<PAGE>
Nuveen Tax-Free [NUVEEN LOGO]
Mutual Funds [PHOTO APPEARS HERE]
Dependable tax-free
income for generations
ARIZONA
FLORIDA
MARYLAND
MICHIGAN
NEW JERSEY
PENNSYLVANIA
VIRGINIA
SEMIANNUAL REPORT/JULY 31, 1995
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
13 Portfolio of investments
36 Statement of net assets
38 Statement of operations
40 Statement of changes in net assets
44 Notes to financial statements
56 Financial highlights
<PAGE>
Dear
shareholder
Over the past 12 months, we have endured somewhat of a roller-coaster ride in
the municipal bond market: First, we saw the conclusion of one of the worst
periods in recent bond market history, capped by the December bankruptcy of
Orange County, California, a major municipal issuer with a seemingly healthy
credit rating. Then, in early 1995, we experienced a welcome rebound in the bond
markets. In July, the Federal Reserve Board's move to ease short-term interest
rates inspired much speculation about further cuts as well as about the pace of
economic growth going forward.
Throughout this time, we have kept our sights focused on successfully
meeting the objectives of your Fund: providing you with a dependable source of
tax-free income from a portfolio of investment-grade quality municipal bonds.
As of July 31, 1995, current yields on net asset values for the funds
covered in this report ranged from 4.87% to 5.44%. To match these yields, an
investor in the 36% federal income tax bracket would have had to earn between
7.61% and 8.50% on taxable alternatives, which would be very difficult to
achieve using bonds of comparable credit quality. And when state taxes are added
to this equation, the after-tax yield advantage provided by municipal bonds is
even greater.
[PHOTO APPEARS HERE]
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
3
<PAGE>
In addition, each of the funds covered in this report posted gains in net
asset value over July 31, 1994, reflecting growth of fund principal. Total
returns for these funds ranged from 7.08% to 8.25% for the 12-month period.
These performance numbers remind us of the important role that municipal
bonds--and the tax-free income they provide--can play as part of an investment
strategy focused on diversification and long-term performance. Over time,
municipal bonds have proven to be a valuable and dependable component of
successful investment programs.
The value and dependability of your municipal bond investments are enhanced
by the fact that you have chosen Tax-Free Mutual Funds managed by Nuveen. We
offer a combination of professional management, award-winning research, and
shareholder service that distinguishes Nuveen as a fund manager.
Our value approach to portfolio management gives Nuveen an important edge
in managing municipal investments. We use a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by selecting securities that are underpriced or undervalued by the
market. This approach is supported by the strength of Nuveen Research, which
provides the insights and experience to assist portfolio managers in identifying
and selecting bonds with strong credit quality.
Nuveen also prides itself on providing exceptional service to its
shareholders. Through annual and semiannual reports, regular statements, as well
as our toll-free information lines, our communication programs help us stay in
touch with your needs and concerns. We also provide support to financial
advisers across the nation by supplying them with the information they need to
answer your questions and to ensure that products are selected to meet your
needs.
As you review the following pages detailing the solid performance of your
Tax-Free Mutual Fund, I hope you come away with the feeling that these results,
coupled with Nuveen's continued pledge of superior service, add up to a
rewarding investing experience. We look forward to serving your tax-free
investment needs in the future.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
September 15, 1995
4
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, offers insights into
our approach to fund management and the outlook for Nuveen's Tax-Free Mutual
Funds.
What does Nuveen mean by "value investing"?
At Nuveen, we define value investing as a disciplined approach to security
selection and portfolio construction designed to deliver above-market
performance by emphasizing securities that are underpriced or undervalued. Our
value investing approach avoids predictions about the direction of the markets
or the economy in general, concentrating instead on identifying individual bonds
with current yields, prices, credit quality, and future prospects that are
exceptionally attractive in relation to other bonds in the market.
While the concept sounds simple, successful value investing must be based
on sound research that supports the selection of quality bonds. It also requires
an ability to recognize value by gaining insights into individual issuers as
well as specific bonds-information that often goes beyond that which is readily
5
<PAGE>
available to the market in general. Having the largest research staff in the
investment management industry dedicated exclusively to gathering this type of
information on municipal bonds is reflected in the long-term results of our
value investing approach.
At Nuveen, we believe that value investing gives us an important edge in
the management of municipal bond funds, an edge that translates to helping you
meet your goals and expectations.
How does the work done by Nuveen's Research Department help support the value of
my funds?
At Nuveen, we believe that attention to detail combined with years of experience
is the foundation for sound research. And sound research is one of the core
elements of our disciplined approach to providing you with dependable income,
credit quality, and diversification-key elements of a successful fixed-income
investment program.
Our award-winning team of more than 30 research professionals provides
invaluable support to our portfolio managers, assisting them in careful analysis
of bond issues considered for purchase-even those rated AAA by the rating
agencies.
On a daily basis, our research analysts prepare credit reviews to assist in
the selection of bonds that offer the best combination of yield and security,
monitor the continued creditworthiness of portfolio holdings, and analyze
economic, political, and demographic trends affecting the markets. This
6
<PAGE>
daily surveillance of events and trends in the credit markets helps us to
monitor the underlying value of our holdings and avoid any potential downgrades.
This combination of indepth research and review helps ensure that your tax-free
municipal investments meet your expectations for dependable income and credit
safety.
What impact have interest rates had on bond portfolios?
Between February 1994 and February 1995, the Federal Reserve Board moved an
unprecedented seven times to raise short-term interest rates. Board chairman
Greenspan justified the hikes in short-term rates on the basis that the
increases would cause the economy to slow enough in the future to relieve any
inflationary pressures and avoid any significant increase in the rate of
inflation. These increases in short-term rates reduced demand for long-term
bonds, which had the complementary effects of lowering bond prices and raising
bond yields.
On July 6, 1995, after much anticipation, the Federal Reserve Board
cautiously declared victory for this policy, making its first move to ease rates
in nearly three years. Long-term bond yields had already fallen substantially,
in anticipation of the Fed's move.
During this time period, all bond investors, including holders of mutual
funds invested in municipal bonds, have felt the effect of these interest
7
<PAGE>
rate changes on their fixed income portfolios. In 1994, the prices of all bonds
and bond funds declined as interest rates rose. At the beginning of 1995,
however, as it appeared that the rate increases were behind us, we saw a rebound
in the markets that continued through the first half of the year and we have
seen an increase in portfolio values.
What is the current outlook for municipal bonds?
With the rebound in the bond market at the beginning of 1995 and some consensus
that inflation is under control, economic indicators are favorable for municipal
bonds. Technical issues also point to a more favorable climate.
One technical issue that affects bond prices is the supply and demand
situation. While supplies of municipal bonds had been lagging over the past few
quarters, new issue supply rose sharply in the second quarter of 1995. Demand,
however, has been somewhat subdued by extraordinary market volatility over the
past 18 months and by mounting interest in the ramifications of proposed tax
reform.
We anticipate that demand will gain strength based on the fact that
municipal bonds continue to be a fundamentally sound and attractive investment
option, offering one of the few remaining tax-advantaged investments. Once
investors are more confident that the interest rate environment has stabilized,
we expect to see the demand for municipal investments resume its long-term
upward trend.
8
<PAGE>
NUVEEN ARIZONA TAX-FREE
VALUE FUND
Arizona
Shareholders enjoyed a year of relatively steady monthly dividends, with a
dividend increase in October and a slight decrease in July.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.0450 .0455 .0450
8 '94
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 5.17%
Taxable-equivalent yield on R Shares** 8.55%
12-mo. total return on R Shares* 8.04%
Taxable-equivalent total return on R Shares** 11.67%
Combined state and federal tax rate 39.5%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 12.
NUVEEN FLORIDA TAX-FREE
VALUE FUND
Florida
Shareholders of the Florida fund enjoyed two dividend increases during the
period in addition to a capital gains distribution in September.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.0451
.0425 .0425 .0430 .0440
8 '94
. Capital Gains
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 5.13%
Taxable-equivalent yield on R Shares** 8.02%
12-mo. total return on R Shares* 7.63%
Taxable-equivalent total return on R Shares** 10.63%
Federal tax rate 36.0%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 12.
9
<PAGE>
NUVEEN MARYLAND TAX-FREE
VALUE FUND
Maryland
Nuveen funds set dividends with stability in mind, seeking a level that is
expected to be sustainable over time. The Fund adjusted the monthly tax-free
dividend in July following two dividend increases during the period.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.0446
.0425 .0435 .0440 .0430
8 '94
. Capital Gains
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 4.87%
Taxable-equivalent yield on R Shares** 8.12%
12-mo. total return on R Shares* 8.20%
Taxable-equivalent total return on R Shares** 11.82%
Combined state and federal tax rate 40.0%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 12.
NUVEEN MICHIGAN TAX-FREE
VALUE FUND
Michigan
Shareholders of the Michigan fund enjoyed two dividend increases during the
period in addition to a capital gains distribution in September.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.0474
.0445 .0445 .0450 .0455
8 '94
. Capital Gains
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 5.25%
Taxable-equivalent yield on R Shares** 8.82%
12-mo. total return on R Shares* 7.64%
Taxable-equivalent total return on R Shares** 11.36%
Combined state and federal tax rate 40.5%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 12.
10
<PAGE>
NUVEEN NEW JERSEY TAX-FREE VALUE FUND
New Jersey
Shareholders benefited from an attractive level of income; the dividend rate was
raised three times during the period. In addition, shareholders received a
capital gains distribution in September.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.1299
.0435 .0435 .0450 .0465 .0475
8 '94
. Capital Gains
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 5.44%
Taxable-equivalent yield on R Shares** 9.07%
12-mo. total return on R Shares* 7.08%
Taxable-equivalent total return on R Shares** 10.78%
Combined state and federal tax rate 40.0%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 12.
NUVEEN PENNSYLVANIA TAX-FREE VALUE FUND
Pennsylvania
Shareholders enjoyed a year of relatively steady monthly dividends, with a
dividend increase in February and a slight decrease in June.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.0445 .0455 .0440
8 '94
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 5.17%
Taxable-equivalent yield on R Shares** 8.34%
12-mo. total return on R Shares* 8.25%
Taxable-equivalent total return on R Shares** 11.65%
Combined state and federal tax rate 38.0%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 12.
11
<PAGE>
NUVEEN VIRGINIA TAX-FREE
VALUE FUND
Virginia
Shareholders enjoyed a year of relatively steady monthly dividends, with a
modest dividend reduction in June reflecting the effect of bond calls.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
.0450 .0440
8 '94
- -------------------------------------------------------------------------------
FUND HIGHLIGHTS 7/31/95
- -------------------------------------------------------------------------------
Current SEC yield on R Shares* 5.31%
Taxable-equivalent yield on R Shares** 8.78%
Total return on R Shares* 7.70%
Taxable-equivalent total return on R Shares** 11.31%
Combined state and federal tax rate 39.5%
- -------------------------------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on this page.
* All shares issued prior to September 6, 1994, have been designated as Class R
Shares, which are currently available only for dividend reinvestment and certain
other restricted situations. Please see Financial Highlights beginning on page
56 for additional data on Class A and C Shares.
**An investor subject to the indicated state and federal income tax rate would
have to receive this return from a fully taxable investment to equal the stated
yield and total return on an after-tax basis.
