<PAGE>
Nuveen Tax-Free [PHOTO APPEARS HERE]
Mutual Funds
Dependable tax-free
income for generations
CALIFORNIA
CALIFORNIA INSURED
MASSACHUSETTS
MASSACHUSETTS INSURED
NEW YORK
NEW YORK INSURED
OHIO
ANNUAL REPORT/FEBRUARY 29, 1996
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
16 Report of independent public accountants
17 Portfolio of investments
58 Statement of net assets
60 Statement of operations
62 Statement of changes in net assets
66 Notes to financial statements
82 Financial highlights
<PAGE>
Dear
shareholder
Since the beginning of the recovery in early 1995, we've enjoyed a welcome
rebound in the bond markets--a sharp contrast to 1994, which was one of the most
volatile periods in bond market history. In fact, 1995 unfolded as one of the
best years for bonds in a decade, as the bond market responded to a climate of
slowing economic growth and diminished inflationary pressure.
The changing profile of the bond markets over the past two years reminds us
that weathering the ups and downs of the markets is a normal part of the
investment process. By maintaining a long-term perspective on your investments,
you can minimize the impact of short-term fluctuations and keep the focus on
achieving your goals. Municipal bond funds continue to play an integral role in
helping investors reach those goals, offering the attractive tax-free income and
solid total returns that they seek.
Over the past year, we have kept our sights focused on successfully meeting
your fund's objectives. As of February 29, 1996, the current annual SEC yield on
offering price for R shares for the mutual funds covered in this report ranged
from 4.21% to 4.99%. To match these yields, an investor in the 36% federal
income tax bracket would have had to earn between 6.58% to 7.80% on taxable
alternatives. The effect of state taxes further enhances the after-tax yield
advantage provided by municipal bonds.
[PHOTO OF RICHARD J. FRANKE APPEARS HERE]
"Over time,
municipal bonds
have proven to
be a valuable
and dependable
component of
successful invest-
ment programs."
3
<PAGE>
Reflecting the rebound in the bond markets, each of these funds reported gains
in portfolio value since February 28, 1995. The 12-month total returns on net
asset value for R Shares, reflecting portfolio gains plus reinvested dividend
income and capital gains distributions, if any, ranged from 9.70% to 10.80%,
which translate to 13.66% to 14.81% on a taxable-equivalent basis. This strong
performance rewarded investors who weathered the volatility of 1994, and reminds
us again of the importance of municipal bonds to a well-rounded, long-term
investment plan.
As some of you may know, on June 30, 1996, I will be retiring as the Chairman
and Chief Executive Officer of John Nuveen & Co. Incorporated and as Chairman of
the Board of the Nuveen Funds. As I look back over the 41 years I have spent at
Nuveen, I'm proud to have been associated with a firm that holds integrity,
honesty, and value as the cornerstones of its business. I'm confident that these
traditions will continue to be the hallmarks of Nuveen.
Over the past few years, I have been working closely with other Nuveen
managers to ensure that the company and the funds continue to be guided by
strong and talented management following my retirement. Timothy Schwertfeger,
who has been with Nuveen since 1977, will succeed me as Chief Executive Officer
and Chairman of Nuveen. He currently serves as Executive Vice President of
Nuveen and President of the Nuveen Funds. I am very confident in his abilities
and the abilities of the entire Nuveen management team.
The management transition has been well planned, and it will have no effect on
portfolio management or the way dividends are set. Our management team is
committed to continuing Nuveen's successful tradition of value investing and
prudent management, helping our shareholders meet their need for tax-free
investment income with a full range of investment choices.
Our focus will continue to be on building shareholder value, providing
research-oriented management, and maintaining our leadership role in the
municipal bond market. With this focus, we anticipate many more years of
accomplishment for our shareholders and our firm.
I'd like to take this occasion to thank you for selecting Nuveen mutual fund
investments.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
April 15, 1996
4
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, discusses factors
affecting the municipal market and efforts made to provide value for
shareholders.
How did the investment climate over the past year affect municipal bonds?
In 1995, the combination of slow economic growth and low inflation created the
ideal environment for the bond markets, which responded with a sustained rally.
Citing the lack of significant inflation, the Federal Reserve Board moved to cut
interest rates in July and December 1995, and again at the end of January 1996.
This succession of rate cuts helped to bring down long-term municipal bond
yields by almost 130 basis points over the year and to increase net asset
values. The rebound of the municipal bond market was not as great as that of the
taxable market due to the much-publicized discussion of major tax reform
legislation and concern about its potential impact on tax-free investments. Yet,
in 1995, most Nuveen mutual funds enjoyed taxable-equivalent total returns of
14% or better.
5
<PAGE>
[PHOTO OF TOM SPALDING APPEARS HERE]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
What was Nuveen's approach to investing during this period?
During 1995, we continued to pursue our philosophy of value investing, a
disciplined approach designed to deliver above-market performance by emphasizing
securities that offer good intrinsic value and that are underpriced or
undervalued by the market. This approach has been rewarded over the past year,
as we saw many of our portfolio holdings upgraded by the ratings agencies,
confirming our Research Department's judgments about credit quality. We also
moved to protect current income by investing more of our portfolio in non-
callable bonds when possible. These bonds are less likely to be redeemed before
maturity so that their yield is assured for the long term in the event of
falling interest rates. As is our policy, we continue to invest only in
investment-grade quality securities.
Has Nuveen made any major investment changes over the past year?
No. In the search for income and total return, our value investing approach
continues to concentrate on individual bonds with current yields, prices, credit
quality, and future prospects that are exceptionally attractive relative to
other bonds in the market. Because attractive issues may appear any time over
the course of the year, we are constantly vigilant for new opportunities, with
the goal of ensuring that the funds are always positioned to meet their
objectives: as high a level of current tax-free income as is consistent with
preservation of capital. This means that our analysts continuously assess
investment
6
<PAGE>
possibilities across the entire spectrum of geographical and sector
opportunities nationwide. Currently, we favor revenue bonds for essential
services, such as those issued by water and sewer facilities and utilities,
especially public power authorities providing electricity at competitive rates.
We have reduced our positions in general obligation bonds issued by counties and
cities, which have suffered financial strains as the result of spending cuts at
the state and federal levels.
What does Nuveen see as the impact of the flat tax proposals on the municipal
market?
Because of the implications for tax-free investments such as municipal bonds and
bond funds, we have been closely monitoring the various flat tax proposals
currently being debated in Congress. While the presidential primaries
spotlighted the debate, it is important to note that none of the proposals
currently under discussion has gained a strong consensus. In addition,
implementation of any measure that manages to pass both houses is at least two
years away. As the election year progresses, focus seems to be shifting from tax
reform to other economic matters. However, the high profile discussion--and the
attendant concern about the potential impact of tax reform on tax-free
investments--did affect the market for municipal bonds in 1995, causing these
bonds to underperform their taxable counterparts for the year.
7
<PAGE>
Given the low likelihood that the tax preference on municipal bonds will be
eliminated or dramatically reduced in the near future, Nuveen believes that it
is inadvisable to manage our funds toward one specific outcome. Instead, we will
continue to follow our value investing philosophy as the optimal way to pursue
our investors' objectives. In our view, this approach offers investors greater
price stability in the event of volatile markets. Once the tax issue is
resolved, we're confident that municipal bonds--because of their high credit
quality and attractive yields--will continue to hold a strategic place in the
prudent investor's portfolio. We will continue to monitor developments in the
tax debate as well as changes in other economic and political conditions while
keeping our focus on achieving the objectives of your fund.
What is Nuveen's market outlook for 1996?
Although inflation currently remains low and economic growth remains moderate,
we continue to watch these factors for potential changes and impact on the bond
market. During this election year, we are also closely monitoring any changes in
economic and tax policy that may affect the municipal market. The fundamentals
in the long term are sound, with the supply of municipal bonds down from past
years, and with a growing number of individual investors seeking to diversify
their portfolios and to increase their tax-free income.
8
<PAGE>
NUVEEN CALIFORNIA
TAX-FREE VALUE FUND
California
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen California Tax-
Free Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 6/86 6/87 6/88 6/89 6/90 6/91 6/92 6/93 6/94 6/95 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $21,255 10,000 10,838 11,590 12,849 13,663 14,826 16,500 18,393 18,357 19,898 21,255
Lehman Brothers Municipal Bond
Index-Total $22,127 10,000 10,862 11,668 12,996 13,881 15,131 16,913 18,935 18,968 20,641 22,127
Nuveen CA Tax-Free Value
Fund-Total $19,538 9,525 9,838 10,513 11,998 12,735 13,775 15,317 17,049 16,801 18,155 19,538
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------
1 year 5 years Since inception+
- --------------------------------------------------------------------
<S> <C> <C> <C>
R Shares on NAV 10.54% 7.77% 7.72%
A Shares on NAV 10.36% N/A 8.69%
A Shares on offering price** 5.39% N/A 5.36%
C Shares on NAV 9.53% N/A 9.17%
- --------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.65 cents per share for Class R Shares
translated into a distribution yield of 5.26% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 42%
combined state and federal income tax bracket would have to earn 9.07% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.99% on February 29, 1996, translated
into 8.60% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 4.64% from a year ago. The average annual total return on NAV for
this class was 10.54%, which translated into a taxable-equivalent total return
of 14.73%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued at
different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
9
<PAGE>
NUVEEN CALIFORNIA INSURED
TAX-FREE VALUE FUND
California Insured
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen California
Insured Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 6/86 6/87 6/88 6/89 6/90 6/91 6/92 6/93 6/94 6/95 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $21,255 10,000 10,838 11,590 12,849 13,663 14,826 16,500 18,393 18,357 19,898 21,255
Lehman Brothers Municipal Bond
Index-Total $22,127 10,000 10,862 11,668 12,996 13,881 15,131 16,913 18,935 18,968 20,641 22,127
Nuveen CA Insured Tax-Free Value
Fund-Total $19,313 9,525 9,513 10,220 11,648 12,223 13,252 14,929 16,752 16,501 17,911 19,313
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------
1 year 5 years Since inception+
- --------------------------------------------------------------------
<S> <C> <C> <C>
R Shares on NAV 10.63% 8.20% 7.59%
A Shares on NAV 10.32% N/A 9.24%
A Shares on offering price** 5.35% N/A 5.89%
C Shares on NAV 9.67% N/A 8.99%
- --------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.60 cents per share for Class R Shares
translated into a distribution yield of 5.14% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 42%
combined state and federal income tax bracket would have to earn 8.86% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.93% on February 29, 1996, translated
into 8.50% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 4.99% from a year ago. The average annual total return on NAV for
this class was 10.63%, which translated into a taxable-equivalent total return
of 14.64%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued at
different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
10
<PAGE>
NUVEEN MASSACHUSETTS
TAX-FREE VALUE FUND
Massachusetts
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen Massachusetts
Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 11/86 11/87 11/88 11/89 11/90 11/91 11/92 11/93 11/94 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $19,316 10,000 9,973 10,980 12,127 12,997 14,247 15,587 17,219 16,236 19,316
Lehman Brothers Municipal Bond
Index-Total $20,239 10,000 9,977 11,036 12,251 13,194 14,549 16,008 17,781 16,847 20,239
Nuveen MA Tax-Free Value
Fund-Total $17,466 9,525 8,745 9,756 10,793 11,355 12,626 13,969 15,603 14,627 17,466
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------
1 year 5 years Since inception+
- --------------------------------------------------------------------
<S> <C> <C> <C>
R Shares on NAV 9.80% 8.32% 6.82%
A Shares on NAV 9.62% N/A 8.57%
A Shares on offering price** 4.69% N/A 5.25%
C Shares on NAV 8.87% N/A 9.91%
- --------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.50 cents per share for Class R Shares
translated into a distribution yield of 5.45% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 43.5%
combined state and federal income tax bracket would have to earn 9.65% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.61% on February 29, 1996, translated
into 8.16% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 3.88% from a year ago. The average annual total return on NAV for
this class was 9.80%, which translated into a taxable-equivalent total return of
14.31%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued at
different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
11
<PAGE>
NUVEEN MASSACHUSETTS INSURED
TAX-FREE VALUE FUND
Massachusetts Insured
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen Massachusetts
Insured Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 11/86 11/87 11/88 11/89 11/90 11/91 11/92 11/93 11/94 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $19,316 10,000 9,973 10,980 12,127 12,997 14,247 15,587 17,219 16,236 19,316
Lehman Brothers Municipal Bond
Index-Total $20,239 10,000 9,977 11,036 12,251 13,194 14,549 16,008 17,781 16,847 20,239
Nuveen MA Insured Tax-Free Value
Fund-Total $17,911 9,525 8,940 10,086 11,109 11,793 12,976 14,284 15,940 14,959 17,911
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------
1 year 5 years Since inception+
- --------------------------------------------------------------------
<S> <C> <C> <C>
R Shares on NAV 9.99% 8.08% 7.11%
A Shares on NAV 9.59% N/A 8.51%
A Shares on offering price** 4.65% N/A 5.19%
C Shares on NAV 8.80% N/A 8.49%
- --------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.50 cents per share for Class R Shares
translated into a distribution yield of 5.14% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 43.5%
combined state and federal income tax bracket would have to earn 9.10% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.21% on February 29, 1996, translated
into 7.45% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 4.37% from a year ago. The average annual total return on NAV for
this class was 9.99%, which translated into a taxable-equivalent total return of
14.24%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued at
different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
12
<PAGE>
NUVEEN NEW YORK
TAX-FREE VALUE FUND
New York
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen New York Tax-
Free Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 11/86 11/87 11/88 11/89 11/90 11/91 11/92 11/93 11/94 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $19,581 10,000 9,972 10,985 12,143 13,027 14,309 15,687 17,362 16,400 19,581
Lehman Brothers Municipal Bond
Index-Total $20,239 10,000 9,977 11,036 12,251 13,194 14,549 16,008 17,781 16,847 20,239
Nuveen NY Tax-Free Value
Fund-Total $19,096 9,525 9,293 10,427 11,609 12,181 13,617 15,070 16,944 15,747 19,096
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------
1 year 5 years Since inception+
- --------------------------------------------------------------------
<S> <C> <C> <C>
R Shares on NAV 10.80% 8.97% 7.86%
A Shares on NAV 10.52% N/A 8.58%
A Shares on offering price** 5.55% N/A 5.25%
C Shares on NAV 10.13% N/A 8.86%
- --------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.85 cents per share for Class R Shares
translated into a distribution yield of 5.47% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 40.5%
combined state and federal income tax bracket would have to earn 9.19% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.75% on February 29, 1996, translated
into 7.98% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 4.83% from a year ago. The average annual total return on NAV for
this class was 10.80%, which translated into a taxable-equivalent total return
of 14.81%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued at
different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
13
<PAGE>
NUVEEN NEW YORK INSURED
TAX-FREE VALUE FUND
New York Insured
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen New York Insured
Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 11/86 11/87 11/88 11/89 11/90 11/91 11/92 11/93 11/94 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $19,581 10,000 9,972 10,985 12,143 13,028 14,311 15,689 17,367 16,405 19,590
Lehman Brothers Municipal Bond
Index-Total $20,239 10,000 9,977 11,036 12,251 13,194 14,549 16,008 17,781 16,847 20,239
Nuveen NY Insured Tax-Free Value
Fund-Total $18,516 9,525 9,025 10,152 11,263 11,888 13,254 14,634 16,468 15,284 18,516
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------------
1 year 5 years Since inception+
- --------------------------------------------------------------------
<S> <C> <C> <C>
R Shares 10.51% 8.70% 7.50%
A Shares 10.19% N/A 8.93%
A Shares on offering price** 5.23% N/A 5.59%
C Shares 9.71% N/A 9.10%
- --------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.60 cents per share for Class R Shares
translated into a distribution yield of 5.20% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 40.5%
combined state and federal income tax bracket would have to earn 8.74% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.39% on February 29, 1996, translated
into 7.38% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 4.53% from a year ago. The average annual total return on NAV for
this class was 10.51%, which translated into a taxable-equivalent total return
of 14.32%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued on or after
September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
14
<PAGE>
NUVEEN OHIO
TAX-FREE VALUE FUND
Ohio
INDEX COMPARISON
Comparison of change in value of a $10,000 investment in Nuveen Ohio Tax-Free
Value Fund R Shares* and Lehman Brothers Municipal Bond Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
In thousands 11/86 11/87 11/88 11/89 11/90 11/91 11/92 11/93 11/94 2/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Tax-Adjusted Lehman Brothers
Municipal Bond Index (reduced
by state tax effects)-Total $19,751 10,000 9,974 11,002 12,176 13,076 14,376 15,774 17,475 16,518 19,751
Lehman Brothers Municipal Bond
Index-Total $20,239 10,000 9,977 11,036 12,251 13,194 14,549 16,008 17,781 16,847 20,239
Nuveen OH Tax-Free Value
Fund-Total $18,992 9,525 9,135 10,281 11,615 12,411 13,632 15,035 16,923 15,861 18,992
Past performance is not predictive of future performance
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -------------------------------------------------------------------
1 year 5 years Since inception+
- -------------------------------------------------------------------
<S> <C> <C> <C>
R Shares on NAV 9.70% 8.34% 7.80%
A Shares on NAV 9.44% N/A 8.86%
A Shares on offering price** 4.51% N/A 5.53%
C Shares on NAV 8.55% N/A 8.41%
- -------------------------------------------------------------------
</TABLE>
The fund's current dividend of 4.70 cents per share for Class R Shares
translated into a distribution yield of 5.33% as of February 29, 1996. The
annual distribution yield is calculated by multiplying the dividend by 12, and
dividing this number by the current offering price. Investors in the 41%
combined state and federal income tax bracket would have to earn 9.03% on a
taxable investment to match this tax-free yield.
The fund's Class R Share SEC yield of 4.51% on February 29, 1996, translated
into 7.64% on a taxable-equivalent basis.
During the fiscal year, your fund's net asset value (for Class R Shares)
increased by 3.93% from a year ago. The average annual total return on NAV for
this class was 9.70%, which translated into a taxable-equivalent total return of
13.66%.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; Class A Shares and Class C Shares were first issued at
different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the chart reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
15
<PAGE>
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Nuveen California Tax-Free Fund, Inc.
Nuveen Tax-Free Bond Fund, Inc.
Nuveen Insured Tax-Free Bond Fund, Inc.
We have audited the accompanying statements of net assets of NUVEEN CALIFORNIA
TAX-FREE FUND, INC. (comprising the Nuveen California and California Insured
Tax-Free Value Funds) (a Maryland corporation), 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) (both Minnesota corporations),
including the portfolios of investments, as of February 29, 1996, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and the
financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 29, 1996, by correspondence with the custodian and brokers. As to
securities purchased but not received, we requested confirmation from brokers
and, when replies were not received, we carried out other alternative auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of each of the
respective funds constituting the Nuveen California Tax-Free Fund, Inc., Nuveen
Tax-Free Bond Fund, Inc. and Nuveen Insured Tax-Free Bond Fund, Inc., as of
February 29, 1996, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for the periods indicated thereon in conformity
with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois
April 8, 1996
16
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN CALIFORNIA TAX-FREE VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,150,000 California Educational Facilities Authority
(University of Southern California),
7.200%, 10/01/15 10/97 at 102 Aa $ 3,350,340
California Health Facilities Financing Authority
(Small Facilities Pooled Loan Program):
3,000,000 7.400%, 4/01/14 4/05 at 102 A 3,408,600
3,635,000 7.500%, 4/01/22 4/05 at 102 A 4,155,641
1,700,000 California Health Facilities Authority (Sutter Health
System), 7.00%, 1/01/09 1/99 at 102 A1 1,829,846
2,000,000 California Health Facilities Financing Authority
(Health Dimensions, Inc.), 7.500%, 5/01/15
(Pre-refunded to 5/01/00) 5/00 at 102 Ba 2,291,120
2,000,000 California Health Facilities Financing Authority
(Sisters of Providence), 7.500%, 10/01/10 10/00 at 102 AA- 2,308,540
3,380,000 California Health Facilities Financing Authority
(Kaiser Permanente), 7.000%, 12/01/10 12/00 at 102 Aa3 3,764,036
2,425,000 California Housing Finance Agency, Home
Mortgage, 8.100%, 8/01/16 8/96 at 102 Aa 2,504,104
4,000,000 California Housing Finance Agency,
5.900%, 8/01/17 2/06 at 102 Aaa 4,023,600
California Public Works Board (California State
University Project),
8,470,000 6.700% 10/01/17 10/02 at 102 A 9,278,970
5,000,000 5.500%, 12/01/18 12/03 at 102 A 4,790,000
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 No Opt. Call A1 1,143,062
2,250,000 California State Public Works Board (Department of
Corrections-State Prisons-Susanville),
5.375%, 6/01/18 6/02 at 102 A1 2,140,538
2,500,000 California Statewide Communities Development
Corporation (Solheim Lutheran Home),
Certificates of Participation, 6.500%, 11/01/17 11/04 at 102 A 2,598,200
3,000,000 California Statewide Communities Development
Authority (St. Joseph Health System),
Certificates of Participation, 6.500%, 7/01/15 7/04 at 102 Aa 3,237,570
1,500,000 ABAG Finance Authority for Nonprofit
Corporations (Channing House), Certificates of
Participation, 7.125%, 1/01/21 1/01 at 102 A 1,626,915
2,035,000 Bella Vista Water District, Certificates of
Participation, 7.375%, 10/01/17 10/01 at 102 Baa 2,168,801
7,000,000 Brea Redevelopment Agency, Tax Allocation,
5.500%, 8/01/17 8/03 at 102 Aaa 6,865,880
