<PAGE>
NUVEEN
Money Market
Funds
February 28, 1997
Annual Report
Dependable, tax-free income
to help you keep more of
what you earn.
Reserves
California
Massachusetts [PHOTO OF COUPLE APPEARS HERE]
New York
<PAGE>
Contents
2 Dear Shareholder
4 Answering Your Questions
6 Reserves Overview
7 California Overview
8 Massachusetts Overview
9 New York Overview
11 Financial Section
49 Shareholder Meeting Results
50 Shareholder Information
51 Fund Information
1
<PAGE>
Dear Shareholder
It is a pleasure to report to you on the performance of your Nuveen tax-free
money market fund for the year ended February 28, 1997. During this 12-month
period the funds covered in this report continued to achieve their goal of
delivering attractive tax-free income from portfolios of quality municipal
bonds. As of the end of February, investors were receiving annual tax-free
yields that ranged from 2.79% to 2.87%, equivalent to taxable yields of 4.36% to
4.48% for investors in the 36% federal income tax bracket.
The Nuveen money market funds have done well in generating tax-free income for
investors while preserving net asset value stability and investor confidence.
Perhaps even more importantly, your money market fund has continued to deliver
safety and liquidity, which is especially comforting during periods of market
volatility. When combined with the flexibility of checkwriting, money market
funds remain a valuable and convenient investment alternative.
Since our last report, Nuveen has broadened our family of municipal bond funds
to better meet your needs for attractive current income free from federal, and
in some cases, state taxes. In January we merged our mutual fund family with
Flagship Resources, a respected manager of municipal bond mutual funds based in
Dayton, Ohio. This merger added 19 mutual funds to the Nuveen family, giving
investors an expanded array of investment solutions for their personal
portfolios.
[PHOTO OF TIMOTHY R.
SCHWERTFEGER APPEARS HERE]
Timothy R. Schwertfeger
2
<PAGE>
"Since our last report, Nuveen has broadened our family of municipal bond funds
to better meet your needs for attractive current income free from federal, and
in some cases, state taxes."
Nuveen also has created new equity investments to help investors keep more of
what they have earned. In November we launched the Nuveen Growth and Income
Stock Fund, a fund that seeks to provide prudent investors superior equity
market performance with equal or less risk than the overall stock market. In
March we introduced two new balanced mutual funds, each designed to give
investors the combination of performance potential and income protection that
comes from a carefully assembled balance of stocks and bonds.
Nuveen prides itself on providing attractive tax-free income with reduced risk
to more than 1.3 million shareholders. In conversations with investors, many of
you have told me how important tax-free income is to maintaining a lifestyle
that you have worked so hard to build. I appreciate the trust you have placed in
us.
Sincerely,
/S/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
April 14, 1997
3
<PAGE>
Answering Your Questions
[PHOTO OF TOM SPALDING APPEARS HERE]
Tom Spalding, head of Nuveen's portfolio
management team, talks about the municipal bond market and offers insights into
factors that affected fund performance over the past year.
What principal factors affected the municipal bond market and the funds during
the past year?
In 1996, the bond market--despite some fluctuations--was relatively stable
compared with recent years. Following a strong start to the year, a succession
of mixed reports affecting interest rate and inflation forecasts caused
investors to view the markets with alternating enthusiasm and uncertainty.
Throughout the year, euphoria in the equity market focused investors' attention
on stocks and brought record amounts of new money into equity-based mutual
funds, bypassing the bond market. Money market investments turned in good
returns, considering the current low rates available on short-term securities.
Some investors, concerned about a possible correction in the stock market,
decided to take their profits, but adopted a wait-and-see attitude about
investing capital gains, electing to go with shorter-term vehicles until a
clearer picture of market trends emerged.
What impact will future interest rate changes have on fund performance?
Given the uncertainty about a possible correction in the equity market and the
Federal Reserve's recent 0.25% increase in short-term interest rates, municipal
money market funds should see improvement in the tax-free yields they provide
investors.
What is your approach to managing the funds?
We kept the fund's weighted average maturity near the low end of its target
range for the first six months of 1996, so that we could quickly roll assets
into higher yielding securities as they became
4
<PAGE>
"Money market investments turned in good returns, considering the current low
rates available on short- term securities."
available. We took advantage of the June/July note season, when many municipal
governments bring new issues to market, to modestly extend maturity.
What is your outlook for the market in the next year?
Economic expansion continues to be slow and steady, as evidenced by a lack of
price pressure at the consumer and producer levels, strong consumer confidence,
low unemployment figures, and a stable money supply. It is not clear if or when
the Federal Reserve will raise rates again. Our strategy is to keep the fund at
or near its current maturity range until the interim volatility subsides and we
can better assess the direction of interest rates.
5
<PAGE>
Nuveen Tax-Free Reserves, Inc.
February 28, 1997 Annual Report
Reserves
Overview
<TABLE>
<CAPTION>
Fund Highlights
=================================================
<S> <C>
Inception Date 11/82
Total Net Assets $304,087,480
Average Weighted Maturity (Days) 33
- -------------------------------------------------
Tax-Free Yields
=================================================
SEC 7-Day Yield 2.79%
SEC 30-Day Yield 2.80%
- -------------------------------------------------
Taxable Equivalent Yields
=================================================
SEC 7-Day Yield 4.36%
SEC 30-Day Yield 4.38%
- -------------------------------------------------
</TABLE>
Based on a federal income tax rate of 36%; represents the yield needed from a
taxable investment necessary to equal the yield of the Nuveen fund on an after-
tax basis.
[PIE CHART APPEARS HERE]
[LINE GRAPH APPEARS HERE]
====
6
<PAGE>
Nuveen California Tax-Free Money Market Fund
February 28, 1997 Annual Report
California
Overview
<TABLE>
<CAPTION>
Fund Highlights
=================================================
<S> <C>
Inception Date 3/86
Total Net Assets $185,638,604
Average Weighted Maturity (Days) 22
- -------------------------------------------------
Tax-Free Yields
=================================================
SEC 7-Day Yield 2.87%
SEC 30-Day Yield 2.88%
- -------------------------------------------------
Taxable Equivalent Yields
=================================================
SEC 7-Day Yield 4.95%
SEC 30-Day Yield 4.97%
- -------------------------------------------------
</TABLE>
Based on a combined federal and state income tax rate of 42%; represents the
yield needed from a taxable investment necessary to equal the yield of the
Nuveen fund on an after-tax basis.
[PIE CHART APPEARS HERE]
[LINE GRAPH APPEARS HERE]
====
7
<PAGE>
Nuveen Massachusetts Tax-Free Money Market Fund
February 28, 1997 Annual Report
Massachusetts
Overview
<TABLE>
<CAPTION>
Fund Highlights
================================================
<S> <C>
Inception Date 2/87
Total Net Assets $41,024,478
Average Weighted Maturity (Days) 48
- ------------------------------------------------
Tax-Free Yields
================================================
SEC 7-Day Yield 2.79%
SEC 30-Day Yield 2.80%
- ------------------------------------------------
Taxable Equivalent Yields
================================================
SEC 7-Day Yield 4.94%
SEC 30-Day Yield 4.96%
- ------------------------------------------------
</TABLE>
Based on a combined federal and state income tax rate of 43.5%; represents the
yield needed from a taxable investment necessary to equal the yield of the
Nuveen fund on an after-tax basis.
[PIE CHART APPEARS HERE]
[LINE GRAPH APPEARS HERE]
====
8
<PAGE>
Nuveen New York Tax-Free Money Market Fund
February 28, 1997 Annual Report
New York
Overview
<TABLE>
<CAPTION>
Fund Highlights
================================================
<S> <C>
Inception Date 2/87
Total Net Assets $26,546,301
Average Weighted Maturity (Days) 47
- ------------------------------------------------
Tax-Free Yields
================================================
SEC 7-Day Yield 2.86%
SEC 30-Day Yield 2.87%
- ------------------------------------------------
Taxable Equivalent Yields
================================================
SEC 7-Day Yield 4.81%
SEC 30-Day Yield 4.82%
- ------------------------------------------------
</TABLE>
Based on a combined federal and state income tax rate of 40.5%; represents the
yield needed from a taxable investment necessary to equal the yield of the
Nuveen fund on an after-tax basis.
