------
Six months Year ended Six months Year ended
ended 8/31/96 2/29/96 ended 8/31/96 2/29/96
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 6,139,270 $ 12,198,392 $ 5,775,719 $ 11,206,229
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (826,085) 1,855,177 (671,021) 764,418
Net change in unrealized appreciation or depreciation
of investments (4,146,759) 8,120,195 (4,844,258) 9,456,488
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 1,166,426 22,173,764 260,440 21,427,135
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (364,074) (388,705) (471,545) (496,274)
Class C (15,454) (18,278) (20,197) (28,991)
Class R (5,720,552) (11,713,501) (5,233,063) (10,613,497)
From accumulated net realized gains from investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
In excess of net realized gains from investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets from distributions
to shareholders (6,100,080) (12,120,484) (5,724,805) (11,138,762)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 4,812,782 9,631,213 7,698,910 12,814,061
Class C 97,358 518,671 166,268 927,664
Class R 6,039,676 22,522,458 5,219,652 12,331,198
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 190,739 173,826 229,709 248,069
Class C 11,681 13,296 13,135 16,740
Class R 3,470,107 7,264,916 3,097,777 6,444,797
------------ ------------ ------------ ------------
14,622,343 40,124,380 16,425,451 32,782,529
------------ ------------ ------------ ------------
Cost of shares redeemed:
Class A (491,156) (567,970) (2,065,732) (1,021,240)
Class C (55,241) (64,962) (257,252) (167,154)
Class R (10,888,532) (31,186,974) (11,803,950) (21,853,091)
------------ ------------ ------------ ------------
(11,434,929) (31,819,906) (14,126,934) (23,041,485)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets derived from Fund
share transactions 3,187,414 8,304,474 2,298,517 9,741,044
------------ ------------ ------------ ------------
Net increase (decrease) in net assets (1,746,240) 18,357,754 (3,165,848) 20,029,417
Net assets at the beginning of period 229,783,289 211,425,535 223,932,487 203,903,070
------------ ------------ ------------ ------------
Net assets at the end of period $228,037,049 $229,783,289 $220,766,639 $223,932,487
============ ============ ============ ============
Balance of undistributed net investment income at end
of period $ 182,145 $ 142,955 $ 185,061 $ 134,147
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
63
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
MA MA INS
- --------------------------------------------------------------------------------------------------------------------------------
Six months Year ended Six months Year ended
ended 8/31/96 2/29/96 ended 8/31/96 2/29/96
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,199,258 $ 4,246,614 $ 1,685,276 $ 3,277,512
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (94,972) (217,900) -- 12,456
Net change in unrealized appreciation or depreciation
of investments (1,379,754) 3,250,694 (1,573,160) 2,682,527
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations 724,532 7,279,408 112,116 5,972,495
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (126,835) (139,213) (142,833) (174,644)
Class C (15,386) (11,360) (16,992) (22,692)
Class R (2,025,587) (4,149,329) (1,520,597) (3,106,193)
From accumulated net realized gains from investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
In excess of net realized gains from investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders (2,167,808) (4,299,902) (1,680,422) (3,303,529)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 1,556,557 3,487,963 1,663,869 3,509,564
Class C 179,535 510,754 174,512 359,914
Class R 3,182,737 7,760,983 1,206,411 3,473,819
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 76,235 75,540 82,370 104,279
Class C 11,954 7,603 15,948 20,520
Class R 1,436,227 2,962,447 1,086,452 2,184,979
----------- ----------- ----------- -----------
6,443,245 14,805,290 4,229,562 9,653,075
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (270,658) (436,265) (547,185) (415,735)
Class C (31,579) (33,924) (33,759) (32,222)
Class R (5,530,093) (8,395,795) (3,809,369) (5,205,452)
----------- ----------- ----------- -----------
(5,832,330) (8,865,984) (4,390,313) (5,653,409)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets derived from Fund
share transactions 610,915 5,939,306 (160,751) 3,999,666
----------- ----------- ----------- -----------
Net increase (decrease) in net assets (832,361) 8,918,812 (1,729,057) 6,668,632
Net assets at the beginning of period 81,701,156 72,782,344 66,099,708 59,431,076
----------- ----------- ----------- -----------
Net assets at the end of period $80,868,795 $81,701,156 $64,370,651 $66,099,708
=========== =========== =========== ===========
Balance of undistributed net investment income at end of period $ 34,434 $ 2,984 $ 6,359 $ 1,505
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
64
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
NY NY INS
- ----------------------------------------------------------------------------------------------------------------------------------
Six months Year ended Six months Year ended
ended 8/31/96 2/29/96 ended 8/31/96 2/29/96
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,692,787 $ 8,950,610 $ 9,439,618 $ 18,895,145
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (721,907) 1,772,126 (1,574,234) 973,136
Net change in unrealized appreciation or depreciation
of investments (3,219,365) 5,658,638 (8,205,201) 15,965,392
------------ ------------ ----------- ------------
Net increase (decrease) in net assets from operations 751,515 16,381,374 (339,817) 35,833,673
------------ ------------ ----------- ------------
DISTRIBUTION TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (456,680) (551,771) (687,359) (834,291)
Class C (14,532) (18,002) (36,184) (36,998)
Class R (4,219,235) (8,358,840) (8,713,530) (18,227,897)
From accumulated net realized gains from investment
transactions:
Class A - - - (51,671)
Class C - - - (2,889)
Class R - - - (861,604)
In excess of net realized gains from investment
transactions:
Class A - - - (4,745)
Class C - - - (265)
Class R - - - (79,130)
------------ ------------ ----------- ------------
Decrease in net assets from distributions
to shareholders (4,690,447) (8,928,613) (9,437,073) (20,099,490)
------------ ------------ ----------- ------------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 4,427,064 13,070,637 8,494,901 18,519,780
Class C 179,090 556,433 908,424 1,180,461
Class R 5,941,538 12,367,225 6,408,212 13,478,031
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 282,829 358,186 479,970 621,995
Class C 9,422 12,262 27,564 23,992
Class R 3,035,446 6,297,279 6,181,745 14,466,972
------------ ------------ ----------- ------------
13,875,389 32,662,022 22,500,816 48,291,231
------------ ------------ ----------- ------------
Cost of shares redeemed:
Class A (1,135,431) (1,336,675) (2,494,898) (2,316,785)
Class C (109,321) (23,961) (29,363) (153,831)
Class R (7,922,987) (20,329,583) (20,689,673) (44,754,684)
------------ ------------ ----------- ------------
(9,167,739) (21,690,219) (23,213,934) (47,225,300)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets derived from Fund
share transactions 4,707,650 10,971,803 (713,118) 1,065,931
------------ ------------ ----------- ------------
Net increase (decrease) in net assets 768,718 18,424,564 (10,490,008) 16,800,114
Net assets at the beginning of period 171,153,243 152,728,679 369,464,250 352,664,136
------------ ------------ ----------- ------------
Net assets at the end of period $171,921,961 $171,153,243 $358,974,242 $ 369,464,250
============ ============ ============ =============
Balance of undistributed net investment income at end of period $ 129,158 $ 126,818 $ 61,993 $ 59,448
============ ============ ============ =============
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
OH
- -------------------------------------------------------------------------------------------
Six months Year ended
ended 8/31/96 2/29/96
- -------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 4,825,360 $ 9,415,389
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) 20,631 730,235
Net change in unrealized appreciation or depreciation
of investments (4,467,205) 6,013,907
------------ ------------
Net increase (decrease) in net assets from operations 378,786 16,159,531
------------ ------------
DISTRIBUTION TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (381,797) (435,348)
Class C (51,835) (62,605)
Class R (4,412,572) (8,957,352)
From accumulated net realized gains from investment
transactions:
Class A -- --
Class C -- --
Class R -- --
In excess of net realized gains from investment
transactions:
Class A -- --
Class C -- --
Class R -- --
Decrease in net assets from distributions ------------ ------------
to shareholders (4,846,204) (9,455,305)
------------ ------------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 4,778,935 8,850,862
Class C 600,657 1,260,641
Class R 3,222,271 10,592,955
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 236,805 253,231
Class C 41,893 49,706
Class R 3,041,970 6,293,847
------------ ------------
11,922,531 27,301,242
------------ ------------
Cost of shares redeemed:
Class A (939,666) (809,723)
Class C (303,938) (95,567)
Class R (8,482,415) (18,392,616)
------------ ------------
(9,726,019) (19,297,906)
------------ ------------
Net increase (decrease) in net assets derived from Fund
share transactions 2,196,512 8,003,336
------------ ------------
Net increase (decrease) in net assets (2,270,906) 14,707,562
Net assets at the beginning of period 182,159,914 167,452,352
------------ ------------
Net assets at the end of period $179,889,008 $182,159,914
============ ============
Balance of undistributed net investment income at end
of period $ 47,872 $ 68,716
============ ============
- -------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
66
<PAGE>
NOTES TO FINANCIAL STATEMENTS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At August 31, 1996, the state Funds (the "Funds") covered in this report are
Nuveen California Tax-Free Fund, Inc. (comprising the Nuveen California and
California Insured Tax-Free Value Funds), Nuveen Tax-Free Bond Fund, Inc.
(comprising the Nuveen Massachusetts, New York and Ohio Tax-Free Value Funds)
and Nuveen Insured Tax-Free Bond Fund, Inc. (comprising the Nuveen Massachusetts
and New York Insured Tax-Free Value Funds).
Additional state Funds covering other states may be established in the future.
Each Fund invests primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities within its respective single
state.
The Funds are registered under the Investment Company Act of 1940 as open-end,
diversified management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary investments in
securities that have variable rate and demand features qualifying them as short-
term securities are traded and valued at amortized cost.
Securities 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 be settled a month or more after the transaction date. Any securities so
purchased are subject to market fluctuations 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 its purchase commitments. At
August 31, 1996, there were purchase commitments in California Special and New
York Special of $14,264,059 and $3,993,255, respectively. There were no such
purchase commitments in any of the other Funds.
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Dividends and Distributions to shareholders
Tax-exempt net investment income is declared as a dividend monthly and payment
is made or reinvestment is credited to shareholder accounts after month-end. Net
realized capital gains and/or market discount from investment transactions are
distributed to shareholders not less frequently than annually. Furthermore,
capital gains are distributed only to the extent they exceed available capital
loss carryovers.
Income Taxes
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of such distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted
accounting principles. Accordingly, temporary over-distributions as a result of
these differences may occur and will be classified as either distributions in
excess of net investment income, distributions in excess of net realized gains
and/or distributions in excess of ordinary taxable income from investment
transactions, where applicable.
Insurance
Each Fund is a separate taxpayer for federal income tax purposes and intends to
comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies by distributing to shareholders all of its tax-
exempt net investment income, in addition to any significant amounts of net
realized capital gains and/or market discount from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.001 per share. Furthermore, each Fund intends
to satisfy conditions which will enable interest from municipal securities,
which is exempt from regular federal and designated state income taxes, to
retain such tax-exempt status when distributed to the shareholders of the
respective Funds.
The California Insured, Massachusetts Insured and New York Insured Tax-Free
Value Funds invest in municipal securities which are covered by insurance or
backed by an escrow or trust account containing sufficient U.S. Government or
U.S. Government agency securities, both of which ensure the timely payment of
principal and interest. Each insured municipal security is covered by Original
Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such
insurance does not guarantee the market value of the municipal securities or the
value of the Funds' shares. Original Issue Insurance and Secondary Market
Insurance remain in effect as long as the municipal securities covered thereby
remain outstanding and the insurer remains in
68
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
business, regardless of whether the Funds ultimately dispose of such municipal
securities. Consequently, the market value of the municipal securities covered
by Original Issue Insurance or Secondary Market Insurance may reflect value
attributable to the insurance. Portfolio Insurance is effective only while the
municipal securities are held by the Funds. Accordingly, neither the prices used
in determining the market value of the underlying municipal securities nor the
net asset value of the Funds' shares include value, if any, attributable to the
Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give
the Funds the right to obtain permanent insurance with respect to the municipal
security covered by the Portfolio Insurance policy at the time of its sale.
Flexible sales Charge Program
Effective September 6, 1994, each Fund commenced offering Class "A" Shares and
Class "C" Shares. Class "A" Shares incur a front-end sales charge and an annual
12b-1 service fee. Class "C" Shares are sold without a sales charge but incur
annual 12b-1 distribution and service fees. An investor purchasing Class "C"
Shares agrees to pay a contingent deferred sales charge ("CDSC'') of 1% if Class
"C" Shares are redeemed within 12 months of purchase.
Prior to the offering of Class "A" and Class "C" Shares, the shares outstanding
were renamed Class "R" and are not subject to any 12b-1 distribution or service
fees. Effective with the offering of the new classes, Class "R" Shares are
generally available only for reinvestment of dividends by current "R"
shareholders and for already established Nuveen Unit Investment Trust
reinvestment accounts.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific class of
shares are prorated among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares are recorded to the
specific class.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including futures, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the future,
they did not make any such investments during the six months ended August 31,
1996, other than occasional purchase of high quality synthetic money market
securities which were held temporarily pending the reinvestment in long-term
portfolio securities, if applicable.
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. FUND SHARES
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
CA CA INS
- -----------------------------------------------------------------------------------------------------------------
Six months Year ended Six months Year ended
ended 8/31/96 2/29/96 ended 8/31/96 2/29/96
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 464,799 927,895 733,978 1,211,972
Class C 9,390 50,026 15,777 89,705
Class R 580,220 2,165,620 497,294 1,177,751
Shares issued to shareholders due to reinvestment
of distributions:
Class A 18,361 16,682 21,816 23,441
Class C 1,126 1,279 1,259 1,594
Class R 333,274 700,563 294,697 614,344
----------- ----------- ----------- -----------
1,407,170 3,862,065 1,564,821 3,118,807
----------- ----------- ----------- -----------
Shares redeemed:
Class A (47,325) (54,537) (194,933) (95,872)
Class C (5,378) (6,378) (24,615) (15,721)
Class R (1,050,886) (2,990,150) (1,130,785) (2,088,697)
----------- ----------- ----------- -----------
(1,103,589) (3,051,065) (1,350,333) (2,200,290)
----------- ----------- ----------- -----------
Net increase (decrease) 303,581 811,000 214,488 918,517
=========== =========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
MA MA INS
- -----------------------------------------------------------------------------------------------------------------
Six months Year ended Six months Year ended
ended 8/31/96 2/29/96 ended 8/31/96 2/29/96
- -----------------------------------------------------------------------------------------------------------------
Shares sold:
Class A 159,489 356,285 163,097 339,891
Class C 18,480 51,779 17,150 34,914
Class R 327,975 795,556 118,143 337,797
Shares issued to shareholders due to reinvestment
of distributions:
Class A 7,781 7,663 8,008 10,031
Class C 1,227 775 1,555 1,987
Class R 146,996 303,251 105,572 211,766
----------- ----------- ----------- -----------
661,948 1,515,309 413,525 936,386
----------- ----------- ----------- -----------
Shares redeemed:
Class A (27,819) (44,057) (53,729) (40,197)
Class C (3,275) (3,523) (3,314) (3,095)
Class R (567,665) (857,146) (371,006) (503,288)
----------- ----------- ----------- -----------
(598,759) (904,726) (428,049) (546,580)
----------- ----------- ----------- -----------
Net increase (decrease) 63,189 610,583 (14,524) 389,806
=========== =========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
70
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
NY NY INS
- ----------------------------------------------------------------------------------------------------------------------
Six months Year ended Six months Year ended
ended 8/31/96 2/29/96 ended 8/31/96 2/29/96
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 426,261 1,261,309 823,705 1,778,309
Class C 17,304 53,367 88,040 113,081
Class R 570,480 1,182,028 619,746 1,291,786
Shares issued to shareholders due to reinvestment of
distributions:
Class A 27,155 34,236 46,305 59,314
Class C 902 1,167 2,661 2,279
Class R 290,584 603,620 596,091 1,387,801
--------- --------- --------- ---------
1,332,686 3,135,727 2,176,548 4,632,570
--------- --------- --------- ---------
Shares redeemed:
Class A (109,684) (127,601) (242,315) (220,550)
Class C (10,537) (2,280) (2,838) (14,453)
Class R (764,056) (1,956,584) (2,002,524) (4,307,682)
--------- --------- --------- ---------
(884,277) (2,086,465) (2,247,677) (4,542,685)
--------- --------- --------- ---------
Net increase (decrease) 448,409 1,049,262 (71,129) 89,885
========= ========= ========= =========
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
OH
- --------------------------------------------------------------------------------
Six months Year ended
ended 8/31/96 2/29/96
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A 461,575 846,644
Class C 58,238 120,707
Class R 312,443 1,015,491
Shares issued to shareholders due to reinvestment
of distributions:
Class A 22,774 24,156
Class C 4,045 4,767
Class R 292,801 604,197
--------- ---------
1,151,876 2,615,962
--------- ---------
Shares redeemed:
Class A (91,022) (76,763)
Class C (29,520) (9,130)
Class R (820,324) (1,765,109)
--------- ---------
(940,866) (1,851,002)
--------- ---------
Net increase (decrease) 211,010 764,960
========= =========
- --------------------------------------------------------------------------------
</TABLE>
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. DISTRIBUTIONS TO SHAREHOLDERS
On September 9, 1996, the Funds declared dividend distributions from their
tax-exempt net investment income which were paid on October 1, 1996, to
shareholders of record on September 9, 1996, as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------
CA CA INS MA MA INS
- --------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share:
Class A $.0450 $.0440 $.0420 $.0430
Class C .0385 .0370 .0360 .0365
Class R .0475 .0460 .0440 .0450
====== ====== ====== ======
- --------------------------------------------------------
- ------------------------------------------------
NY NY INS OH
- ------------------------------------------------
Dividend per share:
Class A $.0460 $.0430 $.0450
Class C .0395 .0365 .0380
Class R .0485 .0450 .0470
====== ====== ======
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the six months ended August
31, 1996, were as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $85,419,750 $59,283,685 $5,036,225 $ 955,210
Temporary municipal investments 35,400,000 26,725,000 3,400,000 2,600,000
SALES
Investments in municipal securities 70,156,907 55,088,191 2,706,776 765,000
Temporary municipal investments 33,600,000 34,025,000 5,300,000 3,000,000
=========== ========== ========= =========
- -------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NY NY INS OH
- --------------------------------------------------------------------------------
PURCHASES
Investments in municipal securities $42,461,671 $56,269,623 $21,086,235
Temporary municipal investments 7,200,000 24,800,000 9,700,000
SALES
Investments in municipal securities 30,401,456 49,566,336 19,049,220
Temporary municipal investments 10,300,000 31,800,000 10,500,000
=========== =========== ===========
- --------------------------------------------------------------------------------
</TABLE>
72
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
At August 31, 1996, the identified cost of investments owned for
federal income tax purposes was the same as the cost for financial
reporting purposes for each Fund.
