<PAGE>
[LOGO--PHOTO OF COUPLE]
Nuveen Tax-Free
Mutual Funds
Dependable tax-free
income for generations
NUVEEN MULTISTATE TAX-FREE TRUST
ARIZONA
FLORIDA
MARYLAND
MICHIGAN
NEW JERSEY
PENNSYLVANIA
VIRGINIA
ANNUAL REPORT/JANUARY 31, 1995
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
9 Fund performance
16 Portfolio of investments
38 Statement of net assets
40 Statement of operations
42 Statement of changes in net assets
46 Notes to financial statements
60 Financial highlights
<PAGE>
Dear shareholder
[PHOTO OF RICHARD J. FRANKE]
"Providing secure income remains our top priority"
The 12 months ended January 31, 1995, were one of the most difficult periods the
bond markets have experienced in decades. In the course of the past fiscal year,
the Federal Reserve Board raised interest rates seven times to fend off future
inflation. As a result, the prices of bonds and bond funds declined.
The unusually high volatility and uncertainty of the past year has brought
home a basic fact about fixed income securities: interest rates are subject to
change, and sometimes the changes can have marked effects on net asset values.
At Nuveen, we believe that the best approach to tax-free investing in such
tumultuous times is to focus on quality and income dependability. By this
standard, in one of the most challenging periods the municipal market has seen
in years, your Fund continued to meet its objectives well, providing an
attractive level of tax-free income while holding portfolio values in line with
or better than the market as a whole.
Looking first at income, current yields on net asset values for the funds
covered in this report ranged from 5.60% to 6.03% on January 31. To equal these
yields, an investor in the 36% federal income tax bracket would need to earn at
least 8.75% on taxable alternatives. This taxable yield is difficult to achieve
on investments of comparable credit quality.
3
<PAGE>
Your Fund also maintained its value relatively well during the past year.
While the net asset values of the funds in this report declined, the Bond Buyer
40 index--a measure of the value of newly issued municipal bonds--declined by
even more, slipping 15.8% over the past 12 months. And 30-year Treasury bonds
declined by 16.9% during the year.
In this context, we believe that your Fund met the demands of the past year
well. And when we take a long-range view of the municipal market, we believe the
outlook for your Fund is positively supported by several considerations.
First, from November of 1994 through February of 1995, municipal bond yields
declined by nearly a full percent and bond prices started to gain ground. This
development suggests that the underlying inflationary pressures that drove
interest rates higher and bond prices lower may be moderating.
Second, and as we have noted in past reports, the municipal market's supply
and demand fundamentals continue to be sound. To put these trends in
perspective, in 1994, the supply of new municipal bonds declined by
approximately 40% from 1993; for the first two months of 1995, new issue volume
is down a further 57% from last year's already low level.
Once investors perceive that the interest rate environment has stabilized,
demand for municipal investments, which has been subdued over the last 12 months
as a result of the market's extraordinary volatility, should resume its long-
term upward trend.
At Nuveen we are taking steps to increase the value our funds provide to
shareholders--steps reflected in last year's introduction of two new share
classes with different sales charge structures and service fees. These new share
classes, designated A Shares and C Shares, give you and your investment adviser
added flexibility in designing a tax-free investment program that meets your
requirements. These classes also encourage fund growth, which offset redemptions
and protects portfolio integrity.
Finally, we continue to pursue the objectives of your Fund--providing
attractive tax-free income and enhancing portfolio value relative to the
municipal bond market--through value investing, a disciplined approach to
security selection and portfolio construction supported by one of the largest
and most respected research teams in the municipal industry.
We appreciate your trust in our family of funds, and we look forward to
helping you meet your tax-free investment objectives in the future.
Sincerely,
/s/ Richard J. Franke
Richard J. Franke
Chairman of the Board
March 15, 1995
4
<PAGE>
Answering your questions
We spoke recently with Tom Spalding, head of Nuveen's portfolio management team,
and asked him about recent developments in the municipal market and the outlook
for Nuveen's Tax-Free Mutual Funds.
Why did my Fund's net asset value decline over the past year?
The past 12 months have been a difficult period for all fixed-income investors.
The Federal Reserve raised interest rates seven times from February 1994 through
February 1995, and its actions drove the prices of all bonds and bond funds
lower. Of course, changing interest rates are a fact of investment life. The
important point is that shareholders in these funds were less affected by rising
interest rates than the market overall. While the net asset values of the Class
R Shares of the funds covered in this report registered declines ranging from
9.02% to 9.99%, the municipal market overall, as measured by the Bond Buyer 40
index, was down 15.80% and as measured by the Lehman Brothers Municipal Bond
index was off 9.10%. The Bond Buyer 40 index reflects price movements of newly
issued long-term
5
<PAGE>
[PHOTO OF TOM SPALDING]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
municipal bonds, while the Lehman Brothers Municipal Bond index reflects the
broader municipal market, including older and shorter-term bonds.
This is one result of our conservative, value-oriented approach to investing.
Our funds tend to hold their value better than the market as a whole when
interest rates are rising.
What steps did you take to moderate the impact of rising interest rates on the
value of the funds' portfolios?
As value investors, we don't manage our portfolios by anticipating future
interest rate movements. We feel that it's impossible to predict changes in the
economy or interest rates with any degree of accuracy, and we don't try.
Instead, we try to buy bonds that will perform well in any interest rate
environment, focusing closely on relative values in the market.
