<PAGE>
[NUVEEN LOGO APPEARS HERE]
Nuveen Tax-Free
Mutual Funds
Dependable tax-free
income for generations
MUNICIPAL BOND FUND, INC.
INSURED MUNICIPAL BOND FUND
[PHOTO OF COUPLE APPEARS HERE]
ANNUAL REPORT/FEBRUARY 28, 1995
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
11 Portfolio of investments
37 Statement of net assets
38 Statement of operations
39 Statement of changes in net assets
40 Notes to financial statements
50 Financial highlights
52 Report of independent public accountants
<PAGE>
Dear
shareholder
[PHOTO OF RICHARD J. FRANKE APPEARS HERE]
"Providing secure income remains our top priority"
The 12 months ended February 28, 1995, were one of the most difficult periods
the bond markets have experienced in decades. The Federal Reserve Board raised
interest rates seven times since the beginning of 1994 to fend off future
inflation. As a result, the prices of all bonds and bond funds declined.
The unusually high volatility of the past year has brought home a basic fact
about bonds: interest rates are subject to change, and sometimes the changes can
have marked effects on net asset values of bonds and bond funds.
At Nuveen, we believe that the best approach to tax-free investing in such
tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives relatively well, providing
an attractive level of tax-free income while holding portfolio values in line
with or better than the market as a whole.
Looking first at income, at fiscal year end the current yield on offering
price for the Nuveen Municipal Bond Fund was 5.21% and the yield on offering
price for the Nuveen Insured Municipal Bond Fund was 5.66%. To equal these
yields, an investor in the 36% federal income tax bracket would need to earn at
least 8.14% and 8.84%, respectively, on taxable alternatives. This yield is
difficult to achieve on taxable investments of comparable credit quality.
3
<PAGE>
Your Fund also maintained its value relatively well during the past year.
While the net asset value of the Municipal Bond Fund declined 3.02% and the
Class R shares of the Insured Municipal Bond Fund declined 3.98%, the Bond Buyer
40 index--a measure of the value of newly issued municipal bonds--declined by
even more, slipping 8.5% over the past 12 months. And 30-year Treasury bonds
declined by 10.0% during the year.
In this context, we believe that your Fund met the demands of the past year's
market well. And when we take a long-range view of the municipal market, we
believe the outlook for your Fund is positively supported by several
considerations.
First, from November of 1994 through February of 1995, municipal bond yields
declined by nearly a full percent and bond prices started to gain ground. This
development suggests that the underlying inflationary pressures that drove
interest rates higher and bond prices lower may be moderating.
Second, and as we have noted in past reports, the municipal market's supply
and demand fundamentals continue to be sound. To put these trends in
perspective, in 1994, the supply of new municipal bonds declined by
approximately 40% from 1993; and market projections for new issue volume in 1995
are down over 20% from last year's already low level.
Once investors perceive that the interest rate environment has stabilized,
demand for municipal investments, which has been subdued over the last 12 months
as a result of the market's extraordinary volatility, should resume its long-
term upward trend. This combination of lower supply, which may be reduced
further by the high volume of bond calls expected in 1995, and the likelihood of
rising demand should help support municipal bond prices in the long term.
At Nuveen we are taking steps to increase the value our funds provide to
shareholders-steps reflected in last year's introduction of two new share
classes with different sales charge structures and service fees for the Insured
Municipal Bond Fund. These new share classes, designated A Shares and C Shares,
give you and your investment adviser added flexibility in designing a tax-free
investment program that meets your requirements. In addition, these classes also
encourage fund growth, which offsets redemptions and protects portfolio
integrity.
We appreciate your trust in our family of funds, and we look forward to
helping you meet your tax-free investment objectives in the future.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
April 17, 1995
4
<PAGE>
ANSWERING YOUR QUESTIONS
We spoke recently with Tom Spalding, head of Nuveen's portfolio management team,
and asked him about developments in the municipal market and the outlook for
Nuveen's Tax-Free Mutual Funds.
Why did my Fund's net asset value decline over the past year?
The past 12 months have been a difficult period for all fixed-income investors.
The Federal Reserve raised interest rates seven times from February 1994 through
February 1995, and its actions drove the prices of all bonds and bond funds
lower. Of course, changing interest rates are a fact of life for fixed-income
investments. The important point is that shareholders in these funds were less
affected by rising interest rates than the market overall. In fact, the net
asset values of the funds covered in this report declined less than 4.0% while
the municipal market overall, as measured by the Bond Buyer 40 index, was down
8.5% and as measured by the Lehman Brothers Municipal Bond index, was off 3.97%.
The Bond Buyer 40 index reflects price movements of newly issued long-term
municipal bonds,
5
<PAGE>
[PHOTO OF TOM SPALDING APPEARS HERE]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
What steps did you take to moderate the impact of rising interest rates on the
value of the funds' portfolios?
while the Lehman Brothers Municipal Bond index reflects the broader municipal
market.
This is one result of our conservative, value-oriented approach to investing;
our funds tend to hold their value better than the market as a whole when
interest rates are rising.
As value investors, we don't manage our portfolios to any specific interest rate
environment. We feel that it's impossible to predict changes in the economy or
interest rates with any degree of accuracy, and we don't try. Instead, we try to
buy bonds that will perform well in any interest rate environment, focusing
closely on relative values in the market.
Because of that approach, we didn't need to make major changes in our
portfolios as interest rates rose. For a number of technical reasons, above all
the compression of yields between higher-rated and lower-rated issues that had
been taking place for some time-the best values, in our view, were to be found
in conservative bonds. For some time, we had been concentrating on higher-rated
bonds with maturities in the 15-to-20 year range, as well as bonds priced at
premiums to their par values and pre-refunded issues. We also benefited from an
increase in assets in many of our funds, driven by
6
<PAGE>
A record amount of municipal bonds were called in 1993-1994. How did these bond
calls affect my income and the net asset value of my shares?
both higher demand for tax-free investments and Nuveen's UIT reinvestment
programs. As a result, we weren't under pressure to sell into difficult markets
to meet redemptions.
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher need to be replaced with today's lower-yielding bonds.
On the other hand, the fact that your fund's portfolio contained callable
bonds provided an important NAV benefit. Callable bonds with higher-than-market
coupons are priced at premiums to their par value or call price. Callable, high-
coupon long-term bonds, sometimes called "cushion bonds", tend to experience the
lower price volatility of intermediate-term or even shorter-term bonds when
rates are low but rising, as was the case in early 1994. As we saw last year,
the premium coupons of these bonds essentially act as a "cushion" that softens
the effect of rising interest rates.
Of course, we manage all of our portfolios with calls in mind. As part of our
basic management process we continually evaluate opportunities to sell bonds
approaching their call dates and to reinvest the proceeds in bonds we think have
high potential to provide above-market returns.
7
<PAGE>
A number of fund managers have encountered problems recently related to the use
of derivative securities. Do you use derivatives in your portfolios?
Over the last year, participants in the financial services industry, including
securities dealers, underwriters and investment advisers, received much
attention in the press relating to the use of certain types of derivative
financial instruments in the management of portfolios, including those of mutual
funds. There are many different types of derivative investments available in the
market today, including those derivatives whose market values respond to
interest rate changes with greater volatility than do others. In general,
derivatives used to speculate on the future course of interest rates pose the
greatest risk, while derivatives used for hedging purposes present less risk
and, if used properly, can often reduce risk. Synthetic money market securities
generally present no greater risk to investors than ordinary money market
securities.
Although Nuveen Insured Municipal Bond Fund, and to a lesser extent Nuveen
Municipal Bond Fund, 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, 1995, other than occasional purchases of high
quality synthetic money market securities, which were held temporarily pending
the investment in long-term portfolio securities.
8
<PAGE>
NUVEEN MUNICIPAL BOND FUND, INC.
Muni Bond
INDEX COMPARISON
Nuveen Municipal Bond Fund and Lehman Brothers Municipal Bond Index Comparison
of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN MUNICIPAL BOND FUND
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
Measurement Period NUVEEN MUNICIPAL LEHMAN BROTHERS
(Fiscal Year Covered) BOND FUND MUNICIPAL BOND INDEX
- ------------------- ---------------- --------------------
<S> <C> <C>
Measurement Pt-
2/85 $ 9,525 $10,000
FYE 8/85 $10,521 $10,877
FYE 2/86 $12,210 $12,813
FYE 8/86 $12,848 $13,390
FYE 2/87 $13,683 $14,375
FYE 8/87 $13,262 $14,010
FYE 2/88 $14,142 $14,752
FYE 8/88 $14,361 $14,973
FYE 2/89 $15,196 $15,667
FYE 8/89 $16,139 $16,615
FYE 2/90 $16,635 $17,273
FYE 8/90 $17,034 $17,681
FYE 2/91 $18,045 $18,865
FYE 8/91 $18,939 $19,767
FYE 2/92 $19,828 $20,750
FYE 8/92 $20,867 $21,974
FYE 2/93 $22,017 $23,606
FYE 8/93 $22,797 $24,654
FYE 2/94 $23,072 $24,911
FYE 8/94 $23,038 $24,690
FYE 2/95 $23,902 $25,381
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $25,381
==== Nuveen Municipal Bond Fund -- Total $23,902
($25,094 at NAV)
Past performance is not predictive of future performance
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.20 cents to 4.30 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 51.10 cents per share.
As yield differentials between higher- and lower-rated bond and longer- and
shorter- maturities narrowed, the Fund's manager focused attention on higher-
quality bonds with maturities in the 15-to-20 year range, as well as on pre-
refunded bonds.
The Fund continues, in our view, to offer a relatively low-risk vehicle for
investing in longer-term tax-free securities.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year 5 year 10 year
- -----------------------------------------------------------------
<S> <C> <C> <C>
Offering price* -1.32% 6.48% 9.11%
NAV 3.60% 7.52% 9.64%
- -----------------------------------------------------------------
</TABLE>
* Maximum public offering price, which includes sales charges, which are reduced
for purchases over $100,000 and waived for reinvestment of dividends.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the maximum initial sales
charge (4.75%) and all ongoing fund expenses.
9
<PAGE>
NUVEEN INSURED
TAX-FREE BOND FUND, INC.
Insured Muni Bond
INDEX COMPARISON
Nuveen Insured Tax-Free Bond Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN INSURED TAX-FREE BOND FUND R SHARES*
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
Measurement Period NUVEEN INSURED LEHMAN BROTHERS
(Fiscal Year Covered) TAX-FREE BOND FUND R MUNICIPAL BOND INDEX
- ------------------- -------------------- --------------------
<S> <C> <C>
Measurement Pt-
11/86 $ 9,525 $10,000
FYE 2/87 $ 9,840 $10,322
FYE 8/87 $ 9,375 $10,060
FYE 2/88 $10,037 $10,593
FYE 8/88 $10,163 $10,751
FYE 2/89 $10,803 $11,250
FYE 8/89 $11,467 $11,931
FYE 2/90 $11,853 $12,403
FYE 8/90 $12,055 $12,696
FYE 2/91 $12,913 $13,546
FYE 8/91 $13,603 $14,194
FYE 2/92 $14,337 $14,900
FYE 8/92 $15,237 $15,779
FYE 2/93 $16,523 $16,951
FYE 8/93 $17,346 $17,703
FYE 2/94 $17,426 $17,888
FYE 8/94 $17,077 $17,729
FYE 2/95 $17,748 $18,225
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $18,225
==== Nuveen Insured Municipal Bond Fund -- Total $17,748
($18,633 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- ----------------------------------------------------------------------
1 year 5 year Since Inception
- ----------------------------------------------------------------------
<S> <C> <C> <C>
R shares on NAV 1.85% 8.41% 7.84%
A shares on NAV 3.84%+
A shares on offering price** -0.83%+
C shares on NAV 3.09%+
- ----------------------------------------------------------------------
</TABLE>
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.75 cents to 4.80 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 57.95 cents per share.
As interest rates rose and yield differentials between bonds of different
quality ratings and maturities continued to compress, the Fund's manager focused
on higher-quality bonds with maturities in the 15-to-20 year range.
Late in the period, as the yield differential widened, general obligation
bonds were emphasized.
Given the relative safety and marketability of insured bonds, the Fund was
invested in bonds with somewhat longer maturities and durations to enhance
overall portfolio yield.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
10
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ALASKA - 1.7%
Alaska Housing Finance
Corporation, Insured
Mortgage Program:
$ 4,265,000 6.375%, 12/01/07 6/95 at 101 Aa $ 4,299,291
3,290,000 7.650%, 12/01/10 12/00 at 102 Aa 3,476,181
10,885,000 7.800%, 12/01/30 12/00 at 102 Aa 11,444,162
Alaska State Housing
Finance Corporation:
3,675,000 6.375%, 12/01/12 12/02 at 102 Aa 3,977,122
22,250,000 6.600%, 12/01/23 12/02 at 102 Aa 23,617,930
- ------------------------------------------------------------------------------------
ARIZONA - 2.1%
Salt River Project,
Agricultural
Improvement
and Power District:
5,000,000 4.900%, 1/01/08 1/04 at 102 AA 4,596,050
9,145,000 5.000%, 1/01/10 7/95 at 100 AA 8,358,896
26,200,000 4.750%, 1/01/17 1/04 at 102 AA 21,849,490
20,350,000 5.500%, 1/01/28 1/02 at 100 AA 18,438,525
4,570,000 Scottsdale Industrial
Development Authority
(Scottsdale Memorial
Hospital), 8.500%,
9/01/07 9/97 at 102 Aaa 5,016,580
- ------------------------------------------------------------------------------------
ARKANSAS - 0.4%
11,210,000 Jefferson County
Hospital, 6.000%,
7/01/06 7/03 at 102 N/R 11,010,238
- ------------------------------------------------------------------------------------
CALIFORNIA - 12.2%
California Department of
Water Resources
(Central Valley
Project):
15,515,000 5.700%, 12/01/16 6/03 at 101 1/2 AA 14,771,056
8,500,000 5.750%, 12/01/19 6/03 at 101 1/2 AA 8,111,040
12,250,000 5.500%, 12/01/23 12/03 at 101 1/2 AA 11,219,163
20,000,000 4.875%, 12/01/27 12/03 at 101 AA 16,044,000
13,025,000 California Health
Facilities Financing
Authority (Catholic
Healthcare West),
5.000%, 7/01/14 7/04 at 102 Aaa 11,517,747
27,600,000 California Health
Facilities Financing
Authority (Daughters of
Charity), 9.250%,
3/01/15 3/96 at 102 Aa 29,213,772
12,000,000 California State Public
Works Board, Department
of Corrections
(California State
Prison, Monterey
County), 7.000%,
11/01/19 11/04 at 102 A- 12,544,080
32,795,000 California Statewide
Communities Development
Authority (St. Joseph
Health System),
5.500%, 7/01/23 7/03 at 102 AA 28,607,734
9,000,000 East Bay Municipal
Utility District,
5.000%, 6/01/21 6/03 at 102 Aaa 7,679,880
Los Angeles Department
of Water and Power:
15,825,000 6.500%, 4/15/32 4/02 at 102 AA 16,073,453
13,100,000 6.125%, 1/15/33 1/03 at 102 AA 12,862,235
</TABLE>
11
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
Los Angeles Wastewater
System:
$ 7,000,000 5.700%, 6/01/20 6/03 at 102 Aaa $ 6,649,440
21,000,000 5.700%, 6/01/23 6/03 at 102 Aaa 19,899,600
Los Angeles County
Metropolitan Transit
Authority: 5.500%,
10,000,000 7/01/13 7/03 at 102 AA- 9,228,100
13,435,000 4.750%, 7/01/18 7/03 at 102 Aaa 11,104,834
19,500,000 Los Angeles County
Sanitation District
Financing Authority,
5.000%, 10/01/23 10/03 at 100 AA 16,270,020
25,000,000 Los Angeles County
Transportation
Commission,
6.750%, 7/01/19 (Pre-
refunded to 7/01/02) 7/02 at 102 Aaa 27,713,000
Southern California
Metropolitan Water
District:
4,670,000 5.500%, 1/01/10 7/95 at 101 1/2 AA+ 4,563,197
5,000,000 5.500%, 7/01/19 7/02 at 102 AA 4,597,950
12,750,000 Modesto Irrigation
District (Geysers
Geothermal Power
Project), Certificates
of Participation,
7.250%, 10/01/15 10/96 at 102 A1 13,180,185
22,725,000 Northern California
Power Agency,
7.150%, 7/01/24 7/98 at 102 A- 23,330,621
12,600,000 Sacramento Sanitation
District Finance
Authority,
4.750%, 12/01/23 12/03 at 102 AA 9,936,108
2,179,452 San Diego County
(Contel), Certificates
of Participation,
7.500%, 2/08/96 No Opt. Call N/R 2,221,341
7,600,000 Santa Clara County
(Capital Project No.
1), Certificates of
Participation,
8.000%, 10/01/06 (Pre-
refunded to 10/01/96) 10/96 at 102 AAA 8,122,120
8,050,000 University of
California,
6.875%, 9/01/16 (Pre-
refunded to 9/01/02) 9/02 at 102 A- 8,999,498
- -----------------------------------------------------------------------------------
COLORADO - 2.1%
31,750,000 Colorado Housing Finance
Authority,
7.250%, 11/01/31 11/01 at 102 AA- 32,901,573
City and County of
Denver Airport System:
12,075,000 8.375%, 8/01/11 4/95 at 101 Con(Baa) 12,227,024
7,090,000 9.250%, 8/01/20 4/95 at 102 Con(Baa) 7,257,608
4,250,000 7.250%, 11/15/25 11/02 at 102 Baa 4,335,298
- -----------------------------------------------------------------------------------
CONNECTICUT - 0.5%
9,820,000 Connecticut Housing
Finance Authority,
7.550%, 11/15/08 11/00 at 102 AA 10,424,126
2,970,000 Connecticut Resources
Recovery Authority,
8.625%, 1/01/04 1/96 at 102 A 3,105,194
</TABLE>
12
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA -
0.3%
$ 7,635,000 CHT Housing, Inc., FHA-
Insured,
8.500%, 1/01/22 7/95 at 103 N/R $ 7,917,571
- ------------------------------------------------------------------------------------
FLORIDA - 4.6%
4,500,000 Dade County Health
Facilities Authority
(Mt. Sinai Medical
Center),
8.400%, 12/01/07 (Pre-
refunded to 12/01/99) 12/99 at 102 Aaa 4,999,725
31,000,000 Hillsborough County
Industrial Development
Authority, Pollution
Control (Tampa
Electric), 8.000%,
5/01/22 5/02 at 103 Aa2 35,490,660
9,500,000 Jacksonville Electric
Authority, 7.375%,
10/01/13 (Pre-refunded
to 10/01/95) 10/95 at 101 1/2 Aaa 9,785,665
8,150,000 Jacksonville Electric
Authority (St. John's
River Power Park
System), 6.500%,
10/01/20 10/95 at 100 Aa1 8,196,700
26,950,000 North Broward Hospital
District, 8.000%,
1/01/14 (Pre-refunded
to 1/01/96) 1/96 at 103 AAA 28,475,640
Orlando Utilities
Commission:
22,700,000 8.500%, 10/01/09 (Pre-
refunded to 10/01/95) 10/95 at 102 Aaa 23,649,768
6,500,000 5.000%, 10/01/23 10/99 at 100 AA- 5,545,540
8,005,000 Pensacola Health
Facilities Authority
(Daughters of Charity),
7.750%, 1/01/03 (Pre-
refunded to 1/01/98) 1/98 at 101 1/2 Aaa 8,702,716
Sarasota Elderly Housing
Corporation:
30,000 7.500%, 7/01/95 No Opt. Call A 30,207
1,520,000 7.500%, 7/01/09 7/95 at 104 A 1,581,378
- ------------------------------------------------------------------------------------
GEORGIA - 0.3%
2,975,000 Appling County
Development Authority,
Pollution Control
(Georgia Power
Company),
10.600%, 10/01/15 10/95 at 102 A3 3,126,190
4,000,000 Burke County Development
Authority, Pollution
Control (Georgia Power
Company),
10.125%, 6/01/15 6/95 at 102 A3 4,129,360
- ------------------------------------------------------------------------------------
HAWAII - 0.3%
8,000,000 Hawaii Department of
Budget and Finance
(Kapiolani Health Care
System),
7.650%, 7/01/19 (Pre-
refunded to 7/01/01) 7/01 at 102 Aaa 9,148,000
- ------------------------------------------------------------------------------------
ILLINOIS - 16.1%
8,500,000 Illinois Development
Finance Authority
(Columbus-Cuneo-Cabrini
Medical Center),
8.500%, 2/01/15 2/00 at 102 BBB+ 9,070,605
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 8,500,000 Illinois Educational
Facilities Authority
(The University of
Chicago), 5.600%,
7/01/24 7/03 at 102 Aaa $ 7,686,805
Illinois General
Obligation:
15,100,000 6.200%, 10/01/04 10/02 at 102 AA- 15,913,286
14,750,000 5.875%, 6/01/10 6/02 at 102 AA- 14,784,958
5,000,000 5.875%, 6/01/11 6/02 at 102 AA- 4,899,550
10,000,000 5.700%, 4/01/18 4/03 at 102 AA- 9,366,500
5,435,000 Illinois Health
Facilities Authority
(Rush Presbyterian),
6.900%, 10/01/02 4/95 at 100 A1 5,434,185
12,420,000 Illinois Health
Facilities Authority
(LaGrange Hospital),
7.625%, 7/01/13 (Pre-
refunded to 7/01/96) 7/96 at 102 A 13,122,599
5,000,000 Illinois Health
Facilities Authority
(Evanston Hospital),
9.750%, 9/01/15 9/95 at 102 AA 5,211,050
10,900,000 Illinois Health
Facilities Authority
(Illinois Masonic
Medical Center),
10.250%, 9/01/15 (Pre-
refunded to 9/01/95) 9/95 at 102 AAA 11,418,295
10,000,000 Illinois Health
Facilities Authority
(Highland Park
Hospital),
6.200%, 10/01/22 10/02 at 102 Aaa 9,973,000
33,620,000 Illinois Health
Facilities Authority
(Rush Presbyterian-St.
Luke's Medical
Center), 5.500%,
11/15/25 11/03 at 102 Aaa 30,275,482
10,425,000 Illinois Independent
Higher Education Loan
Authority
(Northwestern
University),
8.000%, 12/01/07 12/96 at 102 AA- 11,195,512
Illinois Sales Tax:
21,670,000 6.000%, 6/15/18 6/01 at 100 AAA 21,189,143
14,200,000 5.250%, 6/15/18 6/03 at 102 AAA 12,421,024
Illinois Toll Highway
Authority:
20,000,000 6.450%, 1/01/13 1/03 at 102 A1 20,215,400
6,000,000 6.200%, 1/01/16 1/03 at 102 Aaa 5,999,340
Chicago General
Obligation:
4,900,000 9.000%, 1/01/99 (Pre-
refunded to 7/01/95) 7/95 at 102 Aaa 5,076,057
5,800,000 5.250%, 1/01/18 1/04 at 102 Aaa 5,144,020
15,770,000 5.625%, 1/01/23 1/03 at 102 Aaa 14,495,153
22,425,000 Chicago Metropolitan
Housing Development
Corporation, 6.900%,
7/01/22 7/02 at 102 AA 22,776,400
4,465,000 Chicago Motor Fuel Tax,
5.000%, 1/01/16 1/03 at 101 Aaa 3,851,866
31,000,000 Chicago O'Hare
International Airport,
5.000%, 1/01/16 1/04 at 102 A1 26,516,470
15,905,000 Cook County General
Obligation,
5.000%, 11/15/23 11/03 at 100 Aaa 13,414,277
</TABLE>
14
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
DuPage Water Commission,
General Obligation:
$ 51,290,000 7.875%, 3/01/11 (Pre-
refunded to 3/01/96) 3/96 at 102 Aaa $ 53,892,968
16,800,000 5.750%, 3/01/11 3/02 at 100 Aaa 16,747,584
9,500,000 5.250%, 5/01/14 5/03 at 102 AA 8,703,995
2,000,000 Hazel Crest (South
Suburban Hospital),
9.125%, 7/01/17 (Pre-
refunded to 7/01/97) 7/97 at 102 AAA 2,226,880
54,980,000 Metropolitan Pier and
Exposition Authority
(McCormick Place
Expansion Project),
6.500%, 6/15/27 6/03 at 102 A+ 55,177,378
Zion Elderly Housing
Corporation:
310,000 7.250%, 3/01/98 9/95 at 102 A 319,675
1,705,000 7.750%, 3/01/10 9/95 at 102 A 1,747,096
- --------------------------------------------------------------------------------
INDIANA - 1.5%
10,500,000 Indiana Health
Facilities Financing
Authority (Methodist
Hospital), 5.750%,
9/01/11 9/02 at 102 Aaa 10,163,265
12,550,000 Indiana Office Building
Commission,
8.750%, 7/01/12 (Pre-
refunded to 7/01/97) 7/97 at 102 Aaa 13,873,649
2,500,000 Indianapolis Local
Public Improvement,
Bond Bank, 6.750%,
2/01/20 2/03 at 102 A+ 2,556,000
3,135,000 Indianapolis Resource
Recovery (Ogden
Martin),
7.900%, 12/01/08 12/96 at 103 A 3,323,257
6,660,000 Evansville Hospital
Authority
(Daughters of Charity),
10.125%, 11/01/15 11/95 at 102 Aa 7,004,788
2,500,000 Southwind Housing, Inc.,
7.125%, 11/15/21 No Opt. Call AA 2,835,375
- --------------------------------------------------------------------------------
IOWA - 0.3%
4,350,000 Iowa Housing Finance
Authority,
5.875%, 8/01/08 8/95 at 101 Aa1 4,371,794
3,500,000 Davenport (Mercy
Hospital), 6.625%,
7/01/14 7/02 at 102 Aaa 3,631,530
- --------------------------------------------------------------------------------
KENTUCKY - 3.1%
Kentucky Housing
Corporation:
17,600,000 5.300%, 7/01/10 1/04 at 102 Aaa 16,093,616
10,100,000 5.400%, 7/01/14 1/04 at 102 Aaa 9,080,506
3,925,000 7.250%, 1/01/17 7/01 at 102 Aaa 4,101,507
Kentucky Turnpike
Authority:
9,860,000 8.000%, 7/01/03 7/97 at 102 A+ 10,701,255
8,980,000 5.000%, 7/01/08 7/97 at 100 A+ 8,286,834
34,500,000 Carroll County Pollution
Control
(Kentucky Utilities
Company),
7.450%, 9/15/16 9/02 at 102 Aa2 37,665,720
- --------------------------------------------------------------------------------
MAINE - 0.3%
10,000,000 Maine Housing Authority,
5.700%, 11/15/26 2/04 at 102 AA- 8,966,700
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MASSACHUSETTS - 4.0%
$ 15,000,000 Massachusetts Bay
Transportation
Authority,
Certificates of
Participation, 7.650%,
8/01/15 8/00 at 102 Aaa $ 16,539,000
29,670,000 Massachusetts General
Obligation,
4.700%, 8/01/02 No Opt. Call A1 28,289,752
12,245,000 Massachusetts Housing
Finance Agency (GNMA),
9.125%, 12/01/20 12/95 at 102 Aaa 12,731,494
Massachusetts Water
Resources Authority:
9,765,000 5.250%, 3/01/13 3/03 at 102 A 8,905,094
6,500,000 7.500%, 4/01/16 (Pre-
refunded to 4/01/00) 4/00 at 102 Aaa 7,270,185
9,500,000 6.000%, 4/01/20 4/00 at 100 A 9,366,050
24,650,000 5.250%, 12/01/20 12/04 at 102 A 21,769,155
5,795,000 5.000%, 3/01/22 3/03 at 100 A 4,895,558
- --------------------------------------------------------------------------------
MICHIGAN - 5.8%
3,000,000 Michigan Hospital
Finance Authority
(Genesys Health
System), 7.500%,
10/01/27 10/05 at 100 BBB 2,900,670
4,595,000 Michigan Housing
Development Authority,
6.750%, 7/01/05 7/95 at 100 Aa1 4,628,544
10,000,000 Michigan Housing
Development Authority,
Rental Housing,
6.600%, 4/01/12 10/02 at 102 A+ 10,191,100
4,000,000 Michigan State Hospital
Finance Authority
(Henry Ford Hospital),
7.500%, 7/01/13
(Pre-refunded to
1/01/97) 1/97 at 102 Aaa 4,262,560
Michigan State Hospital
Finance Authority
(St. John Hospital):
9.125%, 12/01/02 (Pre-
1,990,000 refunded to 12/01/95) 12/95 at 102 A1 2,093,002
6,855,000 9.200%, 12/01/10 (Pre-
refunded to 12/01/95) 12/95 at 102 N/R 7,213,585
41,500,000 Michigan State Hospital
Finance Authority
(Harper Grace and
Huron Valley
Hospitals), 10.000%,
10/01/16 (Pre-refunded
to 10/01/95) 10/95 at 102 AAA 43,560,060
Michigan State Hospital
Finance Authority
(Detroit Medical
Center):
19,585,000 5.750%, 8/15/13 8/04 at 102 A- 17,841,935
49,000,000 5.500%, 8/15/23 8/04 at 102 A- 40,973,800
5,000,000 Detroit Sewage Disposal
System,
8.250%, 7/01/05 (Pre-
refunded to 7/01/97) 7/97 at 102 A- 5,467,900
16,805,000 St. Joseph Hospital
Finance Authority
(Mercy Memorial
Medical Center
Obligated Group),
5.250%, 1/01/16 1/04 at 102 Aaa 14,949,728
5,000,000 University of Michigan
Hospital,
6.625%, 12/01/10 12/96 at 100 AA 5,043,350
- --------------------------------------------------------------------------------
MINNESOTA - 0.8%
2,520,000 Minnesota Housing
Finance Agency,
6.250%, 2/01/20 8/95 at 102 A1 2,513,524
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MINNESOTA (CONTINUED)
$ 14,420,000 Minneapolis Convention
Center,
7.750%, 4/01/11 (Pre-
refunded to 4/01/96) 4/96 at 102 Aaa $ 15,167,677
5,000,000 University of Minnesota,
7.625%, 2/01/05 (Pre-
refunded to 2/01/96) 2/96 at 102 AAA 5,229,150
- ------------------------------------------------------------------------------------
MISSOURI - 1.0%
2,785,000 Missouri Environmental
Improvement and Energy
Resource Authority,
Pollution Control
(Associated Electric
Cooperative, Inc.),
7.900%, 11/15/14 5/96 at 103 Aa3 2,940,654
15,750,000 Missouri Health and
Educational Facilities
Authority (Heartland
Health), 8.125%,
10/01/10 10/99 at 102 1/2 BBB+ 17,837,033
6,195,000 Missouri Housing
Development Commission,
7.000%, 9/15/22 3/95 at 102 AA+ 6,317,413
- ------------------------------------------------------------------------------------
NEBRASKA - 1.6%
40,835,000 Consumers Public Power
District, 5.100%,
1/01/03 7/95 at 101 A1 40,941,988
2,615,000 Hall County Hospital
Authority
(Sisters of Charity),
6.750%, 12/01/07 6/95 at 103 Aa 2,693,450
- ------------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.3%
8,500,000 New Hampshire Industrial
Development Authority,
Pollution Control
(Central Maine Power
Company), 7.375%,
5/01/14 12/01 at 103 Baa3 8,823,680
- ------------------------------------------------------------------------------------
NEW JERSEY - 0.4%
10,750,000 New Jersey Housing and
Mortgage Finance
Agency, 6.950%,
11/01/13 5/02 at 102 A+ 11,199,565
- ------------------------------------------------------------------------------------
NEW YORK - 6.8%
8,000,000 New York Local
Government
Assistance Corporation,
7.000%, 4/01/18 (Pre-
refunded to 4/01/02) 4/02 at 102 Aaa 8,970,800
13,000,000 New York State Housing
Finance Agency,
Health Facilities (New
York City),
8.000%, 11/01/08 11/00 at 102 BBB+ 14,379,430
11,490,000 New York State Mortgage
Agency,
6.875%, 4/01/17 10/96 at 102 Aa 11,753,925
10,725,000 Battery Park City
Authority, 5.000%,
11/01/13 11/03 at 102 AA 9,122,149
New York Municipal
Assistance Corporation:
16,270,000 7.750%, 7/01/06 7/97 at 102 AA- 17,618,295
18,565,000 6.750%, 7/01/06 7/97 at 102 AA- 19,578,278
23,535,000 7.250%, 7/01/08 7/96 at 102 AA- 24,627,024
14,250,000 6.000%, 7/01/08 7/97 at 100 AA- 14,400,195
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
New York City General
Obligation:
$ 24,685,000 6.700%, 2/01/96 No Opt. Call A- $ 25,095,265
16,500,000 4.875%, 10/01/01 No Opt. Call A- 15,299,955
5,000,000 8.125%, 11/01/06 (Pre-
refunded to 11/01/97) 11/97 at 101 1/2 Aaa 5,492,800
8,000,000 5.750%, 8/15/11 8/03 at 102 A- 7,270,880
8,525,000 6.625%, 8/01/12 (Pre-
refunded to 8/01/02) 8/02 at 101 1/2 Aaa 9,335,728
5,000,000 Triborough Bridge and
Tunnel Authority,
General Purpose,
4.750%, 1/01/19 1/04 at 100 Aa 4,129,950
- ------------------------------------------------------------------------------------
NORTH CAROLINA - 4.2%
North Carolina Eastern
Municipal Power Agency:
53,810,000 6.250%, 1/01/12 1/03 at 102 A- 52,171,486
17,290,000 8.000%, 1/01/21 (Pre-
refunded to 1/01/98) 1/98 at 102 Aaa 19,000,154
North Carolina Municipal
Power Agency No. 1
(Catawba):
13,880,000 9.000%, 1/01/14 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 14,647,703
5,545,000 7.625%, 1/01/14 1/98 at 102 Aaa 5,939,471
20,080,000 8.500%, 1/01/17 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 21,105,285
Wilmington Housing
Authority:
210,000 7.750%, 6/01/98 No Opt. Call AA 215,462
