<PAGE>
[NUVEEN LOGO]
[PHOTO APPEARS HERE]
Nuveen Tax-Free
Money Market Funds
Dependable tax-free
income for generations
TAX-FREE RESERVES
CALIFORNIA
MASSACHUSETTS
NEW YORK
SEMIANNUAL REPORT/AUGUST 31, 1996
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
7 Fund performance
9 Portfolio of investments
23 Statement of net assets
24 Statement of operations
28 Statement of changes in net assets
35 Notes to financial statements
40 Financial highlights
<PAGE>
Dear
shareholder
[PHOTOGRAPH]
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen Tax-Free Money
Market Funds, I am pleased to have this opportunity to report to you on the
performance of your funds. My experience at Nuveen over the past 19 years has
shaped my commitment to maintaining Nuveen's tradition of providing quality
investments through prudent management. Our goal is to help our shareholders
meet their investment needs with a full range of investment choices. In money
market funds we continue to focus on attractive levels of income,
diversification, and daily liquidity, with the knowledge that these funds play
an integral role in helping you reach your investment goals.
In contrast to 1994 and early 1995, when the Federal Reserve made an
unprecedented series of seven increases in short-term interest rates, the Fed
has reacted to low inflation and moderate economic expansion over the past year
by making only three moves since July 1995, each one a rate reduction. While
overall yields on money market funds this year are lower than last year's,
reflecting this generally lower interest rate environment, the tax-free money
market funds offered by Nuveen still provide solid yields when compared to
taxable investments for investors in higher tax brackets.
"Nuveen money market funds continue to play an integral role in helping you
reach your investment goals."
3
<PAGE>
As of August 31, 1996, the seven-day annualized yield for the money market
funds covered in this report ranged from 2.86% to 3.03%. To match these yields,
an investor in the 36% federal income tax bracket would have had to earn at
least 4.47% on taxable alternatives. For the state money market funds, the
addition of state taxes increases the advantage provided by tax-free municipal
bond funds, raising the required taxable-equivalent yield to a range of 4.87% to
5.22%.
I would also like to take this opportunity to share with you the news of some
recent developments that will give Nuveen more flexibility to meet expanded
investor needs for capital preservation, current income, and future growth. For
nearly 100 years, we have offered products and services designed for the prudent
investor, services that have grown over the years as a natural extension of our
expertise in municipal bonds.
In November, Nuveen will introduce the Nuveen Growth and Income Stock Fund,
designed to provide a high-quality equity complement to our current municipal
bond funds. The fund will be offered in affiliation with Institutional Capital
Corporation (ICAP), an institutional equity management firm located in Chicago
that shares Nuveen's values and investment management style. Tailor-made to
address the needs of many Nuveen investors, the fund can play a critical role in
achieving a balanced strategy for investors who expect their investments to
provide a core element of their financial security.
In addition, Nuveen plans to acquire Flagship Resources, Inc., a fixed-income
mutual fund specialist based in Dayton, Ohio. Flagship is a firm that shares our
views on the importance of research and emphasizes a conservative, value-
oriented approach to portfolio management. In January 1997, the tax-exempt
mutual fund activities of Flagship and Nuveen expect to be merged, enabling us
to offer more than 40 municipal bond funds, the broadest selection available in
the U.S. Intermediate and limited term national funds as well as product
offerings in 24 states will provide more tax-free options to match investors'
individual needs.
We are excited about these recent developments, and we are pleased to be
bringing Nuveen investors expanded options for achieving wealth preservation,
dependable income, and long-term asset growth. We thank you for your continued
confidence in Nuveen.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
October 15, 1996
4
<PAGE>
Answering your
questions
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
How did the municipal market perform over the past year?
Unlike the prior two years, 1996's bond market has not been easy to categorize.
While 1994 represented the worst period in recent bond market history and 1995
the best in a decade, this year has seen a stream of mixed reports on the state
of the economy that have alternately caused investors to view the markets with
enthusiasm, then uncertainty. Despite this climate, the municipal bond market
has rewarded investors with solid taxable-equivalent yields and opportunities to
purchase bonds with strong credit quality.
What has been Nuveen's investment approach during this period?
Nuveen continues to look for opportunities to capture attractive yields in
different market sectors and over many types of securities, including tax-free
variable rate demand notes, tax and revenue anticipation notes, commercial
paper, and selected certificates of participation.
5
<PAGE>
[PHOTOGRAPH]
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
How do short-term funds fit into a diversified portfolio?
Money market fund investors receive attractive income along with share price
stability, daily liquidity, and investment convenience. These short-term
instruments provide a valuable balance in portfolios with other long-term
holdings and give investors easy access to funds and the flexibility of
checkwriting.
What is your outlook for the municipal market?
A look at the current economy shows a combination of factors that historically
bode well for the bond market. Inflation continues at the same modest pace that
it has demonstrated over the past five years. The Federal Reserve's decision to
stand pat on short-term rates since January indicates that it believes inflation
is under control. The economy continues to enjoy modest expansion, supported by
generally level producer prices, low wage pressures, and a stable money supply.
Fading worries about tax reform--and the potential effect of a flat tax
proposal--have resulted in increased demand for tax-free products.
6
<PAGE>
NUVEEN TAX-FREE
RESERVES, INC.
Tax-Free Reserves
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 4.56% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.52
10/95 3.30
11/95 3.23
12/95 3.95
1/96 2.93
2/96 2.75
3/96 2.80
4/96 3.16
5/96 3.05
6/96 2.93
7/96 2.96
8/96 2.92
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 2.92%
Taxable-equialent yield on NAV* 4.56%
Federal tax rate 36.0%
Total net assets ($000) 304,968
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive
this return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
NUVEEN CALIFORNIA TAX-FREE
MONEY MARKET FUND
California
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 5.22% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.69
10/95 3.40
11/95 3.28
12/95 4.33
1/96 2.97
2/96 2.85
3/96 2.88
4/96 3.34
5/96 3.20
6/96 2.93
7/96 3.11
8/96 3.00
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 3.03%
Taxable-equivalent yield on NAV* 5.22%
Combined state and federal tax rate 42.0%
Total net assets ($000) 202,703
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive this
return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
7
<PAGE>
NUVEEN MASSACHUSETTS TAX-FREE
MONEY MARKET FUND
Massachusetts
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 5.06% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.44
10/95 3.24
11/95 3.10
12/95 3.76
1/96 2.88
2/96 2.77
3/96 2.78
4/96 3.19
5/96 3.03
6/96 2.80
7/96 2.95
8/96 2.86
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 2.86%
Taxable-equivalent yield on NAV* 5.06%
Combined state and federal tax rate 43.5%
Total net assets ($000) 70,971
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive this
return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
NUVEEN NEW YORK TAX-FREE
MONEY MARKET FUND
New York
Shareholders enjoyed attractive tax-free dividends over the past 12 months even
though the Fund's 7-day annualized yield fell during the period. On an after-tax
basis, the 7-day yield was 4.87% as of August 31, 1996.
[GRAPH APPEARS HERE]
9/95 3.46
10/95 3.26
11/95 3.22
12/95 4.12
1/96 2.92
2/96 2.75
3/96 2.79
4/96 3.31
5/96 3.13
6/96 2.85
7/96 2.96
8/96 2.90
- -------------------------------------------------
FUND HIGHLIGHTS 8/31/96
- -------------------------------------------------
Current 7-day SEC yield on NAV 2.90%
Taxable-equivalent yield on NAV* 4.87%
Combined state and federal tax rate 40.5%
Total net asset ($000) 29,157
- -------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
*An investor subject to the indicated income tax rate would need to receive this
return from a fully taxable investment to equal the stated 7-day annualized
yield on NAV.
8
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
NUVEEN TAX-FREE RESERVES, INC.