[PIE CHART APPEARS HERE]
[LINE GRAPH APPEARS HERE]
====
9
<PAGE>
Financial Section
Contents
12 Portfolio of Investments
25 Statement of Net Assets
26 Statement of Operations
30 Statement of Changes in Net Assets
34 Notes to Financial Statements
39 Financial Highlights
48 Report of Independent
Public Accountants
====
11
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
Tax-Free Reserves
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alabama -- 4.0%
$12,200,000 The Medical Clinic Board of the City of Birmingham - UAHSF, Medical A-1+ $12,200,000
Clinic Revenue Bonds, UAHSF Series 1991, Variable Rate Demand
Bonds, 3.550%, 12/01/26+
- -----------------------------------------------------------------------------------------------------------------------
Arizona -- 6.4%
7,000,000 The Industrial Development Authority of the County of Apache (Arizona), VMIG-1 7,000,000
Pollution Control Revenue Bonds, 1981 Series B (Tucson Electric Power
Company Project ), Variable Rate Demand Bonds, 3.450%, 10/01/21+
12,600,000 City of Mesa Municipal Development Corporation, Special Tax Updates VMIG-1 12,600,000
Bonds, Series 1985, Commercial Paper, 3.400%, 4/30/97
- -----------------------------------------------------------------------------------------------------------------------
Arkansas -- 1.0%
2,900,000 Board of Trustees of the University of Arkansas, Various Facility Revenue VMIG-1 2,900,000
Bonds (UAMS Campus), Series 1994, Variable Rate Demand Bonds,
3.350%, 12/01/19+
- -----------------------------------------------------------------------------------------------------------------------
California -- 2.6%
5,000,000 California School Cash Reserve Program Authority, 1996 Pool Bonds, MIG-1 5,013,770
Series A Note, 4.750%, 7/02/97
3,000,000 Santa Clara County Transit District, Refunding Equipment Trust VMIG-1 3,000,000
Certificates, Variable Rate Demand Bonds, 3.450%, 6/01/15+
- -----------------------------------------------------------------------------------------------------------------------
Delaware -- 3.8%
11,452,500 New Castle County, Delaware, Economic Development Revenue Refunding A-1 11,452,500
Bonds (Henderson/McGuire Partners Project), Series 1993, Variable
Rate Demand Bonds, 3.350%, 8/15/20+
- -----------------------------------------------------------------------------------------------------------------------
District of Columbia -- 2.4%
7,200,000 District of Columbia (Washington, D.C.), General Obligation General VMIG-1 7,200,000
Fund Recovery Bonds, Series 1991B, Variable Rate Demand Bonds,
3.500%, 6/01/03+
- -----------------------------------------------------------------------------------------------------------------------
Florida -- 5.9%
1,400,000 Florida Housing Finance Agency, Multi-Family Housing Revenue Refunding A-1 1,400,000
Bonds, 1989 Series E (Fairmont Oaks Project), Variable Rate Demand
Bonds, 3.500%, 4/01/26+
4,210,000 Florida Municipal Power Agency, Initial Pooled Loan Project, Commercial A-1 4,210,000
Paper Notes, Series A, 3.450%, 6/20/97
1,000,000 Atlantic Beach Improvement and Refunding Revenue Bonds, Series VMIG-1 1,000,000
1994B (Fleet Landing Project), Variable Rate Demand Bonds,
3.500%, 10/01/24+
=====
12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Florida -- continued
$3,100,000 Pasco County Housing Finance Authority, Multi-Family Housing Revenue VMIG-1 $ 3,100,000
Bonds (Carlton Arms of Magnolia Valley Project), Series 1985, Variable
Rate Demand Bonds, 3.375%, 12/01/07+
4,800,000 Sarasota County Public Hospital District, Hospital Revenue Bonds A-1+ 4,800,000
(Sarasota Memorial Hospital Project), Series C, Commercial Paper,
3.450%, 3/21/97
3,300,000 Sunshine State Governmental Financing Commission, Revenue Bonds, VMIG-1 3,300,000
Series 1986, Commercial Paper, 3.500%, 3/05/97
- -----------------------------------------------------------------------------------------------------------------------
Georgia -- 6.1%
Municipal Gas Authority of Georgia, Gas Revenue Bonds (Transco
Portfolio I Project), Series B, Commercial Paper:
5,000,000 3.300%, 3/07/97 A-1+ 5,000,000
3,400,000 3.400%, 5/14/97 VMIG-1 3,400,000
10,000,000 Fulco Hospital Authority, Revenue Anticipation Certificates (Saint VMIG-1 10,000,000
Joseph's Hospital of Atlanta Project), Series 1989, Commercial
Paper, 3.350%, 4/30/97
- -----------------------------------------------------------------------------------------------------------------------
Hawaii -- 0.9%
2,600,000 Hawaii State Department of Budget and Finance, Special Purpose A-1 2,600,000
Floating Rate Demand Revenue Bonds (Adventist
Health System -- West), Series 1984, Variable Rate
Demand Bonds, 3.700%, 9/01/99+
- -----------------------------------------------------------------------------------------------------------------------
Illinois -- 9.1%
7,000,000 Illinois Development Finance Authority, Pollution Control Revenue Bonds P-1 7,000,000
(Diamond - Star Motors Corporation Project), Series 1985, Variable
Rate Demand Bonds, 3.550%, 12/01/08+
6,000,000 Illinois Education Facilities Authority, Adjustable Demand Revenue VMIG-1 6,000,000
Bonds, Shedd Aquarium Society, Series 1987B, Commercial Paper,
3.550%, 5/06/97
1,570,000 Illinois Health Facilities Authority, Unit Priced Demand Adjustable Revenue A-1+ 1,570,000
Bonds, Alexian Brothers Health System, Inc. (Alexian Brothers Medical
Center, Inc. Project), Series 1985D, Commercial Paper, 3.400%, 4/25/97
4,400,000 Illinois Health Facilities Authority, Adjustable Demand Revenue Bonds, VMIG-1 4,400,000
Series 1991 (Victory Health Services Project), Commercial Paper,
3.500%, 3/20/97
=====
13
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
Tax-Free Reserves -- continued
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Illinois -- continued
$ 3,000,000 City of Chicago, Chicago-O'Hare International Airport, Special Facility P-1 $ 3,000,000
Revenue Bonds (American Airlines, Inc. Project), Series 1983C,
Variable Rate Demand Bonds, 3.450%, 12/01/17+
5,700,000 City of Decatur, Macon County, Illinois, Unit Priced Demand Adjustable VMIG-1 5,700,000
Water Revenue Bonds, Series 1985, Commercial Paper,
3.550%, 4/09/97
- -----------------------------------------------------------------------------------------------------------------------
Iowa -- 2.9%
6,000,000 Iowa School Corporations, Warrant Certificates, 1996-97 Series A MIG-1 6,014,916
Note, 4.750%, 6/27/97
2,900,000 City of Eddyville, Iowa, Industrial Development Revenue Bonds N/R 2,900,000
(Heartland Lysine, Inc. Project), Series 1985, Variable Rate
Demand Bonds, 3.650%, 11/01/03+
- -----------------------------------------------------------------------------------------------------------------------
Kentucky -- 3.6%
2,000,000 Kentucky Governmental Agencies, 1996 Cash Flow Borrowing Program, N/R 2,000,947
Certificates of Participation, Tax and Revenue Anticipation Notes,
4.300%, 6/30/97
9,005,000 Hancock County, Kentucky, Industrial Building Revenue Refunding N/R 9,005,000
Bonds (Southwire Company Project), Series 1990, Variable Rate
Demand Bonds, 3.900%, 7/01/10+
- -----------------------------------------------------------------------------------------------------------------------
Louisiana -- 4.9%
10,000,000 Louisiana Recovery District, Sales Tax Bonds, Series 1988, Commercial Aaa 10,000,000
Paper, 3.900%, 7/01/97
5,000,000 Ascension Parish Pollution Control (BASF Wyandotte Corporation), P-1 5,000,000
Variable Rate Demand Bonds, 3.500%, 12/01/05+
- -----------------------------------------------------------------------------------------------------------------------
Michigan -- 2.7%
7,100,000 Michigan Job Development Authority, Limited Obligation Revenue Bonds A-1 7,100,000
(Frankenmuth Bavarian Inn Motor Lodge Project), Series A, Variable
Rate Demand Bonds, 3.850%, 9/01/15+
1,065,000 The Economic Development Corporation of the City of Warren, MaComb P-1 1,065,000
County, Michigan, Floating Rate Limited Obligation Revenue Bonds
(The Prince Company, Inc., Michigan Division Project), Series A,
Variable Rate Demand Bonds, 3.750%, 11/01/99+
- -----------------------------------------------------------------------------------------------------------------------
Minnesota -- 2.5%
5,255,000 City of Bloomington, Minnesota, Floating Rate Demand Commercial A-1+ 5,255,000
Revenue Bonds (James Avenue Associates Project), Series 1985,
Variable Rate Demand Bonds, 3.350%, 12/01/15+
</TABLE>
====
14
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Minnesota -- continued
$ 2,400,000 Housing and Redevelopment Authority of the City of Saint Paul, A-1 $2,400,000
Minnesota, Variable Rate Demand Purchase, District Heating
Revenue Bonds, 1982 Series A, Variable Rate Demand Bonds,
3.550%, 12/01/12+
- -----------------------------------------------------------------------------------------------------------------------
Missouri -- 3.0%
State Environmental Improvement and Energy Resources Authority,
Unit Priced Demand Adjustable Pollution Control Revenue Bonds,
Series 1985 A (Union Electric Company), Commercial Paper:
3,600,000 3.300%, 4/10/97 VMIG-1 3,600,000
5,600,000 3.550%, 5/21/97 VMIG-1 5,600,000
- -----------------------------------------------------------------------------------------------------------------------
New Hampshire -- 2.3%
7,000,000 New Hampshire Higher Educational and Health Facilities Authority, A-1 7,000,000
Revenue Bonds, Hunt Community Issue, Series 1996, Variable Rate
Demand Bonds, 3.450%, 5/01/26+
- -----------------------------------------------------------------------------------------------------------------------
New York -- 2.8%
3,500,000 The City of New York, General Obligation Bonds, Fiscal 1995 Series B, VMIG-1 3,500,000