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Carson Redevelopment Agency Tax Allocation:
$ 1,000,000 6.000%, 10/01/13 10/03 at 102 Baa $ 999,400
2,000,000 6.000%, 10/01/16 10/03 at 102 Baa1 1,961,680
2,000,000 Chico Redevelopment Agency, Certificates of
Participation (Sierra Sunrise Lodge),
6.750%, 2/01/21 2/01 at 102 A 2,098,240
6,500,000 Contra Costa County, FHA Insured Mortgage (Cedar
Pointe Apartments), 6.150%, 9/01/25 9/03 at 103 AAA 6,600,425
2,000,000 Desert Hospital District, Certificates of Participation,
8.100%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 AAA 2,347,540
3,200,000 Desert Sands Unified School District Certificates of
Participation, 5.750%, 3/01/20 3/05 at 102 Aaa 3,232,480
East Bay Municipal Utility District, Water System:
1,950,000 7.500%, 6/01/18 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 2,238,308
4,000,000 6.375%, 6/01/21 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 4,501,200
2,500,000 Fontana Public Financing Authority, Tax Allocation
(North Fontana Redevelopment Project),
7.250%, 9/01/20 9/00 at 102 A 2,694,600
3,000,000 Fresno Health Facilities, Refunding Bonds (Holy
Cross Health Systems Corporation),
5.625%, 12/01/15 12/03 at 102 Aaa 2,978,490
2,475,000 Loma Linda University Medical Center,
6.000%, 12/01/06 12/03 at 102 BBB 2,553,086
5,000,000 Los Angeles Community Redevelopment Agency,
Multi-Family Housing (Angelus Plaza),
7.400%, 6/15/10 6/05 at 105 AAA 5,586,850
3,505,000 Los Angeles Harbor, 7.600%, 10/01/18 10/98 at 102 AAA 3,930,157
255,000 Los Angeles Home Mortgage (GNMA),
8.100%, 5/01/17 No Opt. Call Aaa 273,472
2,400,000 Los Angeles State Building Authority,
7.500%, 3/01/11 (Pre-refunded to 3/01/98) 3/98 at 102 AAA 2,621,184
4,595,000 Los Angeles County Public Works Finance Authority
(Los Angeles County Regional Park and Open
Space), 6.125%, 10/01/10 10/04 at 102 Aa 4,895,099
195,000 Los Angeles County, Single Family Mortgage,
(GNMA), 8.000%, 3/01/17 No Opt. Call Aaa 208,001
2,000,000 Los Angeles County Transportation Commission,
Sales Tax, 7.400%, 7/01/15 7/99 at 102 AA- 2,221,160
Los Angeles County Transportation Commission:
2,300,000 6.250%, 7/01/13 7/02 at 102 Aaa 2,449,523
4,445,000 6.000%, 7/01/23 7/02 at 102 Aaa 4,614,221
1,260,000 Marysville Community Development Agency,
Tax Allocation, 7.250%, 3/01/21 3/02 at 102 Baa 1,352,484
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 740,000 Menlo Park Community Development Agency,
FHA Insured, Multi-Family Housing,
8.250%, 12/01/28 6/97 at 103 Aa $ 784,444
875,000 Monterey Hospital Revenue, 7.375%, 7/01/14 7/96 at 102 A+ 901,556
2,165,000 Napa County, Certificates of Participation,
5.250%, 5/15/13 5/03 at 102 A1 2,059,998
1,500,000 North City West School Facilities Authority,
Community Facilities District No. 1,
7.850%, 9/01/19 (Pre-refunded to 9/01/99) 9/99 at 102 N/R 1,715,385
2,950,000 Northern California Power Agency,
7.150%, 7/01/24 7/98 at 102 A 3,182,726
Northridge Water District, Certificates of
Participation:
1,780,000 5.250%, 2/01/14 2/06 at 102 Aaa 1,709,031
1,105,000 5.250%, 2/01/18 2/06 at 102 Aaa 1,051,783
2,120,000 Ontario Assessment District No. 100C,
Limited Obligation, 8.000%, 9/02/11 3/96 at 103 N/R 2,197,783
3,270,000 Palmdale Elementary School District,
5.400%, 8/01/25 8/05 at 102 Aaa 3,182,953
2,920,000 Rancho Mirage Redevelopment Agency, Tax
Allocation, 5.500%, 4/01/29 4/04 at 102 A 2,658,514
1,450,000 Redding Joint Powers Financing Authority,
6.250%, 6/01/23 6/03 at 102 A 1,439,502
Riverside Multi-Family Housing:
3,285,000 6.500%, 1/01/18 7/02 at 100 AAA 3,377,177
4,005,000 6.500%, 1/01/18 7/02 at 100 AAA 4,117,380
Sacramento Area Flood Control Agency, Capital
Assessment District 2:
3,000,000 5.375%, 10/01/15 10/05 at 102 Aaa 2,948,160
3,000,000 5.375%, 10/01/25 10/05 at 102 Aaa 2,904,930
205,000 Sacramento Municipal Utility District,
Subordinated Electric Revenue,
8.000%, 11/15/10 No Opt. Call Baa1 205,642
4,000,000 Sacramento Municipal Utility District,
7.875%, 8/15/16 (Pre-refunded to 8/15/98) 8/98 at 102 Aaa 4,461,400
2,315,000 Salinas Tax Allocation, 7.400%, 9/02/09 3/96 at 103 N/R 2,407,762
2,080,000 Salinas, (Villa Sierra-GNMA), 6.500%, 7/20/17 7/04 at 102 AAA 2,162,659
4,000,000 San Bernadino, Certificates of Participation,
5.500%, 8/01/15 8/05 at 102 Aaa 3,931,920
10,240,000 San Francisco Airports Commission,
6.100%, 5/01/25 5/04 at 101 Aaa 10,710,733
5,000,000 San Francisco City and County Redevelopment
Financing Authority, Tax Allocation,
5.125%, 8/01/18 8/03 at 103 A 4,535,700
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,070,000 San Leandro, Certificates of Participation,
5.900%, 6/01/13 6/03 at 102 A $ 3,083,784
1,000,000 San Mateo County Board of Education,
Certificates of Participation, 7.100%, 5/01/21 5/99 at 102 A+ 1,063,180
Santa Barbara, Certificates of Participation
(Fact Retirement Services):
1,750,000 5.850%, 8/01/15 8/06 at 102 A 1,738,870
2,975,000 5.750%, 8/01/20 8/06 at 102 A 2,911,841
3,000,000 Santa Cruz Housing Authority, Multi-Family
Housing, FNMA, 7.750%, 7/01/23 7/00 at 102 AAA 3,225,660
2,000,000 Sonoma County Office of Education, Certificates
of Participation, 7.375%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 102 A+ 2,283,580
Southern California Public Power Authority:
4,760,000 7.000%, 7/01/22 7/96 at 102 1/2 Aa 4,924,172
740,000 5.500%, 7/01/23 7/96 at 100 Aa 719,058
2,825,000 Stockton Hospitals (St. Joseph Hospital),
6.700%, 6/01/15 12/98 at 100 A 2,912,745
3,000,000 Thousand Oaks Redevelopment Agency,Tax
Allocation, 5.375%, 12/01/25 12/05 at 102 Aaa 2,904,600
1,100,000 Tulare County, Certificates of Participation,
6.875%, 11/15/12 11/02 at 102 Baa1 1,157,519
University of California (UCLA Center Chiller/
Cogeneration), Certificates of Participation:
3,500,000 5.600%, 11/01/20 11/03 at 102 Aa 3,379,530
4,335,000 6.000%, 11/01/21 11/03 at 102 Aa 4,431,886
3,335,000 University of California Research Facilities,
5.800%, 9/01/23 9/01 at 102 A- 3,296,580
4,000,000 Walnut Creek (John Muir Medical Center),
Certificates of Participation, 5.000%, 2/15/16 2/04 at 102 Aaa 3,715,920
- ---------------------------------------------------------------------------------------------------------------------------
$ 218,080,000 Total Investments - (Cost $214,125,831) - 98.5% 226,239,426
==============-------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.2%
$ 400,000 California Pollution Control Finance Authority
============== (Shell Oil Company), Variable Rate Demand
Bonds, 3.150%, 11/01/00+ VMIG-1 400,000
- ---------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,143,863
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 229,783,289
===========================================================================================================================
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 29 $102,875,637 45%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 12 36,519,939 16
PORTFOLIO OF A+ A1 7 11,421,760 5
INVESTMENTS A, A-- A, A2, A3 17 56,411,428 25
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 7 10,398,612 5
TEMPORARY BB+, BB, BB-- Ba1, Ba, Ba2, Ba3 1 2,291,120 1
INVESTMENTS): Non-rated Non-rated 3 6,320,930 3
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 76 $226,239,426 100%
===========================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
21
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 California Education Facilities Authority
(Pepperdine University), 7,200%, 11/01/15
(Pre-refunded to 11/01/00) 11/00 at 102 Aaa $ 1,143,840
6,000,000 California Health Facilities Authority (Kaiser
Permanente), 5.450%, 10/01/13 10/01 at 101 Aa3 5,798,880
6,340,000 California Housing Finance Agency,
6.850%, 8/01/23 2/02 at 102 Aaa 6,663,213
240,000 California Public Capital Improvement Finance
Authority (Pooled Projects), 8.100%, 3/01/18 3/98 at 102 Aaa 258,067
5,000,000 California Public Works Board, Department of
Corrections--State Prisons, 7.000%, 9/01/09
(Pre-refunded to 9/01/00) 9/00 at 102 Aaa 5,672,050
8,500,000 California Statewide Community Development
Authority (Sutter Health), 6.125%, 8/15/22 8/02 at 102 Aaa 8,899,245
9,000,000 California Statewide Communities Development
Authority (Sutter Health), Certificates of
Participation, 5.500%, 8/15/13 8/03 at 102 Aaa 8,979,750
1,225,000 Barstow Redevelopment Agency, Tax Allocation,
7.000%, 9/01/14 No Opt. Call Aaa 1,463,005
7,005,000 Big Bear Lake Financing Authority,
6.300%, 8/01/25 8/05 at 102 Aaa 7,488,415
7,000,000 Big Bear Lake Water System, 6.375%, 4/01/22 4/02 at 102 Aaa 7,468,090
3,525,000 Brea Public Financing Authority, Tax Allocation,
7.000%, 8/01/15 (Pre-refunded to 8/01/01) 8/01 at 102 Aaa 4,053,433
2,000,000 Burbank Wastewater System, 5.500%, 6/01/25 6/05 at 102 Aaa 1,961,320
3,000,000 Calaveras County Water District, Certificates of
Participation, 6.900%, 5/01/16 (Pre-refunded to
5/01/01) 5/01 at 102 Aaa 3,419,730
2,000,000 Castaic Lake Water Agency, Certificates of
Participation, 7.125%, 8/01/16 (Pre-refunded
to 8/01/00) 8/00 at 102 Aaa 2,274,900
7,000,000 Chino Unified School District, Certificates of
Participation, 6.125%, 9/01/26 9/05 at 102 Aaa 7,366,310
850,000 Concord Redevelopment Agency, Tax Allocation
(Central Concord Project), 7.875%, 7/01/07 7/98 at 102 Aaa 931,549
500,000 Cotati-Rohnert Park Unified School District,
9.000%, 8/01/06 8/99 at 102 Aaa 579,100
4,050,000 Cucamonga County Water District, Certificates of
Participation, 5.450%, 9/01/23 3/04 at 102 Aaa 3,918,375
2,000,000 East Bay Municipal Utility District, Water System,
7.500%, 6/01/18 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 2,295,700
2,000,000 Eastern Municipal Water District, Water and
Sewer, Certificates of Participation,
6.500%, 7/01/20 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 2,248,840
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,865,000 Fallbrook Sanitary District, Certificates
of Participation, 6.600%, 2/01/13 2/01 at 100 Aaa $ 4,158,701
2,500,000 Fontana Public Financing Authority, Tax
Allocation (North Fontana Redevelopment
Project), 7.000%, 9/01/10 9/00 at 102 Aaa 2,781,850
3,000,000 Gilroy Unified School District, Certificates of
Participation, 6.250%, 9/01/12 9/04 at 102 Aaa 3,208,620
7,000,000 Glendale Memorial Hospital and Health Center,
5.600%, 11/15/25 11/05 at 102 AAA 6,778,030
1,000,000 LaQuinta Redevelopment Agency, Tax
Allocation, 7.300%, 9/01/12 No Opt. Call Aaa 1,235,200
5,000,000 Lancaster Redevelopment Agency, Tax
Allocation, 5.800%, 8/01/23 8/03 at 102 Aaa 5,070,350
5,000,000 Los Angeles Community Redevelopment Agency,
Multi-Family Housing (Angelus Plaza),
7.400%, 6/15/10 6/05 at 105 AAA 5,586,850
2,000,000 Los Angeles Convention and Exhibition Center,
Certificates of Participation, 7.000%, 8/15/21
(Pre-refunded to 8/15/00) 8/00 at 102 Aaa 2,266,720
Los Angeles Department of Water and Power:
5,000,000 5.400%, 11/15/31 11/03 at 102 Aa 4,739,000
6,000,000 5.400%, 11/15/31 11/03 at 102 Aaa 5,739,300
260,000 Los Angeles Home Mortgage (GNMA),
8.100%, 5/01/17 No Opt. Call Aaa 278,834
Los Angeles Wastewater System:
800,000 5.700% 6/01/20 6/03 at 102 Aaa 800,208
5,000,000 5.700% 6/01/23 6/03 at 102 Aaa 5,019,100
5,000,000 Los Angeles County Transportation Commission,
6.250%, 7/01/13 7/02 at 102 Aaa 5,325,050
Modesto Irrigation District Financing Authority,
Domestic Water Project:
4,500,000 6.125%, 9/01/19 9/02 at 102 Aaa 4,721,715
5,750,000 5.500%, 9/01/22 9/02 at 100 Aaa 5,636,035
2,500,000 Mt. Diablo Hospital District, 8.000%, 12/01/11
(Pre-refunded to 12/01/00) 12/00 at 102 Aaa 2,957,175
2,000,000 Mt. Diablo Unified School District, Special Tax,
7.050%, 8/01/20 8/00 at 102 Aaa 2,227,960
Napa FHA-Insured (Creekside Apartments):
2,555,000 6.625%, 7/01/24 7/02 at 102 Aaa 2,661,722
2,000,000 6.625%, 7/01/25 7/04 at 101 Aaa 2,091,080
7,040,000 Norwalk Community Facilities Financing
Authority, Tax Allocation, 6.050%, 9/01/25 9/05 at 102 Aaa 7,395,379
2,500,000 Oakland Pension Financing, 7.600%, 8/01/21 8/98 at 102 Aaa 2,730,725
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,250,000 Palm Desert Redevelopment Agency,
Tax Allocation, 7.400%, 5/01/09 5/97 at 101 Aaa $ 1,306,575
2,000,000 Pittsburgh Redevelopment Agency
(Los Medanos Community Project),
Tax Allocation, 7.150%, 8/01/21 8/01 at 103 Aaa 2,330,180
1,500,000 Port of Oakland, 7.250%, 11/01/16 5/97 at 102 Aaa 1,580,160
1,270,000 Rancho Cucamonga Redevelopment Agency,
Tax Allocation, 7.125%, 9/01/19
(Pre-refunded to 9/01/99) 9/99 at 102 Aaa 1,422,502
Riverside County Desert Justice Facility
Corporation, Certificates of Participation:
3,600,000 6.000%, 12/01/17 12/04 at 101 Aaa 3,738,276
2,500,000 6.250%, 12/01/21 12/04 at 101 Aaa 2,638,875
3,000,000 Sacramento Municipal Utility District, Electric
System, 6.500%, 9/01/21
(Pre-refunded to 9/01/01) 9/01 at 102 Aaa 3,382,170
4,240,000 Saddleback Unified School District Public
Financing Authority, 5.650%, 9/01/17 9/05 at 102 Aaa 4,221,683
6,030,000 San Bernardino Certificates of Participation,
5.500%, 8/01/15 8/05 at 102 Aaa 5,927,369
2,500,000 San Bernardino County Transportation
Authority, Sales Tax, 6.000%, 3/01/10 3/02 at 102 Aaa 2,623,775
2,000,000 San Diego Regional Building Authority
(San Miguel Fire Protection District),
7.250%, 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 2,258,800
San Francisco City and County Redevelopment
Agency (George R. Moscone Convention Center):
2,250,000 6.800%, 7/01/19 7/04 at 102 Aaa 2,532,443
1,000,000 6.750%, 7/01/24 7/04 at 102 Aaa 1,122,180
2,250,000 San Jose Redevelopment Agency, Tax Allocation,
4.750%, 8/01/24 2/04 at 102 Aaa 1,989,630
2,000,000 San Marcos Public Facilities Authority, Tax
Allocation, 5.500%, 8/01/23 8/03 at 102 Aaa 1,962,420
4,750,000 Southern California Public Power Authority,
5.000%, 7/01/22 7/03 at 100 Aaa 4,350,383
2,000,000 Southern California Rapid Transit Finance
Authority, Certificates of Participation,
7.500%, 7/01/05 1/01 at 102 1/2 Aaa 2,275,880
3,040,000 Sulphur Springs Union School District,
0.000%, 9/01/15 No Opt. Call Aaa 1,021,501
125,000 Thousand Oaks Redevelopment Agency,
Single Family Mortgage, 7.900%, 1/01/16 1/97 at 102 Aaa 129,780
5,250,000 Tracy Area Public Facilities Financing Agency,
5.500%, 10/01/21 (WI) 10/06 at 102 Aaa 5,078,378
- ---------------------------------------------------------------------------------------------------------------------------
$ 211,060,000 Total Investments - (Cost $203,867,092) - 97.4% 218,186,376
==============-------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 3.5%
$ 1,000,000 California Health Facilities Financing Authority
(St. Joseph Health System), Series A,
Variable Rate Demand Bonds,
3.150%, 7/01/13+ VMIG-1 $ 1,000,000
500,000 California Health Facilities Financing Authority
(St. Joseph Health System) Series B,
Variable Rate Demand Bonds,
3.100%, 7/01/13+ VMIG-1 500,000
700,000 California Health Facilities Financing Authority
(St. Joseph Health System), Series 1991 B,
Variable Rate Demand Bonds,
3.100%, 7/01/09+ VMIG-1 700,000
3,200,000 California Statewide Communities Development
Authority (St. Joseph Health System), Certificates
of Participation, Variable Rate Demand Bonds,
3.100%, 7/01/24+ VMIG-1 3,200,000
California Pollution Control Finance Authority
(Shell Oil Company), Variable Rate
Demand Bonds:
800,000 3.150%, 10/01/07+ VMIG-1 800,000
200,000 3.150%, 10/01/11+ VMIG-1 200,000
1,500,000 Santa Ana Health Facilities Authority
(Town and Country),
Variable Rate Demand Bonds,
3.250%, 10/01/20+ A-1 1,500,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 7,900,000 Total Temporary Investments - 3.5% 7,900,000
==============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.9)% (2,153,889)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 223,932,487
===========================================================================================================================
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 60 $207,648,496 95%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 2 10,537,880 5
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 62 $218,186,376 100%
===========================================================================================================================
</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.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants):
Using the higher of Standard & Poor's or Moody's rating. (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.
26
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts General Obligation,
$ 165,000 7.250%, 3/01/09 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa $ 186,302
715,000 5.500%, 2/01/11 2/03 at 102 A 720,734
Massachusetts Bay Transportation Authority:
250,000 7.750%, 3/01/10 (Pre-refunded to 3/01/98) 3/98 at 102 Aaa 273,940
1,000,000 7.000%, 3/01/11 (Pre-refunded to 3/01/01) 3/01 at 102 Aaa 1,137,570
250,000 Massachusetts Bay Transportation Authority,
Certificates of Participation, 7.800%, 1/15/14 12/06 at 100 BBB 291,145
160,000 Massachusetts Educational Loan Authority,
7.875%, 6/01/03 6/97 at 102 AAA 170,426
1,345,000 Massachusetts Health and Educational Facilities
Authority (Emerson Hospital),
8.000%, 7/01/18 (Pre-refunded to 7/01/00) 7/00 at 102 N/R 1,560,577
250,000 Massachusetts Health and Educational Facilities
Authority (Mount Auburn Hospital),
7.875%, 7/01/18 (Pre-refunded to 7/01/98) 7/98 at 102 Aaa 277,333
350,000 Massachusetts Health and Educational Facilities
Authority (Salem Hospital), 7.250%, 7/01/09
(Pre-refunded to 7/01/97) 7/97 at 100 Aaa 366,951
500,000 Massachusetts Health and Educational Facilities
Authority (Cardinal Cushing General Hospital),
8.875%, 7/01/18 7/99 at 102 1/2 N/R 542,560
Massachusetts Health and Educational Facilities
Authority (Suffolk University):
1,180,000 8.125%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 101 1/2 Baa 1,362,393
1,000,000 6.350%, 7/01/22 7/02 at 102 AAA 1,046,960
500,000 Massachusetts Health and Educational Facilities
Authority (Newton-Wellesley Hospital),
8.000%, 7/01/18 7/98 at 102 Aaa 556,050
500,000 Massachusetts Health and Educational Facilities
Authority, FHA-Insured (St. Elizabeth's
Hospital of Boston), 7.750%, 8/01/27
(Pre-refunded to 8/01/97) 8/97 at 102 Aaa 538,510
750,000 Massachusetts Health and Educational Facilities
Authority, (Baystate Medical Center),
7.500%, 7/01/20 (Pre-refunded to 7/01/99) 7/99 at 102 A+ 836,115
1,000,000 Massachusetts Health and Educational Facilities
Authority (Boston College), 6.625%, 7/01/21 7/01 at 102 Aaa 1,096,280
500,000 Massachusetts Health and Educational Facilities
Authority (Worcester Polytechnic Institute),
6.625%, 9/01/17 9/02 at 102 A+ 541,300
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 495,000 Massachusetts Health and Educational Facilities
Authority (Brockton Hospital),
8.000%, 7/01/07 7/97 at 102 A $ 521,992
250,000 Massachusetts Health and Educational Facilities
Authority (University Hospital),
7.250%, 7/01/10 7/00 at 102 Aaa 278,668
750,000 Massachusetts Health and Educational Facilities
Authority (New England Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 831,825
1,750,000 Massachusetts Health and Educational Facilities
Authority (New England Deaconess Hospital),
6.875%, 4/01/22 4/02 at 102 A 1,849,750
1,000,000 Massachusetts Health and Educational Facilities
Authority (Metrowest Health),
6.500%, 11/15/18 11/02 at 102 A 986,450
885,000 Massachusetts Health and Educational Facilities
Authority (Cable Housing and Health Services),
5.625%, 7/01/13 7/03 at 102 Aaa 893,239
Massachusetts Health and Educational Facilities
Authority (Lahey Clinic Medical Center):
1,000,000 5.625%, 7/01/15 7/03 at 102 Aaa 989,460
2,000,000 5.375%, 7/01/23 7/03 at 102 Aaa 1,911,660
700,000 Massachusetts Health and Educational Facilities
Authority (Daughters of Charity),
6.100%, 7/01/14 7/04 at 102 Aa 719,103
Massachusetts Health and Educational Facilities
Authority (Youville Hospital):
2,500,000 6.000%, 2/15/25 2/04 at 102 Aa 2,534,525
2,000,000 6.000%, 2/15/34 2/04 at 102 Aa 2,012,600
1,950,000 Massachusetts Housing Finance Agency,
Housing Project, 6.375%, 4/01/21 4/03 at 102 A1 1,967,921
Massachusetts Housing Finance Agency,
Residential Development:
1,000,000 6.250%, 11/15/14 11/02 at 102 Aaa 1,026,200
1,000,000 6.875%, 11/15/21 5/02 at 102 Aaa 1,049,350
Massachusetts Housing Finance Agency, Single
Family Housing:
500,000 7.350%, 12/01/16 6/01 at 102 Aa 533,245
1,250,000 7.700%, 6/01/17 6/98 at 102 Aa 1,333,513
1,440,000 Massachusetts Industrial Finance Agency,
Pollution Control (Eastern Edison),
5.875%, 8/01/08 8/03 at 102 Baa2 1,434,154
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 975,000 Massachusetts Industrial Finance Authority
(Malden Public Library Project),
7.250%, 1/01/15 1/05 at 102 Aaa $ 1,141,550
1,000,000 Massachusetts Industrial Finance Agency
(Semass Project), 9.000%, 7/01/15 7/01 at 103 N/R 1,098,090
250,000 Massachusetts Industrial Finance Agency
(College of the Holy Cross), 6.450%, 1/01/12 1/02 at 102 A1 267,743
475,000 Massachusetts Industrial Finance Agency (Sturdy
Memorial Hospital), 7.900%, 6/01/09 6/99 at 102 BBB+ 513,428
500,000 Massachusetts Industrial Finance Agency
(Springfield College), 7.800%, 10/01/09 10/99 at 103 A 575,375
1,380,000 Massachusetts Industrial Finance Agency
(Merrimack College), 7.125%, 7/01/12 7/02 at 102 BBB- 1,483,845
1,600,000 Massachusetts Industrial Finance Agency
(Phillips Academy), 5.375%, 9/01/23 9/08 at 102 Aa1 1,550,864
500,000 Massachusetts Industrial Finance Agency
(Whitehead Institute for Biomedical Research),
5.125%, 7/01/26 7/03 at 102 Aa 458,355
2,290,000 Massachusetts Industrial Finance Agency
(Lesley College), 6.300%, 7/01/25 7/05 at 102 AAA 2,412,194
1,750,000 Massachusetts Industrial Finance Agency (Harvard
Community Health), 8.125%, 10/01/17 10/98 at 102 A 1,907,605
1,000,000 Massachusetts Municipal Wholesale
Electric Company, 5.000%, 7/01/17 7/04 at 102 Aaa 932,230
Massachusetts Port Authority:
500,000 7.125%, 7/01/12 7/98 at 100 Aa 506,290
635,000 13.000%, 7/01/13 No Opt. Call Aaa 1,099,839
Massachusetts Turnpike Authority:
500,000 5.000%, 1/01/13 1/03 at 100 A1 470,905
1,000,000 5.125%, 1/01/23 1/03 at 102 Aaa 933,710
Attleboro General Obligation:
450,000 6.250%, 1/15/10 1/03 at 102 Baa1 475,362
450,000 6.250%, 1/15/11 1/03 at 102 Baa1 472,131
Barnstable General Obligation:
880,000 5.750%, 9/15/13 9/04 at 102 Aa 904,842
490,000 5.750%, 9/15/14 9/04 at 102 Aa 501,853
Boston General Obligation:
250,000 7.700%, 2/01/09 (Pre-refunded to 2/01/99) 2/99 at 102 A 279,715
1,000,000 6.750%, 7/01/11 7/01 at 102 Aaa 1,132,660
1,500,000 Boston City Hospital, FHA Insured Mortgage,
7.625%, 2/15/21 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 1,713,420
Boston Water and Sewer Commission:
180,000 7.875%, 11/01/13 (Pre-refunded to 11/01/96) 11/96 at 102 A 188,901
320,000 7.875%, 11/01/13 11/96 at 102 A 335,120
500,000 7.000%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 575,675
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Boston-Mount Pleasant Housing
Development Corporation, Multi-Family
Housing, 6.750%, 8/01/23 8/02 at 102 AAA $1,042,250
1,000,000 Dartmouth Housing Development Corporation
Multi-Family Housing, 7.375%, 7/01/24 1/98 at 103 AAA 1,043,270
Deerfield General Obligation:
420,000 6.200%, 6/15/09 6/02 at 102 A1 459,136
415,000 6.250%, 6/15/10 6/02 at 102 A1 452,176
525,000 Haverhill General Obligation, 7.500%, 10/15/11 10/01 at 102 Baa 580,099
Holyoke General Obligation:
685,000 8.000%, 6/01/01 No Opt. Call Baa 743,636
250,000 8.150%, 6/15/06 6/02 at 103 Aaa 302,635
750,000 7.000%, 11/01/08 11/02 at 102 Baa 840,615
500,000 7.650%, 8/01/09 8/01 at 102 Baa 560,110
Lowell General Obligation:
545,000 8.300%, 2/15/05 No Opt. Call Baa1 654,164
445,000 8.400%, 1/15/09 (Pre-refunded to 1/15/01) 1/01 at 102 Aaa 531,277
1,000,000 Lynn General Obligation, 7.850%, 1/15/11
(Pre-refunded to 1/15/02) 1/02 at 104 Aaa 1,209,040
500,000 Monson General Obligation School Project,
7.700%, 10/15/10 (Pre-refunded to 10/15/00) 10/00 at 102 Aaa 581,585
Palmer General Obligation:
500,000 7.700%, 10/01/10 (Pre-refunded to 10/01/00) 10/00 at 102 Aaa 581,045
500,000 5.500%, 10/01/10 10/03 at 102 Aaa 512,135
1,130,000 Peabody General Obligation, 6.950%, 8/01/09 8/00 at 100 Aaa 1,245,362
550,000 Quincy Hospital, FHA-Insured, 7.875%, 1/15/16 7/96 at 102 AAA 570,295
250,000 Sandwich General Obligation,
7.100%, 11/01/07 (Pre-refunded to 11/01/98) 11/98 at 102 1/2 Aaa 276,613
1,250,000 Somerville Housing Authority (GNMA),
7.950%, 11/20/30 5/00 at 102 AAA 1,343,074
425,000 South Essex Sewerage District, General
Obligation, 9.000%, 12/01/00 No Opt. Call A 508,622
250,000 Southeastern Massachusetts University
Building Authority, 7.800%, 5/01/16
(Pre-refunded to 5/01/96) 5/96 at 102 A 256,847
1,000,000 Springfield General Obligation, 7.100%, 9/01/11 9/02 at 102 Baa 1,099,700
Taunton General Obligation:
1,465,000 8.000%, 2/01/02 No Opt. Call A 1,727,234
1,005,000 8.000%, 2/01/03 No Opt. Call A 1,204,240
250,000 University of Lowell Building Authority,
7.400%, 11/01/07 11/97 at 102 A 269,634
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 500,000 University of Massachusetts Building Authority,
7.500%, 5/01/14 5/98 at 102 A $ 546,740
1,000,000 Worcester General Obligation, 6.000%, 8/01/04 8/02 at 102 BBB+ 1,070,840
1,000,000 Puerto Rico Aqueduct and Sewer Authority,
7.875%, 7/01/17 (Pre-refunded to 7/01/98) 7/98 at 102 AAA 1,111,000
2,250,000 Puerto Rico Electric Power Authority,
7.000%, 7/01/21 (Pre-refunded to 7/01/01) 7/01 at 102 Aaa 2,584,394