At August 31, 1996, the Funds' last fiscal year end, the following
Funds had unused capital loss carryforwards available for federal
income tax purposes to be applied against future capital gains, if
any. If not applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
CA CA INS MA MA INS
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
1997 $ - $ - $ - $ 59,693
1999 - - - 18,885
2003 765,306 341,931 275,030 172,689
2004 - - 507,247 27,409
--------- -------- -------- --------
Total 765,306 $341,931 $782,277 $278,676
========= ======== ======== ========
- ------------------------------------------------------------------
- ---------------------------------------
OH
- ---------------------------------------
Expiration year:
1997 $ -
1999 -
2003 -
2004 237,140
---------
Total $ 237,140
=========
- ---------------------------------------
</TABLE>
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at August 31, 1996, were as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 8,810,811 $ 9,982,504 $ 4,334,755 $ 3,594,172
Depreciation (843,975) (507,478) (209,900) (216,815)
------------ ------------ ------------ ------------
Net unrealized appreciation $ 7,966,836 $ 9,475,026 $ 4,124,855 $ 3,377,357
- ---------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------
NY NY INS OH
- -----------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 6,807,214 $ 18,582,374 $ 8,663,051
Depreciation (963,299) (1,233,457) (490,168)
------------ ------------ ------------
Net unrealized appreciation $ 5,843,915 $ 17,348,917 $ 8,172,883
- -----------------------------------------------------------------------------
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays to the Adviser an annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average daily net asset value Management fee
- ------------------------------------------------------
<S> <C>
For the first $125,000,000 .55 of 1%
For the next $125,000,000 .5375 of 1
For the next $250,000,000 .525 of 1
For the next $500,000,000 .5125 of 1
For the next $1,000,000,000 .5 of 1
For net assets over $2,000,000,000 .475 of 1
- ------------------------------------------------------
</TABLE>
The management fee is reduced by, or the Adviser assumes certain expenses of
each Fund, in an amount necessary to prevent the total expenses of each Fund
(including the management fee, but excluding interest, taxes, fees incurred in
acquiring and disposing of portfolio securities, 12b-1 Service and Distribution
fees, and to the extent permitted, extraordinary expenses) in any fiscal year
from exceeding .75 of 1% of the average daily net asset value of the California,
Massachusetts, New York and
74
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
Ohio Tax-Free Value Funds, .80 of 1% of the average daily net asset value of the
California Insured and New York Insured Tax-Free Value Funds, and .90 of 1% of
the average daily net asset value of the Massachusetts Insured Tax-Free Value
Fund.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to its directors who are affiliated with the Adviser or to
its officers, all of whom receive remuneration for their services to the Funds
from the Adviser.
7. COMPOSITION OF NET ASSETS
At August 31, 1996, each Fund 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>
- -------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid-in $221,479,459 $212,119,504 $ 77,593,003 $ 61,265,611
Balance of undistributed net investment income 182,145 185,061 34,434 6,359
Accumulated net realized gain (loss) from investment
transactions (1,591,391) (1,012,952) (883,497) (278,676)
Distributions in excess of net realized gains from
investment transactions -- -- -- --
Net unrealized appreciation of investments 7,966,836 9,475,026 4,124,855 3,377,357
------------ ------------ ------------ ------------
Net assets $228,037,049 $220,766,639 $ 80,868,795 $ 64,370,651
============ ============ ============ ============
Authorized shares:
Class A 40,000,000 40,000,000 200,000,000 200,000,000
Class C 45,000,000 45,000,000 260,000,000 240,000,000
Class R 40,000,000 40,000,000 40,000,000 60,000,000
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
NY NY INS OH
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid-in $166,021,360 $343,220,975 $171,884,762
Balance of undistributed net investment income 129,158 61,993 47,872
Accumulated net realized gain (loss) from investment
transactions (72,472) (1,573,503) (216,509)
Distributions in excess of net realized gains from
investment transactions -- (84,140) --
Net unrealized appreciation of investments 5,843,915 17,348,917 8,172,883
------------ ------------ ------------
Net assets $171,921,961 $358,974,242 $179,889,008
============ ============ ============
Authorized shares:
Class A 200,000,000 200,000,000 200,000,000
Class C 220,000,000 200,000,000 220,000,000
Class R 80,000,000 100,000,000 80,000,000
--------------------------------------------------------------------------------------------------
</TABLE>
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At August 31, 1996, the revenue sources by municipal
purpose for these investments, expressed as a percent of total investments, were
as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CA CA INS MA MA INS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 14% 10% 19% 2%
Lease Rental Facilities 14 16 -- --
Health Care Facilities 16 15 15 17
Educational Facilities 15 3 14 16
Water/Sewer Facilities 5 9 1 1
Transportation 1 1 2 1
Electric Utilities 8 6 -- 3
Pollution Control -- -- 2 --
Other 16 19 1 1
General Obligation Bonds 1 4 22 39
Escrowed Bonds 10 17 24 20
--- --- --- ---
100% 100% 100% 100%
=== === === ===
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
NY NY INS OH
- -----------------------------------------------------------------------
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 23% 18% 4%
Lease Rental Facilities 19 4 1
Health Care Facilities 4 8 17
Educational Facilities 13 10 4
Water/Sewer Facilities 3 11 8
Transportation 1 11 4
Electric Utilities -- 1 2
Pollution Control 3 2 6
Other 8 3 1
General Obligation Bonds 13 17 38
Escrowed Bonds 13 15 15
--- --- ---
100% 100% 100%
=== === ===
</TABLE>
76
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
Certain long-term and intermediate-term investments owned by the Funds are
covered by insurance issued by several private insurers or are backed by an
escrow or trust containing U.S. Government or U.S. Government agency securities,
either of which ensure the timely payment of principal and interest in the event
of default (42% for California, 100% for California Insured, 43% for
Massachusetts, 100% for Massachusetts Insured, 22% for New York, 100% for New
York Insured and 60% for Ohio). Such insurance or escrow, however, does not
guarantee the market value of the municipal securities or the value of the
Funds' shares.
Certain temporary investments in short-term municipal securities have credit
enhancements (letters of credit, guarantees or insurance) issued by third party
domestic or foreign banks or other institutions (99% for California, 100% for
California Insured, 100% for Massachusetts, 100% for Massachusetts Insured, 100%
for New York, N/A for New York Insured and N/A for Ohio).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
9. OTHER MATTERS
The John Nuveen Company, parent of John Nuveen &Co. Incorporated and Nuveen
Advisory Corp., respectively the distributor and investment adviser of your
Fund, has entered into an agreement pursuant to which Nuveen will acquire
Flagship Resources Inc. and consolidate their respective mutual fund businesses.
This agreement is subject to the approval of the shareholders of the Flagship
funds. As part of the consolidation of Flagship into Nuveen, the Board of
Directors of the Nuveen Tax-Free Bond Fund has determined that it is in the best
interests of the Nuveen New York and Ohio Tax-Free Value Funds to be reorganized
and combined with Flagship's existing New York and Ohio funds after the Flagship
funds have become a part of the Nuveen Fund family. These combinations are
subject to the approval of the shareholders of both the affected Nuveen and
Flagship Funds at shareholder meetings scheduled for December, 1996.
77
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
----------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized gain tax-exempt Distributions Net asset Total return
value beginning investment (loss) from net investment from value end of on net asset
of period income investments** income capital gains period value+
- ---------------------------------------------------------------------------------------------------------------------------------
CA
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $ 10.580 $ .275 $ (.238) $ (.267) $ -- $ 10.350 .38%
Year ended
2/29/96 10.100 .549++ .473 (.542) -- 10.580 10.36
9/6/94 to
2/28/95 10.210 .270++ (.031) (.275) (.074) 10.100 2.52
CLASS C
Six months ended
8/31/96 10.580 .237 (.239) (.228) -- 10.350 --
Year ended
2/29/96 10.100 .470++ .474 (.464) -- 10.580 9.53
9/16/94 to
2/28/95 10.040 .218++ .139 (.223) (.074) 10.100 3.71
CLASS R
Six months ended
8/31/96 10.600 .283 (.221) (.282) -- 10.380 .62
Year ended
2/29/96 10.130 .575 .467 (.572) -- 10.600 10.54
Year ended 2/28,
1995 10.740 .582 (.531) (.587) (.074) 10.130 .78
1994 10.850 .598 (.054) (.596) (.058) 10.740 5.08
1993 10.140 .633 .707 (.626) (.004) 10.850 13.66
8 months ended
2/29/92 9.920 .429 .218 (.427) -- 10.140 6.61
Year ended 6/30,
1991 9.790 .639 .133 (.642) -- 9.920 8.16
1990 9.850 .641 (.058) (.643) -- 9.790 6.14
1989 9.240 .649++ .610 (.649) -- 9.850 14.12
1988 9.280 .647++ (.040) (.647) -- 9.240 6.87
1987+++ 9.600 .652++ (.320) (.652) -- 9.280 3.28
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 90.
78
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-----------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Net assets average income to average to average net income to average Portfolio
end of period net assets before net assets before assets after net assets after turnover
(in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ----------------------------------------------------------------------------------------------------------------------------------
CA
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $ 16,953 .95%* 5.17%* .95%* 5.17%* 31%
Year ended
2/29/96 12,709 1.00 5.23 .96 5.27 36
9/6/94 to
2/28/95 3,146 1.41* 5.40* 1.00* 5.81* 32
CLASS C
Six months ended
8/31/96 723 1.70* 4.43* 1.70* 4.43* 31
Year ended
2/29/96 684 1.84 4.39 1.71 4.52 36
9/16/94 to
2/28/95 200 2.41* 4.37* 1.75* 5.03* 32
CLASS R
Six months ended
8/31/96 210,362 .70* 5.43* .70* 5.43* 31
Year ended
2/29/96 216,390 .71 5.53 .71 5.53 36
Year ended 2/28,
1995 208,080 .71 5.83 .71 5.83 32
1994 218,430 .73 5.47 .73 5.47 19
1993 183,215 .71 6.05 .71 6.05 5
8 months ended
2/29/92 133,377 .67* 6.30* .67* 6.30* --
Year ended 6/30,
1991 107,508 .69 6.48 .69 6.48 15
1990 78,704 .69 6.51 .69 6.51 8
1989 52,048 .77 6.77 .75 6.79 22
1988 29,640 .88 6.91 .70 7.09 48
1987+++ 19,094 1.19 5.61 .18 6.62 17
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
79
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------------------------------------------
Net
realized and Dividends from
Net Asset Net unrealized gain tax-exempt Distribution Net asset
value beginning investment (loss) from net investment from value end of
of period income investments** income capital gains period
- ---------------------------------------------------------------------------------------------------------------------------
CA INS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $10.760 $ .271 $(.267) $(.264) $ -- $10.500
Year ended
2/29/96 10.250 .530++ .505 (.525) -- 10.760
9/6/94 to
2/28/95 10.220 .255++ .068 (.265) (.028) 10.250
CLASS C
Six months ended
8/31/96 10.670 .223 (.251) (.222) -- 10.420
Year ended
2/29/96 10.150 .448++ .516 (.444) -- 10.670
9/12/94 to
2/28/95 10.060 .210++ .123 (.215) (.028) 10.150
CLASS R
Six months ended
8/31/96 10.740 .278 (.262) (.276) -- 10.480
Year ended
2/29/96 10.230 .556 .507 (.553) -- 10.740
Year ended 2/28,
1995 10.670 .559 (.412) (.559) (.028) 10.230
1994 10.850 .560 (.101) (.556) (.083) 10.670
1993 10.010 .584 .871 (.579) (.036) 10.850
8 months ended
2/29/92 9.650 .401 .360 (.401) -- 10.010
Year ended 6/30,
1991 9.480 .600 .176 (.606) -- 9.650
1990 9.630 .608 (.151) (.607) -- 9.480
1989 9.020 .607 .610 (.607) -- 9.630
1988 8.980 .600++ .040 (.600) -- 9.020
1987+++ 9.600 .630++ (.620) (.630) -- 8.980
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
80
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
---------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of Port-
expenses to net investment expenses net investment folio
Total return Net assets average income to average to average net income to average turn-
on net asset end of period net assets before net assets before assets after net assets after over
value (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ------------------------------------------------------------------------------------------------------------------------------------
CA INS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 .07% $ 22,728 .95%* 5.02%* .95%* 5.02%* 26%
Year ended
2/29/96 10.32 17,250 .98 4.99 .97 5.00 38
9/6/94 to
2/28/95 3.33 4,753 1.24* 5.26* 1.05* 5.45* 25
CLASS C
Six months ended
8/31/96 (.24) 936 1.70* 4.28* 1.70* 4.28* 26
Year ended
2/29/96 9.67 1,040 1.74 4.23 1.71 4.26 38
9/12/94 to
2/28/95 3.45 222 2.44* 4.05* 1.80* 4.69* 25
CLASS R
Six months ended
8/31/96 .18 197,102 .70* 5.28* .70* 5.28* 26
Year ended
2/29/96 10.63 205,642 .70 5.29 .70 5.29 38
Year ended 2/28,
1995 1.68 198,928 .70 5.60 .70 5.60 25
1994 4.27 208,115 .71 5.12 .71 5.12 14
1993 15.05 168,852 .75 5.72 .75 5.72 9
8 months ended
2/29/92 7.99 100,933 .64* 5.97* .64* 5.97* 7
Year ended 6/30,
1991 8.43 74,551 .68 6.26 .68 6.26 29
1990 4.93 50,625 .70 6.36 .70 6.36 13
1989 13.97 35,032 .82 6.52 .82 6.52 23
1988 7.44 22,394 .99 6.60 .82 6.77 31
1987+++ (.13) 16,192 1.06 5.59 .17 6.48 4
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
81
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------ --------------------------------
Net
realized and Dividends from
Net asset Net unrealized gain tax-exempt Distribution Net asset
value beginning investment (loss) from net investment from value end of
of period income investments** income capital gains period
- -----------------------------------------------------------------------------------------------------------------------------------
MA
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $9.940 $.263++ $ (.181) $(.252) $ -- $9.770
Year ended
2/29/96 9.560 .513++ .388 (.521) -- 9.940
9/6/94 to
2/28/95 9.540 .254++ .025 (.259) -- 9.560
CLASS C
Six months ended
8/31/96 9.890 .223++ (.177) (.216) -- 9.720
Year ended
2/29/96 9.510 .437++ .392 (.449) -- 9.890
10/5/94 to
2/28/95 9.280 .188++ .254 (.212) -- 9.510
CLASS R
Six months ended
8/31/96 9.910 .267++ (.173) (.264) -- 9.740
Year ended
2/29/96 9.540 .537++ .378 (.545) -- 9.910
Year ended 2/28,
1995 9.940 .541++ (.403) (.538) -- 9.540
1994 9.910 .543++ .038 (.541) (.010) 9.940
1993 9.210 .563++ .704 (.563) (.004) 9.910
3 months ended
2/29/92 9.130 .146 .077 (.143) 9.210
Year ended 11/30, --
1991 8.760 .577++ .375 (.582) -- 9.130
1990 8.900 .587++ (.144) (.583) -- 8.760
1989 8.600 .587++ .300 (.587) -- 8.900
1988 8.250 .581++ .350 (.581) -- 8.600
12/10/86 to
11/30/87 9.600 .577++ (1.350) (.577) -- 8.250
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 90.