12
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(Unaudited)
NUVEEN ARIZONA TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 250,000 Arizona Certificates of
Participation,
6.250%, 9/01/10 9/02 at 102 Aaa $ 261,975
Arizona Educational Loan
Marketing Corporation,
Alternative Minimum Tax:
200,000 7.000%, 3/01/05 3/02 at 101 A 215,588
100,000 6.375%, 9/01/05 9/02 at 101 Aa 105,709
300,000 Arizona Health Facilities
Authority
(Phoenix Baptist Hospital
and Medical Center),
6.250%, 9/01/11 9/03 at 100 Aaa 311,337
200,000 Arizona Municipal
Financing Program,
Certificates of
Participation, 7.700%,
8/01/10 No Opt. Call Aaa 232,020
200,000 Arizona State
Transportation Board,
6.500%, 7/01/11 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 Aaa 223,590
500,000 Arizona State University,
5.750%, 7/01/12 7/02 at 101 AA 498,365
500,000 Arizona Student Loan
Acquisition Authority,
Alternative Minimum Tax,
6.600%, 5/01/10 5/04 at 102 Aa 522,645
175,000 Arizona Wastewater
Management Authority,
5.950%, 7/01/12 7/02 at 102 Aaa 178,136
700,000 Apache County Public
Finance Corporation,
Certificates of
Participation, 5.500%,
5/01/10 5/00 at 102 A 675,269
195,000 Central Arizona Water
Conservation District,
6.500%, 11/01/11 (Pre-
refunded to 5/01/01) 5/01 at 102 AA- 216,099
300,000 Cochise County, Unified
School District No. 68,
General Obligation,
7.500%, 7/01/10 No Opt. Call Aaa 364,296
250,000 Coconino and Yavapai
Counties, Joint Unified
School District No. 9,
6.750%, 7/01/07 7/01 at 101 A- 266,878
280,000 Eloy Municipal Property
Corporation,
7.000%, 7/01/11 7/02 at 101 BBB 290,900
300,000 Maricopa County Hospital
District No. 1,
6.250%, 6/01/10 6/04 at 101 Aaa 316,542
300,000 Maricopa County Industrial
Development Authority
(Catholic Healthcare
West),
5.750%, 7/01/11 7/02 at 102 Aaa 299,361
500,000 Maricopa County Industrial
Development Authority
(Samaritan Health
Services),
7.000%, 12/01/16 No Opt. Call Aaa 578,915
375,000 Maricopa County Rural Road
Improvement District,
6.900%, 7/01/05 7/99 at 101 N/R 390,236
50,000 Maricopa County School
District No. 28,
General Obligation,
6.000%, 7/01/12 7/02 at 100 Aaa 50,788
265,000 Maricopa County School
District No. 28,
6.000%, 7/01/12 (Pre-
refunded to 7/01/02) 7/02 at 100 Aaa 285,779
200,000 Maricopa County Unified
School District No. 41,
6.500%, 7/01/08 (Pre-
refunded to 7/01/02) 7/02 at 100 Aaa 221,410
250,000 Maricopa County Unified
School District No. 69
(Paradise Valley),
6.500%, 7/01/09 (Pre-
refunded to 7/01/01) 7/01 at 100 Aaa 274,348
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN ARIZONA TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Mohave County Industrial
Development Authority
(Citizens Utilities
Company), Alternative
Minimum Tax, 6.600%, 5/01/29 11/03 at 101 AAA $ 510,680
1,000,000 Navajo County Pollution
Control Corporation (Arizona
Public Service Company),
5.875%, 8/15/28 8/03 at 102 Baa1 934,640
425,000 Peoria Improvement District
(North Valley Power Center),
7.300%, 1/01/12 1/03 at 101 BBB 456,437
200,000 Phoenix General Obligation,
6.500%, 7/01/11 (Pre-
refunded to 7/01/99) 7/99 at 102 AA+ 218,702
250,000 Phoenix Civic Improvement
Corporation, Airport
Terminal Excise Tax,
Alternative Minimum Tax,
7.800%, 7/01/11 7/97 at 102 AA+ 269,133
Phoenix Civic Improvement
Corporation, Wastewater
System:
400,000 6.125%, 7/01/23 (Pre-refunded
to 7/01/03) 7/03 at 102 AAA 442,556
500,000 4.750%, 7/01/23 7/04 at 102 A1 410,570
295,000 Phoenix Housing Finance
Corporation,
FHA-Insured, 6.500%, 7/01/24 7/02 at 101 Aaa 299,897
200,000 Phoenix Industrial
Development Authority,
FHA-Insured (Chris Ridge
Village Project),
6.750%, 11/01/12 11/02 at 101 AAA 209,752
500,000 Phoenix Industrial
Development Authority, GNMA
(Meadow Glen Apartments),
5.800%, 8/20/28 2/03 at 102 Aaa 472,005
485,000 Phoenix Industrial
Development Authority,
Single Family Mortgage,
Alternative Minimum Tax,
6.150%, 12/01/08 6/05 at 102 AAA 491,460
Phoenix Industrial
Development Authority
(John C. Lincoln Hospital
and Health Center):
500,000 6.000%, 12/01/10 12/03 at 102 BBB+ 482,955
500,000 6.000%, 12/01/14 12/03 at 102 BBB+ 463,845
300,000 Phoenix Junior Lien Street
and Highway,
6.250%, 7/01/11 7/02 at 102 A+ 312,240
290,000 Pima County Industrial
Development Authority
(Tucson Electric), 7.250%,
7/15/10 1/02 at 103 Aaa 320,201
300,000 Pima County Unified School
District No. 1, General
Obligation, 6.100%, 7/01/12 7/02 at 102 Aaa 308,067
500,000 Pima County Single Family
Mortgage, 6.500%, 2/01/17 8/05 at 102 A 498,275
Pinal County Certificates of
Participation:
300,000 6.375%, 6/01/06 6/02 at 100 AA 316,125
200,000 6.500%, 6/01/09 6/02 at 100 AA 206,620
</TABLE>
14
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Salt River Project, Agricultural
Improvement and Power District:
$ 300,000 5.750%, 1/01/19 1/02 at 100 Aa $ 291,714
280,000 5.750%, 1/01/20 1/96 at 100 Aa 269,338
225,000 Tempe General Obligation, 6.000%,
7/01/08 7/02 at 101 AA+ 234,621
500,000 Tempe Industrial Development
Authority, Multi-Family Housing,
FHA-Insured (Quadrangles Village
Apartments), 6.250%, 6/01/26 6/03 at 102 AAA 502,860
600,000 Tempe Union High School District
No. 213, General Obligation,
6.000%, 7/01/12 7/04 at 101 Aaa 613,956
500,000 Tucson General Obligation, 6.250%,
7/01/18 7/04 at 101 Aaa 516,750
575,000 Tucson Airport Authority, 5.700%,
6/01/13 6/03 at 102 Aaa 562,983
250,000 Tucson Local Business Development
Finance Corporation, 6.250%,
7/01/12 7/02 at 102 Aaa 258,785
300,000 University of Arizona, 6.250%,
6/01/11 6/02 at 102 AA 312,353
335,000 Yavapai County Community College
District, 6.000%, 7/01/12 7/03 at 101 A- 337,716
675,000 Yuma County Union High School
District No. 70, General
Obligation, 5.700%, 7/01/06 7/02 at 101 Aaa 703,484
- ------------------------------------------------------------------------------------
$18,575,000 Total Investments - (cost
$18,483,234) - 97.4% 19,008,906
- ------------------------------------------------------------------------------------
- -------------------
----------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.5%
$ 100,000 Maricopa County Pollution Control
Corporation (Arizona Public
Service Company, Palo Verde
Project), Series G, Variable Rate
Demand Bonds,
4.200%, 5/01/29+ A-1+ 100,000
200,000 Maricopa County Pollution Control
Corporation (Arizona Public
Service Company, Palo Verde
Project), Series F, Variable Rate
Demand Bonds,
4.200%, 5/01/29+ A-1 200,000
- ------------------------------------------------------------------------------------
- -------------------
----------------
$ 300,000 Total Temporary Investments - 1.5% 300,000
- ------------------------------------------------------------------------------------
- -------------------
----------------
Other Assets Less Liabilities -
1.1% 212,026
- ------------------------------------------------------------------------------------
Net Assets - 100% $19,520,932
</TABLE>
- --------------------------------------------------------------------------------
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN ARIZONA 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 27 $ 9,811,933 52%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 3,461,424 18
PORTFOLIO OF A+ A1 2 722,810 4
INVESTMENTS A, A- A, A2, A3 5 1,993,726 10
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 5 2,628,777 14
TEMPORARY Non-rated Non-rated 1 390,236 2
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 52 $19,008,906 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions: 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: 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.
16
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(Unaudited)
NUVEEN FLORIDA TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 300,000 Florida Department of General
Services, General
Obligation, 6.600%, 7/01/17 7/02 at 101 Aa $ 320,994
2,500,000 Florida Housing Finance
Agency, Alternative Minimum
Tax, 6.875%, 8/01/26 2/05 at 102 Aaa 2,595,625
750,000 Florida Housing Finance
Agency, 6.400%, 6/01/24 6/02 at 103 AAA 765,818
55,000 Florida Housing Finance
Agency, Home Ownership
(GNMA), Alternative Minimum
Tax, 8.595%, 11/01/18 No Opt. Call AAA 56,375
Florida Municipal Power
Agency:
1,000,000 6.250%, 10/01/21 (Pre-
refunded to 10/01/02) 10/02 at 102 Aaa 1,115,420
1,145,000 6.000%, 10/01/27 (Pre-
refunded to 10/01/02) 10/02 at 102 Aaa 1,259,844
1,000,000 Florida Municipal Power
Agency, St. Lucie Project,
5.500%, 10/01/12 10/02 at 102 Aaa 967,570
Florida State Board of
Education:
1,160,000 7.100%, 6/01/07 No Opt. Call Aaa 1,234,460
2,250,000 5.875%, 6/01/20 6/05 at 101 Aa 2,210,850
360,000 7.250%, 6/01/23 (Pre-refunded
to 6/01/00) 6/00 at 102 Aaa 409,025
1,915,000 7.250%, 6/01/23 6/00 at 102 Aa 2,120,116
650,000 Florida Turnpike Authority,
6.350%, 7/01/22 (Pre-
refunded to 7/01/02) 7/02 at 101 Aaa 722,267
300,000 Brevard County Educational
Facilities Authority
(Florida Institute of
Technology),
6.875%, 11/01/22 11/02 at 102 BBB 307,479
600,000 Broward County Housing
Finance Authority (Lakeside
Apartments), 7.000%, 2/01/25 2/05 at 102 AAA 633,492
200,000 Cape Coral Health Facilities
Authority (Cape Coral
Medical Center), 8.125%,
11/01/08 No Opt. Call Aaa 220,284
1,000,000 Dade County (Miami
International Airport),
Alternative Minimum Tax,
6.550%, 10/01/13 10/02 at 102 Aaa 1,041,100
115,000 Dade County Housing Finance
Authority, Single Family
Mortgage, Alternative
Minimum Tax, 7.250%, 9/01/23 3/01 at 102 Aaa 121,143
2,480,000 Dade County (Jackson Memorial
Hospital), 4.875%, 6/01/15 6/03 at 102 Aaa 2,156,162
470,000 Dade County Special Housing
(City of Miami
Developments), 12.000%,
7/01/12 7/96 at 102 A 483,357
255,000 Dade County (Courthouse
Center),
6.300%, 4/01/14 4/04 at 102 A 259,529
250,000 Dade County Health Facilities
Authority
(South Miami Hospital),
7.000%, 10/01/18 10/99 at 102 Aaa 271,953
300,000 Dade County Health Facilities
Authority
(North Shore Medical
Center), 6.500%, 8/15/15 8/02 at 102 Aaa 312,033
1,000,000 Davie Water and Sewer System,
6.250%, 10/01/17 10/02 at 102 Aaa 1,020,860
600,000 Daytona Beach Water and Sewer
System,
6.000%, 11/15/14 11/02 at 102 Aaa 601,626
1,600,000 Dunedin (Mease Health Care),
5.375%, 11/15/13 11/03 at 101 Aaa 1,513,472
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN FLORIDA TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Escambia County Housing
Finance Authority,
Single Family Mortgage,
Alternative Minimum Tax:
$ 325,000 6.900%, 4/01/20 10/02 at 102 Aaa $ 335,858
2,000,000 6.950%, 10/01/27 4/05 at 102 Aaa 2,080,860
500,000 Escambia County School
Board, Certificates of
Participation, 6.375%,
2/01/12 2/02 at 100 Aaa 517,570
500,000 Gainesville Utility
System, 6.500%, 10/01/22 10/02 at 102 Aa 526,375
1,500,000 Hillsborough County
Aviation Authority
(Tampa International
Airport), Alternative
Minimum Tax, 5.375%,
10/01/23 10/03 at 102 Aaa 1,354,395
1,200,000 Hillsborough County
Industrial Development
Authority, Pollution
Control (Tampa
Electric), 8.000%,
5/01/22 5/02 at 103 Aa2 1,418,316
250,000 Hillsborough County
Capital Improvement
(Museum of Science and
Industry),
6.400%, 1/01/12 1/00 at 102 A 255,245
250,000 Hollywood Water and Sewer
System,
6.875%, 10/01/21 (Pre-
refunded to 10/01/01) 10/01 at 102 Aaa 283,993
Jacksonville Electric
Authority:
470,000 7.500%, 10/01/02 10/97 at 101 1/2 Aa1 508,305
500,000 5.500%, 10/01/14 10/02 at 101 Aa1 477,175
1,290,000 5.250%, 10/01/21 10/02 at 101 Aa1 1,162,961
1,000,000 5.250%, 10/01/28 10/02 at 101 Aa1 892,500
250,000 Jacksonville Excise
Taxes, 6.500%, 10/01/13 10/02 at 102 Aaa 263,735
605,000 Jacksonville Health
Facilities Authority
(Daughters of Charity
Health System - St.