- ---------------------------------------------------------------------------------------------------------------------------
$ 72,620,000 Total Investments (Cost $72,713,663) - 95.7% 78,218,271
===============------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 3.2%
$ 2,600,000 Massachusetts Dedicated Income Tax Variable Rate
Demand Bonds, 3.350%, 12/01/97+ VMIG-1 2,600,000
===============------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 882,885
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 81,701,156
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 39 $35,505,977 46%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 10 11,055,190 14
PORTFOLIO OF A+ A1 7 4,995,296 6
INVESTMENTS A, A-- A, A2, A3 15 11,878,959 15
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 14 11,581,622 15
TEMPORARY Non-rated Non-rated 3 3,201,227 4
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 88 $78,218,271 100%
===========================================================================================================================
</TABLE>
* Optional call provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
31
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts General Obligation:
$ 500,000 6.500%, 6/01/08 6/02 at 101 Aaa $ 548,990
250,000 7.250%, 3/01/09 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 282,275
1,200,000 6.000%, 6/01/13 6/02 at 100 Aaa 1,237,356
Massachusetts Bay Transportation Authority,
General Transportation System:
250,000 7.250%, 3/01/03 3/00 at 102 Aaa 278,590
250,000 7.100%, 3/01/13 (Pre-refunded to 3/01/99) 3/99 at 102 Aaa 276,333
1,000,000 5.750%, 3/01/22 3/02 at 100 Aaa 1,004,780
250,000 Massachusetts Bay Transportation Authority,
Certificates of Participation, 7.650%, 8/01/15
(Pre-refunded to 8/01/00) 8/00 at 102 Aaa 288,848
750,000 Massachusetts College Building Authority,
7.250%, 5/01/16 5/96 at 102 Aaa 769,958
450,000 Massachusetts Health and Educational Facilities
Authority (St. Luke's Hospital of New Bedford),
7.750%, 7/01/13 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 483,300
Massachusetts Health and Educational Facilities
Authority (South Shore Hospital):
200,000 8.125%, 7/01/17 (Pre-refunded to 7/01/97) 7/97 at 102 Aaa 215,772
250,000 7.500%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 286,783
1,000,000 6.500%, 7/01/22 7/02 at 102 Aaa 1,096,030
300,000 Massachusetts Health and Educational Facilities
Authority (Mount Auburn Hospital),
7.875%, 7/01/18 (Pre-refunded to 7/01/98) 7/98 at 102 Aaa 332,799
Massachusetts Health and Educational Facilities
Authority (Lahey Clinic Medical Center):
750,000 7.600%, 7/01/08 (Pre-refunded to 7/01/98) 7/98 at 102 Aaa 827,423
1,700,000 5.625%, 7/01/15 7/03 at 102 Aaa 1,682,082
2,500,000 5.375%, 7/01/23 7/03 at 102 Aaa 2,389,575
800,000 Massachusetts Health and Educational Facilities
Authority (Berkshire Health Systems),
7.600%, 10/01/14 (Pre-refunded to 10/01/98) 10/98 at 102 Aaa 889,392
750,000 Massachusetts Health and Educational Facilities
Authority (Salem Hospital), 7.250%, 7/01/09
(Pre-refunded to 7/01/97) 7/97 at 100 Aaa 786,323
250,000 Massachusetts Health and Educational Facilities
Authority (Capital Asset Program),
7.200%, 7/01/09 7/99 at 102 Aaa 274,795
500,000 Massachusetts Health and Educational Facilities
Authority (University Hospital), 7.250%, 7/01/19 7/00 at 102 Aaa 556,920
250,000 Massachusetts Health and Educational Facilities
Authority (Newton-Wellesley Hospital),
8.000%, 7/01/18 7/98 at 102 Aaa 278,025
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Massachusetts Health and Educational Facilities
Authority (Northeastern University):
$ 250,000 7.600%, 10/01/10 10/98 at 102 Aaa $ 274,570
1,600,000 6.550%, 10/01/22 10/02 at 102 Aaa 1,762,208
500,000 Massachusetts Health and Educational Facilities
Authority (Baystate Medical Center),
7.500%, 7/01/20 (Pre-refunded to 7/01/99) 7/99 at 102 A+ 557,410
500,000 Massachusetts Health and Educational Facilities
Authority (Stonehill College), 7.700%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 577,495
1,000,000 Massachusetts Health and Educational Facilities
Authority (Boston College), 6.625%, 7/01/21 7/01 at 102 Aaa 1,096,280
500,000 Massachusetts Health and Educational Facilities
Authority (Berklee College of Music),
6.875%, 10/01/21 10/01 at 102 Aaa 559,940
1,000,000 Massachusetts Health and Educational Facilities
Authority (Brigham and Women's Hospital),
6.750%, 7/01/24 7/01 at 102 Aa 1,053,890
250,000 Massachusetts Health and Educational Facilities
Authority (Beverly Hospital), 7.300%, 7/01/19
(Pre-refunded to 7/01/99) 7/99 at 102 Aaa 279,658
1,500,000 Massachusetts Health and Educational Facilities
Authority (New England Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 1,663,650
1,450,000 Massachusetts Health and Educational Facilities
Authority (Boston University), 6.000%, 10/01/22 10/02 at 100 Aaa 1,494,776
2,000,000 Massachusetts Health and Educational Facilities
Authority (Bentley College), 6.125%, 7/01/17 7/02 at 102 Aaa 2,096,840
350,000 Massachusetts Housing Finance Agency,
7.600%, 12/01/16 12/99 at 103 Aaa 372,257
Massachusetts Housing Finance Agency, Single
Family Housing:
500,000 7.350%, 12/01/16 6/01 at 102 Aa 533,245
250,000 7.700%, 6/01/17 6/98 at 102 Aa 266,703
1,590,000 Massachusetts Industrial Finance Authority (Malden
Public Library Project), 7.250%, 1/01/15 1/05 at 102 Aaa 1,861,604
500,000 Massachusetts Industrial Finance Agency,
(Brandeis University), 6.800%, 10/01/19 10/99 at 102 Aaa 548,405
200,000 Massachusetts Industrial Finance Agency
(Harvard Community Health Plan),
7.750%, 10/01/08 10/98 at 102 Aaa 219,918
250,000 Massachusetts Industrial Finance Agency,
(Milton Academy), 7.250%, 9/01/19
(Pre-refunded to 9/01/99) 9/99 at 102 Aaa 280,420
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 375,000 Massachusetts Industrial Finance Agency
(Museum of Science), 7.300%, 11/01/09
(Pre-refunded to 11/01/99) 11/99 at 102 Aaa $ 422,918
1,000,000 Massachusetts Industrial Finance Agency
(Mount Holyoke College), 6.300%, 7/01/13 7/01 at 102 Aaa 1,065,590
420,000 Massachusetts Industrial Finance Agency
(Babson College), 5.800%, 10/01/10 10/05 at 102 Aaa 441,521
2,000,000 Massachusetts Municipal Wholesale Electric
Company, 5.000%, 7/01/10 7/03 at 102 Aaa 1,937,200
1,000,000 Massachusetts Port Authority, 13.000%, 7/01/13 No Opt. Call Aaa 1,732,030
1,000,000 Massachusetts Turnpike Authority, 5.125%, 1/01/23 1/03 at 102 Aaa 933,710
1,000,000 Boston General Obligation, 6.750%, 7/01/11 7/01 at 102 Aaa 1,132,660
500,000 Boston City Hospital (FHA-Insured Mortgage),
7.625%, 2/15/21 (Pre-refunded to 8/15/00) 8/00 at 102 Aaa 571,140
Boston Water and Sewer Commission:
500,000 7.250%, 11/01/06 11/98 at 100 Aaa 537,015
500,000 7.000%, 11/01/18 (Pre-refunded to 11/01/01) 11/01 at 102 Aaa 575,675
500,000 Fall River General Obligation, 7.200%, 6/01/10 6/01 at 102 Aaa 566,775
250,000 Town of Groveland Unlimited Tax, 6.900%, 6/15/07 6/01 at 102 Aaa 280,090
1,000,000 Haverhill General Obligation, 6.700%, 9/01/10 9/01 at 102 Aaa 1,107,140
250,000 Holyoke General Obligation, 8.150%, 6/15/06 6/02 at 103 Aaa 302,635
450,000 Leominster General Obligation, 7.500%, 4/01/09 4/00 at 102 Aaa 513,194
2,625,000 Lowell General Obligation, 5.600%, 11/01/12 11/03 at 102 Aaa 2,652,116
1,025,000 Lynn General Obligation, 6.750%, 1/15/02 No Opt. Call Aaa 1,146,534
250,000 Lynn Water and Sewer Commission,
7.250%, 12/01/10 (Pre-refunded to 12/01/00) 12/00 at 102 Aaa 286,875
1,000,000 Mansfield General Obligation, 6.700%, 1/15/11 1/02 at 102 Aaa 1,108,920
250,000 Methuen General Obligation, 7.400%, 5/15/04 5/00 at 102 Aaa 281,088
500,000 Monson General Obligation School Project,
7.700%, 10/15/10 (Pre-refunded to 10/15/00) 10/00 at 102 Aaa 581,585
1,500,000 Monson General Obligation, 5.500%, 10/15/10 No Opt. Call Aaa 1,557,300
300,000 North Andover General Obligation, 7.400%, 9/15/10 9/00 at 103 Aaa 342,006
North Middlesex Region School District,
General Obligation:
270,000 7.200%, 6/15/08 6/00 at 103 Aaa 304,223
245,000 7.200%, 6/15/09 6/00 at 103 Aaa 276,054
250,000 Northampton General Obligation, 5.300%, 3/01/10 3/03 at 102 Aaa 250,475
190,000 Northfield General Obligation, 6.350%, 10/15/09 10/01 at 102 Aaa 204,389
Palmer General Obligation:
270,000 7.300%, 3/01/10 (Pre-refunded to 3/01/00) 3/00 at 102 Aaa 305,348
250,000 7.700%, 10/01/10 (Pre-refunded to 10/01/00) 10/00 at 102 Aaa 290,523
1,000,000 5.500%, 10/01/10 10/03 at 102 Aaa 1,024,270
440,000 Quaboag Regional School District, General
Obligation, 6.250%, 6/15/08 6/02 at 102 Aaa 475,424
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Salem General Obligation:
$ 500,000 6.800%, 8/15/09 8/01 at 102 Aaa $ 555,885
900,000 6.000%, 7/15/10 7/02 at 102 Aaa 954,288
250,000 Sandwich General Obligation, 7.100%, 11/01/07
(Pre-refunded to 11/01/98) 11/98 at 102 1/2 Aaa 276,613
Southern Berkshire Regional School District,
General Obligation:
515,000 7.500%, 4/15/07 (Pre-refunded to 4/15/02) 4/02 at 102 Aaa 608,400
1,145,000 7.000%, 4/15/11 4/02 at 102 Aaa 1,319,326
250,000 Springfield Geneal Obligation, 7.000%, 11/01/07 11/98 at 103 Aaa 273,643
220,000 Taunton General Obligation, 6.800%, 9/01/09 9/01 at 103 Aaa 246,435
455,000 Wareham School Project General Obligation,
7.050%, 1/15/07 1/01 at 103 Aaa 513,148
250,000 Westfield General Obligation, 7.100%, 12/15/08
(Pre-refunded to 12/15/00) 12/00 at 102 Aaa 285,497
215,000 Whately General Obligation, 6.350%, 1/15/09 1/02 at 102 Aaa 232,540
1,210,000 Winchendon General Obligation, 6.050%, 3/15/10 3/03 at 102 Aaa 1,296,500
160,000 Worcester General Obligation, 6.900% 5/15/07 5/02 at 102 Aaa 184,150
1,000,000 Puerto Rico Commonwealth, General Obligation,
5.750%, 7/01/24 7/05 at 101 1/2 Aaa 1,016,160
2,290,000 Puerto Rico Industrial Medical and Environmental
Authority, 6.250%, 7/01/16 1/05 at 102 Aaa 2,460,580
- ---------------------------------------------------------------------------------------------------------------------------
$ 58,810,000 Total Investments - (Cost $58,764,889) - 96.4% 63,715,206
==============-------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-
TERM MUNICIPAL SECURITIES - 2.3%
$ 1,200,000 Massachusetts Dedicated Income Tax, Variable
Rate Demand Bonds, 3.350%, 12/01/97+ VMIG-1 1,200,000
300,000 Massachusetts Industrial Finance Agency (Showa
Women's Institute Boston), Variable Rate
Demand Bonds, 3.600%, 3/15/04+ VMIG-1 300,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 1,500,000 Total Temporary Investments - 2.3% 1,500,000
==============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 884,502
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 66,099,708
===========================================================================================================================
</TABLE>
35
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 80 $61,303,958 96%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 3 1,853,838 3
PORTFOLIO OF A+ A1 1 557,410 1
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 84 $63,715,206 100%
===========================================================================================================================
</TABLE>
All of the bonds in the portfolio, exluding 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.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional
call or redemption. There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
36
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN NEW YORK TAX-FREE VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,000,000 New York Local Government Assistance Corporation,
5.500%, 4/01/21 4/03 at 102 A $ 3,844,720
500,000 New York State (Commissioner of Office of Mental
Health), Certificates of Participation,
8.300%, 9/01/12 9/97 at 102 Baal 536,065
3,000,000 New York State Energy Research and Development
Authority, 6.100%, 8/15/20 7/05 at 102 A1 3,106,530
1,545,000 New York State Environmental Facilities Corporation
(State Park Infrastructure), 5.750%, 3/15/13 3/03 at 101 Baal 1,535,823
3,000,000 New York State General Obligation,
5.625%, 10/01/20 10/05 at 101 A 3,004,890
200,000 New York State Housing Finance Agency, State
University Construction, 8.000%, 5/01/11 No Opt. Calls Aaa 255,060
1,650,000 New York State Housing Finance Agency, Insured
Multi-Family Mortgage Housing,
6.950%, 8/15/12 8/02 at 102 Aa 1,770,104
2,000,000 New York State Housing Finance Agency, Health
Facilities (New York City), 8.000%, 11/01/08 11/00 at 102 BBB+ 2,257,780
New York State Housing Finance Agency, Service
Contract Obligation:
500,000 6.125%, 3/15/20 9/03 at 102 Baal 511,215
3,750,000 5.500%, 9/15/22 9/03 at 102 Baal 3,528,450
3,000,000 6.500%, 3/15/25 9/05 at 102 Baal 3,170,940
1,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, Insured
Mortgage (St. Vincent's Hospital),
8.000%, 2/15/27 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa 1,065,830
995,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, Insured
Mortgage (Albany Medical Center),
8.000%, 2/15/28 8/98 at 102 AAA 1,085,396
1,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
FHA-Insured, 7.350%, 2/15/29 8/99 at 102 Aa 1,083,640
1,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-Insured
(Buffalo General Hospital), 7.700%, 2/15/22
(Pre-refunded to 8/15/98) 8/98 at 102 AAA 1,111,020
1,250,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-
Insured (Catholic Medical Center),
8.300%, 2/15/22 (Pre-refunded to 2/15/98) 2/98 at 102 AAA 1,381,725
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,250,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Columbia-Presbyterian),
8.000%, 2/15/25 (Pre-refunded to 8/15/97) 8/97 at 102 Aaa $ 2,430,315
New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Mental Health Services):
1,460,000 7.500%, 2/15/21 2/01 at 102 AAA 1,696,038
2,000,000 5.500%, 8/15/21 2/02 at 100 AAA 1,947,860
1,500,000 6.500%, 8/15/24 8/04 at 102 Baal 1,583,250
2,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
FHA-Insured, 6.200%, 8/15/22 8/02 at 102 AAA 2,087,460
1,520,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-
Insured (Bayley Seton/St. Joseph's Hospital),
6.450%, 2/15/09 2/03 at 102 AAA 1,662,698
2,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-
Insured (St. Vincent's Medical Center),
6.200%, 2/15/21 2/04 at 102 AAA 2,581,475
1,250,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(New York Downtown Hospital),
6.700%, 2/15/12 2/05 at 102 Baa 1,298,638
2,480,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
6.400%, 8/15/14 8/04 at 102 AAA 2,622,327
New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-
Insured New York Hospital:
1,000,000 6.750%, 8/15/14 2/05 at 102 Aaa 1,125,190
1,000,000 6.800%, 8/15/24 2/05 at 102 Aaa 1,134,930
New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Brookdale Hospital Medical Center):
1,000,000 6.400%, 2/15/01 No Opt. Call Baa 1,035,520
2,700,000 6.800%, 8/15/12 2/05 at 102 Baa 2,826,306
1,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Health Care Center),
6.375%, 11/15/19 11/05 at 102 Aa 1,048,710
380,000 New York State Mortgage Agency,
8.100%, 10/01/17 4/98 at 102 Aa 404,768
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 New York State Urban Development Corporation,
6.750%, 1/01/26 1/02 at 102 Aaa $ 1,106,060
1,100,000 New York State Urban Development Corporation
(Syracuse University Center for Science and
Technology), 7.875%, 1/01/17
(Pre-refunded to 1/01/98) 1/98 at 102 Baal 1,200,573
New York State Urban Development Corporation,
Correctional Capitol Facilities:
1,000,000 5.625%, 1/01/07 1/03 at 102 Baal 1,002,330
2,490,000 5.750%, 1/01/13 1/03 at 102 Baal 2,421,799
1,250,000 5.500%, 1/01/15 1/03 at 102 Baal 1,195,538
1,000,000 7.500%, 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 AAA 1,137,820
2,000,000 New York State Urban Development Corporation
(Clarkson Center for Advanced Materials
Processing), 7.800%, 1/01/20 (Pre-refunded to
1/01/01) 1/01 at 102 Baal 2,335,260
2,900,000 New York State Urban Development Corporation,
State Facilities, 7.500%, 4/01/20 (Pre-refunded
to 4/01/01) 4/01 at 102 Aaa 3,378,268
1,000,000 New York State Urban Development Corporation
(Cornell Center for Theory and Simulation),
6.00%, 1/01/14 1/03 at 102 Baa 1,005,010
2,615,000 New York State Urban Development Corporation
(Pine Barrens), 5.375%, 4/01/17 4/05 at 102 Baal 2,391,574
2,100,000 Babylon Industrial Development Agency,
Resource Recovery, 8.500%, 1/01/19 7/98 at 103 Baal 2,376,927
1,000,000 Batavia Housing Authority, FHA-Insured
(Washington Towers), 6.500%, 1/01/23 7/01 at 102 Aaa 1,025,060
1,000,000 Brookhaven Industrial Development Agency, Civic
Facility (Dowling College/National Aviation
Center), 6.750%, 3/01/23 3/03 at 102 BBB 1,041,710
2,000,000 New York State, Certificates of Participation
(John Jay College of Criminal Justice),
6.000%, 8/15/06 No Opt. Call Baal 2,077,080
500,000 Dormitory Authority of the State of New York
(Long Island Jewish Medical Center),
FHA-Insured, 7.750%, 8/15/27 2/98 at 102 AAA 536,535
Dormitory Authority of the State of New York
(City University):
1,500,000 5.750%, 7/01/07 No Opt. Call Baal 1,522,980
750,000 7.500%, 7/01/10 No Opt. Call Baal 886,005
2,225,000 5.750%, 7/01/12 No Opt. Call Baal 2,244,780
1,500,000 5.500%, 7/01/12 7/03 at 102 Baal 1,440,540
500,000 8.200%, 7/01/13 7/98 at 102 Baal 553,735
1,000,000 7.625%, 7/01/20 7/00 at 102 AAA 1,154,640
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* ATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 750,000 Dormitory Authority of the State of New York,
GNMA (Park Ridge Housing, Inc),
7.850%, 2/01/29 2/99 at 102 AAA $ 819,203
1,985,000 Dormitory Authority of the State of New York
(United Health Services), 7.350%, 8/01/29 2/00 at 102 AAA 2,165,159
3,500,000 Dormitory Authority of the State of New York
(Nursing Homes), 5.750%, 7/01/17 7/05 at 102 Aa3 3,438,505
Dormitory Authority of the State of New York
(State University):
2,000,000 7.400%, 5/15/01 5/00 at 102 Baal 2,187,740
2,000,000 5.500%, 5/15/08 No Opt. Call Baal 1,998,060
1,125,000 5.250%, 5/15/09 No Opt. Call Baal 1,086,446
2,000,000 5.500%, 5/15/13 No Opt. Call Baal 1,964,900
2,250,000 Dormitory Authority of the State of New York,
Judicial Facilities (Suffolk County),
9.500%, 4/15/14 4/96 at 116 3/32 Baa1 2,625,480
1,375,000 Dormitory Authority of the State of New York
(University of Rochester, Strong Memorial
Hospital), 5.500%, 7/01/21 7/04 at 102 A1 1,337,353
4,000,000 Dormitory Authority of the State of New
York, Court Facilities, 5.625%, 5/15/13 5/03 at 101 1/2 Baal 3,835,840
2,195,000 Dormitory Authority of the State of New York
(Upstate Community Colleges),
6.500%, 7/01/07 No Opt. Call Baal 2,362,786
2,470,000 Dutchess County Industrial Development
Authority, Civic Facilities (Bard College),
7.000%, 11/01/17 11/03 at 102 A 2,643,369
1,000,000 Franklin County Industrial Development Agency
(County Correctional Facility),
6.750%, 11/01/12 11/02 at 102 BBB 1,068,490
750,000 Hempstead Industrial Development Authority,
Civic Facility (United Cerebral Palsy Association
of Nassau County) 7.500%, 10/01/09 10/99 at 102 Aa2 797,168
2,500,000 Housing New York Corporation, 5.00%, 11/01/13 11/03 at 102 AA 2,298,650
1,000,000 Metropolitan Transportation Authority,
Commuter Facilities, 6.250%, 7/01/17 7/02 at 102 Aaa 1,064,320
1,000,000 Metropolitan Transportation Authority,
Commuter Facilities Service Contract,
7.500%, 7/01/16 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,149,720
1,025,000 Metropolitan Transportation Authority, Transit
Facilities, 6.500%, 7/01/18 7/02 at 102 Aaa 1,130,503
1,055,000 Monroe County Water Authority, Water System,
6.000%, 8/01/17 8/02 at 102 AA 1,076,944
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
40
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York City General Obligation:
$ 2,500,000 7.000%, 8/01/04 No Opt. Call Baal $ 2,732,325
2,000,000 7.500%, 2/01/06 2/02 at 101 1/2 Baal 2,236,000
45,000 6.625%, 8/01/13 8/02 at 101 1/2 Aaa 49,738
2,500,000 6.000%, 2/15/20 2/05 at 101 Baal 2,424,300
New York City Housing Development Corporation,
Multi-Family Mortgage (FHA Insured):
2,000,000 6.550%, 10/01/15 4/03 at 102 AAA 2,093,180
2,500,000 5.850%, 5/01/26 5/03 at 102 AA 2,492,724
1,000,000 New York City Housing Development Corporation,
Multi-Unit Mortgage (FHA Insured),
7.350%, 6/01/19 6/01 at 102 AAA 1,073,680
New York City Municipal Water Finance Authority,
Water and Sewer System:
3,000,000 5.375%, 6/15/19 6/04 at 101 AAA 2,899,230
1,500,000 7.750%, 6/15/20 (Pre-refunded to 6/15/01) 6/01 at 101 1/2 Aaa 1,766,790
2,000,000 5.500%, 6/15/20 6/02 at 100 A 1,910,880
3,500,000 New York City Industrial Development Agency,
Civic Facility (The Lighthouse Project),
6.500%, 7/01/22 7/02 at 102 Aa2 3,642,240
New York City Industrial Development Agency
(College of New Rochelle):
1,000,000 6.200%, 9/01/10 9/05 at 102 Baa 1,010,320
1,000,000 6.300%, 9/01/15 9/05 at 102 Baa 1,006,090
2,405,000 Newark-Wayne Community Hospital,
7.600%, 9/01/15 9/03 at 102 N/R 2,429,242
1,000,000 Orangetown Housing Authority, Housing Facilities,
(Orangetown Guaranty), 7.600%, 4/01/30
(Pre-refunded to 10/01/00) 10/00 at 102 A 1,157,040
South Orangetown Central School District, General
Obligation:
390,000 6.875%, 10/01/08 No Opt. Call A 454,697
390,000 6.875%, 10/01/09 No Opt. Call A 454,939
3,015,000 Suffolk County Industrial Development Agency
(Dowling College Civic Facility), 6.625%, 6/01/24 6/04 at 102 BBB 3,191,769
2,000,000 34th Street Partnership Business Improvement
District, Capital Improvement,
5.500%, 1/01/23 1/03 at 102 A1 1,904,340
Triborough Bridge and Tunnel Authority:
2,000,000 7.100%, 1/01/10 1/01 at 102 A1 2,214,880
2,000,000 7.100%, 1/01/10 1/01 at 102 Aaa 2,242,460
2,100,000 UFA Development Corporation, FHA-Insured
(Loretto-Utica Project), 5.950%, 7/01/35 7/04 at 102 Aa 2,105,418
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 Westchester County Industrial Development Agency,
Civic Facility (Jewish Board of Family and
Children Services), 6.750%, 12/15/12 12/02 at 102 BBB- $ 2,066,620
- ---------------------------------------------------------------------------------------------------------------------------
$ 158,685,000 Total Investments - (Cost $156,315,155) - 96.6% 165,378,435
==============-------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.2%
New York City General Obligation,
Variable Rate Demand Bonds:
$ 900,000 3.450%, 8/15/05+ VMIG-1 900,000
800,000 3.400%, 8/15/20+ VMIG-1 800,000
1,500,000 3.300%, 8/01/22+ VMIG-1 1,500,000
600,000 3.450%, 8/15/22+ VMIG-1 600,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 3,800,000 Total Temporary Investments - 2.2% 3,800,000
==============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,974,808
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 171,153,243
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 31 $ 46,979,690 28%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 11 20,158,871 12
PORTFOLIO OF A+ A1 4 8,563,103 5
INVESTMENTS A, A-- A, A2, A3 7 13,470,535 8
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 40 73,776,994 45
TEMPORARY Non-rated Non-rated 1 2,429,242 2
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 94 $165,378,435 100%
===========================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
42
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 8,000,000 New York State Energy Research and Development
Authority (The Brooklyn Union Gas Company),
5.500%, 1/01/21 1/06 at 102 Aaa $ 7,866,400
2,500,000 New York State Energy Research and Development
Authority, Pollution Control (Central Hudson Gas
& Electric Corporation), 7.375%, 10/01/14 10/99 at 103 Aaa 2,802,650
1,450,000 New York State Environmental Facilities Corporation,
Water Pollution Control, Pooled Loan,
7.200%, 3/15/11 6/00 at 102 Aaa 1,614,343
2,200,000 New York State Housing Finance Agency, Multi-
Family Housing, 7.450%, 11/01/28 11/99 at 102 Aaa 2,338,886
995,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, Insured
Mortgage (Albany Medical Center),
8.000%, 2/15/28 8/98 at 102 AAA 1,085,396
895,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(St. Francis Hospital), 7.625%, 11/01/21 11/98 at 102 Aaa 984,187
4,765,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Bronx Lebanon), 7.100%, 2/15/27 2/97 at 102 Aaa 4,969,371
2,000,000 New York State Medical Care Facilities
Agency, Hospital and Nursing Home, FHA-
Insured, 7.350%, 2/15/29 8/99 at 102 Aa 2,167,280
1,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home, FHA-
Insured (Catholic Medical Center),
8.300%, 2/15/22 (Pre-refunded to 2/15/98) 2/98 at 102 AAA 1,658,070
New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
FHA-Insured (Montefiore Medical Center):
1,500,000 7.250%, 2/15/24 2/99 at 102 Aa 1,621,800
2,000,000 7.250%, 2/15/24 2/99 at 102 Aaa 2,167,600
1,300,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(St. Luke's-Roosevelt Hospital Center),
7.450%, 2/15/29 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 1,478,815
1,865,000 New York State Medical Care Facilities Finance
Agency, Long-Term Health Care (Capital
Guaranty Insured Program), 6.450%, 11/01/14 5/02 at 102 Aaa 2,001,966
3,200,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(North Shore University Hospital),
7.200%, 11/01/20 11/00 at 102 Aaa 3,581,184
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,670,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Our Lady of Victory),
6.625%, 11/01/16 11/01 at 102 Aaa $ 1,842,962
New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Sisters of Charity of Buffalo):
500,000 6.600%, 11/01/10 11/01 at 102 Aaa 552,220
1,550,000 6.625%, 11/01/18 11/01 at 102 Aaa 1,710,534