1,195,000 7.750%, 6/01/10 No Opt. Call AA 1,283,848
- ------------------------------------------------------------------------------------
OHIO - 0.3%
6,285,000 Ohio Building Authority
(Correctional
Facilities), 9.100%,
10/01/04 (Pre-refunded
to 10/01/95) 10/95 at 103 Aaa 6,630,864
500,000 Ohio Building Authority
(Toledo Center),
9.100%, 10/01/04 10/95 at 103 A1 527,395
- ------------------------------------------------------------------------------------
OKLAHOMA - 0.2%
5,375,000 Comanche County Hospital
Authority,
8.050%, 7/01/16 (Pre-
refunded to 7/01/99) 7/99 at 102 AAA 6,089,391
- ------------------------------------------------------------------------------------
PENNSYLVANIA - 4.7%
Pennsylvania Housing
Finance Agency:
4,025,000 8.100%, 7/01/13 7/02 at 102 AAA 4,433,618
16,830,000 8.200%, 7/01/24 7/02 at 102 AAA 18,480,182
14,000,000 Pennsylvania Housing
Finance Agency, Rental
Housing (FNMA), 5.750%,
7/01/14 7/03 at 102 Aaa 13,408,360
15,000,000 Pennsylvania
Intergovernmental
Cooperative Authority
(Philadelphia Funding
Program), 5.00%,
6/15/22 6/03 at 100 Aaa 12,853,500
5,000,000 Allegheny County
Hospital Development
Authority (St. Francis
Medical Center),
8.125%, 6/01/13 (Pre-
refunded to 6/01/96) 6/96 at 102 Aaa 5,307,600
7,000,000 Geisinger Health System,
7.875%, 7/01/04 7/95 at 102 AA 7,212.940
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 10,000,000 Lehigh County Industrial
Development Authority,
Pollution Control
(Pennsylvania Power and
Light Company), 6.400%,
9/01/29 9/04 at 102 Aaa $ 10,138,100
6,550,000 Monroeville Hospital
Authority
(Forbes Health System),
9.700%, 10/01/13 (Pre-
refunded to 10/01/95) 10/95 at 102 AAA 6,863,811
9,300,000 Philadelphia Airport,
6.200%, 6/15/06 6/95 at 100 BBB 9,299,070
Philadelphia Water and
Sewer System:
5,890,000 7.250%, 7/01/14 (Pre-
refunded to 7/01/96) 7/96 at 102 AAA 6,139,442
7,000,000 7.000%, 8/01/18 8/01 at 100 BBB 7,195,720
28,075,000 Philadelphia Hospitals
and Higher Educational
Facilities Authority
(Pennsylvania
Hospital), 7.250%,
7/01/14 7/96 at 101 A 28,588,211
- ------------------------------------------------------------------------------------
RHODE ISLAND - 0.4%
3,900,000 Rhode Island Housing and
Mortgage Finance
Corporation, 8.875%,
7/01/07 7/95 at 100 A1 3,948,750
7,595,000 Rhode Island Convention
Center Authority,
5.000%, 5/15/20 5/03 at 100 Aaa 6,371,825
- ------------------------------------------------------------------------------------
TEXAS - 4.4%
Austin Water, Sewer and
Electric:
17,575,000 14.000%, 11/15/01 No Opt. Call A 25,332,429
4,000,000 11.000%, 11/15/02 (Pre-
refunded to 5/15/97) 5/97 at 100 AAA 4,509,000
Dallas-Fort Worth
International Airport:
9,400,000 9.000%, 11/01/05 11/95 at 102 1/2 A1 9,891,432
15,945,000 9.125%, 11/01/15 11/95 at 102 1/2 A1 16,782,910
19,400,000 Harris County Toll Road,
5.300%, 8/15/13 8/04 at 102 Aaa 18,080,218
7,000,000 Harris County Health
Facilities Development
Corporation (St. Luke's
Episcopal Hospital),
6.750%, 2/15/21 2/01 at 102 AA 7,120,190
3,345,000 Houston Water and Sewer
System, 8.200%,
12/01/15 (Pre-refunded
to 12/01/96) 12/96 at 102 AAA 3,608,118
San Antonio Electric and
Gas Systems:
5,000,000 8.000%, 2/01/09 (Pre-
refunded to 2/01/98) 2/98 at 102 Aaa 5,504,100
3,500,000 8.000%, 2/01/16 (Pre-
refunded to 2/01/98) 2/98 at 102 Aaa 3,852,870
16,000,000 5.000%, 2/01/17 2/02 at 101 Aa1 13,886,720
San Antonio Sewer
System:
6,750,000 8.000%, 5/01/10 (Pre-
refunded to 5/01/95) 5/95 at 102 Aaa 6,928,133
5,615,000 7.900%, 5/01/14 (Pre-
refunded to 5/01/97) 5/97 at 101 1/2 Aaa 6,048,253
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH - 4.2%
Intermountain Power
Agency:
$ 9,200,000 10.250%, 7/01/04 7/95 at 102 1/2 AA $ 9,592,380
6,345,000 10.000%, 7/01/10 7/95 at 102 1/2 AA 6,613,711
6,300,000 5.500%, 7/01/13 7/03 at 103 AA 5,878,971
32,080,000 7.875%, 7/01/14 7/96 at 102 AA- 33,670,847
3,200,000 9.625%, 7/01/19 7/95 at 102 AA 3,315,648
16,260,000 7.200%, 7/01/19 7/97 at 102 AA- 16,983,407
18,225,000 7.000%, 7/01/23 (Pre-
refunded to 7/01/95) 7/95 at 100 Aaa 18,396,497
22,140,000 5.000%, 7/01/23 7/03 at 100 AA 18,535,165
1,835,000 Layton Industrial
Development (K-Mart),
8.750%, 6/01/05 6/95 at 100 1/2 Baa1 1,859,442
- -----------------------------------------------------------------------------------
VERMONT - 0.1%
270,000 University of Vermont,
Housing, Dining and
Student Services,
6.300%, 7/01/06 7/95 at 101 AA- 274,136
- -----------------------------------------------------------------------------------
VIRGINIA - 3.9%
Virginia Housing
Development Authority:
19,080,000 5.550%, 5/01/08 5/03 at 102 AA 18,253,645
28,075,000 5.900%, 5/01/14 5/03 at 102 AA 26,386,570
3,275,000 6.700%, 11/01/21 4/95 at 101 AA 3,304,573
50,000,000 7.150%, 1/01/33 1/02 at 102 AA+ 52,085,000
6,240,000 Chesapeake Hospital
Authority
(Chesapeake General
Hospital),
7.625%, 7/01/18 (Pre-
refunded to 7/01/98) 7/98 at 102 Aaa 6,859,757
1,190,000 Chesapeake Industrial
Development Authority
(Camelot Hall Nursing
Home), 7.500%, 9/01/01 No Opt. Call N/R 1,194,129
- -----------------------------------------------------------------------------------
WASHINGTON - 7.3%
Washington Public Power
Supply System,
Nuclear Project No. 1:
14,260,000 7.000%, 7/01/07 No Opt. Call AA 15,489,212
7,805,000 7.000%, 7/01/09 No Opt. Call AA 8,414,804
18,500,000 5.750%, 7/01/13 7/03 at 102 AA 17,079,570
10,000,000 5.375%, 7/01/15 7/03 at 102 AA 8,821,400
5,000,000 7.125%, 7/01/16 No Opt. Call AA 5,542,700
10,000,000 5.700%, 7/01/17 7/03 at 102 Aaa 9,307,400
Washington Public Power
Supply System,
Nuclear Project No. 3:
9,180,000 5.300%, 7/01/10 7/03 at 102 AA 8,209,765
51,070,000 5.375%, 7/01/15 7/03 at 102 AA 45,050,890
2,095,000 15.000%, 7/01/18 (Pre-
refunded to 7/01/96) 7/96 at 103 Aaa 2,433,342
8,835,000 5.700%, 7/01/18 7/03 at 102 AA 7,990,991
11,545,000 5.500%, 7/01/18 7/03 at 102 AA 10,204,510
6,635,000 Chelan County Public
Utility District No. 1,
5.125%, 7/01/23 7/95 at 100 A1 6,270,207
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WASHINGTON (CONTINUED)
$ 33,576,000 Chelan County Public
Utility District No. 1
(Rocky Reach Hydro-
Electric System),
5.000%, 7/01/13 7/95 at 100 A1 $ 33,573,313
16,920,000 Columbia Storage Power
Exchange,
3.875%, 4/01/03 4/95 at 100 AA 16,919,491
4,950,000 Seattle Metropolitan
Sewer,
7.400%, 1/01/16 (Pre-
refunded to 1/01/96) 1/96 at 102 Aaa 5,176,066
- --------------------------------------------------------------------------------
WISCONSIN - 2.2%
13,500,000 Wisconsin Health and
Educational Facilities
Authority (Aurora
Health Care Obligated
Group), 5.250%, 8/15/23 8/03 at 102 Aaa 11,762,550
3,250,000 Wisconsin Health and
Educational Facilities
Authority (Froedtert
Memorial Lutheran
Hospital), 5.875%,
10/01/13 10/04 at 102 Aaa 3,137,614
Wisconsin Housing and
Economic Development
Authority:
2,760,000 9.875%, 11/01/03 3/95 at 101 A1 2,825,550
3,205,000 10.000%, 11/01/10 3/95 at 101 A1 3,265,093
23,200,000 5.800%, 11/01/13 1/04 at 104 A1 21,669,263
4,500,000 5.800%, 6/01/17 No Opt. Call AA 4,378,950
8,500,000 7.050%, 11/01/22 4/02 at 102 A1 8,728,395
4,815,000 Sheboygan Pollution
Control
(Wisconsin Electric
Power Company),
9.750%, 9/15/15 9/95 at 102 AA+ 5,033,360
- --------------------------------------------------------------------------------
PUERTO RICO - 0.3%
8,000,000 Puerto Rico Aqueduct and
Sewer Authority,
7.875%, 7/01/17 7/98 at 102 A 8,772,240
- --------------------------------------------------------------------------------
$2,727,460,452 Total Investments -
(cost $2,622,064,371) -
98.7% 2,704,785,376
- --------------------------------------------------------------------------------
- -------------------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 0.1%
$ 2,700,000 Michigan Strategic Fund
(Dow Chemical Company),
Variable Rate Demand
Bonds, 3.800%, 2/01/09+ P-1 2,700,000
- --------------------------------------
- --------------------------------------------------------------------------------
Other Assets Less
Liabilities - 1.2% 33,692,723
- --------------------------------------------------------------------------------
Net Assets - 100% $2,741,178,099
</TABLE>
- --------------------------------------------------------------------------------
21
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MUNICIPAL BOND FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 75 $ 859,743,088 32%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 81 1,028,411,785 38
PORTFOLIO OF A+ A1 24 344,778,946 13
INVESTMENTS A, A- A, A2, A3 26 347,109,113 13
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 11 95,185,580 3
TEMPORARY Non-rated Non-rated 5 29,556,864 1
INVESTMENTS):
- -----------------------------------------------------------------------------------------
TOTAL 222 $2,704,785,376 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
Con. Rating is conditional. Bonds for which the security depends upon the
completion of some act or the fulfillment of some condition are rated
conditionally. These are bonds secured by (a) earnings by projects under
construction, (b) earnings of projects unseasoned in operation experience, (c)
rentals which begin when facilities are completed, or (d) payments to which
some other limiting condition attaches. Parenthetical rating denotes probable
credit stature upon completion of construction or elimination of basis of
condition.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
22
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
NUVEEN INSURED MUNICIPAL BOND FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ALABAMA - 4.2%
$ 2,120,000 Albertville Water Supply
Board, 6.700%, 3/01/11 3/02 at 102 Aaa $ 2,244,762
4,960,000 Auburn Government Utility
Services Corporation,
Wastewater Treatment,
7.300%, 1/01/12 12/99 at 102 Aaa 5,288,104
500,000 Auburn Water Works Board,
5.750%, 9/01/22 9/02 at 102 Aaa 478,080
1,875,000 Birmingham Special Care
Facilities Financing
Authority (Baptist Medical
Center),
7.000%, 1/01/21 1/01 at 102 Aaa 1,963,275
Daphne Utilities Board,
Water, Gas and Sewer:
1,255,000 7.350%, 6/01/20 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 1,401,069
1,225,000 7.350%, 6/01/20 6/00 at 102 Aaa 1,311,840
3,000,000 Madison General Obligation,
6.250%, 2/01/19 2/04 at 102 Aaa 3,044,880
3,000,000 Mobile County General
Obligation,
6.700%, 2/01/11 (Pre-
refunded to 2/01/00) 2/00 at 102 Aaa 3,252,030
2,375,000 Muscle Shoals Utilities
Board,
Water and Sewer System,
7.250%, 4/01/17 (Pre-
refunded to 4/01/99) 4/99 at 102 Aaa 2,611,028
3,000,000 Oneanta Utilities Board,
6.900%, 11/01/24 11/04 at 102 Aaa 3,218,760
1,250,000 Warrior River Water
Authority, 5.350%, 8/01/23 8/03 at 102 Aaa 1,120,238
West Morgan--East Lawrence
Water Authority:
2,200,000 6.800%, 8/15/19 8/04 at 102 Aaa 2,340,536
3,000,000 6.850%, 8/15/25 8/04 at 102 Aaa 3,203,940
- -------------------------------------------------------------------------------
ALASKA - 0.6%
5,000,000 Anchorage General
Obligation, 5.600%,
1/01/14 1/04 at 100 Aaa 4,721,800
- -------------------------------------------------------------------------------
ARIZONA - 0.8%
6,000,000 Tempe Union High School
District No. 213, General
Obligation, 6.000%,
7/01/10 7/04 at 101 Aaa 6,153,300
- -------------------------------------------------------------------------------
CALIFORNIA - 13.6%
5,000,000 California Health
Facilities Financing
Authority (Catholic
Healthcare West), 5.000%,
7/01/14 7/04 at 102 Aaa 4,421,400
Brea Public Financing
Authority, Tax Allocation:
3,525,000 7.000%, 8/01/15 (Pre-
refunded to 8/01/01) 8/01 at 102 Aaa 3,936,755
1,475,000 7.000%, 8/01/15 8/01 at 102 Aaa 1,576,362
5,000,000 Brea Redevelopment Agency,
Tax Allocation,
5.750%, 8/01/23 8/03 at 102 Aaa 4,771,300
5,000,000 Contra Costa Water
Authority, 5.750%,
10/01/20 10/02 at 102 Aaa 4,780,650
4,150,000 Fairfield Public Finance
Authority, 5.500%, 8/01/23 8/03 at 102 Aaa 3,789,531
Lancaster Redevelopment
Agency, Tax Allocation:
2,500,000 6.100%, 8/01/19 8/01 at 102 Aaa 2,509,400
2,500,000 5.800%, 8/01/23 8/03 at 102 Aaa 2,395,925
10,700,000 Los Angeles Community
Redevelopment Agency
(Bunker Hill Project),
5.625%, 12/01/23 12/03 at 102 Aaa 9,851,062
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
CALIFORNIA (CONTINUED)
$ 14,740,000 Los Angeles Convention and
Exhibition Center
Authority, 5.375%, 8/15/18 8/03 at 102 Aaa $ 13,432,415
4,570,000 Los Angeles Wastewater
System, 5.800%, 6/01/21 6/03 at 102 Aaa 4,385,372
4,500,000 Los Angeles County
Metropolitan
Transportation Authority,
Sales Tax, 5.625%, 7/01/18 7/03 at 102 Aaa 4,262,085
4,500,000 M-S-R Public Power Agency
(San Juan Project),
6.000%, 7/01/20 7/03 at 102 Aaa 4,441,860
1,700,000 Monterey Regional Water
Pollution Control Agency,
Wastewater System,
5.300%, 6/01/14 6/03 at 100 Aaa 1,548,751
2,500,000 Moulton Niguel Water
District, Certificates of
Participation,
5.300%, 9/01/23 9/03 at 102 Aaa 2,206,775
2,500,000 Oakland General Obligation,
6.000%, 6/15/22 6/02 at 102 Aaa 2,466,675
3,000,000 Rancho Cucamonga
Redevelopment Agency,
5.500%, 9/01/23 3/04 at 102 Aaa 2,758,080
5,295,000 Riverside County Desert,
Justice Facility
Corporation, Certificates
of Participation,
6.000%, 12/01/12 12/04 at 101 Aaa 5,331,959
2,250,000 Sacramento Municipal
Utility District,
Electric System,
6.500%, 9/01/21 (Pre-
refunded to 9/01/01) 9/01 at 102 Aaa 2,456,325
4,750,000 San Francisco City and
County Sewer System,
5.375%, 10/01/22 10/02 at 102 Aaa 4,275,238
7,500,000 University of California
Housing System,
5.500%, 11/01/18 11/03 at 102 Aaa 6,948,225
10,000,000 University of California,
6.375%, 9/01/24 9/02 at 102 Aaa 10,145,700
- -------------------------------------------------------------------------------
COLORADO - 1.1%
4,500,000 Denver Board of Water
Commissioners,
Certificates of
Participation, 6.625%,
11/15/11 11/01 at 101 Aaa 4,747,005
3,500,000 Jefferson County Equipment
Lease, Certificates of
Participation, 6.650%,
12/01/08 12/02 at 102 Aaa 3,831,905
- -------------------------------------------------------------------------------
DELAWARE - 0.5%
3,600,000 Delaware Economic
Development Authority,
Pollution Control
(Delmarva Power and
Light Company), 6.750%,
5/01/19 5/02 at 102 Aaa 3,767,292
- -------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6%
District of Columbia
General Obligation:
2,500,000 7.500%, 6/01/10 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 2,804,375
6,000,000 6.100%, 6/01/11 6/04 at 102 Aaa 5,932,320
2,000,000 District of Columbia
(American College of
Obstetricians and
Gynecologists),
6.500%, 8/15/18 8/01 at 102 Aaa 2,023,240
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA
(CONTINUED)
$ 1,000,000 Washington Metropolitan
Area Transit Authority,
5.250%, 7/01/14 1/04 at 102 Aaa $ 909,430
- -------------------------------------------------------------------------------
FLORIDA - 0.8%
Florida Keys Aqueduct
Authority:
920,000 6.750%, 9/01/21 (Pre-
refunded to 9/01/01) 9/01 at 101 Aaa 1,003,398
80,000 6.750%, 9/01/21 9/01 at 101 Aaa 83,682
Brevard County, Utility
System:
1,520,000 7.375%, 3/01/14 (Pre-
refunded to 3/01/98) 3/98 at 102 Aaa 1,649,869
295,000 7.375%, 3/01/14 3/98 at 102 Aaa 314,730
2,405,000 South Broward Hospital
District, 7.500%, 5/01/08 5/03 at 102 Aaa 2,726,693
- -------------------------------------------------------------------------------
GEORGIA - 2.5%
5,000,000 Albany Sewerage System,
6.625%, 7/01/17 7/02 at 102 Aaa 5,231,400
5,000,000 Appling County Development
Authority (Oglethorpe
Power Corporation),
7.150%, 1/01/21 1/04 at 101 Aaa 5,447,900
1,000,000 Atlanta Board of Education,
Certificates of
Participation,
7.125%, 6/01/12 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 1,106,140
2,250,000 Chatham County Hospital
Authority
(Savannah Memorial Medical
Center),
7.000%, 1/01/21 1/01 at 102 Aaa 2,396,093
1,500,000 Columbus Water and Sewerage
System, 5.700%, 5/01/20 11/03 at 102 Aaa 1,441,785
2,500,000 Fulton-DeKalb Hospital
Authority
(Grady Memorial),
5.500%, 1/01/20 7/03 at 102 Aaa 2,309,125
1,000,000 Georgia Municipal Electric
Authority,
6.500%, 1/01/26 1/04 at 102 Aaa 1,028,090
- -------------------------------------------------------------------------------
ILLINOIS - 9.9%
6,810,000 Illinois Health Facilities
Authority
(Methodist Health
Services), 8.000%, 8/01/15 2/99 at 103 Aaa 7,444,011
1,500,000 Illinois Health Facilities
Authority
(Rush-Presbyterian-St.
Luke's Medical Center),
5.500%, 11/15/25 11/03 at 102 Aaa 1,350,780
Illinois Health Facilities
Authority (Community
Provider Pooled Loan
Program):
20,000 7.900%, 8/15/03 (Pre-
refunded to 8/15/95) 8/95 at 102 Aaa 20,732
159,000 7.900%, 8/15/03 No Opt. Call Aaa 186,540
1,304,000 7.900%, 8/15/03 8/95 at 102 Aaa 1,350,475
Illinois Health Facilities
Authority
(Ingalls Health System):
7,000,000 6.250%, 5/15/14 5/04 at 102 Aaa 7,038,360
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ILLINOIS (CONTINUED)
$ 2,100,000 7.000%, 1/01/19 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa $ 2,299,143
4,000,000 Illinois Health
Facilities Authority
(Northwestern Medical
Faculty Foundation),
6.500%, 11/15/15 11/04 at 102 Aaa 4,123,600
7,705,000 Illinois Toll Highway
Authority,
6.200%, 1/01/16 1/03 at 102 Aaa 7,704,152
2,500,000 Chicago General
Obligation
(Central Public Library
Project),
6.850%, 1/01/17 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 Aaa 2,760,050
5,000,000 Chicago General
Obligation,
6.250%, 1/01/12 1/02 at 102 Aaa 5,060,350
1,500,000 Chicago Public Building
Commission (Community
College District No.
508), 7.700%, 1/01/08 No Opt. Call Aaa 1,650,795
18,300,000 Chicago Public Building
Commission (Board of
Education),
5.750%, 12/01/18 12/03 at 102 Aaa 17,411,901
6,540,000 Cicero General
Obligation,
6.400%, 12/01/14 12/04 at 102 Aaa 6,445,497
2,500,000 Community College
District No. 508, Cook
County, 8.750%, 1/01/07 No Opt. Call Aaa 3,182,250
2,370,000 Eastern Illinois
University,
6.375%, 4/01/16 4/04 at 102 Aaa 2,427,544
4,000,000 Northlake General
Obligation,
6.250%, 12/01/11 12/01 at 102 Aaa 4,080,520
- -------------------------------------------------------------------------------
INDIANA - 7.1%
5,000,000 Indiana Health
Facilities Financing
Authority (Community
Hospitals Project),
6.400%, 5/01/12 5/02 at 102 Aaa 5,107,150
Indiana Municipal Power
Agency,
Power Supply System:
1,000,000 7.100%, 1/01/15 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,099,290
5,000,000 6.125%, 1/01/19 1/03 at 102 Aaa 4,946,950
3,750,000 Indianapolis Gas Utility
System, 6.200%, 6/01/23 6/02 at 102 Aaa 3,757,388
2,000,000 Allen County
Certificates of
Participation, 6.500%,
11/01/17 5/02 at 101 Aa 2,036,500
5,350,000 Jasper County Pollution
Control
(Northern Indiana
Public Service
Company),
7.100%, 7/01/17 7/01 at 102 Aaa 5,677,153
2,000,000 Lawrence Central High
School Building
Corporation, First
Mortgage,
7.250%, 7/01/08 7/00 at 102 Aaa 2,141,760
Marion County Convention
and Recreational
Facilities Authority,
Excise Taxes Lease
Rental:
3,300,000 7.000%, 6/01/21 (Pre-
refunded to 6/01/01) 6/01 at 102 Aaa 3,665,112
500,000 7.000%, 6/01/21 6/01 at 102 Aaa 528,455
2,250,000 Monroe County Hospital
Authority
(Bloomington Hospital),
7.125%, 5/01/11 5/99 at 101 Aaa 2,368,058
1,000,000 Princeton Pollution
Control (Public Service
Company of Indiana),
7.375%, 3/15/12 3/00 at 102 Aaa 1,074,360
1,800,000 Randolph County Jail
Building Corporation,
First Mortgage,
6.250%, 8/01/13 8/02 at 101 Aaa 1,823,382
</TABLE>
26
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
INDIANA (CONTINUED)
$ 4,000,000 Richmond Hospital Authority
(Reid Hospital and Health
Care), 6.250%, 1/01/12 1/02 at 102 Aaa $ 4,053,760
St. Joseph County Hospital
Authority
(Memorial Hospital of
South Bend):
2,000,000 7.000%, 8/15/20 8/01 at 102 Aaa 2,109,440
2,500,000 6.250%, 8/15/22 2/03 at 102 Aaa 2,483,675
2,190,000 Shelby County Jail Building
Corporation,
First Mortgage,
6.500%, 7/15/09 7/02 at 102 Aaa 2,293,061
South Bend Community School
Building Corporation,
First Mortgage:
4,000,000 7.000%, 1/15/11 (Pre-
refunded to 7/15/99) 7/99 at 100 Aaa 4,315,800
1,380,000 6.650%, 1/15/14 (Pre-
refunded to 7/15/00) 7/00 at 100 Aaa 1,479,443
2,265,000 Southwest Allen Multi-
School Building
Corporation,
6.375%, 1/15/09 1/02 at 101 Aaa 2,339,020
- -------------------------------------------------------------------------------
KENTUCKY - 0.3%
Louisville and Jefferson
County Metropolitan Sewer
District:
1,000,000 7.000%, 5/01/09 (Pre-
refunded to 5/01/99) 5/99 at 102 Aaa 1,091,890
1,000,000 7.350%, 5/01/19 (Pre-
refunded to 5/01/00) 5/00 at 102 Aaa 1,115,310
- -------------------------------------------------------------------------------
LOUISIANA - 3.4%
Louisiana General
Obligation:
5,000,000 6.500%, 5/01/09 5/02 at 102 Aaa 5,265,850
2,000,000 6.500%, 5/01/12 5/02 at 102 Aaa 2,088,320
1,700,000 Louisiana Public Facilities
Authority
(Our Lady of Lourdes
Regional Medical Center),
6.450%, 2/01/22 2/02 at 102 Aaa 1,724,752
7,000,000 Louisiana Public Facilities
Authority
(Southern Baptist
Hospital), 6.800%, 5/15/12 5/02 at 102 Aaa 7,396,130
1,655,000 Louisiana Public Facilities
Authority (West Jefferson
Medical Center), 7.900%,
12/01/15 12/98 at 102 Aaa 1,805,539
1,000,000 Louisiana State University
and Agricultural and
Mechanical College,
5.750%, 7/01/74 7/04 at 102 Aaa 969,290
Tangipahoa Parish Hospital
Service District No. 1:
1,250,000 6.125%, 2/01/14 2/04 at 102 Aaa 1,255,350
4,750,000 6.250%, 2/01/24 2/04 at 102 Aaa 4,764,583
- -------------------------------------------------------------------------------
MAINE - 0.6%
3,175,000 Maine Health and Higher
Educational Facilities
Authority, 7.00%, 7/01/24 7/04 at 102 Aaa 3,379,311
Old Orchard Beach General
Obligation:
750,000 6.650%, 9/01/09 9/02 at 103 Aaa 806,820
500,000 6.650%, 9/01/10 9/02 at 103 Aaa 535,015
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MARYLAND - 0.6%
$ 3,000,000 Maryland Health and Higher
Educational Facilities
Authority (Frederick
Memorial Hospital),
5.000%, 7/01/23 7/03 at 102 Aaa $ 2,548,380
1,000,000 Morgan State University,
Academic and Auxiliary
Fees, 7.000%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 1,101,570
1,000,000 Prince George's County
Industrial
Development Authority
(Upper Marlboro
Justice Center Project),
7.000%, 6/30/19 (Pre-
refunded to 6/30/99) 6/99 at 102 Aaa 1,093,600
- -------------------------------------------------------------------------------
MASSACHUSETTS - 4.3%
2,000,000 Massachusetts General
Obligation,
7.000%, 6/01/09 (Pre-
refunded to 6/01/99) 6/99 at 102 Aaa 2,184,720
2,500,000 Massachusetts Bay
Transportation Authority,
General Transportation
System,
7.100%, 3/01/13 (Pre-
refunded to 3/01/99) 3/99 at 102 Aaa 2,730,525
1,250,000 Massachusetts Bay
Transportation Authority,
Certificates of
Participation,
7.650%, 8/01/15 8/00 at 102 Aaa 1,378,250
2,000,000 Massachusetts Health and
Educational Facilities
Authority (Capital Asset
Program), 7.300%, 10/01/18 4/00 at 102 Aaa 2,161,300
3,400,000 Massachusetts Health and
Educational Facilities
Authority (New England
Medical Center),
6.625%, 7/01/25 7/02 at 102 Aaa 3,505,774
4,000,000 Massachusetts Health and
Educational Facilities
Authority (South Shore
Hospital), 6.500%, 7/01/22 7/02 at 102 Aaa 4,075,160
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Falmouth
Hospital), 5.625%, 7/01/11 7/03 at 102 Aaa 955,180
2,800,000 Massachusetts Health and
Educational Facilities
Authority (Lahey Clinic
Medical Center),
5.625%, 7/01/15 7/03 at 102 Aaa 2,645,916
3,875,000 Massachusetts Health and
Educational Facilities
Authority (Cape Cod Health
System),
5.250%, 11/15/21 11/03 at 102 AAA 3,351,914
2,500,000 Massachusetts Housing
Finance Agency, Housing
Project, 6.150%, 10/01/15 4/03 at 102 Aaa 2,479,650
1,660,000 Massachusetts Turnpike
Authority, 5.125%, 1/01/23 1/03 at 102 Aaa 1,434,423
3,500,000 Boston City Hospital (FHA-
Insured),
7.625%, 2/15/21 (Pre-
refunded to 8/15/00) 8/00 at 102 Aaa 3,951,955
1,150,000 Haverhill General
Obligation,
7.000%, 6/15/12 6/02 at 102 Aaa 1,244,737
</TABLE>
28
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MICHIGAN - 4.9%
$ 1,535,000 Michigan Housing
Development Authority,
5.625%, 10/15/18 10/03 at 103 Aaa $ 1,397,863
2,400,000 Michigan Hospital
Finance Authority
(Henry Ford Health
System),
5.750%, 9/01/17 9/02 at 102 Aaa 2,275,416
2,000,000 Michigan Strategic Fund
(The Detroit Edison
Company),
6.875%, 12/01/21 12/01 at 102 Aaa 2,112,040
12,130,000 Bay City General
Obligation, Unlimited
Tax, 0.000%, 6/01/21 No Opt. Call Aaa 2,403,923
5,000,000 Caledonia Community
Schools General
Obligation,
6.700%, 5/01/22 (Pre-
refunded to 5/01/02) 5/02 at 102 Aaa 5,506,750
2,000,000 Detroit Sewage Disposal
System, 6.625%, 7/01/21 7/01 at 102 Aaa 2,068,960
2,000,000 Grand Rapids Water
Supply System,
6.500%, 1/01/15 1/01 at 102 Aaa 2,069,180
1,750,000 Grand Traverse County
Hospital Finance
Authority (Munson
Healthcare),
6.250%, 7/01/22 7/02 at 102 Aaa 1,765,208
5,000,000 Jackson County Hospital
Finance Authority
(W. A. Foote Memorial
Hospital),
5.250%, 6/01/23 6/03 at 102 Aaa 4,399,900
8,000,000 Livonia Public School
District, General
Obligation,
5.500%, 5/01/21 5/03 at 102 Aaa 7,385,360
6,085,000 River Rouge School
District, Unlimited
Tax, 5.625%, 5/01/22 5/03 at 101 1/2 Aaa 5,718,440
- -------------------------------------------------------------------------------
MISSISSIPPI - 0.8%
6,400,000 Medical Center
Educational Building
Corporation (University
of Mississippi Medical
Center Project),
5.900%, 12/01/23 12/04 at 102 Aaa 6,134,784
- -------------------------------------------------------------------------------
NEBRASKA - 0.2%
1,500,000 Lancaster County
Hospital Authority No.
1
(Bryan Memorial
Hospital),
6.700%, 6/01/22 6/02 at 102 Aaa 1,575,750
- -------------------------------------------------------------------------------
NEVADA - 1.0%
2,000,000 Clark County Industrial
Development
(Nevada Power Company),
7.200%, 10/01/22 10/02 at 102 Aaa 2,150,300
4,555,000 Reno, Insured Hospital
(St. Mary's Regional
Medical Center),
5.625%, 5/15/23 5/03 at 102 Aaa 4,179,213
1,160,000 University of Nevada
System,
7.125%, 7/01/16 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,284,526
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW HAMPSHIRE - 0.5%
New Hampshire Higher
Educational and Health
Facilities Authority,
University System:
$ 1,000,000 7.625%, 7/01/20 (Pre-
refunded to 7/01/99) 7/99 at 102 Aaa $ 1,117,350
2,850,000 6.250%, 7/01/20 7/02 at 102 Aaa 2,855,672
- -------------------------------------------------------------------------------
NEW JERSEY - 0.5%
1,480,000 New Jersey Housing and
Mortgage Finance
Agency, Home Mortgage
Purchase,
8.100%, 10/01/17 4/98 at 103 Aaa 1,587,700
2,015,000 Pennsauken Township,
Housing Finance
Corporation,
8.000%, 4/01/11 4/95 at 105 Aaa 2,118,087
- -------------------------------------------------------------------------------
NEW MEXICO - 1.0%
5,000 New Mexico Mortgage
Finance Authority,
Single Family Mortgage,
8.625%, 7/01/17 7/97 at 103 Aaa 5,322
3,000,000 Albuquerque Hospital
System (Presbyterian
Healthcare Services),
6.600%, 8/01/07 8/97 at 102 Aaa 3,107,670
4,445,000 Farmington Pollution
Control (Public Service
Company of New Mexico),
6.375%, 12/15/22 12/02 at 102 Aaa 4,550,080
- -------------------------------------------------------------------------------
NEW YORK - 13.0%
New York State Medical
Care Facilities Finance
Agency, Mental Health
Services Facilities
Improvement:
2,000,000 6.375%, 8/15/17 12/02 at 102 Aaa 2,037,480
6,530,000 5.900%, 8/15/22 8/02 at 102 Aaa 6,373,737
3,000,000 New York State Urban
Development
Corporation,
Correctional
Facilities,
5.250%, 1/01/18 1/03 at 102 Aaa 2,694,450
3,000,000 Dormitory Authority of
the State of New York
(City University),
5.750%, 7/01/18 No Opt. Call Aaa 2,906,160
Dormitory Authority of
the State of New York
(Mount Sinai School of
Medicine):
1,775,000 5.000%, 7/01/16 7/04 at 102 Aaa 1,556,977
8,375,000 5.000%, 7/01/21 7/04 at 102 Aaa 7,232,985
Metropolitan
Transportation
Authority
Commuter Facilities:
4,955,000 6.250%, 7/01/17 7/02 at 102 Aaa 5,027,938
5,000,000 6.375%, 7/01/18 7/04 at 101 1/2 Aaa 5,135,550
6,925,000 6.250%, 7/01/22 7/02 at 102 Aaa 6,992,519
New York City General
Obligation:
5,715,000 6.625%, 8/01/12 (Pre-
refunded to 8/01/02) 8/02 at 101 1/2 Aaa 6,258,497
285,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 298,917
3,010,000 6.000%, 5/15/16 5/03 at 101 1/2 Aaa 2,991,790
3,750,000 7.000%, 2/01/18 2/02 at 101 1/2 Aaa 4,036,838
1,000,000 New York City
Educational
Construction Fund,
5.625%, 4/01/13 4/04 at 101 1/2 Aaa 958,880
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
NEW YORK (CONTINUED)
$ 3,885,000 New York City Health and
Hospitals Corporation,
Health System,
5.750%, 2/15/22 2/03 at 102 Aaa $ 3,691,333
New York City Municipal
Water Finance
Authority, Water and
Sewer System:
4,155,000 6.750%, 6/15/14 (Pre-
refunded to 6/15/99) 6/99 at 101 1/2 Aaa 4,496,458
2,025,000 6.750%, 6/15/14 6/99 at 101 1/2 Aaa 2,107,721
6,330,000 6.750%, 6/15/16 6/01 at 101 Aaa 6,648,536
4,470,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 4,297,771
New York City Transit
Authority Transit
Facilities (Livingston
Plaza Project):
1,000,000 7.500%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,123,360
3,900,000 5.400%, 1/01/18 No Opt. Call Aaa 3,578,991
New York City Industrial
Development Agency,
Civic Facility (USTA
National Tennis Center
Incorporated Project):
3,500,000 6.500%, 11/15/10 11/04 at 102 Aaa 3,696,630
3,000,000 6.600%, 11/15/11 11/04 at 102 Aaa 3,181,980
2,765,000 Suffolk County Water
Authority, Water
System, 5.000%, 6/01/17 6/03 at 102 Aaa 2,433,670
Triborough Bridge and
Tunnel Authority,
Special Obligation:
5,240,000 6.875%, 1/01/15 1/01 at 102 Aaa 5,576,775
3,015,000 5.500%, 1/01/17 1/02 at 100 Aaa 2,829,065
- -------------------------------------------------------------------------------
NORTH CAROLINA - 0.3%
2,500,000 Charlotte Convention
Facility, Certificates
of Participation,
5.250%, 12/01/20 12/03 at 102 Aaa 2,273,650
- -------------------------------------------------------------------------------
OHIO - 0.8%
1,000,000 Columbus City School
District,
General Obligation,
Unlimited Tax,
7.000%, 12/01/11 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 1,107,310
2,500,000 Dublin City School
District, General
Obligation,
6.200%, 12/01/19 12/02 at 102 Aaa 2,538,075
1,500,000 Pickerington Local
School District,
General Obligation,
5.375%, 12/01/19 12/04 at 102 Aaa 1,385,190
1,000,000 South Euclid-Lyndhurst
City School District,
General Obligation,
Unlimited Tax,
5.300%, 12/01/14 12/04 at 102 Aaa 929,340
- -------------------------------------------------------------------------------
OKLAHOMA - 0.7%
5,000,000 Oklahoma Industries
Authority (Baptist
Center--South Oklahoma
City Hospital),
6.250%, 08/15/12 8/05 at 102 Aaa 5,047,250
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
OKLAHOMA (CONTINUED)
$ 435,000 Muskogee County Home
Finance Authority,
Single Family Mortgage,
7.600%, 12/01/10 6/00 at 102 Aaa $ 465,789
- -------------------------------------------------------------------------------
PENNSYLVANIA - 3.1%
5,000,000 Lehigh County General
Purpose Authority (St.