Vincent),
7.500%, 11/01/15 (Pre-
refunded to 11/01/00) 11/00 at 102 Aaa 699,779
375,000 Jacksonville Water and
Sewer (Jacksonville
Suburban Utilities
Corporation),
Alternative Minimum Tax,
6.750%, 6/01/22 6/02 at 102 A2 398,779
250,000 Jupiter Water System,
6.250%, 10/01/18 10/01 at 102 Aaa 254,285
250,000 North Broward Hospital
District, 6.250%,
1/01/12 1/02 at 102 Aaa 253,900
Orange County Sales Tax:
145,000 6.125%, 1/01/19 No Opt. Call Aaa 157,083
1,500,000 5.375%, 1/01/24 1/03 at 102 Aaa 1,378,515
500,000 Orange County Water
Utilities System,
6.250%, 10/01/17 4/02 at 102 Aaa 507,284
1,000,000 Orange County Housing
Finance Authority
(Ashley Point
Apartments), Alternative
Minimum Tax, 7.100%,
10/01/24 10/01 at 101 BBB+ 1,025,760
Orlando Utilities
Commission:
1,250,000 6.000%, 10/01/20 10/02 at 102 Aa 1,245,050
1,000,000 5.500%, 10/01/20 10/99 at 100 Aa 929,280
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Orlando and Orange County
Expressway Authority:
$ 1,000,000 5.500%, 7/01/18 7/03 at 102 Aaa $ 938,110
1,000,000 5.125%, 7/01/20 7/03 at 102 Aaa 891,080
Palm Beach County Criminal Justice
Facilities:
1,000,000 5.300%, 6/01/05 No Opt. Call Aaa 1,025,350
1,000,000 5.375%, 6/01/10 No Opt. Call Aaa 987,350
2,000,000 Pensacola Health Facilities
Authority (Daughters of Charity -
Sacred Heart), 5.250%, 1/01/11 1/03 at 102 Aa 1,842,820
2,000,000 Pinellas County Health Facilities
Authority (Morton Plant Health
System), 5.500%, 11/15/18 11/03 at 102 Aaa 1,860,980
1,000,000 Reedy Creek Improvement District,
5.000%, 10/01/14 4/04 at 101 Aaa 893,200
565,000 St. Lucie County Solid Waste
System,
6.000%, 9/01/15 (Pre-refunded to
9/01/99) 9/99 at 100 Aaa 601,900
500,000 St. Petersburg Health Facilities
Authority
(St. Joseph's Hospital Inc.),
7.000%, 12/01/15 12/01 at 102 Aaa 545,010
1,000,000 Sarasota Water and Sewer System,
7.625%, 10/01/08 (Pre-refunded to
10/01/96) 10/96 at 102 Aaa 1,044,440
500,000 Tampa Water and Sewer System,
6.000%, 10/01/17 10/02 at 101 Aaa 500,994
1,000,000 Turtle Run Community Development
District, 6.400%, 5/01/11 5/03 at 100 A1 1,023,140
2,000,000 West Palm Beach Utility System,
5.400%, 10/01/23 10/02 at 101 Aaa 1,842,720
- --------------------------------------------------------------------------------------
$53,730,000 Total Investments - (cost
$52,774,213) - 97.4% 53,644,951
- --------------------------------------------------------------------------------------
- -------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.7%
$ 400,000 Jacksonville Health Facilities
Authority (Baptist Medical
Center), Series 1993, Variable
Rate Demand Bonds, 4.000%,
6/01/08+ A-1 400,000
- -------------------
- --------------------------------------------------------------------------------------
------------------
Other Assets Less Liabilities -
1.9% 1,020,320
- --------------------------------------------------------------------------------------
Net Assets - 100% $55,065,271
- --------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN FLORIDA 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 42 $36,236,920 68%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 13,654,742 25
PORTFOLIO OF A+ A1 1 1,023,140 2
INVESTMENTS A, A- A, A2, A3 4 1,396,910 3
(EXCLUDING TEMPORARY BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 1,333,239 2
INVESTMENTS):
- ---------------------------------------------------------------------------------------------
TOTAL 61 $53,644,951 100%
- ---------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: 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: 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.
20
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(Unaudited)
NUVEEN MARYLAND TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,500,000 Maryland Community
Development Administration,
Department of Housing and
Community Development,
Alternative Minimum Tax,
7.450%, 4/01/32 4/01 at 102 Aa $ 1,583,850
Maryland Community
Development Administration,
Multi-Family Housing:
700,000 6.700%, 5/15/27 5/02 at 102 Aa 718,109
500,000 6.750%, 5/15/33 5/02 at 102 Aa 514,265
2,000,000 Maryland General Obligation,
4.600%, 7/15/06 7/03 at 101 Aaa 1,900,680
Maryland Health and Higher
Educational Facilities
Authority (Doctors'
Community Hospital):
1,000,000 5.750%, 7/01/13 7/03 at 102 Baa 876,180
1,005,000 8.750%, 7/01/22 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 1,206,613
Maryland Health and Higher
Educational Facilities
Authority (Francis Scott Key
Medical Center):
1,800,000 5.000%, 7/01/13 7/03 at 102 Aaa 1,616,688
500,000 6.750%, 7/01/23 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 556,430
500,000 Maryland Health and Higher
Educational Facilities
Authority (Sinai Hospital of
Baltimore), 7.000%, 7/01/19
(Pre-refunded to 7/01/00) 7/00 at 102 Aaa 561,650
700,000 Maryland National Capital
Park and Planning
Commission, 6.125%, 7/01/10 7/02 at 102 Aa 729,463
1,760,000 Maryland Stadium Authority,
5.875%, 12/15/12 12/04 at 102 Aaa 1,767,814
Maryland Stadium Authority,
Sports Facility, Alternative
Minimum Tax:
500,000 7.375%, 12/15/04 12/99 at 102 Aa 550,400
500,000 7.500%, 12/15/10 12/99 at 102 Aa 545,625
3,415,000 Maryland Transportation
Authority
(Baltimore/Washington
International Airport),
Alternative Minimum Tax,
6.400%, 7/01/19 7/04 at 102 Aaa 3,557,747
1,000,000 Maryland Transportation
Authority,
5.750%, 7/01/15 7/02 at 100 A1 974,500
Baltimore General Obligation:
2,295,000 7.375%, 10/15/03 No Opt. Call Aaa 2,688,294
600,000 6.500%, 10/15/12 (Pre-
refunded to 10/15/02) 10/02 at 100 Aaa 666,474
1,000,000 Baltimore, GNMA (Tindeco
Wharf Apartments Project),
6.700%, 12/20/28 12/02 at 102 AAA 1,036,520
1,500,000 Baltimore Port Facilities
(Consolidated Coal Sales
Company), 6.500%, 10/01/11 4/02 at 103 Aa2 1,621,680
930,000 Baltimore Water System,
6.500%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 1,009,896
2,165,000 Gaithersburg (Shady Grove
Adventist Nursing and
Rehabilitation Center),
6.500%, 9/01/12 No Opt. Call Aaa 2,327,765
1,000,000 Howard County (Howard Hills
Townhouse
Project--FHA Insured),
6.400%, 7/01/24 7/02 at 102 Aaa 1,021,590
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MARYLAND TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,000,000 Howard County Multi-Family
Mortgage (Chase Glen
Project), 7.000%, 7/01/24
(Mandatory put 7/01/04) 7/02 at 104 N/R $ 2,187,200
Montgomery County Housing
Opportunities Commission,
Single-Family Mortgage:
450,000 7.250%, 7/01/13 7/96 at 103 Aa 468,563
1,615,000 6.600%, 7/01/14 7/04 at 102 Aa 1,677,258
1,000,000 Montgomery County, Solid
Waste Resource Recovery
Project, 5.875%, 6/01/13 6/03 at 102 Aaa 999,350
1,500,000 Morgan State University,
6.100%, 7/01/20 No Opt. Call Aaa 1,550,775
1,000,000 Northeast Maryland Waste
Disposal Authority,
Resource Recovery,
6.900%, 1/01/00 No Opt. Call Aaa 1,087,180
600,000 Prince George's County
(Dimensions Health
Corporation), 6.700%,
7/01/97 No Opt. Call A 624,396
1,550,000 Prince George's County
Housing Authority
(New Keystone
Apartments--FHA Insured),
6.800%, 7/01/25 1/02 at 102 Aaa 1,615,317
1,500,000 Prince George's County
Pollution Control
(Potomac Electric
Project), 6.375%, 1/15/23 1/03 at 102 A+ 1,587,780
1,000,000 University of Maryland,
5.000%, 10/01/11 10/03 at 101 AA+ 930,610
1,500,000 Washington Metropolitan
Area Transit Authority,
5.250%, 7/01/14 1/04 at 102 Aaa 1,386,450
1,170,000 Washington Suburban
Sanitary District,
8.000%, 1/01/02 No Opt. Call Aa1 1,385,233
500,000 Commonwealth of Puerto
Rico, General Obligation,
6.600%, 7/01/13
(Pre-refunded to 7/01/02) 7/02 at 101 1/2 Aaa 564,435
1,750,000 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/01/17 7/98 at 102 A 1,947,523
2,000,000 Puerto Rico Highway and
Transportation Authority,
5.250% 7/01/21 7/03 at 101 1/2 A 1,761,060
Puerto Rico Electric Power
Authority:
1,000,000 7.000%, 7/01/07 7/99 at 101 1/2 A- 1,070,110
315,000 7.125%, 7/01/14 (Pre-
refunded to 7/01/99) 7/99 at 101 1/2 AAA 351,934
185,000 7.125%, 7/01/14 7/99 at 101 1/2 A- 197,830
- -------------------------------------------------------------------------------
$47,505,000 Total Investments - (cost
$47,986,989) - 98.1% 49,425,237
- -------------------------------------------------------------------------------
- -------------------
-----------
</TABLE>
22
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(Unaudited)
NUVEEN MARYLAND TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 0.6%
$300,000 Maryland Energy Financing
Administration (Baltimore Ferst
Project), Alternative Minimum Tax,
Variable Rate Demand Bonds,
3.850%, 7/01/11+ VMIG-1 $ 300,000
- -------------------
- ----------------------------------------------------------------------------------
--------------
Other Assets Less Liabilities -
1.3% 640,477
- ----------------------------------------------------------------------------------
Net Assets - 100% $50,365,714
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 20 $27,473,602 56%
RATINGS** AA+, AA, Aa1, Aa, Aa2, Aa3
AA- 11 10,725,056 22
PORTFOLIO OF A+ A1 2 2,562,280 5
INVESTMENTS A, A- A, A2, A3 5 5,600,919 11
(EXCLUDING BBB+, BBB, Baa1, Baa, Baa2, Baa3
BBB- 1 876,180 2
TEMPORARY Non-rated Non-rated 1 2,187,200 4
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 40 $49,425,237 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provision: 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: 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.
23
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MICHIGAN TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Michigan Building
Authority, 6.250%,
10/01/20 10/01 at 102 AA- $ 1,001,790
1,190,000 Michigan Housing
Development Authority
(Parc Pointe Apartments),
6.500%, 10 /01/15 10/05 at 102 Aaa 1,218,203
1,000,000 Michigan Housing
Development Authority,
Single Family Mortgage,
6.800%, 12/01/16 6/05 at 102 AA+ 1,039,460
Michigan Housing
Development Authority,
Rental Housing:
500,000 6.400%, 4/01/05 10/02 at 102 A+ 524,305
500,000 6.650%, 4/01/23 10/02 at 102 A+ 509,200
Michigan Municipal Bond
Authority:
250,000 4.750%, 12/01/09 12/01 at 100 Aaa 229,690
555,000 6.600%, 10/01/18 10/02 at 102 Aa 579,747
950,000 Michigan Municipal Bond
Authority, State
Revolving Fund, 7.000%,
10/01/04 No Opt. Call Aa 1,083,751
1,000,000 Michigan Public Power
Agency (Belle River
Project), 5.250%, 1/01/18 1/03 at 102 AA- 899,080
Michigan State Hospital
Finance Authority
(The Detroit Medical
Center):
860,000 5.000%, 8/15/02 No Opt. Call A 837,597
460,000 8.125%, 8/15/08 (Pre-
refunded to 8/15/98) 8/98 at 102 Aaa 518,254
40,000 8.125%, 8/15/08 8/98 at 102 A 44,531
465,000 Michigan State Hospital
Finance Authority
(Harper Grace and Huron
Valley Hospitals),
10.000%, 10/01/16 10/95 at 102 A 478,262
1,000,000 Michigan State Hospital
Finance Authority
(Daughters of Charity
Health System),
7.000%, 11/01/21 11/01 at 102 Aa 1,065,530