1,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Aurelia Osborn Fox Memorial Hospital),
6.500%, 11/01/19 11/01 at 102 Aaa 1,097,430
3,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(South Nassau Communities Hospital),
6.125%, 11/01/11 11/02 at 102 Aaa 3,162,570
New York State Medical Care Facilities Finance
Agency, Mental Health Services, Facilities
Improvement Revenue:
1,415,000 5.750%, 2/15/14 8/03 at 102 Aaa 1,426,773
4,000,000 5.375%, 2/15/14 2/04 at 102 Aaa 3,905,400
3,250,000 5.700%, 8/15/14 2/03 at 102 Aaa 3,265,080
6,150,000 6.375%, 8/15/17 12/02 at 102 Aaa 6,556,208
2,815,000 6.250%, 8/15/18 2/02 at 102 Aaa 2,974,611
2,500,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(St. Mary's Hospital--Rochester Project),
6.200%, 11/01/14 11/03 at 102 Aaa 2,649,900
7,000,000 New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home,
FHA-Insured, 6.800%, 8/15/24 2/05 at 102 Aaa 7,944,510
New York State Medical Care Facilities Finance
Agency, Hospital and Nursing Home
(Montefiore Medical Center):
3,390,000 5.750%, 2/15/15 2/05 at 102 Aaa 3,413,188
4,175,000 5.750%, 2/15/25 2/05 at 102 Aaa 4,179,927
New York State Mortgage Agency:
225,000 8.375%, 10/01/17 1/98 at 102 Aa 239,810
390,000 8.100%, 10/01/17 4/98 at 102 Aa 415,420
3,500,000 New York State Mortgage Agency, Homeowner
Mortgage, 5.650%, 4/01/15 10/03 at 102 Aaa 3,520,370
New York State Thruway Authority:
2,000,000 5.750%, 4/01/13 4/04 at 102 Aaa 2,054,580
7,300,000 5.750%, 1/01/19 1/02 at 102 Aaa 7,342,778
3,950,000 5.500%, 1/01/23 1/02 at 100 Aaa 3,871,000
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
44
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York State Urban Development Corporation:
$ 3,850,000 6.700%, 1/01/12 1/02 at 102 Aaa $ 4,256,945
9,650,000 6.750%, 1/01/26 1/02 at 102 Aaa 10,673,479
New York State Urban Development Corporation,
Correctional Facilities:
1,500,000 7.250%, 1/01/14 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 1,693,530
1,000,000 5.250%, 1/01/14 No Opt. Call Aaa 982,320
575,000 7.000%, 1/01/17 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 644,127
2,000,000 7.500%, 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 2,275,640
2,000,000 Power Authority of the State of New York, General
Purpose, 6.500%, 1/01/19 1/02 at 102 Aaa 2,194,520
280,000 Albany Municipal Water Finance Authority,
Water and Sewer System, 7.500%, 12/01/17 12/98 at 102 Aaa 308,350
1,795,000 Albany Municipal Water Finance Authority
5.500%, 12/01/22 12/03 at 102 Aaa 1,763,982
1,250,000 Broome County, Certificates of Participation,
5.250%, 4/01/22 4/04 at 102 Aaa 1,179,688
2,250,000 Buffalo and Fort Erie Public Bridge Authority,
5.750%, 1/01/25 1/05 at 101 Aaa 2,279,700
1,000,000 Buffalo General Obligation, 6.150%, 2/01/04 1/01 at 101 Aaa 1,077,130
8,385,000 Buffalo Municipal Water Finance Authority,
Water System, 5.750%, 7/01/19 7/03 at 102 Aaa 8,441,431
2,000,000 Buffalo Sewer Authority, Sewer System,
5.000%, 7/01/12 7/03 at 100 Aaa 1,898,120
Camden Central School District,
General Obligation:
500,000 7.100%, 6/15/07 No Opt. Call Aaa 602,965
600,000 7.100%, 6/15/08 No Opt. Call Aaa 727,914
600,000 7.100%, 6/15/09 No Opt. Call Aaa 728,772
275,000 7.100%, 6/15/10 No Opt. Call Aaa 333,614
1,560,000 Dormitory Authority of the State of New York,
College and University (Pooled Capital Program),
7.800%, 12/01/05 12/98 at 102 Aaa 1,711,850
1,490,000 Dormitory Authority of the State of New York
(United Health Services), 7.350%, 8/01/29 2/00 at 102 AAA 1,625,232
1,490,000 Dormitory Authority of the State of New York
(Iona College), 7.625%, 7/01/09 7/98 at 102 Aaa 1,626,499
1,200,000 Dormitory Authority of the State of New York,
Educational Facilities (State University),
7.250%, 5/15/15 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 1,363,956
1,000,000 Dormitory Authority of the State of New York
(United Cerebral Palsey Association of
Westchester County), 6.200%, 7/01/12 7/02 at 102 Aaa 1,056,150
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Dormitory Authority of the State of New York
(Manhattanville College), 7.500%, 7/01/22
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa $ 1,149,720
Dormitory Authority of the State of New
York (City University System):
2,500,000 7.000%, 7/01/14 7/00 at 102 Aaa 2,772,850
1,000,000 6.500%, 7/01/14 7/96 at 100 Aaa 1,010,850
1,800,000 5.750%, 7/01/18 No Opt. Call Aaa 1,867,932
6,295,000 7.500%, 7/01/20 (Pre-refunded to 7/01/00) 7/00 at 102 Aaa 7,237,487
2,500,000 Dormitory Authority of the State of New
York (Cooper Union), 7.200%, 7/01/20 7/01 at 102 Aaa 2,835,325
Dormitory Authority of the State of New York,
Educational Facilities (State University):
2,500,000 5.250%, 5/15/15 No Opt. Call Aaa 2,447,975
1,200,000 7.000%, 5/15/18 (Pre-refunded to 5/15/00) 5/00 at 102 Aaa 1,352,472
2,000,000 6.500%, 5/15/19 (Pre-refunded to 5/15/00) 5/00 at 100 Aaa 2,182,140
5,000,000 Dormitory Authority of the State of New York,
(New York University), 6.250%, 7/01/09 7/01 at 102 Aaa 5,394,250
1,000,000 Dormitory Authority of the State of New York
(Fordham University), 7.200%, 7/01/15
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,137,910
4,640,000 Dormitory Authority of the State of New York,
(Mount Sinai School of Medicine),
5.000%, 7/01/21 7/04 at 102 Aaa 4,321,510
1,500,000 Dormitory Authority of the State of New York
(Sarah Lawrence College), 6.000%, 7/01/24 7/05 at 102 Aaa 1,568,325
2,000,000 Dormitory Authority of the State of New York
(Ellis Hospital), 5.600%, 8/01/25 8/05 at 102 Aaa 1,961,740
2,015,000 Dormitory Authority of the State of New York
(St. Vincents Hospital and Medical Center),
5.800%, 8/01/25 8/05 at 102 Aaa 2,049,416
1,000,000 Erie County Water Authority, Water Works,
6.750%, 12/01/14 12/09 at 100 Aaa 1,141,190
Glen Cove General Obligation:
445,000 5.500%, 6/15/09 No Opt. Call Aaa 466,605
455,000 5.600%, 6/15/10 No Opt. Call Aaa 478,942
470,000 5.625%, 6/15/11 No Opt. Call Aaa 488,838
500,000 Greece Central School District, General
Obligation, 6.000%, 6/15/09 No Opt. Call Aaa 551,420
Half Moon General Obligation:
385,000 6.500%, 6/01/09 No Opt. Call Aaa 445,114
395,000 6.500%, 6/01/10 No Opt. Call Aaa 455,072
395,000 6.500%, 6/01/11 No Opt. Call Aaa 453,326
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
46
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 600,000 Jamesville-Dewitt Central School District,
General Obligation, 5.750%, 6/15/04 No Opt. Call Aaa $ 652,914
1,000,000 Metropolitan Transportation Authority, Transit
Facilities Service Contract, 7.500%, 7/01/17 7/98 at 102 Aaa 1,089,560
10,340,000 Metropolitan Transportation Authority, Transit
Facilities 6.500%, 7/01/18 7/02 at 102 Aaa 11,404,296
Middle Country Central School District at
Centereach (Town of Brookhaven),
General Obligation:
475,000 6.900%, 12/15/07 No Opt. Call Aaa 568,988
475,000 6.900%, 12/15/08 No Opt. Call Aaa 571,781
Monroe County General Obligation:
375,000 6.500%, 6/01/15 6/01 at 102 Aaa 410,756
375,000 6.500%, 6/01/16 6/01 at 102 Aaa 411,491
350,000 6.500%, 6/01/17 6/01 at 102 Aaa 384,059
3,725,000 Montgomery, Otsego, Schoharie County Solid
Waste Management Authority, Solid Waste System,
7.250%, 1/01/14 (Pre-refunded to 1/01/00) 1/00 at 103 Aaa 4,228,918
Mount Sinai Union Free School District General
Obligation:
1,000,000 7.250%, 2/15/15 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 1,130,310
500,000 6.200%, 2/15/15 No Opt. Call Aaa 551,180
1,035,000 6.200%, 2/15/16 No Opt. Call Aaa 1,144,110
1,000,000 7.250%, 2/15/17 (Pre-refunded to 2/15/00) 2/00 at 102 Aaa 1,130,310
1,500,000 Nassau County General Obligation,
5.700%, 8/01/13 8/04 at 103 Aaa 1,566,060
4,840,000 Nassau County Industrial Development Agency,
Civic Facilities (Hofstra University Project),
6.750%, 8/01/11 8/01 at 102 Aaa 5,369,109
1,020,000 New Rochelle General Obligation,
6.200%, 8/15/22 8/04 at 102 Aaa 1,089,166
New York City General Obligation:
500,000 8.250%, 11/01/02 (Pre-refunded to 11/01/97) 11/97 at 101 1/2 Aaa 544,775
3,000,000 6.250%, 8/01/10 (Pre-refunded to 8/01/02) 8/02 at 101 1/2 Aaa 3,355,770
1,000,000 6.250%, 8/01/10 8/02 at 101 1/2 Aaa 1,067,160
3,520,000 5.750%, 5/15/12 5/03 at 101 1/2 Aaa 3,622,326
75,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 82,985
2,600,000 6.000%, 8/01/12 8/02 at 101 1/2 Aaa 2,721,342
1,300,000 7.000%, 10/01/15 No Opt. Call Aaa 1,405,859
2,000,000 7.000%, 10/01/16 10/99 at 100 Aaa 2,411,520
1,025,000 7.000%, 10/01/17 No Opt. Call Aaa 1,108,466
310,000 7.000%, 10/01/18 No Opt. Call Aaa 335,243
1,000,000 5.375%, 10/01/20 10/03 at 101 1/2 Aaa 957,880
1,000,000 New York City Educational Construction Fund
5.625%, 4/01/13 4/04 at 101 1/2 Aaa 1,016,100
</TABLE>
47
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York City Health and Hospitals Corporation:
$ 2,500,000 5.625%, 2/15/13 2/03 at 102 Aaa $ 2,522,700
11,980,000 5.750%, 2/15/22 2/03 at 102 Aaa 11,955,561
5,000,000 New York City Housing Development Corporation
Pass-Through Certificates, Multi-Family Housing,
FHA Insured 6.500%, 2/20/19 7/97 at 105 Aaa 5,984,600
1,000,000 New York City Housing Development Corporation
Multi-Family, FHA Insured, 5.850%, 5/01/26 5/03 at 102 Aaa 1,004,840
3,250,000 New York City Municipal Water Financing,
6.750%, 6/15/16 6/01 at 101 Aaa 3,601,890
New York City Municipal Water Finance
Authority, Water and Sewer System:
1,000,000 7.250%, 6/15/15 (Pre-refunded to 6/15/00) 6/00 at 101 1/2 Aaa 1,134,550
6,765,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 6,824,261
2,525,000 5.375%, 6/15/19 6/04 at 101 Aaa 2,440,185
4,650,000 5.500%, 6/15/20 6/02 at 100 Aaa 4,560,999
New York City Transit Authority Transit Facilities
(Livingston Plaza Project):
1,000,000 7.500%, 1/01/20 (Pre-refunded to 1/01/00) 1/00 at 102 Aaa 1,137,820
8,725,000 5.250%, 1/01/20 1/03 at 100 Aaa 8,188,849
2,200,000 New York City Trust for Cultural Resources
(American Museum of Natural History),
6.900%, 4/01/21 (Pre-refunded to 4/01/01) 4/01 at 102 Aaa 2,502,940
1,000,000 New York City Industrial Development Agency,
Civic Facility (USTA National Tennis Center
Incorporated Project), 6.375%, 11/15/14 11/04 at 102 Aaa 1,080,530
1,000,000 New York City Industrial Development Agency
(New School for Social Research),
5.750%, 9/01/15 9/05 at 102 Aaa 1,016,410
1,590,000 Niagara Falls General Obligation,
6.900%, 3/01/21 3/04 at 102 Aaa 1,807,019
5,725,000 Niagara Falls Bridge Commission, Toll Bridge
System Revenue, 6,125%, 10/01/19
(Pre-refunded to 10/01/02) 10/02 at 102 Aaa 6,398,203
North Hempstead General Obligation:
1,500,000 6.375%, 4/01/09 No Opt. Call Aaa 1,709,490
425,000 6.800%, 6/01/10 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 476,153
425,000 6.800%, 6/01/11 (Pre-refunded to 6/01/00) 6/00 at 102 Aaa 476,153
1,505,000 6.400%, 4/01/14 No Opt. Call Aaa 1,702,622
North Hempstead Solid Waste Management
Authority:
2,175,000 5.000%, 2/01/07 2/04 at 102 Aaa 2,192,705
1,825,000 5.000%, 2/01/12 2/04 at 102 Aaa 1,748,551
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
48
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nyack Union Free School District:
$ 625,000 6.500%, 4/01/12 4/02 at 102 Aaa $ 686,544
625,000 6.500%, 4/01/13 4/02 at 102 Aaa 686,894
625,000 6.500%, 4/01/14 4/02 at 102 Aaa 688,288
Rensselaer County General Obligation:
960,000 6.700%, 2/15/13 No Opt. Call Aaa 1,126,339
960,000 6.700%, 2/15/14 No Opt. Call Aaa 1,126,138
960,000 6.700%, 2/15/15 No Opt. Call Aaa 1,125,226
Rondout Valley Central School District,
General Obligation:
550,000 6.800%, 6/15/06 No Opt. Call Aaa 649,033
550,000 6.850%, 6/15/07 No Opt. Call Aaa 652,933
550,000 6.850%, 6/15/08 No Opt. Call Aaa 656,288
550,000 6.850%, 6/15/09 No Opt. Call Aaa 656,508
550,000 6.850%, 6/15/10 No Opt. Call Aaa 655,171
Suffolk County General Obligation:
1,000,000 6.900%, 4/01/01 4/00 at 102 Aaa 1,120,510
1,895,000 5.250%, 7/15/09 7/02 at 102 Aaa 1,913,419
600,000 6.150%, 5/01/10 5/03 at 102 Aaa 641,418
1,890,000 5.300%, 7/15/10 7/02 at 102 Aaa 1,901,699
1,630,000 5.400%, 4/01/11 4/02 at 102 Aaa 1,642,763
1,860,000 5.400%, 7/15/11 7/02 at 102 Aaa 1,874,954
1,000,000 5.400%, 7/15/12 7/02 at 102 Aaa 1,005,890
630,000 5.400%, 4/01/14 4/02 at 102 Aaa 628,595
625,000 5.400%, 4/01/15 4/02 at 102 Aaa 619,894
1,000,000 Suffolk County Industrial Development Agency,
Southwest Sewer System, 4.750%, 2/01/09 2/04 at 101 Aaa 963,010
Suffolk County Water Authority, Water System:
1,800,000 5.100%, 6/01/11 No Opt. Call Aaa 1,774,530
2,565,000 5.625%, 6/01/16 6/02 at 102 Aaa 2,558,613
3,700,000 5.000%, 6/01/17 6/03 at 102 Aaa 3,458,501
Triborough Bridge and Tunnel Authority, General
Purpose Revenue:
2,750,000 6.500%, 1/01/19 1/02 at 101 1/2 Aaa 3,007,095
2,000,000 7.000%, 1/01/20 (Pre-refunded to 1/01/01) 1/01 at 102 Aaa 2,273,580
1,175,000 7.000%, 1/01/21 (Pre-refunded to 1/01/01) 1/01 at 101 1/2 Aaa 1,330,934
8,650,000 Triborough Bridge and Tunnel Authority, Special
Obligation, 6.875%, 1/01/15 1/01 at 102 Aaa 9,607,205
1,750,000 Yonkers General Obligation, 7.375%, 12/01/09
(Pre-refunded to 12/01/00) 12/00 at 102 Aaa 2,022,405
- ---------------------------------------------------------------------------------------------------------------------------
$ 338,925,000 Total Investments - (Cost $333,979,266) - 97.3% 359,533,384
==============-------------------------------------------------------------------------------------------------------------
</TABLE>
49
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.9%
$ 3,500,000 New York City General Obligation Fiscal
1995B-B6 Insured, Adjustable Rate,
3.450%, 8/15/05+ VMIG-1 $ 3,500,000
1,500,000 New York City General Obligation, Variable Rate
Demand Bonds, 3.300%, 8/01/22+ VMIG-1 1,500,000
200,000 New York City General Obligation Bonds,
Adjustable Rate, 3.450%, 8/15/22+ VMIG-1 200,000
1,800,000 Port Authority of New York and New
Jersey, Versatile Structure Obligations,
3.050%, 5/01/19+ A-1+ 1,800,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 7,000,000 Total Temporary Investments - 1.9% 7,000,000
==============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 2,930,866
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 369,464,250
===========================================================================================================================
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 155 $355,089,074 99%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 4 4,444,310 1
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 159 $359,533,384 100%
===========================================================================================================================
</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.
* Optional call provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
50
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN OHIO TAX-FREE VALUE FUND
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Ohio Air Quality Development Authority,
Pollution Control (Ohio Edison Company):
$ 2,000,000 7.450%, 3/01/16 3/00 at 102 Aaa $ 2,233,060
750,000 7.625%, 7/01/23 7/99 at 102 Baa3 803,318
3,000,000 5.625%, 11/15/29 11/03 at 102 Aaa 2,977,290
1,750,000 Ohio Air Quality Development Authority,
Pollution Control (Columbus Southern
Power Company), 6.375%, 12/01/20 12/02 at 102 Aaa 1,882,650
1,000,000 Ohio Air Quality Development Authority,
Pollution Control (Ohio Power Company),
7.400%, 8/01/09 8/99 at 102 Baa1 1,060,600
2,000,000 Ohio Air Quality Development Authority,
Pollution Control (Cleveland Electric
Illuminating Company), 8.000%, 12/01/13 6/02 at 103 Aaa 2,399,380
1,000,000 Ohio Building Authority (State Correctional
Facilities), 7.125%, 9/01/09 9/96 at 102 A1 1,033,980
1,250,000 Ohio Capital Corporation for Housing, Multi-
Family Housing, 7.600%, 11/01/23 11/97 at 105 AAA 1,333,663
Ohio General Obligation:
1,475,000 6.650%, 8/01/05 No Opt. Call Aa 1,710,764
1,000,000 6.000%, 8/01/10 No Opt. Call Aa 1,090,530
250,000 Ohio Higher Educational Facility Commission
(Ohio Dominican College), 8.500%, 12/01/07
(Pre-refunded to 12/01/97) 12/97 at 102 N/R 274,655
400,000 Ohio Higher Educational Facility Commission
(John Carroll University), 9.250%, 10/01/07
(Pre-refunded to 10/01/97) 10/97 at 102 A 442,048
1,000,000 Ohio Higher Educational Facility Commission
(Ohio Wesleyan University), 7.650%, 11/15/07 11/97 at 102 Aaa 1,085,360
1,000,000 Ohio Higher Educational Facility Commission
(Ohio Northern University), 7.300%, 5/15/10
(Pre-refunded to 5/15/00) 5/00 at 100 Aaa 1,119,240
1,750,000 Ohio Higher Educational Facility Commission
(University of Dayton), 5.800%, 12/01/19 12/04 at 102 Aaa 1,784,195
Ohio Housing Finance Agency, Single Family
Mortgage (GNMA):
695,000 7.500%, 9/01/13 9/00 at 102 AAA 742,295
850,000 7.400%, 9/01/15 3/00 at 102 AAA 906,168
350,000 7.050%, 9/01/16 9/01 at 102 Aaa 372,918
2,500,000 Ohio Turnpike Commission, 5.750%, 2/15/24 2/04 at 102 AA-- 2,557,975
1,750,000 Ohio Water Development Authority
(Dayton Power and Light Company),
6.400%, 8/15/27 8/02 at 102 AA-- 1,877,575
100,000 Ohio IOOF Home (FHA-Insured), 8.150%, 8/01/02 8/97 at 103 AAA 107,156
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Adams County/Ohio Valley School District,
General Obligation:
$ 2,000,000 7.000%, 12/01/15 No Opt. Call Aaa $ 2,397,860
3,865,000 5.250%, 12/01/21 12/05 at 102 Aaa 3,719,560
3,955,000 Akron General Obligation, Limited Tax,
6.750%, 12/01/14 12/04 at 102 Aaa 4,496,400
1,500,000 Akron Waterworks System, 6.550%, 3/01/12
(Pre-refunded to 3/01/01) 3/01 at 102 Aaa 1,676,235
3,350,000 Anthony Wayne Local School District, General
Obligation, 5.750%, 12/01/24 12/05 at 101 Aaa 3,393,919
1,000,000 Aurora City School District, General Obligation,
5.800%, 12/01/16 12/05 at 102 Aaa 1,025,190
1,475,000 Bedford Hospital (Community Hospital),
8.500%, 5/15/09 (Pre-refunded to 5/15/00) 5/00 at 102 N/R 1,667,960
Bellefontaine Sewer System:
1,000,000 6.800%, 12/01/07 12/02 at 101 Baa1 1,072,040
1,000,000 6.900%, 12/01/11 12/02 at 101 Baa1 1,072,360
2,500,000 Buckeye Valley Local School District, General
Obligation, 6.850%, 12/01/15 No Opt. Call Aaa 2,955,350
1,250,000 Butler County Hospital Facilities (Fort Hamilton-
Hughes Memorial Hospital), 7.500%, 1/01/10 1/02 at 102 Baa 1,340,863
1,000,000 Canal Winchester Local School District, General
Obligation, Unlimited Tax, 7.100%, 12/01/13
(Pre-refunded to 12/01/01) 12/01 at 102 Aaa 1,158,100
1,000,000 Centerville General Obligation, 5.625%, 12/01/26 12/05 at 101 Aaa 1,001,610
1,000,000 Clermont County, Road Improvement,
Limited Tax, 7.125%, 9/01/11
(Pre-refunded to 9/01/00) 9/00 at 102 Aaa 1,136,400
Clermont County Sewer System Revenue:
2,000,000 7.375%, 12/01/20 (Pre-refunded to 12/01/00) 12/00 at 102 Aaa 2,305,680
1,000,000 7.100%, 12/01/21 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 1,158,100
1,000,000 Clermont County Waterworks System,
6.625%, 12/01/13 (Pre-refunded to 12/01/01) 12/01 at 102 Aaa 1,134,100
2,000,000 Cleveland City School District, General Obligation,
Unlimited Tax, 5.875%, 12/01/11 12/02 at 102 Aaa 2,078,820
1,500,000 Cleveland Public Power System,
7.000%, 11/15/24 11/04 at 102 Aaa 1,728,555
Cleveland Waterworks Mortgage:
1,000,000 6.500%, 1/01/11 1/02 at 102 Aaa 1,100,490
1,750,000 6.500%, 1/01/21 (Pre-refunded to 1/01/02) 1/02 at 102 Aaa 1,966,370
1,000,000 Coldwater Exempted Village School District,
Unlimited Tax, 7.000%, 12/01/13
(Pre-refunded to 12/01/99) 12/99 at 102 Aaa 1,119,690
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
52
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,500,000 Columbus General Obligation, Unlimited Tax,
6.500%, 1/01/10 1/02 at 102 Aaa $ 1,625,145
2,050,000 Columbus General Obligation, 5.250%, 9/15/18 9/03 at 102 Aaa 2,006,212
1,500,000 Cuyahoga County General Obligation,
Unlimited Tax,
7.000%, 10/01/13 (Pre-refunded to 10/01/01) 10/01 at 102 N/R 1,722,885
1,000,000 Cuyahoga County General Obligation,
5.250%, 10/01/13 No Opt. Call AA 983,610
1,000,000 Cuyahoga County General Obligation, Public
Improvements, 5.250%, 11/15/15 11/05 at 102 Aa 972,990
1,250,000 Cuyahoga County, Hospital Improvement
(Deaconess Hospital), 7.450%, 10/01/18
(Pre-refunded to 10/01/00) 10/00 at 103 A1 1,448,888
2,750,000 Cuyahoga County Hospital (Meridia Health
System), 7.250%, 8/15/19 8/00 at 102 A1 2,993,155
2,000,000 Dayton Airport Refunding Bonds (James
M. Cox-Dayton International Airport),
5.250%, 12/01/15 12/05 at 101 Aaa 1,934,200
750,000 Defiance Waterworks System, General Obligation,
Unlimited Tax, 6.200%, 12/01/20 12/04 at 102 Aaa 806,955
1,110,000 Fairborn General Obligation, Limited Tax,
7.000%, 10/01/11 10/02 at 102 Aaa 1,265,777
2,790,000 Franklin County Limited Tax, 5.375%, 12/01/20 12/08 at 102 Aaa 2,806,712
Franklin County, Hospital Facilities (Ohio
Presbyterian Retirement Services):
1,350,000 8.750%, 7/01/21 7/01 at 103 N/R 1,448,064
1,500,000 6.500%, 7/01/23 7/03 at 102 N/R 1,423,830
500,000 Franklin County, Refunding and Improvement
Bonds (Riverside Hospital), 7.250%, 5/15/20 5/00 at 102 Aaa 555,865
705,000 Franklin County, FHA Insured (Worthington
Village Nursing Home), 7.000%, 8/01/16 8/00 at 102 N/R 732,107
1,000,000 Franklin County, Hospital Facilities
(Riverside United Methodist Hospital),
5.750%, 5/15/20 5/03 at 102 Aa 983,860
1,000,000 Franklin County, (OCLC Online Computer
Library Center Project), 7.200%, 7/15/06 7/01 at 100 N/R 1,079,340
250,000 Fremont Sewerage System, 8.100%, 12/01/07
(Pre-refunded to 12/01/97) 12/97 at 102 A-- 272,973
1,000,000 Gahanna-Jefferson School District, General
Obligation, Unlimited Tax, 7.125%, 12/01/14
(Pre-refunded to 12/01/00) 12/00 at 102 A1 1,138,440
3,000,000 Garfield Heights (Marymount Hospital),
6.650%, 11/15/11 11/02 at 102 A 3,156,420
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
53
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO TAX-FREE VALUE FUND-CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Geauga County General Obligation,
5.625%, 12/01/15 12/05 at 102 Aa $ 1,009,330
Grandview Heights City School District, General
Obligation:
2,000,000 6.100%, 12/01/19 12/05 at 101 AA 2,102,060
1,020,000 5.550%, 12/01/19 No Opt. Call AA 1,036,820
250,000 Grandview Heights, Library Building Mortgage,
8.250%, 12/01/07 (Pre-refunded to 12/01/97) 12/97 at 102 N/R 273,918
1,000,000 Greenville Wastewater System, 6.350%, 12/01/17 10/02 at 102 Aaa 1,074,990
1,495,000 Hamilton County, FHA-Insured (Judson Care
Center), 7.800%, 8/01/19 8/00 at 101 5/16 A+ 1,615,168
400,000 Hubbard Sewer System, 8.800%, 11/15/17 5/98 at 102 N/R 437,992
1,000,000 Indian Lake Local School District,
General Obligation, 5.375%, 12/01/23 12/06 at 101 Aaa 975,970
1,000,000 Indian Valley Local School District, General
Obligation, 5.750%, 12/01/19 12/05 at 102 Aaa 1,018,300
1,000,000 Kent State University, General Receipts,
6.500%, 5/01/22 5/02 at 102 Aaa 1,101,050
1,000,000 Kettering City School District, General Obligation,
Unlimited Tax, 5.300%, 12/01/14 12/05 at 101 Aaa 978,410
3,630,000 Kings Local School District, General Obligation,
5.500%, 12/01/21 12/05 at 100 Aaa 3,602,485
500,000 Kirtland Local School District, General Obligation,
Unlimited Tax, 7.500%, 12/01/09 12/99 at 102 A1 552,840
1,500,000 Lakewood General Obligation, 6.500%, 12/01/12 12/02 at 102 Aa 1,657,650
1,000,000 Lakota Local School District, General Obligation,
Unlimited Tax, 6.125%, 12/01/17 12/05 at 100 Aaa 1,054,710
500,000 Lorain General Obligation, 5.650%, 12/01/15 12/05 at 102 Aaa 509,725
1,500,000 Lorain Hospital (Lakeland Community Hospital),
6.500%, 11/15/12 11/02 at 102 A1 1,558,890
500,000 Lorain Sewer System, 8.750%, 4/01/11 4/98 at 102 BBB-- 557,500
1,000,000 Lucas County General Obligation, Limited Tax,
6.650%, 12/01/12 12/02 at 102 A 1,046,070
1,500,000 Lucas County General Obligation,
5.400%, 12/01/15 12/05 at 102 Aaa 1,473,945
1,000,000 Mahoning County General Obligation,
Limited Tax, 7.200%, 12/01/09 12/99 at 102 Aaa 1,109,720
2,000,000 Mahoning County, Hospital Improvement
(St. Elizabeth Hospital Medical Center),
7.375%, 12/01/09 6/96 at 102 A1 2,052,260
2,355,000 Mahoning County, Hospital Improvement
(YHA Inc. Project), 7.000%, 10/15/14 10/00 at 102 Aaa 2,616,264
1,000,000 Marion County (United Church Homes, Inc. Project),
6.375%, 11/15/10 11/03 at 102 BBB-- 1,008,520
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
54
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Marion County, Health Facilities (United Church
Homes, Inc.):
$ 1,150,000 8.875%, 12/01/12 (Pre-refunded to 12/01/99) 12/99 at 103 N/R $ 1,358,622
750,000 6.300%, 11/15/15 11/03 at 102 BBB-- 724,095
1,000,000 Marysville Exempted Village School District, General
Obligation, Unlimited Tax, 7.200%, 12/01/10
(Pre-refunded to 12/01/00) 12/00 at 102 Aaa 1,145,360
1,250,000 Marysville Water System, 7.050%, 12/01/21 2/01 at 101 Aaa 1,434,675
1,000,000 Mentor Village Exempted School District,
General Obligation, Unlimited Tax,
7.400%, 12/01/11 (Pre-refunded to 12/01/02) 12/02 at 100 Aaa 1,133,490
1,000,000 Montgomery County Water (Greater Moraine-Beaver
Creek Sewer District), 6.250%, 11/15/17 11/02 at 102 Aaa 1,067,300
3,000,000 Mount Vernon (Knox Community Hospital),
7.875%, 6/01/12 6/96 at 103 N/R 3,099,690
2,265,000 Napolean (Luthern Orphan's and Old Folks Home
Project), 6.875%, 8/01/23 9/04 at 102 Aa 2,449,915
1,000,000 North Olmstead, General Obligation, Limited Tax,
6.250%, 12/15/12 12/02 at 102 Aaa 1,080,350
1,000,000 Northeast Ohio Regional Sewer District, Wastewater
Improvement, 5.600%, 11/15/16 11/05 at 101 Aaa 1,001,180
500,000 Ottawa County General Obligation,
5.750%, 12/01/14 12/05 at 102 Aaa 512,630
1,000,000 Parma General Obligation, Limited Tax,