82
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-----------------------------------------------------------------------------------------------------------------
Ratio of Retio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net asset average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A .85% $ 5,576 1.01%* 5.20%* 1.00%* 5.21%* 3%
Six months ended
8/31/96 9.62 4,290 1.17 5.04 1.00 5.21 6
Year ended
2/29/96 3.05 1,067 1.87* 4.88* 1.00* 5.75* 17
9/6/94 to
2/28/95 .49 787 1.76* 4.45* 1.75* 4.46* 3
CLASS C
Six months ended 8.87 638 2.24 3.96 1.75 4.45 6
8/31/96
Year ended 4.86 147 3.40* 3.46* 1.75* 5.11* 17
2/29/96
10/5/94 to
2/28/95 .98 74,506 .76* 5.45* .75* 5.46* 3
CLASS R
Six months ended
8/31/96 9.80 76,773 .82 5.42 .75 5.49 6
Year ended
2/29/96 1.64 71,568 .77 5.75 .75 5.77 17
Year ended 2/28, 5.96 71,942 .81 5.32 .75 5.38 3
1995 14.21 53,231 .87 5.79 .75 5.91 5
1994
1993 2.44 34,470 .71* 6.31* .71* 6.31* 5
3 months ended
2/29/92 11.19 31,150 .77 6.37 .75 6.39 19
Year ended 11/30, 5.21 20,829 .85 6.58 .75 6.68 23
1991 10.62 15,513 1.09 6.30 .75 6.64 31
1990 11.56 9,485 1.24 6.25 .75 6.74 55
1989
1988 (8.19) 5,681 1.54* 5.30* .37* 6.47* 34
12/10/86 to
11/30/87
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
83
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
--------------------------- --------------------------------
Net
realized and Dividends from
Net asset Net unrealized gain tax-exempt Distribution Net asset
value beginning investment (loss) from net investment from value end of
of period income investments** income capital gains period
- ------------------------------------------------------------------------------------------------------------------------------------
MAINS
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $10.490 $ .261 $(.243) $(.258) $ -- $10.250
Year ended
2/29/96 10.060 .512++ .433 (.515) -- 10.490
9/6/94 to
2/28/95 10.030 .249++ .039 (.258) -- 10.060
CLASS C
Six months ended
8/31/96 10.470 .223 (.254) (.219) -- 10.220
Year ended
2/29/96 10.040 .434 .435 (.439) -- 10.470
9/14/94 to
2/28/95 9.910 .202++ .137 (.209) -- 10.040
CLASS R
Six months ended
8/31/96 10.500 .270 (.250) (.270) -- 10.250
Year ended
2/29/96 10.060 .538 .445 (.543) -- 10.500
Year ended 2/28,
1995 10.450 .545 (.386) (.549) -- 10.060
1994 10.440 .537 -- (.527) -- 10.450
1993 9.650 .551 .784 (.545) -- 10.440
Year ended
2/29/92 9.360 .570 .301 (.581) -- 9.650
Year ended 2/28,
1991 9.140 .568 .219 (.567) -- 9.360
1990 8.960 .571++ .178 (.569) -- 9.140
1989 9.030 .576++ (.070) (.576) -- 8.960
Year ended
2/29/88 9.540 .582++ (.510) (.582) -- 9.030
12/10/86 to
2/28/87 9.600 .131++ (.060) (.131) -- 9.540
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 90.
84
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-----------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A .20% $ 6,369 1.03%* 4.99%* 1.03%* 4.99%* 1%
Six months ended
8/31/96 9.59 5,291 1.09 4.92 1.07 4.94 1
Year ended
2/29/96 2.99 1,956 1.36* 5.13* 1.15* 5.34* 10
9/6/94 to
2/28/95 (.28) 847 1.78* 4.25* 1.78* 4.25* 1
CLASS C
Six months ended 8.80 706 1.81 4.20 1.81 4.20 1
8/31/96
Year ended 3.52 338 2.07* 4.41* 1.90* 4.58* 10
2/29/96
9/14/94 to .22 57,155 .78* 5.24* .78* 5.24* 1
2/28/95
CLASS R 9.99 60,102 .81 5.21 .81 5.21 1
Six months ended
8/31/96 1.77 57,137 .79 5.54 .79 5.54 10
Year ended
2/29/96 5.22 58,255 .84 5.09 .84 5.09 3
Year ended 2/28,
1995 14.28 47,098 .86 5.47 .86 5.47 2
1994
1993 9.57 28,189 .72 5.93 .72 5.93 5
Year ended
2/29/92 8.95 15,625 .85 6.19 .85 6.19 6
Year ended 2/28,
1991 8.52 8,649 1.20 5.94 .97 6.17 15
1990
1989 5.84 5,404 1.87 5.54 .97 6.44 41
Year ended
2/29/88 1.14 4,895 1.75 5.37 .59 6.53 42
12/10/86 to
2/28/87 .75 2,312 5.18* .64* -- 5.82+ --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
85
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized gain tax-exempt Distributions Net asset
value beginning investment (loss)from net investment from value end of
of period income investments** income capital gains period
- -----------------------------------------------------------------------------------------------------------------------------
NY
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $10.610 $ .282 $(.246) $(.276) $ -- $10.370
Year ended
2/29/96 10.120 .555++ .487 (.552) -- 10.610
9/6/94 to
2/28/95 10.230 .277++ (.067) (.273) (.047) 10.120
CLASS C
Six months ended
8/31/96 10.640 .239 (.242) (.237) -- 10.400
Year ended
2/29/96 10.110 .478++ .528 (.476) -- 10.640
9/13/94 to
2/28/95 10.110 .231++ .038 (.222) (.047) 10.110
CLASS R
Six months ended
8/31/96 10.640 .291 (.240) (.291) -- 10.400
Year ended
2/29/96 10.150 .582++ .490 (.582) -- 10.640
Year ended 2/28,
1995 10.720 .579 (.529) (.573) (.047) 10.150
1994 10.610 .578++ .161 (.580) (.049) 10.720
1993 9.880 .603++ .806 (.596) (.081) 10.610
3 months ended
2/29/92 9.820 .163 .053 (.156) -- 9.880
Year ended 11/30,
1991 9.380 .629++ .441 (.630) -- 9.820
1990 9.560 .631++ (.181) (.630) -- 9.380
1989 9.180 .633++ .380 (.633) -- 9.560
1988 8.760 .625++ .420 (.625) -- 9.180
12/10/86 to
11/30/87 9.600 .612++ (.840) (.612) -- 8.760
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 90.
86
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ------------------------------------------------------------------------------------------------------------------------------------
NY
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 .37% $ 18,942 .96%* 5.29%* .96%* 5.29%* 18%
Year ended
2/29/96 10.52 15,732 1.02 5.28 .99 5.31 47
9/6/94 to
2/28/95 2.21 3,189 1.56* 5.31* 1.00* 5.87* 29
CLASS C
Six months ended
8/31/96 (.01) 711 1.71* 4.54* 1.71* 4.54* 18
Year ended
2/29/96 10.13 646 1.99 4.29 1.73 4.55 47
9/13/94 to
2/28/95 2.80 86 7.97* (1.06)* 1.75* 5.16* 29
CLASS R
Six months ended
8/31/96 .51 152,269 .71* 5.54* .71* 5.54* 18
Year ended
2/29/96 10.80 154,776 .76 5.55 .74 5.57 47
Year ended 2/28,
1995 .75 149,454 .74 5.79 .74 5.79 29
1994 7.10 146,297 .78 5.30 .75 5.33 15
1993 14.79 107,146 .84 5.75 .75 5.84 12
3 months ended
2/29/92 2.21 66,491 .75* 6.27* .75* 6.27* 16
Year ended 11/30,
1991 11.79 59,351 .79 6.46 .75 6.50 19
1990 4.92 44,347 .81 6.59 .75 6.65 51
1989 11.34 29,040 .98 6.40 .75 6.63 85
1988 12.20 14,975 1.09 6.55 .75 6.89 71
12/10/86 to
11/30/87 (2.44) 8,239 1.38* 5.45* .37* 6.46* 20
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
87
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------- ------------------------------
Net
realized and Dividends from
Net asset Net unrealized gain tax-exempt Distributions Net asset
value beginning Investment (loss)from net investment from value end of
of period imcome investments** income capital gains period
- ----------------------------------------------------------------------------------------------------------------------------
NY INS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $10.610 $ .266 $(.285) $(.261) $ -- $10.330
Year ended
2/29/96 10.150 .521 .492 (.524) (.029)*** 10.610
9/6/94 to
2/28/95 10.160 .253++ .037 (.260) (.040)*** 10.150
CLASS C
Six months ended
8/31/96 10.610 .226 (.284) (.222) -- 10.330
Year ended
2/29/96 10.120 .442 .524 (.447) (.029)*** 10.610
9/13/94 to
2/28/95 10.030 .207++ .133 (.210) (.040)*** 10.120
CLASS R
Six months ended
8/31/96 10.610 .273 (.280) (.273) -- 10.330
Year ended
2/29/96 10.150 .548 .495 (.554) (.029)*** 10.610
Year ended 2/28,
1995 10.630 .555 (.440) (.555) (.040)*** 10.150
1994 10.620 .550 .035 (.543) (.032) 10.630
1993 9.780 .566 .849 (.562) (.013) 10.620
Year ended
2/29/92 9.320 .590 .467 (.597) -- 9.780
Year ended 2/28,
1991 9.250 .598 .068 (.596) -- 9.320
1990 9.060 .596 .190 (.596) -- 9.250
1989 9.100 .593++ (.040) (.593) -- 9.060
Year ended
2/29/88 9.830 .606++ (.730) (.606) -- 9.100
12/10/86 to
2/28/87 9.600 .130++ .230 (.130) -- 9.830
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 90.
88
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-------------------------------------------------------------------------------------------------------
Ratios of Ratio of Ratio of Ratio of
expenses to net investment expenses to net investment
Total return Net assets average income to average average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- -----------------------------------------------------------------------------------------------------------------------------------
NY INS
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 (.15)% $ 30,575 .94%* 5.00%* .94%* 5.00%* 14%
Year ended
2/29/96 10.19 24,747 .93 4.97 .93 4.97 17
9/6/94 to
2/28/95 3.01 7,258 1.13* 5.33* 1.05* 5.41* 11
CLASS C
Six months ended
8/31/96 (.53) 2,241 1.69* 4.25* 1.69* 4.25* 14
Year ended
2/29/96 9.71 1,369 1.69 4.21 1.69 4.21 17
9/13/94 to
2/28/95 3.53 285 2.32* 4.13* 1.80* 4.65* 11
CLASS R
Six months ended
8/31/96 (.03) 326,158 .69* 5.25* .69* 5.25* 14
Year ended
2/29/96 10.51 343,348 .67 5.26 .67 5.26 17
Year ended 2/28,
1995 1.37 345,121 .65 5.57 .65 5.57 11
1994 5.57 388,176 .68 5.11 .68 5.11 5
1993 14.96 314,877 .73 5.56 .73 5.56 6
Year ended
2/29/92 11.66 167,048 .69 6.08 .69 6.08 4
Year ended 2/28,
1991 7.61 80,484 .73 6.46 .73 6.46 13
1990 8.75 40,372 .85 6.35 .85 6.35 30
1989 6.37 20,206 1.05 6.50 .97 6.58 62
Year ended
2/29/88 (.85) 14,078 1.12 6.22 .61 6.73 36
12/10/86 to
2/28/87 3.76 5,177 3.19* 1.78* -- 4.97* --
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
89
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
---------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized gain tax-exempt Distributions Net asset
value beginning investment (loss) from net investment from value end of
of period income investments** income capital gains period
- -------------------------------------------------------------------------------------------------------------------------
OH
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 $10.600 $ .274 $(.264) $(.270) $ -- $10.340
Year ended
2/29/96 10.200 .538++ .404 (.542) -- 10.600
9/6/94 to
2/28/95 10.160 .266++ .087 (.272) (.041) 10.200
CLASS C
Six months ended
8/31/96 10.550 .231 (.263) (.228) -- 10.290
Year ended
2/29/96 10.160 .458++ .395 (.463) -- 10.550
9/15/94 to
2/28/95 10.070 .219++ .133 (.221) (.041) 10.160
CLASS R
Six months ended
8/31/96 10.580 .280 (.258) (.282) -- 10.320
Year ended
2/29/96 10.180 .563++ .403 (.566) -- 10.580
Year ended 2/28,
1995 10.610 .568 (.388) (.569) (.041) 10.180
1994 10.580 .570++ .087 (.565) (.062) 10.610
1993 9.870 .595++ .728 (.589) (.024) 10.580
3 months ended
2/29/92 9.770 .154 .126 (.153) (.027) 9.870
Year ended 11/30,
1991 9.530 .619 .287 (.624) (.042) 9.770
1990 9.550 .624 .003 (.624) (.023) 9.530
1989 9.040 .629++ .510 (.629) -- 9.550
1988 8.610 .626++ .430 (.626) -- 9.040
12/10/86 to
11/30/87 9.600 .600++ (.990) (.600) -- 8.610
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Net of taxes, if applicable (note 1).
*** The amounts shown include distributions in excess of capital gains of
$.0024 per share for the year ended 2/29/96 and $.0015 per share for the
period ended 2/28/95.
+ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in net
asset value per share. The total returns shown for Class A Shares do not
include the effect of applicable front-end sales charges. The total returns
shown for Class C Shares do not include the effect of applicable contingent
deferred sales charges. Class R Shares are not subject to any front-end or
contingent deferred sales charges.
++ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser, if applicable (note 6).
+++ Shares in the California and California Insured Funds were first offered
for sale on 7/1/86.
90
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
--------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of Port-
expenses to net investment expenses net investment folio
Total return Net assets average income to average to average net income to average turn-
on net asset end of period net assets before net assets before assets after net assets after over
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ----------------------------------------------------------------------------------------------------------------------------------
OH
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
8/31/96 .12% $ 16,654 .97%* 5.13%* .97%* 5.13%* 11%
Year ended
2/29/96 9.43 12,904 1.03 5.08 .98 5.13 33
9/6/94 to
2/28/95 3.63 4,320 1.27* 5.40* 1.00* 5.67* 28
CLASS C
Six months ended
8/31/96 (.29) 2,448 1.72* 4.38* 1.72* 4.38* 11
Year ended
2/29/96 8.55 2,163 1.75 4.36 1.73 4.38 33
9/15/94 to
2/28/95 3.63 901 2.09* 4.58* 1.75* 4.92* 28
CLASS R
Six months ended
8/31/96 .23 160,787 .72* 5.39* .72* 5.39* 11
Year ended
2/29/96 9.70 167,092 .76 5.38 .74 5.40 33
Year ended 2/28,
1995 1.99 162,231 .73 5.70 .73 5.70 28
1994 6.30 167,448 .75 5.28 .75 5.28 9
1993 13.88 133,797 .84 5.77 .75 5.86 13
3 months ended
2/29/92 2.87 90,121 .70* 6.16* .70* 6.16* 3
Year ended 11/30,
1991 9.84 81,649 .71 6.37 .71 6.37 16
1990 6.86 56,887 .74 6.61 .74 6.61 38
1989 12.97 37,714 .82 6.59 .75 6.66 66
1988 12.56 20,144 .98 6.71 .75 6.94 55
12/10/86 to
11/30/87 (4.10) 9,135 1.33* 5.59* .39* 6.53* 26
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
91
<PAGE>
For nearly 100 years,
Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
municipal bonds
[PHOTO APPEARS HERE]
Your
investment
partners
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships within these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their needs
in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent financial
planners, to bring the benefits of tax-free investing to you. These advisers are
experts at identifying your needs and recommending the best solutions for your
situation. Together we make a powerful team, helping you create a successful
investment plan that meets your needs today and in the future.