Because of that approach, we didn't need to make major changes in our
portfolios as interest rates rose. For a number of technical reasons--above all
the compression of yields between higher-rated and lower-rated issues that had
been taking place for some time--the best values, in our view, were to be found
in higher quality bonds. For some time, we had been concentrating on higher-
rated bonds with maturities in the 15-to-20 year range, as well as bonds priced
at premiums to their par values and pre-refunded issues. We also benefitted from
an increase in assets in many of our funds, driven
6
<PAGE>
by both higher demand for tax-free investments and reinvestment programs. As a
result, we weren't under pressure to sell into difficult markets to meet
redemptions.
Some analysts are expecting a record amount of municipal bonds to be called in
1995. Will bond calls affect my income or the stability of the net asset value
of my shares?
In general, bond calls can mean some reduction in income for investors in both
individual bonds and bond funds, because bonds issued when interest rates were
higher are replaced with today's lower-yielding bonds. Keep in mind, however,
that high coupon bonds which may be subject to calls often are priced at
premiums to their par values and to their call prices. As we saw last year, this
premium is a "cushion" that can soften the effect of rising interest rates. As
these bonds approach their call dates, the premiums gradually approach the
bonds' call prices, potentially reducing net asset values.
Of course, we manage all of our portfolios with calls in mind. As part of our
basic management process, we continually evaluate opportunities to sell bonds
approaching their call dates and to reinvest the proceeds in bonds we think have
high potential to provide above-market total returns.
7
<PAGE>
A number of fund managers have encountered problems recently related to the use
of derivative securities. Do you use derivatives in your portfolios?
Over the last year, participants in the financial services industry, including
securities dealers, underwriters and investment advisers, received much
attention in the press relating to the use of certain types of derivative
financial instruments in the management of portfolios, including those of mutual
funds. There are many different types of derivative investments available in the
market today, including those derivatives whose market values respond to
interest rate changes with greater volatility than do others. In general,
derivatives used to speculate on the future course of interest rates pose the
greatest risk, while derivatives used for hedging purposes present less risk
and, if used properly, can often reduce risk. Synthetic money market securities
generally present no greater risk to investors than ordinary money market
securities.
Although the Funds are authorized to invest in such financial instruments, and
may do so in the future, they did not make any such investments during the
fiscal year ended January 31, 1995, other than occasional purchases of high
quality synthetic money market securities, which were held temporarily pending
the investment in long-term portfolio securities.
8
<PAGE>
NUVEEN ARIZONA TAX-FREE
VALUE FUND
Arizona
INDEX COMPARISON
Nuveen Arizona Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
Tax- AZ Share
Adjusted Price
Date Lehman Lehman Wealth
- ----------------------------------------------
Jan-92 $10,000 $10,000 $9,525
Jun-92 $10,379 $10,386 $9,960
Jan-93 $10,975 $10,983 $10,546
Jun-93 $11,573 $11,628 $11,240
Jan-94 $12,270 $12,328 $12,029
Jun-94 $11,549 $11,648 $11,201
Dec-94 $11,461 $11,559 $11,123
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------
R shares on NAV -4.39% 6.49%
A shares on NAV 1.24%+
A shares on offering price** -3.31%+
C shares on NAV 1.25%+
Shareholders enjoyed three dividend increases during the period, bringing the
Fund's monthly dividend from 4.35 cents to 4.55 cents per share on January 31,
1995. During the year, the Fund paid dividends totaling 53.95 cents per share.
As yield differentials between higher and lower-rated bonds and longer- and
shorter- maturities narrowed, the Fund's manager focused attention on higher-
quality bonds with maturities in the 15-to-20 year range, as well as on pre-
refunded bonds.
Other areas of emphasis included bonds issued to support Arizona's strong
healthcare system, housing bonds backed by guarantees from agencies of the
federal government, and state general obligation bonds, which became more
attractive in light of the economic expansion nationwide and the state's
improving finances.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
9
<PAGE>
NUVEEN FLORIDA TAX-FREE
VALUE FUND
FLORIDA
INDEX COMPARISON
Nuveen Florida Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
- -----------------------------------------------------------
Tax- FL Share
Adjusted price
Date Lehman Lehman Wealth
- -----------------------------------------------------------
Jan-92 $10,000 $10,000 $9,525
- -----------------------------------------------------------
Jun-92 $10,386 $10,386 $9,865
- -----------------------------------------------------------
Jan-93 $10,983 $10,983 $10,414
- -----------------------------------------------------------
Jun-93 $11,628 $11,628 $11,093
- -----------------------------------------------------------
Jan-94 $12,328 $12,328 $11,791
- -----------------------------------------------------------
Jun-94 $11,648 $11,648 $10,967
- -----------------------------------------------------------
Dec-94 $11,559 $11,559 $10,909
- -----------------------------------------------------------
- -----------------------------------------------------------
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------
R shares on NAV -4.33% 5.80%
A shares on NAV .52%+
A shares on offering price** -4.00%+
C shares on NAV 1.84%+
- -----------------------------------------------------------
Shareholders enjoyed two dividend increases during the period, bringing the
Fund's monthly dividend from 4.2 cents to 4.3 cents per share on January 31,
1995. During the year, the Fund paid dividends totaling 50.95 cents per share.
As interest rates rose and yield differentials between bonds of different
quality ratings and maturities continued to compress, the Fund's manager focused
on higher-quality bonds with maturities in the 15-to-20 year range. When
possible, given limited supplies of investment-grade Florida bonds, the managers
also bought bonds whose prices tend to be less volatile in rising interest-rate
environments, notably housing issues with well-secured revenue streams.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
10
<PAGE>
NUVEEN MARYLAND TAX-FREE
VALUE FUND
Maryland
INDEX COMPARISON
Nuveen Maryland Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
Shareholders enjoyed four dividend increases during the period, bringing the
Fund's monthly dividend from 4.1 cents to 4.4 cents per share on January 31,
1995. During the year, the Fund paid dividends totaling 51.25 cents per share.
As interest rates rose and yield differentials between bonds of different
quality ratings and maturities continued to compress, the Fund's manager focused
on higher-quality bonds with maturities in the 15-to-20 year range.
