<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+
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
[PHOTO OF PAINTING APPEARS HERE]
Your
investment
partners
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers-Nuveen believes that forging
relationships within these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their needs
in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent financial
planners, to bring the benefits of tax-free investing to you. These advisers are
experts at identifying your needs and recommending the best solutions for your
situation. Together we make a powerful team, helping you create a successful
investment plan that meets your needs today and in the future.
For nearly 100 years,
Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
municipal bonds
[NUVEEN LOGO]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
OEF3-APR96