7.600%, 12/01/11 12/00 at 102 A 1,158,680
1,750,000 Pickerington Local School District, General
Obligation, Unlimited Tax, 6.750%, 12/01/16 12/01 at 102 A 1,875,808
1,000,000 Revere Local School District, General Obligation,
Unlimited Tax, 6.000%, 12/01/16 12/03 at 102 Aaa 1,044,560
1,500,000 Reynoldsburg City School District, General
Obligation, Unlimited Tax, 6.550%, 12/01/17 12/02 at 102 Aaa 1,661,925
1,200,000 Ridgemont Local School District, General
Obligation, Unlimited Tax, 7.250%, 12/01/14 12/02 at 102 N/R 1,286,472
735,000 Salem Sewer System, 7.500%, 11/01/11
(Pre-refunded to 11/01/96) 11/96 at 102 N/R 769,176
1,000,000 Springfield City School District, General Obligation,
Unlimited Tax, 6.600%, 12/01/12 12/01 at 102 Aaa 1,109,790
2,340,000 Stow General Obligation, 6.200%, 12/01/20 12/05 at 102 A1 2,464,651
3,080,000 Sylvania City School District, General Obligation,
5.750%, 12/01/22 12/05 at 101 Aaa 3,120,379
1,070,000 Trumbull County General Obligation,
7.000%, 12/01/04 No Opt. Call Aaa 1,260,449
1,000,000 Trumbull County Hospital (Trumbull Memorial
Hospital), 6.900%, 11/15/12 11/01 at 102 Aaa 1,120,840
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 750,000 Tuscarawas County, Hospital Facilities (Union
Hospital), 6.500%, 10/01/21 10/03 at 102 Baa $ 727,688
University of Cincinnati, General Receipts:
1,000,000 7.300%, 6/01/09 (Pre-refunded to 6/01/99) 6/99 at 100 AA-- 1,098,110
1,000,000 6.300%, 6/01/12 12/02 at 102 AA-- 1,077,520
1,600,000 5.500%, 6/01/15 6/05 at 101 AA-- 1,587,648
1,500,000 University of Toledo, General Receipts,
5.350%, 6/01/25 6/04 at 102 Aaa 1,430,670
2,650,000 Walnut Township Local School District, General
Obligation, 6.200%, 12/01/20 No Opt. Call Aaa 2,950,961
1,950,000 Warren County, Hospital Facilities, Otterbein Home
Project, 7.200%, 7/01/11 7/01 at 102 Aa1 2,125,363
Warren General Obligation, Limited Tax:
1,500,000 7.750%, 11/01/10 (Pre-refunded to 11/01/00) 11/00 at 102 BBB+ 1,756,740
250,000 8.625%, 11/15/13 (Pre-refunded to 11/15/98) 11/98 at 102 BBB+ 284,936
2,500,000 Washington Water System, 5.375%, 12/01/19 12/03 at 101 Aaa 2,408,900
750,000 West Geauga Local School District, General
Obligation, Unlimited Tax, 5.950%, 11/01/12 11/04 at 102 Aaa 786,480
500,000 Wooster City School District, General Obligation,
Unlimited Tax, 6.500%, 12/01/17 12/02 at 102 Aaa 552,243
3,000,000 Puerto Rico Electric Power Authority,
5.500%, 7/01/25 7/05 at 100 A-- 2,879,670
- ---------------------------------------------------------------------------------------------------------------------------
$ 168,710,000 Total Investments - (Cost $167,189,364) - 98.7% 179,829,453
===========================================================================================================================
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.4%
$ 500,000 Cuyahoga County, University Hospital of
Cleveland, Variable Rate Demand Bonds,
3.400%, 1/01/16+ VMIG-1 500,000
300,000 Ohio Air Quality Development Authority
(The Cincinnati Gas and Electric Company),
Variable Rate Demand Bonds, 3.450%, 9/01/30+ VMIG-1 300,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 800,000 Total Temporary Investments - 0.4% 800,000
==============-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 1,530,461
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 182,159,914
===========================================================================================================================
</TABLE>
56
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 66 $103,834,421 58%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 16 24,321,720 13
PORTFOLIO OF A+ A1 9 14,858,272 8
INVESTMENTS A, A-- A, A2, A3 7 10,831,669 6
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 11 10,408,660 6
TEMPORARY Non-rated Non-rated 13 15,574,711 9
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL 122 $179,829,453 100%
===========================================================================================================================
</TABLE>
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying prices at later dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
57
<PAGE>
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $226,239,426 $218,186,376 $ 78,218,271 $ 63,715,206
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 400,000 7,900,000 2,600,000 1,500,000
Cash - 401,476 114,539 119,718
Receivables:
Interest 3,966,815 3,247,317 1,092,435 1,001,565
Shares sold 23,967 144,099 37,818 11,460
Investments sold - - - -
Other assets 12,536 9,831 4,176 2,806
------------ ------------ ------------ ------------
Total assets 230,642,744 229,889,099 82,067,239 66,350,755
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased - 5,215,642 - -
Shares reacquired 40,000 56,538 24,922 -
Cash overdraft 68,006 - - -
Accrued expenses:
Management fees (note 7) 100,051 97,484 35,880 29,076
Other 52,068 50,374 43,994 25,856
Dividends payable 599,330 536,574 261,287 196,115
------------ ------------ ------------ ------------
Total liabilities 859,455 5,956,612 366,083 251,047
------------ ------------ ------------ ------------
Net assets (note 8) $229,783,289 $223,932,487 $ 81,701,156 $ 66,099,708
============ ============ ============ ============
Class A Shares (note 1)
Net Assets $ 12,709,245 $ 17,250,452 $ 4,289,634 $ 5,290,906
============ ============ ============ ============
Shares outstanding 1,201,563 1,603,198 431,437 504,138
============ ============ ============ ============
Net asset value and redemption price per share $ 10.58 $ 10.76 $ 9.94 $ 10.49
============ ============ ============ ============
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price) $ 11.08 $ 11.27 $ 10.41 $ 10.98
============ ============ ============ ============
Class C Shares (note 1)
Net Assets $ 684,050 $ 1,040,354 $ 638,184 $ 706,398
============ ============ ============ ============
Shares outstanding 64,678 97,466 64,525 67,455
============ ============ ============ ============
Net asset value, offering and redemption price per share $ 10.58 $ 10.67 $ 9.89 $ 10.47
============ ============ ============ ============
Class R Shares (note 1)
Net Assets $216,389,994 $205,641,681 $ 76,773,338 $ 60,102,404
============ ============ ============ ============
Shares outstanding 20,411,745 19,147,536 7,743,405 5,724,133
============ ============ ============ ============
Net asset value and redemption price per share $ 10.60 $ 10.74 $ 9.91 $ 10.50
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
58
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------
NY NY INS OH
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $165,378,435 $359,533,384 $179,829,453
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 3,800,000 7,000,000 800,000
Cash 112,018 221,918 141,353
Receivables:
Interest 2,344,826 4,042,665 2,940,082
Shares sold 195,831 53,593 24,037
Investments sold - - 115,000
Other assets 5,854 23,239 7,506
------------ ------------ ------------
Total assets 171,836,964 370,874,799 183,857,431
------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased - - 993,430
Shares reacquired 2,756 45,457 701
Cash overdraft - - -
Accrued expenses:
Management fees (note 7) 74,192 158,596 79,739
Other 68,252 90,386 75,057
Dividends payable 538,521 1,116,110 548,590
------------ ------------ ------------
Total liabilities 683,721 1,410,549 1,697,517
------------ ------------ ------------
Net assets (note 8) $171,153,243 $369,464,250 $182,159,914
============ ============ ============
Class A Shares (note 1)
Net Assets $ 15,731,737 $ 24,746,961 $ 12,904,370
============ ============ ============
Shares outstanding 1,483,039 2,332,442 1,217,784
============ ============ ============
Net asset value and redemption price per share $ 10.61 $ 10.61 $ 10.60
============ ============ ============
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price) $ 11.11 $ 11.11 $ 11.10
============ ============ ============
Class C Shares (note 1)
Net Assets $ 645,881 $ 1,369,280 $ 2,163,317
============ ============ ============
Shares outstanding 60,727 129,089 205,074
============ ============ ============
Net asset value, offering and redemption price per share $ 10.64 $ 10.61 $ 10.55
============ ============ ============
Class R Shares (note 1)
Net Assets $154,775,625 $343,348,009 $167,092,227
============ ============ ============
Shares outstanding 14,548,997 32,374,299 15,788,804
============ ============ ============
Net asset value and redemption price per share $ 10.64 $ 10.61 $ 10.58
============ ============ ============
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
59
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Year ended February 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 13,781,032 $ 12,733,263 $ 4,837,922 $ 3,805,611
------------ ------------ ------------ ------------
Expenses (note 2):
Management fees (note 7) 1,202,873 1,158,688 426,738 347,740
12b-1 distribution and service fees (note 1) 23,161 32,428 9,341 14,370
Shareholders' servicing agent fees and expenses 151,174 130,018 73,530 56,187
Custodian's fees and expenses 85,828 68,050 51,005 49,007
Directors' fees and expenses (note 7) 4,158 3,876 2,710 1,955
Professional fees 28,924 30,203 16,976 13,484
Shareholders' reports - printing and mailing expenses 76,149 70,338 56,416 31,903
Federal and state registration fees 3,918 2,763 9,534 1,469
Portfolio insurance expense - 17,622 - 4,854
Other expenses 9,757 14,743 4,937 7,918
------------ ------------ ------------ ------------
Total expenses before expense reimbursement 1,585,942 1,528,729 651,187 528,887
Expense reimbursement from investment adviser (note 7) (3,302) (1,695) (59,879) (788)
------------ ------------ ------------ ------------
Net expenses 1,582,640 1,527,034 591,308 528,099
------------ ------------ ------------ ------------
Net investment income 12,198,392 11,206,229 4,246,614 3,277,512
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions, net
of taxes, if applicable (notes 1 and 5) 1,855,177 764,418 (217,900) 12,456
Net change in unrealized appreciation or depreciation of
investments 8,120,195 9,456,488 3,250,694 2,682,527
------------ ------------ ------------ ------------
Net gain from investments 9,975,372 10,220,906 3,032,794 2,694,983
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 22,173,764 $ 21,427,135 $ 7,279,408 $ 5,972,495
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------
NY NY INS OH
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 10,173,134 $ 21,352,872 $ 10,738,180
------------ ------------ ------------
Expenses (note 2):
Management fees (note 7) 882,509 1,940,010 956,869
12b-1 distribution and service fees (note 1) 30,739 51,219 35,618
Shareholders' servicing agent fees and expenses 143,133 214,972 172,725
Custodian's fees and expenses 58,808 71,270 56,916
Directors' fees and expenses (note 7) 1,440 6,208 1,008
Professional fees 24,971 37,406 25,755
Shareholders' reports - printing and mailing expenses 99,517 102,967 105,217
Federal and state registration fees 2,874 7,586 3,245
Portfolio insurance expenses - 7,559 -
Other expenses 8,233 18,530 8,030
------------ ------------ ------------
Total expenses before expense reimbursement 1,252,224 2,457,727 1,365,383
Expense reimbursement from investment adviser (note 7) (29,700) - (42,592)
------------ ------------ ------------
Net expenses 1,222,524 2,457,727 1,322,791
------------ ------------ ------------
Net investment income 8,950,610 18,895,145 9,415,389
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 5) 1,772,126 973,136 730,235
Net change in unrealized appreciation or depreciation of
investments 5,658,638 15,965,392 6,013,907
------------ ------------ ------------
Net gain from investments 7,430,764 16,938,528 6,744,142
------------ ------------ ------------
Net increase in net assets from operations $ 16,381,374 $ 35,833,673 $16,159,531
============ ============ ===========
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
CA CA INS
- ---------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/29/96 2/28/95 2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 12,198,392 $ 12,056,682 $ 11,206,229 $ 11,038,593
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 1,855,177 (2,621,487) 764,418 (1,106,384)
Net change in unrealized appreciation or depreciation
of investments 8,120,195 (8,272,724) 9,456,488 (6,870,030)
------------ ------------ ------------ ------------
Net increase in net assets from operations 22,173,764 1,162,471 21,427,135 3,062,179
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Class A (388,705) (40,773) (496,274) (59,786)
Class C (18,278) (2,883) (28,991) (4,199)
Class R (11,713,501) (12,099,560) (10,613,497) (10,954,036)
From accumulated net realized gains from investment
transactions:
Class A - (6,186) - (2,542)
Class C - (231) - (317)
Class R - (1,542,643) - (545,843)
In excess of net realized gains from investment
transactions:
Class A - - - -
Class C - - - -
Class R - - - -
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (12,120,484) (13,692,276) (11,138,762) (11,566,723)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares:
Class A 9,631,213 3,153,792 12,814,061 4,571,343
Class C 518,671 189,814 927,664 277,611
Class R 22,522,458 24,628,063 12,331,198 21,455,944
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment
income and from net realized gains from investment
transactions:
Class A 173,826 17,920 248,069 24,201
Class C 13,296 1,844 16,740 1,935
Class R 7,264,916 8,806,336 6,444,797 7,133,691
------------ ------------ ------------ ------------
40,124,380 36,797,769 32,782,529 33,464,725
------------ ------------ ------------ ------------
Cost of shares redeemed:
Class A (567,970) (117,370) (1,021,240) (71,333)
Class C (64,962) (1,036) (167,154) (68,234)
Class R (31,186,974) (31,154,367) (21,853,091) (29,032,260)
------------ ------------ ------------ ------------
(31,819,906) (31,272,773) (23,041,485) (29,171,827)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets derived from Fund
share transactions 8,304,474 5,524,996 9,741,044 4,292,898
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 18,357,754 (7,004,809) 20,029,417 (4,211,646)
Net assets at the beginning of year 211,425,535 218,430,344 203,903,070 208,114,716
------------ ------------ ------------ ------------
Net assets at the end of year $229,783,289 $211,425,535 $223,932,487 $203,903,070
============ ============ ============ ============
Balance of undistributed net investment income at end of year $ 142,955 $ 65,047 $ 134,147 $ 66,680
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ----------------------------------------------------------------------------------------------------------------------------
MA MA INS
- ---------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/29/96 2/28/95 2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,246,614 $ 4,066,454 $ 3,277,512 $ 3,106,605
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (217,900) (558,617) 12,456 (212,554)
Net change in unrealized appreciation or depreciation
of investments 3,250,694 (2,393,115) 2,682,527 (1,878,784)
----------- ------------ ----------- -----------
Net increase in net assets from operations 7,279,408 1,114,722 5,972,495 1,015,267
----------- ------------ ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From net investment income:
Class A (139,213) (16,122) (174,644) (22,806)
Class C (11,360) (1,197) (22,692) (5,217)
Class R (4,149,329) (4,021,155) (3,106,193) (3,099,363)
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 (4,299,902) (4,038,474) (3,303,529) (3,127,386)
----------- ------------ ----------- -----------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares:
Class A 3,487,963 1,057,696 3,509,564 1,906,377
Class C 510,754 144,012 359,914 324,825
Class R 7,760,983 10,510,784 3,473,819 7,040,265
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment
income and from net realized gains from investment
transactions:
Class A 75,540 8,778 104,279 11,338
Class C 7,603 594 20,520 2,330
Class R 2,962,447 2,815,745 2,184,979 2,160,636
----------- ------------ ----------- -----------
14,805,290 14,537,609 9,653,075 11,445,771
----------- ------------ ----------- -----------
Cost of shares redeemed:
Class A (436,265) (32,507) (415,735) (37,958)
Class C (33,924) - (32,222) -
Class R (8,395,795) (10,741,355) (5,205,452) (8,119,665)
----------- ------------ ----------- -----------
(8,865,984) (10,773,862) (5,653,409) (8,157,623)
----------- ------------ ----------- -----------
Net increase (decrease) in net assets derived from Fund
share transactions 5,939,306 3,763,747 3,999,666 3,288,148
----------- ------------ ----------- -----------
Net increase (decrease) in net assets 8,918,812 839,995 6,668,632 1,176,029
Net assets at the beginning of year 72,782,344 71,942,349 59,431,076 58,255,047
----------- ------------ ----------- -----------
Net assets at the end of year $81,701,156 $ 72,782,344 $66,099,708 $59,431,076
=========== ============ =========== ===========
Balance of undistributed net investment income at end of year $ 2,984 $ 56,272 $ 1,505 $ 27,522
=========== ============ =========== ===========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
63
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
NY NY INS
- ---------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/29/96 2/28/95 2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 8,950,610 $ 8,356,495 $ 18,895,145 $ 19,887,434
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 1,772,126 (1,122,982) 973,136 691,691
Net change in unrealized appreciation or depreciation of
investments 5,658,638 (6,026,320) 15,965,392 (17,661,749)
------------ ------------ ------------ ------------
Net increase from net assets from operations 16,381,374 1,207,193 35,833,673 2,917,376
------------ ------------ ------------ ------------
DISTRIBUTION TO SHAREHOLDERS (note 1)
From net investment income:
Class A (551,771) (35,341) (834,291) (93,178)
Class C (18,002) (818) (36,998) (3,586)
Class R (8,358,840) (8,216,539) (18,227,897) (19,795,360)
From accumulated net realized gains from investment
transactions:
Class A - (2,464) (51,671) (11,988)
Class C - (28) (2,889) (504)
Class R - (697,769) (861,604) (1,367,629)
In excess of net realized gains from investment
transactions:
Class A - - (4,745) (483)
Class C - - (265) (20)
Class R - - (79,130) (55,065)
------------ ------------ ------------ ------------
Decrease in net assets from distributions to shareholders (8,928,613) (8,952,959) (20,099,490) (21,327,813)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares:
Class A 13,070,637 3,107,225 18,519,780 7,035,288
Class C 556,433 81,795 1,180,461 271,337
Class R 12,367,225 26,513,287 13,478,031 34,286,843
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment
income and from net realized gains from investment
transactions:
Class A 358,186 18,206 621,995 61,394
Class C 12,262 417 23,992 1,940
Class R 6,297,279 6,975,322 14,466,972 16,604,261
------------ ------------ ------------ ------------
32,662,022 36,696,252 48,291,231 58,261,063
------------ ------------ ------------ ------------
Cost of shares redeemed:
Class A (1,336,675) (51,915) (2,316,785) (99,736)
Class C (23,961) - (153,831) -
Class R (20,329,583) (22,466,951) (44,754,684) (75,263,107)
------------ ------------ ------------ ------------
(21,690,219) (22,518,866) (47,225,300) (75,362,843)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets derived from Fund
share transactions 10,971,803 14,177,386 1,065,931 (17,101,780)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 18,424,564 6,431,620 16,800,114 (35,512,217)
Net assets at the beginning of year 152,728,679 146,297,059 352,664,136 388,176,353
------------ ------------ ------------ ------------
Net assets at the end of year $171,153,243 $152,728,679 $369,464,250 $352,664,136
============ ============ ============ ============
Balance of undistributed net investment income at end of year $ 126,818 $ 104,821 $ 59,448 $ 263,489
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
64
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------
OH
- ---------------------------------------------------------------------------------------------
Year ended Year ended
2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 9,415,389 $ 9,142,413
Net realized gain (loss) from investment transactions,
net of taxes, if applicable 730,235 (967,375)
Net change in unrealized appreciation or depreciation
of investments 6,013,907 (5,055,416)
------------ ------------
Net increase in net assets from operations 16,159,531 3,119,622
------------ ------------
DISTRIBUTION TO SHAREHOLDERS (note 1)
From net investment income:
Class A (435,348) (58,833)
Class C (62,605) (9,333)
Class R (8,957,352) (9,076,904)
From accumulated net realized gains from investment
transactions:
Class A - (4,637)
Class C - (879)
Class R - (652,495)
In excess of net realized gains from investment
transactions:
Class A - -
Class C - -
Class R - -
------------ ------------
Decrease in net assets from distributions to shareholders (9,455,305) (9,803,081)
------------ ------------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares:
Class A 8,850,862 4,240,889
Class C 1,260,641 871,689
Class R 10,592,955 15,813,517
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment
income and from net realized gains from investment
transactions:
Class A 253,231 28,946
Class C 49,706 6,902
Class R 6,293,847 6,935,311
------------ ------------
27,301,242 27,897,254
------------ ------------
Cost of shares redeemed:
Class A (809,723) (115,343)
Class C (95,567) (3,158)
Class R (18,392,616) (21,090,544)
------------ ------------
(19,297,906) (21,209,045)
------------ ------------
Net increase (decrease) in net assets derived from Fund
share transactions 8,003,336 6,688,209
------------ ------------
Net increase (decrease) in net assets 14,707,562 4,750
Net assets at the beginning of year 167,452,352 167,447,602
------------ ------------
Net assets at the end of year $182,159,914 $167,452,352
============ ============
Balance of undistributed net investment income at end of year $ 68,716 $ 108,632
============ ============
- ---------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At February 29, 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 in a 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 using the specific identification
method. Securities purchased 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 their purchase commitments. At February 29, 1996,
such purchase commitments in California Insured amount to $5,215,642. There were
no such purchase commitments in any of the other Funds.
66
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
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 distribution to shareholders
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
gains from investment transactions are distributed to shareholders not less
frequently than annually only to extent they exceed available capital loss
carryovers.
Distributions to shareholders of net investment income and net realized gains
from investment transactions are recorded on the ex-dividend date. The amount
and timing of such distributions are determined in accordance with federal
income tax regulations, which may differ from generally accepted accounting
principles. Accordingly, temporary over-distributions as a result of these
differences may result and will be classified as either distributions in excess
of net investment income or distributions in excess of net realized gains from
investment transactions, if applicable.
Income tax
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 all of its net investment income,
in addition to any significant amounts of net realized gains from investments,
to shareholders. The Funds currently consider significant net realized gains as
amounts in excess of $.001 per share. Furthermore, each Fund intends to satisfy
conditions which will enable interest from municipal securities, which is exempt
from regular federal and designated state income taxes, to retain such tax
exempt status when distributed to the shareholders of the Funds. All income
dividends paid during the year ended February 29, 1996, have been designated
Exempt Interest Dividends.
Insurance
The California Insured, Massachusetts Insured and New York Insured Tax-Free
Value Funds invest in municipal securities which are either 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 business, regardless of whether
the Funds ultimately dispose of such municipal securities. Consequently, the
market value of the municipal securities covered by Original Issue
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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. Effective June 13, 1995, 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 will
generally be available only for reinvestment of dividends by current "R"
shareholders and for already established Nuveen Unit Investment Trust
reinvestment accounts.
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 future, 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 year ended February 29, 1996,
other than occasional purchases of high quality synthetic money market
securities, if applicable.
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
68
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
2. EXPENSE ALLOCATION
Expenses of the Funds that are not directly attributable to any class of shares
are prorated among the classes based on the relative net assets of each class.