Late in the period, as yield differentials widened, general obligation bonds
were emphasized. In addition to Maryland's housing and healthcare sectors,
attractive value investing opportunities were found in bonds issued to support
the state's transportation systems.
Tax- MD Share
Adjusted Price
Date Lehman Lehman Wealth
Jan-92 $10,000 $10,000 $ 9,525
Jun-92 $10,379 $10,386 $ 9,862
Jan-93 $10,975 $10,983 $10,379
Jun-93 $11,576 $11,628 $11,088
Jan-94 $12,273 $12,328 $11,698
Jun-94 $11,555 $11,648 $10,970
Dec-94 $11,467 $11,559 $10,833
ANNUALIZED TOTAL RETURN
- --------------------------------------------------------
1 year Since Inception
- --------------------------------------------------------
R shares on NAV -4.58% 5.43%
A shares on NAV -.26%+
A shares on offering price** -4.75%+
C shares on NAV .12%+
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25 % annual 12b-1 service fee applicable to Class A and Class C
Shares: (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
11
<PAGE>
NUVEEN MICHIGAN TAX-FREE
VALUE FUND
Michigan
INDEX COMPARISON
Nuveen Michigan Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
<TABLE>
<CAPTION>
Tax- MI Share
Adjusted Price
Date Lehman Lehman Wealth
- ------------------------------------------
<S> <C> <C> <C>
Jan-92 $10,000 $10,000 $ 9,525
Jun-92 $10,377 $10,386 $ 9,964
Jan-93 $10,973 $10,983 $10,554
Jun-03 $11,560 $11,628 $11,304
Jan-94 $12,256 $12,328 $11,988
Jun-94 $11,525 $11,648 $11,270
Dec-94 $11,438 $11,559 $11.145
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------
ANNUALIZED TOTAL RETURN
1 year Since Inception
- ------------------------------------------------------
<S> <C> <C>
R shares on NAV -3.98% 6.51%
A shares on NAV .02%+
A shares on offering price** -4.48%+
C shares on NAV 1.18%+
- ------------------------------------------------------
</TABLE>
Shareholders enjoyed two dividend increases during the period, bringing the
Fund's monthly dividend from 4.4 cents to 4.5 cents per share on January 31,
1995. During the year, the Fund paid dividends totaling 53.35 cents per share.
While the shortage of investment-grade Michigan paper offered few
opportunities to increase the portfolio's yield, the Fund's manager took
advantage of attractive value investing opportunities in Michigan's healthcare
and single-family housing sectors. Along with education bonds backed by state
agency guarantees and municipalities whose economies have strengthened with the
economic expansion, these issues now make up a significant percentage of the
portfolio's holdings.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
12
<PAGE>
NUVEEN NEW JERSEY TAX-FREE
VALUE FUND
New Jersey
INDEX COMPARISON
Nuveen New Jersey Tax-Free Value Fund R Shares* and Lehman Brothers Municipal
Bond Index Comparison of Change in Value of a $10,000 Investment
<TABLE>
<CAPTION>
Tax-Adjusted NJ Share
Date Lehman Lehman Price Wealth
- ---------------------------------------------------------------------
<S> <C> <C> <C>
Jan-92 $10,000 $10,000 $9,525
Jun-92 $10,378 $10,386 $9,912
Jan-93 $10,975 $10,983 $10,416
Jun-93 $11,571 $11,628 $11,006
Jan-94 $12,268 $12,328 $11,526
Jun-94 $11,546 $11,648 $11,370
Dec-94 $11,458 $11,559 $11,446
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED TOTAL RETURN
- ---------------------------------------------------------------------
1 Year Since Inception
- ---------------------------------------------------------------------
<S> <C> <C>
R shares on NAV -3.27% 6.31%
A shares on NAV .02%+
A shares on offering price** -4.48%+
C shares on NAV 1.16%+
- ---------------------------------------------------------------------
</TABLE>
Shareholders enjoyed three dividend increases during the period, bringing the
Fund's monthly dividend from 4.15 cents to 4.5 cents per share on January 31,
1995. During the year, the Fund paid dividends totaling 52.2 cents per share.
As interest rates rose, the Fund's manager concentrated on bonds maturing in
the 15-to-20 year range, believing that longer-term bonds were relatively
overvalued. The manager also focused on bonds trading at a premium to their par
values, which helped cushion the portfolio against interest-rates.
Reflecting Nuveen's value investing approach and research strengths, emphasis
continued on bonds with contingent cash flows or call provision, which are
difficult for less experienced investors to value accurately and tend to trade
at attractive prices.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
13
<PAGE>
NUVEEN PENNSYLVANIA TAX-FREE
VALUE FUND
Pennsylvania
INDEX COMPARISON
Nuveen Pennsylvania Tax-Free Value Fund R Shares* and Lehman Brothers Municipal
Bond Index Comparison of Change in Value of a $10,000 Investment
Shareholders enjoyed a steady dividend of 4.45 cents per share throughout the
period. For the 12 months, the Fund's monthly dividends totaled 53.4 cents per
share.