Variable Rate Demand Bonds, 3.500%, 8/15/22+
5,000,000 The City of New York, General Obligation Revenue Anticipation Notes, MIG-1 5,012,173
Fiscal 1997 Series B, 4.500%, 6/30/97
- -----------------------------------------------------------------------------------------------------------------------
North Carolina -- 4.0%
2,400,000 The Wake County Industrial Facilities and Pollution Control Financing P-1 2,400,000
Authority, Pollution Control Refunding Bonds (Carolina Power and
Light Company Project), Series 1990B, Commercial Paper,
3.700%, 4/10/97
6,630,000 The Wake County Industrial Facilities and Pollution Control Financing P-1 6,630,000
Authority, Pollution Control Refunding Bonds (Carolina Power and
Light Company Project), Series 1990A, Commercial Paper,
3.550%, 4/09/97
3,000,000 The Wake County Industrial Facilities and Pollution Control Financing VMIG-1 3,000,000
Authority, Pollution Control Refunding Bonds (Carolina Power and
Light Company Project), Series 1985C, Variable Rate Demand Bonds,
3.500%, 10/01/15
- -----------------------------------------------------------------------------------------------------------------------
Ohio -- 9.4%
3,100,000 Ohio School Districts, 1996 Cash Flow Borrowing Program, Certificates MIG-1 3,105,231
of Participation, Revenue Anticipation Notes of Certain Ohio School
Districts, Series B, 4.530%, 6/30/97
</TABLE>
====
15
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
Tax-Free Reserves -- continued
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ohio -- continued
$ 8,800,000 Centerville Variable Rate Demand Health Care Revenue Bonds VMIG-1 $ 8,800,000
(Bethany Lutheran Village Continuing Care Facilities Expansion
Project), Variable Rate Demand Bonds, 3.400%, 5/01/08+
5,200,000 Port Authority of Cincinnati and Hamilton County, Daily Adjustable A-2 5,200,000
Economic Development Revenue Bonds (Kenwood Office Associates
Project), Series 1985, Variable Rate Demand Bonds, 3.500%, 9/01/25+
1,200,000 Cuyahoga County, University Hospital of Cleveland, Series 1985, Variable VMIG-1 1,200,000
Rate Demand Bonds, 3.550%, 1/01/16+
5,120,000 County of Erie, Ohio, Adjustable Rate Demand Health Care Facilities VMIG-1 5,120,000
Revenue Bonds (The Commons of Providence Project), Series 1996 B,
Variable Rate Demand Bonds, 3.450%, 10/01/21+
3,685,000 County of Franklin, Ohio, Floating Rate Demand Hospital Financing N/R 3,685,000
Revenue Bonds, Series 1993 (Traditions at Mill Run Project), Variable
Rate Demand Bonds, 3.500%, 11/01/14+
1,880,000 County of Hamilton, Ohio, Adjustable Rate Demand Healthcare Revenue N/R 1,880,000
Bonds, Series 1995 (Community Limited Care Dialysis Center Project),
Variable Rate Demand Bonds, 3.350%, 9/01/05+
- -----------------------------------------------------------------------------------------------------------------------
Oregon -- 1.0%
3,100,000 Port of Morrow (Portland G.E. Company Boardman Project), Variable VMIG-1 3,100,000
Rate Demand Bonds, 3.500%, 10/01/13+
- -----------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 3.4%
3,250,000 The Pennsylvania State University Notes, Series of 1996, MIG-1 3,252,189
4.250%, 4/04/97
4,000,000 City of Philadelphia, Pennsylvania, General Obligation Bonds, VMIG-1 4,000,000
Series 1990B, Commercial Paper, 3.550%, 4/10/97
3,000,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Notes, A-1+ 3,000,000
Commercial Paper, Series B, 3.500%, 3/27/97
- -----------------------------------------------------------------------------------------------------------------------
Tennessee -- 4.4%
6,800,000 The Public Building Authority of the City of Clarksville, Adjustable Rate A-1+ 6,800,000
Pooled Financing Revenue Bonds, Series 1994 (Tennessee Municipal
Bond Fund), Variable Rate Demand Bonds, 3.300%, 6/01/24+
3,500,000 The Industrial Development Board of the County of Jackson, Variable N/R 3,500,000
Rate Industrial Development Demand Revenue Bonds (Esselte Project),
Series 1985B, Variable Rate Demand Bonds, 3.550%, 8/01/15+
3,000,000 The Public Building Authority of the County of Montgomery, Adjustable A-1+ 3,000,000
Rate Pooled Financing Revenue Bonds, Series 1985 (Tennessee
County Loan Pool), Variable Rate Demand Bonds, 3.300%, 3/01/25+
</TABLE>
=====
16
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Texas -- 3.0%
$ 4,000,000 State of Texas Tax and Revenue Anticipation Notes, Series 1996, MIG-1 $ 4,023,588
4.750%, 8/29/97
5,000,000 Southwest Higher Education Authority, Southern Methodist University, VMIG-1 5,000,000
Variable Rate Demand Bonds, 3.450%, 7/01/15+
- -----------------------------------------------------------------------------------------------------------------------
Utah -- 1.2%
3,550,000 West Valley City Industrial Development (Johnson Matthey Project), N/R 3,550,000
Variable Rate Demand Bonds, 3.550%, 12/01/11+
- -----------------------------------------------------------------------------------------------------------------------
Virginia -- 2.9%
3,000,000 Industrial Development Authority of Albemarle County, Variable Rate Health A-1 3,000,000
Services Revenue Bonds (The University of Virginia Health Services
Foundation), Series 1996, Variable Rate Demand Bonds, 3.350%, 2/01/26+
2,600,000 The Industrial Development Authority of the City of Norfolk, Floating N/R 2,600,000
Rate Industrial Development Revenue Bonds (Norfolk-Virginia Beach-
Portsmouth MSA Limited Partnership Project), Variable Rate Demand
Bonds, 5.363%, 11/01/04+
3,300,000 The Industrial Development Authority of the City of Richmond, Floating N/R 3,300,000
Rate Industrial Development Revenue Bonds (Richmond MSA Limited
Partnership Project), Variable Rate Demand Bonds, 5.363%, 11/01/04+
- -----------------------------------------------------------------------------------------------------------------------
Washington -- 3.2%
5,100,000 Washington Health Care Facilities Authority, Variable Rate Demand A-1 5,100,000
Revenue Bonds, Series 1984 (Adventist Health System-West/Walla
Walla General Hospital), Variable Rate Demand Bonds,
3.700%, 9/01/09+
3,300,000 Washington State Housing Finance Commission, Nonprofit Revenue VMIG-1 3,300,000
Bonds (Crista Ministries Project), Series 1991A, Variable Rate
Demand Bonds, 3.300%, 7/01/11+
1,400,000 Spokane County, Washington, Road Fund Tax Anticipation Notes, N/R 1,400,000
Series 1996B, 4.000%, 6/30/97
- -----------------------------------------------------------------------------------------------------------------------
$302,172,500 Total Investments -- 99.4% 302,245,314
============-----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.6% 1,842,166
-------------------------------------------------------------------------------------------------------
Net Assets -- 100% $304,087,480
=======================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public
accountants): rating. Using the higher of Standard & Poor's
or Moody's
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.
=====
17
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
California -- continued
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$2,700,000 California Health Facilities Financing Authority (Sutter/CHS), Series VMIG-1 $2,702,188
1996B, Variable Rate Demand Bonds, 3.350%, 7/01/12+
2,000,000 California Health Facilities Financing Authority (Sutter/CHS), VMIG-1 2,000,000
Variable Rate Demand Bonds, 3.350%, 7/01/22+
7,700,000 California Health Facilities Authority, Variable Rate Hospital Revenue VMIG-1 7,700,000
Bonds, Adjustable Convertible Extendable Securities -- ACES
(Saint Francis Memorial Hospital), Series 1993B, Variable Rate
Demand Bonds, 3.200%, 11/01/19+
3,000,000 California School Cash Reserve Program Authority, 1996 Pool Bonds MIG-1 3,008,262
Series A, General Obligation Note, 4.750%, 7/02/97
3,000,000 State of California 1996-97 Revenue Anticipation Notes, MIG-1 3,005,071
4.500%, 6/30/97
2,001,000 State of California Department of Water Resources, Water Revenue A-1+ 2,001,000
Commercial Paper Notes, Series 1, 3.350%, 5/23/97
7,100,000 Certificates of Participation, California Statewide Communities VMIG-1 7,100,000
Development Authority, Northern California Retired Officers
Community, Variable Rate Demand Bonds, 3.350%, 6/01/26+
4,430,000 Tri-Modal Variable Rate Revenue Refunding Certificates of A-1+ 4,430,000
Participation (House Ear Institute), 1993 Series A, Variable Rate
Demand Bonds, 3.350%, 12/01/18+
9,200,000 California Statewide Communities Development Authority, VMIG-1 9,200,000
Certificates of Participation, St. Joseph Health System Obligated
Group, Variable Rate Demand Bonds, 3.350%, 7/01/24+
3,080,000 Chico Multifamily Housing (Sycamore Glen Project), Variable Rate N/R 3,080,000
Refunding Bonds, Series 1995, Variable Rate Demand Bonds,
3.590%, 4/07/14+
4,500,000 Contra Costa Multifamily Mortgage Revenue Refunding (Delta Square VMIG-1 4,500,000
Project), Series 1990A, Variable Rate Demand Bonds, 3.300%, 8/01/07+
3,700,000 Fremont Multifamily Housing (Mission Wells Project), Series 1985E, A-1 3,700,000
Variable Rate Demand Bonds, 3.350%, 9/01/07+
2,000,000 Grand Terrace Redevelopment Agency, Multifamily Housing A-1 2,000,000
(Mount Vernon Villas Project), Variable Rate Demand Bonds,
3.350%, 12/01/11+
3,000,000 Hayward Housing Authority, Multifamily Mortgage Revenue A-1 3,000,000
Refunding Bonds,Series 1993A (Huntwood Terrace), Variable
Rate Demand Bonds, 3.400%, 3/01/27+
3,860,000 Hillsborough Certificates of Participation, Water and Sewer System A-1 3,860,000
Project, Series 1995A, Variable Rate Demand Bonds, 3.700%, 6/01/15+
18
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$6,400,000 Irvine Ranch Water District, Consolidated A-1+ $6,400,000
Bonds, Series 1985-B, 1986 Capital Improvement