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA--2.7%
$ 8,200,000 The Medical Clinic Board of the City of Birmingham--UAHSF,
Medical Clinic Review Bonds, UAHSF Series 1991,
Variable Rate Demand Bonds, 3.850%, 12/01/26+ A-1+ $ 8,200,000
- -------------------------------------------------------------------------------------------------------------------------
ARIZONA--7.0%
7,000,000 The Industrial Development Authority of the County of Apache
(Arizona), Pollution Control Revenue Bonds, 1981 Series B (Tucson
Electric Power Company Project), Variable Rate Demand Bonds,
3.550%, 10/01/21+ VMIG-1 7,000,000
1,800,000 Maricopa County, Arizona, Pollution Control Corporation, Pollution
Control Revenue Refunding Bonds (Arizona Public Service
Company Palo Verde Project), 1994 Series F, Variable Rate
Demand Bonds, 3.750%, 5/01/29+ A-1+ 1,800,000
12,600,000 City of Mesa Municipal Development Corporation, Special Tax Updates
Bonds, Series 1985, Commercial Paper, 3.500%, 11/21/96 VMIG-1 12,600,000
- -------------------------------------------------------------------------------------------------------------------------
ARKANSAS--1.0%
3,000,000 Board of Trustees of the University of Arkansas, Various Facility
Revenue Bonds (UAMS Campus), Series 1994,
Variable Rate Demand Bonds, 3.550%, 12/01/19+ VMIG-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--1.7%
5,000,000 California School Cash Reserve Program Authority, 1996 Pool Bonds
Series A, Note, 4.750%, 7/02/97 MIG-1 5,034,033
- -------------------------------------------------------------------------------------------------------------------------
DELAWARE--3.8%
11,572,500 New Castle County, Delaware, Economic Development Revenue
Refunding Bonds (Henderson/McGuire Partners Project), Series 1993,
Variable Rate Demand Bonds, 3.550%, 8/15/20+ A-1 11,572,500
- -------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA--2.1%
6,400,000 District of Columbia (Washington, D.C.), General Obligation General
Fund Recovery Bonds, Series 1991B, Variable Rate Demand
Bonds, 3.950%, 6/01/03+ VMIG-1 6,400,000
- -------------------------------------------------------------------------------------------------------------------------
FLORIDA--5.5%
1,400,000 Florida Housing Finance Authority, Multi-Family Housing Revenue
Refunding Bonds, 1989 Series E (Fairmont Oaks Project),
Variable Rate Demand Bonds, 3.700%, 4/01/26+ A-1 1,400,000
4,210,000 Florida Municipal Power Agency, Initial Pooled Loan Project, Series A,
Commercial Paper Notes, 3.550%, 9/20/96 A-1 4,210,000
3,100,000 Pasco County Housing Finance Authority, Multi-Family Housing
Revenue Bonds (Carlton Arms of Magnolia Valley Project),
Series 1985, Variable Rate Demand Bonds, 3.625%, 12/01/07+ VMIG-1 3,100,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA (CONTINUED)
$ 4,800,000 Sarasota County Public Hospital District, Hospital Revenue Bonds
(Sarasota Memorial Hospital Project), Series C,
Commercial Paper, 3.750%, 9/16/96 A-1 $ 4,800,000
3,300,000 Sunshine State Governmental Financing Commission, Revenue Bonds,
Series 1986, Commercial Paper, 3.550%, 9/17/96 VMIG-1 3,300,000
- -------------------------------------------------------------------------------------------------------------------------
GEORGIA--4.4%
3,400,000 Municipal Gas Authority of Georgia, Gas Revenue Bonds (Transco
Portfolio I Project), Series B, Commercial Paper, 3.650%, 10/11/96 VMIG-1 3,400,000
10,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates (St. Joseph's
Hospital of Atlanta Project), Series 1989, Commercial Paper,
3.500%, 11/27/96 VMIG-1 10,000,000
- -------------------------------------------------------------------------------------------------------------------------
HAWAII--0.9%
2,600,000 Hawaii State Department of Budget and Finance, Special Purpose
Floating Rate Demand Bonds (Adventist Health System),
Variable Rate Demand Bonds, 3.800%, 9/01/99+ A-1 2,600,000
- -------------------------------------------------------------------------------------------------------------------------
ILLINOIS--11.3%
7,000,000 Illinois Development Finance Authority, Pollution Control Revenue
Bonds (Diamond-Star Motors Corporation Project), Series 1985,
Variable Rate Demand Bonds, 3.850%, 12/01/08+ P-1 7,000,000
6,000,000 Illinois Educational Facilities Authority, Adjustable Demand Revenue
Bonds, Shedd Aquarium Society, Series 1987B, Commercial Paper,
3.600%, 12/04/96 VMIG-1 6,000,000
3,300,000 Illinois Health Facilities Authority, Series 1985 (Condell Memorial
Hospital), Variable Rate Demand Bonds, 3.750%, 11/01/05+ VMIG-1 3,300,000
5,000,000 Illinois Health Facilities Authority, Adjustable Demand Revenue
Bonds, Series 1991 (Victory Health Services Project), Commercial
Paper, 3.600%, 9/19/96 VMIG-1 5,000,000
6,500,000 City of Chicago, General Obligation Tender Notes, Series 1995A,
Note, 3.650%, 10/31/96 VMIG-1 6,500,000
1,000,000 Chicago O'Hare International Airport (American Airlines), Variable
Rate Demand Bonds, 3.750%, 12/01/17+ P-1 1,000,000
5,700,000 Decatur Water Revenue Bonds (New South Water Treatment), Series
1985, Commercial Paper, 3.550%, 9/10/96 VMIG-1 5,700,000
- -------------------------------------------------------------------------------------------------------------------------
INDIANA--3.1%
6,000,000 Indianapolis Economic Development Refunding Revenue
(Yellow Freight), Commercial Paper, 4.500%, 1/15/97 N/R 6,000,000
3,500,000 The Metropolitan School District of Washington Township, Marion
County, Indiana, Temporary Loan Warrants, 1996 Second Series,
Note, 4.100%, 12/31/96 N/R 3,502,252
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
IOWA--2.9%
$ 6,000,000 Iowa School Corporations, Warrant Certificates, Series 1996-97
Series A, Note, 4.750%, 6/27/97 MIG-1 $ 6,037,796
2,900,000 City of Eddyville, Iowa, Industrial Development Revenue Bonds
(Heartland Lysine Inc., Project), Variable Rate Demand Bonds,
3.950%, 11/01/03+ N/R 2,900,000
- -------------------------------------------------------------------------------------------------------------------------
KENTUCKY--3.6%
2,000,000 Kentucky Governmental Agencies, 1996 Cash Flow Borrowing
Program, Certificates of Participation, Tax and Revenue
Anticipation Notes, 4.300%, 6/30/97 N/R 2,002,363
9,005,000 Hancock County, Kentucky, Industrial Building Revenue Refunding
Bonds (Southwire Company Project), Series 1990, Variable Rate
Demand Bonds, 4.000%, 7/01/10+ N/R 9,005,000
- -------------------------------------------------------------------------------------------------------------------------
LOUISIANA--5.3%
9,100,000 Louisiana Recovery District, Sales Tax Bonds, Series 1988, Variable
Rate Demand Bonds, 3.850%, 7/01/97+ VMIG-1 9,100,000
4,000,000 Parish of West Feliciana, State of Louisiana, Multiple Rate Demand
Pollution Control Revenue Bonds (Gulf States Utilities Company
Project), Series 1985D, Variable Rate Demand Bonds, 3.850%, 12/01/15+ VMIG-1 4,000,000
3,000,000 Parish of West Feliciana, State of Louisiana, Multiple Rate Demand
Pollution Control Revenue Bonds (Gulf States Utilities Company
Project), Series 1986, Variable Rate Demand Bonds, 3.850%, 4/01/16+ VMIG-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS--1.6%
5,000,000 Town of Mashpee, Massachusetts, Bond Anticipation Notes,
3.750%, 2/07/97 N/R 5,003,128
- -------------------------------------------------------------------------------------------------------------------------
MICHIGAN--3.1%
7,100,000 Michigan Job Development Authority, Limited Obligation Revenue
Bond (Frankenmuth Bavarian Inn Motor Lodge Project), Series A,
Variable Rate Demand Bonds, 4.000%, 9/01/15+ A-1 7,100,000
1,000,000 State of Michigan, Full Faith and Credit General Obligation Notes,
4.000%, 9/30/96 MIG-1 1,000,307
1,370,000 The Economic Development Corporation of the City of Warren, MaComb
County, Michigan, Floating Rate Limited Obligation Revenue Bonds
(The Prince Company, Inc., Michigan Division Project), Series A,
Variable Rate Demand Bonds, 3.900%, 11/01/99+ P-1 1,370,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MINNESOTA--2.9%
$ 6,330,000 City of Bloomington, Minnesota, Floating Rate Demand, Commercial
Revenue Bonds (James Avenue Associates Project), Series 1985,
Variable Rate Demand Bonds, 3.550%, 12/01/15+ A-1+ $ 6,330,000
2,500,000 Housing and Redevelopment Authority of the City of Saint Paul, Variable
Rate Demand Purchase, District Heating Revenue Bonds,
1982 Series A, Variable Rate Demand Bonds, 3.800%, 12/01/12+ A-1 2,500,000
- -------------------------------------------------------------------------------------------------------------------------
MISSOURI--3.0%
State Environmental Improvement and Energy Resources Authority,
Unit Priced Demand Adjustable Pollution Control Revenue Bonds,
Series 1985A (Union Electric Company), Commercial Paper:
5,600,000 3.625%, 10/17/96 VMIG-1 5,600,000
3,600,000 3.500%, 11/15/96 VMIG-1 3,600,000
- -------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE--2.3%
7,000,000 New Hampshire Higher Educational and Health Facilities Authority,
Revenue Bonds, Hunt Community Issue, Series 1996, Variable Rate
Demand Bonds, 3.650%, 5/01/26+ A-1 7,000,000
- -------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA--3.9%
2,400,000 The Wake County Industrial Facilities and Pollution Control Financing
Authority, Pollution Control Refunding Bonds (Carolina Power and Light
Company Project), Series 1990B, Commercial Paper, 3.850%, 9/27/96 P-1 2,400,000
6,630,000 The Wake County Industrial Facilities and Pollution Control Financing
Authority, Pollution Control Refunding Bonds (Carolina Power and Light
Company Project), Series 1990A, Commercial Paper, 3.700%, 10/16/96 P-1 6,630,000
3,000,000 The Wake County Industrial Facilities and Pollution Control Financing
Authority, Pollution Control Refunding Bonds (Carolina Power and Light
Company Project), Series 1985C, Commercial Paper, 3.600%, 10/01/15 VMIG-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
OHIO--10.5%
3,100,000 Ohio School Districts, 1996 Cash Flow Borrowing Program, Certificates
of Participation, Revenue Anticipation Notes of Certain Ohio School
Districts, Series B, Notes, 4.530%, 6/30/97 MIG-1 3,113,057
8,800,000 Centerville Health Care Variable Rate Demand Health Care Revenue
Bonds (Bethany Lutheran Village Continuing Care Facilities
Expansion Project), Variable Rate Demand Bonds, 3.700%, 5/01/08+ VMIG-1 8,800,000
4,000,000 Port Authority of Cincinnati and Hamilton County, Daily Adjustable
Economic Development Revenue Bonds (Kenwood Office Associates
Project), Series 1985, Variable Rate Demand Bonds, 3.950%, 9/01/25+ A-1 4,000,000
3,795,000 County of Franklin, Floating Rate Demand, Hospital Financing Revenue
Bonds, Series 1993 (Traditions at Mill Run Project), Variable Rate
Demand Bonds, 3.650%, 11/01/14+ N/R 3,795,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OHIO (CONTINUED)
$ 2,000,000 Greater Cleveland Regional Transit Authority, General Obligation
(Limited Tax), Capital Improvement Bond Anticipation Notes,
Series 1996, Note, 3.900%, 10/17/96 MIG-1 $ 2,001,109
1,880,000 County of Hamilton, Adjustable Rate Demand, Healthcare Revenue
Bonds, Series 1995 (Community Limited Care Dialysis Center Project),
Variable Rate Demand Bonds, 3.550%, 9/01/05+ N/R 1,880,000
8,300,000 County of Montgomery, Ohio, Variable Rate Hospital Facilities Revenue
Bonds (Miami Valley Hospital), 1985 Series C, Commercial Paper,
3.300%, 9/24/96 VMIG-1 8,300,000
- -------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA--1.1%
3,250,000 The Pennsylvania State University Notes, Series of 1996, Note,
4.250%, 4/04/97 MIG-1 3,263,840
- -------------------------------------------------------------------------------------------------------------------------
TENNESSEE--4.4%
6,800,000 The Public Building Authority of the City of Clarksville, Adjustable Rate
Pooled Financing, Revenue Bonds, Series 1994 (Tennessee Municipal
Bond Fund), Variable Rate Demand Bonds, 3.550%, 6/01/24+ A-1 6,800,000
3,500,000 The Industrial Development Board of the County of Jackson, Variable
Rate Industrial Development Demand Revenue Bonds (Esselte Project),
Series 1985B, Variable Rate Demand Bonds, 3.850%, 8/01/15+ N/R 3,500,000
3,000,000 The Public Building Authority of the County of Montgomery,
Adjustable Rate Pooled Financing Revenue Bonds, Series 1985
(Tennessee County Loan Pool), Variable Rate Demand Bonds,