As interest rates rose during the year, the Fund's manager reduced the
duration of the portfolio--a technical measure of a fund's sensitivity to
interest-rate changes--focusing more attention on bonds with maturities in the
long-intermediate (15-to-20 year) range. While a state law that had limited
trading by Pennsylvania funds was repealed early in the period, due to a
shortage of investment grade Pennsylvania bonds, the basic composition of the
portfolio was essentially unchanged, aside from the elimination of some small,
odd-lot positions.
<TABLE>
<CAPTION>
Tax- Penn Share
Adjusted Price
Date Lehman Lehman Wealth
<S> <C> <C> <C>
Jan-92 $10,000 $10,000 $ 9,525
Jun-92 $10,383 $10,386 $ 9,954
Jan-93 $10,979 $10,983 $10,475
Jun-93 $11,604 $11,628 $11,205
Jan-94 $12,303 $12,328 $11,906
Jun-94 $11,604 $11,648 $11,037
Dec-94 $11,516 $11,559 $10,954
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED TOTAL RETURN
1 year Since Inception
<S> <C> <C>
R shares on NAV -4.94% 5.92%
A shares on NAV .49%+
A shares on offering price** -4.03%+
C shares on NAV -.53%+
</TABLE>
*One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
**Maximum public offering price, which includes sales charges, which are reduced
for purchases over $50,000 and waived for reinvestment of dividends.
+Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
<PAGE>
NUVEEN VIRGINIA TAX-FREE
VALUE FUND
Virginia
INDEX COMPARISON
Nuveen Virginia Tax-Free Value Fund R Shares* and Lehman Brothers Municipal Bond
Index Comparison of Change in Value of a $10,000 Investment
Tax- Virginia
Adjusted Share Price
Date Lehman Lehman Wealth
- ------ ---------- -------- -----------
Jan-92 $10,000 $10,000 $ 9,525
Jun-92 $10,378 $10,386 $ 9,902
Jan-93 $10,975 $10,983 $10,481
Jun-93 $11,572 $11,628 $11,164
Jan-94 $12,269 $12,328 $11,820
Jun-94 $11,547 $11,648 $11,083
Dec-94 $11,459 $11,559 $10,992
ANNUALIZED TOTAL RETURN
- -----------------------------------------------------------
1 year Since Inception
- -----------------------------------------------------------
R shares on NAV -3.92% 6.04%
A shares on NAV .01%+
A shares on offering price** -4.50%+
C shares on NAV .10%+
- -----------------------------------------------------------
Shareholders enjoyed a dividend increase during the period, bringing the Fund's
monthly dividend from 4.4 cents to 4.5 cents on January 31, 1995. For the year,
the Fund's monthly dividends totaled 53.7 cents per share.
As interest rates rose during the year, the Fund's manager shortened the
maturity of the portfolio somewhat, focusing on bonds maturing in 15-to-20
years. Significant holdings of pre-refunded bonds also helped moderate the
impact of interest-rate changes on the portfolio's net asset value.
The managers placed more emphasis on general obligation bonds and bonds issued
to support the state's healthcare system, the fund continues to emphasize
education issues supporting state colleges and universities, and transportation
issues, notably revenue bonds backing the Washington, D.C. airport.
* One-year, 5-year and life of fund total return figures for Class R Shares are
not representative for Class A Shares or Class C Shares because they do not take
into account (1) the difference between the maximum front-end sales charge
applicable to Class R Shares (none), Class A Shares (4.50%) and Class C Shares
(none); (2) the .25% annual 12b-1 service fee applicable to Class A and Class C
Shares; (3) the .75% annual 12b-1 distribution fee to be deducted from income
with respect to Class C Shares; and (4) other class-level expenses applicable to
Class A Shares and Class C Shares.
** Maximum public offering price, which includes sales charges, which are
reduced for purchases over $50,000 and waived for reinvestment of dividends.
+ Life of class; not annualized. Class A Shares and Class C Shares were first
issued at different times after September 6, 1994.
The Lehman Municipal Bond Index is comprised of a broad range of investment-
grade municipal bonds, and does not reflect any initial or ongoing expenses. The
Nuveen fund return depicted in the table reflects the initial maximum sales
charge applicable to R Shares at the time (4.75%) and all ongoing fund expenses.