500,000 Michigan State Hospital
Finance Authority (Mid-
Michigan Obligated
Group), 6.900%, 12/01/24 12/02 at 102 A 515,530
1,000,000 Michigan State Hospital
Finance Authority (Otsego
Memorial Hospital),
6.125%, 1/01/15 1/05 at 102 AA 994,880
1,145,000 Michigan State University,
6.250%, 8/15/15 8/02 at 101 AA- 1,167,099
1,055,000 Michigan Strategic Fund
(WMX Technologies),
Alternative Minimum Tax,
6.000%, 12/01/13 12/03 at 102 A1 1,033,098
400,000 Bay County General
Obligation, West Side
Regional Sewage Disposal
System,
6.400%, 5/01/02 11/95 at 103 A 413,200
250,000 Capital Region Airport
Authority, Alternative
Minimum Tax, 6.700%,
7/01/21 7/02 at 102 Aaa 260,880
1,000,000 Dearborn School District,
General Obligation,
6.000%, 5/01/14 5/01 at 102 AA 1,008,000
1,000,000 Detroit Convention
Facility (Cobo Hall),
5.250%, 9/30/12 9/03 at 102 A 887,820
1,000,000 Detroit Water Supply
System, 4.750%, 7/01/19 7/04 at 102 Aaa 831,220
1,000,000 Dexter Community Schools,
General Obligation,
5.000%, 5/01/17 5/03 at 102 AA 859,770
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 450,000 Grand Rapids Housing Corporation, Multi-Family
Mortgage, 7.375%, 7/15/41 1/04 at 104 AAA $ 473,805
500,000 Grand Traverse County Hospital Finance
Authority (Munson Healthcare), 6.250%, 7/01/22 7/02 at 102 Aaa 506,095
1,250,000 Lansing Sewage Disposal System, 5.850%, 5/01/14 5/04 at 102 Aaa 1,227,550
1,000,000 Monroe County Economic Development Corporation,
Pollution Control (The Detroit Edison
Company), Alternative Minimum Tax,
6.350%, 12/01/04 No Opt. Call Aaa 1,074,150
Muskegon Water Supply System:
450,000 4.500%, 5/01/12 5/01 at 101 Baa1 355,415
450,000 4.500%, 5/01/13 5/01 at 101 Baa1 351,005
1,000,000 Reeths-Puffer Schools, General Obligation,
5.750%, 5/01/15 5/05 at 101 Aaa 974,570
180,000 Saginaw-Midland Municipal Water Supply
Corporation, 6.875%, 9/01/16 9/04 at 102 A 188,091
200,000 St. Joseph Hospital Finance Authority (Mercy
Memorial Medical Center), 7.300%, 10/01/00 10/96 at 102 AAA 211,846
1,000,000 University of Michigan Hospital, 6.375%,
12/01/24 12/00 at 100 Aa 1,010,890
1,000,000 University of Michigan Student Fee,
5.500%, 4/01/12 4/03 at 102 AA+ 968,130
250,000 Warren Economic Development Corporation, GNMA
(Autumn Woods Project),
6.900%, 12/20/22 3/02 at 101 Aaa 255,070
1,000,000 Wayne County, Detroit Metropolitan Airport,
5.250%, 12/01/13 12/03 at 102 Aaa 926,620
1,000,000 Western Michigan University, 5.000%, 7/15/21 7/03 at 102 Aaa 869,230
1,000,000 Western Township Utilities Authority, Sewage
Disposal System, 6.500%, 1/01/10 1/02 at 100 AAA 1,046,520
1,000,000 Puerto Rico Aqueduct and Sewer Authority,
7.875%, 7/01/17 7/98 at 102 A 1,112,870
250,000 Puerto Rico Public Buildings Authority, 7/02 at 101
6.875%, 7/01/21 (Pre-refunded to 7/01/02) 1/2 Aaa 286,251
- ---------------------------------------------------------------------------------------------------
$30,100,000 Total Investments - (cost $29,214,343) - 98.4% 29,839,005
- ---------------------------------------------------------------------------------------------------
- -------------------
-------------------
Other Assets Less Liabilities - 1.6% 479,757
- ---------------------------------------------------------------------------------------------------
Net Assets - 100% $30,318,762
</TABLE>
- --------------------------------------------------------------------------------
25
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN MICHIGAN TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- -------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 16 $10,909,954 37%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 11,678,127 39
PORTFOLIO OF A+ A1 3 2,066,603 7
INVESTMENTS: A, A- A, A2, A3 8 4,477,901 15
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 706,420 2
- -------------------------------------------------------------------------------------
TOTAL 41 $29,839,005 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions: 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: Using the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
26
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(Unaudited)
NUVEEN NEW JERSEY TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 200,000 New Jersey Economic
Development Authority
(Liberty State Park
Project), 6.800%,
3/15/22 3/02 at 102 A1 $ 212,566
1,000,000 New Jersey Economic
Development Authority
(Yeshiva K'tana of
Passaic), 8.000%,
9/15/18 No Opt. Call N/R 1,137,470
2,965,000 New Jersey Economic
Development Authority
(Bridgewater Resources,
Inc.), Alternative
Minimum Tax, 8.375%,
11/01/04 No Opt. Call N/R 3,081,198
250,000 New Jersey Economic
Development Authority,
Solid Waste Disposal
Facility
(Garden State Paper
Company),
7.125%, 4/01/22 4/02 at 102 Aa1 268,038
1,355,000 New Jersey Economic
Development Authority,
Alternative Minimum Tax,
5.300%, 12/01/07 12/03 at 102 Aa1 1,354,892
650,000 New Jersey Economic
Development Authority,
5.875%, 7/01/11 7/04 at 102 Aaa 653,861
975,000 New Jersey Educational
Facilities Authority
(Trenton State College),
6.750%, 7/01/08 9/95 at 100 1/2 A+ 984,263
835,000 New Jersey Educational
Facilities Authority
(Princeton University),
5.875%, 7/01/11 7/04 at 100 Aaa 853,838
1,000,000 New Jersey General
Obligation, 5.800%,
2/15/07 No Opt. Call Aa1 1,060,460
1,115,000 New Jersey Health Care
Facilities Financing
Authority (Hackensack
Hospital),
8.750%, 7/01/09 No Opt. Call Aaa 1,332,102
400,000 New Jersey Health Care
Facilities Financing
Authority (Atlantic City
Medical Center), 6.800%,
7/01/05 7/02 at 102 A 424,088
850,000 New Jersey Health Care
Facilities Financing
Authority (Palisades
Medical Center),
7.500%, 7/01/06 7/02 at 102 Ba 863,141
New Jersey Housing
Finance Agency:
2,365,000 9.000%, 11/01/15 11/95 at 102 1/2 AA+ 2,432,994
1,750,000 9.000%, 11/01/18 11/95 at 104 A1 1,840,843
1,000,000 7.250%, 11/01/23 11/95 at 100 A1 1,003,670
1,250,000 10.000%, 4/01/30 10/95 at 102 A1 1,284,725
700,000 New Jersey Housing and
Mortgage Finance Agency,
6.950%, 11/01/13 5/02 at 102 A+ 733,025
New Jersey Turnpike
Authority:
355,000 10.375%, 1/01/03 No Opt. Call AAA 433,029
1,750,000 6.500%, 1/01/08 No Opt. Call A 1,919,085
1,415,000 Delaware River and Bay
Authority,
5.000%, 1/01/17 1/04 at 102 Aaa 1,258,062
1,000,000 Camden County Pollution
Control Financing
Authority, Solid Waste
Disposal and Resource
Recovery, Alternative
Minimum Tax,
7.125%, 12/01/01 No Opt. Call BBB+ 992,600
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN NEW JERSEY TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Camden County Pollution
Control Finance
Authority, Solid Waste
Disposal and Resource
Recovery System, 7.250%,
12/01/10 12/01 at 102 BBB+ $ 1,014,810
500,000 Essex County Improvement
Authority,
6.500%, 12/01/12 12/02 at 102 Baa1 513,125
500,000 Hillsborough Township
School District,
5.875%, 8/01/11 No Opt. Call AA 508,050
400,000 Hudson County Improvement
Authority
Multi-Family Housing
(Observer Park Project),
Alternative Minimum Tax,
6.900%, 6/01/22 6/04 at 100 AAA 415,472
1,605,000 Little Ferry Board of
Education, Certificates
of Participation, 6.300%,
1/15/08 No Opt. Call N/R 1,604,936
Monroe Township Board of
Education, General
Obligation:
725,000 5.200%, 8/01/11 No Opt. Call Aaa 699,806
825,000 5.200%, 8/01/14 No Opt. Call Aaa 767,555
600,000 Morris County General
Obligation,
5.000%, 7/15/09 7/05 at 100 Aaa 579,516
500,000 North Bergen Housing
Development Corporation,
FHA-Insured, 7.400%,
9/01/20 8/96 at 102 1/2 N/R 514,695
300,000 North Bergen Township
General Obligation,
6.500%, 8/15/12 8/02 at 102 Aaa 317,193
2,350,000 Ocean County Utilities
Authority,
5.000%, 1/01/14 1/97 at 100 Aaa 2,133,871
2,215,000 Passaic County General
Obligation,
5.125%, 9/01/12 No Opt. Call Aaa 2,102,478
775,000 Rutgers State University,
8.000%, 5/01/18 (Pre-
refunded to 5/01/98) 5/98 at 102 Aaa 865,985
Union County Utilities
Authority, Solid Waste
System, Alternative
Minimum Tax:
195,000 7.100%, 6/15/06 6/02 at 102 A- 201,447
1,100,000 7.200%, 6/15/14 6/02 at 102 A- 1,138,445
270,000 6.850%, 6/15/14 6/02 at 102 Aaa 276,815
100,000 University of Medicine and
Dentistry of New Jersey,
6.500%, 12/01/18 12/01 at 102 AA 105,305
300,000 Wanaque Borough Sewerage
Authority,
7.000%, 12/01/21 12/02 at 102 Baa1 309,699
1,175,000 Virgin Islands Housing
Finance Authority,
Alternative Minimum Tax,
6.450%, 3/01/16 3/05 at 102 AAA 1,187,325
1,000,000 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/01/17 7/98 at 102 A 1,112,870
60,000 Puerto Rico Highway
Transportation Authority,
6.625%, 7/01/18 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 A 67,897
Puerto Rico Electric Power
Authority:
790,000 7.000%, 7/01/07 No Opt. Call A- 869,980
1,875,000 7.000%, 7/01/21 7/01 at 102 A- 2,042,494
</TABLE>
28
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,500,000 Puerto Rico Industrial Medical
Educational and Environmental
Authority (American Home
Products), 5.100%, 12/01/18 12/03 at 103 A2 $ 1,340,144
- -------------------------------------------------------------------------------------
$43,840,000 Total Investments - (Cost
$44,087,155) - 92.7% 44,813,863
- -------------------------------------------------------------------------------------
- -------------------
-----------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 5.4%
$ 400,000 New Jersey Economic Development
Authority,
Dock Facility (Bayonne/IMTT),
Variable Rate Demand Bonds,
3.800%, 12/01/27+ VMIG-1 400,000
600,000 New Jersey Economic Development
Authority
(Bayonne/IMTT Project) Variable
Rate Demand Bonds, 3.750%,
12/01/27+ VMIG-1 600,000
1,600,000 Port Authority of New York and New
Jersey, Versatile Structure
Obligations, Variable Rate Demand
Bonds, 3.550%, 5/01/19+ A-1+ 1,600,000
- -------------------------------------------------------------------------------------
$ 2,600,000 Total Temporary Investments - 5.4% 2,600,000
- -------------------------------------------------------------------------------------
- -------------------
-----------------
Other Assets Less Liabilities -
1.9% 911,996
- -------------------------------------------------------------------------------------
Net Assets - 100% $48,325,859
- -------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 15 $13,876,908 31%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 6 5,729,739 13
PORTFOLIO OF A+ A1 6 6,059,092 14
INVESTMENTS A, A- A, A2, A3 9 9,116,450 20
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 2,830,234 6
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 863,141 2
INVESTMENTS): Non-rated Non-rated 4 6,338,299 14
- --------------------------------------------------------------------------------------
TOTAL 45 $44,813,863 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions: 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: 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.