[LOGO OF NUVEEN]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286 VSA-2-8.96
[RECYCLE LOGO]
<PAGE>
[NUVEEN LOGO]
[PHOTO APPEARS HERE]
Nuveen Tax-Free
Money Market Funds
Dependable tax-free
income for generations
TAX-FREE RESERVES
CALIFORNIA
MASSACHUSETTS
NEW YORK
SEMIANNUAL REPORT/AUGUST 31, 1996
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
7 Fund performance
9 Portfolio of investments
23 Statement of net assets
24 Statement of operations
28 Statement of changes in net assets
35 Notes to financial statements
40 Financial highlights
<PAGE>
Dear
shareholder
[PHOTOGRAPH]
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen Tax-Free Money
Market Funds, I am pleased to have this opportunity to report to you on the
performance of your funds. My experience at Nuveen over the past 19 years has
shaped my commitment to maintaining Nuveen's tradition of providing quality
investments through prudent management. Our goal is to help our shareholders
meet their investment needs with a full range of investment choices. In money
market funds we continue to focus on attractive levels of income,
diversification, and daily liquidity, with the knowledge that these funds play
an integral role in helping you reach your investment goals.
In contrast to 1994 and early 1995, when the Federal Reserve made an
unprecedented series of seven increases in short-term interest rates, the Fed
has reacted to low inflation and moderate economic expansion over the past year
by making only three moves since July 1995, each one a rate reduction. While
overall yields on money market funds this year are lower than last year's,
reflecting this generally lower interest rate environment, the tax-free money
market funds offered by Nuveen still provide solid yields when compared to
taxable investments for investors in higher tax brackets.
"Nuveen money market funds continue to play an integral role in helping you
reach your investment goals."
3
<PAGE>
As of August 31, 1996, the seven-day annualized yield for the money market
funds covered in this report ranged from 2.86% to 3.03%. To match these yields,
an investor in the 36% federal income tax bracket would have had to earn at
least 4.47% on taxable alternatives. For the state money market funds, the
addition of state taxes increases the advantage provided by tax-free municipal
bond funds, raising the required taxable-equivalent yield to a range of 4.87% to
5.22%.
I would also like to take this opportunity to share with you the news of some
recent developments that will give Nuveen more flexibility to meet expanded
investor needs for capital preservation, current income, and future growth. For
nearly 100 years, we have offered products and services designed for the prudent
investor, services that have grown over the years as a natural extension of our
expertise in municipal bonds.
In November, Nuveen will introduce the Nuveen Growth and Income Stock Fund,
designed to provide a high-quality equity complement to our current municipal
bond funds. The fund will be offered in affiliation with Institutional Capital
Corporation (ICAP), an institutional equity management firm located in Chicago
that shares Nuveen's values and investment management style. Tailor-made to
address the needs of many Nuveen investors, the fund can play a critical role in
achieving a balanced strategy for investors who expect their investments to
provide a core element of their financial security.
In addition, Nuveen plans to acquire Flagship Resources, Inc., a fixed-income
mutual fund specialist based in Dayton, Ohio. Flagship is a firm that shares our
views on the importance of research and emphasizes a conservative, value-
oriented approach to portfolio management. In January 1997, the tax-exempt
mutual fund activities of Flagship and Nuveen expect to be merged, enabling us
to offer more than 40 municipal bond funds, the broadest selection available in
the U.S. Intermediate and limited term national funds as well as product
offerings in 24 states will provide more tax-free options to match investors'
individual needs.
We are excited about these recent developments, and we are pleased to be
bringing Nuveen investors expanded options for achieving wealth preservation,
dependable income, and long-term asset growth. We thank you for your continued
confidence in Nuveen.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 1996
4
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
How did the municipal market perform over the past year?
Unlike the prior two years, 1996's bond market has not been easy to categorize.
While 1994 represented the worst period in recent bond market history and 1995
the best in a decade, this year has seen a stream of mixed reports on the state
of the economy that have alternately caused investors to view the markets with
enthusiasm, then uncertainty. Despite this climate, the municipal bond market
has rewarded investors with solid taxable-equivalent yields and opportunities to
purchase bonds with strong credit quality.
What has been Nuveen's investment approach during this period?
Nuveen continues to look for opportunities to capture attractive yields in
different market sectors and over many types of securities, including tax-free
variable rate demand notes, tax and revenue anticipation notes, commercial
paper, and selected certificates of participation.
5
<PAGE>
[PHOTOGRAPH]
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
How do short-term funds fit into a diversified portfolio?
Money market fund investors receive attractive income along with share price
stability, daily liquidity, and investment convenience. These short-term
instruments provide a valuable balance in portfolios with other long-term
holdings and give investors easy access to funds and the flexibility of
checkwriting.
What is your outlook for the municipal market?
A look at the current economy shows a combination of factors that historically
bode well for the bond market. Inflation continues at the same modest pace that
it has demonstrated over the past five years. The Federal Reserve's decision to
stand pat on short-term rates since January indicates that it believes inflation
is under control. The economy continues to enjoy modest expansion, supported by
generally level producer prices, low wage pressures, and a stable money supply.
Fading worries about tax reform--and the potential effect of a flat tax
proposal--have resulted in increased demand for tax-free products.
6
<PAGE>
NUVEEN TAX-FREE
RESERVES, INC.
Tax-Free Reserves
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 4.56% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.52
10/95 3.30
11/95 3.23
12/95 3.95
1/96 2.93
2/96 2.75
3/96 2.80
4/96 3.16
5/96 3.05
6/96 2.93
7/96 2.96
8/96 2.92
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 2.92%
Taxable-equialent yield on NAV* 4.56%
Federal tax rate 36.0%
Total net assets ($000) 304,968
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive
this return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
NUVEEN CALIFORNIA TAX-FREE
MONEY MARKET FUND
California
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 5.22% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.69
10/95 3.40
11/95 3.28
12/95 4.33
1/96 2.97
2/96 2.85
3/96 2.88
4/96 3.34
5/96 3.20
6/96 2.93
7/96 3.11
8/96 3.00
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 3.03%
Taxable-equivalent yield on NAV* 5.22%
Combined state and federal tax rate 42.0%
Total net assets ($000) 202,703
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive this
return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
7
<PAGE>
NUVEEN MASSACHUSETTS TAX-FREE
MONEY MARKET FUND
Massachusetts
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 5.06% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.44
10/95 3.24
11/95 3.10
12/95 3.76
1/96 2.88
2/96 2.77
3/96 2.78
4/96 3.19
5/96 3.03
6/96 2.80
7/96 2.95
8/96 2.86
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 2.86%
Taxable-equivalent yield on NAV* 5.06%
Combined state and federal tax rate 43.5%
Total net assets ($000) 70,971
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive this
return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
NUVEEN NEW YORK TAX-FREE
MONEY MARKET FUND
New York
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 4.87% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.46
10/95 3.26
11/95 3.22
12/95 4.12
1/96 2.92
2/96 2.75
3/96 2.79
4/96 3.31
5/96 3.13
6/96 2.85
7/96 2.96
8/96 2.90
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 2.90%
Taxable-equivalent yield on NAV* 4.87%
Combined state and federal tax rate 40.5%
Total net asset ($000) 29,157
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive this
return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
8
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
NUVEEN TAX-FREE RESERVES, INC.
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA--2.7%
$ 8,200,000 The Medical Clinic Board of the City of Birmingham--UAHSF,
Medical Clinic Review Bonds, UAHSF Series 1991,
Variable Rate Demand Bonds, 3.850%, 12/01/26+ A-1+ $ 8,200,000
- -------------------------------------------------------------------------------------------------------------------------
ARIZONA--7.0%
7,000,000 The Industrial Development Authority of the County of Apache
(Arizona), Pollution Control Revenue Bonds, 1981 Series B (Tucson
Electric Power Company Project), Variable Rate Demand Bonds,
3.550%, 10/01/21+ VMIG-1 7,000,000
1,800,000 Maricopa County, Arizona, Pollution Control Corporation, Pollution
Control Revenue Refunding Bonds (Arizona Public Service
Company Palo Verde Project), 1994 Series F, Variable Rate
Demand Bonds, 3.750%, 5/01/29+ A-1+ 1,800,000
12,600,000 City of Mesa Municipal Development Corporation, Special Tax Updates
Bonds, Series 1985, Commercial Paper, 3.500%, 11/21/96 VMIG-1 12,600,000
- -------------------------------------------------------------------------------------------------------------------------
ARKANSAS--1.0%
3,000,000 Board of Trustees of the University of Arkansas, Various Facility
Revenue Bonds (UAMS Campus), Series 1994,
Variable Rate Demand Bonds, 3.550%, 12/01/19+ VMIG-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--1.7%
5,000,000 California School Cash Reserve Program Authority, 1996 Pool Bonds
Series A, Note, 4.750%, 7/02/97 MIG-1 5,034,033
- -------------------------------------------------------------------------------------------------------------------------
DELAWARE--3.8%
11,572,500 New Castle County, Delaware, Economic Development Revenue
Refunding Bonds (Henderson/McGuire Partners Project), Series 1993,
Variable Rate Demand Bonds, 3.550%, 8/15/20+ A-1 11,572,500
- -------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--2.1%
6,400,000 District of Columbia (Washington, D.C.), General Obligation General
Fund Recovery Bonds, Series 1991B, Variable Rate Demand
Bonds, 3.950%, 6/01/03+ VMIG-1 6,400,000
- -------------------------------------------------------------------------------------------------------------------------
FLORIDA--5.5%
1,400,000 Florida Housing Finance Authority, Multi-Family Housing Revenue
Refunding Bonds, 1989 Series E (Fairmont Oaks Project),
Variable Rate Demand Bonds, 3.700%, 4/01/26+ A-1 1,400,000
4,210,000 Florida Municipal Power Agency, Initial Pooled Loan Project, Series A,
Commercial Paper Notes, 3.550%, 9/20/96 A-1 4,210,000
3,100,000 Pasco County Housing Finance Authority, Multi-Family Housing
Revenue Bonds (Carlton Arms of Magnolia Valley Project),
Series 1985, Variable Rate Demand Bonds, 3.625%, 12/01/07+ VMIG-1 3,100,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 4,800,000 Sarasota County Public Hospital District, Hospital Revenue Bonds
(Sarasota Memorial Hospital Project), Series C,
Commercial Paper, 3.750%, 9/16/96 A-1 $ 4,800,000
3,300,000 Sunshine State Governmental Financing Commission, Revenue Bonds,
Series 1986, Commercial Paper, 3.550%, 9/17/96 VMIG-1 3,300,000
- -------------------------------------------------------------------------------------------------------------------------
GEORGIA--4.4%
3,400,000 Municipal Gas Authority of Georgia, Gas Revenue Bonds (Transco
Portfolio I Project), Series B, Commercial Paper, 3.650%, 10/11/96 VMIG-1 3,400,000
10,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates (St. Joseph's
Hospital of Atlanta Project), Series 1989, Commercial Paper,
3.500%, 11/27/96 VMIG-1 10,000,000
- -------------------------------------------------------------------------------------------------------------------------
HAWAII--0.9%
2,600,000 Hawaii State Department of Budget and Finance, Special Purpose
Floating Rate Demand Bonds (Adventist Health System),
Variable Rate Demand Bonds, 3.800%, 9/01/99+ A-1 2,600,000
- -------------------------------------------------------------------------------------------------------------------------
ILLINOIS--11.3%
7,000,000 Illinois Development Finance Authority, Pollution Control Revenue
Bonds (Diamond-Star Motors Corporation Project), Series 1985,
Variable Rate Demand Bonds, 3.850%, 12/01/08+ P-1 7,000,000
6,000,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue
Bonds, Shedd Aquarium Society, Series 1987B, Commercial Paper,
3.600%, 12/04/96 VMIG-1 6,000,000
3,300,000 Illinois Health Facilities Authority, Series 1985 (Condell Memorial
Hospital), Variable Rate Demand Bonds, 3.750%, 11/01/05+ VMIG-1 3,300,000
5,000,000 Illinois Health Facilities Authority, Adjustable Demand Revenue
Bonds, Series 1991 (Victory Health Services Project), Commercial
Paper, 3.600%, 9/19/96 VMIG-1 5,000,000
6,500,000 City of Chicago, General Obligation Tender Notes, Series 1995A,
Note, 3.650%, 10/31/96 VMIG-1 6,500,000
1,000,000 Chicago O'Hare International Airport (American Airlines), Variable
Rate Demand Bonds, 3.750%, 12/01/17+ P-1 1,000,000
5,700,000 Decatur Water Revenue Bonds (New South Water Treatment), Series
1985, Commercial Paper, 3.550%, 9/10/96 VMIG-1 5,700,000
- -------------------------------------------------------------------------------------------------------------------------
INDIANA--3.1%
6,000,000 Indianapolis Economic Development Refunding Revenue
(Yellow Freight), Commercial Paper, 4.500%, 1/15/97 N/R 6,000,000
3,500,000 The Metropolitan School District of Washington Township, Marion
County, Indiana, Temporary Loan Warrants, 1996 Second Series,
Note, 4.100%, 12/31/96 N/R 3,502,252
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
IOWA--2.9%
$ 6,000,000 Iowa School Corporations, Warrant Certificates, Series 1996-97
Series A, Note, 4.750%, 6/27/97 MIG-1 $ 6,037,796
2,900,000 City of Eddyville, Iowa, Industrial Development Revenue Bonds
(Heartland Lysine Inc., Project), Variable Rate Demand Bonds,
3.950%, 11/01/03+ N/R 2,900,000
- -------------------------------------------------------------------------------------------------------------------------
KENTUCKY--3.6%
2,000,000 Kentucky Governmental Agencies, 1996 Cash Flow Borrowing
Program, Certificates of Participation, Tax and Revenue
Anticipation Notes, 4.300%, 6/30/97 N/R 2,002,363
9,005,000 Hancock County, Kentucky, Industrial Building Revenue Refunding
Bonds (Southwire Company Project), Series 1990, Variable Rate
Demand Bonds, 4.000%, 7/01/10+ N/R 9,005,000
- -------------------------------------------------------------------------------------------------------------------------
LOUISIANA--5.3%
9,100,000 Louisiana Recovery District, Sales Tax Bonds, Series 1988, Variable
Rate Demand Bonds, 3.850%, 7/01/97+ VMIG-1 9,100,000
4,000,000 Parish of West Feliciana, State of Louisiana, Multiple Rate Demand
Pollution Control Revenue Bonds (Gulf States Utilities Company
Project), Series 1985D, Variable Rate Demand Bonds, 3.850%, 12/01/15+ VMIG-1 4,000,000
3,000,000 Parish of West Feliciana, State of Louisiana, Multiple Rate Demand
Pollution Control Revenue Bonds (Gulf States Utilities Company
Project), Series 1986, Variable Rate Demand Bonds, 3.850%, 4/01/16+ VMIG-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--1.6%
5,000,000 Town of Mashpee, Massachusetts, Bond Anticipation Notes,
3.750%, 2/07/97 N/R 5,003,128
- -------------------------------------------------------------------------------------------------------------------------
MICHIGAN--3.1%
7,100,000 Michigan Job Development Authority, Limited Obligation Revenue
Bond (Frankenmuth Bavarian Inn Motor Lodge Project), Series A,
Variable Rate Demand Bonds, 4.000%, 9/01/15+ A-1 7,100,000
1,000,000 State of Michigan, Full Faith and Credit General Obligation Notes,
4.000%, 9/30/96 MIG-1 1,000,307
1,370,000 The Economic Development Corporation of the City of Warren, MaComb
County, Michigan, Floating Rate Limited Obligation Revenue Bonds