3.550%, 3/01/25+ A-1 3,000,000
- -------------------------------------------------------------------------------------------------------------------------
TEXAS--4.4%
7,500,000 Guadalupe-Blanco River Authority, Pollution Control Revenue
Refunding Bonds (Central Power and Light Company Project),
Series 1995, Variable Rate Demand Bonds, 3.850%, 11/01/15+ VMIG-1 7,500,000
6,000,000 North Central Texas Health Facilities Development Corporation,
Hospital Revenue Bonds, Series 1985-B (Methodist Hospitals of
Dallas), Variable Rate Demand Bonds, 3.750%, 10/01/15+ A-1 6,000,000
- -------------------------------------------------------------------------------------------------------------------------
VIRGINIA--2.9%
3,000,000 Industrial Development Authority of Albemarle County, Variable Rate
Health Services Revenue Bonds (The University of Virginia Health
Services Foundation), Series 1996, Variable Rate Demand Bonds,
3.600%, 2/01/26+ A-1 3,000,000
2,600,000 Industrial Development Authority of the City of Norfolk, Floating Rate,
Industrial Development Revenue Bonds (Norfolk-Virginia Beach-
Portsmouth MSA Limited Partnership Project), Variable Rate
Demand Bonds, 5.363%, 11/01/04+ N/R 2,600,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-FREE RESERVES, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VIRGINIA (CONTINUED)
$ 3,300,000 The Industrial Development Authority of the City of Richmond,
Floating Rate, Industrial Development Revenue Bonds
(Richmond MSA Limited Partnership Project), Variable Rate Demand
Bonds, 5.363%, 11/01/04+ N/R $ 3,300,000
- -------------------------------------------------------------------------------------------------------------------------
WASHINGTON--3.6%
5,100,000 Washington Health Care Facilities Authority Revenue Bonds (Adventist
Health System West/Walla Walla General), Variable Rate Demand
Bonds, 3.800%, 9/01/09+ A-1 5,100,000
2,700,000 Washington State Housing Finance Commission (Emerald Heights
Project), Variable Rate Demand Bonds, 4.250%, 1/01/21+ A-2 2,700,000
3,300,000 Washington State Housing Finance Commission, Nonprofit Revenue
Bonds (Crista Ministries Project), Series 1991A, Variable Rate
Demand Bonds, 3.500%, 7/01/11+ VMIG-1 3,300,000
- -------------------------------------------------------------------------------------------------------------------------
WYOMING--0.2%
600,000 Sweetwater County Pollution Control Revenue Bonds (Pacificorp Project),
Series 1984, Variable Rate Demand Bonds, 3.650%, 12/01/14+ A-1+ 600,000
- -------------------------------------------------------------------------------------------------------------------------
$ 302,442,500 Total Investments -- 99.2% 302,550,385
==============-----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.8% 2,417,733
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 304,968,118
=========================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
14
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 2,500,000 California Health Facilities Authority, Refunding Revenue Bonds
(St. Joseph Health System), Series 1985A, Variable Rate Demand
Bonds, 3.700%, 7/01/13+ VMIG-1 $ 2,500,000
4,900,000 California Health Facilities Authority, (Sutter Health), Series 1990A,
Variable Rate Demand Bonds, 3.750%, 3/01/20+ VMIG-1 4,900,000
7,700,000 California Health Facilities Authority, Variable Rate Hospital Revenue
Bonds, Adjustable Convertible Extendable Securities-ACES (Saint
Francis Memorial Hospital), Series 1993B, Variable Rate Demand
Bonds, 3.300%, 11/01/19+ VMIG-1 7,700,000
9,000,000 California Pollution Control Financing Authority, Pollution Control
Revenue Bonds (Shell Oil Company Project), 1991 Series B,
Variable Rate Demand Bonds, 3.700%, 10/01/11+ VMIG-1 9,000,000
5,400,000 California Pollution Control Financing Authority, Pollution Control
Refunding Revenue Bonds (Pacific Gas and Electric Company),
1996-C, Variable Rate Demand Bonds, 3.650%, 11/01/26+ A-1+ 5,400,000
4,700,000 California Pollution Control Financing Authority, Pollution Control
Refunding Revenue Bonds (Pacific Gas and Electric Company),
1996-F, Variable Rate Demand Bonds, 3.650%, 11/01/26+ A-1+ 4,700,000
3,000,000 California School Cash Reserve Program Authority, 1996 Pool Bonds,
Series A, Note, 4.750%, 7/02/97 MIG-1 3,020,420
3,000,000 State of California 1996-97 Revenue Anticipation Notes,
4.500%, 6/30/97 MIG-1 3,012,651
4,700,000 Tri-Modal Variable Rate Revenue Refunding Certificates of Participatio
(House Ear Institute), 1993 Series A, Variable Rate Demand Bonds,
3.650%, 12/01/18+ A-1+ 4,700,000
1,000,000 California Statewide Community Development Authority, Certificates of
Participation (Sutter Health Obligation Group), Variable Rate
Demand Bonds, 3.750%, 7/01/15+ A-1 1,000,000
3,080,000 Chico Multi-Family Housing (Sycamore Glen Project), Variable Rate
Refunding Bonds, Series 1995, Variable Rate Demand Bonds,
3.770%, 4/07/14+ N/R 3,080,000
4,500,000 Contra Costa Multi-Family Mortgage Revenue Refunding (Delta Square
Project), Series 1990A,Variable Rate Demand Bonds,
3.400%, 8/01/07+ VMIG-1 4,500,000
3,000,000 Fremont Multi-Family Housing (Mission Wells Project), Series 1985E,
Variable Rate Demand Bonds, 3.450%, 9/01/07+ A-1 3,000,000
4,900,000 Grand Terrace Redevelopment Agency, Multi-Family Housing (Mount
Vernon Villas Project), Variable Rate Demand Bonds,
3.500%, 12/01/11+ A-1 4,900,000
3,000,000 Hayward Housing Authority, Multi-Family Mortgage, Revenue
Refunding Bonds, Series 1993A (Huntwood Terrace), Variable Rate
Demand Bonds, 3.750%, 3/01/27+ A-1 3,000,000
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
<CAPTION>
NUVEEN CALIFORNIA TAX-FREE MONEY MARKET FUND--CONTINUED
- -----------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 3,860,000 Hillsborough Certificates of Participation, Water and Sewer System
Project, Series 1995A, Variable Rate Demand Bonds, 3.750%, 6/01/15+ A-1 $ 3,860,000
9,000,000 Kern Community College District, Certificates of Participation, Series
1995, Variable Rate Demand Bonds, 4.200%, 1/01/25+ A-2 9,000,000
8,000,000 Los Angeles County Metropolitan Transportation Authority, Second
Subordinate Sales Tax Revenue, Commercial Paper,
3.600%, 9/19/96 A-1 8,000,000
8,400,000 Monterey County Financing Authority Revenue Bonds (Reclamation
and Distribution Project), Series 1995A, Variable Rate Demand Bonds,
3.500%, 9/01/36+ VMIG-1 8,400,000
7,200,000 Oakland California Certificates of Participation, Capital Improvement
Project, Variable Rate Demand Bonds, 3.750%, 12/01/15+ N/R 7,200,000
7,900,000 Orange County Apartment Development (Monarch Bay Apartments
Project), Variable Rate Demand Bonds, 3.450%, 10/01/07+ A-1 7,900,000
3,800,000 Orange County (Robinson Ranch Apartments Project), Variable Rate
Demand Revenue Bonds, 3.500%, 11/01/08+ VMIG-1 3,800,000
4,350,000 San Diego County Rincon Del Diablo Municipal Water District, Rincon
Public Facilities Corporation, Commercial Paper, 3.950%, 11/01/96 VMIG-1 4,350,000
7,000,000 Sacramento Municipal Utility District, Series I, Commercial Paper,
3.500%, 10/23/96 A-1+ 7,000,000
1,200,000 San Bernardino Multi-Family Housing (Castle Park Apartments),
Variable Rate Demand Bonds, 3.950%, 11/01/05+ VMIG-1 1,200,000
2,500,000 San Bernardino County 1996-97 Tax and Revenue Anticipation Notes,
4.500%, 6/30/97 MIG-1 2,512,445
2,000,000 San Bernardino County (1996 County Center Refinancing Project),
Certificates of Participation, Variable Rate Demand Bonds,
3.300%, 7/01/15+ VMIG-1 2,000,000
3,000,000 San Diego Housing Authority, Multi-Family Housing, Revenue
Refunding Bonds, Series 1993-A (Carmel Del Mar Apartments),
Variable Rate Demand Bonds, 3.500%, 12/01/15+ A-1+ 3,000,000
2,000,000 San Diego County Teeter Obligation, Tax-Exempt, Commercial Paper,
3.600%, 10/10/96 A-1 2,000,000
7,000,000 San Dimas Industrial Development Bonds (Bausch & Lomb
Incorporated), Variable Rate Demand Bonds, 3.800%, 12/01/15+ N/R 7,000,000
8,200,000 City of Santa Ana, Multi-Modal Interchangeable Rate Health Facility
Revenue Bonds (Town and Country Manor Project), Series 1990,
Variable Rate Demand Bonds, 3.650%, 10/01/20+ A-1 8,200,000
9,000,000 Santa Clara County Transit District Refunding Equipment, Trust
Certificates, Variable Rate Demand Bonds, 3.750%, 6/01/15+ VMIG-1 9,000,000
6,000,000 Santa Paula Public Financing Authority, Series 1996, Water System
Acquisition Project, Variable Rate Demand Bonds, 3.850%, 2/01/26+ A- 1 6,000,000
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ---------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 5,000,000 Solano County Tax and Revenue Anticipation Notes, Series 1995-96,
4.500%, 11/01/96 MIG-1 $ 5,005,217
4,000,000 Southeast Resource Recovery Facilities Authority, Lease Revenue
Refunding Bonds, Series 1995A, Variable Rate Demand Bonds,
3.550%, 12/01/18+ A-1 4,000,000
8,800,000 Southern California Public Power Authority, Transmission Project,
Variable Rate Demand Bonds, 3.200%, 7/01/19+ VMIG-1 8,800,000
6,400,000 Torrance Hospital Revenue (Little Company of Mary Hospital--Torrance
Memorial Hospital), Variable Rate Demand Bonds, 3.450%, 2/01/22+ A-2 6,400,000
3,000,000 Turlock Irrigation District (Transmission Projects), 1996 Series A,
Certificates of Participation, Variable Rate Demand Bonds,
3.300%, 1/01/26+ VMIG-1 3,000,000
2,640,000 Vista Multi-Family Housing (Shadowridge Apartments), Variable Rate
Demand Bonds, 3.400%, 5/01/05+ A-1+ 2,640,000
4,500,000 Visalia Public Finance Authority, Certificates of Participation, 1991
Convention Center Expansion Project, Variable Rate Demand Notes,
3.550%, 12/01/16+ VMIG-1 4,500,000
3,000,000 Washington Township Hospital District, 1984 Issue A, Variable Rate
Demand Bonds, 3.450%, 1/01/16+ VMIG-1 3,000,000
- ---------------------------------------------------------------------------------------------------------------------------
$ 202,130,000 Total Investments -- 99.7% 202,180,733
===========================================================================================================================
Other Assets Less Liabilities -- 0.3% 522,290
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $202,703,023
===========================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
17
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,500,000 Boston Water and Sewer Commission, General Revenue Bonds, 1994
Series A (Senior Series), Variable Rate Demand Bonds,
3.100%, 11/01/24+ VMIG-1 $ 1,500,000
Brookline General Obligation Bonds, Unlimited Tax -- Bond:
600,000 4.650%, 2/15/97 Aaa 603,994
1,000,000 3.750%, 6/04/97 Aaa 1,001,651
2,000,000 Framingham General Obligation, Unlimited Tax -- Note,1
4.250%, 3/28/97 N/R 2,006,949
1,160,000 Franklin General Obligation Bonds, Unlimited Tax -- Note,
4.500%, 11/15/96 Aaa 1,161,617
1,000,000 Town of Mashpee, Massachusetts, Bond Anticipation Notes,
3.750%, 2/07/97 N/R 1,000,626
700,000 Massachusetts Bay Transportation Authority, Bond Anticipation Notes,
General Obligation, Unlimited Tax Series B -- Notes, 4.750%, 9/06/96 SP-1 700,115
3,000,000 Massachusetts Bay Transportation Authority, General Transportation,
Series 1984A, Commercial Paper, 3.500%, 10/31/96 VMIG-1 3,000,000
2,000,000 Massachusetts Municipal Wholesale Electric Company, Variable Rate
Power Supply System, Revenue Bonds, 1994 Series, Variable Rate
Demand Bonds, 3.350%, 7/01/19+ A-1+ 2,000,000
1,300,000 The Commonwealth of Massachusetts, Dedicated Income Tax Bonds,
Fiscal Recovery Loan, Act of 1990, Series B, Variable Rate Demand
Bonds, 3.650%, 12/01/97+ VMIG-1 1,300,000
2,800,000 The Commonwealth of Massachusetts, Dedicated Income Tax Bonds,
Fiscal Recovery Loan, Act of 1990, Series E, Variable Rate Demand
Bonds, 3.650%, 12/01/97+ VMIG-1 2,800,000
3,000,000 Massachusetts Health and Educational Facilities Authority (Fallon
Health Care), Commercial Paper, 3.800%, 10/31/96 A-1+ 3,000,000
2,400,000 Massachusetts Health and Educational Facilities Authority (Capital
Asset Program), Variable Rate Demand Bonds, 3.850%, 1/01/35+ VMIG-1 2,400,000
3,300,000 Massachusetts Health and Educational Facilities Authority (Harvard
University), Variable Rate Demand Bonds, 3.250%, 8/01/17+ VMIG-1 3,300,000
2,500,000 Massachusetts Health and Educational Facilities Authority (Bringham
and Women's Hospital), Variable Rate Demand Bonds,
3.450%, 7/01/17+ VMIG-1 2,500,000
400,000 Massachusetts Health and Educational Facilities Authority (M.I.T.