Expenses directly attributable to a class of shares are recorded to the specific
class. Effective August 1, 1995, the Funds adopted a multiple class plan
pursuant to Rule 18f-3 under the investment Company Act of 1940 and now
designate class specific expenses to include Rule 12b-1 distribution and service
fees, and other expenses incurred for services received by a class that differ
in either amount or kind. A breakdown of the class specific expenses is as
follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12b-1 distribution and service fees (for the year ended
February 29, 1996):
Class A $19,006 $25,512 $ 6,732 $ 8,932
Class C 4,155 6,916 2,609 5,438
Shareholders' servicing agent fees and expenses
(for the five month period ended July 31, 1995):
Class A 3,235 4,044 2,378 2,346
Class C 205 227 209 215
Class R 62,876 57,527 29,261 19,878
Shareholders' reports-printing and mailing expenses
(for the five month period ended July 31, 1995):
Class A 1,525 1,808 988 520
Class C 201 190 23 44
Class R 40,490 36,738 37,136 33,910
Federal and state registration fees (for the five month period
ended July 31, 1995):
Class A 985 950 1,207 471
Class C 290 20 1,050 106
Class R 459 48 4,457 633
- --------------------------------------------------------------------------------------------------------
</TABLE>
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
NY NY INS OH
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
12b-1 distribution and service fees (for the year ended
February 29, 1996):
Class A $26,638 $42,326 $21,336
Class C 4,101 8,893 14,282
Shareholders' servicing agent fees and expenses (for the
five month period ended July 31, 1995):
Class A 5,805 5,554 4,802
Class C 925 288 564
Class R 56,825 89,427 67,199
Shareholders' reports-printing and mailing expenses (for
the five month period ended July 31, 1995):
Class A 1,599 1,436 2,069
Class C 91 110 240
Class R 65,948 59,582 75,389
Federal and state registration fees (for the five month period
ended July 31, 1995):
Class A 821 1,324 1,207
Class C 194 27 207
Class R 448 525 456
- ----------------------------------------------------------------------------------------------
</TABLE>
70
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
3. FUND SHARES
Transactions in shares were as follows:
- --------------------------------------------------------------------------------------------------------------------------
CA CA INS
- --------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/29/96 2/28/95 2/29/96 2/28/95
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A $ 927,895 $ 321,777 $ 1,211,972 $ 468,407
Class C 50,026 19,666 89,705 28,545
Class R 2,165,620 2,433,649 1,177,751 2,136,079
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions:
Class A 16,682 1,856 23,441 2,486
Class C 1,279 191 1,594 201
Class R 700,563 884,995 614,344 714,801
------------ ----------- ---------- ---------
3,862,065 3,662,134 3,118,807 3,350,519
------------ ----------- ---------- ----------
Shares redeemed:
Class A (54,537) (12,110) (95,872) (7,236)
Class C (6,378) (106) (15,721) (6,858)
Class R (2,990,150) (3,116,035) (2,088,697) (2,915,964)
------------ ----------- ---------- ----------
(3,051,065) (3,128,251) (2,200,290) (2,930,058)
------------ ----------- ---------- ----------
Net increase (decrease) 811,000 533,883 918,517 420,461
============ =========== ========== ==========
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
71
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------------------------------------------------------
MA MA INS
- ---------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/29/96 2/28/95 2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 356,285 114,157 339,891 197,250
Class C 51,779 15,429 34,914 33,405
Class R 795,556 1,117,491 337,797 702,214
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions:
Class A 7,663 956 10,031 1,171
Class C 775 65 1,987 244
Class R 303,251 277,942 211,766 225,446
------------ ------------ ------------ ------------
1,515,309 1,526,040 936,386 1,159,730
------------ ------------ ------------ ------------
Shares redeemed:
Class A (44,057) (3,567) (40,197) (4,008)
Class C (3,523) - (3,095) -
Class R (857,146) (1,130,507) (503,288) (823,516)
------------ ------------ ------------ ------------
(904,726) (1,134,074) (546,580) (827,524)
------------ ------------ ------------ ------------
Net increase (decrease) 610,583 391,966 389,806 332,206
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
72
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------------------
NY NY INS
- ---------------------------------------------------------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/29/96 2/28/95 2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 1,261,309 318,594 1,778,309 719,364
Class C 53,367 8,430 113,081 27,982
Class R 1,182,028 2,613,112 1,291,786 3,411,938
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions:
Class A 34,236 1,882 59,314 6,336
Class C 1,167 43 2,279 200
Class R 603,620 701,622 1,387,801 1,652,628
------------ ------------ ------------ ------------
3,135,727 3,643,683 4,632,570 5,818,448
------------ ------------ ------------ ------------
Shares redeemed:
Class A (127,601) (5,381) (220,550) (10,331)
Class C (2,280) - (14,453) -
Class R (1,956,584) (2,245,562) (4,307,682) (7,580,245)
------------ ------------ ------------ ------------
(2,086,465) (2,250,943) (4,542,685) (7,590,576)
------------ ------------ ------------ ------------
Net increase (decrease) 1,049,262 1,392,740 89,885 (1,772,128)
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
73
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------------------------
OH
- ---------------------------------------------------------------------------------------------
Year ended Year ended
2/29/96 2/28/95
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A 846,644 432,196
Class C 120,707 88,344
Class R 1,015,491 1,586,702
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions:
Class A 24,156 2,972
Class C 4,767 711
Class R 604,197 696,759
------------ ------------
2,615,962 2,807,684
------------ ------------
Shares redeemed:
Class A (76,763) (11,421)
Class C (9,130) (325)
Class R (1,765,109) (2,131,282)
------------ ------------
(1,851,002) (2,143,028)
------------ ------------
Net increase (decrease) 764,960 664,656
============ ============
- ---------------------------------------------------------------------------------------------
</TABLE>
74
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
4. DISTRIBUTIONS TO SHAREHOLDERS
On March 8, 1996, the Funds declared dividend distributions from their ordinary
income which were paid on April 1, 1996, to shareholders of record on March 8,
1996, as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share:
Class A $ .0440 $ .0440 $ .0420 $ .0430
Class C .0375 .0370 .0360 .0365
Class R .0465 .0460 .0440 .0450
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
NY NY INS OH
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share:
Class A $ .0460 $ .0440 $ .0450
Class C .0395 .0375 .0380
Class R .0485 .0460 .0470
============ ============ ============
- ------------------------------------------------------------------------------------------------------------
</TABLE>
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in municipal
securities and temporary municipal investments for the year ended February 29,
1996, were as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
CA CA INS MA MA INS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 86,931,529 $ 88,694,265 $ 8,378,588 $ 4,607,844
Temporary municipal investments 97,900,000 84,425,000 20,800,000 16,400,000
SALES
Investments in municipal securities 76,815,188 80,308,313 4,213,420 327,390
Temporary municipal investments 97,500,000 78,225,000 19,000,000 16,600,000
============ ============ ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
NY NY INS OH
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 78,935,027 $ 58,943,158 $ 65,139,819
Temporary municipal investments 30,250,000 39,200,000 27,400,000
SALES
Investments in municipal securities 73,742,136 65,415,317 55,993,586
Temporary municipal investments 27,650,000 33,600,000 27,400,000
============ ============ ============
- ------------------------------------------------------------------------------------------------------------
</TABLE>
75
<PAGE>
NOTES TO FINANCIAL STATEMENTS
At February 29, 1996, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes for each Fund.
At February 29, 1996, the 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 $ - $ - $ - $ 47,237
1999 - - - 18,885
2003 518,192 220,919 275,030 172,689
2004 247,114 121,012 507,247 39,865
-------- -------- -------- --------
Total $765,306 $341,931 $782,277 $278,676
======== ======== ======== ========
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------
OH
- -----------------------------
<S> <C>
Expiration year:
1997 $ -
1999 -
2003 -
2004 237,140
--------
Total $237,140
========
- -----------------------------
</TABLE>
76
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
at February 29, 1996, were as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
CA CA INS MA MA INS
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,556,045 $14,643,216 $ 5,577,358 $5,000,960
Depreciation (442,450) (323,932) (72,750) (50,643)
----------- ----------- ----------- ----------
Net unrealized appreciation $12,113,595 $14,319,284 $ 5,504,608 $4,950,317
=========== =========== =========== ==========
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
NY NY INS OH
- -------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
Appreciation $ 9,487,337 $26,164,455 $12,797,421
Depreciation (424,057) (610,337) (157,332)
----------- ----------- -----------
Net unrealized appreciation $ 9,063,280 $25,554,118 $12,640,089
=========== =========== ===========
- -------------------------------------------------------------------
</TABLE>
77
<PAGE>
NOTES TO FINANCIAL STATEMENTS
7. MANAGEMENT FEE AND OTHER TRANSACTIONS
WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays to the Adviser an annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
- ------------------------------------------------------------
Average daily net asset value Management fee
- ------------------------------------------------------------
<S> <C>
For the first $125,000,000 .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 Ohio Tax-Free Value Funds and .975 of 1% of the
average daily net asset value of the California Insured, Massachusetts Insured
and New York Insured Tax-Free Value Funds. The Adviser may also voluntarily
agree to reimburse additional expenses from time to time, which may be
voluntarily terminated at any time at its discretion.
The management fee referred to above compensates the Adviser for overall
investment advisory and administrative services, and general office facilities.
The Funds pay no compensation directly to their directors who are affiliated
with the Adviser or to their officers, all of whom receive remuneration for
their services to the Funds from the Adviser.
78
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
8. COMPOSITION OF NET ASSETS
At February 29, 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 $218,292,045 $209,820,987 $ 76,982,089 $ 61,426,562
Balance of undistributed net investment income 142,955 134,147 2,984 1,505
Accumulated net realized gain (loss) from investment
transactions (765,306) (341,931) (788,525) (278,676)
Distributions in excess of net realized gains from investment
transactions - - - -
Net unrealized appreciation of investments 12,113,595 14,319,284 5,504,608 4,950,317
------------ ------------ ------------ ------------
Net assets $229,783,289 $223,932,487 $ 81,701,156 $ 66,099,708
============ ============ ============ ============
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 $161,313,710 $343,934,825 $169,688,249
Balance of undistributed net investment income 126,818 59,448 68,716
Accumulated net realized gain (loss) from investment
transactions 649,435 - (237,140)
Distributions in excess of net realized gains from investment
transactions - (84,141) -
Net unrealized appreciation of investments 9,063,280 25,554,118 12,640,089
------------ ------------ ------------
Net assets $171,153,243 $369,464,250 $182,159,914
============ ============ ============
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>
79
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation,
escrowed and revenue bonds. At February 29, 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:
Health Care Facilities 19% 14% 16% 18%
Housing Facilities 14 8 19 2
Lease Rental Facilities 8 14 - -
Educational Facilities 13 - 13 15
Water/Sewer Facilities 2 13 1 1
Transportation 5 1 2 1
Electric Utilities 2 7 1 3
Pollution Control - - 2 -
Other 25 26 1 1
General Obligation Bonds - 2 23 40
Escrowed Bonds 12 15 22 19
--- --- --- ---
100% 100% 100% 100%
=== === === ===
- ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
NY NY INS OH
- --------------------------------------------------------------------------------------------------------------
Revenue Bonds:
Health Care Facilities 4% 10% 15%
Housing Facilities 17 16 5
Lease Rental Facilities 19 1 1
Educational Facilities 16 9 4
Water/Sewer Facilities 4 11 6
Transportation 1 10 2
Electric Utilities - 1 3
Pollution Control 5 3 7
Other 9 4 1
General Obligation Bonds 12 19 41
Escrowed Bonds 13 16 15
--- --- ---
100% 100% 100%
=== === ===
- --------------------------------------------------------------------------------------------------------------
</TABLE>
80
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
Certain long-term and intermediate-term investments owned by the Funds are
either 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, both of which ensure the timely payment of principal and interest in
the event of default (39% for California, 100% for California Insured, 43% for
Massachusetts, 100% for Massachusetts Insured, 22% for New York, 100% for New
York Insured and 59% for Ohio). Such insurance, however, does not guarantee the
market value of the municipal securities or the value of the Fund's shares.
All of the 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.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
81
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------------------------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distribution Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
- --------------------------------------------------------------------------------------------------------------------------------
CA
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Year ended
2/29/96 $10.100 $.549* $ .473 $(.542) $ - $10.580
9/6/94 to
2/28/95 10.210 .270* (.031) (.275) (.074) 10.100
CLASS C
Year ended
2/29/96 10.100 .470* .474 (.464) - 10.580
9/16/94 to
2/28/95 10.040 .218* .139 (.223) (.074) 10.100
CLASS R
Year ended
2/29/96 10.130 .575 .467 (.572) - 10.600
Year ended 2/28,
1995 10.740 .582 (.531) (.587) (.074) 10.130
1994 10.850 .598 (.054) (.596) (.058) 10.740
1993 10.140 .633 .707 (.626) (.004) 10.850
8 months ended
2/29/92 9.920 .429 .218 (.427) - 10.140
Year ended 6/30,
1991 9.790 .639 .133 (.642) - 9.920
1990 9.850 .641 (.058) (.643) - 9.790
1989 9.240 .649* .610 (.649) - 9.850
1988 9.280 .647* (.040) (.647) - 9.240
1987** 9.600 .652* (.320) (.652) - 9.280
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 94.
82
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ----------------------------------------------------------------------------------------------------------------------------
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>
10.36% $ 12,709 1.00% 5.23% .96% 5.27% 36%
2.52 3,146 1.41+ 5.40+ 1.00+ 5.81+ 32
9.53 684 1.84 4.39 1.71 4.52 36
3.71 200 2.41+ 4.37+ 1.75+ 5.03+ 32
10.54 216,390 .71 5.53 .71 5.53 36
0.78 208,080 .71 5.83 .71 5.83 32
5.08 218,430 .73 5.47 .73 5.47 19
13.66 183,215 .71 6.05 .71 6.05 5
6.61 133,377 .67+ 6.30+ .67+ 6.30+ -
8.16 107,508 .69 6.48 .69 6.48 15
6.14 78,704 .69 6.51 .69 6.51 8
14.12 52,048 .77 6.77 .75 6.79 22
6.87 29,640 .88 6.91 .70 7.09 48
3.28 19,094 1.19 5.61 .18 6.62 17
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
83
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING
THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- -----------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
CA INS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
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
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
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>
See notes on page 94.
84
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
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>
- ------------------------------------------------------------------------------------------------------------------------------------
10.32% $ 17,250 .98% 4.99% .97% 5.00% 38%
3.33 4,753 1.24+ 5.26+ 1.05+ 5.45+ 25
9.67 1,040 1.74 4.23 1.71 4.26 38
3.45 222 2.44+ 4.05+ 1.80+ 4.69+ 25
10.63 205,642 .70 5.29 .70 5.29 38
1.68 198,928 .70 5.60 .70 5.60 25
4.27 208,115 .71 5.12 .71 5.12 14
15.05 168,852 .75 5.72 .75 5.72 9
7.99 100,933 .64+ 5.97+ .64+ 5.97+ 7
8.43 74,551 .68 6.26 .68 6.26 29
4.93 50,625 .70 6.36 .70 6.36 13
13.97 35,032 .82 6.52 .82 6.52 23
7.44 22,394 .99 6.60 .82 6.77 31
(.13) 16,192 1.06 5.59 .17 6.48 4
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
85
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING
THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- -----------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
MA
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
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
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
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 94.
86
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
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>
- ------------------------------------------------------------------------------------------------------------------------------------
9.62% $ 4,290 1.17% 5.04% 1.00% 5.21% 6%
3.05 1,067 1.87+ 4.88+ 1.00+ 5.75+ 17
8.87 638 2.24 3.96 1.75 4.45 6
4.86 147 3.40+ 3.46+ 1.75+ 5.11+ 17
9.80 76,773 .82 5.42 .75 5.49 6
1.64 71,568 .77 5.75 .75 5.77 17
5.96 71,942 .81 5.32 .75 5.38 3
14.21 53,231 .87 5.79 .75 5.91 5
2.44 34,470 .71+ 6.31+ .71+ 6.31+ 5
11.19 31,150 .77 6.37 .75 6.39 19
5.21 20,829 .85 6.58 .75 6.68 23
10.62 15,513 1.09 6.30 .75 6.64 31
11.56 9,485 1.24 6.25 .75 6.74 55
(8.19) 5,681 1.54+ 5.30+ .37+ 6.47+ 34
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
87
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING
THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- -----------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
MA INS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
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
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
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 94.
88
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
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>
- ------------------------------------------------------------------------------------------------------------------------------------
9.59% $ 5,291 1.09% 4.92% 1.07% 4.94% 1%
2.99 1,956 1.36+ 5.13+ 1.15+ 5.34+ 10
8.80 706 1.81 4.20 1.81 4.20 1
3.52 338 2.07+ 4.41+ 1.90+ 4.58+ 10
9.99 60,102 .81 5.21 .81 5.21 1
1.77 57,137 .79 5.54 .79 5.54 10
5.22 58,255 .84 5.09 .84 5.09 3
14.28 47,098 .86 5.47 .86 5.47 2
9.57 28,189 .72 5.93 .72 5.93 5
8.95 15,625 .85 6.19 .85 6.19 6
8.52 8,649 1.20 5.94 .97 6.17 15
5.84 5,404 1.87 5.54 .97 6.44 41
1.14 4,895 1.75 5.37 .59 6.53 42
.75 2,312 5.18+ .64+ -- 5.82+ --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
89
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING
THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- -----------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
NY
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
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
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
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 (.598) (.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 94.
90
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
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>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
10.52% $15,732 1.02% 5.28% .99% 5.31% 47%
2.21 3,189 1.56+ 5.31+ 1.00+ 5.87+ 29
10.13 646 1.99 4.29 1.73 4.55 47
2.80 86 7.97+ (1.06)+ 1.75+ 5.16+ 29
10.80 154,776 .76 5.55 .74 5.57 47
75 149,454 .74 5.79 .74 5.79 29
7.10 146,297 .78 5.30 .75 5.33 15
14.79 107,146 .84 5.75 .75 5.84 12
2.21 66,491 .75+ 6.27+ .75+ 6.27+ 16
11.79 59,351 .79 6.46 .75 6.50 19
4.92 44,347 .81 6.59 .75 6.65 51
11.34 29,040 .98 6.40 .75 6.63 85
12.20 14,975 1.09 6.55 .75 6.89 71
(2.44) 8,239 1.38+ 5.45+ .37+ 6.46+ 20
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
91
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING
THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- -----------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
NY INS
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
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) (.40)*** 10.150
CLASS C
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
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 94.
92
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
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>
- ------------------------------------------------------------------------------------------------------------------------------------
10.19% $24,747 .93% 4.97% .93% 4.97% 17%
3.01 7,258 1.13+ 5.33+ 1.05+ 5.41+ 11
9.71 1,369 1.69 4.21 1.69 4.21 17
3.53 285 2.32+ 4.13+ 1.80+ 4.65+ 11
10.51 343,348 .67 5.26 .67 5.26 17
1.37 345,121 .65 5.57 .65 5.57 11
5.57 388,176 .68 5.11 .68 5.11 5
14.96 314,877 .73 5.56 .73 5.56 6
11.66 167,048 .69 6.08 .69 6.08 4
7.61 80,484 .73 6.46 .73 6.46 13
8.75 40,372 .85 6.35 .85 6.35 30
6.37 20,206 1.05 6.50 .97 6.58 62
(.85) 14,078 1.12 6.22 .61 6.73 36
3.76 5,177 3.19+ 1.78+ -- 4.97+ --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
93
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- -----------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income investments+++ income capital gains period
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
OH
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A
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
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
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>
* Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser, if applicable. See note 7 of Notes to Financial
Statements.
**Shares in the California and California Insured Funds were first offered for
sale on 7/1/86.
***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.
+Annualized.
++Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gain distribution if any, and changes in net asset
value per share.
+++Net of taxes, if applicable. See note 1 of Notes to Financial Statements.
94
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
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>
- ------------------------------------------------------------------------------------------------------------------------------------
9.44% $ 12,904 1.03% 5.08% .98% 5.13% 33%
3.63 4,320 1.27+ 5.40+ 1.00+ 5.67+ 28
8.55 2,163 1.75 4.36 1.73 4.38 33
3.63 901 2.09+ 4.58+ 1.75+ 4.92+ 28
9.70 167,092 .76 5.38 .74 5.40 33
1.99 162,231 .73 5.70 .73 5.70 28
6.30 167,448 .75 5.28 .75 5.28 9
13.88 133,797 .84 5.77 .75 5.86 13
2.87 90,121 .70+ 6.16+ .70+ 6.16+ 3
9.84 81,649 .71 6.37 .71 6.37 16
6.86 56,887 .74 6.61 .74 6.61 38
12.97 37,714 .82 6.59 .75 6.66 66
12.56 20,144 .98 6.71 .75 6.94 55
(4.10) 9,135 1.33+ 5.59+ .39+ 6.53+ 26
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
95
<PAGE>
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.
[PHOTO OF PAINTING APPEARS HERE]
For nearly 100 years,
Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
municipal bonds
[LOGO]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
[RECYCLING LOGO]
<PAGE>
[NUVEEN LOGO]
Nuveen Tax-Free
Money Market Funds
Dependable tax-free
income for generations
TAX-FREE RESERVES
CALIFORNIA
MASSACHUSETTS
NEW YORK
[PHOTO OF COUPLE APPEARS HERE]
ANNUAL REPORT/FEBRUARY 29, 1996
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
7 Fund performance
9 Report of independent public accountants
10 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
[PHOTO OF RICHARD J. FRANKE APPEARS HERE]
After rising steeply throughout 1994, short-term interest rates fell in 1995.
Following an unprecedented series of seven rate increases between February 1994
and February 1995, the Fed responded to a climate of slowing economic growth and
diminished inflationary pressure by cutting rates three times over the past ten
months, the first reductions in nearly three years.
During market fluctuations such as these, Nuveen money market funds continue
to play an integral role in helping you reach your investment goals by offering
you an attractive level of tax-free current income, daily liquidity, and
diversification.
Overall, money market fund yields are lower than last year's rates due to the
effects of the Fed's actions. As of February 29, 1996, the seven-day annualized
yield for the money market funds covered in this report ranged from 2.75% to
2.87%. To match these yields, an investor in the 36% federal income tax bracket
would have had to earn at least 4.30% on taxable alternatives. For the state
money market funds, the addition of state taxes to the equation increases the
advantages provided by tax-free municipal bonds, raising the required taxable-
equivalent yield to a range of 4.62% to 4.95%.
As some of you may know, on June 30, 1996, I will be retiring as the Chairman
and Chief Executive Officer of John Nuveen & Co.
"Nuveen money
market funds
continue to play
an integral role in
helping you reach
your investment goals."
3
<PAGE>
Incorporated and as Chairman of the board of the Nuveen Funds. As I look back
over the 41 years I have spent at Nuveen, I'm proud to have been associated with
a firm that holds integrity, honesty, and value as the cornerstones of its
business. I'm confident that these traditions will continue to be the hallmarks
of Nuveen.
Over the past few years, I have been working closely with other Nuveen
managers to ensure that the company and the funds continue to be guided by
strong and talented management following my retirement. Timothy Schwertfeger,
who has been with Nuveen since 1977, has been named my successor as Chief
Executive Officer and Chairman of Nuveen. He currently serves as executive vice
president of Nuveen and president of the Nuveen Funds. I am very confident in
his abilities and the abilities of the entire Nuveen management team.
The transition in management has been well planned, and it will have no effect
on the way your funds are managed. Our management team is committed to
continuing Nuveen's successful tradition of prudent management, helping our
shareholders meet their need for tax-free investment income with a full range of
investment choices.
Our commitment to the municipal marketplace remains as strong as ever. Our
focus will continue to be on providing research-oriented management and
maintaining our leadership role in the municipal bond market. We anticipate many
more years of progress and accomplishment for our shareholders and our firm.
I'd like to take this occasion to thank you for selecting Nuveen Tax-Free
Money Market Fund investments. We appreciate your investment in Nuveen and we
look forward to reporting continued success in the years ahead.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
April 15, 1996
4
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, discusses factors
affecting Nuveen's Tax-Free Money Market Funds and the outlook for 1996.
How did the
investment climate
over the past year
affect these funds?
In 1995, the combination of slow economic growth and low inflation created the
ideal environment for the Federal Reserve Board to cut interest rates. In July
and December 1995 and again at the end of January 1996, a succession of short-
term rate cuts contributed to the decline of municipal bond yields. Yet, as of
February 29, 1996, Nuveen money market funds continued to enjoy annualized
taxable-equivalent yields of 4.30% or better.
What are some of
the advantages of
investing in short-
term funds?
Money market fund investors receive attractive tax-free income compared with
other short-term vehicles, along with share price stability, daily liquidity,
and investment convenience. When combined with the flexibility of checkwriting
access to funds, money market funds remain a valuable and convenient investment
alternative.
5
<PAGE>
[PHOTO OF PAINTING APPEARS HERE]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
What is Nuveen's
market outlook
for 1996?
Although inflation currently remains low and economic growth is moderating, we
continue to watch these factors for potential changes and impact on the bond
markets. During this election year, we are also closely monitoring any changes
in economic policy that may affect the municipal market. A combination of
various factors-such as cutbacks in federal spending, consumer confidence
levels, and concerns about corporate earnings projections-could keep the economy
growing at a slow pace throughout the year.
6
<PAGE>
NUVEEN TAX-FREE
RESERVES, INC.
Tax-Free Reserves
Shareholders continued to enjoy attractive tax-free dividends over the past 12
months, even as interest rates fell from levels of a year ago. On a
taxable-equivalent basis, the fund's current 7-day yield on net asset value was
4.30% on February 29, 1996.
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
<S> <C>
3/95................................. 3.25
5/95................................. 3.66
7/95................................. 3.01
9/95................................. 3.21
11/95................................ 3.25
1/96................................. 2.87
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------
FUND HIGHLIGHTS 2/29/96
- --------------------------------------------
<S> <C>
Current 7-day SEC yield on NAV 2.75%
Taxable-equivalent yield on NAV* 4.30%
Federal tax rate 36.0%
Total net assets ($000) 339,662
- --------------------------------------------
</TABLE>
*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 continued to enjoy attractive tax-free dividends over the past 12
months, even as interest rates fell from levels of a year ago. On a
taxable-equivalent basis, the fund's current 7-day yield on net asset value was
4.95% on February 29, 1996.
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
<S> <C>
3/95................................. 3.31
5/95................................. 3.78
7/95................................. 2.98
9/95................................. 3.32
11/95................................ 3.29
1/96................................. 2.89
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------
FUND HIGHLIGHTS 2/29/96
- --------------------------------------------
<S> <C>
Current 7-day SEC yield on NAV 2.87%
Taxable-equivalent yield on NAV* 4.95%
Combined state and federal tax rate 42.0%
Total net assets ($000) 178,134
- --------------------------------------------
</TABLE>
*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 continued to enjoy attractive tax-free dividends over the past 12
months, even as interest rates fell from levels of a year ago. On a
taxable-equivalent basis, the fund's current 7-day yield on net asset value was
4.90% on February 29, 1996.
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
<S> <C>
3/95................................. 3.16
5/95................................. 3.62
7/95................................. 2.98
9/95................................. 3.11
11/95................................ 3.12
1/96................................. 2.84
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------
FUND HIGHLIGHTS 2/29/96
- --------------------------------------------
<S> <C>
Current 7-day SEC yield on NAV 2.77%
Taxable-equivalent yield on NAV* 4.90%
Federal tax rate 43.5%
Total net assets ($000) 68,080
- --------------------------------------------
</TABLE>
*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 continued to enjoy attractive tax-free dividends over the past 12
months, even as interest rates fell from levels of a year ago. On a
taxable-equivalent basis, the fund's current 7-day yield on net asset value was
4.62% on February 29, 1996.
[CHART APPEARS HERE]
<TABLE>
<CAPTION>
<S> <C>
3/95................................. 3.19
5/95................................. 3.67
7/95................................. 2.87
9/95................................. 3.17
11/95................................ 3.23
1/96................................. 3.18
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------
FUND HIGHLIGHTS 2/29/96
- --------------------------------------------
<S> <C>
Current 7-day SEC yield on NAV 2.75%
Taxable-equivalent yield on NAV* 4.62%
Combined state and federal tax rate 40.5%
Total net assets ($000) 32,203
- --------------------------------------------
</TABLE>
*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>
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
To the Board of Directors and Shareholders of
Nuveen Tax-Free Reserves, Inc.
Nuveen California Tax-Free Fund, Inc.,
Nuveen Tax-Free Money Market Fund, Inc.:
We have audited the accompanying statements of net assets of NUVEEN TAX-FREE
RESERVES, INC. (a Maryland Corporation), NUVEEN CALIFORNIA TAX-FREE FUND, INC.