(The Prince Company, Inc., Michigan Division Project), Series A,
Variable Rate Demand Bonds, 3.900%, 11/01/99+ P-1 1,370,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MINNESOTA--2.9%
$ 6,330,000 City of Bloomington, Minnesota, Floating Rate Demand, Commercial
Revenue Bonds (James Avenue Associates Project), Series 1985,
Variable Rate Demand Bonds, 3.550%, 12/01/15+ A-1+ $ 6,330,000
2,500,000 Housing and Redevelopment Authority of the City of Saint Paul, Variable
Rate Demand Purchase, District Heating Revenue Bonds,
1982 Series A, Variable Rate Demand Bonds, 3.800%, 12/01/12+ A-1 2,500,000
- -------------------------------------------------------------------------------------------------------------------------
MISSOURI--3.0%
State Environmental Improvement and Energy Resources Authority,
Unit Priced Demand Adjustable Pollution Control Revenue Bonds,
Series 1985A (Union Electric Company), Commercial Paper:
5,600,000 3.625%, 10/17/96 VMIG-1 5,600,000
3,600,000 3.500%, 11/15/96 VMIG-1 3,600,000
- -------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--2.3%
7,000,000 New Hampshire Higher Educational and Health Facilities Authority,
Revenue Bonds, Hunt Community Issue, Series 1996, Variable Rate
Demand Bonds, 3.650%, 5/01/26+ A-1 7,000,000
- -------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--3.9%
2,400,000 The Wake County Industrial Facilities and Pollution Control Financing
Authority, Pollution Control Refunding Bonds (Carolina Power and Light
Company Project), Series 1990B, Commercial Paper, 3.850%, 9/27/96 P-1 2,400,000
6,630,000 The Wake County Industrial Facilities and Pollution Control Financing
Authority, Pollution Control Refunding Bonds (Carolina Power and Light
Company Project), Series 1990A, Commercial Paper, 3.700%, 10/16/96 P-1 6,630,000
3,000,000 The Wake County Industrial Facilities and Pollution Control Financing
Authority, Pollution Control Refunding Bonds (Carolina Power and Light
Company Project), Series 1985C, Commercial Paper, 3.600%, 10/01/15 VMIG-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
OHIO--10.5%
3,100,000 Ohio School Districts, 1996 Cash Flow Borrowing Program, Certificates
of Participation, Revenue Anticipation Notes of Certain Ohio School
Districts, Series B, Notes, 4.530%, 6/30/97 MIG-1 3,113,057
8,800,000 Centerville Health Care Variable Rate Demand Health Care Revenue
Bonds (Bethany Lutheran Village Continuing Care Facilities
Expansion Project), Variable Rate Demand Bonds, 3.700%, 5/01/08+ VMIG-1 8,800,000
4,000,000 Port Authority of Cincinnati and Hamilton County, Daily Adjustable
Economic Development Revenue Bonds (Kenwood Office Associates
Project), Series 1985, Variable Rate Demand Bonds, 3.950%, 9/01/25+ A-1 4,000,000
3,795,000 County of Franklin, Floating Rate Demand, Hospital Financing Revenue
Bonds, Series 1993 (Traditions at Mill Run Project), Variable Rate
Demand Bonds, 3.650%, 11/01/14+ N/R 3,795,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OHIO (CONTINUED)
$ 2,000,000 Greater Cleveland Regional Transit Authority, General Obligation
(Limited Tax), Capital Improvement Bond Anticipation Notes,
Series 1996, Note, 3.900%, 10/17/96 MIG-1 $ 2,001,109
1,880,000 County of Hamilton, Adjustable Rate Demand, Healthcare Revenue
Bonds, Series 1995 (Community Limited Care Dialysis Center Project),
Variable Rate Demand Bonds, 3.550%, 9/01/05+ N/R 1,880,000
8,300,000 County of Montgomery, Ohio, Variable Rate Hospital Facilities Revenue
Bonds (Miami Valley Hospital), 1985 Series C, Commercial Paper,
3.300%, 9/24/96 VMIG-1 8,300,000
- -------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--1.1%
3,250,000 The Pennsylvania State University Notes, Series of 1996, Note,
4.250%, 4/04/97 MIG-1 3,263,840
- -------------------------------------------------------------------------------------------------------------------------
TENNESSEE--4.4%
6,800,000 The Public Building Authority of the City of Clarksville, Adjustable Rate
Pooled Financing, Revenue Bonds, Series 1994 (Tennessee Municipal
Bond Fund), Variable Rate Demand Bonds, 3.550%, 6/01/24+ A-1 6,800,000
3,500,000 The Industrial Development Board of the County of Jackson, Variable
Rate Industrial Development Demand Revenue Bonds (Esselte Project),
Series 1985B, Variable Rate Demand Bonds, 3.850%, 8/01/15+ N/R 3,500,000
3,000,000 The Public Building Authority of the County of Montgomery,
Adjustable Rate Pooled Financing Revenue Bonds, Series 1985
(Tennessee County Loan Pool), Variable Rate Demand Bonds,
3.550%, 3/01/25+ A-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
TEXAS--4.4%
7,500,000 Guadalupe-Blanco River Authority, Pollution Control Revenue
Refunding Bonds (Central Power and Light Company Project),
Series 1995, Variable Rate Demand Bonds, 3.850%, 11/01/15+ VMIG-1 7,500,000
6,000,000 North Central Texas Health Facilities Development Corporation,
Hospital Revenue Bonds, Series 1985-B (Methodist Hospitals of
Dallas), Variable Rate Demand Bonds, 3.750%, 10/01/15+ A-1 6,000,000
- -------------------------------------------------------------------------------------------------------------------------
VIRGINIA--2.9%
3,000,000 Industrial Development Authority of Albemarle County, Variable Rate
Health Services Revenue Bonds (The University of Virginia Health
Services Foundation), Series 1996, Variable Rate Demand Bonds,
3.600%, 2/01/26+ A-1 3,000,000
2,600,000 Industrial Development Authority of the City of Norfolk, Floating Rate,
Industrial Development Revenue Bonds (Norfolk-Virginia Beach-
Portsmouth MSA Limited Partnership Project), Variable Rate
Demand Bonds, 5.363%, 11/01/04+ N/R 2,600,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 3,300,000 The Industrial Development Authority of the City of Richmond,
Floating Rate, Industrial Development Revenue Bonds
(Richmond MSA Limited Partnership Project), Variable Rate Demand
Bonds, 5.363%, 11/01/04+ N/R $ 3,300,000
- -------------------------------------------------------------------------------------------------------------------------
WASHINGTON--3.6%
5,100,000 Washington Health Care Facilities Authority Revenue Bonds (Adventist
Health System West/Walla Walla General), Variable Rate Demand
Bonds, 3.800%, 9/01/09+ A-1 5,100,000
2,700,000 Washington State Housing Finance Commission (Emerald Heights
Project), Variable Rate Demand Bonds, 4.250%, 1/01/21+ A-2 2,700,000
3,300,000 Washington State Housing Finance Commission, Nonprofit Revenue
Bonds (Crista Ministries Project), Series 1991A, Variable Rate
Demand Bonds, 3.500%, 7/01/11+ VMIG-1 3,300,000
- -------------------------------------------------------------------------------------------------------------------------
WYOMING--0.2%
600,000 Sweetwater County Pollution Control Revenue Bonds (Pacificorp Project),
Series 1984, Variable Rate Demand Bonds, 3.650%, 12/01/14+ A-1+ 600,000
- -------------------------------------------------------------------------------------------------------------------------
$ 302,442,500 Total Investments -- 99.2% 302,550,385
==============-----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.8% 2,417,733
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 304,968,118
=========================================================================================================================
</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
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.
14
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 2,500,000 California Health Facilities Authority, Refunding Revenue Bonds
(St. Joseph Health System), Series 1985A, Variable Rate Demand
Bonds, 3.700%, 7/01/13+ VMIG-1 $ 2,500,000
4,900,000 California Health Facilities Authority, (Sutter Health), Series 1990A,
Variable Rate Demand Bonds, 3.750%, 3/01/20+ VMIG-1 4,900,000
7,700,000 California Health Facilities Authority, Variable Rate Hospital Revenue
Bonds, Adjustable Convertible Extendable Securities-ACES (Saint
Francis Memorial Hospital), Series 1993B, Variable Rate Demand
Bonds, 3.300%, 11/01/19+ VMIG-1 7,700,000
9,000,000 California Pollution Control Financing Authority, Pollution Control
Revenue Bonds (Shell Oil Company Project), 1991 Series B,
Variable Rate Demand Bonds, 3.700%, 10/01/11+ VMIG-1 9,000,000
5,400,000 California Pollution Control Financing Authority, Pollution Control
Refunding Revenue Bonds (Pacific Gas and Electric Company),
1996-C, Variable Rate Demand Bonds, 3.650%, 11/01/26+ A-1+ 5,400,000
4,700,000 California Pollution Control Financing Authority, Pollution Control
Refunding Revenue Bonds (Pacific Gas and Electric Company),
1996-F, Variable Rate Demand Bonds, 3.650%, 11/01/26+ A-1+ 4,700,000
3,000,000 California School Cash Reserve Program Authority, 1996 Pool Bonds,
Series A, Note, 4.750%, 7/02/97 MIG-1 3,020,420
3,000,000 State of California 1996-97 Revenue Anticipation Notes,
4.500%, 6/30/97 MIG-1 3,012,651
4,700,000 Tri-Modal Variable Rate Revenue Refunding Certificates of Participatio
(House Ear Institute), 1993 Series A, Variable Rate Demand Bonds,
3.650%, 12/01/18+ A-1+ 4,700,000
1,000,000 California Statewide Community Development Authority, Certificates of
Participation (Sutter Health Obligation Group), Variable Rate
Demand Bonds, 3.750%, 7/01/15+ A-1 1,000,000
3,080,000 Chico Multi-Family Housing (Sycamore Glen Project), Variable Rate
Refunding Bonds, Series 1995, Variable Rate Demand Bonds,
3.770%, 4/07/14+ N/R 3,080,000
4,500,000 Contra Costa Multi-Family Mortgage Revenue Refunding (Delta Square
Project), Series 1990A,Variable Rate Demand Bonds,
3.400%, 8/01/07+ VMIG-1 4,500,000
3,000,000 Fremont Multi-Family Housing (Mission Wells Project), Series 1985E,
Variable Rate Demand Bonds, 3.450%, 9/01/07+ A-1 3,000,000
4,900,000 Grand Terrace Redevelopment Agency, Multi-Family Housing (Mount
Vernon Villas Project), Variable Rate Demand Bonds,
3.500%, 12/01/11+ A-1 4,900,000
3,000,000 Hayward Housing Authority, Multi-Family Mortgage, Revenue
Refunding Bonds, Series 1993A (Huntwood Terrace), Variable Rate
Demand Bonds, 3.750%, 3/01/27+ A-1 3,000,000
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
<CAPTION>
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND--CONTINUED
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 3,860,000 Hillsborough Certificates of Participation, Water and Sewer System
Project, Series 1995A, Variable Rate Demand Bonds, 3.750%, 6/01/15+ A-1 $ 3,860,000
9,000,000 Kern Community College District, Certificates of Participation, Series
1995, Variable Rate Demand Bonds, 4.200%, 1/01/25+ A-2 9,000,000
8,000,000 Los Angeles County Metropolitan Transportation Authority, Second
Subordinate Sales Tax Revenue, Commercial Paper,
3.600%, 9/19/96 A-1 8,000,000
8,400,000 Monterey County Financing Authority Revenue Bonds (Reclamation
and Distribution Project), Series 1995A, Variable Rate Demand Bonds,
3.500%, 9/01/36+ VMIG-1 8,400,000
7,200,000 Oakland California Certificates of Participation, Capital Improvement
Project, Variable Rate Demand Bonds, 3.750%, 12/01/15+ N/R 7,200,000
7,900,000 Orange County Apartment Development (Monarch Bay Apartments
Project), Variable Rate Demand Bonds, 3.450%, 10/01/07+ A-1 7,900,000
3,800,000 Orange County (Robinson Ranch Apartments Project), Variable Rate
Demand Revenue Bonds, 3.500%, 11/01/08+ VMIG-1 3,800,000
4,350,000 San Diego County Rincon Del Diablo Municipal Water District, Rincon
Public Facilities Corporation, Commercial Paper, 3.950%, 11/01/96 VMIG-1 4,350,000
7,000,000 Sacramento Municipal Utility District, Series I, Commercial Paper,
3.500%, 10/23/96 A-1+ 7,000,000
1,200,000 San Bernardino Multi-Family Housing (Castle Park Apartments),
Variable Rate Demand Bonds, 3.950%, 11/01/05+ VMIG-1 1,200,000
2,500,000 San Bernardino County 1996-97 Tax and Revenue Anticipation Notes,
4.500%, 6/30/97 MIG-1 2,512,445
2,000,000 San Bernardino County (1996 County Center Refinancing Project),
Certificates of Participation, Variable Rate Demand Bonds,
3.300%, 7/01/15+ VMIG-1 2,000,000
3,000,000 San Diego Housing Authority, Multi-Family Housing, Revenue
Refunding Bonds, Series 1993-A (Carmel Del Mar Apartments),
Variable Rate Demand Bonds, 3.500%, 12/01/15+ A-1+ 3,000,000
2,000,000 San Diego County Teeter Obligation, Tax-Exempt, Commercial Paper,
3.600%, 10/10/96 A-1 2,000,000
7,000,000 San Dimas Industrial Development Bonds (Bausch & Lomb
Incorporated), Variable Rate Demand Bonds, 3.800%, 12/01/15+ N/R 7,000,000
8,200,000 City of Santa Ana, Multi-Modal Interchangeable Rate Health Facility
Revenue Bonds (Town and Country Manor Project), Series 1990,
Variable Rate Demand Bonds, 3.650%, 10/01/20+ A-1 8,200,000
9,000,000 Santa Clara County Transit District Refunding Equipment, Trust
Certificates, Variable Rate Demand Bonds, 3.750%, 6/01/15+ VMIG-1 9,000,000
6,000,000 Santa Paula Public Financing Authority, Series 1996, Water System
Acquisition Project, Variable Rate Demand Bonds, 3.850%, 2/01/26+ A- 1 6,000,000
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 5,000,000 Solano County Tax and Revenue Anticipation Notes, Series 1995-96,
4.500%, 11/01/96 MIG-1 $ 5,005,217
4,000,000 Southeast Resource Recovery Facilities Authority, Lease Revenue
Refunding Bonds, Series 1995A, Variable Rate Demand Bonds,
3.550%, 12/01/18+ A-1 4,000,000
8,800,000 Southern California Public Power Authority, Transmission Project,
Variable Rate Demand Bonds, 3.200%, 7/01/19+ VMIG-1 8,800,000
6,400,000 Torrance Hospital Revenue (Little Company of Mary Hospital--Torrance
Memorial Hospital), Variable Rate Demand Bonds, 3.450%, 2/01/22+ A-2 6,400,000
3,000,000 Turlock Irrigation District (Transmission Projects), 1996 Series A,
Certificates of Participation, Variable Rate Demand Bonds,
3.300%, 1/01/26+ VMIG-1 3,000,000
2,640,000 Vista Multi-Family Housing (Shadowridge Apartments), Variable Rate
Demand Bonds, 3.400%, 5/01/05+ A-1+ 2,640,000
4,500,000 Visalia Public Finance Authority, Certificates of Participation, 1991
Convention Center Expansion Project, Variable Rate Demand Notes,
3.550%, 12/01/16+ VMIG-1 4,500,000
3,000,000 Washington Township Hospital District, 1984 Issue A, Variable Rate
Demand Bonds, 3.450%, 1/01/16+ VMIG-1 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 202,130,000 Total Investments -- 99.7% 202,180,733
===========================================================================================================================
Other Assets Less Liabilities -- 0.3% 522,290
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $202,703,023
===========================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
17
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,500,000 Boston Water and Sewer Commission, General Revenue Bonds, 1994
Series A (Senior Series), Variable Rate Demand Bonds,
3.100%, 11/01/24+ VMIG-1 $ 1,500,000
Brookline General Obligation Bonds, Unlimited Tax -- Bond:
600,000 4.650%, 2/15/97 Aaa 603,994
1,000,000 3.750%, 6/04/97 Aaa 1,001,651
2,000,000 Framingham General Obligation, Unlimited Tax -- Note,1
4.250%, 3/28/97 N/R 2,006,949
1,160,000 Franklin General Obligation Bonds, Unlimited Tax -- Note,
4.500%, 11/15/96 Aaa 1,161,617
1,000,000 Town of Mashpee, Massachusetts, Bond Anticipation Notes,
3.750%, 2/07/97 N/R 1,000,626
700,000 Massachusetts Bay Transportation Authority, Bond Anticipation Notes,
General Obligation, Unlimited Tax Series B -- Notes, 4.750%, 9/06/96 SP-1 700,115
3,000,000 Massachusetts Bay Transportation Authority, General Transportation,
Series 1984A, Commercial Paper, 3.500%, 10/31/96 VMIG-1 3,000,000
2,000,000 Massachusetts Municipal Wholesale Electric Company, Variable Rate
Power Supply System, Revenue Bonds, 1994 Series, Variable Rate
Demand Bonds, 3.350%, 7/01/19+ A-1+ 2,000,000
1,300,000 The Commonwealth of Massachusetts, Dedicated Income Tax Bonds,
Fiscal Recovery Loan, Act of 1990, Series B, Variable Rate Demand
Bonds, 3.650%, 12/01/97+ VMIG-1 1,300,000
2,800,000 The Commonwealth of Massachusetts, Dedicated Income Tax Bonds,
Fiscal Recovery Loan, Act of 1990, Series E, Variable Rate Demand
Bonds, 3.650%, 12/01/97+ VMIG-1 2,800,000
3,000,000 Massachusetts Health and Educational Facilities Authority (Fallon
Health Care), Commercial Paper, 3.800%, 10/31/96 A-1+ 3,000,000
2,400,000 Massachusetts Health and Educational Facilities Authority (Capital
Asset Program), Variable Rate Demand Bonds, 3.850%, 1/01/35+ VMIG-1 2,400,000
3,300,000 Massachusetts Health and Educational Facilities Authority (Harvard
University), Variable Rate Demand Bonds, 3.250%, 8/01/17+ VMIG-1 3,300,000
2,500,000 Massachusetts Health and Educational Facilities Authority (Bringham
and Women's Hospital), Variable Rate Demand Bonds,
3.450%, 7/01/17+ VMIG-1 2,500,000
400,000 Massachusetts Health and Educational Facilities Authority (M.I.T.