Luke's Hospital of
Bethlehem),
6.250%, 7/01/22 7/02 at 102 Aaa 5,038,150
North Penn Water
Authority:
750,000 6.875%, 11/01/19 11/04 at 101 Aaa 804,638
3,000,000 7.000%, 11/01/24 11/04 at 101 Aaa 3,245,850
500,000 Northampton County
Higher Educational
Authority (Moravian
College),
7.150%, 6/01/09 6/98 at 101 Aaa 527,975
1,000,000 Northampton County
Higher Education
Authority (Lehigh
University),
7.000%, 10/15/11 10/01 at 102 Aaa 1,085,210
7,500,000 Philadelphia Water and
Wastewater System,
5.500%, 6/15/14 6/03 at 102 Aaa 7,049,475
3,900,000 Philadelphia Municipal
Authority, Justice
Lease, 7.125%, 11/15/18
(Pre-refunded to
11/15/01) 11/01 at 102 Aaa 4,375,722
1,000,000 Washington County
Hospital Authority,
Hospital Refunding,
7.150%, 7/01/17 7/00 to 102 Aaa 1,054,030
- -------------------------------------------------------------------------------
RHODE ISLAND - 2.7%
Rhode Island Depositors
Economic Protection
Corporation, Special
Obligation:
3,750,000 6.000%, 8/01/17 8/03 at 102 Aaa 3,686,288
2,250,000 6.625%, 8/01/19 (Pre-
refunded to 8/01/02) 8/02 at 102 Aaa 2,468,723
6,255,000 Rhode Island Health and
Educational Building
Corporation, Higher
Education Auxiliary
Enterprise,
5.250%, 9/15/23 9/03 at 102 Aaa 5,449,043
4,000,000 Cranston, General
Obligation,
7.200%, 7/15/11 (Pre-
refunded to 7/15/01) 7/01 at 101 1/2 Aaa 4,474,920
3,130,000 Kent County Water
Authority,
6.350%, 7/15/14 7/04 at 102 Aaa 3,219,142
1,000,000 Providence Housing
Development
Corporation, FHA-
Insured (Barbara Jordan
Apartments), 6.650%,
7/01/15 7/04 at 102 Aaa 1,026,320
- -------------------------------------------------------------------------------
SOUTH CAROLINA - 1.3%
1,000,000 Aiken Water and Sewer
System, 7.250%, 1/01/14 1/00 at 102 Aaa 1,067,190
Charleston County Public
Facilities Corporation,
Certificates of
Participation:
1,500,000 6.875%, 6/01/14 6/04 at 102 Aaa 1,617,600
2,500,000 7.00%, 6/01/19 6/04 at 102 Aaa 2,702,175
Rock Hill Combined
Utility System Revenue:
2,000,000 6.375%, 1/01/15 1/01 at 102 Aaa 2,046,160
2,000,000 7.000%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 2,189,660
</TABLE>
32
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
SOUTH DAKOTA - 0.1%
$ 1,000,000 South Dakota Health and
Educational Facilities
Authority (McKennan
Hospital), 7.250%, 7/01/15 7/00 at 102 Aaa $ 1,060,450
- -------------------------------------------------------------------------------
TENNESSEE - 0.7%
1,375,000 Memphis-Shelby County
Airport Authority,
5.650%, 9/01/15 9/03 at 102 Aaa 1,309,303
3,000,000 Metropolitan Nashville
Airport Authority,
Airport Improvement,
6.600%, 7/01/15 7/01 at 102 Aaa 3,130,440
1,000,000 Robertson and Sumner
Counties, White House
Utility District,
6.375%, 1/01/22 1/02 at 102 Aaa 1,024,650
- -------------------------------------------------------------------------------
TEXAS - 5.0%
6,080,000 Texas Health Facilities
Development Corporation
(All Saints Episcopal
Hospitals of Fort Worth),
6.250%, 8/15/22 8/03 at 102 Aaa 6,098,301
800,000 Texas Housing Agency,
Single Family Mortgage,
7.875%, 9/01/17 9/96 at 102 Aa 825,080
3,000,000 Bexar County Health
Facilities Development
Corporation (Baptist
Memorial Hospital System
Project), 6.750%, 8/15/19 8/04 at 102 Aaa 3,133,860
5,000,000 Bexar Metropolitan Water
District, 5.000%, 5/01/19 5/04 at 100 Aaa 4,308,850
4,575,000 Harris County Toll Road,
Senior Lien,
6.500%, 8/15/17 (Pre-
refunded to 8/15/02) 8/02 at 102 Aaa 4,992,332
1,000,000 Harris County Hospital
District, 7.400%, 2/15/10 No Opt. Call Aaa 1,150,400
500,000 Houston Hotel Occupancy Tax
and Parking Facilities,
7.000%, 7/01/15 7/01 at 100 Aaa 529,370
4,820,000 Houston Water and Sewer
System, Junior Lien,
6.375%, 12/01/17 12/01 at 102 Aaa 4,931,294
825,000 Lower Colorado River
Authority, Priority
Refunding, 7.000%, 1/01/11 1/01 at 102 Aaa 883,064
3,205,000 Lower Colorado River
Authority, 6.000%, 1/01/17 1/02 at 100 Aaa 3,206,442
3,250,000 Sabine River Authority,
Pollution Control (Texas
Utilities Electric
Company), 5.550%, 5/01/22 11/03 at 102 Aaa 3,009,858
5,000,000 Tarrant County Health
Facilities Development
Corporation (Fort Worth
Osteopathic Hospital),
6.000%, 5/15/21 No Opt. Call Aaa 4,870,650
- -------------------------------------------------------------------------------
UTAH - 1.1%
335,000 Utah Housing Finance
Agency, Single Family
Mortgage, 8.375%, 7/01/19 1/09 at 100 AA 391,494
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UTAH (CONTINUED)
Provo City Energy System:
$ 2,300,000 5.500%, 11/15/11 5/03 at 102 Aaa $ 2,188,772
500,000 5.750%, 5/15/14 5/03 at 102 Aaa 479,755
1,500,000 West Valley City Municipal
Building Authority,
7.700%, 1/15/10 (Pre-
refunded to 1/15/99) 1/99 at 102 Aaa 1,665,900
3,500,000 White City Water System,
6.600%, 2/01/25 2/05 at 100 Aaa 3,594,570
- -------------------------------------------------------------------------------
VIRGINIA - 0.7%
1,000,000 Fairfax County, Sewer
Revenue,
7.000%, 11/15/16 (Pre-
refunded to 11/15/99) 11/99 at 102 Aaa 1,099,250
2,860,000 Richmond Metropolitan
Authority Expressway,
5.750%, 7/15/22 7/02 at 100 Aaa 2,756,783
1,050,000 Roanoke County Water
System,
6.000%, 7/01/31 (Pre-
refunded to 7/01/01) 7/01 at 100 Aaa 1,091,349
- -------------------------------------------------------------------------------
WASHINGTON - 5.3%
2,750,000 Washington Health Care
Facilities Authority
(Group Health Cooperative
of Puget Sound),
6.250%, 12/01/21 12/00 at 102 Aaa 2,751,320
6,000,000 Washington Health Care
Facilities Authority
(Swedish Hospital Medical
Center of Seattle),
6.300%, 11/15/22 11/02 at 102 Aaa 5,983,620
Washington Public Power
Supply System,
Nuclear Project No. 1:
5,000,000 6.250%, 7/01/17 7/02 at 102 Aaa 5,006,450
6,500,000 5.700%, 7/01/17 7/03 at 102 Aaa 6,049,810
5,000,000 Washington Public Power
Supply System,
Nuclear Project No. 2,
5.400%, 7/01/05 No Opt. Call Aaa 4,925,700
2,500,000 Washington Public Power
Supply System,
Nuclear Project No. 3,
7.250%, 7/01/16 (Pre-
refunded to 7/01/99) 7/99 at 102 Aaa 2,759,275
1,000,000 Marysville Water and Sewer,
7.000%, 12/01/11 (Pre-
refunded to 12/01/03) 12/03 at 100 Aaa 1,111,110
Seattle Metropolitan
Municipality Sewer System:
5,000,000 5.400%, 1/01/14 1/03 at 102 Aaa 4,626,500
3,080,000 5.400%, 1/01/15 1/03 at 102 Aaa 2,843,547
2,000,000 Walla Walla Water and Sewer
System, 6.200%, 8/01/12 8/02 at 102 Aaa 2,031,219
2,000,000 Whatcom County School
District No. 501,
General Obligation,
6.125%, 12/01/13 12/04 at 100 Aaa 1,961,559
- -------------------------------------------------------------------------------
WEST VIRGINIA - 0.7%
1,000,000 West Virginia School
Building Authority,
Capital Improvement,
7.250%, 7/01/15 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,113,369
</TABLE>
34
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
WEST VIRGINIA
(CONTINUED)
$ 5,000,000 Mason County Pollution
Control (Appalachian
Power Company),
6.850%, 6/01/22 6/02 at 102 Aaa $ 5,207,799
- ------------------------------------------------------------------------------
WISCONSIN - 1.7%
7,020,000 Wisconsin Health and
Educational Facilities
Authority (Sisters of
the Sorrowful
Mother--Ministry
Corporation),
6.125%, 8/15/22 2/03 at 102 Aaa 6,824,562
1,000,000 Wisconsin Municipal
Insurance Commission,
8.700%, 4/01/07 4/97 at 102 Aaa 1,089,739
1,050,000 Ashland School District
General Obligation,
6.900%, 4/01/10 (Pre-
refunded to 4/01/00) 4/00 at 100 Aaa 1,132,288
2,000,000 Superior Limited
Obligation
(Detroit Edison
Company),
6.900%, 8/01/21 No Opt. Call Aaa 2,234,099
1,000,000 Three Lakes School
District, General
Obligation,
6.750%, 4/01/12 (Pre-
refunded to 4/01/03) 4/03 at 100 Aaa 1,089,199
- ------------------------------------------------------------------------------
WYOMING - 0.3%
2,000,000 University of Wyoming
Facilities,
7.100%, 6/01/10 6/00 at 101 Aaa 2,153,519
- ------------------------------------------------------------------------------
PUERTO RICO - 0.6%
3,750,000 Commonwealth of Puerto
Rico, General
Obligation,
6.600%, 7/01/13 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 Aaa 4,123,349
- ------------------------------------------------------------------------------
$752,003,000 Total Investments -
(cost $726,819,723) -
98.9% 746,237,257
- ------------------------------------------------------------------------------
- -------------------
Other Assets Less
Liabilities - 1.1% 8,540,950
- ------------------------------------------------------------------------------
Net Assets - 100% $754,778,207
</TABLE>
- --------------------------------------------------------------------------------
35
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN INSURED MUNICIPAL BOND FUND--CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 237 $742,984,183 99%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 3 3,253,074 1
PORTFOLIO OF
INVESTMENTS:
- ----------------------------------------------------------------------------------
TOTAL 240 $746,237,257 100%
</TABLE>
- --------------------------------------------------------------------------------
All of the bonds in the portfolio are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by
an escrow or trust containing sufficient U.S. Government or U.S. Government
agency securities to ensure the timely payment of principal and interest.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
36
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
STATEMENT OF NET ASSETS FEBRUARY 28, 1995
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments in municipal securities, at market
value (note 1) $2,704,785,376 $746,237,257
Temporary investments in short-term municipal
securities, at amortized cost (note 1) 2,700,000 --
Cash 669,552 1,167,558
Receivables:
Interest 45,210,467 10,140,262
Shares sold 602,478 157,707
Investments sold -- 40,000
Other assets 30,882 9,656
-------------- ------------
Total assets 2,753,998,755 757,752,440
-------------- ------------
LIABILITIES
Payable for shares reacquired 947,975 303,139
Accrued expenses:
Management fees (note 7) 942,248 272,800
Other 617,944 88,837
Dividends payable 10,312,489 2,309,457
-------------- ------------
Total liabilities 12,820,656 2,974,233
-------------- ------------
Net assets (note 8) $2,741,178,099 $754,778,207
-------------- ------------
Class A Shares (note 1)
Net Assets $ N/A $ 14,096,504
-------------- ------------
Shares outstanding N/A 1,355,512
-------------- ------------
Net asset value and redemption price per share $ N/A $ 10.40
-------------- ------------
Offering price per share (net asset value per
share plus maximum sales charge of 4.50% of
offering price) $ N/A $ 10.89
-------------- ------------
Class C Shares (note 1)
Net Assets $ N/A $ 3,979,241
-------------- ------------
Shares outstanding N/A 386,035
-------------- ------------
Net asset value, offering and redemption price
per share $ N/A $ 10.31
-------------- ------------
Class R Shares (note 1)
Net Assets $2,741,178,099 $736,702,462
-------------- ------------
Shares outstanding 304,572,559 70,992,270
-------------- ------------
Net asset value and redemption price per share $ 9.00 $ 10.38
-------------- ------------
Offering price per share (net asset value per
share plus maximum sales charge of 4.75% of
offering price) $ 9.45 $ N/A
-------------- ------------
</TABLE>
N/A--Muni Bond is not authorized to issue Class A Shares or Class C Shares.
Ins. Muni Bond Class R Shares are sold without a sales charge.
See accompanying notes to financial statements.
37
<PAGE>
STATEMENT OF OPERATIONS
Year Ended February 28, 1995
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $167,929,987 $45,571,804
Taxable market discount -- 4,697
------------ -----------
Total income 167,929,987 45,576,501
------------ -----------
Expenses (note 2):
Management fees (note 7) 11,932,164 3,449,591
12b-1 distribution and service fees (note 1) -- 18,173
Shareholders' servicing agent fees and expenses 2,319,241 654,783
Custodian's fees and expenses 290,635 93,642
Directors' fees and expenses (note 7) 29,527 9,281
Professional fees 103,583 24,210
Shareholders' reports--printing and mailing
expenses 442,979 268,338
Federal and state registration fees 298,970 97,443
Portfolio insurance expense -- 17,052
Other expenses 52,161 24,267
------------ -----------
Total expenses before expense reimbursement 15,469,260 4,656,780
Expense reimbursement from investment adviser
(note 7) -- (10,570)
------------ -----------
Net expenses 15,469,260 4,646,210
------------ -----------
Net investment income 152,460,727 40,930,291
------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS
Net realized gain (loss) from investment
transactions, net of taxes, if applicable
(notes 1 and 5) 9,508,194 (1,781,054)
Net change in unrealized appreciation or
depreciation of investments (67,140,015) (25,968,067)
------------ -----------
Net gain (loss) from investments (57,631,821) (27,749,121)
------------ -----------
Net increase in net assets from operations $ 94,828,906 $13,181,170
------------ -----------
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
MUNI BOND INS. MUNI BOND
- ---------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
2/28/95 2/28/94 2/28/95 2/28/94
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 152,460,727 $ 140,045,709 $ 40,930,291 $ 34,985,971
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable 9,508,194 33,668,121 (1,781,054) 3,722,189
Net change in unrealized
appreciation or
depreciation of
investments (67,140,015) (57,025,692) (25,968,067) (4,767,784)
-------------- -------------- ------------ ------------
Net increase in net
assets from operations 94,828,906 116,688,138 13,181,170 33,940,376
-------------- -------------- ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A N/A N/A (204,455) --
Class C N/A N/A (45,156) --
Class R (151,297,051) (139,098,668) (41,157,453) (34,323,272)
From accumulated net
realized gains from
investment
transactions:
Class A N/A N/A (6,709) --
Class C N/A N/A (1,121) --
Class R (22,411,997) (26,833,320) (1,157,602) (3,876,453)
-------------- -------------- ------------ ------------
Decrease in net assets
from distributions to
shareholders (173,709,048) (165,931,988) (42,572,496) (38,199,725)
-------------- -------------- ------------ ------------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sales
of shares:
Class A N/A N/A 15,273,227 --
Class C N/A N/A 4,686,336 --
Class R 469,226,165 554,702,232 158,370,453 226,307,056
Net asset value of
shares issued to
shareholders due to
reinvestment of
distributions from net
investment
income and from net
realized gains from
investment
transactions:
Class A N/A N/A 105,479 --
Class C N/A N/A 25,888 --
Class R 141,568,061 138,399,306 28,508,956 26,207,900
-------------- -------------- ------------ ------------
610,794,226 693,101,538 206,970,339 252,514,956
-------------- -------------- ------------ ------------
Cost of shares redeemed:
Class A N/A N/A (1,930,617) --
Class C N/A N/A (893,066) --
Class R (490,742,684) (315,520,307) (165,891,052) (69,573,599)
-------------- -------------- ------------ ------------
(490,742,684) (315,520,307) (168,714,735) (69,573,599)
-------------- -------------- ------------ ------------
Net increase in net
assets derived from
Fund share
transactions 120,051,542 377,581,231 38,255,604 182,941,357
-------------- -------------- ------------ ------------
Net increase in net
assets 41,171,400 328,337,381 8,864,278 178,682,008
Net assets at beginning
of year 2,700,006,699 2,371,669,318 745,913,929 567,231,921
-------------- -------------- ------------ ------------
Net assets at end of
year $2,741,178,099 $2,700,006,699 $754,778,207 $745,913,929
-------------- -------------- ------------ ------------
Balance of undistributed
net investment income
at end
of year $ 2,133,643 $ 969,967 $ 189,790 $ 666,563
-------------- -------------- ------------ ------------
</TABLE>
N/A--Muni Bond is not authorized to issue Class A Shares or Class C Shares.
See accompanying notes to financial statements.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At February 28, 1995, the nationally diversified Funds
covered in this report (the "Funds") are Nuveen Municipal
Bond Fund, Inc. and Nuveen Insured Tax-Free Bond Fund, Inc.
(comprised of Nuveen Insured Municipal Bond Fund). Each Fund
invests primarily in a diversified portfolio of municipal
obligations issued by state and local government authorities.
Municipal Bond issues its shares at a price equal to net
asset value plus varying sales charges. Insured Municipal
Bond issues shares of each of its classes at a price equal to
net asset value of such classes plus the appropriate front-
end sales charge, if any.
The following is a summary of significant accounting
policies followed by each Fund in the preparation of their
financial statements in accordance with generally accepted
accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily
available are valued at the mean between the quoted bid and
asked prices or the yield equivalent. Portfolio securities
for which market quotations are not readily available are
valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary
investments in securities that have variable rate and demand
features qualifying them as short-term securities are traded
and valued at amortized cost.
Securities Securities transactions are recorded on a trade date basis.
Transactions Realized gains and losses from such transactions are
determined on the specific identification method. Securities
purchased or sold on a when-issued or delayed delivery basis
may be settled a month or more after the transaction date.
Any securities so purchased are subject to market 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, 1995, there were no such
purchase commitments in either of the Funds.
40
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Interest Income Interest income is determined on the basis of interest
accrued and discount earned, adjusted for amortization of
premiums or discounts on long-term debt securities when
required for federal income tax purposes.
Dividends and Net investment income is declared as a dividend monthly and
Distributions to payment is made or reinvestment is credited to shareholder
Shareholders accounts after month-end. Net realized gains from securities
transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed
available capital loss carryovers.
Distributions to shareholders of net investment income and
net realized gains from investment transactions are recorded
on the ex-dividend date. The amount and timing of such
distributions are determined in accordance with federal
income tax regulations, which may differ from generally
accepted accounting principles. Accordingly, temporary over-
distributions as a result of these differences may result and
will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated
net realized gains from investment transactions, if
applicable.
Federal Income Each Fund is a separate taxpayer for federal income tax
Taxes purposes and intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies by distributing all of its net investment income,
in addition to any significant amounts of net realized gains
from investments, to shareholders. The Funds currently
consider significant net realized gains as amounts in excess
of $.001 per share. Furthermore, each Fund intends to satisfy
conditions which will enable interest from municipal
securities, which is exempt from regular federal income tax,
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, 1995, have been designated
Exempt Interest Dividends.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Insurance Insured Municipal Bond invests in municipal securities which
are covered by insurance guaranteeing timely payment of
principal and interest thereon or backed by an escrow or
trust account containing sufficient U.S. Government or U.S.
Government agency securities to ensure the timely payment of
principal and interest. Each insured municipal security is
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the
value of the Fund's shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the
municipal securities covered thereby remain outstanding and
the insurer remains in business, regardless of whether the
Fund ultimately disposes of such municipal securities.
Consequently, the market value of the municipal securities
covered by Original Issue Insurance or Secondary Market
Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal
securities are held by the Fund. Accordingly, neither the
prices used in determining the market value of the underlying
municipal securities nor the net asset value of the Fund's
shares include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does,
however, give the Fund the right to obtain permanent
insurance with respect to the municipal security covered by
the Portfolio Insurance policy at the time of its sale.
42
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Flexible Sales Effective September 6, 1994, Insured Municipal Bond commenced
Charge Program offering Class "A" Shares and Class "C" Shares. Class "A"
Shares incur a front-end sales charge and an annual 12b-1
service fee. Class "C" Shares are sold without a sales charge
but incur annual 12b-1 distribution and service fees.
Prior to the offering of Class "A" and Class "C" Shares, the
shares outstanding were renamed Class "R" and are not subject
to any 12b-1 distribution or service fees. Effective with the
offering of the new classes, Class "R" Shares are generally
available only for reinvestment of dividends by current "R"
shareholders and for already established Nuveen Unit
Investment Trust reinvestment accounts.
Municipal Bond is not authorized to issue Class "A" Shares
or Class "C" Shares, therefore, in the Notes to Financial
Statements "N/A" represents not-applicable.
Derivative In October 1994, the Financial Accounting Standards Board
Financial (FASB) issued Statement of Financial Accounting Standards No.
Instruments 119 Disclosure about Derivative Financial Instruments and
Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain
derivative financial instruments including futures, forward,
swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may
do so in the future, they did not make any such investments
during the fiscal year ended February 28, 1995, other than
occasional purchases of high quality synthetic money market
securities which were held temporarily pending the re-
investment in long-term portfolio securities.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
2. EXPENSE ALLOCATION
Expenses of the Insured Municipal Bond Fund that are not
directly attributable to any class of shares are prorated
among the classes based on the relative net assets of each
class. Expenses directly attributable to a class of shares
are recorded to the specific class. A breakdown of the class
level expenses, as well as the total fund level expenses, for
the year ended February 28, 1995, are as follows:
<TABLE>
<CAPTION>
INS. MUNI
BOND
- -------------------------------------------------------
<S> <C>
CLASS A
12b-1 service fees $ 9,661
Shareholder servicing agent fees and
expenses 8,467
Shareholder reports-printing and mailing
expenses 6,781
Federal and state registration fees 4,940
----------
Total class level expenses 29,849
Total fund level expenses 19,324
----------
Total expenses before expense
reimbursement 49,173
Less: Expense reimbursement from
investment adviser (10,551)
----------
Net expenses--Class A $ 38,622
----------
CLASS C
12b-1 service fees $ 2,128
12b-1 distribution fees 6,384
Shareholder servicing agent fees and
expenses 597
Shareholder reports-printing and mailing
expenses 438
Federal and state registration fees 1,108
----------
Total class level expenses 10,655
Total fund level expenses 4,261
----------
Total expenses before expense
reimbursement 14,916
Less: Expense reimbursement from
investment adviser (19)
----------
Net expenses--Class C $ 14,897
----------
CLASS R
Shareholder servicing agent fees and
expenses $ 645,719
Shareholder reports-printing and mailing
expenses 261,119
Federal and state registration fees 91,395
----------
Total class level expenses 998,233
Total fund level expenses 3,594,458
----------
Total expenses before expense
reimbursement 4,592,691
Less: Expense reimbursement from
investment adviser --
----------
Net expenses--Class R $4,592,691
----------
Net expenses--Fund $4,646,210
----------
</TABLE>
44
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
3. FUND SHARES
Transactions in shares were as follows:
<TABLE>
<CAPTION>
MUNI BOND INS. MUNI BOND
- ----------------------------------------------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A N/A N/A 1,538,119 --
Class C N/A N/A 474,253 --
Class R 52,970,376 58,943,195 15,709,700 20,708,650
Shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized
gains from investment
transactions:
Class A N/A N/A 10,686 --
Class C N/A N/A 2,644 --
Class R 15,973,465 14,663,493 2,822,384 2,386,849
----------- ----------- ----------- ----------
68,943,841 73,606,688 20,557,786 23,095,499
----------- ----------- ----------- ----------
Shares redeemed:
Class A N/A N/A (193,293) --
Class C N/A N/A (90,862) --
Class R (55,355,782) (33,503,455) (16,561,539) (6,346,641)
----------- ----------- ----------- ----------
(55,355,782) (33,503,455) (16,845,694) (6,346,641)
----------- ----------- ----------- ----------
Net increase 13,588,059 40,103,233 3,712,092 16,748,858
----------- ----------- ----------- ----------
</TABLE>
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. DISTRIBUTIONS TO SHAREHOLDERS
On March 9, 1995, the Funds declared dividend distributions
from their ordinary income which were paid on April 3, 1995,
to shareholders of record on March 9, 1995 as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ---------------------------------------
<S> <C> <C>
Dividend per share:
Class A $ N/A $.0450
Class C N/A .0385
Class R .0430 .0480
------ ------
</TABLE>
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in
municipal securities and temporary municipal investments for
the year ended February 28, 1995, were as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ----------------------------------------------------------------
<S> <C> <C>
PURCHASES
Investments in municipal securities $597,214,116 $211,453,612
Temporary municipal investments 410,185,000 113,800,000
SALES
Investments in municipal securities 448,105,688 176,027,201
Temporary municipal investments 445,685,000 120,400,000
------------ ------------
</TABLE>
At February 28, 1995, the cost of investments for federal
income tax purposes was the same as the cost for financial
reporting purposes for each Fund.
At February 28, 1995, Insured Muni Bond had a capital loss
carryforward of $1,780,735 available for federal income tax
purposes to be applied against future security gains, if any.
If not applied, the carryover will expire in the year 2003.
46
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at February 28, 1995, were as
follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------
<S> <C> <C>
Gross Unrealized:
Appreciation $118,858,244 $29,302,832
Depreciation (36,137,239) (9,885,298)
------------ -----------
Net unrealized appreciation (depreciation) $ 82,721,005 $19,417,534
------------ -----------
</TABLE>
7. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreement with Nuveen
Advisory Corp. (the "Adviser"), a wholly owned subsidiary of
The John Nuveen Company, each Fund pays to the Adviser an
annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset
value of each Fund:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- ----------------------------------------------------
<S> <C>
For the first $125,000,000 .5 of 1%
For the next $125,000,000 .4875 of 1
For the next $250,000,000 .475 of 1
For the next $500,000,000 .4625 of 1
For the next $1,000,000,000 .45 of 1
For net assets over $2,000,000,000 .425 of 1
</TABLE>
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The management fee is reduced by, or the Adviser assumes
certain expenses of each Fund, in an amount necessary to
prevent the total expenses of each Fund (including the
management fee, but excluding interest, taxes, fees incurred
in acquiring and disposing of portfolio securities, 12b-1
Service and Distribution fees, if applicable, and to the
extent permitted, extraordinary expenses) in any fiscal year
from exceeding .75 of 1% of the average daily net asset value
of the Funds.
The management fee referred to above compensates the Adviser
for overall investment advisory and administrative services,
and general office facilities. The Funds pay no compensation
directly to their directors who are affiliated with the
Adviser or to their officers, all of whom receive
remuneration for their services to the Funds from the
Adviser.
8. COMPOSITION OF NET ASSETS
At February 28, 1995, the Funds had common stock authorized
of $.10 par value per share for Municipal Bond and $.01 par
value per share for Insured Municipal Bond. The composition
of net assets as well as the number of authorized shares were
as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- ------------------------------------------------------------------------------
<S> <C> <C>
Capital paid-in $2,654,349,505 $736,951,618
Balance of undistributed net investment income 2,133,643 189,790
Undistributed net realized gain (loss) from
investment transactions, net of taxes, if
applicable 1,973,946 (1,780,735)
Net unrealized appreciation (depreciation) of
investments 82,721,005 19,417,534
-------------- ------------
Net assets $2,741,178,099 $754,778,207
-------------- ------------
Authorized Shares:
Class A N/A 340,000,000
Class C N/A 460,000,000
Class R 750,000,000 200,000,000
-------------- ------------
</TABLE>
48
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At February
28, 1995, the revenue sources by municipal purpose for these
investments, expressed as a percent of total investments,
were as follows:
<TABLE>
<CAPTION>
MUNI INS. MUNI
BOND BOND
- -------------------------------------------
<S> <C> <C>
Revenue Bonds:
Health Care Facilities 12% 21%
Electric Utilities 19 5
Housing Facilities 15 1
Water/Sewer Facilities 7 14
Educational Facilities 1 7
Transportation 6 5
Pollution Control 4 5
Lease Rental Facilities 2 5
Other 9 8
General Obligation Bonds 6 15
Escrowed Bonds 19 14
- -------------------------------------------
100% 100%
</TABLE>
Certain long-term and intermediate-term investments owned by
the Funds are covered by insurance issued by several private
insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, either of
which ensure the timely payment of principal and interest in
the event of default (29% for Municipal Bond, 100% for
Insured Municipal Bond) Such insurance, however, does not
guarantee the market value of the municipal securities or the
value of the Funds' shares.
For additional information regarding each investment
security, refer to the Portfolio of Investments of each Fund.
49
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
---------------------------------------------------------------------
Net realized
and
Net asset unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments** income capital gains
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MUNI BOND
- ----------------------------------------------------------------------------------------------
Year ended
2/28/95 $9.280 $.515 $(.209) $(.511) $(.075)
2/28/94 9.450 .519 (.075) (.516) (.098)
2/28/93 9.080 .555 .414 (.544) (.055)
5 Months ended
2/29/92 9.040 .239 .080 (.239) (.040)
Year ended
9/30/91 8.650 .579 .438 (.589) (.038)
9/30/90 8.730 .596 (.080) (.596) --
9/30/89 8.520 .597 .239 (.597) (.029)
9/30/88 8.020 .596 .536 (.596) (.036)
9/30/87 8.780 .598 (.614) (.598) (.146)
9/30/86 7.830 .595 1.162 (.595) (.212)
9/30/85 7.180 .586 .650 (.586) --
- ----------------------------------------------------------------------------------------------
INS. MUNI BOND
- ----------------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 10.310 .264+ .115 (.273) (.016)
Class C
9/8/94 to 2/28/95 10.290 .227+ .075 (.266) (.016)
Class R
Year ended
2/28/95 10.810 .573 (.407) (.580) (.016)
2/28/94 10.850 .574 .012 (.565) (.061)
2/28/93 10.030 .591 .880 (.589) (.062)
2/29/92 9.690 .612 .425 (.617) (.080)
2/28/91 9.520 .617 .198 (.611) (.034)
2/28/90 9.350 .627 .262 (.630) (.089)
2/29/89 9.300 .629 .050 (.629) --
2/29/88 9.790 .637+ (.490) (.637) --
12/10/86 to 2/28/87 9.600 .127+ .190 (.127) --
- ----------------------------------------------------------------------------------------------
</TABLE>
* Annualized
** Net of taxes, if applicable. See Note 1 of the Notes to Financial
Statements.
+ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser. See note 7 of Notes to Financial Statements.
++ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in net
asset value per share.
50
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
------------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value++ (in thousands) net assets net assets turnover rate
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
$9.000 3.60% $2,741,178 .59% 5.79% 17%
9.280 4.79 2,700,007 .62 5.49 15
9.450 11.04 2,371,669 .61 5.95 14
9.080 3.56 1,835,708 .62* 6.24* 6
9.040 12.15 1,661,420 .60 6.48 10
8.650 6.04 1,323,623 .62 6.78 8
8.730 10.07 1,119,833 .64 6.85 12
8.520 14.50 945,361 .65 7.11 8
8.020 (.39) 764,092 .68 6.85 16
8.780 23.02 668,416 .71 6.95 39
7.830 17.73 459,627 .73 7.68 28
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
10.400 3.84 14,097 1.00*+ 5.55*+ 25
10.310 3.09 3,979 1.75*+ 4.83*+ 25
10.380 1.85 736,702 .64 5.67 25
10.810 5.47 745,914 .65 5.21 11
10.850 15.24 567,232 .72 5.68 20
10.030 11.03 306,853 .73 6.12 45
9.690 8.94 178,931 .85 6.45 53
9.520 9.73 111,806 .83 6.49 78
9.350 7.63 66,049 .87 6.83 106
9.300 2.00 41,330 .60+ 6.93+ 88
9.790 3.31 13,160 -- 4.00*+ --
- ----------------------------------------------------------------------------------------------
</TABLE>
51
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Nuveen Municipal Bond Fund, Inc.
Nuveen Insured Tax-Free Bond Fund, Inc.:
We have audited the accompanying statements of net assets of
NUVEEN MUNICIPAL BOND FUND, INC. (a Maryland corporation) and
NUVEEN INSURED TAX-FREE BOND FUND, INC. (comprised of Nuveen
Insured Municipal Bond Fund) (a Minnesota corporation),
including the portfolios of investments, as of February 28,
1995, 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, 1995, 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 Municipal Bond Fund, Inc. and Nuveen
Insured Tax-Free Bond Fund, Inc. as of February 28, 1995, 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 3, 1995
52
<PAGE>
[PHOTO OF BOOK APPEARS HERE]
At John Nuveen & Co. Incorporated, where our tax-free municipal bonds have
helped people live their dreams for nearly 100 years, we still believe our
strongest bond is human.(TM)
[LOGO]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
The
human bond
For almost a century, John Nuveen & Company has concentrated its resources and
expertise on one area: municipal bonds. We are the oldest and largest investment
banking firm specializing exclusively in municipal securities, and we strive to
be the best.
We maintain a sharp focus on the needs of prudent investors and their
families, offer investments of quality, and then work to make them better by
seeking out opportunity. We hold to a dedicated belief in the importance of
research. And we sustain a commitment to sound financial management through
value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we hope to provide our shareholders
with the attractive level of income they need to achieve their personal goals
and aspirations.
These are the things that matter most, and it's why we say that, at Nuveen,
our strongest bond is human.