Project), Variable Rate Demand Bonds, 3.300%, 7/01/21+ VMIG-1 400,000
3,000,000 Massachusetts Housing Finance Agency, Multifamily Refunding
Revenue Bonds, 1995 Series A (Harbor Point), Variable Rate
Demand Bonds, 3.350%, 12/01/25+ VMIG-1 3,000,000
680,000 Massachusetts Housing Finance Agency, Variable Rate Industrial
Development Revenue Bonds, 1988 Series B, Variable Rate
Demand Bonds, 3.200%, 7/01/08+ VMIG-1 680,000
1,145,000 Massachusetts Industrial Finance Agency, Adjustable Rate Industrial
Revenue Bonds (Jencoat/Levy Realty Trust), Variable Rate
Demand Bonds, 4.293%, 10/06/99+ N/R 1,145,000
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000,000 Massachusetts Industrial Finance Agency, (Nova Realty Trust 1994
Refunding), Variable Rate Demand Bonds, 3.350%, 12/01/02+ P-1 $ 1,000,000
2,600,000 Massachusetts Industrial Finance Agency, Manhasset Bay Associates,
1985 Cambridge Issue, Variable Rate Demand Bonds,
3.300%, 10/01/10+ Aa2 2,600,000
3,100,000 Massachusetts Industrial Finance Agency (Holyoke Water Power
Company Project), Variable Rate Demand Bonds, 3.100%, 5/01/22+ VMIG-1 3,100,000
2,155,000 Massachusetts Health and Educational Facilities Authority (Community
Health Center Capital Fund), Variable Rate Demand Bonds,
3.350%, 3/01/15+ A-2 2,155,000
1,000,000 Massachusetts Health and Educational Facilities Authority, Amherst
College Issue, Series F, Variable Rate Demand Bonds, Variable Rate
Demand Bonds, 3.350%, 11/01/26+ VMIG-1 1,000,000
3,000,000 Massachusetts Port Authority, Multimodal Revenue Refunding Bonds,
Series 1995A, Variable Rate Demand Bonds, 3.750%, 7/01/15+ VMIG-1 3,000,000
985,000 Massachusetts Industrial Finance Agency, Chestnut House Apartments
(FHA Insurance), Variable Rate Demand Bonds, 3.400%, 12/01/06+ A-1+ 985,000
1,000,000 Massachusetts Industrial Finance Agency, Resource Recovery (Ogden
Haverhill), Variable Rate Demand Bonds, 3.400%, 12/01/06+ VMIG-1 1,000,000
1,900,000 Massachusetts Industrial Finance Agency, (WGBH Educational
Foundation Project), Adjustable Rate Revenue Bonds,
3.300%, 10/01/09+ VMIG-1 1,900,000
1,500,000 Massachusetts Industrial Finance Agency, (The Williston Northampton
School), Variable Rate Demand Bonds, 3.200%, 4/01/24+ N/R 1,500,000
1,400,000 Massachusetts Industrial Finance Agency (Showa Women's Institute
Boston, Inc., 1994 Project), Variable Rate Demand Bonds,
3.800%, 3/15/04+ VMIG-1 1,400,000
1,000,000 Massachusetts Industrial Finance Agency (Emerson College Issue),
Series 1995, Variable Rate Demand Bonds, 3.600%, 1/01/15+ N/R 1,000,000
2,500,000 Massachusetts Industrial Finance Agency, Edgewood Retirement
Community Project, Series 1995-C, Variable Rate Demand Bonds,
3.450%, 11/15/25 VMIG-1 2,500,000
1,000,000 Massachusetts Industrial Finance Agency (Lower Mills Associates LP),
Series 1995, Variable Rate Demand Bonds, 3.600%, 12/01/20+ N/R 1,000,000
2,000,000 Massachusetts Industrial Finance Agency, Variable Rate Demand
Revenue Bond (Newbury College), 1996 Series, Variable Rate
Demand Bonds, 3.600%, 6/01/21+ N/R 2,000,000
3,000,000 Massachusetts Water Resources Authority, Series 1994, Commercial
Paper, 3.550%, 10/31/96 A-1+ 3,000,000
1,950,000 Mendon Upton Regional School District Bond Anticipation Notes,
General Obligation Unlimited Tax - Note, 3.430%, 2/28/97 N/R 1,951,202
1,600,000 Merrimac Valley Regional Transit Authority, General Obligation,
Unlimited Tax Revenue, Anticipation Notes, 3.800%, 9/27/96 N/R 1,600,412
900,000 New Bedford Industrial Development Revenue Refunding (Cliftex
Corporation), Series 1989, Variable Rate Demand Bonds,
4.293%, 10/01/97+ N/R 900,000
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MASSACHUSETTS TAX-FREE MONEY MARKET FUND--CONTINUED
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,000,000 Peabody Bond Anticipation Notes, General Obligation Unlimited Tax
- Note, 4.150%, 8/15/97 N/R $ 1,002,991
800,000 Shrewbury General Obligation Bonds, Series 1996 - Note,
3.500%, 2/01/97 Aaa 800,812
378,000 West Tisbury General Obligation Bonds, Unlimited Tax - Note,
4.900%, 1/01/97 Aaa 379,230
610,000 Westfield General Obligation Bonds, Series 1995 - Note,
5.800%, 11/15/96 Aaa 612,522
- --------------------------------------------------------------------------------------------------------------------------
$ 69,863,000 Total Investments -- 98.5% 69,887,230
===============-----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.5% 1,083,828
- --------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 70,971,058
==========================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
20
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$1,000,000 Albany County Bond Anticipation Renewal Notes,
Note, 3.500%, 2/19/97 N/R $1,000,428
1,223,387 Babylon Bond Anticipation Notes, 1995, Series A,
Note, 3.850%, 10/30/96 N/R 1,224,197
1,400,000 Chautauqua County General Obligation Tax Anticipation Notes for
1996 Taxes, Notes, 4.000%, 12/20/96 N/R 1,402,871
1,000,000 Duchess County Industrial Development Agency, Industrial
Development Revenue Bonds (Toys "R" Us-NYTEX Inc. Facility),
Series 1984, Variable Rate Demand Bonds, 3.525%, 11/01/19+ A1 1,000,000
1,000,000 Guilderland Industrial Development Agency Industrial Development
Variable Rate Refunding Bonds, Series 1993A (Northeastern Industrial
Park Project), Variable Rate Demand Bonds, 3.400%, 12/01/08+ P-1 1,000,000
1,000,000 Nassau County Industrial Development Agency, Manhasset
Associates Project, Series 1984, Variable Rate Demand Bonds,
3.500%, 12/01/99+ A-1 1,000,000
800,000 New York City Fiscal 94, Series A-10, Variable Rate Demand Bonds,
4.000%, 8/01/16+ VMIG-1 800,000
400,000 New York City Housing Development Corporation (Parkgate Tower),
Variable Rate Demand Bonds, 3.300%, 2/01/07+ P-1 400,000
300,000 New York City Housing Development Corporation (Columbus Gardens
Project), Variable Rate Demand Bonds, 3.400%, 2/01/07+ A-1 300,000
1,000,000 New York City Industrial Development Agency Refunding Revenue
(LaGuardia Associates Project), Variable Rate Demand Bonds,
3.300%, 12/01/15+ A-2 1,000,000
1,300,000 New York City Trust For Cultural Resources, Revenue Bonds Series 1985
(Carnegie Hall), Variable Rate Demand Bonds, 3.300%, 12/01/15+ VMIG-1 1,300,000
1,000,000 New York City Commercial Paper, Series J-3, 3.600%, 10/31/96 A-1+ 1,000,000
1,000,000 New York State Dormitory Authority, Oxford University Press Revenue
Bonds (Letter of Credit Secured), Series 1993, Variable Rate Demand
Bonds, 3.900%, 7/01/23+ VMIG-1 1,000,000
1,400,000 New York State Dormitory Authority Revenue Bonds, Series 1995
(Beverwyck Inc), Variable Rate Demand Bonds, 3.400%, 7/01/25+ VMIG-1 1,400,000
1,400,000 New York State Energy Research and Development Authority, Pollution
Control Revenue (Central Hudson Gas and Electric Corporation),
Variable Rate Demand Bonds, 3.200%, 11/01/20+ A-1+ 1,400,000
2,400,000 New York State Energy Research and Development Authority, Pollution
Control (Niagara Mohawk Power Corporation), Variable Rate Demand
Bonds, 4.250%, 3/01/27+ N/R 2,400,000
1,100,000 New York State Environmental Facilities Corporation (General Electric
Company), Commercial Paper, 3.450%, 11/21/96 A-1+ 1,100,000
1,400,000 New York State Housing Finance Agency (Normandie Court), Variable
Rate Demand Bonds, 3.350%, 5/15/15+ VMIG-1 1,400,000
900,000 New York State Housing Finance Agency, Demand Revenue Bonds,
Series 1984-A (Mt. Sinai School of Medicine), Variable Rate Demand
Bonds, 3.650%, 11/01/14+ VMIG-1 900,000
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW YORK TAX-FREE MONEY MARKET FUND--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
$ 885,000 New York State Job Development Authority, Series 1984E, Variable
Rate Demand Bonds, 3.700%, 3/01/99+ MIG-1 $ 885,000
1,400,000 New York Local Government Assistance Corporation, Series 1995E,
Variable Rate Demand Bonds, 3.350%, 4/01/25+ VMIG-1 1,400,000
1,300,000 New York State Medical Care Facilities Finance Agency (Lenox Hill
Hospital), Variable Rate Demand Bonds, 3.250%, 11/01/08+ VMIG-1 1,300,000
1,300,000 New York State Medical Care Facilities Finance Agency (Children's
Hospital of Buffalo), Variable Rate Demand Bonds, 3.300%, 11/01/05+ VMIG-1 1,300,000
300,000 New York State Thruway Authority, Variable Rate Demand Bonds,
3.800%, 1/01/24+ VMIG-1 300,000
1,000,000 Puerto Rico Industrial Medical Educational and Environmental
Authority, Ana G. Mendez Educational Foundation, FEAGM Project,
Variable Rate Demand Bonds, 3.550%, 12/01/15+ A-1+ 1,000,000
400,000 Triborough Bridge and Tunnel Authority, Special Obligation, Variable
Rate Demand Bonds, Series 1994 (1994 Resolution),
3.200%, 1/01/24+ MIG-1 400,000
1,300,000 Yonkers Industrial Development Agency, Series 1989, Civic Facility
Revenue Bonds, Variable Rate Demand Bonds, 3.650%, 7/01/19+ VMIG-1 1,300,000
- -------------------------------------------------------------------------------------------------------------------------
$28,908,387 Total Investments -- 99.2% 28,912,496
=============------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.8% 244,733
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $29,157,229
=========================================================================================================================
</TABLE>
* Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in short-term municipal securities,
at amortized cost (note 1) $302,550,385 $202,180,733 $69,887,043 $28,912,496
Cash 833,154 219,039 -- 204,072
Receivables:
Interest 1,448,642 964,477 329,257 169,774
Investments sold 1,202,575 -- 1,000,000 --
Other assets 29,640 15,018 15,606 10,892
------------ ------------ ----------- -----------
Total assets 306,064,396 203,379,267 71,231,906 29,297,234
------------ ------------ ----------- -----------
LIABILITIES
Accrued expenses:
Management fees (note 4) 129,865 69,113 23,899 9,861
Other 207,968 85,202 64,248 56,704
Dividends payable 758,445 521,929 172,701 73,440
------------ ------------ ----------- -----------
Total liabilities 1,096,278 676,244 260,848 140,005
------------ ------------ ----------- -----------
Net assets applicable to shares outstanding (note 3) $304,968,118 $202,703,023 $70,971,058 $29,157,229
============ ============ =========== ===========
Shares outstanding:
Service Plan series -- 66,147,991 38,052,965 388,279
Distribution Plan series -- 68,175,060 28,138,622 28,752,283
Institutional series -- 68,379,972 4,779,471 16,667
------------ ------------ ----------- -----------
Total shares outstanding 304,968,118 202,703,023 70,971,058 29,157,229
============ ============ =========== ===========
Net asset value, offering and redemption price per share
(net assets divided by shares outstanding) $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ =========== ===========
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
23
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended August 31, 1996
(Unaudited)
- -------------------------------------------------------------------------------
RESERVES
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $5,716,145
----------
Expenses:
Management fees (note 4) 793,081
12b-1 expense (note 4) 71,812
Shareholders' servicing agent fees and expenses 228,351
Custodian's fees and expenses 57,974
Directors' fees and expenses (note 4) 3,881
Professional fees 21,748
Shareholders' reports-printing and mailing expenses 58,872