15
<PAGE>
PORTFOLIO OF INVESTMENTS
ARIZONA
<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 $ 254,488
Arizona Educational Loan
Marketing Corporation,
Alternative Minimum Tax:
200,000 7.000%, 3/01/05 3/02 at 101 A 207,466
100,000 6.375%, 9/01/05 9/02 at 101 Aa 102,615
300,000 Arizona Health Facilities
Authority
(Phoenix Baptist Hospital
and Medical Center),
6.250%, 9/01/11 9/03 at 100 Aaa 304,350
200,000 Arizona Municipal
Financing Program,
Certificates of
Participation, 7.700%,
8/01/10 No Opt. Call Aaa 223,222
200,000 Arizona State
Transportation Board,
6.500%, 7/01/11 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 Aaa 213,158
500,000 Arizona State University,
5.750%, 7/01/12 7/02 at 101 AA 477,745
500,000 Arizona Student Loan
Acquisition Authority,
Alternative Minimum Tax,
6.600%, 5/01/10 5/04 at 102 Aa 512,705
175,000 Arizona Wastewater
Management Authority,
5.950%, 7/01/12 7/02 at 102 Aaa 171,645
700,000 Apache County Public
Finance Corporation,
Certificates of
Participation, 5.500%,
5/01/10 5/00 at 102 A 629,076
195,000 Central Arizona Water
Conservation District,
6.500%, 11/01/11 (Pre-
refunded to 5/01/01) 5/01 at 102 AA- 207,845
300,000 Cochise County Unified
School District No. 68,
General Obligation,
7.500%, 7/01/10 No Opt. Call Aaa 348,471
250,000 Coconino and Yavapai
Counties, Joint Unified
School District No. 9,
6.750%, 7/01/07 7/01 at 101 A- 259,128
280,000 Eloy Municipal Property
Corporation,
7.000%, 7/01/11 7/02 at 101 BBB 285,382
375,000 Maricopa Rural Road
Improvement District,
6.900%, 7/01/05 7/99 at 101 N/R 380,779
300,000 Maricopa County Hospital
District No. 1,
6.250%, 6/01/10 6/04 at 101 Aaa 308,058
500,000 Maricopa County Industrial
Development Authority
(Catholic Healthcare
West),
5.750%, 7/01/11 7/02 at 102 Aaa 476,010
500,000 Maricopa County Industrial
Development Authority
(Samaritan Health
Services),
7.000%, 12/01/16 No Opt. Call Aaa 555,785
50,000 Maricopa County School
District No. 28,
General Obligation,
6.000%, 7/01/12 7/02 at 100 Aaa 49,890
265,000 Maricopa County School
District No. 28,
6.000%, 7/01/12 (Pre-
refunded to 7/01/02) 7/02 at 100 Aaa 271,829
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 211,286
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 263,073
</TABLE>
16
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<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 $ 495,235
750,000 Navajo County Pollution
Control Corporation (Arizona
Public Service Company),
5.875%, 8/15/28 8/03 at 102 Baa2 639,735
425,000 Peoria Improvement District
(North Valley Power Center),
7.300%, 1/01/12 1/03 at 101 BBB 445,621
200,000 Phoenix General Obligation,
6.500%, 7/01/11 (Pre-
refunded to 7/01/99) 7/99 at 102 AA+ 212,178
250,000 Phoenix Civic Improvement
Corporation, Airport
Terminal Excise Tax,
Alternative Minimum Tax,
7.800%, 7/01/11 7/97 at 102 AA+ 265,400
295,000 Phoenix Housing Finance
Corporation,
FHA-Insured 6.500%, 7/01/24 7/02 at 101 Aaa 290,230
Phoenix Civic Improvement
Corporation, Wastewater
System:
400,000 6.125%, 7/01/23 (Pre-refunded
to 7/01/03) 7/03 at 102 AAA 420,044
500,000 4.750%, 7/01/23 7/04 at 102 A1 380,405
200,000 Phoenix Industrial
Development Authority,
FHA-Insured (Chris Ridge
Village Project),
6.750%, 11/01/12 11/02 at 101 AAA 203,976
300,000 Phoenix Junior Lien Street
and Highway,
6.250%, 7/01/11 7/02 at 102 A+ 301,461
500,000 Phoenix Industrial
Development Authority, GNMA
(Meadow Glen Apartments),
5.800%, 8/20/28 2/03 at 102 Aaa 434,245
Phoenix Industrial
Development Authority
(John C. Lincoln Hospital
and Health Center):
500,000 6.000%, 12/01/10 12/03 at 102 BBB+ 446,395
500,000 6.000%, 12/01/14 12/03 at 102 BBB+ 434,725
290,000 Pima County Industrial
Development Authority
(Tucson Electric), 7.250%,
7/15/10 1/02 at 103 Aaa 310,451
300,000 Pima County Unified School
District No. 1, General
Obligation, 6.100%, 7/01/12 7/02 at 102 Aaa 302,115
Pinal County Certificates of
Participation:
300,000 6.375%, 6/01/06 6/02 at 100 AA 306,843
200,000 6.500%, 6/01/09 6/02 at 100 AA 203,614
Salt River Project,
Agricultural Improvement and
Power District:
300,000 5.750%, 1/01/19 1/02 at 100 AA 277,989
280,000 5.750%, 1/01/20 1/96 at 100 AA 258,115
225,000 Tempe General Obligation,
6.000%, 7/01/08 7/02 at 101 AA+ 227,354
500,000 Tempe Industrial Development
Authority,
Multi-Family Housing, FHA-
Insured (Quadrangles Village
Apartments),
6.250%, 6/01/26 6/03 at 102 AAA 464,475
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
ARIZONA--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 600,000 Tempe Union High School District
No. 213, General Obligation,
6.000%, 7/01/12 7/04 at 101 Aaa $ 598,674
500,000 Tucson General Obligation, 6.250%,
7/01/18 7/04 at 101 Aaa 506,070