Project, Variable Rate Demand Bonds,
3.250%, 10/01/09+
3,100,000 Irvine Ranch Water District, Variable VMIG-1 3,100,000
Rate Demand Bonds, 3.250%, 6/01/15+
4,300,000 Irvine Ranch Water District, Variable VMIG-1 4,300,000
Rate Demand Consolidated Refunding Bonds,
Series A, Variable Rate Demand Bonds,
3.250%, 5/01/09+
9,000,000 Kern Community College District, Certificates A-2 9,000,000
of Participation, Series 1995, Variable Rate
Demand Bonds, 3.950%, 1/01/25+
4,855,000 City of Los Angeles (Studio Colony Project), VMIG-1 4,855,000
Multifamily Housing Revenue Bonds, Variable
Rate Demand Bonds, 3.350%, 5/01/07+
2,400,000 Los Angeles County, Tax and Revenue Anticipation MIG-1 2,407,859
Notes, 1996-1997 Series A, 4.500%, 6/30/97
2,500,000 The City of Los Angeles, Wastewater System, VMIG-1 2,500,000
Commercial Paper Revenue Notes, 3.400%,
5/15/97
8,400,000 Monterey County Financing Authority, Revenue VMIG-1 8,400,000
Bonds (Reclamation and Distribution Project),
Series 1995A, Variable Rate Demand Bonds,
3.400%, 9/01/36+
7,100,000 Oakland, California Certificates of Participation, N/R 7,100,000
Project, Variable Rate Demand Capital Improvement
Bonds, 3.650%, 12/01/15+
7,900,000 Orange County Apartment Development (Monarch Bay A-1 7,900,000
Apartments Project), Variable Rate Demand Bonds,
3.300%, 10/01/07+
3,800,000 Orange County (Robinson Ranch Apartments Project), VMIG-1 3,800,000
Variable Rate Demand Revenue Bonds, 3.450%,
11/01/08+
1,500,000 Orange County Irvine Coast Assessment District VMIG-1 1,500,000
#88-1, Variable Rate Demand Bonds, 3.400%,
9/02/18+
4,200,000 Orange County Sanitation District, Certificates VMIG-1 4,200,000
of Participation, Variable Rate Demand Bonds,
3.400%, 8/01/17+
2,000,000 Orange County Water District, Variable Rate A-1+ 2,000,000
Rate Demand Bonds, 3.250%, 8/15/15+
4,200,000 San Diego County Rincon Del Diablo Municipal Water VMIG-1 4,200,000
District, Rincon Public Facilities Corporation,
Commercial Paper, 3.850%, 5/01/97
8,000,000 Sacramento Municipal Utility District, Series I, A-1+ 8,000,000
Commercial Paper Notes, 3.350%, 6/20/97
1,200,000 San Bernardino Multifamily Housing (Castle Park VMIG-1 1,200,000
Apartments), Variable Rate Demand Bonds, 3.550%,
11/01/05+
19
</TABLE>
<PAGE>
Portfolio of Investments
California -- continued
<TABLE>
<CAPTION>
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 2,500,000 San Bernardino County, 1996-1997 Tax and Revenue Anticipation MIG-1 $ 2,504,986
Notes, 4.500%, 6/30/97
2,000,000 San Bernardino County (1996 County Center Refinancing Project), VMIG-1 2,000,000
Certificates of Participation, Variable Rate Demand Bonds,
3.250%, 7/01/15+
3,000,000 San Diego Housing Authority, Multifamily Housing Revenue Refunding A-1+ 3,000,000
Bonds, Series 1993-A, (Carmel Del Mar Apartments), Variable Rate
Demand Bonds, 3.200%, 12/01/15+
3,000,000 San Diego County Teeter Obligation, Tax-Exempt Commercial Paper, A-1 3,000,000
3.350%, 5/22/97
7,000,000 San Dimas Industrial Development Bonds (Bausch & Lomb N/R 7,000,000
Incorporated), Variable Rate Demand Bonds, 3.650%, 12/01/15+
5,900,000 Santa Paula Public Financing Authority, Lease Revenue Bonds, Series A-1 5,900,000
1996 Water System Acquisition Project, Variable Rate Demand
Bonds, 3.500%, 2/01/26+
5,000,000 Southern California Public Power Authority, Transmission Project, VMIG-1 5,000,000
Variable Rate Demand Bonds, 3.200%, 7/01/19+
8,000,000 Torrance Hospital Revenue (Little Company of Mary Hospital -- A-1 8,000,000
Torrance Memorial Hospital), Variable Rate Demand Bonds,
3.250%, 2/01/22+
900,000 Turlock Irrigation District (Transmission Projects), 1996 Series A, VMIG-1 900,000
Certificates of Participation, Variable Rate Demand Bonds,
3.150%, 1/01/26+
2,640,000 Vista Multifamily Housing (Shadowridge Apartments), Variable Rate A-1+ 2,640,000
Demand Bonds, 3.350%, 5/01/05+
3,000,000 Washington Township Hospital District, 1984 Issue A, Variable Rate VMIG-1 3,000,000
Demand Bonds, 3.350%, 1/01/16+
- -----------------------------------------------------------------------------------------------------------------------
$185,066,000 Total Investments -- 99.7% 185,094,366
============-----------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.3% 544,238
-------------------------------------------------------------------------------------------------------
Net Assets -- 100% $185,638,604
=======================================================================================================
</TABLE>
* Ratings (not covered by the report of independent public
accountants): Using the higher of Standard & Poor's or
Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
Portfolio of Investments
Massachusetts
Principal Amortized
Amount Description Ratings* Cost
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$1,000,000 Brookline General Obligation Bonds, Unlimited Tax -- Note, Aaa $1,000,568
3.750%, 6/04/97
2,000,000 Framingham General Obligation Bonds, Unlimited Tax -- Note, N/R 2,000,902
4.250%, 3/28/97
1,500,000 Ipswich, Massachusetts Bond Anticipation Notes, General Obligation N/R 1,504,722
Unlimited Tax -- Note, 4.000%, 2/05/98
2,000,000 Massachusetts Bay Transportation Authority, Series C, Commercial A-1+ 2,000,000
Paper, 3.500%, 5/29/97
500,000 The Commonwealth of Massachusetts, Dedicated Income Tax VMIG-1 500,000
Bonds, Fiscal Recovery Loan Act of 1990, Series B, Variable Rate
Demand Bonds, 3.400%, 12/01/97
1,300,000 The Commonwealth of Massachusetts, Dedicated Income Tax Bonds, VMIG-1 1,300,000
Fiscal Recovery Loan Act of 1990, Series E, Variable Rate
Demand Bonds, 3.400%, 12/01/97
Massachusetts Health and Educational Facilities Authority
(Capital Asset Program), Variable Rate Demand Bonds:
500,000 3.150%, 7/01/05+ VMIG-1 500,000
1,900,000 3.450%, 1/01/35+ VMIG-1 1,900,000
1,900,000 Massachusetts Health and Educational Facilities Authority VMIG-1 1,900,000
(Harvard University), Variable Rate Demand Bonds,
3.200%, 8/01/17+
1,800,000 Massachusetts Health and Educational Facilities Authority VMIG-1 1,800,000
(Brigham and Women's Hospital), Variable Rate Demand Bonds,
3.200%, 7/01/17+
1,200,000 Massachusetts Health and Educational Facilities Authority VMIG-1 1,200,000
(M.I.T. Project), Variable Rate Demand Bonds, 3.100%, 7/01/21+
1,145,000 Massachusetts Industrial Finance Agency, Adjustable Rate N/R 1,145,000
Industrial Revenue Bonds (Jencoat/Levy Realty Trust), Variable
Rate Demand Bonds, 4.210%, 10/06/99+
800,000 Massachusetts Industrial Finance Agency (Nova Realty Trust 1994 P-1 800,000
Refunding), Variable Rate Demand Bonds, 3.100%, 12/01/02+
1,940,000 Massachusetts Health and Educational Facilities Authority A-2 1,940,000
(Community Health Center Capital Fund), Variable Rate Demand
Bonds, 3.300%, 3/01/15+
2,000,000 Massachusetts Industrial Finance Agency, Pollution Control Revenue A-1 2,000,000
Refunding (New England Power Company), Commercial Paper,
3.450%, 3/05/97
1,900,000 Massachusetts Port Authority, Multimodal Revenue Refunding Bonds, VMIG-1 1,900,000
Series 1995A, Variable Rate Demand Bonds, 3.350%, 7/01/15+
21
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
Massachusetts -- continued
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,575,000 Massachusetts Industrial Finance Agency, Chestnut House Apartments A-1 $ 1,575,000
(FHA Insurance), Variable Rate Demand Bonds, 3.150%, 8/01/26+
1,900,000 Massachusetts Industrial Finance Agency (Showa Women's Institute VMIG-1 1,900,000
Boston, Inc. 1994 Project), Variable Rate Demand Bonds,
3.400%, 3/15/04+
1,000,000 Massachusetts Industrial Finance Agency (Emerson College Issue), N/R 1,000,000
Series 1995, Variable Rate Demand Bonds, 3.100%, 1/01/15+
1,900,000 Massachusetts Industrial Finance Agency, Edgewood Retirement VMIG-1 1,900,000
Community Project, Series 1995-C, Variable Rate Demand Bonds,
3.350%, 11/15/25+
1,000,000 Massachusetts Industrial Finance Agency (Lower Mills Associates N/R 1,000,000
LP), Series 1995, Variable Rate Demand Bonds, 3.100%, 12/01/20+
1,800,000 Massachusetts Industrial Finance Agency (Newbury College), N/R 1,800,000
1996 Series, Variable Rate Demand Bonds, 3.100%, 6/01/21+
1,800,000 Massachusetts Water Resources Authority, Series 1994, A-1+ 1,800,000
Commercial Paper, 3.350%, 3/06/97
1,500,000 Medway Massachusetts Bond Anticipation Notes, 4.000%, 6/13/97 N/R 1,501,812
1,000,000 Natick Bond Anticipation Notes, General Obligation Unlimited Tax N/R 1,001,436
-- Note, 3.750%, 2/27/98
500,000 New Bedford Industrial Development Revenue Refunding (Cliftex N/R 500,000
Corporation), Series 1989, Variable Rate Demand Bonds,
4.210%, 10/01/97
1,000,000 Peabody Bond Anticipation Notes, General Obligation Unlimited Tax N/R 1,001,431
-- Note, 4.150%, 8/15/97
900,000 Puerto Rico Industrial Medical Education and Environmental A-1 900,000
Authority, Ana G. Mendez Educational Foundation (FEAGM Project),
Variable Rate Demand Bonds, 3.300%, 12/01/15+
- ------------------------------------------------------------------------------------------------------------
$39,260,000 Total Investments -- 95.7% 39,270,871
===========-------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 4.3% 1,753,607
---------------------------------------------------------------------------------------------
Net Assets -- 100% $41,024,478
=============================================================================================
* Ratings (not covered by the report of independent public accountants): Using the
higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and demand
features which qualify it as a short-term security. The rate disclosed is that
currently in effect. This rate changes periodically based on market conditions or a
specified market index.