Project), Variable Rate Demand Bonds, 3.300%, 7/01/21+ VMIG-1 400,000
3,000,000 Massachusetts Housing Finance Agency, Multifamily Refunding
Revenue Bonds, 1995 Series A (Harbor Point), Variable Rate
Demand Bonds, 3.350%, 12/01/25+ VMIG-1 3,000,000
680,000 Massachusetts Housing Finance Agency, Variable Rate Industrial
Development Revenue Bonds, 1988 Series B, Variable Rate
Demand Bonds, 3.200%, 7/01/08+ VMIG-1 680,000
1,145,000 Massachusetts Industrial Finance Agency, Adjustable Rate Industrial
Revenue Bonds (Jencoat/Levy Realty Trust), Variable Rate
Demand Bonds, 4.293%, 10/06/99+ N/R 1,145,000
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000,000 Massachusetts Industrial Finance Agency, (Nova Realty Trust 1994
Refunding), Variable Rate Demand Bonds, 3.350%, 12/01/02+ P-1 $ 1,000,000
2,600,000 Massachusetts Industrial Finance Agency, Manhasset Bay Associates,
1985 Cambridge Issue, Variable Rate Demand Bonds,
3.300%, 10/01/10+ Aa2 2,600,000
3,100,000 Massachusetts Industrial Finance Agency (Holyoke Water Power
Company Project), Variable Rate Demand Bonds, 3.100%, 5/01/22+ VMIG-1 3,100,000
2,155,000 Massachusetts Health and Educational Facilities Authority (Community
Health Center Capital Fund), Variable Rate Demand Bonds,
3.350%, 3/01/15+ A-2 2,155,000
1,000,000 Massachusetts Health and Educational Facilities Authority, Amherst
College Issue, Series F, Variable Rate Demand Bonds, Variable Rate
Demand Bonds, 3.350%, 11/01/26+ VMIG-1 1,000,000
3,000,000 Massachusetts Port Authority, Multimodal Revenue Refunding Bonds,
Series 1995A, Variable Rate Demand Bonds, 3.750%, 7/01/15+ VMIG-1 3,000,000
985,000 Massachusetts Industrial Finance Agency, Chestnut House Apartments
(FHA Insurance), Variable Rate Demand Bonds, 3.400%, 12/01/06+ A-1+ 985,000
1,000,000 Massachusetts Industrial Finance Agency, Resource Recovery (Ogden
Haverhill), Variable Rate Demand Bonds, 3.400%, 12/01/06+ VMIG-1 1,000,000
1,900,000 Massachusetts Industrial Finance Agency, (WGBH Educational
Foundation Project), Adjustable Rate Revenue Bonds,
3.300%, 10/01/09+ VMIG-1 1,900,000
1,500,000 Massachusetts Industrial Finance Agency, (The Williston Northampton
School), Variable Rate Demand Bonds, 3.200%, 4/01/24+ N/R 1,500,000
1,400,000 Massachusetts Industrial Finance Agency (Showa Women's Institute
Boston, Inc., 1994 Project), Variable Rate Demand Bonds,
3.800%, 3/15/04+ VMIG-1 1,400,000
1,000,000 Massachusetts Industrial Finance Agency (Emerson College Issue),
Series 1995, Variable Rate Demand Bonds, 3.600%, 1/01/15+ N/R 1,000,000
2,500,000 Massachusetts Industrial Finance Agency, Edgewood Retirement
Community Project, Series 1995-C, Variable Rate Demand Bonds,
3.450%, 11/15/25 VMIG-1 2,500,000
1,000,000 Massachusetts Industrial Finance Agency (Lower Mills Associates LP),
Series 1995, Variable Rate Demand Bonds, 3.600%, 12/01/20+ N/R 1,000,000
2,000,000 Massachusetts Industrial Finance Agency, Variable Rate Demand
Revenue Bond (Newbury College), 1996 Series, Variable Rate
Demand Bonds, 3.600%, 6/01/21+ N/R 2,000,000
3,000,000 Massachusetts Water Resources Authority, Series 1994, Commercial
Paper, 3.550%, 10/31/96 A-1+ 3,000,000
1,950,000 Mendon Upton Regional School District Bond Anticipation Notes,
General Obligation Unlimited Tax - Note, 3.430%, 2/28/97 N/R 1,951,202
1,600,000 Merrimac Valley Regional Transit Authority, General Obligation,
Unlimited Tax Revenue, Anticipation Notes, 3.800%, 9/27/96 N/R 1,600,412
900,000 New Bedford Industrial Development Revenue Refunding (Cliftex
Corporation), Series 1989, Variable Rate Demand Bonds,
4.293%, 10/01/97+ N/R 900,000
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND--CONTINUED
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000,000 Peabody Bond Anticipation Notes, General Obligation Unlimited Tax
- Note, 4.150%, 8/15/97 N/R $ 1,002,991
800,000 Shrewbury General Obligation Bonds, Series 1996 - Note,
3.500%, 2/01/97 Aaa 800,812
378,000 West Tisbury General Obligation Bonds, Unlimited Tax - Note,
4.900%, 1/01/97 Aaa 379,230
610,000 Westfield General Obligation Bonds, Series 1995 - Note,
5.800%, 11/15/96 Aaa 612,522
- --------------------------------------------------------------------------------------------------------------------------
$ 69,863,000 Total Investments -- 98.5% 69,887,230
===============-----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.5% 1,083,828
- --------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 70,971,058
==========================================================================================================================
</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.
20
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$1,000,000 Albany County Bond Anticipation Renewal Notes,
Note, 3.500%, 2/19/97 N/R $1,000,428
1,223,387 Babylon Bond Anticipation Notes, 1995, Series A,
Note, 3.850%, 10/30/96 N/R 1,224,197
1,400,000 Chautauqua County General Obligation Tax Anticipation Notes for
1996 Taxes, Notes, 4.000%, 12/20/96 N/R 1,402,871
1,000,000 Duchess County Industrial Development Agency, Industrial
Development Revenue Bonds (Toys "R" Us-NYTEX Inc. Facility),
Series 1984, Variable Rate Demand Bonds, 3.525%, 11/01/19+ A1 1,000,000
1,000,000 Guilderland Industrial Development Agency Industrial Development
Variable Rate Refunding Bonds, Series 1993A (Northeastern Industrial
Park Project), Variable Rate Demand Bonds, 3.400%, 12/01/08+ P-1 1,000,000
1,000,000 Nassau County Industrial Development Agency, Manhasset
Associates Project, Series 1984, Variable Rate Demand Bonds,
3.500%, 12/01/99+ A-1 1,000,000
800,000 New York City Fiscal 94, Series A-10, Variable Rate Demand Bonds,
4.000%, 8/01/16+ VMIG-1 800,000
400,000 New York City Housing Development Corporation (Parkgate Tower),
Variable Rate Demand Bonds, 3.300%, 2/01/07+ P-1 400,000
300,000 New York City Housing Development Corporation (Columbus Gardens
Project), Variable Rate Demand Bonds, 3.400%, 2/01/07+ A-1 300,000
1,000,000 New York City Industrial Development Agency Refunding Revenue
(LaGuardia Associates Project), Variable Rate Demand Bonds,
3.300%, 12/01/15+ A-2 1,000,000
1,300,000 New York City Trust For Cultural Resources, Revenue Bonds Series 1985
(Carnegie Hall), Variable Rate Demand Bonds, 3.300%, 12/01/15+ VMIG-1 1,300,000
1,000,000 New York City Commercial Paper, Series J-3, 3.600%, 10/31/96 A-1+ 1,000,000
1,000,000 New York State Dormitory Authority, Oxford University Press Revenue
Bonds (Letter of Credit Secured), Series 1993, Variable Rate Demand
Bonds, 3.900%, 7/01/23+ VMIG-1 1,000,000
1,400,000 New York State Dormitory Authority Revenue Bonds, Series 1995
(Beverwyck Inc), Variable Rate Demand Bonds, 3.400%, 7/01/25+ VMIG-1 1,400,000
1,400,000 New York State Energy Research and Development Authority, Pollution
Control Revenue (Central Hudson Gas and Electric Corporation),
Variable Rate Demand Bonds, 3.200%, 11/01/20+ A-1+ 1,400,000
2,400,000 New York State Energy Research and Development Authority, Pollution
Control (Niagara Mohawk Power Corporation), Variable Rate Demand
Bonds, 4.250%, 3/01/27+ N/R 2,400,000
1,100,000 New York State Environmental Facilities Corporation (General Electric
Company), Commercial Paper, 3.450%, 11/21/96 A-1+ 1,100,000
1,400,000 New York State Housing Finance Agency (Normandie Court), Variable
Rate Demand Bonds, 3.350%, 5/15/15+ VMIG-1 1,400,000
900,000 New York State Housing Finance Agency, Demand Revenue Bonds,
Series 1984-A (Mt. Sinai School of Medicine), Variable Rate Demand
Bonds, 3.650%, 11/01/14+ VMIG-1 900,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 885,000 New York State Job Development Authority, Series 1984E, Variable
Rate Demand Bonds, 3.700%, 3/01/99+ MIG-1 $ 885,000
1,400,000 New York Local Government Assistance Corporation, Series 1995E,
Variable Rate Demand Bonds, 3.350%, 4/01/25+ VMIG-1 1,400,000
1,300,000 New York State Medical Care Facilities Finance Agency (Lenox Hill
Hospital), Variable Rate Demand Bonds, 3.250%, 11/01/08+ VMIG-1 1,300,000
1,300,000 New York State Medical Care Facilities Finance Agency (Children's
Hospital of Buffalo), Variable Rate Demand Bonds, 3.300%, 11/01/05+ VMIG-1 1,300,000
300,000 New York State Thruway Authority, Variable Rate Demand Bonds,
3.800%, 1/01/24+ VMIG-1 300,000
1,000,000 Puerto Rico Industrial Medical Educational and Environmental
Authority, Ana G. Mendez Educational Foundation, FEAGM Project,
Variable Rate Demand Bonds, 3.550%, 12/01/15+ A-1+ 1,000,000
400,000 Triborough Bridge and Tunnel Authority, Special Obligation, Variable
Rate Demand Bonds, Series 1994 (1994 Resolution),
3.200%, 1/01/24+ MIG-1 400,000
1,300,000 Yonkers Industrial Development Agency, Series 1989, Civic Facility
Revenue Bonds, Variable Rate Demand Bonds, 3.650%, 7/01/19+ VMIG-1 1,300,000
- -------------------------------------------------------------------------------------------------------------------------
$28,908,387 Total Investments -- 99.2% 28,912,496
=============------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.8% 244,733
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $29,157,229
=========================================================================================================================
</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.
22
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in short-term municipal securities,
at amortized cost (note 1) $302,550,385 $202,180,733 $69,887,043 $28,912,496
Cash 833,154 219,039 -- 204,072
Receivables:
Interest 1,448,642 964,477 329,257 169,774
Investments sold 1,202,575 -- 1,000,000 --
Other assets 29,640 15,018 15,606 10,892
------------ ------------ ----------- -----------
Total assets 306,064,396 203,379,267 71,231,906 29,297,234
------------ ------------ ----------- -----------
LIABILITIES
Accrued expenses:
Management fees (note 4) 129,865 69,113 23,899 9,861
Other 207,968 85,202 64,248 56,704
Dividends payable 758,445 521,929 172,701 73,440
------------ ------------ ----------- -----------
Total liabilities 1,096,278 676,244 260,848 140,005
------------ ------------ ----------- -----------
Net assets applicable to shares outstanding (note 3) $304,968,118 $202,703,023 $70,971,058 $29,157,229
============ ============ =========== ===========
Shares outstanding:
Service Plan series -- 66,147,991 38,052,965 388,279
Distribution Plan series -- 68,175,060 28,138,622 28,752,283
Institutional series -- 68,379,972 4,779,471 16,667
------------ ------------ ----------- -----------
Total shares outstanding 304,968,118 202,703,023 70,971,058 29,157,229
============ ============ =========== ===========
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
23
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended August 31, 1996
(Unaudited)
- -------------------------------------------------------------------------------
RESERVES
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $5,716,145
----------
Expenses:
Management fees (note 4) 793,081
12b-1 expense (note 4) 71,812
Shareholders' servicing agent fees and expenses 228,351
Custodian's fees and expenses 57,974
Directors' fees and expenses (note 4) 3,881
Professional fees 21,748
Shareholders' reports-printing and mailing expenses 58,872
Federal and state registration fees 14,945
Other expenses 13,862
----------
Total expenses before expense reimbursement 1,264,526
Expense reimbursement from investment adviser (note 4) (74,883)
----------
Net expenses 1,189,643
----------
Net investment income 4,526,502
Net gain (loss) from investment transactions --
----------
Net increase in net assets from operations $4,526,502
==========
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
24
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
------------------------------------------------------
CALIFORNIA MONEY MARKET
------------------------------------------------------
Service Distribution Institutional
Plan series Plan series Series Total
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $1,155,595 $1,247,860 $738,339 $3,141,794
---------- ---------- -------- -----------
Expenses:
Management fees (note 4) 133,714 144,570 85,960 364,244
12b-1 expense (note 4) 41,118 32,729 - 73,847
Shareholders' servicing agent fees and expenses 1,453 18,698 84 20,235
Custodian's fees and expenses 12,359 13,371 7,696 33,426
Directors' fees and expenses (note 4) 578 627 350 1,555
Professional fees 2,173 2,345 1,412 5,930
Shareholders' reports--printing and mailing expenses 3,288 4,625 1,623 9,536
Federal and state registration fees 5,150 1,067 41 6,258
Other expenses 3,597 3,878 2,065 9,535
---------- ---------- -------- -----------
Total expenses before expense reimbursement 203,430 221,910 99,226 524,566
Expense reimbursement from investment adviser (note 4) (19,560) (23,115) - (42,675)
---------- ---------- -------- -----------
Net expenses 183,870 198,795 99,226 481,891
---------- ---------- -------- -----------
Net investment income 971,725 1,049,065 639,113 2,659,903
Net gain (loss) from investment transactions - - - -
---------- ---------- -------- -----------
Net increase in net assets from operations $ 971,725 $1,049,065 $639,113 $2,659,903
========== ========== ======== ===========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
25
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended August 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS MONEY MARKET
--------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $623,285 $448,592 $74,312 $1,146,189
-------- --------- ------- ----------
Expenses:
Management fees (note 4) 74,326 53,403 8,845 136,574
12b-1 expense (note 4) 26,000 12,816 - 38,816
Shareholders' servicing agent fees and expenses 576 16,363 710 17,649
Custodian's fees and expenses 15,486 11,148 1,840 28,474
Directors' fees and expenses (note 4) 847 611 107 1,565
Professional fees 6,730 4,858 840 12,428
Shareholders' reports--printing and mailing expenses 607 14,917 75 15,599
Federal and state registration fees 2,236 556 430 3,222
Other expenses 1,745 1,265 216 3,226
-------- --------- ------- ----------
Total expenses before expense reimbursement 128,553 115,937 13,063 257,553
Expense reimbursement from investment adviser (note 4) (26,248) (42,610) (895) (69,753)
-------- --------- ------- ----------
Net expenses 102,305 73,327 12,168 187,800
-------- --------- ------- ----------
Net investment income 520,980 375,265 62,144 958,389
Net gain (loss) from investment transactions (283) (221) (43) (547)
-------- --------- ------- ----------
Net increase in net assets from operations $520,697 $375,044 $62,101 $ 957,842
======== ========= ======= ==========
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------
NEW YORK MONEY MARKET
- -------------------------------------------------------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 7,426 $ 504,983 $ 285 $ 512,694
------- --------- ----- ---------
Expenses:
Management fees (note 4) 877 59,466 33 60,376
12b-1 expense (note 4) 58 5,786 - 5,844
Shareholders' servicing agent fees and expenses 850 14,377 12 15,239
Custodian's fees and expenses 346 23,526 13 23,885
Directors' fees and expenses (note 4) 13 876 - 889
Professional fees 146 10,173 6 10,325
Shareholders' reports--printing and mailing expenses 514 20,181 25 20,720
Federal and state registration fees 6 601 - 607
Other expenses 26 1,771 2 1,799
------- --------- ----- ---------
Total expenses before expense reimbursement 2,836 136,757 91 139,684
Expense reimbursement from investment adviser (note 4) (1,630) (54,981) (45) (56,656)
------- --------- ----- ---------
Net expenses 1,206 81,776 46 83,028
------- --------- ----- ---------
Net investment income 6,220 423,207 239 429,666
Net gain (loss) from investment transactions - - - -
------- --------- ----- ---------
Net increase in net assets from operations $ 6,220 $423,207 $239 $429,666
======= ========= ===== =========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
RESERVES
--------------------------------
Six months Year ended
ended 8/31/96 2/29/96
- --------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 4,526,502 $ 10,864,878
Net realized gain (loss) from investment transactions - -
------------- --------------
Net increase in net assets from operations 4,526,502 10,864,878
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (4,526,502) (10,864,878)