Federal and state registration fees 14,945
Other expenses 13,862
----------
Total expenses before expense reimbursement 1,264,526
Expense reimbursement from investment adviser (note 4) (74,883)
----------
Net expenses 1,189,643
----------
Net investment income 4,526,502
Net gain (loss) from investment transactions --
----------
Net increase in net assets from operations $4,526,502
==========
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
24
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
------------------------------------------------------
CALIFORNIA MONEY MARKET
------------------------------------------------------
Service Distribution Institutional
Plan series Plan series Series Total
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $1,155,595 $1,247,860 $738,339 $3,141,794
---------- ---------- -------- -----------
Expenses:
Management fees (note 4) 133,714 144,570 85,960 364,244
12b-1 expense (note 4) 41,118 32,729 - 73,847
Shareholders' servicing agent fees and expenses 1,453 18,698 84 20,235
Custodian's fees and expenses 12,359 13,371 7,696 33,426
Directors' fees and expenses (note 4) 578 627 350 1,555
Professional fees 2,173 2,345 1,412 5,930
Shareholders' reports--printing and mailing expenses 3,288 4,625 1,623 9,536
Federal and state registration fees 5,150 1,067 41 6,258
Other expenses 3,597 3,878 2,065 9,535
---------- ---------- -------- -----------
Total expenses before expense reimbursement 203,430 221,910 99,226 524,566
Expense reimbursement from investment adviser (note 4) (19,560) (23,115) - (42,675)
---------- ---------- -------- -----------
Net expenses 183,870 198,795 99,226 481,891
---------- ---------- -------- -----------
Net investment income 971,725 1,049,065 639,113 2,659,903
Net gain (loss) from investment transactions - - - -
---------- ---------- -------- -----------
Net increase in net assets from operations $ 971,725 $1,049,065 $639,113 $2,659,903
========== ========== ======== ===========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
25
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
Six months ended August 31, 1996
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS MONEY MARKET
--------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $623,285 $448,592 $74,312 $1,146,189
-------- --------- ------- ----------
Expenses:
Management fees (note 4) 74,326 53,403 8,845 136,574
12b-1 expense (note 4) 26,000 12,816 - 38,816
Shareholders' servicing agent fees and expenses 576 16,363 710 17,649
Custodian's fees and expenses 15,486 11,148 1,840 28,474
Directors' fees and expenses (note 4) 847 611 107 1,565
Professional fees 6,730 4,858 840 12,428
Shareholders' reports--printing and mailing expenses 607 14,917 75 15,599
Federal and state registration fees 2,236 556 430 3,222
Other expenses 1,745 1,265 216 3,226
-------- --------- ------- ----------
Total expenses before expense reimbursement 128,553 115,937 13,063 257,553
Expense reimbursement from investment adviser (note 4) (26,248) (42,610) (895) (69,753)
-------- --------- ------- ----------
Net expenses 102,305 73,327 12,168 187,800
-------- --------- ------- ----------
Net investment income 520,980 375,265 62,144 958,389
Net gain (loss) from investment transactions (283) (221) (43) (547)
-------- --------- ------- ----------
Net increase in net assets from operations $520,697 $375,044 $62,101 $ 957,842
======== ========= ======= ==========
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------
NEW YORK MONEY MARKET
- -------------------------------------------------------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 7,426 $ 504,983 $ 285 $ 512,694
------- --------- ----- ---------
Expenses:
Management fees (note 4) 877 59,466 33 60,376
12b-1 expense (note 4) 58 5,786 - 5,844
Shareholders' servicing agent fees and expenses 850 14,377 12 15,239
Custodian's fees and expenses 346 23,526 13 23,885
Directors' fees and expenses (note 4) 13 876 - 889
Professional fees 146 10,173 6 10,325
Shareholders' reports--printing and mailing expenses 514 20,181 25 20,720
Federal and state registration fees 6 601 - 607
Other expenses 26 1,771 2 1,799
------- --------- ----- ---------
Total expenses before expense reimbursement 2,836 136,757 91 139,684
Expense reimbursement from investment adviser (note 4) (1,630) (54,981) (45) (56,656)
------- --------- ----- ---------
Net expenses 1,206 81,776 46 83,028
------- --------- ----- ---------
Net investment income 6,220 423,207 239 429,666
Net gain (loss) from investment transactions - - - -
------- --------- ----- ---------
Net increase in net assets from operations $ 6,220 $423,207 $239 $429,666
======= ========= ===== =========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
RESERVES
--------------------------------
Six months Year ended
ended 8/31/96 2/29/96
- --------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 4,526,502 $ 10,864,878
Net realized gain (loss) from investment transactions - -
------------- --------------
Net increase in net assets from operations 4,526,502 10,864,878
------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (4,526,502) (10,864,878)
------------- --------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 233,757,246 808,776,352
Net asset value of shares issued to shareholders due
to reinvestment of distributions 4,235,747 10,240,006
------------- --------------
237,992,993 819,016,358
Cost of shares redeemed (272,687,339) (830,960,291)
------------- --------------
Net increase (decrease) in net assets derived from
Common share transactions (34,694,346) (11,943,933)
Net assets at the beginning of period 339,662,464 351,606,397
------------- --------------
Net assets at the end of period $ 304,968,118 $ 339,662,464
============= =============
- --------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA MONEY MARKET
--------------------------------------------------------------------
Six months ended August 31, 1996
--------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 971,725 $ 1,049,065 $ 639,113 $ 2,659,903
Net realized gain (loss) from investment transactions -- -- -- --
------------ ------------ ------------ -------------
Net increase in net assets from operations 971,725 1,049,065 639,113 2,659,903
------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (971,725) (1,049,065) (639,113) (2,659,903)
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 55,019,683 42,713,449 93,721,713 191,454,845
Net asset value of shares issued to shareholders due to
reinvestment of distributions 903,001 814,687 10,643 1,728,331
------------ ------------ ------------ -------------
55,922,684 43,528,136 93,732,356 193,183,176
Cost of shares redeemed (60,496,626) (48,373,169) (59,744,589) (168,614,384)
------------ ------------ ------------ -------------
Net increase (decrease) in net assets derived from
Common share transactions (4,573,942) (4,845,033) 33,987,767 24,568,792
Net assets at the beginning of period 70,721,933 73,020,093 34,392,205 178,134,231
------------ ------------ ------------ -------------
Net assets at the end of period $ 66,147,991 $ 68,175,060 $ 68,379,972 $ 202,703,023
============ ============ ============ =============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
29
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- ----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA MONEY MARKET
--------------------------------------------------------------------
Year ended February 29, 1996
--------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,933,448 $ 2,282,992 $ 1,255,971 $ 5,472,411
Net realized gain (loss) from investment transactions -- -- -- --
------------- ------------- ------------- -------------
Net increase in net assets from operations 1,933,448 2,282,992 1,255,971 5,472,411
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (1,933,448) (2,282,992) (1,255,971) (5,472,411)
------------- ------------- ------------- -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 137,297,132 130,907,267 212,399,556 480,603,955
Net asset value of shares issued to shareholders due to
reinvestment of distributions 1,633,671 1,762,239 3,093 3,399,003
------------- ------------- ------------- -------------
138,930,803 132,669,506 212,402,649 484,002,958
Cost of shares redeemed (109,980,788) (126,806,592) (228,782,833) (465,570,213)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets derived from
Common share transactions 28,950,015 5,862,914 (16,380,184) 18,432,745
Net assets at the beginning of year 41,771,918 67,157,179 50,772,389 159,701,486
------------- ------------- ------------- -------------
Net assets at the end of year $ 70,721,933 $ 73,020,093 $ 34,392,205 $ 178,134,231
============= ============= ============= =============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
30
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
----------------------------------------------------------
MASSACHUSETTS MONEY MARKET
----------------------------------------------------------
Six months ended August 31, 1996
----------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 520,980 $ 375,265 $ 62,144 $ 958,389
Net realized gain (loss) from investment transactions (283) (221) (43) (547)
------------ ------------ ----------- ------------
Net increase in net assets from operations 520,697 375,044 62,101 957,842
------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (520,697) (375,044) (62,101) (957,842)
------------ ------------ ----------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 29,398,696 12,858,660 8,266,457 50,523,813
Net asset value of shares issued to shareholders due to
reinvestment of distributions 519,327 355,970 17,348 892,645
------------ ------------ ----------- ------------
29,918,023 13,214,630 8,283,805 51,416,458
Cost of shares redeemed (30,115,637) (11,355,250) (7,054,513) (48,525,400)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets derived from
Common share transactions (197,614) 1,859,380 1,229,292 2,891,058
Net assets at the beginning of period 38,250,579 26,279,242 3,550,179 68,080,000
------------ ------------ ----------- ------------
Net assets at the end of period $ 38,052,965 $ 28,138,622 $ 4,779,471 $ 70,971,058
============ ============ =========== ============
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS MONEY MARKET
---------------------------------------------------------------------
Year ended February 29, 1996
---------------------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 970,086 $ 770,798 $ 106,132 $ 1,847,016
Net realized gain (loss) from investment transactions -- -- -- --
------------ ------------ ------------ -------------
Net increase in net assets from operations 970,086 770,798 106,132 1,847,016
------------ ------------ ------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (970,086) (770,798) (106,132) (1,847,016)
------------ ------------ ------------ -------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 77,847,781 24,524,563 16,474,350 118,846,694
Net asset value of shares issued to shareholders due to
reinvestment of distributions 960,638 758,160 46,176 1,764,974
------------ ------------ ------------ -------------
78,808,419 25,282,723 16,520,526 120,611,668
Cost of shares redeemed (68,289,392) (23,240,661) (14,005,907) (105,535,960)
------------ ------------ ------------ -------------