<PAGE>
[NUVEEN LOGO APPEARS HERE]
Nuveen Tax-Free
Mutual Funds
Dependable tax-free
income for generations
NUVEEN CALIFORNIA
TAX-FREE VALUE FUND
NUVEEN CALIFORNIA INSURED
TAX-FREE VALUE FUND
NUVEEN MASSACHUSETTS
TAX-FREE VALUE FUND
NUVEEN MASSACHUSETTS INSURED
TAX-FREE VALUE FUND
NUVEEN NEW YORK
TAX-FREE VALUE FUND
NUVEEN NEW YORK INSURED
TAX-FREE VALUE FUND
NUVEEN OHIO
TAX-FREE VALUE FUND
[PHOTO OF COUPLE APPEARS HERE]
ANNUAL REPORT/FEBRUARY 28, 1995
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
16 Portfolio of investments
54 Statement of net assets
56 Statement of operations
58 Statement of changes in net assets
62 Notes to financial statements
76 Financial highlights
<PAGE>
Dear
shareholder
[PHOTO OF RICHARD J. FRANKE APPEARS HERE]
"Providing secure
income remains
our top priority"
The 12 months ended February 28, 1995, were one of the most difficult periods
the bond markets have experienced in decades. The Federal Reserve Board raised
interest rates seven times since the beginning of 1994 to fend off future
inflation. As a result, the prices of all bonds and bond funds declined.
The unusually high volatility of the past year has brought home a basic fact
about bonds: interest rates are subject to change, and sometimes the changes can
have marked effects on net asset values of bonds and bond funds.
At Nuveen, we believe that the best approach to tax-free investing in such
tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives relatively well, providing
an attractive level of tax-free income while holding portfolio values in line
with or better than the market as a whole.
Looking first at income, at fiscal year end current yields on net asset values
for the Class R Shares of the funds covered in this report ranged from 5.34% to
5.77% on February 28. To equal these yields, an investor in the 36% federal
income tax bracket would need to earn at least 8.34% on taxable alternatives.
This yield is difficult to achieve on taxable investments of comparable credit
quality.
3
<PAGE>
Your Fund also maintained its value relatively well during the past year.
While the net asset values of the Class R Shares of the funds in this report
registered declines ranging from 3.73% to 5.68%, the Bond Buyer 40 index-a
measure of the value of newly issued municipal bonds-declined by even more,
slipping 8.5% over the past 12 months. And 30-year Treasury bonds declined by
10.0% during the year.
In this context, we believe that your Fund met the demands of the past year's
market well. And when we take a long-range view of the municipal market, we
believe the outlook for your Fund is positively supported by several
considerations.
First, from November of 1994 through February of 1995, municipal bond yields
declined by nearly a full percent and bond prices started to gain ground. This
development suggests that the underlying inflationary pressures that drove
interest rates higher and bond prices lower may be moderating.
Second, and as we have noted in past reports, the municipal market's supply
and demand fundamentals continue to be sound. To put these trends in
perspective, in 1994, the supply of new municipal bonds declined by
approximately 40% from 1993; and market projections for new issue volume in 1995
are down more than 20% from last year's already low level.
Once investors perceive that the interest rate environment has stabilized,
demand for municipal investments, which has been subdued over the last 12 months
as a result of the market's extraordinary volatility, should resume its long-
term upward trend.
At Nuveen we are taking steps to increase the value our funds provide to
shareholders-steps reflected in last year's introduction of two new share
classes with different sales charge structures and service fees. These new share
classes, designated A Shares and C Shares, give you and your investment adviser
added flexibility in designing a tax-free investment program that meets your
requirements. In addition, these classes also encourage fund growth, which
offsets redemptions and protects portfolio integrity.
We appreciate your trust in our family of funds, and we look forward to
helping you meet your tax-free investment objectives in the future.
Sincerely,
[SIGNATURE OF RICHARD J. FRANKE]
Richard J. Franke
Chairman of the Board
April 17, 1995
<PAGE>
Answering your
questions
We spoke recently with Tom
Spalding, head of Nuveen's portfo-
lio management team, and
asked him about developments in
the municipal market and the
outlook for Nuveen's Tax-Free
Mutual Funds.
Why did my Fund's
net asset value decline
over the past year?
The past 12 months have been a difficult period for all fixed-income investors.
The Federal Reserve raised interest rates seven times from February 1994 through
February 1995, and its actions drove the prices of all bonds and bond funds
lower. Of course, changing interest rates are a fact of life for fixed-income
investments. The important point is that shareholders in these funds were less
affected by rising interest rates than the market overall. In fact, the net
asset values of the funds covered in this report declined less than 6.0% while
the municipal market overall, as measured by the Bond Buyer 40 index, was down
8.5% and as measured by the Lehman Brothers Municipal Bond index, was off 3.97%.
The Bond Buyer 40 index reflects price movements of newly issued long-term
municipal bonds.
5
<PAGE>
[PHOTO OF TOM SPALDING APPEARS HERE] Tom Spalding, head
of Nuveen's portfolio
management team,
answers investors'
questions on develop-
ments in the
municipal market.
While the Lehman Brothers Municipal Bond index reflects the broader
municipal market.
This is one result of our conservative, value-oriented approach to investing;
our funds tend to hold their value better than the market as a whole when
interest rates are rising.
What steps did you
take to moderate
the impact of rising
interest rates
on the value of the
funds' portfolios?
As value investors, we don't manage our portfolios to any specific interest rate
environment. We feel that it's impossible to predict changes in the economy or
interest rates with any degree of accuracy. We try to buy bonds that will
perform well in any interest rate environment, focusing closely on relative
values in the market.
Because of that approach, we didn't need to make major changes in our
portfolios as interest rates rose. For a number of technical reasons, above all
the compression of yields between higher-rated and lower-rated issues that had
been taking place for some time-the best values, in our view, were to be found
in conservative bonds. For some time, we had been concentrating on higher-rated
bonds with maturities in the 15-to-20 year range, as well as bonds priced at
premiums to their par values and pre-refunded issues. We also benefited from an
increase in assets in many of our funds, driven by both higher demand for tax-
free investments and
6
<PAGE>
Nuveen's reinvestment programs. As a result, we weren't under pressure to sell
into difficult markets to meet redemptions.
A record amount of
municipal bonds were
called in 1993-1994.
How did these bond
calls affect my income
and the net asset
value of my shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher need to be replaced with today's lower-yielding bonds. On the other hand,
the fact that your fund's portfolio contained callable bonds provided an
important NAV benefit. Callable bonds with higher-than-market coupons are priced
at premiums to their par value or call price. Callable, high-coupon long-term
bonds, sometimes called "cushion bonds," tend to experience the lower price
volatility of intermediate-term or even shorter-term bonds when rates are low
but rising, as was the case in early 1994. As we saw last year, the premium
coupons of these bonds essentially act as a "cushion" that softens the effect of
rising interest rates.
Of course, we manage all of our portfolios with calls in mind. As part of our
basic management process we continually evaluate opportunities to sell bonds
approaching their call dates and to reinvest the proceeds in bonds we think have
high potential to provide above-market returns.
7
<PAGE>
A number of fund
managers have
encountered problems
recently related to
the use of derivative
securities. Do you use
derivatives in your
portfolios?
Over the last year, participants in the financial services industry, including
securities dealers, underwriters and investment advisers, received much
attention in the press relating to the use of certain types of derivative
financial instruments in the management of portfolios, including those of mutual
funds. There are many different types of derivative investments available in the
market today, including those derivatives whose market values respond to
interest rate changes with greater volatility than do others. In general,
derivatives used to speculate on the future course of interest rates pose the
greatest risk, while derivatives used for hedging purposes present less risk
and, if used properly, can often reduce risk. Synthetic money market securities
generally present no greater risk to investors than ordinary money market
securities.
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, 1995, other than occasional purchases of high
quality synthetic money market securities, which were held temporarily pending
the reinvestment in long-term portfolio securities.
8
<PAGE>
NUVEEN CALIFORNIA
TAX-FREE VALUE FUND
California
INDEX COMPARISON
Nuveen California Tax-Free Value Fund R Shares*
and Lehman Brothers Municipal Bond Index Comparison
of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN CALIFORNIA TAX-FREE VALUE R SHARES*
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION> TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN CALIFORNIA
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX TAX-FREE VALUE FUND
- --------------------- --------------------- -------------------- -------------------
<S> <C> <C> <C>
Measurement Pt-
6/86 $10,000 $10,000 $ 9,525
FYE 8/86 $10,512 $10,512 $ 9,829
FYE 2/87 $11,260 $11,285 $10,614
FYE 8/87 $10,974 $10,998 $ 9,918
FYE 2/88 $11,504 $11,580 $10,531
FYE 8/88 $11,676 $11,754 $10,604
FYE 2/89 $12,160 $12,299 $11,271
FYE 8/89 $12,896 $13,043 $12,043
FYE 2/90 $13,347 $13,559 $12,382
FYE 8/90 $13,662 $13,880 $12,626
FYE 2/91 $14,511 $14,810 $13,441
FYE 8/91 $15,205 $15,518 $14,105
FYE 2/92 $15,891 $16,290 $14,685
FYE 8/92 $16,829 $17,251 $15,618
FYE 2/93 $18,001 $18,532 $16,690
FYE 8/93 $18,800 $19,354 $17,457
FYE 2/94 $18,927 $19,556 $17,539
FYE 8/94 $18,759 $19,382 $17,148
FYE 2/95 $19,208 $19,925 $17,676
</TABLE>
==== Lehman Brothers Municipal Bond Index -- Total $19,925
==== Tax-adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $19,208
==== Nuveen California Tax-Free Value Fund -- Total $17,676
($18,557 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- --------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------------
1 year Since Inception
- --------------------------------------------------------------
<S> <C> <C>
R shares on NAV .78% 7.40%
A shares on NAV 2.52%+
A shares on offering price** -2.10%+
C shares on NAV 3.71%+
- --------------------------------------------------------------
</TABLE>
Shareholders enjoyed a stable dividend for five months followed by a modest
reduction to 4.85 cents per share in August as called bonds were replaced at
lower rates. During the year, the Fund paid dividends totaling 58.70 cents per
share.
As yield differentials between higher and lower-rated bonds and longer-
and shorter- maturities narrowed, the Fund's manager focused attention on
higher-quality bonds with maturities in the 15-to-20 year range, as well
as on pre-refunded bonds.
Essential-purpose issues and tax-allocated bonds supported by strong revenue
streams were also emphasized. We continue to be selective about housing and
healthcare revenue issues and some new types of California bonds, such as
certificates of participation.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25 % annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
9
<PAGE>
NUVEEN CALIFORNIA INSURED
TAX-FREE VALUE FUND
California Insured
INDEX COMPARISON
Nuveen California Ins. Tax-Free Value Fund R Shares* and Lehman Brothers
Municipal Bond Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN CALIFORNIA INS. TAX-FREE VALUE FUND R SHARES
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN CALIFORNIA INS.
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX TAX-FREE VALUE FUND
- --------------------- --------------------- -------------------- ----------------------
<S> <C> <C> <C>
Measurement Pt-
6/86 $10,000 $10,000 $ 9,525
FYE 8/86 $10,512 $10,512 $ 9,763
FYE 2/87 $11,260 $11,285 $10,392
FYE 8/87 $10,974 $10,998 $ 9,662
FYE 2/88 $11,504 $11,580 $10,310
FYE 8/88 $11,676 $11,754 $10,289
FYE 2/89 $12,160 $12,299 $10,940
FYE 8/89 $12,896 $13,043 $11,613
FYE 2/90 $13,347 $13,559 $11,964
FYE 8/90 $13,662 $13,880 $12,158
FYE 2/91 $14,511 $14,810 $13,021
FYE 8/91 $15,205 $15,518 $13,627
FYE 2/92 $15,891 $16,290 $14,313
FYE 8/92 $16,829 $17,251 $15,174
FYE 2/93 $18,001 $18,532 $16,468
FYE 8/93 $18,800 $19,354 $17,194
FYE 2/94 $18,927 $19,556 $17,171
FYE 8/94 $18,759 $19,382 $16,884
FYE 2/95 $19,208 $19,925 $17,459
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $19,925
Tax-adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $19,208
==== Nuveen California Insured Tax-Free Value Fund -- Total $17,459
($18,329 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------------
<S> <C> <C>
R shares on NAV 1.68% 7.24%
A shares on NAV 3.33%+
A shares on offering price** -1.32%+
C shares on NAV 3.45%+
- -----------------------------------------------------------------
</TABLE>
Shareholders enjoyed two dividend increases during the period, bringing the
Fund's monthly dividend from 4.55 cents to 4.70 cents per share on
February 28, 1995. During the year, the Fund paid dividends totaling 55.85 cents
per share.
As interest rates rose and yield differentials between bonds of different
quality ratings and maturities continued to compress, the Fund's manager focused
on higher-quality bonds with maturities in the 15-to-20 year range. Otherwise,
reflecting the insured nature of the bonds in the portfolio, the basic
composition of the portfolio was little changed during the year.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25 % annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
10
<PAGE>
NUVEEN MASSACHUSETTS
TAX-FREE VALUE FUND
Massachusetts
INDEX COMPARISON
Nuveen Massachusetts Tax-Free Value Fund R Shares* and Lehman Brothers Municipal
Bond Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN MASSACHUSETTS TAX-FREE VALUE R SHARES*
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION> TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN MASSACHUSETTS
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX TAX-FREE VALUE FUND
- --------------------- --------------------- -------------------- --------------------
<S> <C> <C> <C>
Measurement Pt-
11/86 $10,000 $10,000 $ 9,525
FYE 2/87 $10,313 $10,322 $ 9,623
FYE 8/87 $10,050 $10,060 $ 8,912
FYE 2/88 $10,533 $10,593 $ 9,327
FYE 8/88 $10,691 $10,751 $ 9,483
FYE 2/89 $11,130 $11,250 $ 9,980
FYE 8/89 $11,804 $11,931 $10,557
FYE 2/90 $12,211 $12,403 $10,838
FYE 8/90 $12,500 $12,696 $10,987
FYE 2/91 $13,260 $13,546 $11,714
FYE 8/91 $13,894 $14,194 $12,318
FYE 2/92 $14,502 $14,900 $12,934
FYE 8/92 $15,358 $15,779 $13,765
FYE 2/93 $16,412 $16,951 $14,773
FYE 8/93 $17,140 $17,703 $15,504
FYE 2/94 $17,234 $17,888 $15,653
FYE 8/94 $17,081 $17,729 $15,432
FYE 2/95 $17,473 $18,225 $15,910
</TABLE>
==== Lehman Brothers Municipal Bond Index -- Total $18,225
==== Adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $17,473
==== Nuveen Massachusetts Tax-Free Value Fund -- Total $15,910
($16,703 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------------
<S> <C> <C>
R shares on NAV 1.64% 6.42%
A shares on NAV 3.05%+
A shares on offering price** -1.59%+
C shares on NAV 4.86%+
- -----------------------------------------------------------------
</TABLE>
Shareholders enjoyed two dividend increases during the period, bringing the
Fund's monthly dividend from 4.40 cents to 4.55 cents per share on February 28,
1995. During the year, the Fund paid dividends totaling 53.80 cents per share.
As interest rates rose and yield differentials between bonds of different
quality ratings and maturities continued to compress, the Fund's manager focused
on higher-quality bonds with maturities in the 15-to-20 year range.
The improved economic and financial condition of the Commonwealth gave a boost
to the value of the bonds in the Fund's portfolio.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
11
<PAGE>
NUVEEN MASSACHUSETTS INSURED
TAX-FREE VALUE FUND
Massachusetts Insured
INDEX COMPARISON
Nuveen Mass. Ins. Tax-Free Value Fund R Shares* and Lehman Brothers Municipal
Bond Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN MASS. INS. TAX FREE VALUE FUND R
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN MASSACHUSETTS
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX INS. TAX-FREE VALUE FUND
- --------------------- ------------------- -------------------- ------------------------
<S> <C> <C> <C>
Measurement Pt-
11/86 $10,000 $10,000 $ 9,525
FYE 2/87 $10,313 $10,322 $ 9,596
FYE 8/87 $10,050 $10,060 $ 9,133
FYE 2/88 $10,533 $10,593 $ 9,706
FYE 8/88 $10,691 $10,751 $ 9,794
FYE 2/89 $11,130 $11,250 $10,273
FYE 8/89 $11,804 $11,931 $10,869
FYE 2/90 $12,211 $12,403 $11,148
FYE 8/90 $12,500 $12,696 $11,335
FYE 2/91 $13,260 $13,546 $12,145
FYE 8/91 $13,894 $14,194 $12,687
FYE 2/92 $14,502 $14,900 $13,308
FYE 8/92 $15,358 $15,779 $14,162
FYE 2/93 $16,412 $16,951 $15,209
FYE 8/93 $17,140 $17,703 $15,906
FYE 2/94 $17,234 $17,888 $16,003
FYE 8/94 $17,081 $17,729 $15,769
FYE 2/95 $17,473 $18,225 $16,287
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $18,225
Adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $17,473
==== Nuveen Massachusetts Ins. Tax-Free Value Fund -- Total $16,287
($17,099 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------------
<S> <C> <C>
R shares on NAV 1.77% 6.72%
A shares on NAV 2.99%+
A shares on offering price** -1.64%+
C shares on NAV 3.52%+
- -----------------------------------------------------------------
</TABLE>
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.45 cents to 4.60 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 54.90 cents per share.
Reflecting the insured nature of the bonds in the portfolio, the basic
composition of the portfolio was little changed during the year. The Fund's
manager continued to concentrate more attention on longer-maturity bonds than
would be the case in an uninsured portfolio. This approach combines an
attractive level of after-tax income with the greater credit protection inherent
in insured bonds under all types of market conditions.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
12
<PAGE>
NUVEEN NEW YORK
TAX-FREE VALUE FUND
New York
INDEX COMPARISON
Nuveen New York Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN NEW YORK TAX-FREE VALUE FUND R
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN NEW YORK
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX TAX-FREE VALUE FUND
- --------------------- ------------------- -------------------- -------------------
<S> <C> <C> <C>
Measurement Pt-
11/86 $10,000 $10,000 $ 9,525
FYE 2/87 $10,309 $10,322 $ 9,956
FYE 8/87 $10,047 $10,060 $ 9,377
FYE 2/88 $10,536 $10,593 $10,064
FYE 8/88 $10,694 $10,751 $10,094
FYE 2/89 $11,142 $11,250 $10,721
FYE 8/89 $11,817 $11,931 $11,358
FYE 2/90 $12,237 $12,403 $11,630
FYE 8/90 $12,526 $12,696 $11,861
FYE 2/91 $13,314 $13,546 $12,426
FYE 8/91 $13,951 $14,194 $13,264
FYE 2/92 $14,591 $14,900 $13,917
FYE 8/92 $15,452 $15,779 $14,897
FYE 2/93 $16,543 $16,951 $15,975
FYE 8/93 $17,277 $17,703 $16,819
FYE 2/94 $17,402 $17,888 $17,109
FYE 8/94 $17,248 $17,729 $16,789
FYE 2/95 $17,675 $18,225 $17,237
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $18,225
Adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $17,675
==== Nuveen New York Tax-Free Value Fund -- Total $17,237
($18,096 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------------
<S> <C> <C>
R shares on NAV .75% 7.46%
A shares on NAV 2.21%+
A shares on offering price** -2.39%+
C shares on NAV 2.80%+
- -----------------------------------------------------------------
</TABLE>
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.75 cents to 4.85 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 57.30 cents per share.
As interest rates rose, the Fund's manager concentrated on bonds maturing in
the 15-to-20 year range, believing that longer-term bonds were relatively
overvalued. The manager also focused on bonds trading at a premium to their par
values, which helped cushion the portfolio against interest-rates.
Reflecting Nuveen's value investing approach and research strengths, emphasis
continued on bonds with call provisions, which are difficult for less
experienced investors to value accurately and tend to trade at attractive
prices.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25 % annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
13
<PAGE>
NUVEEN NEW YORK INSURED
TAX-FREE VALUE FUND
New York Insured
INDEX COMPARISON
Nuveen New York Ins. Tax-Free Value Fund R Shares* and Lehman Brothers Municipal
Bond Index Comparison of Change in Value of a $10,000 Investment
[GRAPH APPEARS HERE]
COMPARISON OF NUVEEN NEW YORK INS. TAX-FREE VALUE FUND R
AND LEHMAN BROTHERS MUNICIPAL BOND INDEX
<TABLE>
<CAPTION>
TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN NEW YORK INS.
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX TAX-FREE VALUE FUND
- --------------------- --------------------- -------------------- --------------------
<S> <C> <C> <C>
Measurement Pt-
11/86 $10,000 $10,000 $ 9,525
FYE 2/87 $10,309 $10,322 $ 9,883
FYE 8/87 $10,047 $10,060 $ 9,189
FYE 2/88 $10,536 $10,593 $ 9,799
FYE 8/88 $10,694 $10,751 $ 9,831
FYE 2/89 $11,143 $11,250 $10,424
FYE 8/89 $11,817 $11,931 $11,037
FYE 2/90 $12,238 $12,403 $11,335
FYE 8/90 $12,527 $12,696 $11,505
FYE 2/91 $13,316 $13,546 $12,199
FYE 8/91 $13,953 $14,194 $12,969
FYE 2/92 $14,594 $14,900 $13,620
FYE 8/92 $15,454 $15,779 $14,450
FYE 2/93 $16,547 $16,951 $15,658
FYE 8/93 $17,281 $17,703 $16,495
FYE 2/94 $17,408 $17,888 $16,530
FYE 8/94 $17,253 $17,729 $16,219
FYE 2/95 $17,682 $18,225 $16,757
</TABLE>
Lehman Brothers Municipal Bond Index -- Total $18,225
Adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $17,682
==== Nuveen New York Insured Tax-Free Value Fund -- Total $16,757
($17,592 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------------
<S> <C> <C>
R shares on NAV 1.37% 7.09%
A shares on NAV 3.01%+
A shares on offering price** -1.62%+
C shares on NAV 3.53%+
- -----------------------------------------------------------------
</TABLE>
Shareholders enjoyed a dividend increase during the period bringing the Fund's
monthly dividend from 4.60 cents to 4.65 cents per share on February 28, 1995.
During the year, the Fund paid dividends totaling 55.45 cents per share.
As interest rates rose during the year, the Fund's manager reduced the
duration of the portfolio--a technical measure of a fund's sensitivity to
interest-rate changes--focusing more attention on bonds with maturities in the
long-intermediate (15-to-20 year) range.
Reflecting the insured nature of the bonds in the portfolio, the basic
composition of the portfolio was little changed during the year. This approach
combines an attractive level of after-tax income with the greater credit
protection inherent in insured bonds under all types of market conditions.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
14
<PAGE>
NUVEEN OHIO
TAX-FREE VALUE FUND
Ohio
INDEX COMPARISON
Nuveen Ohio Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
<TABLE>
<CAPTION>
TAX-ADJUSTED LEHMAN
BROTHERS MUNICIPAL
Measurement Period BOND INDEX (REDUCED LEHMAN BROTHERS NUVEEN OHIO
(Fiscal Year Covered) BY STATE TAX EFFECTS) MUNICIPAL BOND INDEX TAX-FREE VALUE FUND
- --------------------- -------------------- -------------------- -------------------
<S> <C> <C> <C>
Measurement Pt-
11/86 $10,000 $10,000 $ 9,525
FYE 2/87 $10,316 $10,322 $ 9,736
FYE 8/87 $10,053 $10,060 $ 9,209
FYE 2/88 $10,556 $10,593 $ 9,886
FYE 2/89 $11,130 $11,250 $10,273
FYE 8/88 $10,714 $10,751 $ 9,971
FYE 2/89 $11,177 $11,250 $10,612
FYE 8/89 $11,854 $11,931 $11,282
FYE 2/90 $12,287 $12,403 $11,686
FYE 8/90 $12,578 $12,696 $11,938
FYE 2/91 $13,382 $13,546 $12,724
FYE 8/91 $14,022 $14,194 $13,348
FYE 2/92 $14,678 $14,900 $14,023
FYE 8/92 $15,544 $15,779 $14,874
FYE 2/93 $16,655 $16,951 $15,970
FYE 8/93 $17,395 $17,703 $16,819
FYE 2/94 $17,534 $17,888 $16,976
FYE 8/94 $17,378 $17,729 $16,700
FYE 2/95 $17,823 $18,225 $17,314
</TABLE>
==== Lehman Brothers Municipal Bond Index -- Total $18,225
==== Adjusted Lehman Brother's Municipal Bond Index
(reduced by state tax effects) -- Total $17,823
==== Nuveen Ohio Tax-Free Value Fund -- Total $17,314
($18,177 at NAV)
Past performance is not predictive of future performance
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------------
<S> <C> <C>
R shares on NAV 1.99% 7.52%
A shares on NAV 3.63%+
A shares on offering price** -1.03%+
C shares on NAV 3.63%+
- -----------------------------------------------------------------
</TABLE>
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.70 cents to 4.75 cents on February 28, 1995. For the
year, the Fund's monthly dividends totaled 56.90 cents per share.
As interest rates rose during the year, the Fund's manager shortened the
maturity of the portfolio somewhat, focusing on bonds maturing in 15-to-20
years. Significant holdings of pre-refunded bonds also helped moderate the
impact of interest-rate changes on the portfolio's net asset value.
The managers placed more emphasis on general obligation bonds and bonds issued
to support the state's healthcare system. The fund continues to emphasize
education issues supporting state colleges and universities, and transportation
issues.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
15
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 3,150,000 California Educational
Facilities Authority
(University of Southern
California),
7.200%, 10/01/15 10/97 at 102 AA $ 3,322,022
California General
Obligation:
3,000,000 6.250%, 9/01/12 No Opt. Call A1 3,077,280
5,000,000 5.750%, 3/01/23 3/04 at 102 A1 4,690,100
California Health
Facilities Authority
(Small Facilities Pooled
Loan Program):
3,000,000 7.400%, 4/01/14 4/05 at 102 A 3,182,100
3,635,000 7.500%, 4/01/22 4/05 at 102 A 3,832,926
1,700,000 California Health
Facilities Authority
(Sutter Health System),
7.000%, 1/01/09 1/99 at 102 A1 1,738,080
2,000,000 California Health
Facilities Financing
Authority (Health
Dimensions, Inc.), 7.500%,
5/01/15 5/00 at 102 Baa1 2,057,620
2,000,000 California Health
Facilities Financing
Authority (Sisters of
Providence), 7.500%,
10/01/10 10/00 at 102 AA- 2,130,960
4,380,000 California Health
Facilities Authority
(Kaiser Permanente),
7.000%, 12/01/10 12/00 at 102 Aa2 4,557,127
65,000 California Housing Finance
Agency, Insured Housing,
8.450%, 2/01/04 2/00 at 100 Aaa 68,175
2,425,000 California Housing Finance
Agency, Home Mortgage,
8.100%, 8/01/16 8/96 at 102 Aa 2,528,814
8,470,000 California Public Works
Board
(California State
University Project),
6.700%, 10/01/17 10/02 at 102 A- 8,643,296
1,000,000 California Public Works
Board, High Technology
Facilities Lease (The
Regents of the University
of California-San Diego
Facility), 7.375%, 4/01/06 No Opt. Call A1 1,104,150
2,500,000 California Statewide
Communities Development
Corporation (Solheim
Lutheran Home),
Certificates of
Participation, 6.500%,
11/01/17 11/04 at 102 A 2,450,350
3,000,000 California Statewide
Communities Development
Authority (St. Joseph
Health System),
Certificates of
Participation, 6.500%,
7/01/15 7/04 at 102 AA 3,025,980
1,500,000 ABAG Finance Authority for
Nonprofit Corporations
(Channing House),
Certificates of
Participation, 7.125%,
1/01/21 1/01 at 102 A 1,546,485
6,400,000 Alameda County,
Certificates of
Participation, 6.000%,
6/01/22 6/02 at 102 A+ 6,086,848
Arcadia (Methodist Hospital
of Southern California):
1,000,000 6.500%, 11/15/12 11/02 at 102 A 1,005,590
1,500,000 6.625%, 11/15/22 11/02 at 102 A 1,470,900
2,035,000 Bella Vista Water District,
Certificates of
Participation, 7.375%,
10/01/17 10/01 at 102 Baa 2,109,685
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORTFEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Carson Redevelopment
Agency, Tax Allocation:
$ 1,000,000 6.000%, 10/01/13 10/03 at 102 BBB $ 924,130
2,000,000 6.000%, 10/01/16 10/03 at 102 Baa1 1,822,180
2,000,000 Chico Redevelopment Agency
(Sierra Sunrise Lodge),
Certificates of
Participation,
6.750%, 2/01/21 2/01 at 102 A 2,009,580
2,835,000 Chico (Walker Senior
Housing Corporation),
5.700%, 11/01/23 11/03 at 102 A 2,459,391
6,500,000 Contra Costa County, FHA-
Insured (Cedar Pointe
Apartments), 6.150%,
9/01/25 9/03 at 103 AAA 6,304,350
2,000,000 Desert Hospital District,
Certificates of
Participation,
8.100%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 102 AAA 2,315,980
East Bay Municipal Utility
District, Water System:
1,950,000 7.500%, 6/01/18 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 2,200,907
4,000,000 6.000%, 6/01/20 6/02 at 102 AA- 3,935,680
4,000,000 6.375%, 6/01/21 (Pre-
refunded to 12/01/01) 12/01 at 102 Aaa 4,349,800
2,500,000 Fontana Public Financing
Authority, Tax Allocation
(North Fontana
Redevelopment Project),
7.250%, 9/01/20 9/00 at 102 A 2,584,525
1,475,000 LaQuinta Redevelopment
Agency, Tax Allocation,
8.000%, 9/01/12 (Pre-
refunded to 9/01/98) 9/98 at 102 Baa1 1,653,283
2,475,000 Loma Linda University
Medical Center,
6.000%, 12/01/06 12/03 at 102 BBB 2,349,691
4,000,000 Los Angeles Convention and
Exhibition Center
Authority, 5.375%, 8/15/18 8/03 at 102 Aaa 3,645,160
2,505,000 Los Angeles Harbor, 7.600%,
10/01/18 No Opt. Call AAA 2,815,269
280,000 Los Angeles Home Mortgage
(GNMA), 8.100%, 5/01/17 No Opt. Call Aaa 338,974
2,400,000 Los Angeles State Building
Authority, 7.500%, 3/01/11
(Pre-refunded to 3/01/98) 3/98 at 102 AAA 2,620,416
5,000,000 Los Angeles Wastewater
System, 5.700%, 6/01/23 6/03 at 102 Aaa 4,738,000
3,350,000 Los Angeles County
Metropolitan
Transportation Authority,
5.000%, 7/01/21 7/03 at 100 Aaa 2,858,053
4,595,000 Los Angeles County Public
Works Finance Authority
(Los Angeles County
Regional Park and Open
Space), 6.125%, 10/01/10 10/04 at 102 AA 4,665,166
195,000 Los Angeles County, Single
Family Mortgage (GNMA),
8.000%, 3/01/17 No Opt. Call Aaa 220,299
2,000,000 Los Angeles County
Transportation Commission,
Sales Tax, 7.400%, 7/01/15 7/99 at 102 AA- 2,125,280
1,260,000 Marysville Community
Development Agency,
Tax Allocation, 7.250%,
3/01/21 3/02 at 102 Baa 1,300,282
740,000 Menlo Park Community
Development Agency, FHA-
Insured, Multi-Family
Housing,
8.250%, 12/01/28 6/97 at 103 Aa 790,712
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 895,000 Monterey Community
Hospital, 7.375%,
7/01/14 7/96 at 102 A+ $ 936,528
2,165,000 Napa County,
Certificates of
Participation,
5.250%, 5/15/13 5/03 at 102 A1 1,939,970
1,500,000 North City West School
Facilities Authority,
Community Facilities
District No. 1,
7.850%, 9/01/19 9/99 at 102 N/R 1,534,350
Northern California
Power Agency:
1,430,000 7.000%, 7/01/10 7/95 at 100 A- 1,443,499
2,970,000 7.150%, 7/01/24 7/98 at 102 A- 3,049,151
2,120,000 Ontario, Assessment
District No. 100C,
Limited Obligation,
8.000%, 9/02/11 No Opt. Call N/R 2,185,572
2,920,000 Rancho Mirage
Redevelopment Agency,
Tax Allocation, 5.500%,
4/01/29 4/04 at 102 A 2,486,322
1,470,000 Redding Joint Powers
Financing Authority,
6.250%, 6/01/23 6/03 at 102 A 1,424,386
7,290,000 Riverside Multi-Family
Housing,
6.500%, 1/01/18 7/02 at 100 AAA 7,365,306
205,000 Sacramento Municipal
Utility District,
Subordinated Electric,
8.000%, 11/15/10 3/95 at 100 Baa1 205,517
4,000,000 Sacramento Municipal
Utility District,
7.875%, 8/15/16 (Pre-
refunded to 8/15/98) 8/98 at 102 Aaa 4,453,280
2,335,000 Salinas Tax Allocation,
7.400%, 9/02/09 9/95 at 103 N/R 2,406,848
2,080,000 Salinas, GNMA (Villa
Sierra),
6.500%, 7/20/17 7/04 at 102 AAA 2,121,746
5,000,000 San Bernardino Single
Family (GNMA), 7.500%,
5/01/23 No Opt. Call Aaa 5,852,550
2,000,000 San Bernardino (West
Valley Detention
Center), Certificates
of Participation,
7.700%, 11/01/18 (Pre-
refunded to 11/01/98) 11/98 at 102 Aaa 2,225,240
5,000,000 San Francisco City and
County Redevelopment
Financing Authority,
Tax Allocation,
5.125%, 8/01/18 8/03 at 103 A 4,231,350
3,070,000 San Leandro,
Certificates of
Participation,
5.900%, 6/01/13 6/03 at 102 A 2,950,393
1,000,000 San Mateo County Board
of Education,
Certificates of
Participation, 7.100%,
5/01/21 5/99 at 102 A+ 1,033,570
1,420,000 Santa Ana Community
Redevelopment,
7.500%, 9/01/16 9/99 at 102 BBB+ 1,405,019
3,000,000 Santa Cruz Housing
Authority, Multi-Family
Housing (GNMA), 7.750%,
7/01/23 7/00 at 102 AAA 3,220,440
2,000,000 Sonoma County Office of
Education,
Certificates of
Participation,
7.375%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 102 A+ 2,247,780
Southern California
Public Power Authority:
4,760,000 7.000%, 7/01/22 7/96 at 102 1/2 AA 4,937,358
740,000 5.500%, 7/01/23 7/96 at 100 AA 670,277
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORTFEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,825,000 Stockton Hospitals (St.
Joseph Hospital),
6.700%, 6/01/15 3/95 at 106 A- $ 2,829,238
2,330,000 Torrance Hospitals
(Little Company of Mary
Hospital), 6.875%,
7/01/15 7/02 at 102 A 2,364,134
1,100,000 Tulare County,
Certificates of
Participation, 6.875%,
11/15/12 11/02 at 102 N/R 1,125,156
University of California
(UCLA Central
Chiller/Cogeneration):
3,500,000 5.600%, 11/01/20 11/03 at 102 Aa 3,152,974
4,335,000 6.000%, 11/01/21 11/03 at 102 Aa 4,119,333
3,335,000 University of California
Research Facilities,
5.800%, 9/01/23 9/01 at 102 A- 3,057,927
3,420,000 Upland (San Antonio
Community Hospital),
Certificates of
Participation, 5.000%,
1/01/18 1/04 at 102 A 2,691,026
10,000,000 Walnut Creek (John Muir
Medical Center),
Certificates of
Participation, 5.000%,
2/15/16 2/04 at 102 Aaa 8,750,900
- -------------------------------------------------------------------------------
$207,035,000 Total Investments - (cost
$202,079,336) - 97.5% 206,072,736
- -------------------------------------------------------------------------------
- -----------------
----------------
Other Assets Less
Liabilities - 2.5% 5,352,799
- -------------------------------------------------------------------------------
Net Assets - 100% $211,425,535
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 19 $ 66,464,845 32%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 39,961,683 19
PORTFOLIO OF A+ A1 9 22,854,306 11
INVESTMENTS: A, A- A, A2, A3 20 55,712,569 27
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 9 13,827,407 7
Non-rated Non-rated 4 7,251,926 4
- --------------------------------------------------------------------------------------
TOTAL 74 $206,072,736 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
See accompanying notes to financial statements.