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
New York
Principal Amortized
Amount Description Ratings* Cost
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$1,000,000 Buffalo Revenue Anticipation Notes, 4.250%, 7/15/97 MIG-1 $1,002,377
1,000,000 Dutchess County Industrial Development Agency Industrial Development A-1 1,000,000
Revenue Bonds (Toys "R" US -- NYTEX Inc. Facility), Series 1984,
Variable Rate Demand Bonds, 3.425%, 11/01/19+
1,000,000 Great Neck Union Free School District In The County Of Nassau New York, MIG-1 1,001,127
Tax Anticipation Notes For 1996-1997, 4.250%, 6/30/97
700,000 Guilderland Industrial Development Agency, Industrial Development P-1 700,000
Variable Rate Refunding Bonds, Series 1993A (Northeastern Ind. Park),
Variable Rate Demand Bonds, 3.200%, 12/01/08+
1,000,000 Nassau County Industrial Development Agency, Manhasset Associates A-1 1,000,000
Project, Series 1984, Variable Rate Demand Bonds, 3.250%, 12/01/99+
300,000 Nassau County Industrial Development Agency, Cold Spring Harbor Series A-1+ 300,000
1993, Variable Rate Demand Bonds, 3.400%, 7/01/23+
385,000 New York City Housing Development Corporation (Parkgate Tower), A-1+ 385,000
Variable Rate Demand Bonds, 3.250%, 12/01/07+
300,000 New York City Housing Development Corporation (Columbus Gardens A-1+ 300,000
Project), Variable Rate Demand Bonds, 3.200%, 2/01/07+
1,000,000 New York City Industrial Development Agency, Refunding Revenue A-1 1,000,000
(LaGuardia Associates Project), Variable Rate Demand Bonds,
3.400%, 12/01/15+
1,100,000 New York City Trust for Cultural Resources (Guggenheim Foundation), VMIG-1 1,100,000
Variable Rate Demand Bonds, 3.300%, 12/01/15+
1,000,000 New York City General Obligation Fiscal 1996 Series J-2, Commercial A-1+ 1,000,000
Paper, 3.450%, 7/06/97
1,000,000 New York City Series J-3, Commercial Paper, 3.550%, 5/30/97 A-1+ 1,000,000
1,000,000 Dormitory Authority of the State of New York (Sloan Kettering Cancer A-1 1,000,000
Center), Variable Rate Demand Bonds, 3.250%, 3/03/97
900,000 New York State Dormitory Authority, Revenue Bonds, Series 1995, VMIG-1 900,000
(Beverwyck Inc.), Variable Rate Demand Bonds, 3.400%, 7/01/25+
1,000,000 New York State Energy Research and Development Authority, Pollution P-1 1,000,000
Control Revenue (Central Hudson Gas and Electric Corporation),
Variable Rate Demand Bonds, 3.200%, 11/01/20+
2,400,000 New York State Energy Research and Development Authority, Pollution N/R 2,400,000
Control (Niagara Mohawk Power Corporation), Variable Rate Demand
Bonds, 3.700%, 3/01/27+
1,000,000 New York State Environmental Facilities Corporation (General Electric A-1+ 1,000,000
Company), Commercial Paper, 3.450%, 6/27/97
</TABLE>
23
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments
New York -- continued
Principal Amortized
Amount Description Ratings* Cost
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1,200,000 New York State Housing Finance Agency (Normandie Court), Variable VMIG-1 $ 1,200,000
Rate Demand Bonds, 3.200%, 5/15/15+
900,000 New York State Housing Finance Agency, Demand Revenue Bonds, VMIG-1 900,000
Series 1984-A (Mt. Sinai School of Medicine), Variable Rate
Demand Bonds, 3.300%, 11/01/14+
765,000 New York State Job Development Authority, Series 1984E, Variable MIG-1 765,000
Rate Demand Bonds, 3.700%, 3/01/99+
1,200,000 New York Local Government Assistance Corp., Series 1995E, Variable VMIG-1 1,200,000
Rate Demand Bonds, 3.200%, 4/01/25+
1,000,000 New York State Medical Care Facilities Finance Agency (Lenox Hill VMIG-1 1,000,000
Hospital), Variable Rate Demand Bonds, 3.250%, 11/01/08+
1,200,000 New York State Medical Care Facilities Finance Agency (Children's VMIG-1 1,200,000
Hospital of Buffalo), Variable Rate Demand Bonds,
3.400%, 11/01/05+
1,000,000 Sayville UFSD General Obligation Tax Anticipation Notes, MIG-1 1,001,704
4.500%, 6/26/97
1,100,000 Village of Southampton, Suffolk County, New York, Anticipation N/R 1,103,040
Notes, 1997, 4.000%, 2/13/98
500,000 Syracuse Industrial Development Agency, Multi-Modal VMIG-1 500,000
Interchangeable Rate, Civic Facility Revenue Bonds, (Syracuse
University), Variable Rate Demand Bonds, 3.300%, 3/01/23+
400,000 Triborough Bridge and Tunnel Authority Special Obligation, Variable MIG-1 400,000
Rate Demand Bonds, Series 1994, 3.200%, 1/01/24+
500,000 Yonkers Industrial Development Agency, Series 1989 Civic Facility VMIG-1 500,000
Revenue Bonds, Variable Rate Demand Bonds, 3.150%, 7/01/19+
- ------------------------------------------------------------------------------------------------------------------------------------
$25,850,000 Total Investments -- 97.4% 25,858,248
=======================-------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 2.6% 688,053
--------------------------------------------------------------------------------------------------------
Net Assets -- 100% $26,546,301
========================================================================================================
* Ratings (not covered by the report of
independent public accountants): Using the
higher of Standard & Poor's or Moody's rating.
N/R--Investment is not rated.
+ The security has a maturity of more than one
year, but has variable rate and demand features
which qualify it as a short-term security. The
rate disclosed is that currently in effect.
This rate changes periodically based on market
conditions or a specified market index.
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
Statement of Net Assets
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
Reserves CA MA NY
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Investments in short-term municipal securities,
at amortized cost (note 1) $302,245,314 $185,094,366 $39,270,871 $25,858,248
Cash 961,970 222,102 623,305 456,427
Receivables:
Interest 1,796,319 821,593 227,624 122,943
Investments sold -- - 1,060,000 220,000
Other assets 18,613 14,186 15,483 7,845
- -----------------------------------------------------------------------------------------------------------------------
Total assets 305,022,216 186,152,247 41,197,283 26,665,463
- -----------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued expenses:
Management fees (note 4) 114,301 54,527 12,387 8,154
Other 177,952 67,513 72,516 50,699
Dividends payable 642,483 391,603 87,902 60,309
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 934,736 513,643 172,805 119,162
- -----------------------------------------------------------------------------------------------------------------------
Net assets applicable to shares outstanding (note 3) $304,087,480 $185,638,604 $41,024,478 $26,546,301
=======================================================================================================================
Shares outstanding:
Service Plan series -- 95,306,430 9,964,264 414,071
Distribution Plan series -- 57,489,607 27,082,874 26,115,563
Institutional series -- 32,842,567 3,977,340 16,667
- -----------------------------------------------------------------------------------------------------------------------
Total shares outstanding 304,087,480 185,638,604 41,024,478 26,546,301
=======================================================================================================================
Net asset value, offering and redemption price per share
(net assets divided by shares outstanding) $1.00 $1.00 $1.00 $1.00
=======================================================================================================================
See accompanying notes to financial statements.
</TABLE>
25
<PAGE>
Statement of Operations
Year ended February 28, 1997
<TABLE>
<CAPTION>
Reserves
- --------------------------------------------------------------------------------
Investment Income
Tax-exempt interest income (note 1) $11,181,059
- --------------------------------------------------------------------------------
<S> <C>
Expenses
Management fees (note 4) 1,543,853
12b-1 expense (note 4) 141,601
Shareholders' servicing agent fees and expenses 459,638
Custodian's fees and expenses 95,010
Directors' fees and expenses (note 4) 5,661
Professional fees 56,561
Shareholders' reports -- printing and mailing expenses 112,921
Federal and state registration fees 40,661
Other expenses 25,832
- --------------------------------------------------------------------------------
Total expenses before expense reimbursement 2,481,738
Expense reimbursement from investment adviser (note 4) (165,912)
- --------------------------------------------------------------------------------
Net expenses 2,315,826
- --------------------------------------------------------------------------------
Net investment income 8,865,233
Net gain (loss) from investment transactions (notes 1 and 2) -
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 8,865,233
================================================================================
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
California Money Market
------------------------------------------------------------
Distribution
Service Plan Plan Institutional
series series series Total
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Investment Income
Tax-exempt interest income (note 1) $2,449,983 $2,251,066 $1,698,717 $6,399,766
- ------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 281,392 258,625 195,771 735,788
12b-1 expense (note 4) 86,592 61,766 -- 148,358
Shareholders' servicing agent fees and expenses 4,862 32,159 229 37,250
Custodian's fees and expenses 23,466 22,054 16,175 61,695
Directors' fees and expenses (note 4) 2,114 1,328 506 3,948
Professional fees 3,038 2,724 1,469 7,231
Shareholders' reports -- printing and mailing expenses 6,940 11,197 3,251 21,388
Federal and state registration fees 2,366 3,230 4,274 9,870
Other expenses 4,218 4,674 3,328 12,220
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 414,988 397,757 225,003 1,037,748
Expense reimbursement from investment adviser (note 4) (28,060) (42,073) -- (70,133)
- ------------------------------------------------------------------------------------------------------------------------------
Net expenses 386,928 355,684 225,003 967,615
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,063,055 1,895,382 1,473,714 5,432,151
Net gain (loss) from investment transactions (notes 1 and 2) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,063,055 $1,895,382 $1,473,714 $5,432,151
==============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
<TABLE>
<CAPTION>
Statement of Operations -- continued
Year ended February 28, 1997
Massachusetts Money Market
----------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
Tax-exempt interest income (note 1) $ 990,723 $ 913,895 $ 151,058 $2,055,676
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expenses
Management fees (note 4) 117,258 107,737 17,805 242,800
12b-1 expense (note 4) 36,759 25,412 - 62,171
Shareholders' servicing agent fees and expenses 1,287 34,571 774 36,632
Custodian's fees and expenses 29,751 28,528 4,729 63,008
Directors' fees and expenses (note 4) 1,507 1,621 276 3,404
Professional fees 8,722 9,968 1,690 20,380
Shareholders' reports -- printing and mailing expenses 16,218 31,343 156 47,717
Federal and state registration fees 2,273 978 1,125 4,376
Other expenses 2,614 2,485 415 5,514
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 216,389 242,643 26,970 486,002
Expense reimbursement from investment adviser (note 4) (55,049) (94,603) (2,481) (152,133)
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 161,340 148,040 24,489 333,869
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income 829,383 765,855 126,569 1,721,807
Net gain (loss) from investment transactions (notes 1 and 2) (134) (365) (53) (552)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 829,249 $ 765,490 $ 126,516 $1,721,255
===============================================================================================================================
See accompanying notes to financial statements.