Net increase (decrease) in net assets derived from
Common share transactions 10,519,027 2,042,062 2,514,619 15,075,708
Net assets at the beginning of year 27,731,552 24,237,180 1,035,560 53,004,292
------------ ------------ ------------ -------------
Net assets at the end of year $ 38,250,579 $ 26,279,242 $ 3,550,179 $ 68,080,000
============ ============ ============ =============
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
NEW YORK MONEY MARKET
---------------------------------------------------------
Six months ended August 31, 1996
---------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 6,220 $ 423,207 $ 239 $ 429,666
Net realized gain (loss) from investment transactions - - - -
--------- ------------ ------- ------------
Net increase in net assets from operations 6,220 423,207 239 429,666
--------- ------------ ------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (6,220) (423,207) (239) (429,666)
--------- ------------ ------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares (74,517) 7,913,378 - 7,838,861
Net asset value of shares issued to shareholders due to
reinvestment of distributions 5,689 403,214 - 408,903
--------- ------------ ------- ------------
(68,828) 8,316,592 - 8,247,764
Cost of shares redeemed (97,352) (11,195,757) - (11,293,109)
--------- ------------ ------- ------------
Net increase (decrease) in net assets derived from
Common share transactions (166,180) (2,879,165) - (3,045,345)
Net assets at the beginning of period 554,459 31,631,448 16,667 32,202,574
--------- ------------ ------- ------------
Net assets at the end of period $ 388,279 $ 28,752,283 $16,667 $ 29,157,229
========= ============ ======= ============
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
NEW YORK MONEY MARKET
--------------------------------------------------------
Year ended February 29, 1996
--------------------------------------------------------
Service Distribution Institutional
Plan series Plan series series Total
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 16,065 $ 968,690 $ 533 $ 985,288
Net realized gain (loss) from investment transactions - - - -
--------- ------------ ----------- ------------
Net increase in net assets from operations 16,065 968,690 533 985,288
--------- ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (16,065) (968,690) (533) (985,288)
--------- ------------ ----------- ------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 364,272 36,230,907 - 36,595,179
Net asset value of shares issued to shareholders due to
reinvestment of distributions 13,053 942,307 - 955,360
--------- ------------ ----------- ------------
377,325 37,173,214 - 37,550,539
Cost of shares redeemed (462,939) (35,339,438) - (35,802,377)
--------- ------------ ----------- ------------
Net increase (decrease) in net assets derived from
Common share transactions (85,614) 1,833,776 - 1,748,162
Net assets at the beginning of year 640,073 29,797,672 16,667 30,454,412
--------- ------------ ----------- ------------
Net assets at the end of year $ 554,459 $ 31,631,448 $ 16,667 $ 32,202,574
========= ============ =========== ============
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At August 31, 1996, the money market Funds (the "Funds") covered in this report
are Nuveen Tax-Free Reserves, Inc., a nationally diversified Fund, Nuveen
California Tax-Free Fund, Inc. (comprising the Nuveen California Tax-Free Money
Market Fund) and Nuveen Tax-Free Money Market Fund, Inc. (comprising the Nuveen
Massachusetts and New York Tax-Free Money Market Funds).
The Funds are registered under the Investment Company Act of 1940 as open-end,
diversified management investment companies. Each Fund invests in tax-exempt
money market instruments. Shares of the state Funds are issued in three series:
(1) the "Service Plan" series intended for purchase by or through banks and
other organizations who have agreed to perform certain services for their
customers who are shareholders of this series of the Fund, (2) the "Distribution
Plan" series intended for purchase by or through securities dealers who have
agreed to perform distribution and administrative services for their customers
who are shareholders of this series of the Fund and (3) the "Institutional"
series intended for purchase by trustees, bank trust departments and investment
bankers or advisers who do not perform additional distribution and
administrative services.
Each Fund issues its own shares, at net asset value which the Fund will seek to
maintain at $1.00 per share without a sales charge.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Investments in each of the Funds consist of short-term municipal securities
maturing within one year from the date of acquisition. Securities with a
maturity of more than one year in all cases have variable rate and demand
features qualifying them as short-term securities and are traded and valued at
amortized cost. On a dollar-weighted basis, the average maturity of all such
securities must be 90 days or less (at August 31, 1996, the dollar-weighted
average life was 44 days for Reserves, 24 days for California Money Market, 40
days for Massachusetts Money Market and 22 days for New York Money Market).
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may be settled
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
a month or more after the transaction date. The securities so purchased are
subject to market fluctuation during this period. The Funds have instructed the
custodian to segregate assets in a separate account with a current value at
least equal to the amount of their purchase commitments. At August 31, 1996,
there were no such purchase commitments in any of the Funds.
Interest Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
Dividends and Distributions to Shareholders
Net investment income, adjusted for realized short-term gains and losses on
investment transactions, is declared as a dividend to shareholders of record as
of the close of each business day and payment is made or reinvestment is
credited to shareholder accounts after month-end.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes and intends to
comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies by distributing to shareholders all of its net
investment income, including any net realized capital gains from investment
transactions. Therefore, no federal income tax provision is required.
Furthermore, each Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular federal and designated
state income taxes for the California, Massachusetts and New York Money Market
Funds, to retain such tax-exempt status when distributed to the shareholders of
the Funds.
Insurance Commitments
The Funds have obtained commitments (each a "Commitment") from Municipal Bond
Investors Assurance Corporation ("MBIA") with respect to certain designated
bonds held by the Funds for which credit support is furnished by banks
("Approved Banks") approved by MBIA under its established credit approval
standards. Under the terms of a Commitment, if a Fund were to determine that
certain adverse circumstances relating to the financial condition of the
Approved Bank had occurred, the Fund could cause MBIA to issue a "while-in-fund"
insurance policy covering the underlying bonds; after time and subject to
further terms and conditions, the Fund could obtain from MBIA an "insured-to-
maturity" insurance policy as to the covered bonds. Each type of insurance
policy would insure payment of interest on the bonds and payment of principal at
maturity. Although such insurance would not guarantee the market value of the
bonds or the value of the Funds' shares, the Funds believe that their ability to
obtain insurance for such bonds under such adverse circumstances will enable the
Funds to hold or dispose of such bonds at a price at or near their par value.
36
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including futures, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the future,
they did not make any such investments during the six months ended August 31,
1996.
2. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment securities during the
six months ended August 31, 1996, were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $467,276,586 $ 187,925,130 $ 93,368,373 $ 21,100,880
Sales and Maturities 500,135,000 163,115,000 93,581,679 24,100,000
============ ============== ============== ==============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
At August 31, 1996, the cost of investments owned for federal income tax
purposes was the same as the cost for financial reporting purposes for all
Funds.
3. COMPOSITION OF NET ASSETS
At August 31, 1996, the Funds had common stock authorized of $.01 par value per
share. The composition of net assets as well as the number of authorized shares
were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
RESERVES CA MA NY
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in:
Service Plan series $ - $ 66,147,991 $ 38,052,965 $ 388,279
Distribution Plan series - 68,175,060 28,138,622 28,752,283
Institutional series - 68,379,972 4,779,471 16,667
-------------- -------------- -------------- --------------
Net assets $ 304,968,118 $ 202,703,023 $ 70,971,058 $ 29,157,229
============== ============== ============== ==============
Authorized shares 2,000,000,000 2,350,000,000 2,500,000,000 2,500,000,000
============== ============== ============== ==============
- ----------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
4. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen Advisory Corp.
(the "Adviser"), a wholly owned subsidiary of The John Nuveen Company, each Fund
pays to the Adviser an annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset value of each Fund:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Management fees
- -------------------------------------------------------------------------
Average daily net asset value RESERVES CA, MA, NY
- -------------------------------------------------------------------------
<S> <C> <C>
For the first $500,000,000 .5 of 1% .4 of 1%
For the next $500,000,000 .475 of 1 .375 of 1
For net assets over $1,000,000,000 .45 of 1 .35 of 1
- -------------------------------------------------------------------------
</TABLE>
Also, pursuant to a distribution agreement with the Funds, Nuveen is the
distributor or principal underwriter of Fund shares and pays sales and promotion
expenses in connection with the offering of Fund shares. The Funds have adopted
a Distribution Plan pursuant to Rule 12b-1 of the Investment Company Act of 1940
and a Service Plan pursuant to which the Distribution Plan series and the
Service Plan series and Nuveen pay, in equal amounts, fees to securities dealers
and service organizations for services rendered in the distribution of shares of
the Funds or the servicing of shareholder accounts. For Reserves, total service
payments to such securities dealers and organizations on an annualized basis
range from .1 of 1% to .2 of 1% of the average daily net asset value of serviced
accounts up to $10 million and .3 of 1% for such assets over $10 million. For
the California, Massachusetts and New York Money Market Funds, total service
payments to such securities dealers and organizations are .25 of 1% per year of
the average daily net asset value of serviced accounts.