(comprising the Nuveen California Tax-Free Money Market Fund) (a Maryland
Corporation) and NUVEEN TAX-FREE MONEY MARKET FUND, INC. (comprising the Nuveen
Massachusetts and New York Tax-Free Money Market Funds) (a Minnesota
Corporation), including the portfolios of investments, as of February 29, 1996,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended and
the financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 29, 1996, by correspondence with the custodian and brokers. As to
securities purchased but not received, we requested confirmation from brokers
and, when replies were not received, we carried out other alternative auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of each of the
respective funds constituting Nuveen Tax-Free Reserves, Inc., Nuveen California
Tax-Free Fund, Inc. and Nuveen Tax-Free Money Market Fund, Inc. as of February
29, 1996, the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended, and the
financial highlights for the periods indicated thereon in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois,
April 8, 1996
9
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN TAX-FREE RESERVES, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA - 6.2%
$ 7,215,000 Anniston Industrial Development Board (Union Foundry Company),
Variable Rate Demand Bonds, 3.400%, 6/01/05+ VMIG-1 $ 7,215,000
13,800,000 Birmingham Medical Clinic Board (University of Alabama Health
Services Foundation), Variable Rate Demand Bonds,
3.550%, 12/01/26+ A-1+ 13,800,000
- -----------------------------------------------------------------------------------------------------------------------
ARIZONA - 6.7%
10,000,000 Apache County Industrial Development, Pollution Control (Tucson
Electric), Variable Rate Demand Bonds, 3.450%, 10/01/21+ VMIG-1 10,000,000
7,600,000 Mesa Municipal Development Corporation, Special Tax, Series 1985,
Commercial Paper, 3.250%, 5/31/96 VMIG-1 7,600,000
5,000,000 Mesa Municipal Development Corporation, Special Tax, Series 1995,
Commercial Paper, 3.200%, 4/29/96 VMIG-1 5,000,000
- -----------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.8%
2,400,000 Arkansas Hospital Equipment Finance Authority (Washington Regional
Medical Center), Variable Rate Demand Bonds, 3.350%, 10/01/98+ VMIG-1 2,400,000
7,000,000 University of Arkansas-Board of Trustees (UAMS Campus-Series 1994),
Variable Rate Demand Bonds, 3.400%, 12/01/19+ VMIG-1 7,000,000
- -----------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 2.1%
5,000,000 California School Cash Reserve Program, Series 1995 Notes,
4.750%, 7/03/96 MIG-1 5,016,318
2,000,000 Orange County Apartment Development (Monarch Bay Apartments
Project), Variable Rate Demand Bonds, 3.450%, 10/01/07+ A-1 2,000,000
- -----------------------------------------------------------------------------------------------------------------------
DELAWARE - 3.4%
11,682,500 New Castle County Economic Development, Revenue Refunding
(Henderson/McGuire Partners Project), Series 1994, Variable
Rate Demand Bonds, 3.450%, 8/15/20+ A-1 11,682,500
- -----------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.6%
9,000,000 District of Columbia General Obligation, General Fund Recovery,
Variable Rate Demand Bonds, 3.550%, 6/01/03+ A-1+ 9,000,000
3,210,000 District of Columbia (American University Project), Variable Rate
Demand Bonds, 3.300%, 10/01/15+ VMIG-1 3,210,000
- -----------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.5%
4,210,000 Florida Municipal Power Agency, Initial Pooled Loan Program, Series
1995A, Commercial Paper, 3.150%, 5/24/96 A-1 4,210,000
3,100,000 Pasco Multi-Family Housing, Carlton Arms of Magnolia Valley,
Series 1985, Variable Rate Demand Bonds, 3.400%, 12/01/07+ VMIG-1 3,100,000
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 4,800,000 Sarasota County Public Hospital District (Sarasota Memorial Hospital), A-1 $ 4,800,000
Commercial Paper, 3.300%, 7/30/96
3,300,000 Sunshine State Governmental Financing Commission, Commercial
Paper, 3.200%, 5/14/96 VMIG-1 3,300,000
- -----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.9%
3,400,000 Georgia Municipal Gas Authority (Transco Portfolio Project),
Commercial Paper, 3.250%, 5/24/96 VMIG-1 3,400,000
10,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates (St. Joseph's
Hospital of Atlanta Project), Commercial Paper, 3.300%, 4/09/96 VMIG-1 10,000,000
- -----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.0%
3,400,000 Hawaii Department of Budget and Finance, Special Purpose (Adventist
Health System), Variable Rate Demand Bonds, 3.550%, 9/01/99+ A-1 3,400,000
- -----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.6%
9,200,000 Illinois Development Finance Authority, Pollution Control
(Diamond-Star Motors Corporation), Variable Rate Demand Bonds,
3.550%, 12/01/08+ P-1 9,200,000
6,000,000 Illinois Educational Facilities Authority, Shedd Aquarium Society,
Series 1987B, Commercial Paper, 3.350%, 5/08/96 VMIG-1 6,000,000
3,300,000 Illinois Health Facilities Authority (Condell Memorial Hospital),
Variable Rate Demand Bonds, 3.600%, 11/01/05+ VMIG-1 3,300,000
5,000,000 Illinois Health Facilities Authority (Victory Health Services Project),
Series 1991, Commercial Paper, 3.200%, 3/20/96 VMIG-1 5,000,000
3,100,000 Chicago General Obligation Tender Notes, Series 1995-A, 3.750%,
10/31/96 (Mandatory put 5/01/96) VMIG-1 3,100,000
3,800,000 Chicago General Obligation, Variable Rate Demand Bonds,
3.900%, 1/01/10+ VMIG-1 3,800,000
12,700,000 Chicago O'Hare International Airport (American Airlines), Variable
Rate Demand Bonds, 3.550%, 12/01/17+ P-1 12,700,000
5,700,000 Decatur Water Bonds (New South Water Treatment), Series 1985,
Commercial Paper, 3.500%, 4/08/96 VMIG-1 5,700,000
4,300,000 Decatur Water Bonds (South Water Treatment), Series 1985,
Commercial Paper, 3.300%, 4/11/96 VMIG-1 4,300,000
- -----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.5%
6,000,000 Indianapolis Economic Development (Yellow Freight), Commercial
Paper, 4.500%, 1/15/97 N/R 6,000,000
2,500,000 Indianapolis Economic Development (Children's Museum of
Indianapolis), Series 1995, Variable Rate Demand Bonds,
3.350%, 10/01/25+ A-1+ 2,500,000
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
<C> <S> <C> <C>
- --------------------------------------------------------------------------------------------------------
IOWA - 2.1%
$ 4,250,000 Iowa School Corporation, Warrant Certificates, Series 1995-96A,
Municipal Note, 4.750%, 6/28/96 MIG-1 $ 4,261,967
2,900,000 Eddyville Pollution Control Heartland Lysine Inc., Variable Rate
Demand Bonds, 3.700%, 11/01/03+ N/R 2,900,000
- --------------------------------------------------------------------------------------------------------
KENTUCKY - 2.7%
9,005,000 Hancock County Industrial Development (Southwire Company Project),
Variable Rate Demand Bonds, 3.800%, 7/01/10+ N/R 9,005,000
- --------------------------------------------------------------------------------------------------------
LOUISIANA - 3.8%
13,000,000 Louisiana Recovery District, Sales Tax, Variable Rate Demand Bonds,
3.500%, 7/01/98+ VMIG-1 13,000,000
- --------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.2%
4,200,000 Massachusetts Industrial Finance Agency (Showa Women's Institute/
Boston), Variable Rate Demand Bonds, 3.600%, 3/15/04+ VMIG-1 4,200,000
- --------------------------------------------------------------------------------------------------------
MICHIGAN - 2.5%
7,100,000 Michigan Job Development Authority, Limited Obligation
(Frankenmuth Bavarian Inn), Variable Rate Demand Bonds,
3.625%, 8/15/15+ A-1 7,100,000
1,370,000 Warren Economic Development Corporation, Limited Obligation
(The Prince Company--Michigan Division), Variable Rate Demand
Bonds, 3.600%, 11/01/99+ P-1 1,370,000
- --------------------------------------------------------------------------------------------------------
MINNESOTA - 2.6%
6,330,000 Bloomington Commercial Development (James Avenue Associates
Project), Variable Rate Demand Bonds, 3.400%, 12/01/15+ A-1+ 6,330,000
2,500,000 St. Paul Housing and Redevelopment Authority, District Heating,
Variable Rate Demand Bonds, 3.900%, 12/01/12+ A-1 2,500,000
- --------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.8%
6,200,000 Lawrence County Pollution Control (Georgia-Pacific Corp. Project),
Series 1995, Variable Rate Demand Bonds, 3.275%, 12/01/00+ Aa-3 6,200,000
- --------------------------------------------------------------------------------------------------------
MISSOURI - 2.7%
3,600,000 Missouri Environmental Improvement and Energy Resources Authority,
Pollution Control, Series 1985A (Union Electric Company),
Commercial Paper, 3.250%, 4/04/96 VMIG-1 3,600,000
5,600,000 Missouri Environmental Improvement and Energy Resources Authority,
Pollution Control (Union Electric Company), Commercial Paper,
3.200%, 5/09/96 VMIG-1 5,600,000
- --------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
NEVADA - 2.1%
$ 7,000,000 Clark County Industrial Development, Refunding Bonds (Nevada Power
Company Project), Series 1995 C, Variable Rate Demand Bonds,
3.300%, 10/01/30+ A-1+ $ 7,000,000
- --------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.5%
2,400,000 Wake County Industrial Facilities and Pollution Control Financing
Authority, Series 1990B, Commercial Paper, 3.400%, 4/10/96 P-1 2,400,000
6,630,000 Wake County Industrial Facilities and Pollution Control Financing
Authority, Series 1990A, Commercial Paper, 3.350%, 4/30/96 P-1 6,630,000
3,000,000 Wake County Industrial Facilities and Pollution Control Financing
Authority, Variable Rate Demand Bonds, 3.600%, 10/01/15+ VMIG-1 3,000,000
- --------------------------------------------------------------------------------------------------------
OHIO - 11.1%
9,200,000 Centerville Health Care (Bethany Lutheran Village Continuing Care
Facilities Expansion Project), Variable Rate Demand Bonds,
3.350%, 5/01/08+ VMIG-1 9,200,000
6,900,000 Cincinnati and Hamilton County Port Authority (Kenwood Office
Associates), Variable Rate Demand Bonds, 3.600%, 9/01/25+ A-1 6,900,000
3,795,000 Franklin County Hospital Facilities (Traditions at Mill Run),
Floating Rate Demand Bonds, 3.450%, 11/01/14+ N/R 3,795,000
2,080,000 Hamilton County Healthcare Revenue Bonds, Series 1995 (Community
Limited Care Dialysis Center Project), Variable Rate Demand
Bonds, 3.400%, 9/01/05+ N/R 2,080,000
8,300,000 Montgomery County (Miami Valley Hospital), Series C, Commercial
Paper, 3.800%, 4/04/96 VMIG-1 8,300,000
7,500,000 Summit County, Twinsburg City School District, Unlimited Tax,
General Obligation Improvement Notes, 4.500%, 6/06/96 N/R 7,513,769
- --------------------------------------------------------------------------------------------------------
TENNESSEE - 3.0%
6,900,000 Clarksville Public Building Authority, Pooled Financing,
Series 1994, Variable Rate Demand Bonds, 3.400%, 6/01/24+ A-1 6,900,000
3,000,000 Montgomery County Public Building Authority, Pooled Financing,
Series 1995, Variable Rate Demand Bonds, 3.400%, 3/01/25+ A-1 3,000,000
- --------------------------------------------------------------------------------------------------------
VIRGINIA - 2.7%
3,000,000 Albemarle County Industrial Development Authority (The University
of Virginia Health Services Foundation), Series 1996, Variable
Rate Demand Bonds, 3.350%, 2/01/26+ A-1 3,000,000
2,600,000 Norfolk Industrial Development Authority (Norfolk, Virginia Beach,
Portsmouth), Industrial Development, Variable Rate Demand Bonds,
5.363%, 11/01/04+ N/R 2,600,000
3,300,000 Richmond Industrial Development Authority (Richmond MSA),
Variable Rate Demand Bonds, 5.363%, 11/01/04+ N/R 3,300,000
- --------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
<C> <S> <C> <C>
- ----------------------------------------------------------------------------------------------------------
WASHINGTON - 3.9%
$ 5,300,000 Washington Health Care Facilities Authority (Adventist Health
System West/Walla Walla General), Variable Rate Demand Bonds,
3.450%, 9/01/09+ A-1 $ 5,300,000
3,300,000 Washington Housing Finance Commission (Crista Ministries Project),
Series 1991B, Variable Rate Demand Bonds, 3.400%, 7/01/11+ VMIG-1 3,300,000
4,700,000 Washington Public Power Supply System (Nuclear Project 3), Revenue
Refunding, Series 1993-3A2, Variable Rate Demand Bonds,
3.200%, 7/01/18+ VMIG-1 4,700,000
- ----------------------------------------------------------------------------------------------------------
WISCONSIN - 0.8%
2,800,000 Wisconsin Health and Educational Facilities Authority (Alexian
Village of Milwaukee), Series 1988A, Commercial Paper,
3.350%, 4/10/96 VMIG-1 2,800,000
- ----------------------------------------------------------------------------------------------------------
$335,477,500 Total Investments - 98.8% 335,519,554
============----------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 4,142,910
- ----------------------------------------------------------------------------------------------------------
Net Assets - 100% $339,662,464
==========================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
14
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 5,000,000 California Health Facilities Authority (Catholic Healthcare West), Series
1995B, Variable Rate Demand Bonds, 3.000%, 7/01/05+ VMIG-1 $ 5,000,000
2,600,000 California Health Facilities Authority (St. Joseph Health System), Series
1985-A, Variable Rate Demand Bonds, 3.150%, 7/01/13+ VMIG-1 2,600,000
2,000,000 California Health Facilities Authority (Sutter Health), Series 1990B,
Variable Rate Demand Bonds, 3.300%, 3/01/20+ VMIG-1 2,000,000
2,400,000 California Health Facilities Authority (St. Joseph Health System),
Series 1991-B, Variable Rate Demand Bonds, 3.100%, 7/01/09+ VMIG-1 2,400,000
7,000,000 California Pollution Control Finance Authority (Pacific Gas and Electric),
Series D 1988, Commercial Paper, 3.300%, 3/14/96 A-1 7,000,000
7,500,000 California Pollution Control Finance Authority (Shell Oil Company),
Variable Rate Demand Bonds, 3.150%, 10/01/11+ VMIG-1 7,500,000
3,000,000 California School Cash Reserve Program, Series 1995 Notes,
4.750%, 7/03/96 MIG-1 3,009,790
4,780,000 California State Revenue Anticipation Warrants, 1994 Series C,
5.750%, 4/25/96 Aaa 4,793,887
5,610,000 California Statewide Community Development Authority, Certificates of
Participation, Series 1993, Variable Rate Demand Bonds, 3.250%, 12/01/18+ A-1+ 5,610,000
3,250,000 Chico Multi-Family Housing (Sycamore Glen Project), Series 1995,
Variable Rate Demand Bonds, 3.550%, 4/07/14+ N/R 3,250,000
4,500,000 Contra Costa Multi-Family Mortgage Revenue Refunding (Delta Square
Project), Series 1990A,Variable Rate Demand Bonds, 3.150%, 8/01/07+ VMIG-1 4,500,000
5,000,000 Eastern Municipal Water District, Water and Sewer Revenue, Series 1993B,
Variable Rate Demand Bonds, 3.000%, 7/01/20+ VMIG-1 5,000,000
4,900,000 Grand Terrace Redevelopment Agency, Multi-Family Housing (Mount
Vernon Villas Project), Variable Rate Demand Bonds, 3.350%, 12/01/11+ A-1 4,900,000
3,000,000 Hayward Housing Authority, Multi-Family Mortgage, Revenue
Refunding, Series 1993A (Huntwood Terrace), Variable Rate Demand
Bonds, 3.600%, 3/01/27+ A-1 3,000,000
4,000,000 Hillsborough Certificates of Participation, Water and Sewer System
Project, Series 1995A, Variable Rate Demand Bonds, 3.750%, 6/01/15+ A-1 4,000,000
9,000,000 Kern Community College District, Certificates of Participation, Series
1995, Variable Rate Demand Bonds, 3.550%, 1/01/25+ A-2 9,000,000
8,000,000 Los Angeles County Metropolitan Transportation Authority, Second
Subordinate Sales Tax Revenue, Commercial Paper, 3.100%, 4/10/96 A-1 8,000,000
8,400,000 Monterey County Financing Authority (Reclamation and Distribution
Project), Series 1995A, Variable Rate Demand Bonds, 3.450%, 9/01/36+ VMIG-1 8,400,000
7,200,000 Oakland Certificates of Participation, Capital Improvement
Project, Variable Rate Demand Bonds, 3.400%, 12/01/15+ N/R 7,200,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND-CONTINUED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 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 Apartment Development (Robinson Ranch Apartments
Project), Variable Rate Demand Bonds, 3.450%, 11/01/08+ VMIG-1 3,800,000
5,000,000 Orange County Apartment Development (Niguel Summit), Variable
Rate Demand Bonds, 3.200%, 11/01/09+ VMIG-1 5,000,000
7,000,000 Sacramento Municipal Utility District, Series I, Commercial Paper,
2.950%, 5/24/96 A-1+ 7,000,000
1,200,000 San Bernardino Multi-Family Housing (Castle Park Apartments),
Variable Rate Demand Bonds, 3.650%, 11/01/05+ VMIG-1 1,200,000
2,200,000 San Diego County Rincon Del Diablo Municipal Water District, Rincon
Public Facilities Corporation, Commercial Paper, 3.750%, 5/01/96 VMIG-1 2,200,000
3,000,000 San Diego Housing Authority, Multi-Family Housing, Revenue Refunding,
Series 1993-A (Carmel Del Mar Apartments), Variable
Rate Demand Bonds, 3.150%, 12/01/15+ A-1+ 3,000,000
7,000,000 San Dimas Industrial Development (Bausch & Lomb Incorporated),
Variable Rate Demand Bonds, 3.750%, 12/01/15+ N/R 7,000,000
7,600,000 Santa Ana Health Facilities Authority (Town & Country), Variable Rate
Demand Bonds, 3.250%, 10/01/20+ A-1 7,600,000
4,000,000 Santa Clara County Transit District Refunding Equipment, Trust
Certificates, Variable Rate Demand Bonds, 3.200%, 6/01/15+ VMIG-1 4,000,000
6,000,000 Santa Paula Public Financing Authority, Series 1996, Water System
Acquisition Project, Variable Rate Demand Bonds, 3.700%, 2/01/26+ A-1 6,000,000
5,000,000 Solano County Tax and Revenue Anticipation Notes, Series 1995-96,
4.500%, 11/01/96 MIG-1 5,020,958
4,000,000 Southeast Resource Recovery Facilities Authority, Series 1995A, Variable
Rate Demand Bonds, 3.300%, 12/01/18+ A-1 4,000,000
6,400,000 Torrance Hospital (Little Company of Mary Hospital-Torrance
Memorial Hospital), Variable Rate Demand Bonds, 3.900%, 2/01/22+ A-2 6,400,000
2,640,000 Vista Multi-Family Housing (Shadowridge Apartments), Variable Rate
Demand Bonds, 3.050%, 5/01/05+ A-1+ 2,640,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 4,500,000 Visalia Public Finance Authority, Certificates of Participation, 1991
Convention Center Expansion Project, Variable Rate Demand
Bonds, 3.350%, 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
- ------------------------------------------------------------------------------------------------------------------------------------
$ 177,380,000 Total Investments - 99.6% 177,424,635
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 709,596
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 178,134,231
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
17
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 2,000,000 Massachusetts Municipal Wholesale Electric Company, Series 1994,
Variable Rate Demand Bonds, 3.050%, 7/01/19+ A-1+ $ 2,000,000
2,200,000 Massachusetts General Obligation Notes, Series 1995A,
4.250%, 6/12/96 MIG-1 2,203,888
1,000,000 Massachusetts Dedicated Income Tax, Series 1990E, Variable Rate
Demand Bonds, 3.350%, 12/01/97+ VMIG-1 1,000,000
3,500,000 Massachusetts Health and Educational Facilities Authority (Fallon
Health Care), Variable Rate Demand Bonds, 3.400%, 4/14/98+ A-1+ 3,500,000
1,420,000 Massachusetts Health and Educational Facilities Authority (Newbury
College), Variable Rate Demand Bonds, 3.100%, 11/01/18+ N/R 1,420,000
700,000 Massachusetts Health and Educational Facilities Authority (Capital Asset
Program), Variable Rate Demand Bonds, 3.700%, 1/01/35+ VMIG-1 700,000
3,500,000 Massachusetts Health and Educational Facilities Authority (Harvard
University), Variable Rate Demand Bonds, 2.800%, 8/01/17+ VMIG-1 3,500,000
2,500,000 Massachusetts Health and Educational Facilities Authority (Brigham
and Women's Hospital), Variable Rate Demand Bonds, 3.500%, 7/01/17+ VMIG-1 2,500,000
1,000,000 Massachusetts Health and Educational Facilities Authority (M.I.T.
Project), Variable Rate Demand Bonds, 2.800%, 7/01/21+ VMIG-1 1,000,000
2,000,000 Massachusetts Health and Educational Facilities Authority (Wellesley
College), Series E, Variable Rate Demand Bonds, 2.700%, 7/01/22+ VMIG-1 2,000,000
800,000 Massachusetts Housing Finance Agency, Multi-Family Revenue Refunding
Bonds, Series 1995A, Variable Rate Demand Bonds, 3.300%, 12/01/25+ VMIG-1 800,000
1,145,000 Massachusetts Industrial Finance Agency (Jencoat/Levy Realty Trust),
Variable Rate Demand Bonds, 4.075%, 10/06/99+ N/R 1,145,000
1,000,000 Massachusetts Industrial Finance Agency (Nova Realty Trust 1994
Refunding), Variable Rate Demand Bonds, 3.150%, 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+ Aa-3 2,600,000
2,300,000 Massachusetts Industrial Finance Agency (Holyoke Water Power Company
Project), Variable Rate Demand Bonds, 2.950%, 5/01/22+ VMIG-1 2,300,000
2,000,000 Massachusetts Health and Educational Facilities Authority (Community
Health Center Capital Fund), Variable Rate Demand Bonds, 3.250%,
3/01/15+ A-2 2,000,000
2,200,000 Massachusetts Industrial Finance Agency, Pollution Control (New
England Power Company Project), Variable Rate DemandBonds, 3.350%,
3/01/18+ A-1 2,200,000
3,400,000 Massachusetts Port Authority, Multimodal Series 1995A, Variable Rate
Demand Bonds, 3.350%, 7/01/15+ VMIG-1 3,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$1,900,000 Massachusetts Industrial Finance Agency (WGBH Educational
Foundation Project), Adjustable Rate Bonds, 3.150%, 10/01/09+ VMIG-1 $1,900,000
1,500,000 Massachusetts Industrial Finance Agency (The Williston Northampton
School), Variable Rate Demand Bonds, 3.050%, 4/01/24+ N/R 1,500,000
3,400,000 Massachusetts Industrial Finance Agency (Showa Women's Institute/
Boston), Variable Rate Demand Bonds, 3.600%, 3/15/04+ VMIG-1 3,400,000
1,000,000 Massachusetts Industrial Finance Agency (Emerson College), Series 1995,
Variable Rate Demand Bonds, 3.400%, 1/01/15+ N/R 1,000,000
2,500,000 Massachusetts Industrial Finance Agency (Edgewood Retirement
Community Project), Series 1995C, Variable Rate Demand Bonds,
3.300%, 11/15/25+ VMIG-1 2,500,000
1,000,000 Massachusetts Industrial Finance Agency (Lower Mills Associates LP),
3.400%, 12/01/20+ N/R 1,000,000
3,000,000 Massachusetts Water Resources Authority, Series 1994, Commercial
Paper, 3.300%, 3/29/96 A-1+ 3,000,000
1,500,000 Boston Water and Sewer Commission, Series 1994A, General Revenue
Senior Series, Variable Rate Demand Bonds, 2.900%, 11/01/24+ VMIG-1 1,500,000
600,000 Brookline General Obligation Notes, Unlimited Tax,
4.650%, 2/15/97 (WI) Aaa 608,298
550,000 Cape Cod Regional Transit Authority, Revenue Anticipation Notes,
Unlimited Tax, 4.100%, 7/05/96 N/R 550,811
1,160,000 Franklin General Obligation Notes, Unlimited Tax, 4.500%, 11/15/96 Aaa 1,165,582
2,600,000 Lincoln Bond Anticipation Notes, Unlimited Tax, 4.000%, 7/05/96 Aa-1 2,602,984
1,000,000 Medford Bond Anticipation Notes, 4.100%, 5/15/96 N/R 1,000,696
1,950,000 Mendon Upton Regional School District, Bond Anticipation Notes,
Unlimited Tax, 3.430%, 2/28/97 (WI) N/R 1,952,418
2,986,000 Merrimac Valley Regional Transit Authority, Revenue Anticipation Notes,
Unlimited Tax, 3.880%, 4/26/96 N/R 2,987,460
900,000 New Bedford Industrial Development (Cliftex Corporation), Series 1989,
Variable Rate Demand Bonds, 4.075%, 10/01/97+ N/R 900,000
2,500,000 Salem Massachusetts Bond Anticipation Notes, 4.000%, 7/01/96 A-1 2,503,050
800,000 Shrewsbury General Obligation Notes, Series 1996, 3.500%, 2/01/97 Aaa 801,776
2,000,000 West Bridgewater Bond Anticipation Notes, Unlimited Tax,
4.000%, 7/24/96 N/R 2,004,933
378,000 West Tisbury General Obligation Notes, Unlimited Tax,
4.900%, 1/01/97 Aaa 381,061
610,000 Westfield General Obligation Notes, Series 1995, 5.800%, 11/15/96 Aaa 618,594
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND-CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
<S> <C> <C> <C>
$ 1,000,000 Puerto Rico Industrial Medical Educational and Environmental
- ----------- Authority (Ana G. Mendez Educational Foundation, FEAGM Project),
Variable Rate Demand Bonds, 3.350%, 12/01/15+ A-1+ $ 1,000,000
---------------------------------------------------------------------------------------------
$70,099,000 Total Investments - 103.0% 70,146,551
=========== ---------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (3.0)% (2,066,551)
---------------------------------------------------------------------------------------------
Net Assets - 100% $68,080,000
=============================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R = Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short=term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
(WI) Security purchased on a when=issued basis (note 1).
See accompanying notes to financial statements.