19
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 California Educational
Facilities Authority,
Pepperdine University,
7.200%, 11/01/15 (Pre-
refunded to 11/01/00) 11/00 at 102 Aaa $ 1,120,960
5,000,000 California General
Obligation, 5.125%,
10/01/17 10/03 at 102 Aaa 4,400,600
California Health
Facilities Authority
(Kaiser Permanente):
6,000,000 5.450%, 10/01/13 10/01 at 101 Aa2 5,457,780
2,650,000 5.550%, 8/15/25 2/02 at 101 Aaa 2,398,621
5,000,000 California Health
Facilities Financing
Authority (San Diego
Hospital Association),
6.125%, 8/01/22 8/02 at 102 Aaa 5,008,550
6,340,000 California Housing Finance
Agency, 6.850%, 8/01/23 2/02 at 102 Aaa 6,548,649
240,000 California Public Capital
Improvement Finance
Authority (Pooled
Projects), 8.100%, 3/01/18 3/98 at 102 Aaa 259,200
California Public School
District, Finance
Authority (Rescue Union):
1,115,000 6.250%, 9/01/15 9/04 at 102 Aaa 1,136,062
500,000 6.250%, 9/01/20 9/04 at 102 Aaa 505,100
California Public Works
Board, Department of
Corrections (State
Prisons):
5,000,000 7.000%, 9/01/09 (Pre-
refunded to 9/01/00) 9/00 at 102 Aaa 5,544,800
5,250,000 5.750%, 9/01/21 9/01 at 100 Aaa 4,993,433
8,500,000 California Statewide
Community Development
Authority (Sutter Health),
6.125%, 8/15/22 8/02 at 102 Aaa 8,514,790
5,000,000 Alameda County (Santa Rita
Jail Project),
Certificates of
Participation,
5.700%, 12/01/14 12/03 at 102 Aaa 4,755,100
1,225,000 Barstow Redevelopment
Agency, Tax Allocation,
7.000%, 9/01/14 No Opt. Call Aaa 1,392,249
7,000,000 Big Bear Lake Water System,
6.375%, 4/01/22 4/02 at 102 Aaa 7,147,000
Brea Public Financing
Authority, Tax Allocation:
3,525,000 7.000%, 8/01/15 (Pre-
refunded to 8/01/01) 8/01 at 102 Aaa 3,936,755
1,475,000 7.000%, 8/01/15 8/01 at 102 Aaa 1,576,362
3,000,000 Calaveras County Water
District,
Certificates of
Participation,
6.900%, 5/01/16 (Pre-
refunded to 5/01/01) 5/01 at 102 Aaa 3,311,490
2,000,000 Castaic Lake Water Agency,
Certificates of
Participation,
7.125%, 8/01/16 (Pre-
refunded to 8/01/00) 8/00 at 102 Aaa 2,228,220
850,000 Concord Redevelopment
Agency, Tax Allocation,
Central Concord Project,
7.875%, 7/01/07 7/98 at 102 Aaa 935,629
500,000 Cotati-Rohnert Park Unified
School District, 9.000%,
8/01/06 8/99 at 102 Aaa 580,235
4,050,000 Cucamonga County Water
District, Certificates of
Participation,
5.450%, 9/01/23 3/04 at 102 Aaa 3,670,961
2,000,000 East Bay Municipal Utility
District, Water System,
7.500%, 6/01/18 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 2,257,340
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,000,000 Eastern Municipal Water
District, Water and Sewer,
Certificates of
Participation,
6.500%, 7/01/20 (Pre-
refunded to 7/01/01) 7/01 at 102 Aaa $ 2,181,260
3,865,000 Fallbrook Sanitary
District, Certificates of
Participation, 6.600%,
2/01/13 2/01 at 100 Aaa 3,963,480
2,500,000 Fontana Public Financing
Authority, Tax Allocation
(North Fontana
Redevelopment Project),
7.000%, 9/01/10 9/00 at 102 Aaa 2,653,975
6,220,000 Fresno Water System,
5.300%, 6/01/20 6/03 at 101 Aaa 5,604,592
3,000,000 Gilroy Unified School
District, Certificates of
Participation,
6.250%, 9/01/12 9/04 at 102 Aaa 3,079,230
1,000,000 LaQuinta Redevelopment
Agency, Tax Allocation,
7.300%, 9/01/12 No Opt. Call Aaa 1,165,990
5,000,000 Lancaster Redevelopment
Agency, Tax Allocation,
5.800%, 8/01/23 8/03 at 102 Aaa 4,791,850
2,000,000 Los Angeles Convention and
Exhibition Center
Authority, Certificates of
Participation,
7.000%, 8/15/21 (Pre-
refunded to 8/15/00) 8/00 at 102 Aaa 2,217,640
Los Angeles Convention and
Exhibition Center
Authority:
5,500,000 5.375%, 8/15/18 8/03 at 102 Aaa 5,012,095
3,000,000 5.125%, 8/15/21 8/03 at 102 Aaa 2,607,570
285,000 Los Angeles Home Mortgage
(GNMA),
8.100%, 5/01/17 No Opt. Call Aaa 345,027
5,000,000 Los Angeles County
Transportation Commission,
6.250%, 7/01/13 7/02 at 102 Aaa 5,098,600
2,000,000 Marysville (Fremont-Rideout
Health Group), 6.300%,
1/01/22 1/02 at 102 Aaa 2,023,160
1,000,000 Modesto (Golf Course
Project), Certificates of
Participation,
7.300%, 11/01/20 (Pre-
refunded to 11/01/98) 11/98 at 102 Aaa 1,100,010
Modesto Irrigation District
Financing Authority,
Domestic Water Project:
4,500,000 6.125%, 9/01/19 9/02 at 102 Aaa 4,517,640
5,000,000 5.500%, 9/01/22 9/02 at 100 Aaa 4,571,350
2,500,000 Mt. Diablo Hospital
District,
8.000%, 12/01/11 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 2,905,850
2,000,000 Mt. Diablo Unified School
District, Special Tax,
7.050%, 8/01/20 8/00 at 102 Aaa 2,145,120
Napa FHA-Insured (Creekside
Apartments):
2,555,000 6.625%, 7/01/24 7/02 at 102 Aaa 2,524,417
2,000,000 6.625%, 7/01/25 7/04 at 101 Aaa 2,048,620
2,500,000 Oakland Pension Financing,
7.600%, 8/01/21 8/98 at 102 Aaa 2,725,350
4,000,000 Orange County Certificates
of Participation, 5.500%,
6/01/19 6/02 at 100 Aaa 3,622,800
1,250,000 Palm Desert Redevelopment
Agency,
Tax Allocation Project,
7.400%, 5/01/09 5/97 at 101 Aaa 1,318,488
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN CALIFORNIA INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,000,000 Pittsburg Redevelopment
Agency (Los Medanos
Community Project), Tax
Allocation,
7.150%, 8/01/21 8/01 at 103 Aaa $ 2,269,080
1,500,000 Port of Oakland, 7.250%,
11/01/16 5/97 at 102 Aaa 1,578,975
Rancho Cucamonga
Redevelopment Agency:
1,270,000 7.125%, 9/01/19 (Pre-
refunded to 9/01/99) 9/99 at 102 Aaa 1,400,759
1,230,000 7.125%, 9/01/19 9/99 at 102 Aaa 1,317,908
5,000,000 5.500%, 9/01/23 3/04 at 102 Aaa 4,596,800
5,000,000 5.000%, 4/01/24 4/04 at 102 Aaa 4,231,150
Riverside County Desert
Justice Facility
Corporation,
Certificates of
Participation:
3,600,000 6.000%, 12/01/17 12/04 at 101 Aaa 3,551,256
2,500,000 6.250%, 12/01/21 12/04 at 101 Aaa 2,524,050
3,000,000 Sacramento Municipal
Utility District,
Electric System,
6.500%, 9/01/21 (Pre-
refunded to 9/01/01) 9/01 at 102 Aaa 3,275,100
4,150,000 Sacramento County
Airport System,
5.750%, 7/01/24 7/02 at 100 Aaa 3,930,673
2,500,000 San Bernardino County
Transportation
Authority, Sales Tax,
6.000%, 3/01/10 3/02 at 102 Aaa 2,531,175
2,000,000 San Diego Regional
Building Authority,
Lease Revenue (San
Miguel Fire Protection
District),
7.250%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 2,220,860
San Francisco City and
County Redevelopment
Agency (George R.
Moscone Convention
Center):
2,250,000 6.800%, 7/01/19 7/04 at 102 Aaa 2,386,800
1,000,000 6.750%, 7/01/24 7/04 at 102 Aaa 1,056,740
2,250,000 San Jose Redevelopment
Agency, Tax Allocation,
4.750%, 8/01/24 2/04 at 102 Aaa 1,816,088
4,000,000 San Marcos Public
Facilities Authority,
Tax Allocation, 5.500%,
8/01/23 8/03 at 102 Aaa 3,632,720
6,750,000 Southern California
Public Power Authority,
5.000%, 7/01/22 7/03 at 100 Aaa 5,743,912
2,000,000 Southern California
Rapid Transit Finance
Authority, Certificates
of Participation,
7.500%, 7/01/05 1/01 at 102 1/2 Aaa 2,230,540
3,040,000 Sulphur Springs Union
School District,
0.000%, 9/01/15 No Opt. Call Aaa 862,144
</TABLE>
22
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,230,000 Temecula Valley Unified
School District,
General Obligation:
6.000%, 9/01/12 9/02 at 102 Aaa $ 2,241,195
135,000 Thousand Oaks Redevelopment
Agency,
Single Family Mortgage,
7.900%, 1/01/16 1/97 at 102 Aaa 141,236
- -------------------------------------------------------------------------------
$203,300,000 Total Investments - (cost
$194,580,364) - 97.8% 199,443,161
- -------------------------------------------------------------------------------
- -------------------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 0.8%
$ 1,700,000 California Health Facilities
Financing Authority
(St. Joseph Health System),
Series A, Variable Rate
Demand Bonds, 3.700%,
7/01/13+ VMIG-1 1,700,000
- -------------------
- -------------------------------------------------------------------------------
Other Assets Less
Liabilities - 1.4% 2,759,909
- -------------------------------------------------------------------------------
Net Assets - 100% $203,903,070
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 66 $193,985,381 97%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 1 5,457,780 3
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -----------------------------------------------------------------------------------
TOTAL 67 $199,443,161 100%
</TABLE>
- --------------------------------------------------------------------------------
All of the bonds in the portfolio, excluding temporary investments in short-
term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S. Government agency
securities to ensure the timely payment of principal and interest.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
23
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Massachusetts General
Obligation:
$ 165,000 7.250%, 3/01/09 (Pre-
refunded to 3/01/00) 3/00 at 102 Aaa $ 182,759
715,000 5.500%, 2/01/11 2/03 at 102 A 680,022
Massachusetts Bay
Transportation Authority,
General Transportation
System:
250,000 7.750%, 3/01/10 (Pre-
refunded to 3/01/98) 3/98 at 102 Aaa 273,878
1,000,000 7.000%, 3/01/11 (Pre-
refunded to 3/01/01) 3/01 at 102 Aaa 1,106,550
2,000,000 5.500%, 3/01/22 3/03 at 102 Aaa 1,849,520
250,000 Massachusetts Bay
Transportation Authority,
Certificates of
Participation, 7.800%,
1/15/14 12/06 at 100 BBB 278,015
170,000 Massachusetts Educational
Loan Authority,
7.875%, 6/01/03 6/97 at 102 AAA 180,628
1,360,000 Massachusetts Health and
Educational Facilities
Authority (Emerson
Hospital), 8.000%,
7/01/18 7/00 at 102 Baa1 1,428,884
250,000 Massachusetts Health and
Educational Facilities
Authority (Mount Auburn
Hospital),
7.875%, 7/01/18 (Pre-
refunded to 7/01/98) 7/98 at 102 Aaa 276,733
350,000 Massachusetts Health and
Educational Facilities
Authority (Salem
Hospital), 7.250%,
7/01/09 7/97 at 100 Aaa 364,732
500,000 Massachusetts Health and
Educational Facilities
Authority (Cardinal
Cushing General
Hospital), 8.875%,
7/01/18 7/99 at 102 1/2 N/R 522,705
Massachusetts Health and
Educational Facilities
Authority (Suffolk
University):
1,180,000 8.125%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 101 1/2 BBB 1,357,873
1,000,000 6.350%, 7/01/22 7/02 at 102 AAA 1,007,590
500,000 Massachusetts Health and
Educational Facilities
Authority (Newton-
Wellesley Hospital),
8.000%, 7/01/18 7/98 at 102 Aaa 548,540
500,000 Massachusetts Health and
Educational Facilities
Authority, FHA-Insured
(St. Elizabeth's Hospital
of Boston),
7.750%, 8/01/27 (Pre-
refunded to 8/01/97) 8/97 at 102 Aaa 542,510
750,000 Massachusetts Health and
Educational Facilities
Authority (Baystate
Medical Center),
7.500%, 7/01/20 (Pre-
refunded to 7/01/99) 7/99 at 102 A+ 833,775
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Boston
College),
6.625%, 7/01/21 7/01 at 102 Aaa 1,038,450
500,000 Massachusetts Health and
Educational Facilities
Authority (Worcester
Polytechnic Institute),
6.625%, 9/01/17 9/02 at 102 A+ 512,925
495,000 Massachusetts Health and
Educational Facilities
Authority (Brockton
Hospital), 8.000%,
7/01/07 7/97 at 102 A 537,347
250,000 Massachusetts Health and
Educational Facilities
Authority (University
Hospital), 7.250%,
7/01/10 7/00 at 102 Aaa 270,703
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 750,000 Massachusetts Health and
Educational Facilities
Authority (New England
Medical Center), 6.625%,
7/01/25 7/02 at 102 Aaa $ 773,333
1,750,000 Massachusetts Health and
Educational Facilities
Authority (New England
Deaconess Hospital), 6.875%,
4/01/22 4/02 at 102 A 1,764,525
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Metrowest
Health), 6.500%, 11/15/18 11/02 at 102 A 919,740
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Cable Housing and
Health Services), 5.625%,
7/01/13 7/03 at 102 Aaa 948,960
Massachusetts Health and
Educational Facilities
Authority (Lahey Clinic
Medical Center):
1,000,000 5.625%, 7/01/15 7/03 at 102 Aaa 944,970
2,000,000 5.375%, 7/01/23 7/03 at 102 Aaa 1,793,060
Massachusetts Health and
Educational Facilities
Authority (Youville
Hospital):
2,500,000 6.000%, 2/15/25 2/04 at 102 Aa 2,357,825
2,000,000 6.000%, 2/15/34 2/04 at 102 Aa 1,850,880
2,000,000 Massachusetts Housing Finance
Agency,
Housing Project,
6.375%, 4/01/21 4/03 at 102 A1 1,996,060
Massachusetts Housing Finance
Agency,
Residential Development:
1,000,000 6.250%, 11/15/14 11/02 at 102 Aaa 997,630
1,000,000 6.875%, 11/15/21 5/02 at 102 Aaa 1,038,180
Massachusetts Housing Finance
Agency, Single Family
Housing:
500,000 7.350%, 12/01/16 6/01 at 102 Aa 529,045
1,250,000 7.700%, 6/01/17 6/98 at 102 Aa 1,325,650
1,440,000 Massachusetts Industrial
Finance Agency, Pollution
Control (Eastern Edison),
5.875%, 8/01/08 8/03 at 102 Baa2 1,346,659
1,000,000 Massachusetts Industrial
Finance Agency
(Malden Public Library
Project),
7.250%, 1/01/15 1/05 to 102 Aaa 1,099,030
250,000 Massachusetts Industrial
Finance Agency
(College of the Holy Cross),
6.450%, 1/01/12 1/02 at 102 A1 257,605
500,000 Massachusetts Industrial
Finance Agency
(Sturdy Memorial Hospital),
7.900%, 6/01/09 6/99 at 102 BBB+ 522,150
500,000 Massachusetts Industrial
Finance Agency (Springfield
College), 7.800%, 10/01/09 10/99 at 103 A 568,060
1,480,000 Massachusetts Industrial
Finance Agency (Merrimack
College), 7.125%, 7/01/12 7/02 at 102 BBB- 1,527,108
1,600,000 Massachusetts Industrial
Finance Agency
(Phillips Academy), 5.375%,
9/01/23 9/08 at 102 Aa1 1,448,096
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Massachusetts Industrial
Finance Agency
(Whitehead Institute for
Biomedical Research),
5.125%, 7/01/26 7/03 at 102 Aa $ 403,925
1,000,000 Massachusetts Municipal
Wholesale Electric Company,
5.000%, 7/01/17 7/04 at 102 Aaa 857,990
Massachusetts Port Authority:
500,000 7.125%, 7/01/12 7/98 at 100 AA 507,575
635,000 13.000%, 7/01/13 No Opt. Call Aaa 1,094,727
Massachusetts Turnpike
Authority:
500,000 5.000%, 1/01/13 1/03 at 100 A1 445,145
500,000 5.000%, 1/01/20 1/03 at 100 A1 428,355
1,000,000 5.125%, 1/01/23 1/03 at 102 Aaa 864,110
1,500,000 Massachusetts Water Pollution
Abatement, 5.100%, 8/01/08 No Opt. Call Aa 1,402,920
Attleboro General Obligation:
450,000 6.250%, 1/15/10 1/03 at 102 Baa1 450,945
450,000 6.250%, 1/15/11 1/03 at 102 Baa1 450,288
Barnstable General
Obligation:
880,000 5.750%, 9/15/13 9/04 at 102 Aa 847,924
490,000 5.750%, 9/15/14 9/04 at 102 Aa 469,204
Boston General Obligation:
250,000 7.700%, 2/01/09 (Pre-refunded
to 2/01/99) 2/99 at 102 A 277,608
1,000,000 6.750%, 7/01/11 7/01 at 102 Aaa 1,098,310
1,500,000 Boston City Hospital, FHA-
Insured Mortgage, 7.625%,
2/15/21 (Pre-refunded to
8/15/00) 8/00 at 102 Aaa 1,693,695
Boston Water and Sewer
Commission:
180,000 7.875%, 11/01/13 (Pre-
refunded to 11/01/96) 11/96 at 102 A- 192,776
320,000 7.875%, 11/01/13 11/96 at 102 A- 340,304
500,000 7.000%, 11/01/18 (Pre-
refunded to 11/01/01) 11/01 at 102 Aaa 557,860
1,000,000 Boston-Mount Pleasant Housing
Development Corporation,
Multi-Family Housing,
6.750%, 8/01/23 8/02 at 102 AAA 1,022,990
1,000,000 Dartmouth Housing Development
Corporation, Multi-Family
Housing, 7.375%, 7/01/24 1/98 at 103 AAA 1,043,810
Deerfield General Obligation:
420,000 6.200%, 6/15/09 6/02 at 102 A1 445,171
415,000 6.250%, 6/15/10 6/02 at 102 A1 439,045
635,000 Haverhill General Obligation,
7.500%, 10/15/11 10/01 at 102 BBB 676,802
Holyoke General Obligation:
775,000 8.000%, 6/01/01 No Opt. Call Baa 821,523
250,000 8.150%, 6/15/06 6/02 at 103 Aaa 296,735
750,000 7.000%, 11/01/08 11/02 at 102 Baa 795,315
500,000 7.650%, 8/01/09 8/01 at 102 Baa 540,510
Lowell General Obligation:
545,000 8.300%, 2/15/05 No Opt. Call Baa1 617,730
445,000 8.400%, 1/15/09 (Pre-refunded
to 1/15/01) 1/01 at 102 Aaa 524,384
</TABLE>
26
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Lynn General Obligation,
7.850%, 1/15/11 (Pre-
refunded to 1/15/02) 1/02 at 104 Aaa $ 1,174,520
500,000 Monson General Obligation
School Project, 7.700%,
10/15/10 (Pre-refunded
to 10/15/00) 10/00 at 102 Aaa 568,570
Palmer General
Obligation:
500,000 7.700%, 10/01/10 (Pre-
refunded to 10/01/00) 10/00 at 102 Aaa 568,755
500,000 5.500%, 10/01/10 10/03 at 102 Aaa 483,220
1,130,000 Peabody General
Obligation, 6.950%,
8/01/09 8/00 at 100 Aaa 1,211,304
550,000 Quincy Hospital, FHA-
Insured, 7.875%, 1/15/16 7/96 at 102 AAA 583,924
250,000 Sandwich General
Obligation,
7.100%, 11/01/07 (Pre-
refunded to 11/01/98) 11/98 at 102 1/2 Aaa 273,500
1,250,000 Somerville Housing
Authority (GNMA),
7.950%, 11/20/30 5/00 at 102 AAA 1,331,488
425,000 South Essex Sewerage
District, General
Obligation, 9.000%,
12/01/00 No Opt. Call A 504,654
250,000 Southeastern
Massachusetts University
Building Authority,
7.800%, 5/01/16 (Pre-
refunded to 5/01/96) 5/96 at 102 A 263,378
1,000,000 Springfield General
Obligation, 7.100%,
9/01/11 9/02 at 102 Baa 1,031,330
Taunton General
Obligation:
1,465,000 8.000% 2/01/02 No Opt. Call A 1,660,841
1,005,000 8.000% 2/01/03 No Opt. Call A 1,148,614
250,000 University of Lowell
Building Authority,
7.400%, 11/01/07 11/97 at 102 A 266,994
500,000 University of
Massachusetts Building
Authority, 7.500%,
5/01/14 5/98 at 102 A 536,524
1,000,000 Worcester General
Obligation, 6.000%,
8/01/04 8/02 at 102 BBB+ 1,002,980
1,000,000 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/01/17 7/98 at 102 A 1,096,530
- -------------------------------------------------------------------------------
$69,170,000 Total Investments - (Cost
$68,863,593) - 97.7% 71,117,507
- -------------------------------------------------------------------------------
- -------------------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 1.1%
$ 500,000 Massachusetts Dedicated
Income Tax, Variable
Rate Demand Bonds,
3.650%, 12/01/97+ VMIG-1 500,000
300,000 Massachusetts Dedicated
Income Tax, Series
1990E, Variable Rate
Demand Bonds,
3.650%, 12/01/97+ VMIG-1 300,000
- -------------------------------------------------------------------------------
$ 800,000 Total Temporary
Investments - 1.1% 800,000
- -------------------------------------------------------------------------------
- -------------------
Other Assets Less
Liabilities - 1.2% 864,837
- -------------------------------------------------------------------------------
Net Assets - 100% $72,782,344
</TABLE>
- --------------------------------------------------------------------------------
27
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 37 $30,487,648 43%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 10 11,143,044 16
PORTFOLIO OF A+ A1 8 5,358,081 7
INVESTMENTS A, A- A, A2, A3 15 10,757,917 15
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 15 12,848,112 18
TEMPORARY Non-rated Non-rated 1 522,705 1
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 86 $71,117,507 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
28
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Massachusetts General
Obligation:
$ 500,000 6.500%, 6/01/08 6/02 at 101 Aaa $ 524,950
250,000 7.250%, 3/01/09 (Pre-refunded
to 3/01/00) 3/00 at 102 Aaa 277,028
1,200,000 6.000%, 6/01/13 6/02 at 100 Aaa 1,206,864
Massachusetts Bay
Transportation Authority,
General Transportation
System:
250,000 7.250%, 3/01/03 3/00 at 102 Aaa 276,440
250,000 7.100%, 3/01/13 (Pre-refunded
to 3/01/99) 3/99 at 102 Aaa 273,053
1,000,000 5.750%, 3/01/22 3/02 at 100 Aaa 952,660
250,000 Massachusetts Bay
Transportation Authority,
Certificates of
Participation, 7.650%,
8/01/15 8/00 at 102 Aaa 275,650
750,000 Massachusetts College
Building Authority,
7.250%, 5/01/16 5/96 at 102 Aaa 786,278
450,000 Massachusetts Health and
Educational Facilities
Authority (St. Luke's
Hospital of New Bedford),
7.750%, 7/01/13 (Pre-
refunded to 7/01/97) 7/97 at 102 Aaa 486,873
300,000 Massachusetts Health and
Educational Facilities
Authority (Mount Auburn
Hospital),
7.875%, 7/01/18 (Pre-
refunded to 7/01/98) 7/98 at 102 Aaa 332,079
Massachusetts Health and
Educational Facilities
Authority (South Shore
Hospital):
200,000 8.125%, 7/01/17 (Pre-refunded
to 7/01/97) 7/97 at 102 Aaa 218,168
250,000 7.500%, 7/01/20 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 280,793
1,000,000 6.500%, 7/01/22 7/02 at 102 Aaa 1,018,790
800,000 Massachusetts Health and
Educational Facilities
Authority (Berkshire Health
Systems), 7.600%, 10/01/14 10/98 at 102 Aaa 858,784
750,000 Massachusetts Health and
Educational Facilities
Authority (Salem Hospital),
7.250%, 7/01/09 7/97 at 100 Aaa 781,568
250,000 Massachusetts Health and
Educational Facilities
Authority (Capital Asset
Program), 7.200%, 7/01/09 7/99 at 102 Aaa 267,238
500,000 Massachusetts Health and
Educational Facilities
Authority (University
Hospital), 7.250%, 7/01/19 7/00 at 102 Aaa 539,010
250,000 Massachusetts Health and
Educational Facilities
Authority (Newton-Wellesley
Hospital),
8.000%, 7/01/18 7/98 at 102 Aaa 274,270
Massachusetts Health and
Educational Facilities
Authority (Northeastern
University):
250,000 7.600%, 10/01/10 10/98 at 102 Aaa 272,020
1,600,000 6.550%, 10/01/22 10/02 at 100 Aaa 1,659,808
500,000 Massachusetts Health and
Educational Facilities
Authority (Baystate Medical
Center),
7.500%, 7/01/20 (Pre-
refunded to 7/01/99) 7/99 at 102 A+ 555,850
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Massachusetts Health and
Educational Facilities
Authority (Stonehill
College),
7.700%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa $ 566,450
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Boston College),
6.625%, 7/01/21 7/01 at 102 Aaa 1,038,450
500,000 Massachusetts Health and
Educational Facilities
Authority (Berklee College
of Music),
6.875%, 10/01/21 10/01 at 102 Aaa 526,940
1,000,000 Massachusetts Health and
Educational Facilities
Authority (Brigham and
Women's Hospital),
6.750%, 7/01/24 7/01 at 102 Aa 1,013,220
250,000 Massachusetts Health and
Educational Facilities
Authority (Beverly
Hospital),
7.300%, 7/01/19 (Pre-
refunded to 7/01/99) 7/99 at 102 Aaa 275,688
1,500,000 Massachusetts Health and
Educational Facilities
Authority (New England
Medical Center), 6.625%,
7/01/25 7/02 at 102 Aaa 1,546,664
1,450,000 Massachusetts Health and
Educational Facilities
Authority (Boston
University), 6.000%,
10/01/22 10/02 at 100 Aaa 1,438,299
2,000,000 Massachusetts Health and
Educational Facilities
Authority (Bentley College),
6.125%, 7/01/17 7/02 at 102 Aaa 2,006,140
Massachusetts Health and
Educational Facilities
Authority (Lahey Clinic
Medical Center):
750,000 7.600%, 7/01/08 (Pre-refunded
to 7/01/98) 7/98 at 102 Aaa 823,920
2,000,000 5.625%, 7/01/15 7/03 at 102 Aaa 1,889,940
2,500,000 5.375%, 7/01/23 7/03 at 102 Aaa 2,241,325
355,000 Massachusetts Housing Finance
Agency,
7.600%, 12/01/16 12/99 at 103 Aaa 379,470
Massachusetts Housing Finance
Agency, Single Family
Housing:
500,000 7.350%, 12/01/16 6/01 at 102 Aa 529,045
250,000 7.700%, 6/01/17 6/98 at 102 Aa 265,130
1,630,000 Massachusetts Industrial
Finance Agency (Malden
Public Library Project),
7.250%, 1/01/15 1/05 at 102 Aaa 1,791,419
500,000 Massachusetts Industrial
Finance Agency
(Brandeis University),
6.800%, 10/01/19 10/99 at 102 Aaa 521,200
200,000 Massachusetts Industrial
Finance Agency (Harvard
Community Health Plan),
7.750%, 10/01/08 10/98 at 102 Aaa 218,860
250,000 Massachusetts Industrial
Finance Agency
(Milton Academy),
7.250%, 9/01/19 (Pre-
refunded to 9/01/99) 9/99 at 102 Aaa 276,668
375,000 Massachusetts Industrial
Finance Agency
(Museum of Science),
7.300%, 11/01/09 (Pre-
refunded to 11/01/99) 11/99 at 102 Aaa 416,809
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Massachusetts Industrial
Finance Agency (Mount
Holyoke College), 6.300%,
7/01/13 7/01 at 102 Aaa $ 1,021,990
2,000,000 Massachusetts Municipal
Wholesale Electric Company,
5.000%, 7/01/10 7/03 at 102 Aaa 1,802,940
1,000,000 Massachusetts Port Authority,
13.000%, 7/01/13 No Opt. Call Aaa 1,723,980
1,000,000 Massachusetts Turnpike
Authority,
5.125%, 1/01/23 1/03 at 102 Aaa 864,110
1,000,000 Boston General Obligation,
6.750%, 7/01/11 7/01 at 102 Aaa 1,098,310
500,000 Boston City Hospital (FHA-
Insured),
7.625%, 2/15/21 (Pre-
refunded to 8/15/00) 8/00 at 102 Aaa 564,565
Boston Water and Sewer
Commission:
500,000 7.250%, 11/01/06 11/98 at 100 Aaa 532,975
500,000 7.000%, 11/01/18 (Pre-
refunded to 11/01/01) 11/01 at 102 Aaa 557,860
500,000 Fall River General
Obligation, 7.200%, 6/01/10 6/01 at 102 Aaa 543,230
250,000 Groveland Unlimited Tax,
6.900%, 6/15/07 6/01 at 102 Aaa 268,480
1,000,000 Haverhill General Obligation,
6.700%, 9/01/10 9/01 at 102 Aaa 1,056,330
250,000 Holyoke General Obligation,
8.150%, 6/15/06 6/02 at 103 Aaa 296,735
450,000 Leominster General
Obligation, 7.500%, 4/01/09 4/00 at 102 Aaa 493,551
1,625,000 Lowell General Obligation,
5.600%, 11/01/12 11/03 at 102 Aaa 1,549,503
1,025,000 Lynn General Obligation,
6.750%, 1/15/02 No Opt. Call Aaa 1,102,951
250,000 Lynn Water and Sewer
Commission,
7.250%, 12/01/10 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 279,710
1,000,000 Mansfield General Obligation,
6.700%, 1/15/11 1/02 at 102 Aaa 1,056,010
250,000 Methuen General Obligation,
7.400%, 5/15/04 5/00 at 102 Aaa 276,698
500,000 Monson General Obligation
School Project, 7.700%,
10/15/10 (Pre-refunded to
10/15/00) 10/00 at 102 Aaa 568,570
1,500,000 Monson General Obligation,
5.500%, 10/15/10 No Opt. Call Aaa 1,454,040
300,000 North Andover General
Obligation,
7.400%, 9/15/10 9/00 at 103 Aaa 328,281
North Middlesex Regional
School District, General
Obligation:
270,000 7.200%, 6/15/08 6/00 at 103 Aaa 294,146
245,000 7.200%, 6/15/09 6/00 at 103 Aaa 266,438
250,000 Northampton General
Obligation,
5.300%, 3/01/10 3/03 at 102 Aaa 237,103
190,000 Northfield General
Obligation, 6.350%, 10/15/09 10/01 at 102 Aaa 197,423
Palmer General Obligation:
270,000 7.300%, 3/01/10 (Pre-refunded
to 3/01/00) 3/00 at 102 Aaa 299,840
250,000 7.700%, 10/01/10 (Pre-
refunded to 10/01/00) 10/00 at 102 Aaa 284,378
1,000,000 5.500%, 10/01/10 10/03 at 102 Aaa 966,440
440,000 Quaboag Regional School
District, General
Obligation, 6.250%, 6/15/08 6/02 at 102 Aaa 457,552
Salem General Obligation:
500,000 6.800%, 8/15/09 8/01 at 102 Aaa 534,430
900,000 6.000%, 7/15/10 7/02 at 102 Aaa 906,984
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN MASSACHUSETTS INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 250,000 Sandwich General
Obligation,
7.100%, 11/01/07 (Pre-
refunded to 11/01/98) 11/98 at 102 1/2 Aaa $ 273,500
Southern Berkshire
Regional School
District, General
Obligation:
515,000 7.500%, 4/15/07 (Pre-
refunded to 4/15/02) 4/02 at 102 Aaa 587,275
1,145,000 7.000%, 4/15/11 4/02 at 102 Aaa 1,235,249
250,000 Springfield General
Obligation, 7.000%,
11/01/07 11/98 at 103 Aaa 270,360
220,000 Taunton General
Obligation, 6.800%,
9/01/09 9/01 at 103 Aaa 236,581
455,000 Wareham School Project,
General Obligation,
7.050%, 1/15/07 1/01 at 103 Aaa 494,853
250,000 Westfield General
Obligation,
7.100%, 12/15/08 (Pre-
refunded to 12/15/00) 12/00 at 102 Aaa 277,995
215,000 Whately General
Obligation, 6.350%,
1/15/09 1/02 at 102 Aaa 225,264
1,210,000 Winchendon General
Obligation, 6.050%,
3/15/10 3/03 at 102 Aaa 1,228,136
160,000 Worcester General
Obligation, 6.900%,
5/15/07 5/02 at 102 Aaa 174,332
- -------------------------------------------------------------------------------
$54,445,000 Total Investments - (Cost
$54,505,119) - 95.5% 56,772,909
- -------------------------------------------------------------------------------
- -------------------
-----------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 2.9%
$ 1,400,000 Massachusetts Dedicated
Income Tax, Variable
Rate Demand Bonds,
3.650%, 12/01/97+ VMIG-1 1,400,000
300,000 Massachusetts Dedicated
Income Tax, Series
1990E, Variable Rate
Demand Bonds,
3.650%, 12/01/97+ VMIG-1 300,000
- -------------------------------------------------------------------------------
$ 1,700,000 Total Temporary
Investments - 2.9% 1,700,000
- -------------------------------------------------------------------------------
- -------------------
Other Assets Less
Liabilities - 1.6% 958,167
- -------------------------------------------------------------------------------
Net Assets - 100% $59,431,076
</TABLE>
- --------------------------------------------------------------------------------
32
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 77 $54,409,664 96%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 3 1,807,395 3
PORTFOLIO OF A+ A1 1 555,850 1
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- ----------------------------------------------------------------------------------
TOTAL 81 $56,772,909 100%
</TABLE>
- --------------------------------------------------------------------------------
All of the bonds in the portfolio, excluding temporary investments in short-
term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S. Government agency
securities to ensure the timely payment of principal and interest.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
33
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,900,000 New York State Local
Government Assistance
Corporation,
6.250%, 4/01/21 4/02 at 102 A $ 1,901,159
500,000 New York State
(Commissioner of Office of
Mental Health),
Certificates of
Participation,
8.300%, 9/01/12 9/97 at 102 Baa1 529,870
200,000 New York State Housing
Finance Agency, State
University Construction,
8.000%, 5/01/11 No Opt. Call Aaa 241,484
1,650,000 New York State Housing
Finance Agency, Insured
Multi-Family Mortgage,
6.950%, 8/15/12 8/02 at 102 AA 1,737,533
2,000,000 New York State Housing
Finance Agency, Health
Facilities (New York
City), 8.000%, 11/01/08 11/00 at 102 BBB+ 2,212,220
New York State Housing
Finance Agency, Service
Contract Obligation:
2,500,000 6.125%, 3/15/20 9/03 at 102 Baa1 2,411,625
1,650,000 5.500%, 9/15/22 9/03 at 102 Baa1 1,441,556
1,000,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
Insured Mortgage (St.