The management fee referred to above is reduced by, or the Adviser assumes
certain expenses of each Fund, in an amount necessary to prevent the total
expenses of each Fund (including the management fee and each Fund's share of
service payments under the Distribution and Service Plans, but excluding
interest, taxes, fees incurred in acquiring and disposing of portfolio
securities and, to the extent permitted, extraordinary expenses) in any fiscal
year from exceeding .75 of 1% of the average daily net asset value of Reserves,
and .55 of 1% of the average daily net asset value of the California,
Massachusetts and New York Money Market Funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to their directors who are affiliated with the Adviser or
to their officers, all of
38
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
whom receive remuneration for their services to the Funds from the Adviser.
5. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general obligation and
revenue bonds. At August 31, 1996, the revenue sources by municipal purpose for
these investments, expressed as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
- -------------------------------------------------------------
RESERVES CA MA NY
- -------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Pollution Control Facilities 35% 13% 11% 35%
Health Care Facilities 27 19 18 14
Housing Facilities 6 18 7 7
Educational Facilities 2 - 13 7
Water/Sewer Facilities 2 11 7 -
Lease Rental Facilities - 11 - -
Electric Utilities - 9 10 -
Transportation 1 - 4 1
Other 13 11 1 14
General Obligation Bonds 14 8 29 22
--- --- --- ---
100% 100% 100% 100%
=== === === ===
- -------------------------------------------------------------
</TABLE>
In addition, certain temporary investments in short-term municipal securities
have credit enhancements (letters of credit, guarantees or insurance) issued by
third party domestic or foreign banks or other institutions (93% for Reserves,
95% for California, 86% for Massachusetts and 84% for New York).
For additional information regarding each investment security, refer to the
Portfolio of Investments.
39
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
----------------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- ------------------------------------------------------------------------------------------------------------------------
RESERVES
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96 $ 1.000 $ .014+ $ - $ (.014) $ -
Year ended 2/29,
1996 1.000 .032+ - (.032) -
Year ended 2/28,
1995 1.000 .025+ - (.025) -
1994 1.000 .018+ - (.018) -
1993 1.000 .023 - (.023) -
5 months ended
2/29/92 1.000 .015 - (.015) -
Year ended 9/30,
1991 1.000 .046 - (.046) -
1990 1.000 .055 - (.055) -
1989 1.000 .057 - (.057) -
Year ended 2/29,
1988 1.000 .045 - (.045) -
Year ended 2/28,
1987 1.000 .039 - (.039) -
1986 1.000 .045++ - (.045) -
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
40
<PAGE>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-----------------------------------------------------------------------
Ratio of Ratio of net Ratio of
expenses investment income expenses
Net assets to average to average to average
Net asset value Total return on end of period net assets before net assets before net assets after
end of period net asset value (in thousands) reimbursement reimbursement reimbursement+
- ---------------------------------------------------------------------------------------------------------------------------------
RESERVES
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Six months ended $ 1.000 1.44% $ 304,968 .80%* 2.80%* .75%*
8/31/96
Year ended 2/29, 1.000 3.23 339,662 .79 3.18 .75
1996
Year ended 2/28, 1.000 2.46 351,606 .78 2.40 .75
1995 1.000 1.84 404,201 .80 1.78 .75
1994 1.000 2.34 450,746 .74 2.35 .74
1993
5 months ended 1.000 1.45 477,127 .75* 3.48* .75*
2/29/92
Year ended 9/30, 1.000 4.57 451,808 .72 4.56 .72
1991 1.000 5.45 430,206 .73 5.45 .73
1990 1.000 5.70 390,258 .72 5.69 .72
1989
Year ended 2/29, 1.000 4.52 409,653 .73 4.52 .73
1988
Year ended 2/29, 1.000 3.88 361,044 .73 3.85 .73
1987 1.000 4.46 272,677 .80 4.34 .75
1986
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------
Ratios/Supplemental data
- ------------------------------------
Ratio of net
investment income
to average
net assets after
reimbursement+
- ----------------------------------
RESERVES
- ----------------------------------
<S> <C>
Six months ended
8/31/96 2.85%*
Year ended 2/29,
1996 3.22
Year ended 2/28,
1995 2.43
1994 1.83
1993 2.35
5 months ended
2/29/92 3.48*
Year ended 9/30,
1991 4.56
1990 5.45
1989 5.69
Year ended 2/29,
1988 4.52
Year ended 2/29,
1987 3.85
1986 4.39
- ------------------------------------
</TABLE>
41
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- --------------------------------------------------------------------------------------------------------------------
CA**
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 $.015+ $-- $(.015) $--
Distribution Plan series 1.000 .015+ -- (.015) --
Institutional series 1.000 .015 -- (.015) --
Year ended
2/29/96
Service Plan series 1.000 .033+ -- (.033) --
Distribution Plan series 1.000 .033+ -- (.033) --
Institutional series 1.000 .034 -- (.034) --
Year ended
2/28/95
Service Plan series 1.000 .026+ -- (.026) --
Distribution Plan series 1.000 .026+ -- (.026) --
Institutional series 1.000 .027 -- (.027) --
Year ended
2/28/94
Service Plan series 1.000 .019 -- (.019) --
Distribution Plan series 1.000 .019+ -- (.019) --
Institutional series 1.000 .021 -- (.021) --
Year ended
2/28/93
Service Plan series 1.000 .023+ -- (.023) --
Distribution Plan series 1.000 .023+ -- (.023) --
Institutional series 1.000 .024 -- (.024) --
Eight months ended
2/29/92
Service Plan series 1.000 .024+ -- (.024) --
Distribution Plan series 1.000 .024+ -- (.024) --
Institutional series 1.000 .025 -- (.025) --
Year ended
6/30/91
Service Plan series 1.000 .047+ -- (.047) --
Distribution Plan series 1.000 .047+ -- (.047) --
Institutional series 1.000 .048 -- (.048) --
Year ended:
6/30/90++ 1.000 .054+ -- (.054) --
6/30/89++ 1.000 .056+ -- (.056) --
6/30/88++ 1.000 .043+ -- (.043) --
6/30/87++ 1.000 .039+ -- (.039) --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
42
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------
Ratio of Ratio of net
expenses investment income
Net assets to average to average
Net asset value Total return on end of period net assets before net assets before
end of period net asset value (in thousands) reimbursement reimbursement+
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 1.47% $ 66,148 .61%* 2.85%*
Distribution Plan series 1.000 1.47 68,175 .61* 2.84*
Institutional series 1.000 1.51 68,380 .46* 2.98*
Year ended
2/29/96
Service Plan series 1.000 3.32 70,722 .56 3.28
Distribution Plan series 1.000 3.31 73,020 .62 3.23
Institutional series 1.000 3.40 34,392 .46 3.39
Year ended
2/28/95
Service Plan series 1.000 2.59 41,772 .59 2.15
Distribution Plan series 1.000 2.60 67,157 .64 2.47
Institutional series 1.000 2.69 50,772 .47 2.74
Year ended
2/28/94
Service Plan series 1.000 1.94 415,238 .53 1.94
Distribution Plan series 1.000 1.92 72,380 .73 1.74
Institutional series 1.000 2.07 32,299 .41 2.06
Year ended
2/28/93
Service Plan series 1.000 2.28 469,812 .57 2.24
Distribution Plan series 1.000 2.29 80,652 .62 2.19
Institutional series 1.000 2.36 24,156 .47 2.33
Eight months ended
2/29/92
Service Plan series 1.000 2.39 478,886 .56* 3.53*
Distribution Plan series 1.000 2.39 91,670 .61* 3.48*
Institutional series 1.000 2.45 18,334 .45* 3.64*
Year ended
6/30/91
Service Plan series 1.000 4.70 431,590 .57 4.65
Distribution Plan series 1.000 4.70 90,031 .61 4.61
Institutional series 1.000 4.80 22,342 .45 4.77
Year ended:
6/30/90++ 1.000 5.37 452,465 .59 5.34
6/30/89++ 1.000 5.62 362,927 .57 5.68
6/30/88++ 1.000 4.28 207,897 .59 4.27
6/30/87++ 1.000 3.90 284,956 .63 3.85
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
- --------------------------------------------------------------
Ratio of Ratio of net
expenses expenses
to average to average
net assets after net assets after
reimbursement+ reimbursement+
- --------------------------------------------------------------
- --------------------------------------------------------------
<S> <C> <C>
Six months ended
8/31/96
Service Plan series .55%* 2.91%*
Distribution Plan series .55* 2.90*
Institutional series .46* 2.98*
Year ended
2/29/96
Service Plan series .54 3.36
Distribution Plan serie .55 3.30
Institutional series .46 3.39
Year ended
2/28/95
Service Plan series .55 2.19
Distribution Plan series .55 2.56
Institutional series .47 2.74
Year ended
2/28/94
Service Plan series .53 1.94
Distribution Plan series .55 1.92
Institutional series .41 2.06
Year ended
2/28/93
Service Plan series .55 2.26+
Distribution Plan series .55 2.26+
Institutional series .47 2.33
Eight months ended
2/29/92
Service Plan series .55* 3.54*
Distribution Plan series .55* 3.54*
Institutional series .45* 3.64*
Year ended
6/30/91
Service Plan series .55 4.67
Distribution Plan series .55 4.67
Institutional series .45 4.77
Year ended:
6/30/90++ .55 5.38
6/30/89++ .55 5.70
6/30/88++ .55 4.31
6/30/87++ .50 3.92
- --------------------------------------------------------------
</TABLE>
43
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- --------------------------------------------------------------------------------------------------------------------
MA***
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 $.014+ $-- $(.014) $--
Distribution Plan series 1.000 .014+ -- (.014) --
Institutional series 1.000 .014+ -- (.014) --
Year ended
2/29/96
Service Plan series 1.000 .032+ -- (.032) --
Distribution Plan series 1.000 .032+ -- (.032) --
Institutional series 1.000 .032+ -- (.032) --
Year ended
2/28/95
Service Plan series 1.000 .025+ -- (.025) --
Distribution Plan series 1.000 .025+ -- (.025) --
Institutional series 1.000 .026+ -- (.026) --
Year ended
2/28/94
Service Plan series 1.000 .018+ -- (.018) --
Distribution Plan series 1.000 .017+ -- (.017) --
Institutional series 1.000 .018 -- (.018) --
Year ended
2/28/93
Service Plan series 1.000 .023+ -- (.023) --
Distribution Plan series 1.000 .023+ -- (.023) --
Institutional series 1.000 .023+ -- (.023) --
Ten months ended
2/29/92
Service Plan series 1.000 .032+ -- (.032) --
Distribution Plan series 1.000 .032+ -- (.032) --
Institutional series 1.000 .032 -- (.032) --
Year ended
4/30/91
Service Plan series 1.000 .053+ -- (.053) --
Distribution Plan series 1.000 .053+ -- (.053) --
Institutional series 1.000 .053 -- (.053) --
Year ended:
4/30/90++ 1.000 .057+ -- (.057) --
4/30/89++ 1.000 .050+ -- (.050) --
4/30/88++ 1.000 .043+ -- (.043) --
12/10/86 to
4/30/87++ 1.000 .016+ -- (.016) --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 46.