29
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PENNSYLVANIA TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 750,000 Pennsylvania Certificates of
Participation,
5.250%, 7/01/10 7/03 at 102 Aaa $ 712,740
2,500,000 Pennsylvania Economic
Development Financing
Authority (Sun Co--R&M
Project), Alternative
Minimum Tax, 7.600%,
12/01/24 12/04 at 102 Baa1 2,705,275
Pennsylvania General
Obligation:
2,000,000 6.400%, 1/01/99 No Opt. Call AA- 2,124,200
1,290,000 5.000%, 5/01/03 No Opt. Call AA- 1,301,442
2,000,000 5.300%, 5/01/05 No Opt. Call AA 2,034,860
750,000 Pennsylvania Higher
Educational Facilities
Authority (Thomas Jefferson
University),
6.00%, 7/01/19 7/99 at 102 Aa 734,115
230,000 Pennsylvania Housing Finance
Agency, Alternative Minimum
Tax, 8.150%, 4/01/24 4/00 at 102 Aa 236,438
600,000 Pennsylvania Housing Finance
Agency, Single Family
Mortgage, 7.150%, 4/01/15 10/01 at 102 Aa 641,466
1,795,000 Pennsylvania Industrial
Development Authority,
7.000%, 1/01/06 No Opt. Call Aaa 2,056,908
1,390,000 Pennsylvania
Intergovernmental
Cooperative Authority (City
of Philadelphia Funding
Program), 7.000%, 6/15/05 No Opt. Call Aaa 1,535,158
Pennsylvania Turnpike
Commission:
2,000,000 7.550%, 12/01/08 (Pre-
refunded to 12/01/98) 12/98 at 102 Aaa 2,244,360
2,300,000 5.500%, 12/01/17 12/02 at 102 Aaa 2,159,309
1,000,000 Allegheny County (Greater
Pittsburgh International
Airport), Alternative
Minimum Tax, 7.000%,
1/01/18 1/00 at 102 Aaa 1,039,400
1,300,000 Allegheny County Hospital
Development Authority
(Allegheny Valley
Hospital),
7.000%, 8/01/15 No Opt. Call A 1,461,668
1,500,000 Allegheny County Hospital
Development Authority
(Rehabilitation Institute
of Pittsburgh), 7.000%,
6/01/22 6/02 at 102 BBB 1,492,605
2,000,000 Allegheny County Residential
Finance Authority, Single
Family Mortgage, (GNMA),
Alternative Minimum Tax,
0.000%, 5/01/27 No Opt. Call Aaa 207,000
2,000,000 Armstrong County Hospital
Authority (Canterbury Place
Project), 6.500%, 12/01/21 12/01 at 100 Aaa 2,038,660
2,500,000 Bethlehem Authority Water
System,
6.250%, 11/15/21 (Pre-
refunded to 11/15/01) 11/01 at 100 Aaa 2,724,250
1,000,000 Bucks County Community
College Authority, 6.250%,
6/15/14 6/02 at 100 Aa 1,011,020
2,850,000 Deer Lakes School District,
General Obligation, 6.350%,
1/15/14 1/04 at 100 Aaa 2,938,122
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Delaware County General Obligation:
$ 500,000 5.500%, 10/01/11 (WI) 10/05 at 100 Aa $ 492,595
650,000 5.500%, 10/01/15 (WI) 10/05 at 100 Aa 620,984
800,000 Greater Lebanon Refuse Authority, Solid Waste,
7.000%, 11/15/04 11/02 at 100 A- 822,904
3,500,000 Indiana County Industrial Development
Authority, Pollution Control (New York State
Electric and Gas Corporation), 6.00%, 6/01/06 No Opt. Call Aaa 3,732,365
Luzerne County Industrial Development Authority
(Pennsylvania Gas and Water Company),
Alternative Minimum Tax:
1,500,000 7.000%, 12/01/17 12/04 at 102 Aaa 1,621,890
950,000 7.125%, 12/01/22 12/02 at 102 Baa3 966,036
1,800,000 Northampton County Higher Education Authority
(Lehigh University), 6.900%, 10/15/06 10/01 at 102 Aaa 1,986,516
1,000,000 Northumberland County Industrial Development
Authority (Roaring Creek Water Company),
Alternative Minimum Tax, 6.375%, 10/15/23 10/03 at 102 N/R 919,960
2,630,000 Penn Hills General Obligation, 0.000%, 12/01/16 No Opt. Call Aaa 727,984
1,000,000 Philadelphia Airport System, Alternative
Minimum Tax, 6.100%, 6/15/25 6/05 at 102 Aaa 981,050
2,000,000 Philadelphia Gas Works, 6.375%, 7/01/14 7/03 at 102 Aaa 2,059,820
Pittsburgh Urban Redevelopment Authority,
Alternative Minimum Tax:
1,100,000 6.625%, 4/01/22 4/04 at 102 A 1,112,859
750,000 6.800%, 10/01/25 4/03 at 102 A1 764,790
500,000 St. Mary's Hospital Authority (Franciscan
Health System/St. Mary of Langhorne), 6.500%,
7/01/12 7/02 at 102 Aaa 517,735
230,000 Sayre Health Care Facilities Authority (Guthrie
Healthcare System), 7.100%, 3/01/17 3/01 at 102 Aaa 252,266
1,000,000 Somerset County General Authority, Commonwealth
Lease, 6.250%, 10/15/11 (Pre-refunded to
10/15/01) 10/01 at 100 Aaa 1,088,670
Southeastern Pennsylvania Transportation
Authority:
1,500,000 6.500%, 3/01/04 No Opt. Call Aaa 1,656,480
1,000,000 6.500%, 3/01/05 No Opt. Call Aaa 1,106,630
2,250,000 University of Pittsburgh, 6.125%, 6/01/21 6/02 at 102 Aaa 2,256,593
350,000 Washington County Hospital Authority
(Monongahela Valley Hospital),
6.750%, 12/01/08 4/02 at 102 A 355,765
935,000 West View Municipal Authority, 9.500%, 11/15/14 No Opt. Call Aaa 1,301,829
600,000 Wilkes-Barre General Municipal Authority
(College Misericordia), Alternative Minimum
Tax, 7.750%, 12/01/12 12/00 at 100 N/R 650,621
- -------------------------------------------------------------------------------------------------
$58,300,000 Total Investments - (cost $55,578,930) - 99.0% 57,395,338
</TABLE>
- ----------- -----------
31
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN PENNSYLVANIA TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 1.9%
$ 500,000 Allegheny County Hospital
Development Authority
(Presbyterian-University
Health System), Variable
Rate Demand Bonds, 3.800%,
3/01/20+ VMIG-1 $ 500,000
600,000 Geisinger Authority (Montaur
Co.), Variable Rate Demand
Bonds, 4.100%, 7/01/22+ A-1+ 600,000
- -------------------------------------------------------------------------------
$ 1,100,000 Total Temporary Investments -
1.9% 1,100,000
- -----------
--------------------------------------------------------------------
Other Assets Less Liabilities
- (0.9)% (540,868)
- -------------------------------------------------------------------------------
Net Assets - 100% $57,954,470
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER MARKET MARKET
STANDARD & POOR'S MOODY'S OF ISSUES VALUE PERCENT
- --------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 23 $36,945,735 64%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 9,197,120 16
PORTFOLIO OF A+ A1 1 764,790 1
INVESTMENTS A, A- A, A2, A3 4 3,753,196 7
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 5,163,916 9
TEMPORARY Non-rated Non-rated 2 1,570,581 3
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 42 $57,395,338 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions: 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: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
32
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
PORTFOLIO OF INVESTMENTS
JULY 31, 1995
(Unaudited)
NUVEEN VIRGINIA TAX-FREE VALUE FUND
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 2,260,000 Virginia Beach Development
Authority (Sentara Bayside
Hospital), 6.300%, 11/01/21 11/01 at 102 Aa $ 2,278,487
800,000 Virginia College Building
Authority
(Randolph-Macon College),
6.625%, 5/01/13 5/02 at 102 A- 829,144
Virginia College Building
Authority
(The Washington and Lee
University):
1,250,000 5.750%, 1/01/14 1/04 at 102 Aa 1,224,913
1,000,000 5.800%, 1/01/24 1/04 at 102 Aa 956,430
Virginia Housing Development
Authority:
800,000 6.800%, 11/01/09 5/02 at 102 Aa 859,120
650,000 6.850%, 7/01/17 1/00 at 102 Aa 668,584
4,000,000 7.150%, 1/01/33 1/02 at 102 AA+ 4,195,240
1,090,000 Virginia Public Building
Authority, 6.500%, 8/01/11 8/01 at 102 Aa 1,153,994
800,000 Virginia Resource Authority,
Water System, 6.450%,
4/01/13 4/02 at 102 AA 828,336
1,000,000 Virginia Resources Authority,
Sewer System, Alternative
Minimum Tax, 6.000%,
10/01/25 10/05 at 102 AA 963,520
4,425,000 Virginia Transportation
Board, 6.000%, 5/15/19 5/98 at 102 Aa 4,374,776
1,000,000 Abingdon General Obligation,
6.250%, 8/01/12 8/02 at 102 A 1,024,170
1,410,000 Albemarle County Industrial
Development Authority
(Martha Jefferson Hospital),
5.800%, 10/01/09 10/03 at 102 A 1,372,720
2,500,000 Chesapeake Bay Bridge and
Tunnel Commission, 6.375%,
7/01/22 7/01 at 102 Aaa 2,558,225
1,000,000 Covington-Alleghany County
Industrial Development
Authority (Alleghany
Regional Hospital), 6.625%,
4/01/12 4/02 at 102 A- 1,121,830
1,700,000 Cumberland County
Certificates of
Participation, 5.480%,
7/15/97 No Opt. Call N/R 1,699,881
2,500,000 Fairfax County Economic
Development Authority (Ogden
Martin Systems Project),
Alternative Minimum Tax,
7.750%, 2/01/11 2/99 at 103 A1 2,736,375
1,460,000 Fairfax County Industrial
Development Authority (Inova
Health System), 5.000%,
8/15/13 No Opt. Call Aaa 1,318,263
500,000 Hampton Industrial
Development Authority
(Sentara Hampton General
Hospital), 6.500%, 11/01/12 11/04 at 102 A 509,925
2,500,000 Henrico County Water and
Sewer System,
6.250%, 5/01/13 5/02 at 100 A1 2,531,200
1,000,000 Loudoun County Sanitation
Authority, Water and Sewer
System, 6.250%, 1/01/16 1/02 at 102 Aaa 1,022,050
2,000,000 Loudoun County Industrial
Development Authority (The
George Washington
University), 6.250%, 5/15/22 5/02 at 102 A1 2,040,380
</TABLE>
33
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN VIRGINIA TAX-FREE VALUE FUND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,500,000 Lynchburg Industrial
Development Authority
(Randolph-Macon Women's
College), 5.875%, 9/01/13 9/03 at 102 A $ 1,452,075
1,250,000 Nelson County Service
Authority, Water and
Sewer System, 5.500%,
7/01/18 7/03 at 102 Aaa 1,174,113
1,015,000 Newport News General
Obligation,
5.250%, 6/01/10 6/03 at 102 Aa 974,502
1,250,000 Norfolk General
Obligation, 7.000%,
10/01/09 (Pre-refunded to
10/01/98) 10/98 at 102 Aaa 1,376,550
1,580,000 Peninsula Ports Authority
of Virginia (Riverside
Health System), 6.625%,
7/01/18 7/02 at 102 Aa 1,619,911
2,500,000 Prince William County Park
Authority,
6.875%, 10/15/16 10/04 at 102 A- 2,630,400
1,000,000 Prince William County
Service Authority, Water
and Sewer System, 6.000%,
7/01/29 7/01 at 100 Aaa 989,920
2,850,000 Richmond General
Obligation, 6.250%,
1/15/21 1/01 at 102 AA 2,866,730
1,600,000 Richmond Redevelopment and
Housing Authority, Multi-
Family Mortgage
(Jefferson Village
Associates), 6.500%,
4/01/27 4/03 at 103 AAA 1,597,680
1,000,000 Roanoke Industrial
Development Authority
(Roanoke Memorial
Hospitals), 6.500%,
7/01/25 (Pre-refunded to
7/01/00) 7/00 at 100 Aaa 1,085,910
Rockingham County
Industrial Development
Authority (Bridgewater
College):
400,000 5.600%, 10/01/06 10/03 at 102 Baa1 411,524
400,000 5.700%, 10/01/07 10/03 at 102 Baa1 400,572
2,750,000 Southeastern Public
Service Authority
(Regional Solid Waste
System), Alternative
Minimum Tax, 6.000%,
7/01/13 7/03 at 102 A- 2,622,262
4,000,000 Upper Occoquan Sewer
Authority,
5.000%, 7/01/21 1/04 at 102 Aaa 3,472,439
1,000,000 Washington D.C. Airports
Authority, Alternative
Minimum Tax, 5.750%,
10/01/20 10/04 at 102 Aaa 935,700
800,000 Puerto Rico Highway
Transportation Authority,
6.625%, 7/01/18 7/02 at 101 1/2 A 832,399
- -------------------------------------------------------------------------------
$60,540,000 Total Investments - (cost
$59,241,094) - 98.4% 60,710,250
- -------------------------------------------------------------------------------
- -------------------
-----------
Other Assets Less
Liabilities - 1.6% 981,220
- -------------------------------------------------------------------------------
Net Assets - 100% $61,691,470
</TABLE>
- --------------------------------------------------------------------------------
34
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 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 10 $15,530,850 26%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 22,964,543 38
PORTFOLIO OF A+ A1 3 7,307,955 12
INVESTMENTS: A, A- A, A2, A3 9 12,394,925 20
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 812,096 1
Non-rated Non-rated 1 1,699,881 3
- -------------------------------------------------------------------------------------
TOTAL 38 $60,710,250 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions: 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: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
See accompanying notes to financial statements.