575,000 Tucson Airport Authority, 5.700%,
6/01/13 6/03 at 102 Aaa 545,520
250,000 Tucson Local Business Development
Finance Corporation, 6.250%,
7/01/12 7/02 at 102 Aaa 253,352
300,000 University of Arizona, 6.250%,
6/01/11 6/02 at 102 AA 304,625
335,000 Yavapai County Community College
District, 6.000%, 7/01/12 7/03 at 101 A- 323,753
675,000 Yuma County Union High School
District No. 70, General
Obligation, 5.700%, 7/01/06 7/02 at 101 Aaa 668,823
- ------------------------------------------------------------------------------------
$17,540,000 Total Investments - (cost
$17,484,124) - 97.3% 17,235,429
- ------------------------------------------------------------------------------------
- -------------------
----------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 1.1%
$ 200,000 Maricopa County Pollution Control
Corporation (Arizona Public
Service Company Palo Verde
Project), Variable Rate Demand
Bonds,
- ----------- 4.000%, 5/01/29+ P-1 200,000
- ------------------------------------------------------------------------------------
----------------
Other Assets Less Liabilities -
1.6% 285,984
- ------------------------------------------------------------------------------------
Net Assets - 100% $17,721,413
</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 26 $ 9,144,475 53%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 12 3,357,028 20
PORTFOLIO OF A+ A1 2 681,866 4
INVESTMENTS A, A- A, A2, A3 4 1,419,423 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 5 2,251,858 13
TEMPORARY Non-rated Non-rated 1 380,779 2
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 50 $17,235,429 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
18
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
FLORIDA
<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 $ 308,547
1,705,000 Florida General Obligation,
5.125%, 7/01/17 7/04 at 101 AA 1,452,472
750,000 Florida Housing Finance
Agency, 6.400%, 6/01/24 6/02 at 103 AAA 734,370
65,000 Florida Housing Finance
Agency, Home Ownership
(GNMA), Alternative Minimum
Tax,
8.595%, 11/01/18 No Opt. Call AAA 66,950
Florida Municipal Power
Agency:
1,000,000 5.500%, 10/01/12 10/02 at 102 Aaa 925,390
1,000,000 6.250%, 10/01/21 (Pre-
refunded to 10/01/02) 10/02 at 102 Aaa 1,054,990
1,145,000 6.000%, 10/01/27 (Pre-
refunded to 10/01/02) 10/02 at 102 Aaa 1,196,159
Florida State Board of
Education:
1,160,000 7.100%, 6/01/07 No Opt. Call Aaa 1,210,263
360,000 7.250%, 6/01/23 (Pre-refunded
to 6/01/00) 6/00 at 102 Aaa 394,834
1,915,000 7.250%, 6/01/23 6/00 at 102 AA 2,066,094
Florida Turnpike Authority:
650,000 6.350%, 7/01/22 (Pre-refunded
to 7/01/02) 7/02 at 101 Aaa 686,368
350,000 6.350%, 7/01/22 7/02 at 101 Aaa 353,836
400,000 Alachua County Health
Facilities Authority (Shands
Hospital), 5.750%, 12/01/15 12/02 at 100 Aaa 376,392
300,000 Brevard County Educational
Facilities Authority
(Florida Institute of
Technology),
6.875%, 11/01/22 11/02 at 102 BBB+ 296,115
1,000,000 Broward County Health
Facilities Authority
(Holy Cross Hospital),
5.850%, 6/01/12 6/03 at 102 Aaa 964,060
600,000 Broward County Housing
Finance Authority (Lakeside
Apartments), 7.000%, 2/01/25 2/05 at 102 AAA 613,188
200,000 Cape Coral Health Facilities
Authority (Cape Coral
Medical Center), 8.125%,
11/01/08 No Opt. Call Aaa 210,046
1,000,000 Dade County (Miami
International Airport),
Alternative Minimum Tax,
6.550%, 10/01/13 10/02 at 102 Aaa 1,027,980
115,000 Dade County Housing Finance
Authority, Single Family
Mortgage, Alternative
Minimum Tax, 7.250%, 9/01/23 3/01 at 102 Aaa 119,033
2,480,000 Dade County (Jackson Memorial
Hospital), 4.875%, 6/01/15 6/03 at 102 Aaa 2,055,449
480,000 Dade County Special Housing
(City of Miami
Developments), 12.000%,
7/01/12 7/00 at 100 A 494,270
255,000 Dade County (Courthouse
Center),
6.300%, 4/01/14 4/04 at 102 A 246,450
250,000 Dade County Health Facilities
Authority
(South Miami Hospital),
7.000%, 10/01/18 10/99 at 102 Aaa 261,450
300,000 Dade County Health Facilities
Authority
(North Shore Medical
Center), 6.500%, 8/15/15 8/02 at 102 Aaa 306,396
1,000,000 Davie Water and Sewer System,
6.250%, 10/01/17 10/02 at 102 Aaa 1,006,370
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
FLORIDA--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 600,000 Daytona Beach Water and
Sewer System,
6.000%, 11/15/14 11/02 at 102 Aaa $ 589,038
1,600,000 Dunedin (Mease Health
Care), 5.375%, 11/15/13 11/03 at 101 Aaa 1,449,584
400,000 Escambia County Housing
Finance Authority,
Single Family Mortgage,
Alternative Minimum
Tax, 6.900%, 4/01/20 10/02 at 102 Aaa 405,908
500,000 Escambia County School
Board, Certificates of
Participation, 6.375%,
2/01/12 2/02 at 100 Aaa 509,730
500,000 Gainesville Utility
System, 6.500%,
10/01/22 10/02 at 102 AA 508,910