====
28
</TABLE>
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
New York Money Market
-----------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
Tax-exempt interest income (note 1) $14,354 $ 975,592 $574 $ 990,520
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses
Management fees (note 4) 1,671 113,406 66 115,143
12b-1 expense 133 11,444 - 11,577
Shareholders' servicing agent fees and expenses 1,318 32,710 25 34,053
Custodian's fees and expenses 653 44,475 26 45,154
Directors' fees and expenses (note 4) 20 1,372 - 1,392
Professional fees 248 17,143 11 17,402
Shareholders' reports -- printing and mailing expenses 1,014 35,929 53 36,996
Federal and state registration fees 182 649 3 834
Other expenses 44 2,929 2 2,975
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses before expense reimbursement 5,283 260,057 186 265,526
Expense reimbursement from investment adviser (note 4) (2,985) (104,103) (95) (107,183)
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,298 155,954 91 158,343
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income 12,056 819,638 483 832,177
Net gain (loss) from investment transactions (notes 1 and 2) - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $12,056 $ 819,638 $483 $ 832,177
==================================================================================================================================
</TABLE>
====
29 See accompanying notes to financial statements.
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Reserves
------------------------------
Year ended Year ended
2/28/97 2/29/96
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income $ 8,865,233 $ 10,864,878
Net realized gain (loss) from investment transactions
(notes 1 and 2) -- --
- -----------------------------------------------------------------------------------------------
Net increase in net assets from operations 8,865,233 10,864,878
- -----------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (8,865,233) (10,864,878)
- -----------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 423,698,103 808,776,352
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 8,439,437 10,240,006
- -----------------------------------------------------------------------------------------------
432,137,540 819,016,358
- -----------------------------------------------------------------------------------------------
Cost of shares redeemed (467,712,524) (830,960,291)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (35,574,984) (11,943,933)
Net assets at the beginning of year 339,662,464 351,606,397
- -----------------------------------------------------------------------------------------------
Net assets at the end of year $ 304,087,480 $ 339,662,464
===============================================================================================
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
California Money Market
------------------------------------------------------------------
Year ended 2/28/97
------------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 2,063,055 $ 1,895,382 $ 1,473,714 $ 5,432,151
Net realized gain (loss) from investment transactions
(notes 1 and 2) - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 2,063,055 1,895,382 1,473,714 5,432,151
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (2,063,055) (1,895,382) (1,473,714) (5,432,151)
- -----------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 138,494,313 60,809,468 209,608,538 408,912,319
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 1,919,782 1,593,201 47,282 3,560,265
- -----------------------------------------------------------------------------------------------------------------------------------
140,414,095 62,402,669 209,655,820 412,472,584
- -----------------------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (115,829,598) (77,933,155) (211,205,458) (404,968,211)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions 24,584,497 (15,530,486) (1,549,638) 7,504,373
Net assets at the beginning of year 70,721,933 73,020,093 34,392,205 178,134,231
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 95,306,430 $ 57,489,607 $ 32,842,567 $ 185,638,604
===================================================================================================================================
California Money Market
------------------------------------------------------------------
Year ended 2/29/96
------------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- -----------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 1,933,448 $ 2,282,992 $ 1,255,971 $ 5,472,411
Net realized gain (loss) from investment transactions
(notes 1 and 2) - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
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 share 137,297,132 130,907,267 212,399,556 480,603,955
Net proceeds from 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 from 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.
31
<PAGE>
Statement of Changes in Net Assets -- continued
<TABLE>
<CAPTION>
Massachusetts Money Market
---------------------------------------------------------------
Year ended 2/28/97
---------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 829,383 $ 765,855 $ 126,569 $ 1,721,807
Net realized gain (loss) from investment transactions
(notes 1 and 2) (134) (365) (53) (552)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 829,249 765,490 126,516 1,721,255
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (829,249) (765,490) (126,516) (1,721,255)
- ---------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 44,456,256 21,736,601 12,606,653 78,799,510
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 897,029 748,887 37,305 1,683,221
- ---------------------------------------------------------------------------------------------------------------------------------
45,353,285 22,485,488 12,643,958 80,482,731
- ---------------------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (73,639,600) (21,681,856) (12,216,797) (107,538,253)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (28,286,315) 803,632 427,161 (27,055,522)
Net assets at the beginning of year 38,250,579 26,279,242 3,550,179 68,080,000
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 9,964,264 $ 27,082,874 $ 3,977,340 $ 41,024,478
=================================================================================================================================
Massachusetts Money Market
---------------------------------------------------------------
Year ended 2/29/96
---------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- ---------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 970,086 $ 770,798 $ 106,132 $ 1,847,016
Net realized gain (loss) from investment transactions
(notes 1 and 2) - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
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 proceeds from 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 from 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>
<TABLE>
<CAPTION>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
New York Money Market
---------------------------------------------------------------
Year ended 2/28/97
---------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Operations
Net investment income $ 12,056 $ 819,638 $ 483 $ 832,177
Net realized gain (loss) from investment transactions
(notes 1 and 2) - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 12,056 819,638 483 832,177
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders (note 1) (12,056) (819,638) (483) (832,177)
- ---------------------------------------------------------------------------------------------------------------------------------
Common Share Transactions
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 57,000 12,254,309 - 12,311,309
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 11,184 794,185 - 805,369
- ---------------------------------------------------------------------------------------------------------------------------------
68,184 13,048,494 - 13,116,678
- ---------------------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (208,572) (18,564,379) - (18,772,951)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (140,388) (5,515,885) - (5,656,273)
Net assets at the beginning of year 554,459 31,631,448 16,667 32,202,574
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 414,071 $ 26,115,563 $16,667 $ 26,546,301
=================================================================================================================================
New York Money Market
---------------------------------------------------------------
Year ended 2/29/96
---------------------------------------------------------------
Service Plan Distribution Plan Institutional
series series series Total
- ---------------------------------------------------------------------------------------------------------------------------------
Operations
Net investment income $ 16,065 $ 968,690 $ 533 $ 985,288
Net realized gain (loss) from investment transactions
(notes 1 and 2) - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
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 proceeds from shares issued to shareholders
due to reinvestment of distributions 13,053 942,307 - 955,360
- ---------------------------------------------------------------------------------------------------------------------------------
377,125 37,173,214 - 37,550,539
- ---------------------------------------------------------------------------------------------------------------------------------
Cost of shares redeemed (462,939) (35,339,438) - (35,802,377)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from share transactions (85,614) 1,833,776 - 1,748,162
Net assets at the beginning of year 640,073 29,797,672 16,667 30,454,412
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of year $ 554,459 $ 31,631,448 $16,667 $ 32,202,574
=================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
Notes to Financial Statements
1. General Information and Significant Accounting Policies
At February 28, 1997, 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.
Each Fund issues its own shares at net asset value, which the Fund will seek to
maintain at $1.00 per share, without a sales charge.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Investments in each of the Funds consist of short-term municipal securities
maturing within one year from the date of acquisition. Securities with a
maturity of more than one year in all cases have variable rate and demand
features qualifying them as short-term securities and are traded and valued at
amortized cost. On a dollar-weighted basis, the average maturity of all such
securities must be 90 days or less (at February 28, 1997, the dollar-weighted
average life was 33 days for Reserves, 22 days for California Money Market, 48
days for Massachusetts Money Market and 47 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 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
February 28, 1997, 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.
34
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
Dividends and Distributions to Shareholders
Tax-exempt 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 and to distribute to shareholders all of its tax-
exempt 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. All income dividends paid during the fiscal year ended February 28,
1997, have been designated Exempt Interest Dividends.
Insurance Commitments
The Funds have obtained commitments (each a "Commitment") from Municipal Bond
Investors Assurance Corporation ("MBIA") with respect to certain designated
bonds held by the Funds for which credit support is furnished by banks
("Approved Banks") approved by MBIA under its established credit approval
standards. Under the terms of a Commitment, if a Fund were to determine that
certain adverse circumstances relating to the financial condition of the
Approved Banks 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.
Derivative Financial Instruments
The Funds may invest 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 fiscal year ended February 28, 1997.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in net
assets from operations during the reporting period.
35
<PAGE>
Notes to Financial Statements -- continued
2. Securities Transactions
Purchases and sales (including maturities) of investment securities during the
fiscal year ended February 28, 1997, were as follows:
<TABLE>
<CAPTION>
Reserves CA MA NY
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $871,686,296 $403,699,606 $148,958,093 $41,915,309
Sales and Maturities 904,765,000 395,942,000 179,764,679 47,958,387
- -----------------------------------------------------------------------------
</TABLE>
At February 28, 1997, 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 February 28, 1997, the Funds had common stock authorized at $.01 par value
per share. The composition of net assets as well as the number of authorized
shares were as follows:
<TABLE>
<CAPTION>
Reserves CA MA NY
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in:
Service Plan series $ - $ 95,306,430 $ 9,964,264 $ 414,071
Distribution Plan series - 57,489,607 27,082,874 26,115,563
Institutional series - 842,567 3,977,340 16,667
- ----------------------------------------------------------------------------------------------------------
Net assets $ 304,087,480 $ 185,638,604 $ 41,024,478 $ 26,546,301
- ----------------------------------------------------------------------------------------------------------
Authorized shares 2,000,000,000 2,350,000,000 2,500,000,000 2,500,000,000
- ----------------------------------------------------------------------------------------------------------
</TABLE>
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 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 million .500 of 1% .400 of 1%
For the next $500 million .475 of 1 .375 of 1
For net assets over $1 billion .450 of 1 .350 of 1
- -----------------------------------------------------------------------------------
</TABLE>
Also, pursuant to a distribution agreement with the Funds, John Nuveen & Co.
Incorporated (the "Distributor"), a wholly owned subsidiary of the John Nuveen
Company, 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 the Distributor 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
36
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
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 is reduced by, or the Adviser assumes certain expenses of
each Fund, in an amount necessary to prevent the total expenses of each Fund
(including the management fee and each Fund's share of service payments under
the Distribution and Service Plans, but excluding interest, taxes, fees incurred
in acquiring and disposing of portfolio securities and, to the extent permitted,
extraordinary expenses) in any fiscal year from exceeding .75 of 1% of the
average daily net asset value of Reserves, and .55 of 1% of the average daily
net asset value of the California, Massachusetts and New York Money Market
Funds.
The management fee compensates the Adviser for overall investment advisory and
administrative services, and general office facilities. The Funds pay no
compensation directly to their Directors who are affiliated with the Adviser or
to their officers, all of whom receive remuneration for their services to the
Funds from the Adviser.
5. Investment Composition
Each Fund invests in municipal securities which include general obligation and
revenue bonds. At February 28, 1997, 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 30% 4% 11% 33%
Health Care Facilities 25 24 19 16
Educational Facilities 4 - 23 7
Housing Facilities 5 21 7 7
Water/Sewer Facilities 2 18 5 -
Lease Rental Facilities - 10 - -
Electric Utilities 4 7 - -
Transportation 2 - 5 -
Other 12 1 - 10
General Obligation Bonds 13 15 30 27
Escrowed Bonds 3 - - -
- -------------------------------------------------------------------------------
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 (94% for Reserves,
97% for California Money Market, 80% for Massachusetts Money Market and 84% for
New York Money Market) (see note 1).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
37
<PAGE>
Financial Highlights
39
<PAGE>
Financial Highlights
Selected data for a share outstanding throughout each period is as
follows.