35
<PAGE>
STATEMENT OF NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
AZ FL MD MI
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $19,008,906 $53,644,951 $49,425,237 $29,839,005
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 300,000 400,000 300,000 --
Cash 70,458 277,571 356,806 140,701
Receivables:
Interest 203,909 935,493 415,435 427,722
Shares sold -- 4,774 5,732 19,280
Investments sold -- -- -- --
Deferred organization costs (note 1) 6,403 10,834 11,482 10,669
Other assets 9,430 9,268 20,245 8,690
----------- ----------- ----------- -----------
Total assets 19,599,106 55,282,891 50,534,937 30,446,067
----------- ----------- ----------- -----------
LIABILITIES
Payables:
Investments purchased -- -- -- --
Shares reacquired -- 29,500 -- --
Accrued expenses:
Management fees (note 7) 9,118 25,735 23,488 14,127
Other 23,389 38,039 17,076 29,368
Dividends payable 45,667 124,346 128,659 83,810
----------- ----------- ----------- -----------
Total liabilities 78,174 217,620 169,223 127,305
----------- ----------- ----------- -----------
Net assets (note 8) $19,520,932 $55,065,271 $50,365,714 $30,318,762
----------- ----------- ----------- -----------
Class A Shares (note 1)
Net Assets $ 1,860,981 $ 2,739,414 $ 4,195,765 $ 2,148,710
----------- ----------- ----------- -----------
Shares outstanding 179,955 271,058 415,514 208,063
----------- ----------- ----------- -----------
Net asset value and redemption price per share $ 10.34 $ 10.11 $ 10.10 $ 10.33
----------- ----------- ----------- -----------
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price) $ 10.83 $ 10.59 $ 10.58 $ 10.82
----------- ----------- ----------- -----------
Class C Shares (note 1)
Net Assets $ 122,563 $ 140,253 $ 1,198,677 $ 130,967
----------- ----------- ----------- -----------
Shares outstanding 11,952 13,859 118,816 12,711
----------- ----------- ----------- -----------
Net asset value, offering and redemption price per share $ 10.25 $ 10.12 $ 10.09 $ 10.30
----------- ----------- ----------- -----------
Class R Shares (note 1)
Net Assets $17,537,388 $52,185,604 $44,971,272 $28,039,085
----------- ----------- ----------- -----------
Shares outstanding 1,707,814 5,159,085 4,449,687 2,714,378
----------- ----------- ----------- -----------
Net asset value and redemption price per share $ 10.27 $ 10.12 $ 10.11 $ 10.33
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
NJ PA VA
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at
market value (note 1) $44,813,863 $57,395,338 $60,710,250
Temporary investments in short-term
municipal securities,
at amortized cost (note 1) 2,600,000 1,100,000 --
Cash 383,987 105,806 356,887
Receivables:
Interest 638,651 685,201 788,715
Shares sold 56,783 6,848 17,245
Investments sold -- -- --
Deferred organization costs (note 1) 10,866 11,710 9,816
Other assets 10,290 8,368 14,366
----------- ----------- -----------
Total assets 48,514,440 59,313,271 61,897,279
----------- ----------- -----------
LIABILITIES
Payables:
Investments purchased -- 1,133,530 --
Shares reacquired -- 8,766 --
Accrued expenses:
Management fees (note 7) 22,447 27,076 28,672
Other 13,893 31,211 27,472
Dividends payable 152,241 158,218 149,665
----------- ----------- -----------
Total liabilities 188,581 1,358,801 205,809
----------- ----------- -----------
Net assets (note 8) $48,325,859 $57,954,470 $61,691,470
----------- ----------- -----------
Class A Shares (note 1)
Net Assets $ 6,407,448 $ 3,362,839 $ 3,896,940
----------- ----------- -----------
Shares outstanding 635,951 329,253 382,493
----------- ----------- -----------
Net asset value and redemption price
per share $ 10.08 $ 10.21 $ 10.19
----------- ----------- -----------
Offering price per share (net asset
value per share plus maximum sales
charge of 4.50% of offering price) $ 10.55 $ 10.69 $ 10.67
----------- ----------- -----------
Class C Shares (note 1)
Net Assets $ 632,765 $ 613,579 $ 510,424
----------- ----------- -----------
Shares outstanding 62,927 60,766 50,246
----------- ----------- -----------
Net asset value, offering and
redemption price per share $ 10.06 $ 10.10 $ 10.16
----------- ----------- -----------
Class R Shares (note 1)
Net Assets $41,285,646 $53,978,052 $57,284,106
----------- ----------- -----------
Shares outstanding 4,093,868 5,298,875 5,625,290
----------- ----------- -----------
Net asset value and redemption price
per share $ 10.08 $ 10.19 $ 10.18
----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
STATEMENT OF OPERATIONS
Six months ended July 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
AZ FL MD MI
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 563,132 $1,642,056 $1,430,710 $ 880,234
Taxable market discount -- -- -- 823
---------- ---------- ---------- ----------
Total income 563,132 1,642,056 1,430,710 881,057
---------- ---------- ---------- ----------
Expenses (note 2):
Management fees (note 7) 51,640 152,493 132,255 80,192
12b-1 distribution and service fees (note 1) 2,122 3,246 8,366 2,491
Shareholders' servicing agent fees and expenses 10,531 20,281 32,152 20,114
Custodian's fees and expenses 21,903 26,404 33,586 23,283
Trustees' fees and expenses (note 7) 305 758 684 635
Professional fees 7,780 9,741 7,792 7,231
Shareholders' reports--printing and mailing expenses 18,227 33,840 28,910 12,526
Federal and state registration fees 2,116 1,880 2,591 2,536
Amortization of deferred organization costs (note 1) 3,380 3,774 2,423 3,340
Other expenses 699 1,689 1,783 1,094
---------- ---------- ---------- ----------
Total expenses before expense reimbursement 118,703 254,106 250,542 153,442
Expense reimbursement from investment advisor (note 7) (46,164) (42,914) (61,828) (41,599)
---------- ---------- ---------- ----------
Net expenses 72,539 211,192 188,714 111,843
---------- ---------- ---------- ----------
Net investment income 490,593 1,430,864 1,241,996 769,214
---------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (note 5) (9,662) (144,285) 86,923 237,029
Net change in unrealized appreciation or depreciation of
investments 774,367 2,227,373 2,310,622 1,035,294
---------- ---------- ---------- ----------
Net gain from investments 764,705 2,083,088 2,397,545 1,272,323
---------- ---------- ---------- ----------
Net increase in net assets from operations $1,255,298 $3,513,952 $3,639,541 $2,041,537
---------- ---------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
NJ PA VA
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $1,446,778 $1,686,351 $1,801,723
Taxable market discount -- 4,380 24,280
---------- ---------- ---------- ---
Total income 1,446,778 1,690,731 1,826,003
---------- ---------- ----------
Expenses (note 2):
Management fees (note 7) 125,295 153,988 164,476
12b-1 distribution and service fees (note 1) 8,148 5,934 6,201
Shareholders' servicing agent fees and expenses 18,991 35,708 39,408
Custodian's fees and expenses 16,202 19,169 20,886
Trustees' fees and expenses (note 7) 964 710 988
Professional fees 7,663 11,855 4,517
Shareholders' reports--printing and mailing expenses 38,303 32,645 42,089
Federal and state registration fees 1,704 4,755 1,969
Amortization of deferred organization costs (note 1) 3,419 3,665 3,383
Other expenses 1,772 1,369 1,646
---------- ---------- ----------
Total expenses before expense reimbursement 222,461 269,798 285,563
Expense reimbursement from investment advisor (note 7) (43,470) (53,880) (55,070)
---------- ---------- ----------
Net expenses 178,991 215,918 230,490
---------- ---------- ----------
Net investment income 1,267,787 1,474,813 1,595,513
---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions (note 5) (7,246) (318,439) 252,541
Net change in unrealized appreciation or depreciation of
investments 1,523,642 2,846,420 2,196,775
---------- ---------- ----------
Net gain from investments 1,516,396 2,527,981 2,449,316
---------- ---------- ----------
Net increase in net assets from operations $2,784,183 $4,002,794 $4,044,829
---------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
AZ FL
- --------------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
7/31/95 1/31/95 7/31/95 1/31/95
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 490,593 $ 874,402 $ 1,430,864 $ 2,567,258
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (9,662) (127,639) (144,285) (88,470)
Net change in unrealized
appreciation or
depreciation of
investments 774,367 (1,415,009) 2,227,373 (4,454,622)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations 1,255,298 (668,246) 3,513,952 (1,975,834)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (36,066) (11,579) (50,650) (12,861)
Class C (1,367) (786) (1,997) (807)
Class R (464,744) (863,461) (1,369,007) (2,538,376)
From accumulated net
realized gains from
investment transactions:
Class A -- -- -- (11)
Class C -- -- -- --
Class R -- -- -- (13,228)
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (502,177) (875,826) (1,421,654) (2,565,283)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sales
of shares:
Class A 871,405 1,124,442 1,329,958 1,665,651
Class C 80,000 51,694 57,504 73,100
Class R 773,138 4,004,198 3,293,595 13,751,923
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 13,034 2,269 16,910 4,072
Class C 1,265 509 1,582 230
Class R 258,369 464,469 761,163 1,376,114
----------- ----------- ----------- -----------
1,997,211 5,647,581 5,460,712 16,871,090
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (197,887) (30,002) (54,480) (314,814)
Class C (3,168) (9,346) -- --
Class R (749,758) (2,482,522) (6,441,242) (6,261,459)
----------- ----------- ----------- -----------
(950,813) (2,521,870) (6,495,722) (6,576,273)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets derived
from Fund share
transactions 1,046,398 3,125,711 (1,035,010) 10,294,817
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets 1,799,519 1,581,639 1,057,288 5,753,700
Net assets at the
beginning of period 17,721,413 16,139,774 54,007,983 48,254,283
----------- ----------- ----------- -----------
Net assets at the end of
period $19,520,932 $17,721,413 $55,065,271 $54,007,983
----------- ----------- ----------- -----------
Balance of undistributed
net investment income at
end of period $ 4,952 $ 16,536 $ 45,804 $ 36,594
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
MD MI
- --------------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
7/31/95 1/31/95 7/31/95 1/31/95
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,241,996 $ 2,439,904 $ 769,214 $ 1,402,059
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable 86,923 (720,598) 237,029 (138,495)
Net change in unrealized
appreciation or
depreciation of
investments 2,310,622 (4,017,204) 1,035,294 (2,255,350)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations 3,639,541 (2,297,898) 2,041,537 (991,786)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (70,153) (14,257) (38,856) (7,070)
Class C (20,322) (9,717) (2,190) (582)
Class R (1,171,794) (2,417,246) (727,845) (1,399,025)
From accumulated net
realized gains from
investment transactions:
Class A -- (5) -- (1)
Class C -- -- -- --
Class R -- (10,234) -- (7,967)
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (1,262,269) (2,451,459) (768,891) (1,414,645)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sale of
shares:
Class A 2,517,732 1,562,186 1,249,513 881,646
Class C 331,876 818,595 50,663 73,345
Class R 1,844,466 9,116,010 1,155,940 6,369,706
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 35,150 5,306 18,408 2,560
Class C 17,192 5,892 1,963 338
Class R 737,193 1,385,256 473,495 872,246
----------- ----------- ----------- -----------
5,483,609 12,893,245 2,949,982 8,199,841
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (67,991) (2,267) (66,618) (9,411)
Class C (54,554) (226) -- --
Class R (2,578,398) (10,757,200) (1,452,893) (3,253,109)
----------- ----------- ----------- -----------
(2,700,943) (10,759,693) (1,519,511) (3,262,520)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets derived
from Fund share
transactions 2,782,666 2,133,552 1,430,471 4,937,321
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets 5,159,938 (2,615,805) 2,703,117 2,530,890
Net assets at the
beginning of period 45,205,776 47,821,581 27,615,645 25,084,755
----------- ----------- ----------- -----------
Net assets at the end of
period $50,365,714 $45,205,776 $30,318,762 $27,615,645
----------- ----------- ----------- -----------
Balance of undistributed
net investment income at
end of period $ 7,974 $ 28,247 $ 17,503 $ 17,180
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
NJ PA
- --------------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
7/31/95 1/31/95 7/31/95 1/31/95
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,267,787 $ 2,037,788 $ 1,474,813 $ 2,714,124
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (7,246) (452,878) (318,439) (835,288)
Net change in unrealized
appreciation or
depreciation of
investments 1,523,642 (2,665,300) 2,846,420 (4,232,526)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations 2,784,183 (1,080,390) 4,002,794 (2,353,690)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (112,648) (35,663) (63,185) (17,517)
Class C (12,064) (5,043) (11,896) (5,177)
Class R (1,125,819) (1,973,703) (1,422,145) (2,690,297)
From accumulated net
realized gains from
investment transactions:
Class A -- (773) -- --
Class C -- -- -- --
Class R -- (341,737) -- --
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (1,250,531) (2,356,919) (1,497,226) (2,712,991)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sale of
shares
Class A 3,685,042 2,826,031 1,909,061 1,465,445
Class C 170,942 458,588 160,207 480,657
Class R 1,803,058 10,783,764 2,716,922 12,882,787
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 52,397 18,788 43,157 9,834
Class C 5,503 2,567 11,112 3,155
Class R 761,817 1,592,197 903,507 1,624,542
----------- ----------- ----------- -----------
6,478,759 15,681,935 5,743,966 16,466,420
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (184,852) (122,722) (158,687) (27,047)
Class C (23,400) (1,205) (74,849) --
Class R (2,265,342) (5,795,917) (3,537,345) (6,616,545)
----------- ----------- ----------- -----------
(2,473,594) (5,919,844) (3,770,881) (6,643,592)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets derived
from Fund share
transactions 4,005,165 9,762,091 1,973,085 9,822,828
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets 5,538,817 6,324,782 4,478,653 4,756,147
Net assets at the
beginning of period 42,787,042 36,462,260 53,475,817 48,719,670
----------- ----------- ----------- -----------
Net assets at the end of
period $48,325,859 $42,787,042 $57,954,470 $53,475,817
----------- ----------- ----------- -----------
Balance of undistributed
net investment income at
end of period $ 52,045 $ 34,789 $ 9,421 $ 31,834
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
VA
- ------------------------------------------------------------------------------
6 months
ended Year ended
7/31/95 1/31/95
- ------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 1,595,513 $ 2,965,312
Net realized gain (loss) from investment
transactions, net of taxes, if applicable 252,541 (110,113)
Net change in unrealized appreciation or
depreciation of investments 2,196,775 (5,022,831)
----------- -----------
Net increase (decrease) in net assets from
operations 4,044,829 (2,167,632)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (75,878) (20,902)
Class C (10,147) (4,516)
Class R (1,496,588) (2,960,225)
From accumulated net realized gains from
investment transactions:
Class A -- --
Class C -- --
Class R -- --
----------- -----------
Decrease in net assets from distributions to
shareholders (1,582,613) (2,985,643)
----------- -----------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares
Class A 1,733,897 2,169,078
Class C 126,739 359,962
Class R 1,934,398 9,464,055
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 36,839 6,496
Class C 8,124 2,776
Class R 876,331 1,626,894
----------- -----------
4,716,328 13,629,261
----------- -----------
Cost of shares redeemed:
Class A (191,687) (10,247)
Class C (19,552) --
Class R (2,658,711) (6,855,537)
----------- -----------
(2,869,950) (6,865,784)
----------- -----------
Net increase (decrease) in net assets derived
from Fund share transactions 1,846,378 6,763,477
----------- -----------
Net increase (decrease) in net assets 4,308,594 1,610,202
Net assets at the beginning of period 57,382,876 55,772,674
----------- -----------
Net assets at the end of period $61,691,470 $57,382,876
----------- -----------
Balance of undistributed net investment income at
end of period $ 34,711 $ 21,811
----------- -----------
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The Nuveen Multistate Tax-Free Trust (the "Trust") is an
open-end diversified management series investment company
registered under the Investment Company Act of 1940. The
Trust comprises seven single-state tax-free mutual funds (the
Nuveen Tax-Free Value Funds--the "Funds"). Each Fund
constitutes a separate series of the Trust and is itself an
open-end diversified management investment company, commonly
referred to as a mutual fund. The Trust was organized as a
Massachusetts Business Trust on July 26, 1991.