Vincent's Hospital),
8.000%, 2/15/27 (Pre-
refunded to 8/15/97) 8/97 at 102 Aaa 1,091,530
995,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
Insured Mortgage (Albany
Medical Center),
8.000%, 2/15/28 8/98 at 102 AAA 1,093,077
1,000,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home
(FHA-Insured),
7.350%, 2/15/29 8/99 at 102 AA 1,080,070
1,000,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured (Buffalo
General Hospital),
7.700%, 2/15/22 (Pre-
refunded to 8/15/98) 8/98 at 102 AAA 1,107,800
1,250,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured (Catholic
Medical Center),
8.300%, 2/15/22 (Pre-
refunded to 2/15/98) 2/98 at 102 AAA 1,390,113
2,250,000 New York State Medical Care
Facilities Finance Agency
(Columbia-Presbyterian),
8.000%, 2/15/25 (Pre-
refunded to 8/15/97) 8/97 at 102 Aaa 2,461,455
2,000,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home
(FHA-Insured),
6.200%, 8/15/22 8/02 at 102 AAA 1,994,700
New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured (Mt. Sinai
Hospital):
3,780,000 6.250%, 8/15/12 8/02 at 102 AAA 3,831,030
2,295,000 5.750%, 8/15/19 8/02 at 102 AAA 2,179,562
</TABLE>
34
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,570,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured (Bayley
Seton/St. Joseph's
Hospital), 6.450%, 2/15/09 2/03 at 102 AAA $ 1,624,730
New York State Medical Care
Facilities Finance Agency
(Mental Health Services):
680,000 7.875%, 8/15/15 (Pre-
refunded to 8/15/98) 8/98 at 102 AAA 756,364
320,000 7.875%, 8/15/15 8/98 at 102 Baa1 342,058
1,460,000 7.500%, 2/15/21 (Pre-
refunded to 2/15/01) 2/01 at 102 Aaa 1,648,544
1,795,000 5.250%, 8/15/23 8/03 at 102 Baa1 1,501,607
1,500,000 6.500%, 8/15/24 8/04 at 102 Baa1 1,507,155
500,000 New York State Medical Care
Facilities Finance Agency
(Central Suffolk
Hospital),
6.125%, 11/01/16 11/03 at 102 BBB 437,445
3,000,000 New York State Medical Care
Facilities Finance Agency,
Hospital Insured Mortgage,
5.500%, 8/15/24 2/04 at 102 AAA 2,687,550
2,500,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured (St. Vincent's
Medical Center), 6.200%,
2/15/21 2/04 at 102 AAA 2,493,500
New York State Medical Care
Facilities Finance Agency
(Hospital and Nursing
Home):
2,500,000 6.400%, 8/15/14 8/04 at 102 AAA 2,586,150
955,000 6.000%, 8/15/14 8/04 at 102 AAA 951,715
New York State Medical Care
Facilities Finance Agency,
New York Hospital, FHA-
Insured:
1,000,000 6.750%, 8/15/14 2/05 at 102 Aaa 1,057,210
1,000,000 6.800%, 8/15/24 2/05 at 102 Aaa 1,056,180
380,000 New York State Mortgage
Agency,
8.100%, 10/01/17 4/98 at 102 Aa 404,742
3,000,000 New York State Thruway
Authority,
6.000%, 1/01/25 1/05 at 102 Aaa 2,974,980
300,000 New York State Urban
Development Corporation
(Center for Industrial
Innovation),
7.000%, 1/01/13 1/96 at 102 Baa1 305,349
1,000,000 New York State Urban
Development Corporation,
6.750%, 1/01/26 1/02 at 102 Aaa 1,046,580
1,100,000 New York State Urban
Development Corporation
(Syracuse University
Center for Science and
Technology), 7.875%,
1/01/17 1/98 at 102 Baa1 1,164,504
New York State Urban
Development Corporation,
Correctional Capital
Facilities:
1,250,000 5.500%, 1/01/15 1/03 at 102 Baa1 1,114,175
2,500,000 5.500%, 1/01/16 1/04 at 102 Baa1 2,232,225
1,000,000 7.500%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,118,760
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,000,000 New York State Urban
Development Corporation
(Clarkson Center for
Advanced Materials
Processing), 7.800%,
1/01/20 1/01 at 102 Baa1 $ 2,172,320
2,900,000 New York State Urban
Development
Corporation, State
Facilities, 7.500%
4/01/20 4/01 at 102 Baa1 3,105,697
1,000,000 New York State Urban
Development Corporation
(Cornell Center for
Theory and Simulation),
6.000%, 1/01/14 1/03 at 102 BBB 958,570
2,100,000 Babylon Industrial
Development Agency,
Resource Recovery,
8.500%, 1/01/19 7/98 at 103 Baa1 2,276,904
1,000,000 Batavia Housing
Authority, FHA-Insured
(Washington Towers),
6.500%, 1/01/23 7/01 at 102 Aaa 988,400
5,925,000 Battery Park City
Authority, Junior
Revenue, 5.800%,
11/01/22 11/03 at 102 A 5,359,874
1,000,000 Battery Park City
Authority,
7.700%, 5/01/15 (Pre-
refunded to 5/01/99) 5/99 at 102 Aaa 1,116,770
1,000,000 Brookhaven Industrial
Development Agency,
Civic Facility (Dowling
College/National
Aviation Center),
6.750%, 3/01/23 3/03 at 102 BBB 986,380
375,000 Buffalo General
Obligation,
8.100%, 2/01/14 (Pre-
refunded to 2/01/96) 2/96 at 101 N/R 390,675
500,000 Dormitory Authority of
the State of New York
(Long Island Jewish
Medical Center), FHA-
Insured, 7.750%,
8/15/27 2/98 at 102 AAA 537,315
Dormitory Authority of
the State of New York
(City University):
1,500,000 5.750%, 7/01/07 No Opt. Call Baa1 1,447,230
750,000 7.500%, 7/01/10 No Opt. Call Baa1 840,758
500,000 8.200%, 7/01/13 7/98 at 102 Baa1 555,465
1,000,000 7.625%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,135,980
750,000 Dormitory Authority of
the State of New York,
GNMA (Park Ridge
Housing, Inc.),
7.850%, 2/01/29 2/99 at 102 AAA 811,088
1,985,000 Dormitory Authority of
the State of New York
(United Health
Services), 7.350%,
8/01/29 2/00 at 102 Aaa 2,115,950
2,250,000 Dormitory Authority of
the State of New York,
Judicial Facilities
Lease (Suffolk County),
9.500%, 4/15/14 4/95 at 116 1/2 Baa1 2,625,930
Dormitory Authority of
the State of New York
(State University):
2,000,000 7.400%, 5/15/01 5/00 at 102 Baa1 2,165,700
1,125,000 5.250%, 5/15/09 No Opt. Call Baa1 1,016,989
2,000,000 5.500%, 5/15/13 No Opt. Call Baa1 1,823,840
2,000,000 6.375%, 5/15/14 5/03 at 102 Baa1 1,998,640
</TABLE>
36
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,375,000 Dormitory Authority of
the State of New York
(University of
Rochester, Strong
Memorial Hospital),
5.500%, 7/01/21 7/04 at 102 A1 $ 1,187,120
Dormitory Authority of
the State of New York,
Court Facilities:
1,000,000 5.375%, 5/15/16 5/03 at 101 1/2 Baa1 874,490
5,960,000 5.700%, 5/15/22 5/03 at 101 1/2 Baa1 5,382,416
2,470,000 Dutchess County
Industrial Development
Authority, Civic
Facilities (Bard
College), 7.000%,
11/01/17 11/03 at 102 A 2,519,869
1,000,000 Franklin County
Industrial Development
Agency (County
Correctional
Facility), 6.750%,
11/01/12 11/02 at 102 BBB 1,017,620
800,000 Hempstead Industrial
Development Authority,
Civic Facility (United
Cerebral Palsy
Association of Nassau
County), 7.500%,
10/01/09 10/99 at 102 Aa2 834,008
Metropolitan
Transportation
Authority, Commuter
Facilities:
2,000,000 5.625%, 7/01/16 7/03 at 102 Baa1 1,786,620
1,000,000 6.250%, 7/01/17 7/02 at 102 Aaa 1,014,720
1,000,000 Metropolitan
Transportation
Authority, Commuter
Facilities Service
Contract,
7.500%, 7/01/16 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,130,190
Metropolitan
Transportation
Authority, Transit
Facilities:
1,025,000 6.500%, 7/01/18 7/02 at 102 Aaa 1,059,655
3,095,000 4.750%, 7/01/19 7/03 at 100 Baa1 2,405,774
Monroe County Water
Authority, Water
System:
510,000 5.250%, 8/01/13 8/03 at 101 AA 466,609
1,900,000 5.250%, 8/01/16 8/03 at 101 AA 1,708,214
1,055,000 6.000%, 8/01/17 8/02 at 102 AA 1,019,647
New York City General
Obligation:
2,500,000 7.000%, 8/01/04 No Opt. Call A- 2,608,750
2,000,000 7.500%, 2/01/06 2/02 at 101 1/2 A- 2,125,760
45,000 6.625%, 8/01/13 8/02 at 101 1/2 Aaa 47,231
2,000,000 7.000%, 2/01/21 2/02 at 101 1/2 Aaa 2,124,740
2,500,000 New York City
Educational
Construction Fund,
5.625%, 4/01/13 4/04 at 101 1/2 Aaa 2,397,200
New York City Housing
Development
Corporation, Multi-
Family Mortgage (FHA-
Insured):
2,000,000 6.550%, 10/01/15 4/03 at 102 AAA 2,030,800
2,500,000 5.850%, 5/01/26 5/03 at 102 AA 2,318,200
1,000,000 New York City Housing
Development
Corporation, Multi-
Unit Mortgage (FHA-
Insured),
7.350%, 6/01/19 6/01 at 102 AAA 1,061,380
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
New York City Municipal
Water Finance
Authority, Water and
Sewer System:
$ 500,000 7.375%, 6/15/09 (Pre-
refunded to 6/15/99) 6/99 at 101 1/2 AAA $ 551,830
1,000,000 5.375%, 6/15/19 6/04 at 101 Aaa 913,360
290,000 7.750%, 6/15/20 (Pre-
refunded to 6/15/00) 6/00 at 100 Aaa 301,818
1,500,000 6.600%, 6/15/20 (Pre-
refunded to 6/15/01) 6/01 at 101 1/2 Aaa 1,730,655
210,000 6.000%, 6/15/20 6/00 at 100 Aaa 205,960
1,000,000 New York City Industrial
Development Agency,
Civic Facility, The
American Society for
Prevention of Cruelty
to Animals,
7.700%, 10/15/19 10/99 at 102 Aa3 1,039,720
3,500,000 New York City Industrial
Development Agency,
Civic Facility (The
Lighthouse Project),
6.500%, 7/01/22 7/02 at 102 Aa2 3,499,580
2,440,000 Newark-Wayne Community
Hospital,
7.600%, 9/01/15 9/03 at 102 N/R 2,494,827
Newburgh General
Obligation:
435,000 5.875%, 6/15/10 6/02 at 102 A1 431,707
435,000 5.875%, 6/15/11 6/02 at 102 A1 430,237
1,000,000 Orangetown Housing
Authority, Housing
Facilities (Orangetown
Guaranty),
7.600%, 4/01/30 (Pre-
refunded to 10/01/00) 10/00 at 102 A 1,138,990
South Orangetown Central
School District,
General Obligation:
390,000 6.875%, 10/01/08 No Opt. Call A 430,186
390,000 6.875%, 10/01/09 No Opt. Call A 428,843
3,015,000 Suffolk County
Industrial Development
Agency (Dowling College
Civic Facility),
6.625%, 6/01/24 6/04 at 102 BBB 3,039,571
1,000,000 34th Street Partnership
Business Improvement
District, Capital
Improvement, 5.500%,
1/01/23 1/03 at 102 A1 878,930
Triborough Bridge and
Tunnel Authority:
2,000,000 7.100%, 1/01/10 1/01 at 102 A1 2,122,960
2,000,000 7.100%, 1/01/10 1/01 at 102 Aaa 2,176,480
1,800,000 UFA Development
Corporation, FHA-
Insured (Loretto-Utica
Project), 5.950%,
7/01/35 7/04 at 102 Aa 1,607,885
2,000,000 Westchester County
Industrial Development
Agency, Civic Facility
(Jewish Board of Family
and Children's
Services), 6.750%,
12/15/12 12/02 at 102 BBB- 1,997,660
- -------------------------------------------------------------------------------
$152,580,000 Total Investments -
(cost $149,284,352) -
100.0% $152,688,994
- -------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 0.8%
$ 500,000 New York City General
Obligation, Variable Rate
Demand Bonds, 3.600%,
8/01/21+ VMIG-1 $ 500,000
700,000 Dormitory Authority of the
State of New York
(St. Francis Center at
the Knolls, Inc.),
Variable Rate Demand
Bonds, 3.600%, 7/01/23+ VMIG-1 700,000
- ------------------------------------------------------------------------------
$ 1,200,000 Total Temporary
Investments - 0.8% 1,200,000
- ------------------------------------------------------------------------------
- -------------------
Other Assets Less
Liabilities - (0.8%) (1,160,315)
- ------------------------------------------------------------------------------
Net Assets - 100% $152,728,679
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
STANDARD & POOR'S MOODY'S ISSUES MARKET VALUE PERCENT
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 41 $ 58,844,536 39%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 15,716,208 10
PORTFOLIO OF A+ A1 5 5,050,954 3
INVESTMENTS A, A- A, A2, A3 8 16,513,431 11
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 32 53,678,363 35
TEMPORARY Non-rated Non-rated 2 2,885,502 2
INVESTMENTS):
- ---------------------------------------------------------------------------------------
TOTAL 99 $152,688,994 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
39
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,500,000 New York State Energy
Research and Development
Authority, Pollution
Control (Central Hudson
Gas and Electric
Corporation), 7.375%,
10/01/14 10/99 at 103 Aaa $ 2,715,275
5,500,000 New York State Energy
Research and Development
Authority, Electric
Facilities (Consolidated
Edison Company), 5.250%,
8/15/20 10/03 at 102 Aaa 4,912,380
1,450,000 New York State
Environmental Facilities
Corporation, Water
Pollution Control, Pooled
Loan, 7.200%, 3/15/11 6/00 at 102 Aaa 1,559,388
2,220,000 New York State Housing
Finance Agency,
Multi-Family Housing,
7.450%, 11/01/28 11/99 at 102 Aaa 2,343,499
995,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
Insured Mortgage (Albany
Medical Center),
8.000%, 2/15/28 8/98 at 102 AAA 1,093,077
895,000 New York State Medical Care
Facilities Finance Agency
(St. Francis Hospital),
7.625%, 11/01/21 11/98 at 102 Aaa 973,313
4,765,000 New York State Medical Care
Facilities Finance Agency,
Secured Hospital (Bronx
Lebanon), 7.100%, 2/15/27 2/97 at 102 Aaa 4,960,699
2,000,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured, 7.350%,
2/15/29 8/99 at 102 AA 2,160,140
1,500,000 New York State Medical Care
Facilities Finance Agency,
Hospital and Nursing Home,
FHA-Insured (Catholic
Medical Center),
8.300%, 2/15/22 (Pre-
refunded to 2/15/98) 2/98 at 102 AAA 1,668,135
New York State Medical Care
Facilities Finance Agency,
FHA-Insured (Montefiore
Medical Center)
1,500,000 7.250%, 2/15/24 2/99 at 102 AA 1,579,725
2,000,000 7.250%, 2/15/24 2/99 at 102 Aaa 2,141,280
6,600,000 New York State Medical Care
Facilities Finance Agency
(St. Luke's-Roosevelt
Hospital Center), 7.450%,
2/15/29 (Pre-refunded to
2/15/00) 2/00 at 102 Aaa 7,365,996
3,200,000 New York State Medical Care
Facilities Finance Agency,
Mortgage Project (North
Shore University
Hospital), 7.200%,
11/01/20 11/00 at 102 Aaa 3,427,776
1,670,000 New York State Medical Care
Facilities Finance Agency
(Our Lady of Victory),
6.625%, 11/01/16 11/01 at 102 Aaa 1,728,183
New York State Medical Care
Facilities Finance Agency
(Sisters of Charity of
Buffalo):
500,000 6.600%, 11/01/10 11/01 at 102 Aaa 525,175
1,550,000 6.625%, 11/01/18 11/01 at 102 Aaa 1,599,802
1,000,000 New York State Medical Care
Facilities Finance Agency
(Aurelia Osborn Fox
Memorial Hospital),
6.500%, 11/01/19 11/01 at 102 Aaa 1,021,120
</TABLE>
40
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 3,000,000 New York State Medical Care
Facilities Finance Agency
(South Nassau Communities
Hospital), 6.125%,
11/01/11 11/02 at 102 Aaa $ 3,037,890
New York State Medical Care
Facilities Finance Agency,
Mental Health Services,
Facilities Improvement
Revenue:
1,500,000 5.750%, 2/15/14 8/03 at 102 Aaa 1,444,680
3,250,000 5.700%, 8/15/14 2/03 at 102 Aaa 3,127,995
6,150,000 6.375%, 8/15/17 12/02 at 102 Aaa 6,265,251
2,890,000 6.250%, 8/15/18 2/02 at 102 Aaa 2,909,594
1,100,000 5.500%, 8/15/21 2/02 at 100 Aaa 1,019,249
2,500,000 New York State Medical Care
Facilities Finance Agency
(St. Mary's Hospital
Rochester Project),
6.200%, 11/01/14 11/03 at 102 Aaa 2,532,825
7,000,000 New York State Medical Care
Facilities Finance Agency,
New York Hospital, FHA-
Insured, 6.800%, 8/15/24 2/05 at 102 Aaa 7,393,260
New York State Mortgage
Agency:
225,000 8.375%, 10/01/17 1/98 at 102 Aa 238,448
390,000 8.100%, 10/01/17 4/98 at 102 Aa 415,393
3,500,000 New York State Mortgage
Agency, Homeowner
Mortgage, 5.650%, 4/01/15 10/03 at 102 Aaa 3,257,555
New York State Thruway
Authority:
7,300,000 5.750%, 1/01/19 1/02 at 102 Aaa 7,006,905
3,950,000 5.500%, 1/01/23 1/02 at 100 Aaa 3,643,915
5,000,000 6.000%, 1/01/25 1/05 at 102 Aaa 4,958,300
New York State Urban
Development Corporation:
3,850,000 6.700%, 1/01/12 1/02 at 102 Aaa 4,056,707
9,650,000 6.750%, 1/01/26 1/02 at 102 Aaa 10,099,497
New York State Urban
Development Corporation,
Correctional Facilities:
1,500,000 7.250%, 1/01/14 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,665,645
3,000,000 5.250%, 1/01/14 No Opt. Call Aaa 2,757,360
575,000 7.000%, 1/01/17 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 632,126
9,200,000 5.250%, 1/01/18 1/03 at 102 Aaa 8,262,980
2,000,000 7.500%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 2,237,520
2,000,000 New York State Power
Authority, General
Purpose, 6.500%, 1/01/19 1/02 at 102 Aaa 2,059,340
Albany Municipal Water
Finance Authority, Water
and Sewer System:
720,000 7.500%, 12/01/17 (Pre-
refunded to 12/01/98) 12/98 at 102 Aaa 795,211
280,000 7.500%, 12/01/17 12/98 at 102 Aaa 305,410
1,000,000 Buffalo General Obligation,
6.150%, 2/01/04 1/01 at 101 Aaa 1,045,870
8,385,000 Buffalo Municipal Water
Finance Authority, Water
System, 5.750%, 7/01/19 7/03 at 102 Aaa 8,035,010
</TABLE>
41
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Camden Central School
District, General
Obligation:
$ 500,000 7.100%, 6/15/07 No Opt. Call Aaa $ 574,145
600,000 7.100%, 6/15/08 No Opt. Call Aaa 689,022
600,000 7.100%, 6/15/09 No Opt. Call Aaa 688,956
275,000 7.100%, 6/15/10 No Opt. Call Aaa 315,139
1,690,000 Dormitory Authority of the
State of New York, College
and University (Pooled
Capital Program), 7.800%,
12/01/05 12/98 at 102 Aaa 1,858,611
1,490,000 Dormitory Authority of the
State of New York (United
Health Services), 7.350%,
8/01/29 2/00 at 102 AAA 1,588,295
1,490,000 Dormitory Authority of the
State of New York (Iona
College), 7.625%, 7/01/09 7/98 at 102 Aaa 1,625,441
1,000,000 Dormitory Authority of the
State of New York (United
Cerebral Palsy Association
of Westchester County),
6.200%, 7/01/12 7/02 at 102 Aaa 1,024,820
1,000,000 Dormitory Authority of the
State of New York
(Manhattanville College),
7.500%, 7/01/22 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,130,190
Dormitory Authority of the
State of New York (City
University System):
2,500,000 7.000%, 7/01/14 7/00 at 102 Aaa 2,663,175
1,000,000 6.500%, 7/01/14 7/96 at 100 Aaa 1,007,780
1,800,000 5.750%, 7/01/18 No Opt. Call Aaa 1,743,696
6,295,000 7.500%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 7,114,546
2,500,000 Dormitory Authority of the
State of New York (Cooper
Union), 7.200%, 7/01/20 7/01 at 102 Aaa 2,690,400
Dormitory Authority of the
State of New York,
Educational Facilities
(State University):
1,200,000 7.250%, 5/15/15 (Pre-
refunded to 5/15/00) 5/00 at 102 Aaa 1,339,824
2,500,000 5.250%, 5/15/15 No Opt. Call Aaa 2,292,800
1,200,000 7.000%, 5/15/18 (Pre-
refunded to 5/15/00) 5/00 at 102 Aaa 1,319,820
2,000,000 6.500%, 5/15/19 5/00 at 100 Aaa 2,126,580
1,000,000 6.000%, 5/15/22 5/03 at 102 Aaa 989,310
5,000,000 Dormitory Authority of the
State of New York (New
York University), 6.250%,
7/01/09 7/01 at 102 Aaa 5,173,350
1,000,000 Dormitory Authority of the
State of New York (Fordham
University),
7.200%, 7/01/15 (Pre-
refunded to 7/01/00) 7/00 at 102 Aaa 1,116,290
5,000,000 Dormitory Authority of the
State of New York (Mount
Sinai School of Medicine),
5.000%, 7/01/21 7/04 at 102 Aaa 4,318,200
1,000,000 Erie County Water
Authority, Water Works
System, 6.750%, 12/01/14 No Opt. Call Aaa 1,105,730
500,000 Greece Central School
District, General
Obligation, 6.000%,
6/15/09 No Opt. Call Aaa 523,465
</TABLE>
42
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Half Moon General
Obligation:
$ 385,000 6.500%, 6/01/09 No Opt. Call Aaa $ 419,869
395,000 6.500%, 6/01/10 No Opt. Call Aaa 428,982
395,000 6.500%, 6/01/11 No Opt. Call Aaa 429,037
600,000 Jamesville-Dewitt
Central School
District,
General Obligation,
5.750%, 6/15/04 No Opt. Call Aaa 620,454
1,425,000 Metropolitan
Transportation
Authority,
Commuter Facilities,
5.500%, 7/01/17 7/02 at 100 Aaa 1,334,498
1,000,000 Metropolitan
Transportation
Authority, Transit
Facilities Service
Contract, 7.500%,
7/01/17 7/98 at 102 Aaa 1,081,970
Metropolitan
Transportation
Authority, Transit
Facilities:
2,000,000 6.000%, 7/01/16 7/02 at 101 1/2 Aaa 1,999,800
10,340,000 6.500%, 7/01/18 7/02 at 102 Aaa 10,689,595
Middle Country Central
School District at
Centereach (Town of
Brookhaven), General
Obligation:
475,000 6.900%, 12/15/07 No Opt. Call Aaa 537,814
475,000 6.900%, 12/15/08 No Opt. Call Aaa 536,194
Monroe County General
Obligation:
375,000 6.500%, 6/01/15 6/01 at 102 Aaa 392,603
375,000 6.500%, 6/01/16 6/01 at 102 Aaa 392,201
350,000 6.500%, 6/01/17 6/01 at 102 Aaa 365,306
3,725,000 Montgomery, Otsego,
Schoharie County Solid
Waste Management
Authority,
Solid Waste System,
7.250%, 1/01/14 (Pre-
refunded to 1/01/00) 1/00 at 103 Aaa 4,147,713
Mount Sinai Union Free
School District,
General Obligation:
1,000,000 7.250%, 2/15/15 (Pre-
refunded to 2/15/00) 2/00 at 102 Aaa 1,106,460
500,000 6.200%, 2/15/15 No Opt. Call Aaa 525,275
1,035,000 6.200%, 2/15/16 No Opt. Call Aaa 1,091,283
1,000,000 7.250%, 2/15/17 (Pre-
refunded to 2/15/00) 2/00 at 102 Aaa 1,106,460
1,500,000 Nassau County General
Obligation,
5.700%, 8/01/13 8/04 at 103 Aaa 1,469,775
4,840,000 Nassau County Industrial
Development Agency,
Civic Facilities
(Hofstra University
Project), 6.750%,
8/01/11 8/01 at 102 Aaa 5,109,733
1,020,000 New Rochelle General
Obligation,
6.200%, 8/15/22 8/04 at 102 Aaa 1,042,644
</TABLE>
43
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
New York City General
Obligation:
$ 500,000 8.250%, 11/01/02 11/97 at 101 1/2 Aaa $ 546,600
4,000,000 6.250%, 8/01/10 (Pre-
refunded to 8/01/02) 8/02 at 101 1/2 Aaa 4,294,200
1,000,000 6.250%, 8/01/10 8/02 at 101 1/2 Aaa 1,030,800
3,520,000 5.750%, 5/15/12 5/03 at 101 1/2 Aaa 3,396,694
75,000 6.625%, 8/01/12 8/02 at 101 1/2 Aaa 78,662
2,600,000 6.000%, 8/01/12 8/02 at 101 1/2 Aaa 2,618,434
1,300,000 7.000%, 10/01/15 No Opt. Call Aaa 1,347,190
2,000,000 7.000%, 10/01/16 No Opt. Call Aaa 2,131,800
1,025,000 7.000%, 10/01/17 No Opt. Call Aaa 1,062,208
310,000 7.000%, 10/01/18 No Opt. Call Aaa 321,504
1,000,000 5.375%, 10/01/20 10/03 at 101 1/2 Aaa 898,290
1,000,000 5.375%, 10/01/21 10/03 at 101 1/2 Aaa 896,690
1,000,000 New York City
Educational
Construction Fund,
5.625%, 4/01/13 4/04 at 101 1/2 Aaa 958,880
11,980,000 New York City Health and
Hospitals Corporation,
5.750%, 2/15/22 2/03 at 102 Aaa 11,382,797
5,000,000 New York City Housing
Development
Corporation, Pass-
Through Certificates,
Multi-Family Housing,
6.500%, 2/20/19 7/97 at 105 Aaa 5,779,050
New York City Municipal
Water Finance
Authority, Water and
Sewer System:
1,000,000 7.250%, 6/15/15 (Pre-
refunded to 6/15/00) 6/00 at 101 1/2 Aaa 1,114,030
3,250,000 6.750%, 6/15/16 6/01 at 101 Aaa 3,412,930
9,265,000 5.750%, 6/15/18 6/02 at 101 1/2 Aaa 8,908,020
1,525,000 5.375%, 6/15/19 6/04 at 101 Aaa 1,392,874
585,000 6.000%, 6/15/20 (Pre-
refunded to 6/15/00) 6/00 at 100 Aaa 608,839
415,000 6.000%, 6/15/20 6/00 at 100 Aaa 407,015
New York City Transit
Authority, Transit
Facilities (Livingston
Plaza Project):
1,000,000 7.500%, 1/01/20 (Pre-
refunded to 1/01/00) 1/00 at 102 Aaa 1,123,360
12,225,000 5.250%, 1/01/20 1/03 at 100 Aaa 10,761,668
1,500,000 6.000%, 1/01/21 1/00 at 100 Aaa 1,470,900
2,200,000 New York City Trust for
Cultural Resources
(American Museum of
Natural History),
6.900%, 4/01/21 (Pre-
refunded to 4/01/01) 4/01 at 102 Aaa 2,441,032
1,000,000 New York City Industrial
Development Agency,
Civic Facility (USTA
National Tennis Center
Incorporated Project),
6.375%, 11/15/14 11/04 at 102 Aaa 1,025,180
1,590,000 Niagara Falls General
Obligation, 6.900%,
3/01/21 3/04 at 102 Aaa 1,700,108
5,725,000 Niagara Falls Bridge
Commission,
Toll Bridge System,
6.125%, 10/01/19 (Pre-
refunded to 10/01/02) 10/02 at 102 Aaa 6,138,345
</TABLE>
44
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
North Hempstead General
Obligation:
$ 1,500,000 6.375%, 4/01/09 No Opt. Call Aaa $ 1,601,580
425,000 6.800%, 6/01/10 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 464,228
425,000 6.800%, 6/01/11 (Pre-
refunded to 6/01/00) 6/00 at 102 Aaa 464,228
1,505,000 6.400%, 4/01/14 No Opt. Call Aaa 1,622,842
North Hempstead Solid Waste
Management Authority:
2,175,000 5.000%, 2/01/07 2/04 at 102 Aaa 2,046,240
2,825,000 5.000%, 2/01/12 2/04 at 102 Aaa 2,527,132
Nyack Union Free School
District:
625,000 6.500%, 4/01/12 4/02 at 102 Aaa 656,881
625,000 6.500%, 4/01/13 4/02 at 102 Aaa 655,531
625,000 6.500%, 4/01/14 4/02 at 102 Aaa 654,181
Rensselaer County General
Obligation:
960,000 6.700%, 2/15/13 No Opt. Call Aaa 1,075,123
960,000 6.700%, 2/15/14 No Opt. Call Aaa 1,071,562
960,000 6.700%, 2/15/15 No Opt. Call Aaa 1,074,778
Rondout Valley Central
School District, General
Obligation:
550,000 6.800%, 6/15/06 No Opt. Call Aaa 616,902
550,000 6.850%, 6/15/07 No Opt. Call Aaa 618,288
550,000 6.850%, 6/15/08 No Opt. Call Aaa 618,211
550,000 6.850%, 6/15/09 No Opt. Call Aaa 618,706
550,000 6.850%, 6/15/10 No Opt. Call Aaa 618,448
Suffolk County General
Obligation:
1,000,000 6.900%, 4/01/01 4/00 at 102 Aaa 1,094,060
1,895,000 5.250%, 7/15/09 7/02 at 102 Aaa 1,787,080
600,000 6.150%, 5/01/10 5/03 at 102 Aaa 616,002
1,890,000 5.300%, 7/15/10 7/02 at 102 Aaa 1,783,536
1,630,000 5.400%, 4/01/11 4/02 at 102 Aaa 1,552,461
1,860,000 5.400%, 7/15/11 7/02 at 102 Aaa 1,757,440
1,000,000 5.400%, 7/15/12 7/02 at 102 Aaa 940,850
630,000 5.400%, 4/01/14 4/02 at 102 Aaa 593,473
625,000 5.400%, 4/01/15 4/02 at 102 Aaa 576,038
560,000 5.000%, 10/15/16 10/03 at 102 Aaa 487,105
Suffolk County Water
Authority:
1,800,000 5.100%, 6/01/11 No Opt. Call Aaa 1,643,562
1,500,000 7,125%, 6/01/15 (Pre-
refunded to 6/01/99) 6/99 at 102 Aaa 1,647,480
2,565,000 5.625%, 6/01/16 6/02 at 102 Aaa 2,447,061
3,700,000 5.000%, 6/01/17 6/03 at 102 Aaa 3,256,629
</TABLE>
45
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN NEW YORK INSURED TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Triborough Bridge and
Tunnel Authority,
General Purpose:
$ 1,000,000 6.500%, 1/01/15 (Pre-
refunded to 1/01/99) 1/99 at 101 1/2 Aaa $ 1,066,330
2,750,000 6.500%, 1/01/19 1/02 at 101 1/2 Aaa 2,837,284
2,000,000 7.000%, 1/01/20 (Pre-
refunded to 1/01/01) 1/01 at 102 Aaa 2,221,660
1,175,000 7.000%, 1/01/21 (Pre-
refunded to 1/01/01) 1/01 at 101 1/2 Aaa 1,300,842
1,500,000 6.000%, 1/01/22 (Pre-
refunded to 1/01/01) 1/01 at 100 Aaa 1,565,414
Triborough Bridge and
Tunnel Authority,
Special Obligation:
8,650,000 6.875%, 1/01/15 1/01 at 102 Aaa 9,205,935
3,700,000 6.000%, 1/01/19 1/01 at 100 Aaa 3,701,442
1,750,000 Yonkers General
Obligation,
7.375%, 12/01/09 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 1,970,150
- -------------------------------------------------------------------------------
$343,840,000 Total Investments -
(cost $339,542,219) -
99.0% 349,130,945
- -------------------------------------------------------------------------------
- -------------------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 0.4%
$ 1,400,000 New York City General
Obligation, Variable
Rate
- -------------------
Demand Bonds, 3.950%,
2/01/22+ VMIG-1 1,400,000
- -------------------------------------------------------------------------------
Other Assets Less
Liabilities - 0.6% 2,133,191
- -------------------------------------------------------------------------------
Net Assets - 100% $352,664,136
</TABLE>
- --------------------------------------------------------------------------------
46
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 151 $344,737,239 99%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 4 4,393,706 1
PORTFOLIO OF
INVESTMENTS
(EXCLUDING
TEMPORARY
INVESTMENTS):
- -----------------------------------------------------------------------------------
TOTAL 155 $349,130,945 100%
</TABLE>
- --------------------------------------------------------------------------------
All of the bonds in the portfolio, excluding temporary investments in short-
term municipal securities, are either covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S. Government agency
securities to ensure the timely payment of principal and interest.