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
------------------------- -------------------------
Net
Net realized and Dividends Net Total
asset unrealized from tax- asset return
value Net gain (loss) exempt net Distributions value on net
beginning investment from investment from capital end of asset
RESERVES of period income* investments income gains period value
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended,
2/28/97 $1.000 $.029 $ - $(.029) $ - $1.000 2.87%
2/29/96 1.000 .032 - (.032) - 1.000 3.23
2/28/95 1.000 .025 - (.025) - 1.000 2.46
2/28/94 1.000 .018 - (.018) - 1.000 1.84
2/28/93 1.000 .023 - (.023) - 1.000 2.34
5 months ended 2/29/92 1.000 .015 - (.015) - 1.000 1.45
Year ended,
9/30/91 1.000 .046 - (.046) - 1.000 4.57
9/30/90 1.000 .055 - (.055) - 1.000 5.45
9/30/89 1.000 .057 - (.057) - 1.000 5.70
9/30/88 1.000 .045 - (.045) - 1.000 4.52
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reflects the waiver of certain management fees and reimbursement
of certain other expenses by the Adviser, if applicable (see note
4 of the Notes to Financial Statements).
** Effective for the fiscal year ended June 30, 1991, and
thereafter, the Fund has presented the per share data by series.
*** Effective for the fiscal year ended April 30, 1991, and
thereafter, the Fund has presented the per share data by series.
+ Annualized.
++ Represents combined per share data and ratios for the Service
Plan, Distribution Plan and Institutional series.
40
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
Ratios/Supplemental Data
- --------------------------------------------------------------------
Ratio Ratio
of net of net
Ratio of investment Ratio of investment
expenses income to expenses income to
to average average to average average
net assets net assets net assets net assets
Net assets before before after after
end of period reimburse- reimburse- reimburse- reimburse-
(in thousands) ment ment ment* ment*
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
$304,087 .80% 2.82% .75% 2.87%
339,662 .79 3.18 .75 3.22
351,606 .78 2.40 .75 2.43
404,201 .80 1.78 .75 1.83
450,746 .74 2.35 .74 2.35
477,127 .75+ 3.48+ .75+ 3.48+
451,808 .72 4.56 .72 4.56
430,206 .73 5.45 .73 5.45
390,258 .72 5.69 .72 5.69
409,653 .73 4.52 .73 4.52
- --------------------------------------------------------------------
</TABLE>
41
<PAGE>
Financial Highlights -- continued
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
------------------------- ---------------------------
Net
Net realized and Dividends Net Total
asset unrealized from asset return
value Net gain (loss) tax-exempt Distributions value on net
beginning investment from investment from capital end of asset
CALIFORNIA** of period income* investments income gains period value
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended 2/28/97
Service Plan series $1.000 $.029 $ - $(.029) $ - $1.000 2.94%
Distribution Plan series 1.000 .029 - (.029) - 1.000 2.94
Institutional series 1.000 .030 - (.030) - 1.000 3.02
Year ended 2/29/96
Service Plan series 1.000 .033 - (.033) - 1.000 3.32
Distribution Plan series 1.000 .033 - (.033) - 1.000 3.31
Institutional series 1.000 .034 - (.034) - 1.000 3.40
Year ended 2/28/95
Service Plan series 1.000 .026 - (.026) - 1.000 2.59
Distribution Plan series 1.000 .026 - (.026) - 1.000 2.60
Institutional series 1.000 .027 - (.027) - 1.000 2.69
Year ended 2/28/94
Service Plan series 1.000 .019 - (.019) - 1.000 1.94
Distribution Plan series 1.000 .019 - (.019) - 1.000 1.92
Institutional series 1.000 .021 - (.021) - 1.000 2.07
Year ended 2/28/93
Service Plan series 1.000 .023 - (.023) - 1.000 2.28
Distribution Plan series 1.000 .023 - (.023) - 1.000 2.29
Institutional series 1.000 .024 - (.024) - 1.000 2.36
8 months ended 2/29/92
Service Plan series 1.000 .024 - (.024) - 1.000 2.39
Distribution Plan series 1.000 .024 - (.024) - 1.000 2.39
Institutional series 1.000 .025 - (.025) - 1.000 2.45
Year ended 6/30/91
Service Plan series 1.000 .047 - (.047) - 1.000 4.70
Distribution Plan series 1.000 .047 - (.047) - 1.000 4.70
Institutional series 1.000 .048 - (.048) - 1.000 4.80
Year ended,
6/30/90++ 1.000 .054 - (.054) - 1.000 5.37
6/30/89++ 1.000 .056 - (.056) - 1.000 5.62
6/30/88++ 1.000 .043 - (.043) - 1.000 4.28
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 40.
42
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
Ratios/Supplemental Data
- -------------------------------------------------------------------
Ratio Ratio
of net of net
Ratio of investment Ratio of investment
expenses income to expenses income to
to average average to average average
net assets net assets net assets net assets
Net assets before before after after
end of period reimburse- reimburse- reimburse- reimburse-
(in thousands) ment ment ment* ment*
- -------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 95,306 .59% 2.89% .55% 2.93%
57,490 .61 2.87 .55 2.93
32,843 .46 3.01 .46 3.01
70,722 .56 3.28 .54 3.30
73,020 .62 3.23 .55 3.30
34,392 .46 3.39 .46 3.39
41,772 .59 2.15 .55 2.19
67,157 .64 2.47 .55 2.56
50,772 .47 2.74 .47 2.74
415,238 .53 1.94 .53 1.94
72,380 .73 1.74 .55 1.92
32,299 .41 2.06 .41 2.06
469,812 .57 2.24 .55 2.26
80,652 .62 2.19 .55 2.26
24,156 .47 2.33 .47 2.33
478,886 .56+ 3.53+ .55+ 3.54+
91,670 .61+ 3.48+ .55+ 3.54+
18,334 .45+ 3.64+ .45+ 3.64+
431,590 .57 4.65 .55 4.67
90,031 .61 4.61 .55 4.67
22,342 .45 4.77 .45 4.77
452,465 .59 5.34 .55 5.38
362,927 .57 5.68 .55 5.70
207,897 .59 4.27 .55 4.31
- -------------------------------------------------------------------
</TABLE>
43
<PAGE>
Financial Highlights -- continued
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
----------------------------- -----------------------------
Net
Net realized and Dividends Net
asset unrealized from asset
value Net gain (loss) tax-exempt Distributions value
beginning investment from investment from capital end of
of period income* investments income gains period
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Year ended 2/28/97
Service Plan series $1.000 $.028 $ - $(.028) $ - $1.000
Distribution Plan series 1.000 .028 - (.028) - 1.000
Institutional series 1.000 .028 - (.028) - 1.000
Year ended 2/29/96
Service Plan series 1.000 .032 - (.032) - 1.000
Distribution Plan series 1.000 .032 - (.032) - 1.000
Institutional series 1.000 .032 - (.032) - 1.000
Year ended 2/28/95
Service Plan series 1.000 .025 - (.025) - 1.000
Distribution Plan series 1.000 .025 - (.025) - 1.000
Institutional series 1.000 .026 - (.026) - 1.000
Year ended 2/28/94
Service Plan series 1.000 .018 - (.018) - 1.000
Distribution Plan series 1.000 .017 - (.017) - 1.000
Institutional series 1.000 .018 - (.018) - 1.000
Year ended 2/28/93
Service Plan series 1.000 .023 - (.023) - 1.000
Distribution Plan series 1.000 .023 - (.023) - 1.000
Institutional series 1.000 .023 - (.023) - 1.000
Year ended 2/29/92
Service Plan series 1.000 .032 - (.032) - 1.000
Distribution Plan series 1.000 .032 - (.032) - 1.000
Institutional series 1.000 .032 - (.032) - 1.000
Year ended 4/30/91
Service Plan series 1.000 .053 - (.053) - 1.000
Distribution Plan series 1.000 .053 - (.053) - 1.000
Institutional series 1.000 .053 - (.053) - 1.000
Year ended,
4/30/90++ 1.000 .057 - (.057) - 1.000
4/30/89++ 1.000 .050 - (.050) - 1.000
4/30/88++ 1.000 .043 - (.043) - 1.000
</TABLE>
<TABLE>
<CAPTION>
Total
return
on net
asset
MASSACHUSETTS**** value
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Year ended 2/28/97
Service Plan series 2.84%
Distribution Plan series 2.84
Institutional series 2.84
Year ended 2/29/96
Service Plan series 3.17
Distribution Plan series 3.17
Institutional series 3.18
Year ended 2/28/95
Service Plan series 2.53
Distribution Plan series 2.53
Institutional series 2.61
Year ended 2/28/94
Service Plan series 1.77
Distribution Plan series 1.74
Institutional series 1.80
Year ended 2/28/93
Service Plan series 2.33
Distribution Plan series 2.33
Institutional series 2.34
Year ended 2/29/92
Service Plan series 3.22
Distribution Plan series 3.22
Institutional series 3.24
Year ended 4/30/91
Service Plan series 5.30
Distribution Plan series 5.30
Institutional series 5.30
Year ended,
4/30/90++ 5.70
4/30/89++ 5.00
4/30/88++ 4.29
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 40
44
<PAGE>
<TABLE>
<CAPTION>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------
Ratio Ratio
of net of net
Ratio of investment Ratio of investment
expenses income to expenses income to
to average average to average average
net assets net assets net assets net assets
Net assets before before before before
end of period reimburse- reimburse- reimburse- reimburse-
(in thousands) ment ment ment* ment*
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 9,964 .74% 2.64% .55% 2.83%
27,083 .90 2.49 .55 2.84
3,977 .61 2.78 .55 2.84
38,251 .63 3.06 .55 3.14
26,279 .84 2.87 .55 3.16
3,550 .57 3.12 .54 3.15
27,732 .61 2.49 .55 2.55
24,237 .82 2.28 .55 2.55
1,036 .47 2.63 .47 2.63
38,576 .55 1.88 .52 1.91
27,773 .76 1.67 .55 1.88
3,406 .49 1.93 .49 1.93
40,214 .73 2.16 .55 2.34
27,993 .82 2.07 .55 2.34
5,325 .58 2.31 .55 2.34
61,476 .62+ 3.73+ .55+ 3.80+
34,509 .72+ 3.63+ .55+ 3.80+
8,917 .53 3.82+ .53+ 3.82+
37,979 .68 5.12 .55 5.25
33,809 .76 5.04 .55 5.25
14,973 .54 5.26 .54 5.26
53,631 .74 5.48 .55 5.67
31,319 .76 4.97 .55 5.18
35,614 .75 4.03 .48 4.30
- ----------------------------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
Financial Highlights -- continued
<TABLE>
<CAPTION>
Income from
Investment Operations Less Distributions
-------------------------- ---------------------------
Net
Net realized and Dividends Net Total
asset unrealized from asset return
value Net gain (loss) tax-exempt Distributions value on net
beginning investment from investment from capital end of asset
NEW YORK*** of period income* investments income gains period value
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Year ended 2/28/97
Service Plan series $1.000 $.029 $ - $(.029) $ - $1.000 2.90%
Distribution Plan series 1.000 .029 - (.029) - 1.000 2.90
Institutional series 1.000 .029 - (.029) - 1.000 2.90
Year ended 2/29/96
Service Plan series 1.000 .032 - (.032) - 1.000 3.20
Distribution Plan series 1.000 .032 - (.032) - 1.000 3.20
Institutional series 1.000 .032 - (.032) - 1.000 3.20
Year ended 2/28/95
Service Plan series 1.000 .024 - (.024) - 1.000 2.36
Distribution Plan series 1.000 .024 - (.024) - 1.000 2.37
Institutional series 1.000 .023 - (.023) - 1.000 2.28
Year ended 2/28/94
Service Plan series 1.000 .015 - (.015) - 1.000 1.51
Distribution Plan series 1.000 .015 - (.015) - 1.000 1.51
Institutional series 1.000 .015 - (.015) - 1.000 1.51
Year ended 2/28/93
Service Plan series 1.000 .020 - (.020) - 1.000 2.02
Distribution Plan series 1.000 .020 - (.020) - 1.000 2.02
Institutional series 1.000 .020 - (.020) - 1.000 2.02
10 months ended 2/29/92
Service Plan series 1.000 .029 - (.029) - 1.000 2.94
Distribution Plan series 1.000 .029 - (.029) - 1.000 2.94
Institutional series 1.000 .030 - (.030) - 1.000 2.97
Year ended 4/30/91
Service Plan series 1.000 .047 - (.047) - 1.000 4.73
Distribution Plan series 1.000 .047 - (.047) - 1.000 4.73
Institutional series 1.000 .047 - (.047) - 1.000 4.73
Year ended,
4/30/90++ 1.000 .054 - (.054) - 1.000 5.36
4/30/89++ 1.000 .050 - (.050) - 1.000 4.95
4/30/88++ 1.000 .041 - (.041) - 1.000 4.10
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 40.