44
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------
Ratio of Ratio of net
expenses investment income
Net assets to average to average
Net asset value Total return on end of period net assets before net assets before
end of period net asset value (in thousands) reimbursement reimbursement
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 1.42% $ 38,053 .69%* 2.66%*
Distribution Plan series 1.000 1.42 28,139 .87* 2.49*
Institutional series 1.000 1.42 4,779 .59* 2.77*
Year ended
2/29/96
Service Plan series 1.000 3.17 38,251 .63 3.06
Distribution Plan series 1.000 3.17 26,279 .84 2.87
Institutional series 1.000 3.18 3,550 .57 3.12
Year ended
2/28/95
Service Plan series 1.000 2.53 27,732 .61 2.49
Distribution Plan series 1.000 2.53 24,237 .82 2.28
Institutional series 1.000 2.61 1,036 .47 2.63
Year ended
2/28/94
Service Plan series 1.000 1.77 38,576 .55 1.88
Distribution Plan series 1.000 1.74 27,773 .76 1.67
Institutional series 1.000 1.80 3,406 .49 1.93
Year ended
2/28/93
Service Plan series 1.000 2.33 40,214 .73 2.16
Distribution Plan series 1.000 2.33 27,993 .82 2.07
Institutional series 1.000 2.34 5,325 .58 2.31
Ten months ended
2/29/92
Service Plan series 1.000 3.22 61,476 .62* 3.73*
Distribution Plan series 1.000 3.22 34,509 .72* 3.63*
Institutional series 1.000 3.24 8,917 .53* 3.82*
Year ended
4/30/91
Service Plan series 1.000 5.30 37,979 .68 5.12
Distribution Plan series 1.000 5.30 33,809 .76 5.04
Institutional series 1.000 5.30 14,973 .54 5.26
Year ended:
4/30/90++ 1.000 5.70 53,631 .74 5.48
4/30/89++ 1.000 5.00 31,319 .76 4.97
4/30/88++ 1.000 4.29 35,614 .75 4.03
12/10/86 to
4/30/87++ 1.000 1.60 12,371 3.02* 1.40
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
- --------------------------------------------------------------
Ratio of Ratio of net
expenses investment income
to average to average
net assets after net assets after
reimbursement+ reimbursement+
- --------------------------------------------------------------
- --------------------------------------------------------------
<S> <C> <C>
Six months ended
8/31/96
Service Plan series .55%* 2.80%*
Distribution Plan series .55* 2.81*
Institutional series .55* 2.81*
Year ended
2/29/96
Service Plan series .55 3.14
Distribution Plan series .55 3.16
Institutional series .54 3.15
Year ended
2/28/95
Service Plan series .55 2.55
Distribution Plan series .55 2.55
Institutional series .47 2.63
Year ended
2/28/94
Service Plan series .52 1.91
Distribution Plan series .55 1.88
Institutional series .49 1.93
Year ended
2/28/93
Service Plan series .55 2.34
Distribution Plan series .55 2.34
Institutional series .55 2.34
Ten months ended
2/29/92
Service Plan series .55* 3.80*
Distribution Plan series .55* 3.80*
Institutional series .53* 3.82*
Year ended
4/30/91
Service Plan series .55 5.25
Distribution Plan series .55 5.25
Institutional series .54 5.26
Year ended:
4/30/90++ .55 5.67
4/30/89++ .55 5.18
4/30/88++ .48 4.30
12/10/86 to
4/30/87++ .06 4.36*
- --------------------------------------------------------------
</TABLE>
45
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- ------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------
Net
realized and Dividends from
Net asset Net unrealized tax-exempt Distributions
value beginning investment gain (loss) from net investment from
of period income investments income capital gains
- ------------------------------------------------------------------------------------------------------------------
NY***
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 $.014+ $ -- $(.014) $ --
Distribution Plan series 1.000 .014+ -- (.014) --
Institutional series 1.000 .014+ -- (.014) --
Year ended
2/29/96
Service Plan series 1.000 .032+ -- (.032) --
Distribution Plan series 1.000 .032+ -- (.032) --
Institutional series 1.000 .032+ -- (.032) --
Year ended
2/28/95
Service Plan series 1.000 .024+ -- (.024) --
Distribution Plan series 1.000 .024+ -- (.024) --
Institutional series 1.000 .023+ -- (.023) --
Year ended
2/28/94
Service Plan series 1.000 .015+ -- (.015) --
Distribution Plan series 1.000 .015+ -- (.015) --
Institutional series 1.000 .015+ -- (.015) --
Year ended
2/28/93
Service Plan series 1.000 .020+ -- (.020) --
Distribution Plan series 1.000 .020+ -- (.020) --
Institutional series 1.000 .020+ -- (.020) --
10 months ended
2/29/92
Service Plan series 1.000 .029+ -- (.029) --
Distribution Plan series 1.000 .029+ -- (.029) --
Institutional series 1.000 .030+ -- (.030) --
Year ended
4/30/91
Service Plan series 1.000 .047+ -- (.047) --
Distribution Plan series 1.000 .047+ -- (.047) --
Institutional series 1.000 .047+ -- (.047) --
Year ended:
4/30/90++ 1.000 .054+ -- (.054) --
4/30/89++ 1.000 .050+ -- (.050) --
4/30/88++ 1.000 .041+ -- (.041) --
12/10/86 to
4/30/87++ 1.000 .015+ -- (.015) --
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Effective for the fiscal year ended June 30, 1991, and thereafter, the Fund
has presented the above per share data by series.
*** Effective for the fiscal year ended April 30, 1991, and thereafter, the
Fund has presented the above per share data by series.
+ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser, if applicable (note 4).
++ Represents combined per share data and ratios for the Service Plan series,
Distribution Plan series and Institutional series.
46
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MONEY MARKET FUNDS SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------
Ratio of Ratio of net
expenses investment income
Net assets to average to average
Net asset value Total return on end of period net assets before net assets before
end of period net asset value (in thousands) reimbursement reimbursement
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96
Service Plan series $1.000 1.44% $ 338 1.30%* 2.10%*
Distribution Plan series 1.000 1.44 28,752 .92* 2.48*
Institutional series 1.000 1.44 17 1.08* 2.31*
Year ended
2/29/96
Service Plan series 1.000 3.20 554 1.92 1.82
Distribution Plan series 1.000 3.20 31,631 .94 2.80
Institutional series 1.000 3.20 17 1.38 2.37
Year ended
2/28/95
Service Plan series 1.000 2.36 640 .95 1.98
Distribution Plan series 1.000 2.37 29,798 .79 2.14
Institutional series 1.000 2.28 17 2.14 .79
Year ended
2/28/94
Service Plan series 1.000 1.51 557 1.49 .69
Distribution Plan series 1.000 1.51 27,886 .78 1.40
Institutional series 1.000 2.51 17 4.60 (2.48)
Year ended
2/28/93
Service Plan series 1.000 2.02 529 1.17 1.42
Distribution Plan series 1.000 2.02 34,827 .78 1.81
Institutional series 1.000 2.02 17 19.33 (16.59)
10 months ended
2/29/92
Service Plan series 1.000 2.94 1,934 .87* 3.19*
Distribution Plan series 1.000 2.94 45,259 .71* 3.35*
Institutional series 1.000 2.94 17 11.89* (7.83)*
Year ended
4/30/91
Service Plan series 1.000 4.73 1,653 .88 4.39
Distribution Plan series 1.000 4.73 41,446 .69 4.58
Institutional series 1.000 4.73 17 .62 4.65
Year ended:
4/30/90++ 1.000 5.36 41,602 .71 5.18
4/30/89++ 1.000 4.95 30,262 .86 4.74
4/30/88++ 1.000 4.10 17,016 1.03 3.54
12/10/86 to
4/30/87++ 1.000 1.50 4,134 4.20 .05*
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------
- --------------------------------------------------------------
Ratio of Ratio of net
expenses investment income
to average to average
net assets after net assets after
reimbursement+ reimbursement+
- --------------------------------------------------------------
- --------------------------------------------------------------
<S> <C> <C>
Six months ended
8/31/96
Service Plan series .55%* 2.85%*
Distribution Plan series .55* 2.85*
Institutional series .55* 2.84*
Year ended
2/29/96
Service Plan series .55 3.19
Distribution Plan series .55 3.19
Institutional series .55 3.20
Year ended
2/28/95
Service Plan series .55 2.38
Distribution Plan series .55 2.38
Institutional series .55 2.38
Year ended
2/28/94
Service Plan series .55 1.63
Distribution Plan series .55 1.63
Institutional series .55 1.63
Year ended
2/28/93
Service Plan series .55 2.04
Distribution Plan series .55 2.04
Institutional series .55 2.19
Eight months ended
2/29/92
Service Plan series .55* 3.51*
Distribution Plan series .55* 3.51*
Institutional series .55* 3.51*
Year ended
4/30/91
Service Plan series .55 4.72
Distribution Plan series .55 4.72
Institutional series .55 4.72
Year ended:
4/30/90++ .55 5.34
4/30/89++ .55 5.05
4/30/88++ .50 4.07
12/10/86 to
6/30/87++ .05* 4.20*
- --------------------------------------------------------------
</TABLE>
47
<PAGE>
Your
investment
partners
Since 1898, John Nuveen & Co.
[PHOTO APPEARS HERE] Incorporated has worked to bring
together the various participants in the
municipal bond industry and build strong
partnerships that benefit all concerned.
Investors, financial advisers, municipal
officials, investment bankers--Nuveen
believes that forging relationships
within these groups based on trust and
value is the key to successful
investing.
As the oldest and largest municipal
bond specialist in the United States,
Nuveen's investment bankers work with
issuers to understand and meet their
needs in structuring and selling their
bond issues.
For nearly 100 years, Nuveen also works closely with
Nuveen has earned its financial advisers around the country,
reputation as a tax-free income including brokerage firms, banks,
specialist by focusing on insurance companies, and independent
municipal bonds financial planners, to bring the
benefits of tax-free investing to you.
These advisers are experts at
identifying your needs and recommending
the best solutions for your situation.
Together we make a powerful team,
helping you create a successful
investment plan that meets your needs
today and in the future.
[NUVEEN LOGO]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
MSA-3-8.96
[RECYCLED LOGO]