The Trust currently has seven authorized state tax-free
Funds: the Nuveen Arizona Tax-Free Value Fund, the Nuveen
Florida Tax-Free Value Fund, the Nuveen Maryland Tax-Free
Value Fund, the Nuveen Michigan Tax-Free Value Fund, the
Nuveen New Jersey Tax-Free Value Fund, the Nuveen
Pennsylvania Tax-Free Value Fund and the Nuveen Virginia Tax-
Free Value Fund. Additional state Funds may be established in
the future. Sale of Fund shares first commenced on February
28, 1992. Each Fund invests primarily in municipal
obligations issued within its respective 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 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 Trustees. 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 Trust has instructed the custodian to
segregate assets in a separate account with a current value
at least equal
44
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
to the amount of its purchase commitments. At July 31, 1995,
the Nuveen Pennsylvania Tax-Free Value Fund had purchase
commitments of $1,133,530. There were no such purchase
commitments in any of the other Funds.
Interest Income Interest income is determined on the basis of interest
accrued, adjusted for amortization of premiums and accretion
of discounts 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 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 net realized
gains from investment transactions, if applicable.
Income Taxes Each Fund is a separate taxpayer for federal income tax
purposes and intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies by distributing all of its net investment income,
in addition to any significant amounts of net realized gains
from investments, to shareholders. The Funds currently
consider significant net realized gains as amounts in excess
of $.001 per share. Furthermore, each Fund intends to satisfy
conditions which will enable interest from municipal
securities, which is exempt from regular federal and
designated state income taxes, to retain such tax exempt
status when distributed to the shareholders of the respective
Funds. The Nuveen Florida Tax-Free Value Fund and the Nuveen
Michigan Tax-Free Value Fund also intend to satisfy
conditions so that their shares will also be exempt from
their respective state's intangible personal property tax.
Deferred Organization Costs
Costs incurred by the Trust in connection with its
organization and initial registration of shares were deferred
and are being amortized over a 60-month period beginning
February 28, 1992. If any of the initial shares of each Fund
are redeemed during this period, the proceeds of the
redemption will be reduced by the pro-rata share of the
unamortized organization costs as of the date of redemption.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
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 are generally
available only for reinvestment of dividends by current "R"
shareholders and for already established Nuveen Unit
Investment Trust reinvestment accounts.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards (FASB) No.
119 Disclosure about Derivative Financial Instruments and
Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain
derivative financial instruments including futures, forward,
swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may
do so in the future, they did not make any such investments
during the six months ended July 31, 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.
2. EXPENSE ALLOCATION
Expenses of the Funds that are not directly attributable to
any class of shares are prorated among the classes based on
the relative net assets of each class. Expenses directly
attributable to a class of shares are recorded to the
specific class. Effective August 1, 1995, the Funds adopted a
multiple class plan pursuant to Rule 18f-3 under the
Investment Company Act of 1940 and now designate class
specific expenses to include Rule 12b-1 distribution and
service fees, and other expenses incurred for services
received by a class that differ in either amount or kind. A
breakdown of the class specific expenses for the six months
ended July 31, 1995 are as follows:
46
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
<TABLE>
<CAPTION>
AZ FL MD MI
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
12b-1 distribution and service fees:
Class A $ 1,783 $ 2,662 $ 3,591 $ 1,976
Class C 339 584 4,775 515
Shareholders' servicing agent fees and ex-
penses:
Class A 1,219 2,388 2,357 1,704
Class C 103 57 401 90
Class R 9,209 17,836 29,394 18,320
Shareholders' reports-printing and mailing
expenses:
Class A 574 1,437 1,691 757
Class C 88 57 324 51
Class R 17,565 32,346 26,895 11,718
Federal and state registration fees:
Class A 237 786 1,101 199
Class C 9 379 734 13
Class R 1,870 715 756 2,324
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
12b-1 distribution and service fees:
Class A $ 5,488 $ 3,171 $ 3,855
Class C 2,660 2,763 2,346
Shareholders' servicing agent fees and expenses:
Class A 3,208 2,563 2,427
Class C 185 360 265
Class R 15,598 32,785 36,716
Shareholders' reports-printing and mailing expenses:
Class A 1,760 1,336 1,588
Class C 205 76 220
Class R 36,338 31,233 40,281
Federal and state registration fees:
Class A 886 1,858 744
Class C 69 1,378 40
Class R 749 1,519 1,185
</TABLE>
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. FUND SHARES
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
AZ FL
- ------------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
7/31/95 1/31/95 7/31/95 1/31/95
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 84,594 116,098 131,674 175,913
Class C 7,785 5,260 5,719 7,959
Class R 75,545 401,984 325,517 1,397,272
Shares issued to shareholders due
to reinvestment of distributions
from net investment income and
from net realized gains from
investment transactions:
Class A 1,264 237 1,678 435
Class C 124 54 157 24
Class R 25,414 48,864 75,619 139,011
------- -------- -------- ---------
194,726 572,497 540,364 1,720,614
------- -------- -------- ---------
Shares redeemed:
Class A (19,151) (3,087) (5,366) (33,276)
Class C (313) (958) -- --
Class R (72,952) (254,213) (632,077) (639,360)
------- -------- -------- ---------
(92,416) (258,258) (637,443) (672,636)
------- -------- -------- ---------
Net increase (decrease) 102,310 314,239 (97,079) 1,047,978
------- -------- -------- ---------
</TABLE>
48
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT JULY 31, 1995
<TABLE>
<CAPTION>
MD MI
- -------------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
7/31/95 1/31/95 7/31/95 1/31/95
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 251,592 166,832 121,902 91,636
Class C 33,062 89,009 4,942 7,542
Class R 182,327 921,445 111,790 631,960
Shares issued to shareholders due
to reinvestment of distributions
from net investment income and
from net realized gains from
investment transactions:
Class A 3,514 570 1,730 269
Class C 1,735 635 192 35
Class R 74,085 142,445 45,837 87,694
-------- ---------- -------- --------
546,315 1,320,936 286,393 819,136
-------- ---------- -------- --------
Shares redeemed:
Class A (6,754) (240) (6,487) (987)
Class C (5,601) (24) -- --
Class R (255,341) (1,119,703) (140,599) (332,766)
-------- ---------- -------- --------
(267,696) (1,119,967) (147,086) (333,753)
-------- ---------- -------- --------
Net increase (decrease) 278,619 200,969 139,307 485,383
-------- ---------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
NJ PA
- -------------------------------------------------------------------------------
6 months 6 months
ended Year ended ended Year ended
7/31/95 1/31/95 7/31/95 1/31/95
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 367,577 292,386 188,603 153,866
Class C 17,010 47,588 16,029 50,810
Class R 179,870 1,077,289 268,070 1,297,150
Shares issued to shareholders due
to reinvestment of distributions
from net investment income and
from net realized gains from
investment transactions:
Class A 5,263 1,978 4,256 1,047
Class C 554 270 1,111 329
Class R 76,197 161,549 89,636 165,879
-------- --------- -------- ---------
646,471 1,581,060 567,705 1,669,081
-------- --------- -------- ---------
Shares redeemed:
Class A (18,548) (12,705) (15,653) (2,866)
Class C (2,370) (125) (7,513) --
Class R (225,622) (581,386) (351,122) (676,175)
-------- --------- -------- ---------
(246,540) (594,216) (374,288) (679,041)
-------- --------- -------- ---------
Net increase (decrease) 399,931 986,844 193,417 990,040
-------- --------- -------- ---------
</TABLE>
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
VA
- ------------------------------------------------------------------------------
6 months
ended Year ended
7/31/95 1/31/95
- ------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A 170,651 227,287
Class C 12,781 38,465
Class R 189,948 931,986
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from net
realized gains from investment transactions:
Class A 3,609 690
Class C 653 296
Class R 85,159 165,173
-------- ---------
462,801 1,363,897
-------- ---------
Shares redeemed:
Class A (18,649) (1,095)
Class C (1,949) --
Class R (260,576) (680,380)
-------- ---------
(281,174) (681,475)
-------- ---------
Net increase (decrease) 181,627 682,422
-------- ---------
</TABLE>
4. DISTRIBUTIONS TO SHAREHOLDERS
On August 9, 1995, the Funds declared dividend distributions
from their ordinary income which were paid on September 1,
1995, to shareholders of record on August 9, 1995 as follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- --------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share:
Class A $.0435 $.0420 $.0410 $.0435
Class C .0365 .0355 .0345 .0370
Class R .0450 .0440 .0430 .0455
------ ------ ------ ------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------
<S> <C> <C> <C>
Dividend per share:
Class A $.0455 $.0420 $.0420
Class C .0390 .0355 .0355
Class R .0475 .0440 .0440
------ ------ ------
</TABLE>
50
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in
municipal securities and temporary municipal investments for
the six months ended July 31, 1995, were as follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal secu-
rities $1,206,398 $7,968,295 $10,715,176 $9,904,086
Temporary municipal investments 1,800,000 3,800,000 4,300,000 4,400,000
SALES
Investments in municipal secu-
rities 194,052 8,485,959 7,426,208 8,445,606
Temporary municipal investments 1,700,000 3,400,000 5,000,000 5,000,000
---------- ---------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $9,590,241 $23,215,203 $20,167,491
Temporary municipal investments 6,700,000 10,680,000 6,800,000
SALES
Investments in municipal securities 6,152,556 15,990,442 17,969,617
Temporary municipal investments 5,700,000 10,580,000 8,100,000
---------- ----------- -----------
</TABLE>
At July 31, 1995, the cost of investments for federal income
tax purposes was the same as the cost for financial reporting
purposes for each Fund.
At January 31, 1995, the Funds' last fiscal year end, the
Funds had unused capital loss carryforwards 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>
AZ FL MD MI
- ------------------------------------------------------
<S> <C> <C> <C> <C>
Expiration year:
2003 $127,444 $88,470 $720,598 $138,495
-------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- ----------------------------------------------
<S> <C> <C> <C>
Expiration year:
2003 $452,892 $835,216 $110,093
-------- -------- --------
</TABLE>
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at July 31, 1995, were as
follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 699,629 $1,673,255 $1,843,876 $ 823,905
Depreciation (173,957) (802,517) (405,628) (199,243)
--------- ---------- ---------- ---------
Net unrealized appreciation $ 525,672 $ 870,738 $1,438,248 $ 624,662
--------- ---------- ---------- ---------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- ------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
Appreciation $1,194,395 $1,952,675 $1,932,470
Depreciation (467,687) (136,267) (463,314)
---------- ---------- ----------
Net unrealized appreciation $ 726,708 $1,816,408 $1,469,156
---------- ---------- ----------
</TABLE>
7. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Trust's 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 .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>
From inception of the Trusts on December 13, 1991 through
July 31, 1995, the Adviser waived part of its management fees
or reimbursed certain expenses of each Fund in order to limit
total expenses to .75 of 1% of the average daily net
52
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
asset value of each Fund, excluding any 12b-1 fees applicable
to Class A and Class C. The Adviser has currently agreed to
continue its fee waivers and expense reimbursements through
January 31, 1996.
The management fee referred to above compensates the Adviser
for overall investment advisory and administrative services,
and general office facilities. The Trust pays no compensation
directly to its trustees who are affiliated with the Adviser
or to its officers, all of whom receive remuneration for
their services to the Trust from the Adviser.
8. COMPOSITION OF NET ASSETS
At July 31, 1995, there were an unlimited number of $.01 par
value shares authorized. Net assets consisted of:
<TABLE>
<CAPTION>
AZ FL MD MI
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Capital paid in $19,127,414 $54,381,485 $49,553,167 $29,578,063
Balance of undistributed
net investment income 4,952 45,804 7,974 17,503
Accumulated net realized
gain (loss) from invest-
ment
transactions (137,106) (232,756) (633,675) 98,534
Net unrealized apprecia-
tion of investments 525,672 870,738 1,438,248 624,662
----------- ----------- ----------- -----------
Net assets $19,520,932 $55,065,271 $50,365,714 $30,318,762
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid in $48,007,244 $57,282,296 $60,330,051
Balance of undistributed net invest-
ment income 52,045 9,421 34,711
Accumulated net realized gain (loss)
from investment transactions (460,138) (1,153,655) (142,448)
Net unrealized appreciation of in-
vestments 726,708 1,816,408 1,469,156
----------- ----------- -----------
Net assets $48,325,859 $57,954,470 $61,691,470
----------- ----------- -----------
</TABLE>
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At July 31,
1995, the revenue sources by municipal purpose for these
investments, expressed as a percent of total investments,
were as follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- -----------------------------------------------
<S> <C> <C> <C> <C>
Revenue Bonds:
Housing Facilities 13% 15% 22% 13%
Pollution Control 9 3 6 7
Health Care Facilities 11 16 11 19
Water/Sewer Facilities 3 6 4 19
Electric Utilities 3 17 3 3
Educational Facilities 11 1 5 10
Transportation 3 8 12 4
Lease Rental Facilities 9 1 6 3
Other 7 10 8 4
General Obligation Bonds 20 9 13 15
Escrowed Bonds 11 14 10 3
- -----------------------------------------------
100% 100% 100% 100%
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- ------------------------------------------
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 21% 5% 12%
Pollution Control 13 21 --
Health Care Facilities 3 8 13
Water/Sewer Facilities 8 -- 18
Electric Utilities 6 4 --
Educational Facilities 7 10 12
Transportation 7 7 6
Lease Rental Facilities 4 1 3
Other 10 11 22
General Obligation Bonds 15 20 10
Escrowed Bonds 6 13 4
- ------------------------------------------
100% 100% 100%
</TABLE>
54
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 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 (45% for Arizona, 58% for Florida, 50%
for Maryland, 29% for Michigan, 25% for New Jersey, 64% for
Pennsylvania, and 19% for Virginia). Such insurance or
escrow, however, does not guarantee the market value of the
municipal securities or the value of the Fund's shares.