46
<PAGE>
Nuveen Municipal Money Market Funds
February 28, 1997 Annual Report
<TABLE>
<CAPTION>
Ratios/Supplemental Data
-------------------------------------------------------------------------------------
Ratio of net Ratio of net
Ratio of investment Ratio of investment
expenses to income to expenses to income to
Net assets average net average net average net average net
end of period assets before assets before assets after assets after
NEW YORK*** (in thousands) reimbursement reimbursement reimbursement* reimbursement*
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Year ended 2/28/97
Service Plan series $ 414 1.27% 2.17% .55% 2.89%
Distribution Plan series 26,116 .92 2.52 .55 2.89
Institutional series 17 1.12 2.33 .55 2.90
Year ended 2/29/96
Service Plan series 554 1.92 1.82 .55 3.19
Distribution Plan series 31,631 .94 2.80 .55 3.19
Institutional series 17 1.38 2.37 .55 3.20
Year ended 2/28/95
Service Plan series 640 .95 1.98 .55 2.38
Distribution Plan series 29,798 .79 2.14 .55 2.38
Institutional series 17 2.14 .79 .55 2.38
Year ended 2/28/94
Service Plan series 557 1.49 .69 .55 1.63
Distribution Plan series 27,886 .78 1.40 .55 1.63
Institutional series 17 4.60 (2.42) .55 1.63
Year ended 2/28/93
Service Plan series 529 1.17 1.42 .55 2.04
Distribution Plan series 34,827 .78 1.81 .55 2.04
Institutional series 17 19.33 (16.59) .55 2.19
10 months ended 2/29/92
Service Plan series 1,934 .87+ 3.19+ .55+ 3.51+
Distribution Plan series 45,259 .71+ 3.35+ .55+ 3.51+
Institutional series 17 11.89+ (7.83)+ .55+ 3.51+
Year ended 4/30/91
Service Plan series 1,653 .88 4.39 .55 4.72
Distribution Plan series 41,446 .69 4.58 .55 4.72
Institutional series 17 .62 4.65 .55 4.72
Year ended,
4/30/90++ 41,602 .71 5.18 .55 5.34
4/30/89++ 30,262 .86 4.74 .55 5.05
4/30/88++ 17,016 1.03 3.54 .50 4.07
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
47
<PAGE>
Report of Independent Public Accountants
To the Board of Directors and Shareholders of
Nuveen Tax-Free Reserves, Inc.
Nuveen California Tax-Free Fund, Inc.
Nuveen Tax-Free Money Market Fund, Inc.:
We have audited the accompanying statements of net assets of Nuveen Tax-Free
Reserves, Inc. (a Maryland Corporation), Nuveen California Tax-Free Fund, Inc.
(comprising the Nuveen California Tax-Free Money Market Fund) (a Maryland
Corporation) and Nuveen Tax-Free Money Market Fund, Inc. (comprising the Nuveen
Massachusetts and New York Tax-Free Money Market Funds) (a Minnesota
Corporation), including the portfolios of investments, as of February 28, 1997,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended and
the financial highlights for the periods indicated thereon. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1997, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the net assets of each of the
respective funds constituting Nuveen Tax-Free Reserves, Inc., Nuveen California
Tax-Free Fund, Inc. and Nuveen Tax-Free Money Market Fund, Inc. as of February
28, 1997, the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended, and the
financial highlights for the periods indicated thereon in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois
April 11, 1997
48
<PAGE>
Nuveen California Tax-Free Money Market Fund
February 28, 1997 Annual Report
California
Shareholder Meeting Report
On February 28, 1997, the Nuveen California Tax-Free
Money Market Fund held a Special Meeting of
Shareholders. At that meeting, shareholders approved
the following matters:
<TABLE>
<CAPTION>
Service Distribution Institutional
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Election of the Fund's
Board of Directors
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(A) Bremner For 61,177,310 19,108,011 45,291,091
Withhold 760 113,460 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(B) Brown For 61,177,310 19,108,440 45,291,091
Withhold 760 113,031 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(C) Dean For 61,177,310 19,108,440 45,291,091
Withhold 760 113,031 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(D) Impellizzeri For 61,177,310 19,076,491 45,291,091
Withhold 760 144,980 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(E) Rosenheim For 61,177,310 19,076,919 45,291,091
Withhold 760 144,552 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(F) Sawers For 61,177,310 19,108,440 45,291,091
Withhold 760 113,031 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(G) Schneider For 61,177,310 19,108,011 45,291,091
Withhold 760 113,460 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
(H) Schwertfeger For 61,177,310 19,108,440 45,291,091
Withhold 760 113,031 40,798
-------------------------------------------------------
Total 61,178,070 19,221,471 45,331,889
- --------------------------------------------------------------------------------
</TABLE>
49
<PAGE>
Shareholder Information
Nuveen Family of Mutual Funds
Nuveen offers a variety of funds designed to help you reach your financial
goals. The funds below are grouped by investment objectives.
Growth and Income Funds
Growth and Income Stock Fund
Balanced Stock and Bond Fund
Balanced Municipal and Stock Fund
Municipal Bond Funds
National Funds/1/
State Funds
Alabama Michigan
Arizona Missouri
California/2/ New Jersey/3/
Colorado New Mexico
Connecticut New York/2/
Florida/3/ North Carolina
Georgia Ohio
Kansas Pennsylvania
Kentucky/4/ South Carolina
Louisiana Tennessee
Maryland Virginia
Massachusetts/2/ Wisconsin
1. Long-term, insured long-term, intermediate-term and limited-term portfolios.
2. Long-term and insured long-term portfolios.
3. Long-term and intermediate-term portfolios.
4. Long-term and limited-term portfolios.
To purchase additional shares of your Nuveen Money Market Fund, contact your
financial adviser. If you would like to add to your current investment on a
monthly or semi-annual basis, you can sign up for Nuveen's systematic investing
program, which allows you to invest a fixed dollar amount every month
automatically.
You can also invest automatically through dividend reinvestment. By reinvesting
your fund's dividends back into the fund, you give your investment the added
growth potential of long-term compounding.
For more information on the service options listed above, call your adviser, or
Nuveen at (800) 621-7227.
50
<PAGE>
Fund Information
Board of Directors
Robert P. Bremner
Lawrence H. Brown
Anthony T. Dean
Anne E. Impellizzeri
Margaret K. Rosenheim
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Fund Manager
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
Custodian
The Chase Manhattan Bank
4 New York Plaza
New York, NY 10004-2413
Transfer Agent, Shareholder Services and Dividend Disbursing Agent
Shareholder Services, Inc.
Nuveen Investor Services
P.O. Box 5330
Denver, CO 80217-5330
(800) 621-7227
Legal Counsel
Fried, Frank, Harris, Shriver
& Jacobsen
Washington, D.C.
Public Accountants
Arthur Andersen LLP
Chicago, Illinois
51
<PAGE>
Serving Investors
for Generations
[PHOTO OF JOHN NUVEEN, SR. APPEARS HERE]
Since our founding in 1898, John Nuveen & Co. has been synonymous with
investments that withstand the test of time. Today, we offer a broad range of
investments designed for mature investors whose portfolios are the principal
source of their ongoing financial security. More than 1.3 million investors have
entrusted Nuveen to help them maintain the lifestyle they currently enjoy.
A value investing approach -- purchasing securities of strong companies and
communities that represent good long-term value -- is the cornerstone of
Nuveen's investment philosophy. It is a careful, long-term strategy that offers
the potential for attractive returns with moderated risk. Successful value
investing begins with in-depth research and a discerning eye for marketplace
opportunity. Nuveen's team of investment professionals is backed by the
discipline, resources and expertise of almost a century of investment
experience, including one of the most recognized research departments in the
industry.
To meet the unique circumstances and financial planning needs of mature
investors, Nuveen offers a wide array of taxable and tax-free investment
products -- including equity and fixed-income mutual funds, unit trusts,
exchange-traded funds, individual managed account services, and cash management
products.
To find out more about how Nuveen investment products and services can help you
preserve your financial security, talk with your financial adviser, or call us
at (800) 621-7227 for more information, including a prospectus where applicable.
Please read that information carefully before you invest.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, IL 60606-1286
(800) 621-7227
MAN-1-4.97