20
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$1,400,000 New York City Fiscal 94 Series A-10, Variable Rate Demand Bonds,
3.450%, 8/01/16+ VMIG-1 $1,400,000
300,000 New York City Housing Development Corporation (Columbus Gardens
Project), Variable Rate Demand Bonds, 3.150%, 2/01/07+ A-1 300,000
1,000,000 New York City Industrial Development Agency (LaGuardia Associates
Project), Variable Rate Demand Bonds, 3.150%, 12/01/15+ A-1 1,000,000
1,100,000 New York City Trust for Cultural Resources (Guggenheim Foundation),
Variable Rate Demand Bonds, 3.400%, 12/01/15+ VMIG-1 1,100,000
1,300,000 New York City Trust For Cultural Resources, Series 1985 (Carnegie
Hall), Variable Rate Demand Bonds, 3.200%, 12/01/15+ VMIG-1 1,300,000
500,000 Dormitory Authority of the State of New York, Second Short-Term
Revenue Notes, 1989 Series A, Commercial Paper, 3.650%, 3/12/96 A-1 500,000
800,000 Dormitory Authority of the State of New York (St. Francis Center at the
Knolls, Inc.), Variable Rate Demand Bonds, 3.300%, 7/01/23+ VMIG-1 800,000
1,300,000 Dormitory Authority of the State of New York (Oxford University Press),
Series 1993, Variable Rate Demand Bonds, 3.250%, 7/01/23+ VMIG-1 1,300,000
1,400,000 Dormitory Authority of the State of New York (Beverwyck Inc), Series
1995, Variable Rate Demand Bonds, 3.050%, 7/01/25+ VMIG-1 1,400,000
1,400,000 New York State Energy Research and Development Authority, Pollution
Control (Central Hudson Gas and Electric Corporation), Variable Rate
Demand Bonds, 3.050%, 11/01/20+ A-1+ 1,400,000
1,400,000 New York State Energy Research and Development Authority, Pollution
Control (Niagara Mohawk Corporation), Variable Rate Demand Bonds,
3.850%, 3/01/27+ N/R 1,400,000
1,100,000 New York State Environmental Facilities Corporation (General Electric
Company), Commercial Paper, 3.450%, 3/12/96 A-1+ 1,100,000
1,400,000 New York State Housing Finance Agency (Normandie Court), Variable
Rate Demand Bonds, 3.100%, 5/15/15+ VMIG-1 1,400,000
900,000 New York State Housing Finance Agency (Mt. Sinai School of Medicine),
Series 1984-A, Variable Rate Demand Bonds, 3.150%, 11/01/14+ VMIG-1 900,000
885,000 New York State Job Development Authority, Series 1984E, Variable Rate
Demand Bonds, 3.650%, 3/01/99+ MIG-1 885,000
1,400,000 New York Local Government Assistance Corporation, Series 1995E,
Variable Rate Demand Bonds, 3.150%, 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, 3.100%, 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, 3.100%, 11/01/05+ VMIG-1 1,300,000
900,000 New York State Thruway Authority, Variable Rate Demand Bonds,
3.350%, 1/01/24+ VMIG-1 900,000
1,223,387 Babylon Bond Anticipation Notes, 1995 Series A, 3.850%, 10/30/96 N/R 1,226,724
1,000,000 Buffalo Revenue Anticipation Notes, 4.200%, 7/16/96 VMIG-1 1,002,938
1,400,000 Chautauqua County General Obligation, Tax Anticipation Notes,
4.000%, 12/20/96 N/R 1,407,672
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND-CONTINUED
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000,000 Guilderland Industrial Development Agency (Northeastern Industrial
Park), Series 1993A, Variable Rate Demand Bonds,
3.150%, 12/01/08+ P-1 $1,000,000
1,400,000 Monroe County Revenue Anticipation Notes, 1995 General Obligation,
4.500%, 3/14/96 AA 1,400,368
1,200,000 Nassau County Industrial Development Agency (Cold Spring Harbor),
Variable Rate Demand Bonds, 3.450%, 7/01/19+ A-1+ 1,200,000
900,000 Suffolk County Industrial Development Agency (Phototronics
Corporate Facility), Variable Rate Demand Bonds, 3.300%, 1/01/98+ VMIG-1 900,000
1,400,000 Triborough Bridge and Tunnel Authority, Special Obligation, Series 1994,
Variable Rate Demand Bonds, 3.250%, 1/01/24+ MIG-1 1,400,000
1,300,000 Yonkers Industrial Development Agency (Civic Facility), Series 1989,
Variable Rate Demand Bonds, 3.450%, 7/01/19+ VMIG-1 1,300,000
- ----------------------------------------------------------------------------------------------------------------
$31,908,387 Total Investments - 99.1% 31,922,702
===========-----------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 279,872
- ----------------------------------------------------------------------------------------------------------------
Net Assets - 100% $32,202,574
================================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate
disclosed is that currently in effect. This rate changes periodically based on
market conditions or a specified market index.
See accompanying notes to financial statements.
22
<PAGE>
STATEMENT OF NET ASSETS NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in short-term municipal securities,
at amortized cost (note 1) $335,519,554 $177,424,635 $70,146,551 $31,922,702
Cash 3,847,244 312,071 220,655 137,606
Receivables:
Interest 1,304,883 827,401 474,222 135,425
Investments sold -- 100,000 -- 115,000
Other assets 39,995 24,066 12,555 9,974
------------ ------------ ----------- -----------
Total assets 340,711,676 178,688,173 70,853,983 32,320,707
------------ ------------ ----------- -----------
LIABILITIES
Payable for investments purchased -- -- 2,561,026 --
Accrued expenses:
Management fees (note 4) 135,475 58,287 22,560 10,068
Other 170,749 77,370 32,017 38,066
Dividends payable 742,988 418,285 158,380 69,999
------------ ------------ ----------- -----------
Total liabilities 1,049,212 553,942 2,773,983 118,133
------------ ------------ ----------- -----------
Net assets applicable to shares outstanding (note 3) $339,662,464 $178,134,231 $68,080,000 $32,202,574
============ ============ =========== ===========
Shares outstanding:
Service Plan series -- 70,721,933 38,250,579 554,459
Distribution Plan series -- 73,020,093 26,279,242 31,631,448
Institutional series -- 34,392,205 3,550,179 16,667
------------ ------------ ----------- -----------
Total shares outstanding 339,662,464 178,134,231 68,080,000 32,202,574
============ ============ =========== ===========
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>
STATEMENT OF OPERATIONS
Year ended February 29, 1996
<TABLE>
<CAPTION>
RESERVES
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $13,393,726
-----------
Expenses:
Management fees (note 4) 1,685,865
12b-1 expense (note 4) 145,504
Shareholders' servicing agent fees and expenses 461,510
Custodian's fees and expenses 98,054
Directors' fees and expenses (note 4) 4,173
Professional fees 22,196
Shareholders' reports-printing and mailing expenses 181,747
Federal and state registration fees 15,054
Other expenses 34,254
-----------
Total expenses before expense reimbursement 2,648,357
Expense reimbursement from investment adviser (note 4) (119,509)
-----------
Net expenses 2,528,848
-----------
Net investment income 10,864,878
Net gain (loss) from investment transactions -
-----------
Net increase in net assets from operations $10,864,878
===========
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA MONEY MARKET
-----------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 2,249,638 $ 2,663,057 $ 1,426,639 $ 6,339,334
------------ ------------- ------------- -------------
Expenses:
Management fees (note 4) 234,499 276,546 148,326 659,371
12b-1 expense (note 4) 53,171 49,929 - 103,100
Shareholders' servicing agent fees and expenses 4,707 41,838 350 46,895
Custodian's fees and expenses 18,090 23,545 13,076 54,711
Directors' fees and expenses (note 4) 1,164 1,459 832 3,455
Professional fees 6,555 7,421 3,939 17,915
Shareholders' reports--printing and mailing expenses 3,829 21,456 200 25,485
Federal and state registration fees 1,504 538 - 2,042
Other expenses 4,140 5,218 3,945 13,303
------------ ------------- ------------- -------------
Total expenses before expense reimbursement 327,659 427,950 170,668 926,277
Expense reimbursement from investment adviser (note 4) (11,469) (47,885) - (59,354)
------------ ------------- ------------- -------------
Net expenses 316,190 380,065 170,668 866,923
------------ ------------- ------------- -------------
Net investment income 1,933,448 2,282,992 1,255,971 5,472,411
Net gain (loss) from investment transactions - - - -
------------ ------------- ------------- -------------
Net increase in net assets from operations $ 1,933,448 $ 2,282,992 $ 1,255,971 $ 5,472,411
------------ ------------- ------------- -------------
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
STATEMENT OF OPERATIONS
Year ended February 29, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS MONEY MARKET
------------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series Series Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 1,139,943 $ 904,774 $ 124,483 $ 2,169,200
------------ ---------- ----------- -------------
Expenses:
Management fees (note 4) 123,420 97,516 13,492 234,428
12b-1 expense (note 4) 30,649 21,424 - 52,073
Shareholders' servicing agent fees and expenses 801 32,367 747 33,915
Custodian's fees and expenses 22,234 22,962 2,566 47,762
Directors' fees and expenses (note 4) 1,237 1,029 137 2,403
Professional fees 8,515 6,795 1,010 16,320
Shareholders' reports--printing and mailing expenses 261 18,368 277 18,906
Federal and state regulation fees 3,358 1,165 626 5,149
Other expenses 3,824 2,433 415 6,672
------------ ---------- ----------- -------------
Total expenses before expense reimbursement 194,299 204,059 19,270 417,628
Expense reimbursement from investment adviser (note 4) (24,442) (70,083) (919) (95,444)
------------ ---------- ----------- -------------
Net expenses 169,857 133,976 18,351 322,184
------------ ---------- ----------- -------------
Net investment income 970,086 770,798 106,132 1,847,016
Net gain (loss) from investment transactions - - - -
------------ ---------- ----------- -------------
Net increase in net assets from operations $ 970,086 $ 770,798 $ 106,132 $ 1,847,016
============ ========== =========== =============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK MONEY MARKET
----------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 18,844 $ 1,135,683 $ 624 $ 1,155,151
------------ ------------ ------------ ------------
Expenses:
Management fees (note 4) 2,014 121,439 66 123,519
12b-1 expense (note 4) 299 13,414 - 13,713
Shareholders' servicing agent fees and expenses 1,141 29,335 22 30,498
Custodian's fees and expenses 933 57,461 32 58,426
Directors' fees and expenses (note 4) 7 371 - 378
Professional fees 263 16,033 9 16,305
Shareholders' reports--printing and mailing expenses 2,679 43,448 73 46,200
Federal and state registration fees 2,293 631 26 2,950
Other expenses 58 3,145 1 3,204
------------ ------------ ------------ ------------
Total expenses before expense reimbursement 9,687 285,277 229 295,193
Expense reimbursement from investment adviser (note 4) (6,908) (118,284) (138) (125,330)
------------ ------------ ------------ ------------
Net expenses 2,779 166,993 91 169,863
------------ ------------ ------------ ------------
Net investment income 16,065 968,690 533 985,288
Net gain (loss) from investment transactions - - - -
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 16,065 $ 968,690 $ 533 $ 985,288
------------ ------------ ------------ ------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
RESERVES
------------- -------------
Year ended Year ended
2/29/96 2/28/95
------------- -------------
<S> <C> <C>
OPERATIONS
Net investment income $ 10,864,878 $ 8,795,175
Net realized gain (loss) from investment transactions -- --
------------- -------------
Net increase in net assets from operations 10,864,878 8,795,175
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (10,864,878) (8,795,175)
------------- -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 808,776,352 657,011,312
Net asset value of shares issued to shareholders due
to reinvestment of distributions from net investment
income and from net realized gains from investment
transactions 10,240,006 7,787,100
------------- -------------
819,016,358 664,798,412
Cost of shares redeemed (830,960,291) (717,393,211)
------------- -------------
Net increase (decrease) in net assets derived from
Common share transactions (11,943,933) (52,594,799)
Net assets at the beginning of year 351,606,397 404,201,196
------------- -------------
Net assets at the end of year $ 339,662,464 $ 351,606,397
============= =============
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
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 from net investment
income and from net realized gains from investment
transactions............................................ 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.
29
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA MONEY MARKET
----------------------------------------------------------------------
Year ended February 28, 1995
----------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,628,687 $ 1,814,647 $ 1,366,100 $ 5,809,434
Net realized gain (loss) from investment transactions (11,576) (4,489) (2,299) (18,364)
------------- ------------- ------------- -------------
Net increase in net assets from operations 2,617,111 1,810,158 1,363,801 5,791,070
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (2,617,111) (1,810,158) (1,363,801) (5,791,070)
------------- ------------- ------------- -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 208,318,412 113,315,156 247,997,081 569,630,649
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment
income and from net realized gains from investment
transactions 2,983,786 1,322,451 7,041 4,313,278
------------- ------------- ------------- -------------
211,302,198 114,637,607 248,004,122 573,943,927
Cost of shares redeemed (584,768,062) (119,860,860) (229,530,966) (934,159,888)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets derived from
Common share transactions (373,465,864) (5,223,253) 18,473,156 (360,215,961)
Net assets at the beginning of year 415,237,782 72,380,432 32,299,233 519,917,447
------------- ------------- ------------- -------------
Net assets at the end of year $ 41,771,918 $ 67,157,179 $ 50,772,389 $ 159,701,486
============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
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 from net investment
income and from net realized gains from investment
transactions 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.
31
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS MONEY MARKET
---------------------------------------------------------------------
Year ended February 28, 1995
---------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,007,902 $ 699,762 $ 101,590 $ 1,809,254
Net realized gain (loss) from investment transactions (1,430) (1,013) (60) (2,503)
------------- ------------ ------------ -------------
Net increase in net assets from operations 1,006,472 698,749 101,530 1,806,751
------------- ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (1,006,472) (698,749) (101,530) (1,806,751)
------------- ------------ ------------ -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 126,292,160 26,877,207 10,226,869 163,396,236
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment income
and from net realized gains from investment transactions 982,397 655,827 5,596 1,643,820
------------- ------------ ------------ -------------
127,274,557 27,533,034 10,232,465 165,040,056
Cost of shares redeemed (138,119,127) (31,068,859) (12,602,539) (181,790,525)
------------- ------------ ------------ -------------
Net increase (decrease) in net assets derived from
Common share transactions (10,844,570) (3,535,825) (2,370,074) (16,750,469)
Net assets at the beginning of year 38,576,122 27,773,005 3,405,634 69,754,761
------------- ------------ ------------ -------------
Net assets at the end of year $ 27,731,552 $ 24,237,180 $ 1,035,560 $ 53,004,292
============= ============ ============ =============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<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 from net investment
income and from net realized gains from investment
transactions 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.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK MONEY MARKET
-----------------------------------------------------------------------
Year ended February 28, 1995
-----------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 17,057 $ 692,514 $ 385 $ 709,956
Net realized gain (loss) from investment transactions - - - -
----------- ------------ -------- ------------
Net increase in net assets from operations 17,057 692,514 385 709,956
----------- ------------ -------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (17,057) (692,514) (385) (709,956)
----------- ------------ -------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 1,126,675 16,626,815 - 17,753,490
Net asset value of shares issued to shareholders due to
reinvestment of distributions from net investment
income and from net realized gains from investment
transactions 15,591 626,707 - 642,298
----------- ------------ -------- ------------
1,142,266 17,253,522 - 18,395,788
Cost of shares redeemed (1,058,955) (15,341,900) - (16,400,855)
----------- ------------ -------- ------------
Net increase (decrease) in net assets derived from
Common share transactions 83,311 1,911,622 - 1,994,933
Net assets at the beginning of year 556,762 27,886,050 16,667 28,459,479
----------- ------------ -------- ------------
Net assets at the end of year $ 640,073 $ 29,797,672 $ 16,667 $ 30,454,412
=========== ============ ======== ============
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At February 29, 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 an 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 February 29, 1996, the dollar-weighted
average life was 33 days for Reserves, 22 days for California Money Market, 53
days for Massachusetts Money Market and 32 days for New York Money Market).
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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. 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 its purchase commitments. At
February 29, 1996, the Massachusetts Money Market had purchase commitments of
$2,561,026. There were no such purchase commitments in any of the other 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 all of its net investment income,
including any net realized gains from investments, to shareholders. Therefore,
no federal income tax provision is required. Furthermore, each Fund intends to
satisfy conditions which will enable interest from municipal securities, which
is exempt from regular federal income tax 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. All income
dividends paid during the year ended February 29, 1996, have been designated
Exempt Interest Dividends.
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
36
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
and payment of principal at maturity. Although such insurance would not
guarantee the market value of the bonds or the value of the Funds' shares, the
Funds believe that their ability to obtain insurance for such bonds under such
adverse circumstances will enable the Funds to hold or dispose of such bonds at
a price at or near their par value.
Derivative 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 future, 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 year ended February 29, 1996,
other than occasional purchases of high quality synthetic money market
securities, if applicable.
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
2. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment securities during the
year ended February 29, 1996, were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
RESERVES CA MA NY
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases............. $1,299,772,860 $483,700,236 $235,091,836 $106,630,911
Sales and Maturities.. 1,317,652,500 458,401,000 216,602,000 104,915,000
- --------------------------------------------------------------------------------------
</TABLE>
At February 29, 1996, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for all
Funds.
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. COMPOSITION OF NET ASSETS
At February 29, 1996, the Funds had common stock authorized at $.01 par value
per share. The composition of net assets as well as the number of authorized
shares were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in:
Service Plan series $ -- $ 70,721,933 $ 38,250,579 $ 554,459
Distribution Plan series -- 73,020,093 26,279,242 31,631,448
Institutional series -- 34,392,205 3,550,179 16,667
-------------- -------------- -------------- --------------
Net assets $ 339,662,464 $ 178,134,231 $ 68,080,000 $ 32,202,574
============== ============== ============== ==============
Authorized shares 2,000,000,000 2,350,000,000 2,500,000,000 2,500,000,000
============== ============== ============== ==============
</TABLE>
[CAPTION]
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 Distributor 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.
38
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
The management fee referred to above is reduced by, or the Adviser assumes
certain expenses of each Fund, in an amount necessary to prevent the total
expenses of each Fund (including the management fee and each Fund's share of
service payments under the Distribution and Service Plans, but excluding
interest, taxes, fees incurred in acquiring and disposing of portfolio
securities and, to the extent permitted, extraordinary expenses) in any fiscal
year from exceeding .75 of 1% of the average daily net asset value of Reserves,
and .55 of 1% of the average daily net asset value of the California,
Massachusetts and New York Money Market Funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to their directors who are affiliated with the Adviser or
to their officers, all of whom receive remuneration for their services to the
Funds from the Adviser.
5. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation and
revenue bonds. At February 29, 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 36% 12% 12% 27%
Health Care Facilities 23 20 21 15
Housing Facilities 6 22 3 8
Water/Sewer Facilities 3 14 6 --
Educational Facilities 4 -- 14 2
Lease Rental Facilities -- 12 -- --
Electric Utilities 2 4 10 --
Transportation 2 -- 5 3
Other 13 9 -- 22
General Obligation Bonds 11 7 29 23
--- --- --- ---
100% 100% 100% 100%
=== === === ===
- -----------------------------------------------------------
</TABLE>
In addition, certain temporary investments in short-term municipal securities
have credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions (95% for Reserves,
100% for California, 62% for Massachusetts and 84% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
39
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------------------------------------------
Net
realized and Dividends
Net asset Net unrealized gain from net Distribution Net asset
value beginning investment (loss) from investment from value end of
of period income investments income capital gains period
- --------------------------------------------------------------------------------------------------------------------------------
RESERVES
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Year ended 2/29
1996 $1.000 $.032* $ - $(.032) $ - $1.000
Year ended 2/28,
1995 1.000 .025* - (.025) - 1.000
1994 1.000 .018* - (.018) - 1.000
1993 1.000 .023 - (.023) - 1.000
5 months ended
2/29/92 1.000 015 - (.015) - 1.000
Year ended 9/30,
1991 1.000 .046 - (.046) - 1.000
1990 1.000 .055 - (.055) - 1.000
1989 1.000 .057 - (.057) - 1.000
Year ended 2/29
1988 1.000 .045 - (.045) - 1.000
Year ended 2/28,
1987 1.000 .039 - (.039) - 1.000
1986 1.000 .045* - (.045) - 1.000
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
40
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
- ---------------------------------------------------------------------------------------------------------------
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
on net asset end of period net assets before net assets before assets after net assets after
value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3.23% $339,662 .79% 3.18% .75% 3.22%
2.46 351,606 .78 2.40 .75 2.43
1.84 404,201 .80 1.78 .75 1.83
2.34 450,746 .74 2.35 .74 2.35
1.45 477,127 .75+ 3.48+ .75+ 3.48+
4.57 451,808 .72 4.56 .72 4.56
5.45 430,206 .73 5.45 .73 5.45
5.70 390,258 .72 5.69 .72 5.69
4.52 409,653 .73 4.52 .73 4.52
3.88 361,044 .73 3.85 .73 3.85
4.46 272,677 .80 4.34 .75 4.39
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
41
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
- ---------------------------------------------------------------------------------------------------------------------------
Net
Net realized and
asset value Net unrealized Dividends from Distributions
beginning investment gain (loss) from net investment from
of period income investments income capital gains
- ---------------------------------------------------------------------------------------------------------------------------
CA**
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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) -
8 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,
1990++ 1.000 .054* - (.054) -
1989++ 1.000 .056* - (.056) -
1988++ 1.000 .043* - (.043) -
1987++ 1.000 .039* - (.039) -
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46
42
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of net
Ratio of investment Ratio Ratio of net
expenses to income to of expenses investment income
Net assets average net average net to average to average
Net asset value Total return on end of period assets before assets before net assets after net assets after
end of period net asset value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1.000 3.32% $ 70,722 .56% 3.28% .54% 3.30%
1.000 3.31 73,020 .62 3.23 .55 3.30
1.000 3.40 34,392 .46 3.39 .46 3.39
1.000 2.59 41,772 .59 2.15 .55 2.19
1.000 2.60 67,157 .64 2.47 .55 2.56
1.000 2.69 50,772 .47 2.74 .47 2.74
1.000 1.94 415,238 .53 1.94 .53 1.94
1.000 1.92 72,380 .73 1.74 .55 1.92
1.000 2.07 32,299 .41 2.06 .41 2.06
1.000 2.28 469,812 .57 2.24 .55 2.26
1.000 2.29 80,652 .62 2.19 .55 2.26
1.000 2.36 24,156 .47 2.33 .47 2.33
1.000 2.39 478,886 .56+ 3.53+ .55+ 3.54+
1.000 2.39 91,670 .61+ 3.48+ .55+ 3.54+
1.000 2.45 18,334 .45+ 3.64+ .45+ 3.64+
1.000 4.70 431,590 .57 4.65 .55 4.67
1.000 4.70 90,031 .61 4.61 .55 4.67
1.000 4.80 22,342 .45 4.77 .45 4.77
1.000 5.37 452,465 .59 5.34 .55 5.38
1.000 5.62 362,927 .57 5.68 .55 5.70
1.000 4.28 207,897 .59 4.27 .55 4.31
1.000 3.90 284,956 .63 3.79 .50 3.92
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- ---------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------------------------------------------
Net
Net realized and Dividends
asset value Net unrealized gain from net Distribution
beginning investment (loss) from investment from
of period income investments income capital gains
- ---------------------------------------------------------------------------------------------------------------
MA***
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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
2/28/94
Service Plan series 1.000 .023* -- (.023) --
Distribution Plan series 1.000 .023* -- (.023) --
Institutional series 1.000 .023* -- (.023) --
10 months ended
2/29/92
Service Plan series 1.000 .032* -- (.032) --
Distribution Plan 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,
1990++ 1.000 .057* -- (.057) --
1989++ 1.000 .050* -- (.050) --
1988++ 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 ANNUAL REPORT
FEBRUARY 29, 1996
- -------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Net asset Total return Net assets average income to average to average net income to average
value end of on net asset end of period net assets before net assets before assets after net assets after
period value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$1.000 3.17% $38,251 .63% 3.06% .55% 3.14%
1.000 3.17 26,279 .84 2.87 .55 3.16
1.000 3.18 3,550 .57 3.12 .54 3.15
1.000 2.53 27,732 .61 2.49 .55 2.55
1.000 2.53 24,237 .82 2.28 .55 2.55
1.000 2.61 1,036 .47 2.63 .47 2.63
1.000 1.77 38,576 .55 1.88 .52 1.91
1.000 1.74 27,773 .76 1.67 .55 1.88
1.000 1.80 3,406 .49 1.93 .49 1.93
1.000 2.33 40,214 .73 2.16 .55 2.34
1.000 2.33 27,993 .82 2.07 .55 2.34
1.000 2.34 5,325 .58 2.31 .55 2.34
1.000 3.22 61,476 .62+ 3.73+ .55+ 3.80+
1.000 3.22 34,509 .72+ 3.63+ .55+ 3.80+
1.000 3.24 8,917 .53+ 3.82+ .53+ 3.82+
1.000 5.30 37,979 .68 5.12 .55 5.25
1.000 5.30 33,809 .76 5.04 .55 5.25
1.000 5.30 14,973 .54 5.26 .54 5.26
1.000 5.70 53,631 .74 5.48 .55 5.67
1.000 5.00 31,319 .76 4.97 .55 5.18
1.000 4.29 35,614 .75 4.03 .48 4.30
1.000 1.60 12,371 3.02+ 1.40+ .06+ 4.36+
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
--------------------------------- ---------------------------------
Net
Net realized and
asset value Net unrealized Dividends from Distributions
beginning investment gain (loss) from net investment from
of period income investments income capital gains
- ----------------------------------------------------------------------------------------------------------------------------------
NY***
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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,
1990++ 1.000 .054* - (.054) -
1989++ 1.000 .050* - (.050) -
1988++ 1.000 .041* - (.041) -
12/10/86 to
4/30/87++ 1.000 .015* - (.015) -
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser, if applicable (note 4).
** Effective for the fiscal year ended June 30, 1991, and thereafter, the Fund
has presented the above per share data by series.
*** Effective for the fiscal year ended April 30, 1991, and thereafter, the
Fund has presented the above per share data by series.
+ Annualized.
+ + Represents combined per share data and ratios for the Service Plan,
Distribution Plan and Institutional series.
46
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS ANNUAL REPORT
FEBRUARY 29, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of net Ratio of Ratio of net
expences investment income expences investment income
Net assets to average to average to average to average
Net asset value Total return on end of period net assets before net assets before net assets after net assets after
end of period net asset value (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C>
$1.000 3.20% $ 554 1.92% 1.82% .55% 3.19%
1.000 3.20 31,631 .94 2.80 .55 3.19
1.000 3.20 17 1.38 2.37 .55 3.20
1.000 2.36 640 .95 1.98 .55 2.38
1.000 2.37 29,798 .79 2.14 .55 2.38
1.000 2.28 17 2.14 .79 .55 2.38
1.000 1.51 557 1.49 .69 .55 1.63
1.000 1.51 27,886 .78 1.40 .55 1.63
1.000 1.51 17 4.60 (2.42) .55 1.63
1.000 2.02 529 1.17 1.42 .55 2.04
1.000 2.02 34,827 .78 1.81 .55 2.04
1.000 2.02 17 19.33 (16.59) .55 2.19
1.000 2.94 1,934 .87+ 3.19+ .55+ 3.51+
1.000 2.94 45,259 .71+ 3.35+ .55+ 3.51+
1.000 2.97 17 11.89+ (7.83)+ .55+ 3.51+
1.000 4.73 1,653 .88 4.39 .55 4.72
1.000 4.73 41,446 .69 4.58 .55 4.72
1.000 4.73 17 .62 4.65 .55 4.72
1.000 5.36 41,602 .71 5.18 .55 5.34
1.000 4.95 30,262 .86 4.74 .55 5.05
1.000 4.10 17,016 1.03 3.54 .50 4.07
1.000 1.50 4,134 4.20+ .05+ .05+ 4.20+
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47
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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.
For nearly 100 years,
Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
municipal bonds
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John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
OEF3-APR96