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
47
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Ohio Air Quality
Development Authority,
Pollution Control (Ohio
Edison Company):
$ 2,000,000 7.450%, 3/01/16 3/00 at 102 Aaa $ 2,172,600
750,000 7.625%, 7/01/23 7/99 at 102 Baa3 762,848
5,650,000 5.625%, 11/15/29 11/03 at 102 Aaa 5,279,417
1,750,000 Ohio Air Quality
Development Authority,
Pollution Control
(Columbus Southern Power
Company), 6.375%,
12/01/20 12/02 at 102 Aaa 1,801,643
1,000,000 Ohio Air Quality
Development Authority,
Pollution Control (Ohio
Power Company), 7.400%,
8/01/09 8/99 at 102 Baa1 1,035,460
2,000,000 Ohio Air Quality
Development Authority,
Pollution Control
(Cleveland Electric
Illuminating Company),
8.000%, 12/01/13 6/02 at 103 Aaa 2,303,460
Ohio Building Authority
(State Correctional
Facilities):
1,000,000 7.125%, 9/01/09 9/96 at 102 A1 1,045,630
1,000,000 5.500%, 10/01/12 10/03 at 102 A1 938,830
660,000 Ohio Building Authority
(Juvenile Correctional
Building), 6.600%,
10/01/14 10/04 at 102 Aaa 699,481
1,250,000 Ohio Capital Corporation
for Housing,
Multi-Family Housing,
7.600%, 11/01/23 11/97 at 105 AAA 1,330,338
1,935,000 Ohio General Obligation,
6.000%, 8/01/10 No Opt. Call AA 1,983,917
250,000 Ohio Higher Educational
Facility Commission (Ohio
Dominican College),
8.500%, 12/01/07 12/97 at 102 N/R 281,455
400,000 Ohio Higher Educational
Facility Commission (John
Carroll University),
9.250%, 10/01/07 (Pre-
refunded to 10/01/97) 10/97 at 102 A 450,356
1,000,000 Ohio Higher Educational
Facility Commission (Ohio
Wesleyan University),
7.650%, 11/15/07 11/97 at 102 Aaa 1,078,550
1,000,000 Ohio Higher Educational
Facility Commission (Ohio
Northern University),
7.300%, 5/15/10 (Pre-
refunded to 5/15/00) 5/00 at 100 Aaa 1,098,060
1,000,000 Ohio Higher Educational
Facility Commission
(Kenyon College), 5.375%,
12/01/16 12/03 at 102 A+ 897,680
1,500,000 Ohio Higher Educational
Facility Commission
(University of Dayton),
5.800%, 12/01/19 12/04 at 102 Aaa 1,472,775
Ohio Housing Finance
Agency, Single Family
Mortgage (GNMA):
765,000 7.500%, 9/01/13 9/00 at 102 AAA 818,030
990,000 7.400%, 9/01/15 3/00 at 102 AAA 1,044,054
370,000 7.050%, 9/01/16 9/01 at 102 Aaa 388,304
2,500,000 Ohio Turnpike Commission,
5.750%, 2/15/24 2/04 at 102 AA- 2,398,000
3,000,000 Ohio Water Development
Authority (Dayton Power
and Light Company),
6.400%, 8/15/27 8/02 at 102 AA- 3,044,490
</TABLE>
48
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 3,000,000 Ohio Water Development
Authority, Pollution
Control (Ohio Edison
Company),
5.950%, 5/15/29 11/03 at 102 Baa2 $ 2,561,700
155,000 Ohio IOOF Home (FHA-
Insured),
8.150%, 8/01/02 8/97 at 103 AAA 168,161
3,955,000 Akron General Obligation,
Limited Tax,
6.750%, 12/01/14 12/04 at 102 Aaa 4,250,597
1,500,000 Akron Waterworks System,
6.550%, 3/01/12 3/01 at 102 Aaa 1,568,310
500,000 Anthony Wayne Local School
District, General
Obligation, Unlimited Tax,
7.750%, 11/01/13 (Pre-
refunded to 11/01/99) 11/99 at 102 A 563,905
1,525,000 Bedford Hospital (Community
Hospital),
8.500%, 5/15/09 5/00 at 102 N/R 1,793,980
Bellefontaine Sewer System:
1,000,000 6.800%, 12/01/07 12/02 at 101 Baa1 1,048,900
1,000,000 6.900%, 12/01/11 12/02 at 101 Baa1 1,043,200
250,000 Bucyrus Sewer System,
8.500%, 12/01/12 (Pre-
refunded to 12/01/97) 12/97 at 103 N/R 280,528
1,250,000 Butler County Hospital
Facilities (Fort Hamilton-
Hughes Memorial Hospital),
7.500%, 1/01/10 1/02 at 102 BBB- 1,279,600
1,000,000 Canal Winchester Local
School District, General
Obligation, Unlimited Tax,
7.100%, 12/01/13 (Pre-
refunded to 12/01/01) 12/01 at 102 Aaa 1,122,350
1,000,000 Clermont County, Road
Improvement, Limited Tax,
7.125%, 9/01/11 (Pre-
refunded to 9/01/00) 9/00 at 102 Aaa 1,109,800
Clermont County Sewer
System:
2,000,000 7.375%, 12/01/20 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 2,250,000
1,000,000 7.100%, 12/01/21 (Pre-
refunded to 12/01/01) 12/01 at 102 Aaa 1,118,701
2,500,000 5.200%, 12/01/21 12/03 at 102 Aaa 2,250,250
Clermont County Waterworks
System:
1,000,000 6.625%, 12/01/13 (Pre-
refunded to 12/01/01) 12/01 at 102 Aaa 1,093,760
3,000,000 5.800%, 12/01/18 12/03 at 102 Aaa 2,950,320
1,345,000 Cleveland City School
District, 7.000%, 4/15/95 No Opt. Call N/R 1,342,902
2,000,000 Cleveland City School
District, General
Obligation, Unlimited Tax,
5.875%, 12/01/11 12/02 at 102 Aaa 2,019,740
1,500,000 Cleveland Public Power
System, 7.000%, 11/15/24 11/04 at 102 Aaa 1,644,570
Cleveland Waterworks:
1,000,000 6.500%, 1/01/11 1/02 at 102 Aaa 1,048,490
1,550,000 6.250%, 1/01/15 1/02 at 102 Aaa 1,582,519
1,750,000 6.500%, 1/01/21 (Pre-
refunded to 1/01/02) 1/02 at 102 Aaa 1,898,768
1,000,000 Coldwater Exempted Village
School District, Unlimited
Tax,
7.000%, 12/01/13 (Pre-
refunded to 12/01/99) 12/99 at 102 Aaa 1,098,570
1,000,000 Columbus General
Obligation, Unlimited Tax,
6.500%, 1/01/10 1/02 at 102 Aa1 1,047,790
2,050,000 Columbus General
Obligation, 5.250%,
9/15/18 9/03 at 102 Aa1 1,827,801
</TABLE>
49
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- --------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Columbus City School
District, General
Obligation, Unlimited
Tax,
6.650%, 12/01/12 (Pre-
refunded to 12/01/02) 12/02 at 102 Aaa $ 552,125
1,500,000 Cuyahoga County, General
Obligation,
Unlimited Tax,
7.000%, 10/01/13 (Pre-
refunded to 10/01/01) 10/01 at 102 N/R 1,672,125
1,000,000 Cuyahoga County, General
Obligation,
5.250%, 10/01/13 No Opt. Call A1 889,880
1,250,000 Cuyahoga County,
Hospital Improvement
(Deaconess Hospital),
7.450%, 10/01/18 (Pre-
refunded to 10/01/00) 10/00 at 103 A1 1,417,925
2,750,000 Cuyahoga County,
Hospital Improvement
(Meridia Health
System), 7.250%,
8/15/19 8/00 at 102 A1 2,886,895
750,000 Defiance Waterworks
System, General
Obligation, Unlimited
Tax, 6.200%, 12/01/20 12/04 at 102 Aaa 767,520
1,000,000 Edgewood City School
District, General
Obligation, Unlimited
Tax, 6.850%, 12/01/15 12/01 at 102 Aaa 1,066,940
1,000,000 Fairborn General
Obligation, Limited
Tax,
7.000%, 10/01/11 10/02 at 102 Aaa 1,095,440
Franklin County Hospital
Facilities
(Ohio Presbyterian
Retirement Services):
1,350,000 8.750%, 7/01/21 7/01 at 103 N/R 1,407,375
1,500,000 6.500%, 7/01/23 7/03 at 102 N/R 1,334,190
720,000 Franklin County, FHA-
Insured (Worthington
Village Nursing Home),
7.000%, 8/01/16 8/00 at 102 N/R 722,894
2,000,000 Franklin County,
Hospital Facilities
(Riverside United
Methodist Hospital),
5.750%, 5/15/20 5/03 at 102 Aa 1,833,460
1,000,000 Franklin County (Online
Computer Library Center
Project), 7.200%,
7/15/06 7/01 at 100 N/R 1,055,970
250,000 Fremont Sewerage System,
8.100%, 12/01/07 (Pre-
refunded to 12/01/97) 12/97 at 102 A- 274,888
1,000,000 Gahanna-Jefferson School
District,
General Obligation,
Unlimited Tax,
7.125%, 12/01/14 (Pre-
refunded to 12/01/00) 12/00 at 102 A1 1,111,620
3,000,000 Garfield Heights
Hospital (Marymount
Hospital), 6.650%,
11/15/11 11/02 at 102 A 3,066,300
250,000 Grandview Heights,
Library Building
Mortgage,
8.250%, 12/01/07 (Pre-
refunded to 12/01/97) 12/97 at 102 N/R 276,735
1,250,000 Green Local School
District, General
Obligation, Unlimited
Tax, 5.900%, 12/01/19 12/04 at 102 Aaa 1,245,025
1,000,000 Greene County Sewer
System, 5.500%,
12/01/18 12/03 at 102 Aaa 949,130
1,000,000 Greenville Wastewater
System, 6.350%,
12/01/17 10/02 at 102 Aaa 1,036,660
1,750,000 Hamilton County,
Hospital Facilities
(Bethesda Hospital),
6.250%, 1/01/12 1/03 at 102 A1 1,731,870
2,500,000 Hamilton Electric
System, 6.300%,
10/15/25 10/02 at 102 Aaa 2,566,900
1,495,000 Hamilton County, FHA-
Insured
(Judson Care Center),
7.800%, 8/01/19 8/00 at 101 5/16 A+ 1,601,399
</TABLE>
50
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Hamilton County Sewer
System (Metropolitan Sewer
District of Greater
Cincinnati),
5.250%, 12/01/16 12/03 at 100 Aaa $ 463,295
400,000 Hubbard Sewer System,
8.800%, 11/15/17 5/98 at 102 N/R 448,212
1,500,000 Hudson Local School
District,
General Obligation,
Unlimited Tax,
5.600%, 12/15/14 12/03 at 102 Aaa 1,451,100
1,000,000 Kent State University,
General Receipts,
6.500%, 5/01/22 5/02 at 102 Aaa 1,039,780
1,000,000 Kettering City School
District, General
Obligation, Unlimited Tax,
5.300%, 12/01/14 12/05 at 101 Aaa 933,200
500,000 Kirtland Local School
District, General
Obligation, Unlimited Tax,
7.500%, 12/01/09 12/99 at 102 A1 550,800
1,000,000 Lakota Local School
District, General
Obligation, Unlimited Tax,
6.125%, 12/01/17 12/05 at 100 Aaa 1,012,850
1,000,000 Lorain County Hospital
(Humility of Mary Health
Care System), 5.900%,
12/15/08 6/03 at 102 A1 972,340
1,500,000 Lorain Hospital (Lakeland
Community Hospital),
6.500%, 11/15/12 11/02 at 102 A+ 1,490,460
500,000 Lorain Sewer System,
8.750%, 4/01/11 4/98 at 102 BBB- 561,180
1,980,000 Lucas County Airport
Housing Development
Corporation, (Greenview
Gardens),
5.750%, 12/01/15 12/03 at 102 Aa 1,828,787
1,000,000 Lucas County General
Obligation, Limited Tax,
6.650%, 12/01/12 12/02 at 102 Baa1 1,030,240
1,000,000 Mahoning County General
Obligation,
Limited Tax, 7.200%,
12/01/09 12/99 at 102 Aaa 1,083,030
1,700,000 Mahoning County, Hospital
Improvement
(St. Elizabeth Hospital
Medical Center),
7.375%, 12/01/09 6/96 at 102 A1 1,766,606
2,355,000 Mahoning County, Hospital
Improvement
(YHA Inc. Project),
7.000%, 10/15/14 10/00 at 102 Aaa 2,518,319
Marion County (United
Church Homes, Inc.)
1,000,000 6.375%, 11/15/10 11/03 at 102 BBB- 929,630
1,150,000 8.875%, 12/01/12 (Pre-
refunded to 12/01/99) 12/99 at 103 N/R 1,362,681
750,000 Marion County, Health Care
Facilities (United Church
Homes Project), 6.300%,
11/15/15 11/03 at 102 BBB- 658,845
1,000,000 Marysville Exempted Village
School District, General
Obligation, Unlimited Tax,
7.200%, 12/01/10 (Pre-
refunded to 12/01/00) 12/00 at 102 Aaa 1,116,370
1,250,000 Marysville Water System,
7.050%, 12/01/21 12/01 at 101 Aaa 1,391,325
1,250,000 Maumee Hospital Facilities
(St. Luke's Hospital),
5.800%, 12/01/14 12/04 at 102 Aaa 1,238,263
1,000,000 Mentor Village Exempted
School District,
General Obligation,
Unlimited Tax,
7.400%, 12/01/11 (Pre-
refunded to 12/01/02) 12/02 at 100 Aaa 1,113,060
</TABLE>
51
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN OHIO TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Montgomery County Water
(Greater
Moraine--Beavercreek Sewer
District),
6.250%, 11/15/17 11/02 at 102 Aaa $ 1,026,230
2,300,000 Napolean (Lutheran Orphan's
and Old Folks Home
Project), 6.875%, 08/01/23 9/04 at 102 Aa 2,372,864
1,000,000 North Olmstead, General
Obligation, Limited Tax,
6.250%, 12/15/12 12/02 at 102 Aaa 1,038,460
2,250,000 Oxford Water Supply System,
6.000%, 12/01/14 12/02 at 102 Aaa 2,270,408
1,000,000 Parma General Obligation,
Limited Tax,
7.600%, 12/01/11 12/00 at 102 A 1,129,670
1,750,000 Pickerington Local School
District, General
Obligation, Unlimited Tax,
6.750%, 12/01/16 12/01 at 102 A 1,818,863
1,000,000 Revere Local School
District, General
Obligation, Unlimited Tax,
6.000%, 12/01/16 12/03 at 102 Aaa 1,008,560
1,500,000 Reynoldsburg City School
District, General
Obligation, Unlimited Tax,
6.550%, 12/01/17 12/02 at 102 Aaa 1,578,195
1,200,000 Ridgemont Local School
District, General
Obligation, Unlimited Tax,
7.250%, 12/01/14 12/02 at 102 N/R 1,250,904
735,000 Salem Sewer System Mortgage,
7.500%, 11/01/11 (Pre-
refunded to 11/01/96) 11/96 at 102 N/R 782,223
1,000,000 Springfield City School
District, General
Obligation, Unlimited Tax,
6.600%, 12/01/12 12/01 at 102 Aaa 1,052,810
1,500,000 Steubenville City School
District, General
Obligation, Unlimited Tax,
6.200%, 12/01/17 12/03 at 102 Aaa 1,530,494
Toledo General Obligation,
Limited Tax:
1,000,000 6.500%, 12/01/11 12/02 at 102 Aaa 1,058,360
1,500,000 6.100%, 12/01/14 12/04 at 102 Aaa 1,526,280
1,000,000 Trumbull County Hospital
(Trumbull Memorial
Hospital), 6.900%, 11/15/12 11/01 at 102 Aaa 1,069,000
750,000 Tuscarawas County, Hospital
Facilities (Union
Hospital), 6.500%, 10/01/21 10/03 at 102 Baa 676,724
University of Cincinnati,
General Receipts:
1,000,000 7.300%, 6/01/09 (Pre-
refunded to 6/01/99) 6/99 at 100 AA- 1,087,130
1,000,000 6.300%, 6/01/12 12/02 at 102 AA- 1,032,230
3,250,000 University of Toledo,
General Receipts,
5.900%, 6/01/20 12/02 at 102 Aaa 3,236,934
1,950,000 Warren County, Hospital
Facilities, Otterbein Home
Project, 7.200%, 7/01/11 7/01 at 102 Aa1 2,063,510
Warren General Obligation,
Limited Tax:
1,500,000 7.750%, 11/01/10 (Pre-
refunded to 11/01/00) 11/00 at 102 BBB+ 1,710,524
250,000 8.625%, 11/15/13 (Pre-
refunded to 11/15/98) 11/98 at 102 BBB+ 285,417
1,000,000 Warren General Obligation,
5.200%, 11/15/13 11/03 at 102 Aaa 928,710
2,500,000 Washington Water System,
5.375%, 12/01/19 12/03 at 101 Aaa 2,326,950
750,000 West Geauga Local School
District, General
Obligation, 5.950%,
11/01/12 11/04 at 102 Aaa 760,004
</TABLE>
52
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Wooster City School
District, General
Obligation, Unlimited Tax,
6.500%, 12/01/17 12/02 at 102 Aaa $ 524,224
1,000,000 Worthington City School
District, General
Obligation, Unlimited Tax,
6.375%, 12/01/12 6/02 at 102 Aaa 1,039,900
- -------------------------------------------------------------------------------
$159,935,000 Total Investments - (cost
$157,373,625) - 97.9% 163,999,807
- -------------------------------------------------------------------------------
- -------------------
-----------
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 0.5%
$ 800,000 Cuyahoga County, University
Hospital of
- -------------------
Cleveland, Series 1985,
Variable Rate Demand
Bonds, 3.750%, 1/01/16+ VMIG-1 800,000
- -------------------------------------------------------------------------------
-----------
Other Assets Less
Liabilities - 1.6% 2,652,545
- -------------------------------------------------------------------------------
Net Assets - 100% $167,452,352
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER MARKET
STANDARD & POOR'S MOODY'S OF ISSUES MARKET VALUE PERCENT
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 63 $ 91,277,469 56%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 11 20,519,979 13
PORTFOLIO OF A+ A1 13 17,301,935 11
INVESTMENTS A, A- A, A2, A3 6 7,303,982 4
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 13 13,584,268 8
TEMPORARY Non-rated Non-rated 14 14,012,174 8
INVESTMENTS):
- ---------------------------------------------------------------------------------------
TOTAL 120 $163,999,807 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
53
<PAGE>
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal
securities, at market
value
(note 1) $206,072,736 $199,443,161 $71,117,507 $56,772,909
Temporary investments in
short-term municipal
securities, at amortized
cost (note 1) -- 1,700,000 800,000 1,700,000
Cash 2,149,535 7,685 103,690 189,333
Receivables:
Interest 3,932,758 3,306,810 1,033,508 946,488
Shares sold 16,975 38,500 30,000 52,156
Investments sold -- 105,000 -- --
Other assets 3,031 5,158 1,896 4,279
------------ ------------ ----------- -----------
Total assets 212,175,035 204,606,314 73,086,601 59,665,165
------------ ------------ ----------- -----------
LIABILITIES
Payables:
Investments purchased -- -- -- --
Shares reacquired 5,020 31,053 14,971 3,019
Accrued expenses:
Management fees (note 7) 87,392 84,240 30,412 24,672
Other 34,730 32,092 10,500 21,558
Dividends payable 622,358 555,859 248,374 184,840
------------ ------------ ----------- -----------
Total liabilities 749,500 703,244 304,257 234,089
------------ ------------ ----------- -----------
Net assets (note 8) $211,425,535 $203,903,070 $72,782,344 $59,431,076
------------ ------------ ----------- -----------
Class A Shares (note 1)
Net assets $ 3,146,425 $ 4,753,008 $ 1,066,757 $ 1,955,900
------------ ------------ ----------- -----------
Shares outstanding 311,523 463,657 111,546 194,413
------------ ------------ ----------- -----------
Net asset value and
redemption price per
share $ 10.10 $ 10.25 $ 9.56 $ 10.06
------------ ------------ ----------- -----------
Offering price per share
(net asset value per
share plus maximum sales
charge of 4.50% of
offering price) $ 10.58 $ 10.73 $ 10.01 $ 10.53
------------ ------------ ----------- -----------
Class C Shares (note 1)
Net assets $ 199,538 $ 222,103 $ 147,370 $ 337,710
------------ ------------ ----------- -----------
Shares outstanding 19,751 21,888 15,494 33,649
------------ ------------ ----------- -----------
Net asset value, offering
and redemption price per
share $ 10.10 $ 10.15 $ 9.51 $ 10.04
------------ ------------ ----------- -----------
Class R Shares (note 1)
Net assets $208,079,572 $198,927,959 $71,568,217 $57,137,466
------------ ------------ ----------- -----------
Shares outstanding 20,535,712 19,444,138 7,501,744 5,677,858
------------ ------------ ----------- -----------
Net asset value and
redemption price per
share $ 10.13 $ 10.23 $ 9.54 $ 10.06
------------ ------------ ----------- -----------
</TABLE>
See accompanying notes to financial statements.
54
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
NY NY INS OH
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities,
at market value
(note 1) $152,688,994 $349,130,945 $163,999,807
Temporary investments in short-term
municipal securities, at amortized
cost (note 1) 1,200,000 1,400,000 800,000
Cash 47,260 220,409 249,554
Receivables:
Interest 2,084,928 4,022,876 2,748,292
Shares sold 123,122 104,110 215,153
Investments sold 1,132,900 -- 90,000
Other assets 3,468 8,183 --
------------ ------------ ------------
Total assets 157,280,672 354,886,523 168,102,806
------------ ------------ ------------
LIABILITIES
Payables:
Investments purchased 3,793,781 618,454 --
Shares reacquired 117,206 158,220 10,379
Accrued expenses:
Management fees (note 7) 65,073 143,921 69,294
Other 22,714 82,173 28,089
Dividends payable 553,219 1,219,619 542,692
------------ ------------ ------------
Total liabilities 4,551,993 2,222,387 650,454
------------ ------------ ------------
Net assets (note 8) $152,728,679 $352,664,136 $167,452,352
------------ ------------ ------------
Class A Shares (note 1)
Net assets $ 3,188,706 $ 7,258,035 $ 4,320,297
------------ ------------ ------------
Shares outstanding 315,095 715,369 423,747
------------ ------------ ------------
Net asset value and redemption price
per share $ 10.12 $ 10.15 $ 10.20
------------ ------------ ------------
Offering price per share (net asset
value per share plus maximum sales
charge of 4.50% of offering price) $ 10.60 $ 10.63 $ 10.68
------------ ------------ ------------
Class C Shares (note 1)
Net assets $ 85,620 $ 285,193 $ 901,268
------------ ------------ ------------
Shares outstanding 8,473 28,182 88,730
------------ ------------ ------------
Net asset value, offering and
redemption price per share $ 10.11 $ 10.12 $ 10.16
------------ ------------ ------------
Class R Shares (note 1)
Net assets $149,454,353 $345,120,908 $162,230,787
------------ ------------ ------------
Shares outstanding 14,719,933 34,002,394 15,934,225
------------ ------------ ------------
Net asset value and redemption price
per share $ 10.15 $ 10.15 $ 10.18
------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements.
55
<PAGE>
STATEMENT OF OPERATIONS
Year Ended February 28, 1995
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $13,532,042 $12,414,386 $4,596,224 $3,551,606
Taxable market discount -- -- -- --
----------- ----------- ---------- ----------
Total income 13,532,042 12,414,386 4,596,224 3,551,606
----------- ----------- ---------- ----------
Expenses (note 2):
Management fees (note 7) 1,126,843 1,076,033 387,713 309,389
12b-1 distribution and
service fees (note 1) 2,433 3,695 967 2,229
Shareholders' servicing
agent fees and expenses 155,589 131,486 70,791 54,804
Custodian's fees and
expenses 66,016 54,195 42,031 35,294
Directors' fees and
expenses (note 7) 2,482 3,374 1,407 1,386
Professional fees 13,199 20,755 11,408 5,701
Shareholders' reports--
printing and mailing
expenses 100,917 68,543 27,276 28,438
Federal and state
registration fees 3,064 3,868 2,450 2,397
Portfolio insurance
expense -- 10,812 -- 3,796
Other expenses 8,300 5,729 3,046 2,715
----------- ----------- ---------- ----------
Total expenses before
expense reimbursement 1,478,843 1,378,490 547,089 446,149
Expense reimbursement
from investment adviser
(note 7) (3,483) (2,697) (17,319) (1,148)
----------- ----------- ---------- ----------
Net expenses 1,475,360 1,375,793 529,770 445,001
----------- ----------- ---------- ----------
Net investment income 12,056,682 11,038,593 4,066,454 3,106,605
----------- ----------- ---------- ----------
REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable
(notes 1 and 5) (2,621,487) (1,106,384) (558,617) (212,554)
Net change in unrealized
appreciation or
depreciation of
investments (8,272,724) (6,870,030) (2,393,115) (1,878,784)
----------- ----------- ---------- ----------
Net gain (loss) from
investments (10,894,211) (7,976,414) (2,951,732) (2,091,338)
----------- ----------- ---------- ----------
Net increase in net
assets from operations $ 1,162,471 $ 3,062,179 $1,114,722 $1,015,267
----------- ----------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
56
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
NY NY INS OH
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 9,417,010 $ 22,226,034 $10,312,482
Taxable market discount 1,937 -- --
----------- ------------ -----------
Total income 9,418,947 22,226,034 10,312,482
----------- ------------ -----------
Expenses (note 2):
Management fees (note 7) 791,403 1,923,239 876,933
12b-1 distribution and service fees
(note 1) 1,772 5,343 4,595
Shareholders' servicing agent fees
and expenses 132,988 212,430 148,751
Custodian's fees and expenses 40,781 64,409 55,091
Directors' fees and expenses (note
7) 1,166 3,756 5,000
Professional fees 6,862 19,020 9,012
Shareholders' reports--printing and
mailing expenses 78,983 79,576 62,516
Federal and state registration fees 6,690 3,324 2,865
Portfolio insurance expense -- 16,881 --
Other expenses 6,363 12,389 8,830
----------- ------------ -----------
Total expenses before expense
reimbursement 1,067,008 2,340,367 1,173,593
Expense reimbursement from
investment adviser (note 7) (4,556) (1,767) (3,524)
----------- ------------ -----------
Net expenses 1,062,452 2,338,600 1,170,069
----------- ------------ -----------
Net investment income 8,356,495 19,887,434 9,142,413
----------- ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from
investment transactions, net
of taxes, if applicable (notes 1
and 5) (1,122,982) 691,691 (967,375)
Net change in unrealized
appreciation or depreciation of
investments (6,026,320) (17,661,749) (5,055,416)
----------- ------------ -----------
Net gain (loss) from investments (7,149,302) (16,970,058) (6,022,791)
----------- ------------ -----------
Net increase in net assets from
operations $ 1,207,193 $ 2,917,376 $ 3,119,622
----------- ------------ -----------
</TABLE>
57
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CA CA INS
---------------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 12,056,682 $ 11,312,317 $ 11,038,593 $ 9,871,976
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (2,621,487) 2,689,891 (1,106,384) 2,016,944
Net change in unrealized
appreciation or
depreciation of
investments (8,272,724) (3,820,153) (6,870,030) (4,135,051)
------------ ------------ ------------ ------------
Net increase in net
assets from operations 1,162,471 10,182,055 3,062,179 7,753,869
------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (40,773) -- (59,786) --
Class C (2,883) -- (4,199) --
Class R (12,099,560) (11,249,792) (10,954,036) (9,798,122)
From accumulated net
realized gains from
investment
transactions:
Class A (6,186) -- (2,542) --
Class C (231) -- (317) --
Class R (1,542,643) (1,138,428) (545,843) (1,503,962)
In excess of accumulated
net realized gains from
investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
------------ ------------ ------------ ------------
Decrease in net assets
from distributions to
shareholders (13,692,276) (12,388,220) (11,566,723) (11,302,084)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sales
of shares:
Class A 3,153,792 -- 4,571,343 --
Class C 189,814 -- 277,611 --
Class R 24,628,063 61,356,606 21,455,944 60,508,374
Net asset value of
shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized gains
from investment
transactions:
Class A 17,920 -- 24,201 --
Class C 1,844 -- 1,935 --
Class R 8,806,336 7,917,196 7,133,691 7,133,168
------------ ------------ ------------ ------------
36,797,769 69,273,802 33,464,725 67,641,542
------------ ------------ ------------ ------------
Cost of shares redeemed:
Class A (117,370) -- (71,333) --
Class C (1,036) -- (68,234) --
Class R (31,154,367) (31,852,039) (29,032,260) (24,830,822)
------------ ------------ ------------ ------------
(31,272,773) (31,852,039) (29,171,827) (24,830,822)
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets derived
from Fund share
transactions 5,524,996 37,421,763 4,292,898 42,810,720
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets (7,004,809) 35,215,598 (4,211,646) 39,262,505
Net assets at beginning
of year 218,430,344 183,214,746 208,114,716 168,852,211
------------ ------------ ------------ ------------
Net assets at end of
year $211,425,535 $218,430,344 $203,903,070 $208,114,716
------------ ------------ ------------ ------------
Balance of undistributed
net investment income
at end of year $ 65,047 $ 151,581 $ 66,680 $ 46,108
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements.
58
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
MA MA INS
-----------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 4,066,454 $ 3,501,487 $ 3,106,605 $ 2,733,596
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (558,617) 28,787 (212,554) 48,780
Net change in unrealized
appreciation or
depreciation of
investments (2,393,115) 123,932 (1,878,784) (56,500)
----------- ----------- ----------- -----------
Net increase in net
assets from operations 1,114,722 3,654,206 1,015,267 2,725,876
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (16,122) -- (22,806) --
Class C (1,197) -- (5,217) --
Class R (4,021,155) (3,482,145) (3,099,363) (2,676,524)
From accumulated net
realized gains from
investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- (68,840) -- --
In excess of accumulated
net realized gains from
investment
transactions:
Class A -- -- -- --
Class C -- -- -- --
Class R -- -- -- --
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (4,038,474) (3,550,985) (3,127,386) (2,676,524)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sale
of shares:
Class A 1,057,696 -- 1,906,377 --
Class C 144,012 -- 324,825 --
Class R 10,510,784 23,323,692 7,040,265 16,098,587
Net asset value of
shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized gains
from investment
transactions:
Class A 8,778 -- 11,338 --
Class C 594 -- 2,330 --
Class R 2,815,745 2,445,494 2,160,636 1,853,467
----------- ----------- ----------- -----------
14,537,609 25,769,186 11,445,771 17,952,054
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (32,507) -- (37,958) --
Class C -- -- -- --
Class R (10,741,355) (7,160,909) (8,119,665) (6,844,378)
----------- ----------- ----------- -----------
(10,773,862) (7,160,909) (8,157,623) (6,844,378)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets derived
from Fund share
transactions 3,763,747 18,608,277 3,288,148 11,107,676
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets 839,995 18,711,498 1,176,029 11,157,028
Net assets at beginning
of year 71,942,349 53,230,851 58,255,047 47,098,019
----------- ----------- ----------- -----------
Net assets at end of
year $72,782,344 $71,942,349 $59,431,076 $58,255,047
----------- ----------- ----------- -----------
Balance of undistributed
net investment income
at end of year $ 56,272 $ 28,292 $ 27,522 $ 48,303
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
59
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NY NY INS
---------------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 8,356,495 $ 6,821,122 $ 19,887,434 $ 18,541,555
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (1,122,982) 1,226,611 691,691 1,554,828
Net change in unrealized
appreciation or
depreciation of
investments (6,026,320) 391,832 (17,661,749) (1,038,061)
------------ ------------ ------------ ------------
Net increase in net
assets from operations 1,207,193 8,439,565 2,917,376 19,058,322
------------ ------------ ------------ ------------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (35,341) -- (93,178) --
Class C (818) -- (3,586) --
Class R (8,216,539) (6,838,081) (19,795,360) (18,272,088)
From accumulated net
realized gains from
investment
transactions:
Class A (2,464) -- (11,988) --
Class C (28) -- (504) --
Class R (697,769) (609,643) (1,367,629) (1,127,645)
In excess of accumulated
net realized gains from
investment
transactions:
Class A -- -- (483) --
Class C -- -- (20) --
Class R -- -- (55,065) --
------------ ------------ ------------ ------------
Decrease in net assets
from distributions to
shareholders (8,952,959) (7,447,724) (21,327,813) (19,399,733)
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sale
of shares:
Class A 3,107,225 -- 7,035,288 --
Class C 81,795 -- 271,337 --
Class R 26,513,287 44,875,936 34,286,843 97,500,068
Net asset value of
shares issued to
shareholders due to
reinvestment of
distributions from net
investment income and
from net realized gains
from investment
transactions:
Class A 18,206 -- 61,394 --
Class C 417 -- 1,940 --
Class R 6,975,322 5,757,792 16,604,261 14,633,903
------------ ------------ ------------ ------------
36,696,252 50,633,728 58,261,063 112,133,971
------------ ------------ ------------ ------------
Cost of shares redeemed:
Class A (51,915) -- (99,736) --
Class C -- -- -- --
Class R (22,466,951) (12,474,166) (75,263,107) (38,492,791)
------------ ------------ ------------ ------------
(22,518,866) (12,474,166) (75,362,843) (38,492,791)
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets derived
from Fund share
transactions 14,177,386 38,159,562 (17,101,780) 73,641,180
------------ ------------ ------------ ------------
Net increase (decrease)
in net assets 6,431,620 39,151,403 (35,512,217) 73,299,769
Net assets at beginning
of year 146,297,059 107,145,656 388,176,353 314,876,584
------------ ------------ ------------ ------------
Net assets at end of
year $152,728,679 $146,297,059 $352,664,136 $388,176,353
------------ ------------ ------------ ------------
Balance of undistributed
net investment income
at end of year $ 104,821 $ 1,024 $ 263,489 $ 268,179
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
OH
---------------------------------
Year ended Year ended
2/28/95 2/28/94
- -------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 9,142,413 $ 8,098,952
Net realized gain (loss) from investment
transactions, net of taxes, if applicable (967,375) 1,194,910
Net change in unrealized appreciation or
depreciation of investments (5,055,416) (333,655)
------------ ------------
Net increase in net assets from operations 3,119,622 8,960,207
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS(note 1)
From undistributed net investment income:
Class A (58,833) --
Class C (9,333) --
Class R (9,076,904) (8,011,756)
From accumulated net realized gains from
investment transactions:
Class A (4,637) --
Class C (879) --
Class R (652,495) (902,046)
In excess of accumulated net realized gains from
investment transactions:
Class A -- --
Class C -- --
Class R -- --
------------ ------------
Decrease in net assets from distributions to
shareholders (9,803,081) (8,913,802)
------------ ------------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares:
Class A 4,240,889 --
Class C 871,689 --
Class R 15,813,517 39,536,568
Net asset value of shares issued to shareholders
due to reinvestment of distributions from net
investment income and from net realized gains
from investment transactions:
Class A 28,946 --
Class C 6,902 --
Class R 6,935,311 6,410,290
------------ ------------
27,897,254 45,946,858
------------ ------------
Cost of shares redeemed:
Class A (115,343) --
Class C (3,158) --
Class R (21,090,544) (12,342,805)
------------ ------------
(21,209,045) (12,342,805)
------------ ------------
Net increase (decrease) in net assets derived
from Fund share transactions 6,688,209 33,604,053
------------ ------------
Net increase (decrease) in net assets 4,750 33,650,458
Net assets at beginning of year 167,447,602 133,797,144
------------ ------------
Net assets at end of year $167,452,352 $167,447,602
------------ ------------
Balance of undistributed net investment income
at end of year $ 108,632 $ 111,289
------------ ------------
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT
ACCOUNTING POLICIES
At February 28, 1995, the state Funds (the "Funds") covered
in this report are Nuveen California Tax-Free Fund, Inc.
(comprised of the Nuveen California and California Insured
Tax-Free Value Funds), Nuveen Tax-Free Bond Fund, Inc.
(comprised of the Nuveen Massachusetts, New York and Ohio
Tax-Free Value Funds) and Nuveen Insured Tax-Free Bond Fund,
Inc. (comprised of the Nuveen Massachusetts and New York
Insured Tax-Free Value Funds).