1,500,000 Hillsborough County
Aviation Authority
(Tampa International
Airport), Alternative
Minimum Tax, 5.375%,
10/01/23 10/03 at 102 Aaa 1,278,300
1,200,000 Hillsborough County
Industrial Development
Authority, Pollution
Control (Tampa
Electric), 8.000%,
5/01/22 5/02 at 103 Aa2 1,368,048
250,000 Hillsborough County
Capital Improvement
(Museum of Science and
Industry),
6.400%, 1/01/12 1/00 at 102 A 250,810
500,000 Hillsborough County
School District,
General Obligation,
8.875%, 9/01/04
(Pre-refunded to
9/01/95) 9/95 at 102 AAA 520,415
250,000 Hollywood Water and
Sewer System,
6.875%, 10/01/21 (Pre-
refunded to 10/01/01) 10/01 at 102 Aaa 273,600
Jacksonville Electric
Authority:
470,000 7.500%, 10/01/02 10/97 at 101 1/2 Aa1 505,494
500,000 5.500%, 10/01/14 10/02 at 101 Aa1 457,310
1,000,000 5.250%, 10/01/21 10/02 at 101 Aa1 853,710
1,000,000 5.250%, 10/01/28 10/02 at 101 Aa1 846,580
250,000 Jacksonville Excise
Taxes, 6.500%, 10/01/13 10/02 at 102 Aaa 257,195
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 672,736
375,000 Jacksonville Water and
Sewer (Jacksonville
Suburban Utilities
Corporation),
Alternative Minimum
Tax, 6.750%, 6/01/22 6/02 at 102 A2 381,701
250,000 Jupiter Water System,
6.250%, 10/01/18 10/01 at 102 Aaa 250,635
700,000 Lakeland (Lakeland
Regional Medical
Center),
6.125%, 11/15/22 11/02 at 102 Aaa 690,263
250,000 North Broward Hospital
District, 6.250%,
1/01/12 1/02 at 102 Aaa 253,218
Orange County Sales Tax:
355,000 6.125%, 1/01/19 1/00 at 102 Aaa 352,114
145,000 6.125%, 1/01/19 No Opt. Call Aaa 151,582
1,500,000 5.375%, 1/01/24 1/03 at 102 Aaa 1,309,155
375,000 Orange County Tourist
Development,
6.500%, 10/01/19 10/02 at 102 Aaa 384,964
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 500,000 Orange County Water
Utilities System,
6.250%, 10/01/17 4/02 at 102 Aaa $ 501,675
1,000,000 Orange County Housing
Finance Authority (Ashley
Point Apartments),
Alternative Minimum Tax,
7.100%, 10/01/24 10/01 at 101 BBB+ 1,002,780
Orlando Utilities
Commission:
500,000 8.500%, 10/01/09 (Pre-
refunded to 10/01/95) 10/95 at 102 Aaa 520,645
750,000 6.750%, 10/01/17 No Opt. Call AA- 808,395
1,250,000 6.000%, 10/01/20 10/02 at 102 AA- 1,203,988
1,000,000 5.500%, 10/01/20 10/99 at 100 AA- 891,790
Orlando and Orange County
Expressway Authority:
1,000,000 5.250%, 7/01/14 7/03 at 102 Aaa 885,300
1,000,000 5.500%, 7/01/18 7/03 at 102 Aaa 898,160
1,000,000 5.125%, 7/01/20 7/03 at 102 Aaa 843,650
425,000 Palm Beach County General
Obligation,
4.600%, 7/01/07 No Opt. Call AA 364,370
Palm Beach County Criminal
Justice Facilities:
1,000,000 5.300%, 6/01/05 No Opt. Call Aaa 960,700
1,000,000 5.375%, 6/01/10 No Opt. Call Aaa 924,600
445,000 Pasco County Guaranteed
Entitlement,
6.000%, 12/01/11 12/02 at 102 Aaa 438,930
1,000,000 Pensacola Health Facilities
Authority (Daughters of
Charity - Sacred Heart),
5.250%, 1/01/11 1/03 at 102 Aa 871,720
2,000,000 Pinellas County Health
Facilities Authority
(Morton Plant Health
System), 5.500%, 11/15/18 11/03 at 102 Aaa 1,797,080
1,000,000 Reedy Creek Improvement
District,
5.000%, 10/01/14 4/04 at 101 Aaa 855,490
565,000 St. Lucie County Solid Waste
System,
6.000%, 9/01/15 (Pre-
refunded to 9/01/99) 9/99 at 100 Aaa 580,645
500,000 St. Petersburg Health
Facilities Authority
(St. Joseph's Hospital
Inc.), 7.000%, 12/01/15 12/01 at 102 Aaa 526,485
1,000,000 Sarasota Water and Sewer
System,
7.625%, 10/01/08 (Pre-
refunded to 10/01/96) 10/96 at 102 Aaa 1,058,140
500,000 Tampa Water and Sewer
System,
6.000%, 10/01/17 10/02 at 101 Aaa 491,439
1,000,000 Turtle Run Community
Development District,
6.400%, 5/01/11 5/03 at 100 A1 1,013,279
2,000,000 West Palm Beach Utility
System,
5.400%, 10/01/23 10/02 at 101 Aaa 1,744,539
- -------------------------------------------------------------------------------
$54,290,000 Total Investments - (cost
$53,488,907) - 96.5% 52,132,272
-------------------------------------------------------------------------
- -------------------
-----------
Other Assets Less
Liabilities - 3.5% 1,875,711
- -------------------------------------------------------------------------------
Net Assets - 100% $54,007,983
- -------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
PORTFOLIO OF INVESTMENTS
FLORIDA--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 50 $35,939,439 69%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 14 12,507,428 24
PORTFOLIO OF A+ A1 1 1,013,279 2
INVESTMENTS: A, A- A, A2, A3 4 1,373,231 3
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 1,298,895 2
- -------------------------------------------------------------------------------------
TOTAL 71 $52,132,272 100%
- -------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
See accompanying notes to financial statements.