All of the temporary investments in short-term municipal
securities have credit enhancements (letters of credit,
guarantees or insurance) issued by third party domestic or
foreign banks or other institutions.
For additional information regarding each investment
security, refer to the Portfolio of Investments of each Fund.
55
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
--------------------------------------------------------------------------
Net asset Net realized
value Net and unrealized Dividends from Distributions
beginning investment gain (loss) from net investment from
of period income++ investments** income capital gains
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AZ
- ---------------------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 $ 9.930 $.254 $ .420 $(.264) $ --
9/7/94 to
1/31/95 10.030 .203 (.086) (.217) --
CLASS C
6 mos. ended
7/31/95 9.840 .204 .429 (.223) --
9/12/94 to
1/31/95 9.940 .169 (.052) (.217) --
CLASS R
6 mos. ended
7/31/95 9.850 .266 .427 (.273) --
Year ended 1/31,
1995 10.880 .536 (1.026) (.540) --
1994 10.050 .531 .853 (.522) (.032)
1993 9.525 .438 .563 (.435) (.041)
12/13/91 to
1/31/92 9.525 -- -- -- --
- ---------------------------------------------------------------------------------------------------
FL
- ---------------------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 9.730 .246 .381 (.247) --
9/7/94 to
1/31/95 9.890 .193 (.148) (.202) (.003)
CLASS C
6 mos. ended
7/31/95 9.730 .213 .387 (.210) --
9/19/94 to
1/31/95 9.720 .152 .021 (.163) --
CLASS R
6 mos. ended
7/31/95 9.750 .260 .369 (.259) --
Year ended 1/31,
1995 10.740 .508 (.985) (.510) (.003)
1994 9.960 .511 .779 (.510) --
1993 9.525 .440 .431 (.436) --
12/13/91 to
1/31/92 9.525 -- -- -- --
- ---------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 66.
56
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net asset value Total return on
end of period net asset value+
- --------------------------------------------------------------------------------------------------
<S> <C>
- --------------------------------------------------------------------------------------------------
$10.340 6.83%
9.930 1.24
10.250 6.46
9.840 1.25
10.270 7.08
9.850 (4.39)
10.880 14.07
10.050 10.71
9.525 --
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
10.110 6.47
9.730 .52
10.120 6.19
9.730 1.84
10.120 6.48
9.750 (4.33)
10.740 13.22
9.960 9.33
9.525 --
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental data
- --------------------------------------------------------------------------------------------------
Ratio of net Ratio of
Ratio of investment expenses to Ratio of net
expenses to income average investment income
Net assets average to average net assets to average
end of period net assets before net assets before after net assets after Portfolio
(in thousands) reimbursement reimbursement reimbursement++ reimbursement++ turnover rate
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
$ 1,861 1.45%* 4.55%* 1.00%* 5.00%* 1%
1,124 1.60* 4.68* 1.00* 5.28* 29
123 2.50* 3.50* 1.75* 4.25* 1
43 3.51* 2.79* 1.75* 4.55* 29
17,537 1.24* 4.76* .75* 5.25* 1
16,554 1.06 5.12 .75 5.43 29
16,140 1.25 4.48 .75 4.98 11
8,026 1.75* 3.94* .75* 4.94* 43
15 -- -- -- -- --
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
2,739 1.39* 4.53* 1.00* 4.92* 15
1,392 1.56* 4.52* 1.00* 5.08* 4
140 2.55* 3.37* 1.75* 4.17* 15
78 2.84* 3.26* 1.75* 4.35* 4
52,186 .89* 5.03* .75* 5.17* 15
52,538 .84 5.12 .75 5.21 4
48,254 .89 4.69 .75 4.83 3
23,727 1.24* 4.35* .75* 4.84* 1
15 -- -- -- -- --
- --------------------------------------------------------------------------------------------------
</TABLE>
57
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
-------------------------------------------------------------------------
Net asset Net realized
value Net and unrealized Dividends from Distributions
beginning investment gain (loss) from net investment from
of period income++ investments** income capital gains
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MD
- ---------------------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 $ 9.600 $.243 $ .508 $(.251) $ --
9/7/94 to
1/31/95 9.840 .198 (.229) (.207) (.002)
CLASS C
6 mos. ended
7/31/95 9.590 .206 .508 (.214) --
9/16/94 to
1/31/95 9.750 .160 (.153) (.167) --
CLASS R
6 mos. ended
7/31/95 9.610 .259 .504 (.263) --
Year ended 1/31,
1995 10.620 .513 (1.008) (.513) (.002)
1994 9.910 .509 .727 (.503) (.023)
1993 9.525 .442 .395 (.442) (.010)
12/13/91 to
1/31/92 9.525 -- -- -- --
- ---------------------------------------------------------------------------------------------------
MI
- ---------------------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 9.870 .260 .459 (.259) --
9/7/94 to
1/31/95 10.090 .204 (.209) (.212) (.003)
CLASS C
6 mos. ended
7/31/95 9.850 .222 .449 (.221) --
9/19/94 to
1/31/95 9.910 .161 (.050) (.171) --
CLASS R
6 mos. ended
7/31/95 9.880 .270 .451 (.271) --
Year ended 1/31,
1995 10.860 .529 (.972) (.534) (.003)
1994 10.060 .531 .808 (.528) (.011)
1993 9.525 .456 .554 (.449) (.026)
12/13/91 to
1/31/92 9.525 -- -- -- --
- ---------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 66.
58
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net asset value Total return on
end of period net asset value+
- ---------------------------------------------------------------------------------------------------
<S> <C>
- ---------------------------------------------------------------------------------------------------
$10.100 7.87%
9.600 (.26)
10.090 7.49
9.590 .12
10.110 8.00
9.610 (4.58)
10.620 12.71
9.910 8.96
9.525 --
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
10.330 7.32
9.870 .02
10.300 6.84
9.850 1.18
10.330 7.34
9.880 (3.98)
10.860 13.58
10.060 10.80
9.525 --
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental data
- ---------------------------------------------------------------------------------------------------
Ratio of net Ratio of
Ratio of investment expenses to Ratio of net
expenses to income average investment income
Net assets average to average net assets to average
end of period net assets before net assets before after net assets after Portfolio
(in thousands) reimbursement reimbursement reimbursement++ reimbursement++ turnover rate
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
$ 4,196 1.37%* 4.58%* 1.00%* 4.95%* 16%
1,605 1.59* 4.67* 1.00* 5.26* 35
1,199 2.06* 3.89* 1.75* 4.20* 16
860 1.86* 4.44* 1.75* 4.55* 35
44,971 1.00* 4.95* .75* 5.20* 16
42,741 .89 5.14 .75 5.28 35
47,822 .86 4.74 .75 4.85 4
28,283 1.02* 4.69* .75* 4.96* 20
15 -- -- -- -- --
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
2,149 1.39* 4.65* 1.00* 5.04* 29
897 2.62* 3.68* 1.00* 5.30* 35
131 2.10* 3.94* 1.75* 4.29* 29
75 3.52* 2.76* 1.75* 4.53* 35
28,039 1.03* 5.01* .75* 5.29* 29
26,644 .96 5.12 .75 5.33 35
25,085 1.07 4.67 .75 4.99 3
14,684 1.62* 4.19* .75* 5.06* 32
15 -- -- -- -- --
- ----------------------------------------------------------------------------------------------------
</TABLE>
59
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
-------------------------------------------------------------------------
Net asset Net realized
value Net and unrealized Dividends from Distributions
beginning investment gain (loss) from net investment from
of period income++ investments** income capital gains
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NJ
- ---------------------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 $ 9.730 $.264 $ .350 $(.264) $ --
9/7/94 to
1/31/95 10.030 .205 (.209) (.210) (.086)
CLASS C
6 mos. ended
7/31/95 9.710 .227 .348 (.225) --
9/22/94 to
1/31/95 9.770 .159 (.050) (.169) --
CLASS R
6 mos. ended
7/31/95 9.740 .279 .337 (.276) --
Year ended 1/31,
1995 10.710 .524 (.886) (.522) (.086)
1994 9.960 .513 .810 (.513) (.060)
1993 9.525 .445 .431 (.441) --
12/13/91 to
1/31/92 9.525 -- -- -- --
- ---------------------------------------------------------------------------------------------------
PA
- ---------------------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 9.750 .253 .466 (.259) --
9/7/94 to
1/31/95 9.920 .206 (.164) (.212) --
CLASS C
6 mos. ended
7/31/95 9.650 .214 .456 (.220) --
9/7/94 to
1/31/95 9.920 .176 (.235) (.211) --
CLASS R
6 mos. ended
7/31/95 9.730 .266 .464 (.270) --
Year ended 1/31,
1995 10.810 .531 (1.077) (.534) --
1994 10.010 .533 .807 (.534) (.006)
1993 9.525 .451 .481 (.443) (.004)
12/13/91 to
1/31/92 9.525 -- -- -- --
- ---------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 66.
60
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net asset value Total return on
end of period net asset value+
- ---------------------------------------------------------------------------------------------------
<S> <C>
- ---------------------------------------------------------------------------------------------------
$10.080 6.35%
9.730 .02
10.060 5.95
9.710 1.16
10.080 6.37
9.740 (3.27)
10.710 13.60
9.960 9.36
9.525 --
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
10.210 7.41
9.750 .49
10.100 6.97
9.650 (.53)
10.190 7.55
9.730 (4.94)
10.810 13.67
10.010 9.97
9.525 --
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental data
- ---------------------------------------------------------------------------------------------------
Ratio of net
Ratio of investment Ratio of Ratio of net
expenses to income expenses to investment income
Net assets average to average average to average net
end of period net assets before net assets before net assets after assets after Portfolio
(in thousands) reimbursement reimbursement reimbursement++ reimbursement++ turnover rate
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
$ 6,407 1.20%* 5.15%* 1.00%* 5.35%* 14%
2,741 1.31* 5.03* 1.00* 5.34* 32
633 1.86* 4.49* 1.75* 4.60* 14
464 2.00* 4.37* 1.75* 4.62* 32
41,286 .94* 5.41* .75* 5.60* 14
39,582 .89 5.18 .75 5.32 32
36,462 .98 4.61 .75 4.84 52
16,208 1.43* 4.28* .75* 4.96* 9
15 -- -- -- -- --
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
3,363 1.39* 4.65* 1.00* 5.04* 29
1,483 1.87* 4.56* 1.00* 5.43* 74
614 2.34* 3.70* 1.75* 4.29* 29
494 2.52* 3.90* 1.75* 4.67* 74
53,978 .93* 5.11* .75* 5.29* 29
51,499 .91 5.27 .75 5.43 74
48,720 .94 4.82 .75 5.01 5
23,680 1.25* 4.53* .75* 5.03* 15
15 -- -- -- -- --
- ---------------------------------------------------------------------------------------------------
</TABLE>
61
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON 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>
VA
- ----------------------------------------------------------------------------------------
CLASS A
6 mos. ended
7/31/95 $ 9.760 $.257 $ .429 $(.256) --%
9/7/94 to
1/31/95 9.980 .201 (.207) (.214) --
CLASS C
6 mos. ended
7/31/95 9.740 .221 .417 (.218) --
9/9/94 to
1/31/95 9.950 .171 (.167) (.214) --
CLASS R
6 mos. ended
7/31/95 9.770 .270 .408 (.268) --
Year ended 1/31,
1995 10.740 .531 (.964) (.537) --
1994 10.030 .529 .726 (.527) (.018)
1993 9.525 .439 .499 (.433) --
12/13/91 to
1/31/92 9.525 -- -- -- --
- ----------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Net of taxes, if applicable. See note 1.
+ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in stock
price per share.
++ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Advisor. See note 7 of Notes to Financial Statements.
62
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Net asset value Total return on
end of period net asset value+
- --------------------------------------------------------------------------------------------------
<S> <C>
- --------------------------------------------------------------------------------------------------
$10.190 7.07%
9.760 .01
10.160 6.58
9.740 .10
10.180 6.98
9.770 (3.92)
10.740 12.78
10.030 10.04
9.525 --
- --------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratios/Supplemental data
- --------------------------------------------------------------------------------------------------
Ratio of Ratio of net
Ratio of net investment Ratio of investment
expenses to income expenses to income
Net assets average to average average to average
end of period net assets before net assets before net assets after net assets after Portfolio
(in thousands) reimbursement reimbursement reimbursement++ reimbursement++ turnover rate
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
$ 3,897 1.21%* 4.90%* 1.00%* 5.11%* 31%
2,215 1.57* 4.70* 1.00* 5.27* 40
510 1.88* 4.23* 1.75* 4.36* 31
378 2.20* 4.12* 1.75* 4.57* 40
57,284 .93* 5.18* .75* 5.36* 31
54,791 .82 5.33 .75 5.40 40
55,773 .84 4.94 .75 5.03 7
37,196 .96* 4.71* .75* 4.92* 12
15 -- -- -- -- --
- --------------------------------------------------------------------------------------------------
</TABLE>
63
<PAGE>
Your
investment
partner
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers--Nuveen believes that forging
relationships within these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their needs
in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent financial
planners, to bring the benefits of tax-free investing to you. These advisers are
experts at identifying your needs and recommending the best solutions for your
situation. Together we make a powerful team, helping you create a successful
investment plan that meets your needs today and in the future.
[PHOTO APPEARS HERE]
For nearly 100 years, Nuveen has earned its reputation as a tax-free income
specialist by focusing on municipal bonds.
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John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