Additional state Funds covering other states may be
established in the future. Each Fund invests primarily in a
diversified portfolio of municipal obligations issued by
state and local government authorities in a single state.
Each Fund issues shares of each of its classes at a price
equal to net asset value of such class plus the appropriate
front-end sales charge, if any.
The Funds are registered under the Investment Company Act of
1940 as open-end, diversified management investment
companies.
The following is a summary of significant accounting policies
followed by each Fund in the preparation of their financial
statements in accordance with generally accepted accounting
principles.
Securities Valuation
Portfolio securities for which market quotations are readily
available are valued at the mean between the quoted bid and
asked prices or the yield equivalent. Portfolio securities
for which market quotations are not readily available are
valued at fair value by consistent application of methods
determined in good faith by the Board of Directors. Temporary
investments in securities that have variable rate and demand
features qualifying them as short-term securities are traded
and valued at amortized cost.
Securities Transactions
Securities transactions are recorded on a trade date basis.
Realized gains and losses from such transactions are
determined on the specific identification method. Securities
purchased or sold on a when-issued or delayed delivery basis
may be settled a month or more after the transaction date.
Any securities so purchased are subject to market fluctuation
during this period. The Funds have instructed the custodian
to segregate assets in a separate account with a current
value at least equal to the amount of its purchase
commitments. At February 28, 1995, there were no such
purchase commitments in any of the Funds.
62
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Interest Income Interest income is determined on the basis of interest
accrued, adjusted for amortization of premiums or discounts
on long-term debt securities when required for federal income
tax purposes.
Dividends and Distributions to Shareholders
Net investment income is declared as a dividend monthly and
payment is made or reinvestment is credited to shareholder
accounts after month-end. Net realized gains from investment
transactions are distributed to shareholders not less
frequently than annually only to the extent they exceed
available capital loss carryovers.
Distributions to shareholders of net investment income and
net realized gains from investment transactions are recorded
on the ex-dividend date. The amount and timing of such
distributions are determined in accordance with federal
income tax regulations, which may differ from generally
accepted accounting principles. Accordingly, temporary over-
distributions as a result of these differences may result and
will be classified as either distributions in excess of net
investment income or distributions in excess of accumulated
net realized gains from investment transactions, if
applicable.
Income Tax Each Fund is a separate taxpayer for federal income tax
purposes and intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies by distributing all of its net investment income,
in addition to any significant amounts of net realized gains
from investments, to shareholders. The Funds currently
consider significant net realized gains as amounts in excess
of $.001 per share. Futhermore, each Fund intends to satisfy
conditions which will enable interest from municipal
securities, which is exempt from regular federal and
designated state income taxes, to retain such tax exempt
status when distributed to the shareholders of the Funds. All
income dividends paid during the fiscal year ended February
28, 1995, have been designated Exempt Interest Dividends.
63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Insurance The California Insured, Massachusetts Insured, and New York
Insured Tax-Free Value Funds invest in municipal securities
which are covered by insurance guaranteeing the timely
payment of principal and interest thereon or backed by an
escrow or trust account containing sufficient U.S. Government
or U.S. Government agency securities to ensure the timely
payment of principal and interest. Each insured municipal
security is covered by Original Issue Insurance, Secondary
Market Insurance or Portfolio Insurance. Such insurance does
not guarantee the market value of the municipal securities or
the value of the Funds' shares. Original Issue Insurance and
Secondary Market Insurance remain in effect as long as the
municipal securities covered thereby remain outstanding and
the insurer remains in business, regardless of whether the
Funds ultimately dispose of such municipal securities.
Consequently, the market value of the municipal securities
covered by Original Issue Insurance or Secondary Market
Insurance may reflect value attributable to the insurance.
Portfolio Insurance is effective only while the municipal
securities are held by the Funds. Accordingly, neither the
prices used in determining the market value of the underlying
municipal securities nor the net asset value of the Funds'
shares include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does,
however, give the Funds the right to obtain permanent
insurance with respect to the municipal security covered by
the Portfolio Insurance policy at the time of its sale.
Flexible Sales Charge Program
Effective September 6, 1994, each Fund commenced offering
Class "A" Shares and Class "C" Shares. Class "A" Shares incur
a front-end sales charge and an annual 12b-1 service fee.
Class "C" Shares are sold without a sales charge but incur
annual 12b-1 distribution and service fees.
Prior to the offering of Class "A" and Class "C" Shares, the
shares outstanding were renamed Class "R" and are not subject
to any 12b-1 distribution or service fees. Effective with the
offering of the new classes, Class "R" Shares will generally
be available only for reinvestment of dividends by current
"R" shareholders and for already established Nuveen Unit
Investment Trust reinvestment accounts.
64
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board
(FASB) issued Statement of Financial Accounting Standards No.
119 Disclosure about Derivative Financial Instruments and
Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain
derivative financial instruments including futures, forward,
swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may
do so in the future, they did not make any such investments
during the fiscal year ended February 28, 1995, other than
occasional purchases of high quality synthetic money market
securities which were held temporarily pending the re-
investment in long-term portfolio securities.
65
<PAGE>
NOTES TO FINANCIAL STATEMENTS
2. EXPENSE ALLOCATION
Expenses of the Funds that are not directly attributable to
any class of shares are prorated among the classes based on
the relative net assets of each class. Expenses directly
attributable to a class of shares are recorded to the
specific class. A breakdown of the class level expenses, as
well as the total fund level expenses, for the year ended
February 28, 1995, are as follows:
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
12b-1 service fees $ 1,868 $ 2,924 $ 752 $ 1,152
Shareholder servicing agent fees
and expenses 1,657 1,862 1,105 833
Shareholder reports-printing and
mailing expenses 1,549 1,664 1,404 923
Federal and state registration
fees 1,107 1,100 456 393
---------- ---------- -------- --------
Total class level expenses 6,181 7,550 3,717 3,301
Total fund level expenses 4,387 6,922 1,895 2,958
---------- ---------- -------- --------
Total expenses before expense
reimbursement 10,568 14,472 5,612 6,259
Less: Expense reimbursement from
investment adviser (3,104) (2,202) (2,612) (959)
---------- ---------- -------- --------
Net expenses--Class A $ 7,464 $ 12,270 $ 3,000 $ 5,300
---------- ---------- -------- --------
CLASS C
12b-1 service fees $ 141 $ 193 $ 54 $ 269
12b-1 distribution fees 424 578 161 808
Shareholder servicing agent fees
and expenses 120 305 126 77
Shareholder reports-printing and
mailing expenses 155 263 183 109
Federal and state registration
fees 195 88 71 280
---------- ---------- -------- --------
Total class level expenses 1,035 1,427 595 1,543
Total fund level expenses 331 457 135 693
---------- ---------- -------- --------
Total expenses before expense
reimbursement 1,366 1,884 730 2,236
Less: Expense reimbursement from
investment adviser (379) (495) (355) (189)
---------- ---------- -------- --------
Net expenses--Class C $ 987 $ 1,389 $ 375 $ 2,047
---------- ---------- -------- --------
CLASS R
Shareholder servicing agent fees
and expenses $ 153,812 $ 129,319 $ 69,560 $ 53,894
Shareholder reports-printing and
mailing expenses 99,213 66,616 25,689 27,406
Federal and state registration
fees 1,762 2,680 1,923 1,724
---------- ---------- -------- --------
Total class level expenses 254,787 198,615 97,172 83,024
Total fund level expenses 1,212,122 1,163,519 443,575 354,630
---------- ---------- -------- --------
Total expenses before expense
reimbursement 1,466,909 1,362,134 540,747 437,654
Less: Expense reimbursement from
investment adviser -- -- (14,352) --
---------- ---------- -------- --------
Net expenses--Class R $1,466,909 $1,362,134 $526,395 $437,654
---------- ---------- -------- --------
Net expenses--Fund $1,475,360 $1,375,793 $529,770 $445,001
---------- ---------- -------- --------
</TABLE>
66
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
NY NY INS OH
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A
12b-1 service fees $ 1,620 $ 4,578 $ 2,727
Shareholder servicing agent fees and ex-
penses 1,706 2,053 1,914
Shareholder reports-printing and mailing
expenses 1,831 1,322 1,844
Federal and state registration fees 1,021 2,331 953
---------- ---------- ----------
Total class level expenses 6,178 10,284 7,438
Total fund level expenses 3,906 10,329 6,353
---------- ---------- ----------
Total expenses before expense reimburse-
ment 10,084 20,613 13,791
Less: Expense reimbursement from invest-
ment adviser (3,607) (1,368) (2,887)
---------- ---------- ----------
Net expenses--Class A $ 6,477 $ 19,245 $ 10,904
---------- ---------- ----------
CLASS C
12b-1 service fees $ 38 $ 191 $ 467
12b-1 distribution fees 114 574 1,401
Shareholder servicing agent fees and ex-
penses 137 75 352
Shareholder reports-printing and mailing
expenses 276 170 379
Federal and state registration fees 558 328 187
---------- ---------- ----------
Total class level expenses 1,123 1,338 2,786
Total fund level expenses 92 440 1,123
---------- ---------- ----------
Total expenses before expense reimburse-
ment 1,215 1,778 3,909
Less: Expense reimbursement from invest-
ment adviser (949) (399) (637)
---------- ---------- ----------
Net expenses--Class C $ 266 $ 1,379 $ 3,272
---------- ---------- ----------
CLASS R
Shareholder servicing agent fees and ex-
penses $ 131,145 $ 210,302 $ 146,485
Shareholder reports-printing and mailing
expenses 76,876 78,084 60,293
Federal and state registration fees 5,111 665 1,725
---------- ---------- ----------
Total class level expenses 213,132 289,051 208,503
Total fund level expenses 842,577 2,028,925 947,390
---------- ---------- ----------
Total expenses before expense reimburse-
ment 1,055,709 2,317,976 1,155,893
Less: Expense reimbursement from invest-
ment adviser -- -- --
---------- ---------- ----------
Net expenses--Class R $1,055,709 $2,317,976 $1,155,893
---------- ---------- ----------
Net expenses--Fund $1,062,452 $2,338,600 $1,170,069
---------- ---------- ----------
</TABLE>
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. FUND SHARES
Transactions in shares were as follows:
<TABLE>
<CAPTION>
CA CA INS
----------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 321,777 -- 468,407 --
Class C 19,666 -- 28,545 --
Class R 2,433,649 5,633,912 2,136,079 5,576,658
Shares issued to sharehold-
ers due to reinvestment of
distributions from net in-
vestment income and from
net realized gains from
investment transactions:
Class A 1,856 -- 2,486 --
Class C 191 -- 201 --
Class R 884,995 723,974 714,801 652,939
---------- ---------- ---------- ----------
3,662,134 6,357,886 3,350,519 6,229,597
---------- ---------- ---------- ----------
Shares redeemed:
Class A (12,110) -- (7,236) --
Class C (106) -- (6,858) --
Class R (3,116,035) (2,918,057) (2,915,964) (2,286,892)
---------- ---------- ---------- ----------
(3,128,251) (2,918,057) (2,930,058) (2,286,892)
---------- ---------- ---------- ----------
Net increase (decrease) 533,883 3,439,829 420,461 3,942,705
---------- ---------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
MA MA INS
-----------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 114,157 -- 197,250 --
Class C 15,429 -- 33,405 --
Class R 1,117,491 2,335,758 702,214 1,534,832
Shares issued to shareholders
due to reinvestment of
distributions from net in-
vestment income and from net
realized gains from invest-
ment transactions:
Class A 956 -- 1,171 --
Class C 65 -- 244 --
Class R 277,942 242,886 225,446 175,622
---------- --------- --------- ---------
1,526,040 2,578,644 1,159,730 1,710,454
---------- --------- --------- ---------
Shares redeemed:
Class A (3,567) -- (4,008) --
Class C -- -- -- --
Class R (1,130,507) (712,480) (823,516) (649,891)
---------- --------- --------- ---------
(1,134,074) (712,480) (827,524) (649,891)
---------- --------- --------- ---------
Net increase (decrease) 391,966 1,866,164 332,206 1,060,563
---------- --------- --------- ---------
</TABLE>
68
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
<TABLE>
<CAPTION>
NY NY INS
----------------------------------------
Year ended Year ended Year ended Year ended
2/28/95 2/28/94 2/28/95 2/28/94
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 318,594 -- 719,364 --
Class C 8,430 -- 27,982 --
Class R 2,613,112 3,833,510 3,411,938 9,088,885
Shares issued to sharehold-
ers due to reinvestment of
distributions from net in-
vestment income and from
net realized gains from
investment transactions:
Class A 1,882 -- 6,336 --
Class C 43 -- 200 --
Class R 701,622 874,183 1,652,628 1,356,500
---------- ---------- ---------- ----------
3,643,683 4,707,693 5,818,448 10,445,385
---------- ---------- ---------- ----------
Shares redeemed:
Class A (5,381) -- (10,331) --
Class C -- -- -- --
Class R (2,245,562) (1,159,235) (7,580,245) (3,579,980)
---------- ---------- ---------- ----------
(2,250,943) (1,159,235) (7,590,576) (3,579,980)
---------- ---------- ---------- ----------
Net increase (decrease) 1,392,740 3,548,458 (1,772,128) 6,865,405
---------- ---------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
OH
---------------------------------
Year ended Year ended
2/28/95 2/28/94
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 432,196 --
Class C 88,344 --
Class R 1,586,702 3,690,169
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net realized gains from investment
transactions:
Class A 2,972 --
Class C 711 --
Class R 696,759 595,538
---------- ---------- --- ---
2,807,684 4,285,707
---------- ----------
Shares redeemed:
Class A (11,421) --
Class C (325) --
Class R (2,131,282) (1,147,522)
---------- ---------- --- ---
(2,143,028) (1,147,522)
---------- ---------- --- ---
Net increase (decrease) 664,656 3,138,185
---------- ---------- --- ---
</TABLE>
69
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. DISTRIBUTIONS TO SHAREHOLDERS
On March 9, 1995, the Funds declared dividend distributions
from their ordinary income which were paid on April 3, 1995,
to shareholders of record on March 10, 1995, as follows:
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- --------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share:
Class A $.0460 $.0445 $.0435 $.0430
Class C .0395 .0380 .0375 .0370
Class R .0485 .0470 .0455 .0460
------ ------ ------ ------
</TABLE>
<TABLE>
<CAPTION>
NY NY INS OH
- -------------------------------------------
<S> <C> <C> <C>
Dividend per share:
Class A $.0460 $.0435 $.0455
Class C .0400 .0370 .0390
Class R .0485 .0465 .0475
------ ------ ------
</TABLE>
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in
municipal securities and temporary municipal investments for
the year ended February 28, 1995, were as follows:
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal se-
curities $68,894,120 $50,451,137 $13,363,407 $ 5,335,294
Temporary municipal invest-
ments 43,200,000 30,180,000 6,800,000 10,500,000
SALES
Investments in municipal se-
curities 66,559,948 48,631,129 11,517,581 5,226,905
Temporary municipal invest-
ments 43,200,000 28,480,000 6,000,000 8,800,000
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
NY NY INS OH
- --------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $58,175,026 $39,924,207 $49,521,108
Temporary municipal investments 26,200,000 38,100,000 19,500,000
SALES
Investments in municipal securities 40,595,994 58,979,554 44,955,689
Temporary municipal investments 30,000,000 41,900,000 20,000,000
----------- ----------- -----------
</TABLE>
70
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
At February 28, 1995, the cost of investments for federal
income tax purposes was the same as the cost for financial
reporting purposes for each Fund.
At February 28, 1995, the following Funds had unused capital
loss carryovers available for federal income tax purposes to
be applied against future security gains, if any. If not
applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
1996 $ -- $ -- $ -- $ 6,372
1997 -- -- -- 72,205
2003 2,620,483 1,106,349 557,301 212,554
---------- ---------- ---------- ----------
Total $2,620,483 $1,106,349 $ 557,301 $ 291,131
---------- ---------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
NY OH
- -----------------------------------------
<S> <C> <C>
Expiration year:
1996 $ -- $ --
1997 -- --
2003 1,122,982 967,375
---------- ----------
Total $1,122,982 $ 967,375
---------- ----------
</TABLE>
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at February 28, 1995, were as
follows:
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $7,199,506 $8,299,708 $3,099,613 $2,768,020
Depreciation (3,206,106) (3,436,911) (845,699) (500,230)
---------- ---------- ---------- ----------
Net unrealized appreciation $3,993,400 $4,862,797 $2,253,914 $2,267,790
---------- ---------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
NY NY INS OH
- -------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
Appreciation $5,757,794 $14,819,638 $8,159,973
Depreciation (2,353,152) (5,230,912) (1,533,791)
---------- ----------- ----------
Net unrealized appreciation $3,404,642 $ 9,588,726 $6,626,182
---------- ----------- ----------
</TABLE>
71
<PAGE>
NOTES TO FINANCIAL STATEMENTS
7. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' investment management agreements with Nuveen
Advisory Corp. (the "Adviser"), a wholly owned subsidiary of
The John Nuveen Company, each Fund pays to the Adviser an
annual management fee, payable monthly, at the rates set
forth below which are based upon the average daily net asset
value of each Fund:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- ----------------------------------------------------
<S> <C>
For the first $125,000,000 .55 of 1%
For the next $125,000,000 .5375 of 1
For the next $250,000,000 .525 of 1
For the next $500,000,000 .5125 of 1
For the next $1,000,000,000 .5 of 1
For net assets over $2,000,000,000 .475 of 1
</TABLE>
The management fee is reduced by, or the Adviser assumes
certain expenses of each Fund, in an amount necessary to
prevent the total expenses of each Fund (including the
management fee, but excluding interest, taxes, fees incurred
in acquiring and disposing of portfolio securities, 12b-1
Service and Distribution fees, and to the extent permitted,
extraordinary expenses) in any fiscal year from exceeding .75
of 1% of the average daily net asset value of the California,
Massachusetts, New York and Ohio Tax-Free Value Funds, .80 of
1% of the average daily net asset value of the California
Insured and New York Insured Tax-Free Value Funds, and .90 of
1%
of the average daily net asset value of the Massachusetts
Insured Tax-Free Value Fund.
The management fee referred to above compensates the Adviser
for overall investment advisory and administrative services,
and general office facilities. The Funds pays no compensation
directly to their directors who are affiliated with the
Adviser or to its officers, all of whom receive remuneration
for their services to the Funds from the Adviser.
72
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
8. COMPOSITION OF NET ASSETS
At February 28, 1995, 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>
CA CA INS MA MA INS
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid-in $209,987,571 $200,079,942 $71,029,459 $57,426,895
Balance of undistributed
net investment income 65,047 66,680 56,272 27,522
Undistributed net real-
ized gain (loss) from
investment
transactions, net of
taxes, if applicable (2,620,483) (1,106,349) (557,301) (291,131)
Distributions in excess
of accumulated net re-
alized gains from in-
vestment transactions -- -- -- --
Net unrealized apprecia-
tion (depreciation) of
investments 3,993,400 4,862,797 2,253,914 2,267,790
------------ ------------ ----------- -----------
Net assets $211,425,535 $203,903,070 $72,782,344 $59,431,076
------------ ------------ ----------- -----------
Authorized shares:
Class A 40,000,000 40,000,000 200,000,000 200,000,000
Class C 45,000,000 45,000,000 260,000,000 240,000,000
Class R 40,000,000 40,000,000 40,000,000 60,000,000
------------ ------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
NY NY INS OH
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid-in $150,342,198 $342,867,489 $161,684,913
Balance of undistributed net in-
vestment income 104,821 263,489 108,632
Undistributed net realized gain
(loss) from investment
transactions, net of taxes, if
applicable (1,122,982) -- (967,375)
Distributions in excess of accumu-
lated net realized gains from in-
vestment transactions -- (55,568) --
Net unrealized appreciation (de-
preciation) of investments 3,404,642 9,588,726 6,626,182
------------ ------------ ------------
Net assets $152,728,679 $352,664,136 $167,452,352
------------ ------------ ------------
Authorized shares:
Class A 200,000,000 200,000,000 200,000,000
Class C 220,000,000 200,000,000 220,000,000
Class R 80,000,000 100,000,000 80,000,000
------------ ------------ ------------
</TABLE>
73
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At February
28, 1995, the revenue sources by municipal purpose for these
investments, expressed as a percent of total investments,
were as follows:
<TABLE>
<CAPTION>
CA CA INS MA MA INS
- ---------------------------------------------------
<S> <C> <C> <C> <C>
Revenue bonds:
Health care facilities 25% 11% 16% 18%
Housing facilities 9 6 20 2
Lease rental facilities 13 20 -- 1
Educational facilities 7 -- 11 15
Water/Sewer facilities 5 13 4 1
Transportation -- 3 4 1
Pollution control -- -- 2 --
Electric utilities 2 3 1 3
Other 18 22 -- 1
General obligation bonds 6 5 26 40
Escrowed bonds 15 17 16 18
- ---------------------------------------------------
100% 100% 100% 100%
--- --- --- ---
</TABLE>
<TABLE>
<CAPTION>
NY NY INS OH
- --------------------------------------------
<S> <C> <C> <C>
Revenue bonds:
Health care facilities 3% 9% 18%
Housing facilities 24 12 6
Lease rental facilities 23 4 1
Educational facilities 11 8 5
Water/Sewer facilities 3 9 13
Transportation 3 13 1
Pollution control 4 2 12
Electric utilities -- 1 3
Other 8 6 1
General obligation bonds 10 17 25
Escrowed bonds 11 19 15
- --------------------------------------------
100% 100% 100%
--- --- ---
</TABLE>
74
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
Certain long-term and intermediate-term investments owned by
the Funds are covered by insurance issued by several private
insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, either of
which ensure the timely payment of principal and interest in
the event of default (25% for California, 100% for California
Insured, 37% for Massachusetts, 100% for Massachusetts
Insured, 22% for New York, 100% for New York Insured and 60%
for Ohio). Such insurance, however, does not guarantee the
market value of the municipal securities or the value of the
Funds' shares.
All of the temporary investments in short-term municipal
securities have credit enhancements (letters of credit,
guarantees or insurance) issued by third party domestic or
foreign banks or other institutions.
For additional information regarding each investment
security, refer to the Portfolio of Investments of each Fund.
75
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
---------------------------------------------------------------------
Net realized
Net asset and unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments+++ income capital gains
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CA
- ----------------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 $10.210 $.270* $(.031) $(.275) $(.074)
Class C
9/19/94 to 2/28/95 10.040 .218* .139 (.223) (.074)
Class R
Year ended, 2/28/95 10.740 .582 (.531) (.587) (.074)
2/28/94 10.850 .598 (.054) (.596) (.058)
2/28/93 10.140 .633 .707 (.626) (.004)
8 months ended 2/29/92 9.920 .429 .218 (.427) --
Year ended 6/30/91 9.790 .639 .133 (.642) --
6/30/90 9.850 .641 (.058) (.643) --
6/30/89 9.240 .649* .610 (.649) --
6/30/88 9.280 .647* (.040) (.647) --
6/30/87** 9.600 .652* (.320) (.652) --
- ----------------------------------------------------------------------------------------------
CA INS
- ----------------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 10.220 .255* .068 (.265) (.028)
Class C
9/13/94 to 2/28/95 10.060 .210* .123 (.215) (.028)
Class R
Year ended, 2/28/95 10.670 .559 (.412) (.559) (.028)
2/28/94 10.850 .560 (.101) (.556) (.083)
2/28/93 10.010 .584 .871 (.579) (.036)
8 months ended 2/29/92 9.650 .401 .360 (.401) --
Year ended 6/30/91 9.480 .600 .176 (.606) --
6/30/90 9.630 .608 (.151) (.607) --
6/30/89 9.020 .607 .610 (.607) --
6/30/88 8.980 .600* .040 (.600) --
6/30/87** 9.600 .630* (.620) (.630) --
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes on page 82.
76
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
----------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value++ (in thousands) net assets net assets turnover rate
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
$10.100 2.52% $ 3,146 1.00%+* 5.81%+* 32%
10.100 3.71 200 1.75+* 5.03+* 32
10.130 .78 208,080 .71 5.83 32
10.740 5.08 218,430 .73 5.47 19
10.850 13.66 183,215 .71 6.05 5
10.140 6.61 133,377 .67+ 6.30+ --
9.920 8.16 107,508 .69 6.48 15
9.790 6.14 78,704 .69 6.51 8
9.850 14.12 52,048 .75* 6.79* 22
9.240 6.87 29,640 .70* 7.09* 48
9.280 3.28 19,094 .18* 6.62* 17
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
10.250 3.33 4,753 1.05+* 5.45+* 25
10.150 3.45 222 1.80+* 4.69+* 25
10.230 1.68 198,928 .70 5.60 25
10.670 4.27 208,115 .71 5.12 14
10.850 15.05 168,852 .75 5.72 9
10.010 7.99 100,933 .64+ 5.97+ 7
9.650 8.43 74,551 .68 6.26 29
9.480 4.93 50,625 .70 6.36 13
9.630 13.97 35,032 .82 6.52 23
9.020 7.44 22,394 .82* 6.77* 31
8.980 (.13) 16,192 .17* 6.48* 4
- --------------------------------------------------------------------------------------------
</TABLE>
77
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
------------------------------------------------------------------------
Net realized
Net asset and unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments+++ income capital gains
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MA
- -------------------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 $ 9.540 $.254* $ .025 $(.259) $ --
Class C
10/6/94 to 2/28/95 9.280 .188* .254 (.212) --
Class R
Year ended,
2/28/95 9.940 .541* (.403) (.538) --
2/28/94 9.910 .543* .038 (.541) (.010)
2/28/93 9.210 .563* .704 (.563) (.004)
3 months ended 2/29/92 9.130 .146 .077 (.143) --
Year ended,
11/30/91 8.760 .577* .375 (.582) --
11/30/90 8.900 .587* (.144) (.583) --
11/30/89 8.600 .587* .300 (.587) --
11/30/88 8.250 .581* .350 (.581) --
12/10/86 to 11/30/87 9.600 .577* (1.350) (.577) --
- -------------------------------------------------------------------------------------------------
MA INS
- -------------------------------------------------------------------------------------------------
Class A
9/7/94 to 1/31/95 10.030 .249* .039 (.258) --
Class C
9/15/94 to 1/31/95 9.910 .202* .137 (.209) --
Class R
Year ended,
2/28/95 10.450 .545 (.386) (.549) --
2/28/94 10.440 .537 -- (.527) --
2/28/93 9.650 .551 .784 (.545) --
2/29/92 9.360 .570 .301 (.581) --
2/28/91 9.140 .568 .219 (.567) --
2/28/90 8.960 .571* .178 (.569) --
2/28/89 9.030 .576* (.070) (.576) --
2/29/88 9.540 .582* (.510) (.582) --
12/10/86 to 2/28/87 9.600 .131* (.060) (.131) --
- -------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 82.
78
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
----------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value++ (in thousands) net assets net assets turnover rate
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
$ 9.560 3.05% $ 1,067 1.00%*+ 5.75%*+ 17%
9.510 4.86 147 1.75*+ 5.11*+ 17
9.540 1.64 71,568 .75* 5.77* 17
9.940 5.96 71,942 .75* 5.38* 3
9.910 14.21 53,231 .75* 5.91* 5
9.210 2.44 34,470 .71+ 6.31+ 5
9.130 11.19 31,150 .75* 6.39* 19
8.760 5.21 20,829 .75* 6.68* 23
8.900 10.62 15,513 .75* 6.64* 31
8.600 11.56 9,485 .75* 6.74* 55
8.250 (8.19) 5,681 .37*+ 6.47*+ 34
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
10.060 2.99 1,956 1.15*+ 5.34*+ 10
10.040 3.52 338 1.90*+ 4.58*+ 10
10.060 1.77 57,137 .79 5.54 10
10.450 5.22 58,255 .84 5.09 3
10.440 14.28 47,098 .86 5.47 2
9.650 9.57 28,189 .72 5.93 5
9.360 8.95 15,625 .85 6.19 6
9.140 8.52 8,649 .97* 6.17* 15
8.960 5.84 5,404 .97* 6.44* 41
9.030 1.14 4,895 .59* 6.53* 42
9.540 .75 2,312 --*+ 5.82*+ --
- --------------------------------------------------------------------------------------------
</TABLE>
79
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
----------------------------------------------------------------
Net realized
and
Net asset unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income+++ investments income capital gains
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NY
- -----------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 $10.230 $.277* $(.067) $(.273) $(.047)
Class C
9/14/94 to 2/28/95 10.110 .231* .038 (.222) (.047)
Class R
Year ended,
2/28/95 10.720 .579 (.529) (.573) (.047)
2/28/94 10.610 .578* .161 (.580) (.049)
2/28/93 9.880 .603* .806 (.598) (.081)
3 months ended 2/29/92 9.820 .163 .053 (.156) --
Year ended,
11/30/91 9.380 .629* .441 (.630) --
11/30/90 9.560 .631* (.181) (.630) --
11/30/89 9.180 .633* .380 (.633) --
11/30/88 8.760 .625* .420 (.625) --
12/10/86 to 11/30/87 9.600 .612* (.840) (.612) --
- -----------------------------------------------------------------------------------------
NY INS
- -----------------------------------------------------------------------------------------
Class A
9/7/94 to 1/31/95 10.160 .253* .037 (.260) (.040)***
Class C
9/14/94 to 1/31/95 10.030 .207* .133 (.210) (.040)***
Class R
Year ended,
2/28/95 10.630 .555 (.440) (.555) (.040)***
2/28/94 10.620 .550 .035 (.543) (.032)
2/28/93 9.780 .566 .849 (.562) (.013)
2/29/92 9.320 .590 .467 (.597) --
2/28/91 9.250 .598 .068 (.596) --
2/28/90 9.060 .596 .190 (.596) --
2/29/89 9.100 .593* (.040) (.593) --
2/29/88 9.830 .606* (.730) (.606) --
12/10/86 to
2/28/87 9.600 .130* .230 (.130) --
- -----------------------------------------------------------------------------------------
</TABLE>
See notes on page 82.
80
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
----------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value++ (in thousands) net assets net assets turnover rate
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
$10.120 2.21% $ 3,189 1.00%*+ $5.87%*+ 29%
10.110 2.80 86 1.75*+ 5.16*+ 29
10.150 .75 149,454 .74 5.79 29
10.720 7.10 146,297 .75* 5.33* 15
10.610 14.79 107,146 .75* 5.84* 12
9.880 2.21 66,491 .75+ 6.27+ 16
9.820 11.79 59,351 .75* 6.50* 19
9.380 4.92 44,347 .75* 6.65* 51
9.560 11.34 29,040 .75* 6.63* 85
9.180 12.20 14,975 .75* 6.89* 71
8.760 (2.44) 8,239 .37*+ 6.46*+ 20
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
10.150 3.01 7,258 1.05*+ 5.41*+ 11
10.120 3.53 285 1.80*+ 4.65*+ 11
10.150 1.37 345,121 .65 5.57 11
10.630 5.57 388,176 .68 5.11 5
10.620 14.96 314,877 .73 5.56 6
9.780 11.66 167,048 .69 6.08 4
9.320 7.61 80,484 .73 6.46 13
9.250 8.75 40,372 .85 6.35 30
9.060 6.37 20,206 .97* 6.58* 62
9.100 (.85) 14,078 .61* 6.73* 36
9.830 3.76 5,177 -- 4.97*+ --
- --------------------------------------------------------------------------------------------
</TABLE>
81
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
---------------------------------------------------------------------
Net realized
Net asset and unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments+++ income capital gains
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OH
- ----------------------------------------------------------------------------------------------
Class A
9/7/94 to 2/28/95 $10.160 $.266 $ .087 $(.272) $(.041)
Class C
9/16/94 to 2/28/95 10.070 .219* .133 (.221) (.041)
Class R
Year ended,
2/28/95 10.610 .568 (.388) (.569) (.041)
2/28/94 10.580 .570* .087 (.565) (.062)
2/28/93 9.870 .595* .728 (.589) (.024)
3 months ended 2/29/92 9.770 .154 .126 (.153) (.027)
Year ended,
11/30/91 9.530 .619 .287 (.624) (.042)
11/30/90 9.550 .624 .003 (.624) (.023)
11/30/89 9.040 .629* .510 (.629) --
11/30/88 8.610 .626* .430 (.626) --
12/10/86 to 11/30/87 9.600 .600* (.990) (.600) --
- ----------------------------------------------------------------------------------------------
</TABLE>
* Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser. See note 7 of Notes to Financial Statements.
** Shares in the California and California Insured Funds were first offered for
sale on July 1, 1986.
*** The amounts shown include distributions in excess of capital gains of
$.0015 per share.
+ Annualized.
++ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gain distributions if any, and changes in net asset
value per share.
+++ Net of taxes, if applicable. See note 1 of Notes to Financial Statements.
82
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT
FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
----------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value++ (in thousands) net assets net assets turnover rate
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
$10.200 3.63% 4,320 1.00%+* 5.67%+* 28%
10.160 3.63 901 1.75+* 4.92+* 28
10.180 1.99 162,231 .73 5.70 28
10.610 6.30 167,448 .75* 5.28* 9
10.580 13.88 133,797 .75* 5.86* 13
9.870 2.87 90,121 .70+ 6.16+ 3
9.770 9.84 81,649 .71 6.37 16
9.530 6.86 56,887 .74 6.61 38
9.550 12.97 37,714 .75* 6.66* 66
9.040 12.56 20,144 .75* 6.94* 55
8.610 (4.10) 9,135 .39+* 6.53+* 26
- --------------------------------------------------------------------------------------------
</TABLE>
83
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Nuveen California Tax-Free Fund, Inc.
Nuveen Tax-Free Bond Fund, Inc.
Nuveen Insured Tax-Free Bond Fund, Inc.:
We have audited the accompanying statements of net assets of
NUVEEN CALIFORNIA TAX-FREE FUND, INC. (comprised of the
Nuveen California and California Insured Tax-Free Value
Funds) (a Maryland corporation), NUVEEN TAX-FREE BOND FUND,
INC. (comprised of the Nuveen Massachusetts, New York and
Ohio Tax-Free Value Funds) and NUVEEN INSURED TAX-FREE BOND
FUND, INC, (comprised of the Nuveen Massachusetts and New
York Insured Tax-Free Value Funds) (both Minnesota
corporations), including the portfolios of investments, as of
February 28, 1995, 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, 1995, by correspondence with the custodian and
brokers. As to securities purchased but not received, we
requested confirmation from brokers and, when replies were
not received, we carried out other alternative auditing
procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the net assets of each of the respective funds
constituting the Nuveen California Tax-Free Fund, Inc.,
Nuveen Tax-Free Bond Fund, Inc. and Nuveen Insured Tax-Free
Bond Fund, Inc. as of February 28, 1995, 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 3, 1995
84
<PAGE>
The
human bond
[PHOTO OF BOOK APPEARS HERE]
At John Nuveen & Co.
Incorporated, where our
tax-free municipal bonds have
helped people live their
dreams for nearly 100 years,
we still believe our strongest
bond is human.(TM)
For almost a century, John Nuveen & Company has concentrated its resources and
expertise on one area: municipal bonds. We are the oldest and largest investment
banking firm specializing exclusively in municipal securities, and we strive to
be the best.
We maintain a sharp focus on the needs of prudent investors and their
families, offer investments of quality, and then work to make them better by
seeking out opportunity. We hold to a dedicated belief in the importance of
research. And we sustain a commitment to sound financial management through
value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we hope to provide our shareholders
with the attractive level of income they need to achieve their personal goals
and aspirations.
These are the things that matter most, and it's why we say that, at Nuveen,
our strongest bond is human.
[LOGO OF JOHN NUVEEN]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