------------- --------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 233,757,246 808,776,352
Net asset value of shares issued to shareholders due
to reinvestment of distributions 4,235,747 10,240,006
------------- --------------
237,992,993 819,016,358
Cost of shares redeemed (272,687,339) (830,960,291)
------------- --------------
Net increase (decrease) in net assets derived from
Common share transactions (34,694,346) (11,943,933)
Net assets at the beginning of period 339,662,464 351,606,397
------------- --------------
Net assets at the end of period $ 304,968,118 $ 339,662,464
============= =============
- --------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA MONEY MARKET
--------------------------------------------------------------------
Six months ended August 31, 1996
--------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 971,725 $ 1,049,065 $ 639,113 $ 2,659,903
Net realized gain (loss) from investment transactions -- -- -- --
------------ ------------ ------------ -------------
Net increase in net assets from operations 971,725 1,049,065 639,113 2,659,903
------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (971,725) (1,049,065) (639,113) (2,659,903)
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 55,019,683 42,713,449 93,721,713 191,454,845
Net asset value of shares issued to shareholders due to
reinvestment of distributions 903,001 814,687 10,643 1,728,331
------------ ------------ ------------ -------------
55,922,684 43,528,136 93,732,356 193,183,176
Cost of shares redeemed (60,496,626) (48,373,169) (59,744,589) (168,614,384)
------------ ------------ ------------ -------------
Net increase (decrease) in net assets derived from
Common share transactions (4,573,942) (4,845,033) 33,987,767 24,568,792
Net assets at the beginning of period 70,721,933 73,020,093 34,392,205 178,134,231
------------ ------------ ------------ -------------
Net assets at the end of period $ 66,147,991 $ 68,175,060 $ 68,379,972 $ 202,703,023
============ ============ ============ =============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
29
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA MONEY MARKET
--------------------------------------------------------------------
Year ended February 29, 1996
--------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,933,448 $ 2,282,992 $ 1,255,971 $ 5,472,411
Net realized gain (loss) from investment transactions -- -- -- --
------------- ------------- ------------- -------------
Net increase in net assets from operations 1,933,448 2,282,992 1,255,971 5,472,411
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (1,933,448) (2,282,992) (1,255,971) (5,472,411)
------------- ------------- ------------- -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 137,297,132 130,907,267 212,399,556 480,603,955
Net asset value of shares issued to shareholders due to
reinvestment of distributions 1,633,671 1,762,239 3,093 3,399,003
------------- ------------- ------------- -------------
138,930,803 132,669,506 212,402,649 484,002,958
Cost of shares redeemed (109,980,788) (126,806,592) (228,782,833) (465,570,213)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets derived from
Common share transactions 28,950,015 5,862,914 (16,380,184) 18,432,745
Net assets at the beginning of year 41,771,918 67,157,179 50,772,389 159,701,486
------------- ------------- ------------- -------------
Net assets at the end of year $ 70,721,933 $ 73,020,093 $ 34,392,205 $ 178,134,231
============= ============= ============= =============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
30
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
----------------------------------------------------------
MASSACHUSETTS MONEY MARKET
----------------------------------------------------------
Six months ended August 31, 1996
----------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 520,980 $ 375,265 $ 62,144 $ 958,389
Net realized gain (loss) from investment transactions (283) (221) (43) (547)
------------ ------------ ----------- ------------
Net increase in net assets from operations 520,697 375,044 62,101 957,842
------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (520,697) (375,044) (62,101) (957,842)
------------ ------------ ----------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 29,398,696 12,858,660 8,266,457 50,523,813
Net asset value of shares issued to shareholders due to
reinvestment of distributions 519,327 355,970 17,348 892,645
------------ ------------ ----------- ------------
29,918,023 13,214,630 8,283,805 51,416,458
Cost of shares redeemed (30,115,637) (11,355,250) (7,054,513) (48,525,400)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets derived from
Common share transactions (197,614) 1,859,380 1,229,292 2,891,058
Net assets at the beginning of period 38,250,579 26,279,242 3,550,179 68,080,000
------------ ------------ ----------- ------------
Net assets at the end of period $ 38,052,965 $ 28,138,622 $ 4,779,471 $ 70,971,058
============ ============ =========== ============
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS MONEY MARKET
---------------------------------------------------------------------
Year ended February 29, 1996
---------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 970,086 $ 770,798 $ 106,132 $ 1,847,016
Net realized gain (loss) from investment transactions -- -- -- --
------------ ------------ ------------ -------------
Net increase in net assets from operations 970,086 770,798 106,132 1,847,016
------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (970,086) (770,798) (106,132) (1,847,016)
------------ ------------ ------------ -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 77,847,781 24,524,563 16,474,350 118,846,694
Net asset value of shares issued to shareholders due to
reinvestment of distributions 960,638 758,160 46,176 1,764,974
------------ ------------ ------------ -------------
78,808,419 25,282,723 16,520,526 120,611,668
Cost of shares redeemed (68,289,392) (23,240,661) (14,005,907) (105,535,960)
------------ ------------ ------------ -------------
Net increase (decrease) in net assets derived from
Common share transactions 10,519,027 2,042,062 2,514,619 15,075,708
Net assets at the beginning of year 27,731,552 24,237,180 1,035,560 53,004,292
------------ ------------ ------------ -------------
Net assets at the end of year $ 38,250,579 $ 26,279,242 $ 3,550,179 $ 68,080,000
============ ============ ============ =============
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
NEW YORK MONEY MARKET
---------------------------------------------------------
Six months ended August 31, 1996
---------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 6,220 $ 423,207 $ 239 $ 429,666
Net realized gain (loss) from investment transactions - - - -
--------- ------------ ------- ------------
Net increase in net assets from operations 6,220 423,207 239 429,666
--------- ------------ ------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (6,220) (423,207) (239) (429,666)
--------- ------------ ------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares (74,517) 7,913,378 - 7,838,861
Net asset value of shares issued to shareholders due to
reinvestment of distributions 5,689 403,214 - 408,903
--------- ------------ ------- ------------
(68,828) 8,316,592 - 8,247,764
Cost of shares redeemed (97,352) (11,195,757) - (11,293,109)
--------- ------------ ------- ------------
Net increase (decrease) in net assets derived from
Common share transactions (166,180) (2,879,165) - (3,045,345)
Net assets at the beginning of period 554,459 31,631,448 16,667 32,202,574
--------- ------------ ------- ------------
Net assets at the end of period $ 388,279 $ 28,752,283 $16,667 $ 29,157,229
========= ============ ======= ============
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
NEW YORK MONEY MARKET
--------------------------------------------------------
Year ended February 29, 1996
--------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 16,065 $ 968,690 $ 533 $ 985,288
Net realized gain (loss) from investment transactions - - - -
--------- ------------ ----------- ------------
Net increase in net assets from operations 16,065 968,690 533 985,288
--------- ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (16,065) (968,690) (533) (985,288)
--------- ------------ ----------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 364,272 36,230,907 - 36,595,179
Net asset value of shares issued to shareholders due to
reinvestment of distributions 13,053 942,307 - 955,360
--------- ------------ ----------- ------------
377,325 37,173,214 - 37,550,539
Cost of shares redeemed (462,939) (35,339,438) - (35,802,377)
--------- ------------ ----------- ------------
Net increase (decrease) in net assets derived from
Common share transactions (85,614) 1,833,776 - 1,748,162
Net assets at the beginning of year 640,073 29,797,672 16,667 30,454,412
--------- ------------ ----------- ------------
Net assets at the end of year $ 554,459 $ 31,631,448 $ 16,667 $ 32,202,574
========= ============ =========== ============
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At August 31, 1996, 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) and Nuveen Tax-Free Money Market Fund, Inc. (comprising the Nuveen
Massachusetts and New York Tax-Free Money Market Funds).
The Funds are registered under the Investment Company Act of 1940 as open-end,
diversified management investment companies. Each Fund invests in tax-exempt
money market instruments. Shares of the state Funds are issued in three series:
(1) the "Service Plan" series intended for purchase by or through banks and
other organizations who have agreed to perform certain services for their
customers who are shareholders of this series of the Fund, (2) the "Distribution
Plan" series intended for purchase by or through securities dealers who have
agreed to perform distribution and administrative services for their customers
who are shareholders of this series of the Fund and (3) the "Institutional"
series intended for purchase by trustees, bank trust departments and investment
bankers or advisers who do not perform additional distribution and
administrative services.
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
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 traded and valued at
amortized cost. On a dollar-weighted basis, the average maturity of all such
securities must be 90 days or less (at August 31, 1996, the dollar-weighted
average life was 44 days for Reserves, 24 days for California Money Market, 40
days for Massachusetts Money Market and 22 days for New York Money Market).
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 be settled
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
a month or more after the transaction date. The securities so purchased are
subject to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets in a separate account with a current value at
least equal to the amount of their purchase commitments. At August 31, 1996,
there were no such purchase commitments in any of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
Dividends and Distributions to Shareholders
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 and intends to
comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies by distributing to shareholders all of its 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 and designated
state income taxes for the California, Massachusetts and New York Money Market
Funds, to retain such tax-exempt status when distributed to the shareholders of
the Funds.
Insurance Commitments
The Funds have obtained commitments (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 Bank had occurred, the Fund could cause MBIA to issue a "while-in-fund"
insurance policy covering the underlying bonds; after time and subject to
further terms and conditions, the Fund could obtain from MBIA an "insured-to-
maturity" insurance policy as to the covered bonds. Each type of insurance
policy would insure payment of interest on the bonds and payment of principal at
maturity. Although such insurance would not guarantee the market value of the
bonds or the value of the Funds' shares, the Funds believe that their ability to
obtain insurance for such bonds under such adverse circumstances will enable the
Funds to hold or dispose of such bonds at a price at or near their par value.
36
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including futures, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the future,
they did not make any such investments during the six months ended August 31,
1996.
2. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment securities during the
six months ended August 31, 1996, were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $467,276,586 $ 187,925,130 $ 93,368,373 $ 21,100,880
Sales and Maturities 500,135,000 163,115,000 93,581,679 24,100,000
============ ============== ============== ==============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
At August 31, 1996, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for all
Funds.
3. COMPOSITION OF NET ASSETS
At August 31, 1996, 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>
- ----------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in:
Service Plan series $ - $ 66,147,991 $ 38,052,965 $ 388,279
Distribution Plan series - 68,175,060 28,138,622 28,752,283
Institutional series - 68,379,972 4,779,471 16,667
-------------- -------------- -------------- --------------
Net assets $ 304,968,118 $ 202,703,023 $ 70,971,058 $ 29,157,229
============== ============== ============== ==============
Authorized shares 2,000,000,000 2,350,000,000 2,500,000,000 2,500,000,000
============== ============== ============== ==============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays to the Adviser an annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Management fees
- -------------------------------------------------------------------------
Average daily net asset value RESERVES CA, MA, NY
- -------------------------------------------------------------------------
<S> <C> <C>
For the first $500,000,000 .5 of 1% .4 of 1%
For the next $500,000,000 .475 of 1 .375 of 1
For net assets over $1,000,000,000 .45 of 1 .35 of 1
- -------------------------------------------------------------------------
</TABLE>
Also, pursuant to a distribution agreement with the Funds, Nuveen is the
distributor or principal underwriter of Fund shares and pays sales and promotion
expenses in connection with the offering of Fund shares. The Funds have adopted
a Distribution Plan pursuant to Rule 12b-1 of the Investment Company Act of 1940
and a Service Plan pursuant to which the Distribution Plan series and the
Service Plan series and Nuveen pay, in equal amounts, fees to securities dealers
and service organizations for services rendered in the distribution of shares of
the Funds or the servicing of shareholder accounts. For Reserves, total service
payments to such securities dealers and organizations on an annualized basis
range from .1 of 1% to .2 of 1% of the average daily net asset value of serviced
accounts up to $10 million and .3 of 1% for such assets over $10 million. For
the California, Massachusetts and New York Money Market Funds, total service
payments to such securities dealers and organizations are .25 of 1% per year of
the average daily net asset value of serviced accounts.
The management fee referred to above is reduced by, or the Adviser assumes
certain expenses of each Fund, in an amount necessary to prevent the total
expenses of each Fund (including the management fee and each Fund's share of
service payments under the Distribution and Service Plans, but excluding
interest, taxes, fees incurred in acquiring and disposing of portfolio
securities and, to the extent permitted, extraordinary expenses) in any fiscal
year from exceeding .75 of 1% of the average daily net asset value of Reserves,
and .55 of 1% of the average daily net asset value of the California,
Massachusetts and New York Money Market Funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to their directors who are affiliated with the Adviser or
to their officers, all of
38
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
whom receive remuneration for their services to the Funds from the Adviser.
5. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation and
revenue bonds. At August 31, 1996, the revenue sources by municipal purpose for
these investments, expressed as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------
RESERVES CA MA NY
- -------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Pollution Control Facilities 35% 13% 11% 35%
Health Care Facilities 27 19 18 14
Housing Facilities 6 18 7 7
Educational Facilities 2 - 13 7
Water/Sewer Facilities 2 11 7 -
Lease Rental Facilities - 11 - -
Electric Utilities - 9 10 -
Transportation 1 - 4 1
Other 13 11 1 14
General Obligation Bonds 14 8 29 22
--- --- --- ---
100% 100% 100% 100%
=== === === ===
- -------------------------------------------------------------
</TABLE>
In addition, certain temporary investments in short-term municipal securities
have credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions (93% for Reserves,
95% for California, 86% for Massachusetts and 84% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
39
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
----------------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- ------------------------------------------------------------------------------------------------------------------------
RESERVES
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96 $ 1.000 $ .014+ $ - $ (.014) $ -
Year ended 2/29,
1996 1.000 .032+ - (.032) -
Year ended 2/28,
1995 1.000 .025+ - (.025) -
1994 1.000 .018+ - (.018) -
1993 1.000 .023 - (.023) -
5 months ended
2/29/92 1.000 .015 - (.015) -
Year ended 9/30,
1991 1.000 .046 - (.046) -
1990 1.000 .055 - (.055) -
1989 1.000 .057 - (.057) -
Year ended 2/29,
1988 1.000 .045 - (.045) -
Year ended 2/28,
1987 1.000 .039 - (.039) -
1986 1.000 .045++ - (.045) -
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
40
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-----------------------------------------------------------------------
Ratio of Ratio of net Ratio of
expenses investment income expenses
Net assets to average to average to average
Net asset value Total return on end of period net assets before net assets before net assets after
end of period net asset value (in thousands) reimbursement reimbursement reimbursement+
- ---------------------------------------------------------------------------------------------------------------------------------
RESERVES
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Six months ended $ 1.000 1.44% $ 304,968 .80%* 2.80%* .75%*
8/31/96
Year ended 2/29, 1.000 3.23 339,662 .79 3.18 .75
1996
Year ended 2/28, 1.000 2.46 351,606 .78 2.40 .75
1995 1.000 1.84 404,201 .80 1.78 .75
1994 1.000 2.34 450,746 .74 2.35 .74
1993
5 months ended 1.000 1.45 477,127 .75* 3.48* .75*
2/29/92
Year ended 9/30, 1.000 4.57 451,808 .72 4.56 .72
1991 1.000 5.45 430,206 .73 5.45 .73
1990 1.000 5.70 390,258 .72 5.69 .72
1989
Year ended 2/29, 1.000 4.52 409,653 .73 4.52 .73
1988
Year ended 2/29, 1.000 3.88 361,044 .73 3.85 .73
1987 1.000 4.46 272,677 .80 4.34 .75
1986
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------
Ratios/Supplemental data
- ------------------------------------
Ratio of net
investment income
to average
net assets after
reimbursement+
- ----------------------------------
RESERVES
- ----------------------------------
<S> <C>
Six months ended
8/31/96 2.85%*
Year ended 2/29,
1996 3.22
Year ended 2/28,
1995 2.43
1994 1.83
1993 2.35
5 months ended
2/29/92 3.48*
Year ended 9/30,
1991 4.56
1990 5.45
1989 5.69
Year ended 2/29,
1988 4.52
Year ended 2/29,
1987 3.85
1986 4.39
- ------------------------------------
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- --------------------------------------------------------------------------------------------------------------------
CA**
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 $.015+ $-- $(.015) $--
Distribution Plan series 1.000 .015+ -- (.015) --
Institutional series 1.000 .015 -- (.015) --
Year ended
2/29/96
Service Plan series 1.000 .033+ -- (.033) --
Distribution Plan series 1.000 .033+ -- (.033) --
Institutional series 1.000 .034 -- (.034) --
Year ended
2/28/95
Service Plan series 1.000 .026+ -- (.026) --
Distribution Plan series 1.000 .026+ -- (.026) --
Institutional series 1.000 .027 -- (.027) --
Year ended
2/28/94
Service Plan series 1.000 .019 -- (.019) --
Distribution Plan series 1.000 .019+ -- (.019) --
Institutional series 1.000 .021 -- (.021) --
Year ended
2/28/93
Service Plan series 1.000 .023+ -- (.023) --
Distribution Plan series 1.000 .023+ -- (.023) --
Institutional series 1.000 .024 -- (.024) --
Eight months ended
2/29/92
Service Plan series 1.000 .024+ -- (.024) --
Distribution Plan series 1.000 .024+ -- (.024) --
Institutional series 1.000 .025 -- (.025) --
Year ended
6/30/91
Service Plan series 1.000 .047+ -- (.047) --
Distribution Plan series 1.000 .047+ -- (.047) --
Institutional series 1.000 .048 -- (.048) --
Year ended:
6/30/90++ 1.000 .054+ -- (.054) --
6/30/89++ 1.000 .056+ -- (.056) --
6/30/88++ 1.000 .043+ -- (.043) --
6/30/87++ 1.000 .039+ -- (.039) --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
42
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------
Ratio of Ratio of net
expenses investment income
Net assets to average to average
Net asset value Total return on end of period net assets before net assets before
end of period net asset value (in thousands) reimbursement reimbursement+
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 1.47% $ 66,148 .61%* 2.85%*
Distribution Plan series 1.000 1.47 68,175 .61* 2.84*
Institutional series 1.000 1.51 68,380 .46* 2.98*
Year ended
2/29/96
Service Plan series 1.000 3.32 70,722 .56 3.28
Distribution Plan series 1.000 3.31 73,020 .62 3.23
Institutional series 1.000 3.40 34,392 .46 3.39
Year ended
2/28/95
Service Plan series 1.000 2.59 41,772 .59 2.15
Distribution Plan series 1.000 2.60 67,157 .64 2.47
Institutional series 1.000 2.69 50,772 .47 2.74
Year ended
2/28/94
Service Plan series 1.000 1.94 415,238 .53 1.94
Distribution Plan series 1.000 1.92 72,380 .73 1.74
Institutional series 1.000 2.07 32,299 .41 2.06
Year ended
2/28/93
Service Plan series 1.000 2.28 469,812 .57 2.24
Distribution Plan series 1.000 2.29 80,652 .62 2.19
Institutional series 1.000 2.36 24,156 .47 2.33
Eight months ended
2/29/92
Service Plan series 1.000 2.39 478,886 .56* 3.53*
Distribution Plan series 1.000 2.39 91,670 .61* 3.48*
Institutional series 1.000 2.45 18,334 .45* 3.64*
Year ended
6/30/91
Service Plan series 1.000 4.70 431,590 .57 4.65
Distribution Plan series 1.000 4.70 90,031 .61 4.61
Institutional series 1.000 4.80 22,342 .45 4.77
Year ended:
6/30/90++ 1.000 5.37 452,465 .59 5.34
6/30/89++ 1.000 5.62 362,927 .57 5.68
6/30/88++ 1.000 4.28 207,897 .59 4.27
6/30/87++ 1.000 3.90 284,956 .63 3.85
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
- --------------------------------------------------------------
Ratio of Ratio of net
expenses expenses
to average to average
net assets after net assets after
reimbursement+ reimbursement+
- --------------------------------------------------------------
- --------------------------------------------------------------
<S> <C> <C>
Six months ended
8/31/96
Service Plan series .55%* 2.91%*
Distribution Plan series .55* 2.90*
Institutional series .46* 2.98*
Year ended
2/29/96
Service Plan series .54 3.36
Distribution Plan serie .55 3.30
Institutional series .46 3.39
Year ended
2/28/95
Service Plan series .55 2.19
Distribution Plan series .55 2.56
Institutional series .47 2.74
Year ended
2/28/94
Service Plan series .53 1.94
Distribution Plan series .55 1.92
Institutional series .41 2.06
Year ended
2/28/93
Service Plan series .55 2.26+
Distribution Plan series .55 2.26+
Institutional series .47 2.33
Eight months ended
2/29/92
Service Plan series .55* 3.54*
Distribution Plan series .55* 3.54*
Institutional series .45* 3.64*
Year ended
6/30/91
Service Plan series .55 4.67
Distribution Plan series .55 4.67
Institutional series .45 4.77
Year ended:
6/30/90++ .55 5.38
6/30/89++ .55 5.70
6/30/88++ .55 4.31
6/30/87++ .50 3.92
- --------------------------------------------------------------
</TABLE>
43
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- --------------------------------------------------------------------------------------------------------------------
MA***
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 $.014+ $-- $(.014) $--
Distribution Plan series 1.000 .014+ -- (.014) --
Institutional series 1.000 .014+ -- (.014) --
Year ended
2/29/96
Service Plan series 1.000 .032+ -- (.032) --
Distribution Plan series 1.000 .032+ -- (.032) --
Institutional series 1.000 .032+ -- (.032) --
Year ended
2/28/95
Service Plan series 1.000 .025+ -- (.025) --
Distribution Plan series 1.000 .025+ -- (.025) --
Institutional series 1.000 .026+ -- (.026) --
Year ended
2/28/94
Service Plan series 1.000 .018+ -- (.018) --
Distribution Plan series 1.000 .017+ -- (.017) --
Institutional series 1.000 .018 -- (.018) --
Year ended
2/28/93
Service Plan series 1.000 .023+ -- (.023) --
Distribution Plan series 1.000 .023+ -- (.023) --
Institutional series 1.000 .023+ -- (.023) --
Ten months ended
2/29/92
Service Plan series 1.000 .032+ -- (.032) --
Distribution Plan series 1.000 .032+ -- (.032) --
Institutional series 1.000 .032 -- (.032) --
Year ended
4/30/91
Service Plan series 1.000 .053+ -- (.053) --
Distribution Plan series 1.000 .053+ -- (.053) --
Institutional series 1.000 .053 -- (.053) --
Year ended:
4/30/90++ 1.000 .057+ -- (.057) --
4/30/89++ 1.000 .050+ -- (.050) --
4/30/88++ 1.000 .043+ -- (.043) --
12/10/86 to
4/30/87++ 1.000 .016+ -- (.016) --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
44
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------
Ratio of Ratio of net
expenses investment income
Net assets to average to average
Net asset value Total return on end of period net assets before net assets before
end of period net asset value (in thousands) reimbursement reimbursement
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 1.42% $ 38,053 .69%* 2.66%*
Distribution Plan series 1.000 1.42 28,139 .87* 2.49*
Institutional series 1.000 1.42 4,779 .59* 2.77*
Year ended
2/29/96
Service Plan series 1.000 3.17 38,251 .63 3.06
Distribution Plan series 1.000 3.17 26,279 .84 2.87
Institutional series 1.000 3.18 3,550 .57 3.12
Year ended
2/28/95
Service Plan series 1.000 2.53 27,732 .61 2.49
Distribution Plan series 1.000 2.53 24,237 .82 2.28
Institutional series 1.000 2.61 1,036 .47 2.63
Year ended
2/28/94
Service Plan series 1.000 1.77 38,576 .55 1.88
Distribution Plan series 1.000 1.74 27,773 .76 1.67
Institutional series 1.000 1.80 3,406 .49 1.93
Year ended
2/28/93
Service Plan series 1.000 2.33 40,214 .73 2.16
Distribution Plan series 1.000 2.33 27,993 .82 2.07
Institutional series 1.000 2.34 5,325 .58 2.31
Ten months ended
2/29/92
Service Plan series 1.000 3.22 61,476 .62* 3.73*
Distribution Plan series 1.000 3.22 34,509 .72* 3.63*
Institutional series 1.000 3.24 8,917 .53* 3.82*
Year ended
4/30/91
Service Plan series 1.000 5.30 37,979 .68 5.12
Distribution Plan series 1.000 5.30 33,809 .76 5.04
Institutional series 1.000 5.30 14,973 .54 5.26
Year ended:
4/30/90++ 1.000 5.70 53,631 .74 5.48
4/30/89++ 1.000 5.00 31,319 .76 4.97
4/30/88++ 1.000 4.29 35,614 .75 4.03
12/10/86 to
4/30/87++ 1.000 1.60 12,371 3.02* 1.40
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
- --------------------------------------------------------------
Ratio of Ratio of net
expenses investment income
to average to average
net assets after net assets after
reimbursement+ reimbursement+
- --------------------------------------------------------------
- --------------------------------------------------------------
<S> <C> <C>
Six months ended
8/31/96
Service Plan series .55%* 2.80%*
Distribution Plan series .55* 2.81*
Institutional series .55* 2.81*
Year ended
2/29/96
Service Plan series .55 3.14
Distribution Plan series .55 3.16
Institutional series .54 3.15
Year ended
2/28/95
Service Plan series .55 2.55
Distribution Plan series .55 2.55
Institutional series .47 2.63
Year ended
2/28/94
Service Plan series .52 1.91
Distribution Plan series .55 1.88
Institutional series .49 1.93
Year ended
2/28/93
Service Plan series .55 2.34
Distribution Plan series .55 2.34
Institutional series .55 2.34
Ten months ended
2/29/92
Service Plan series .55* 3.80*
Distribution Plan series .55* 3.80*
Institutional series .53* 3.82*
Year ended
4/30/91
Service Plan series .55 5.25
Distribution Plan series .55 5.25
Institutional series .54 5.26
Year ended:
4/30/90++ .55 5.67
4/30/89++ .55 5.18
4/30/88++ .48 4.30
12/10/86 to
4/30/87++ .06 4.36*
- --------------------------------------------------------------
</TABLE>
45
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- ------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- ------------------------------------------------------------------------------------------------------------------
NY***
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 $.014+ $ -- $(.014) $ --
Distribution Plan series 1.000 .014+ -- (.014) --
Institutional series 1.000 .014+ -- (.014) --
Year ended
2/29/96
Service Plan series 1.000 .032+ -- (.032) --
Distribution Plan series 1.000 .032+ -- (.032) --
Institutional series 1.000 .032+ -- (.032) --
Year ended
2/28/95
Service Plan series 1.000 .024+ -- (.024) --
Distribution Plan series 1.000 .024+ -- (.024) --
Institutional series 1.000 .023+ -- (.023) --
Year ended
2/28/94
Service Plan series 1.000 .015+ -- (.015) --
Distribution Plan series 1.000 .015+ -- (.015) --
Institutional series 1.000 .015+ -- (.015) --
Year ended
2/28/93
Service Plan series 1.000 .020+ -- (.020) --
Distribution Plan series 1.000 .020+ -- (.020) --
Institutional series 1.000 .020+ -- (.020) --
10 months ended
2/29/92
Service Plan series 1.000 .029+ -- (.029) --
Distribution Plan series 1.000 .029+ -- (.029) --
Institutional series 1.000 .030+ -- (.030) --
Year ended
4/30/91
Service Plan series 1.000 .047+ -- (.047) --
Distribution Plan series 1.000 .047+ -- (.047) --
Institutional series 1.000 .047+ -- (.047) --
Year ended:
4/30/90++ 1.000 .054+ -- (.054) --
4/30/89++ 1.000 .050+ -- (.050) --
4/30/88++ 1.000 .041+ -- (.041) --
12/10/86 to
4/30/87++ 1.000 .015+ -- (.015) --
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Effective for the fiscal year ended June 30, 1991, and thereafter, the Fund
has presented the above per share data by series.
*** Effective for the fiscal year ended April 30, 1991, and thereafter, the
Fund has presented the above per share data by series.
+ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser, if applicable (note 4).
++ Represents combined per share data and ratios for the Service Plan series,
Distribution Plan series and Institutional series.
46
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------
Ratio of Ratio of net
expenses investment income
Net assets to average to average
Net asset value Total return on end of period net assets before net assets before
end of period net asset value (in thousands) reimbursement reimbursement
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 1.44% $ 338 1.30%* 2.10%*
Distribution Plan series 1.000 1.44 28,752 .92* 2.48*
Institutional series 1.000 1.44 17 1.08* 2.31*
Year ended
2/29/96
Service Plan series 1.000 3.20 554 1.92 1.82
Distribution Plan series 1.000 3.20 31,631 .94 2.80
Institutional series 1.000 3.20 17 1.38 2.37
Year ended
2/28/95
Service Plan series 1.000 2.36 640 .95 1.98
Distribution Plan series 1.000 2.37 29,798 .79 2.14
Institutional series 1.000 2.28 17 2.14 .79
Year ended
2/28/94
Service Plan series 1.000 1.51 557 1.49 .69
Distribution Plan series 1.000 1.51 27,886 .78 1.40
Institutional series 1.000 2.51 17 4.60 (2.48)
Year ended
2/28/93
Service Plan series 1.000 2.02 529 1.17 1.42
Distribution Plan series 1.000 2.02 34,827 .78 1.81
Institutional series 1.000 2.02 17 19.33 (16.59)
10 months ended
2/29/92
Service Plan series 1.000 2.94 1,934 .87* 3.19*
Distribution Plan series 1.000 2.94 45,259 .71* 3.35*
Institutional series 1.000 2.94 17 11.89* (7.83)*
Year ended
4/30/91
Service Plan series 1.000 4.73 1,653 .88 4.39
Distribution Plan series 1.000 4.73 41,446 .69 4.58
Institutional series 1.000 4.73 17 .62 4.65
Year ended:
4/30/90++ 1.000 5.36 41,602 .71 5.18
4/30/89++ 1.000 4.95 30,262 .86 4.74
4/30/88++ 1.000 4.10 17,016 1.03 3.54
12/10/86 to
4/30/87++ 1.000 1.50 4,134 4.20 .05*
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
- --------------------------------------------------------------
Ratio of Ratio of net
expenses investment income
to average to average
net assets after net assets after
reimbursement+ reimbursement+
- --------------------------------------------------------------
- --------------------------------------------------------------
<S> <C> <C>
Six months ended
8/31/96
Service Plan series .55%* 2.85%*
Distribution Plan series .55* 2.85*
Institutional series .55* 2.84*
Year ended
2/29/96
Service Plan series .55 3.19
Distribution Plan series .55 3.19
Institutional series .55 3.20
Year ended
2/28/95
Service Plan series .55 2.38
Distribution Plan series .55 2.38
Institutional series .55 2.38
Year ended
2/28/94
Service Plan series .55 1.63
Distribution Plan series .55 1.63
Institutional series .55 1.63
Year ended
2/28/93
Service Plan series .55 2.04
Distribution Plan series .55 2.04
Institutional series .55 2.19
Eight months ended
2/29/92
Service Plan series .55* 3.51*
Distribution Plan series .55* 3.51*
Institutional series .55* 3.51*
Year ended
4/30/91
Service Plan series .55 4.72
Distribution Plan series .55 4.72
Institutional series .55 4.72
Year ended:
4/30/90++ .55 5.34
4/30/89++ .55 5.05
4/30/88++ .50 4.07
12/10/86 to
6/30/87++ .05* 4.20*
- --------------------------------------------------------------
</TABLE>
47
<PAGE>
Your
investment
partners
Since 1898, John Nuveen & Co.
[PHOTO APPEARS HERE] Incorporated has worked to bring
together the various participants in the
municipal bond industry and build strong
partnerships that benefit all concerned.
Investors, financial advisers, municipal
officials, investment bankers--Nuveen
believes that forging relationships
within these groups based on trust and
value is the key to successful
investing.
As the oldest and largest municipal
bond specialist in the United States,
Nuveen's investment bankers work with
issuers to understand and meet their
needs in structuring and selling their
bond issues.
For nearly 100 years, Nuveen also works closely with
Nuveen has earned its financial advisers around the country,
reputation as a tax-free income including brokerage firms, banks,
specialist by focusing on insurance companies, and independent
municipal bonds financial planners, to bring the
benefits of tax-free investing to you.
These advisers are experts at
identifying your needs and recommending
the best solutions for your situation.
Together we make a powerful team,
helping you create a successful
investment plan that meets your needs
today and in the future.
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John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
MSA-3-8.96
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