22
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
MARYLAND
<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 $ 1,555,365
Maryland Community
Development Administration,
Multi-Family Housing:
700,000 6.700%, 5/15/27 5/02 at 102 Aa 694,414
500,000 6.750%, 5/15/33 5/02 at 102 Aa 500,610
2,000,000 Maryland General Obligation,
4.600%, 7/15/06 7/03 at 101 Aaa 1,758,220
Maryland Health and Higher
Educational Facilities
Authority (Doctors'
Community Hospital):
1,000,000 5.750%, 7/01/13 7/03 at 102 BBB- 835,440
1,005,000 8.750%, 7/01/22 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 1,171,629
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 1,531,278
500,000 6.750%, 7/01/23 (Pre-refunded
to 7/01/00) 7/00 at 102 Aaa 537,085
1,000,000 Maryland Health and Higher
Educational Facilities
Authority (Greater Baltimore
Medical Center), 6.000%,
7/01/21 7/01 at 100 A1 883,530
1,000,000 Maryland Health and Higher
Educational Facilities
Authority (Mercy Medical
Center),
5.500%, 7/01/22 7/03 at 102 Aaa 875,020
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 542,635
1,760,000 Maryland Stadium Authority,
5.875%, 12/15/12 12/04 at 102 Aaa 1,693,050
Maryland Stadium Authority,
Sports Facility, Alternative
Minimum Tax:
500,000 7.375%, 12/15/04 12/99 at 102 AA- 535,680
500,000 7.500%, 12/15/10 12/99 at 102 AA- 530,550
3,500,000 Maryland Transportation
Authority
(Baltimore/Washington
International Airport),
Alternative Minimum Tax,
6.400%, 7/01/19 7/04 at 102 Aaa 3,495,450
1,000,000 Maryland Transportation
Authority,
5.750%, 7/01/15 7/02 at 100 A1 921,100
600,000 Baltimore General Obligation,
6.500%, 10/15/12 (Pre-
refunded to 10/15/02) 10/02 at 100 Aaa 634,890
1,000,000 Baltimore GNMA (Tindeco Wharf
Apartments Project), 6.700%,
12/20/28 12/02 at 102 AAA 986,720
1,500,000 Baltimore Port Facilities
(Consolidated Coal Sales
Company), 6.500%, 10/01/11 4/02 at 103 Aa2 1,518,735
750,000 Baltimore Wastewater Project,
6.500%, 7/01/20 (Pre-
refunded to 7/01/00) 7/00 at 100 Aaa 786,465
930,000 Baltimore Water System,
6.500%, 7/01/20
(Pre-refunded to 7/01/00) 7/00 at 100 Aaa 975,217
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
MARYLAND--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,250,000 Frederick County General
Obligation,
5.750%, 7/01/16 7/02 at 102 AA- $ 1,147,738
1,000,000 Howard County, (Howard
Hills Townhouse
Project--FHA Insured),
6.400%, 7/01/24 7/02 at 102 Aaa 948,110
2,000,000 Howard County Multi-Family
(Chase Glen Project),
7.000%, 7/01/24
(Mandatory put 7/01/04) 7/02 at 104 N/R 2,027,600
700,000 Maryland National Capital
Park and Planning
Commission, 6.125%,
7/01/10 7/02 at 102 AA 706,678
Montgomery County Housing
Opportunities Commission,
Single-Family:
450,000 7.250%, 7/01/13 7/96 at 103 Aa 461,876
1,615,000 6.600%, 7/01/14 7/04 at 102 Aa 1,613,127
2,100,000 Montgomery County, Solid
Waste Resource Recovery
Project, 5.875%, 6/01/13 6/03 at 102 Aaa 1,992,627
1,500,000 Morgan State University,
6.100%, 7/01/20 No Opt. Call Aaa 1,460,265
900,000 Prince George's County
(Maryland Local
Government Insurance
Trust), 6.050%, 8/01/12 8/02 at 102 AA- 881,946
500,000 Prince George's County
General Obligation,
5.000%, 1/15/09 1/02 at 102 AA- 441,920
600,000 Prince George's County
(Dimensions Health
Corporation), 6.700%,
7/01/97 No Opt. Call A 613,596
1,550,000 Prince George's County
Housing Authority,
(New Keystone
Apartments--FHA Insured),
6.800%, 7/01/25 1/02 at 102 Aaa 1,570,522
1,500,000 Prince George's County
Pollution Control
(Potomac Electric
Project), 6.375%, 1/15/23 1/03 at 102 A+ 1,483,530
1,000,000 University of Maryland,
5.000%, 10/01/11 10/03 at 101 AA+ 848,600
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 540,655
1,750,000 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/01/17 7/98 at 102 A 1,899,677
2,000,000 Puerto Rico Highway and
Transportation Authority,
5.250% 7/01/21 7/03 at 101 1/2 A 1,653,600
Puerto Rico Electric Power
Authority:
315,000 7.125%, 7/01/14 (Pre-
refunded to 7/01/99) 7/99 at 101 1/2 AAA 342,814
185,000 7.125%, 7/01/14 7/99 at 101 1/2 A- 191,670
- -------------------------------------------------------------------------------
$44,960,000 Total Investments - (cost
$44,662,008) - 96.9% 43,789,634
- -------------------------------------------------------------------------------
- -------------------
-----------
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -----------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.2%
$1,000,000 Maryland Energy Financing
Administration (Baltimore Ferst
Project), Variable Rate Demand
Bonds, Alternative Minimum Tax,
4.200%, 7/01/11+ VMIG-1 $ 1,000,000
- -------------------
- -----------------------------------------------------------------------------------
---------------
Other Assets Less Liabilities -
0.9% 416,142
- -----------------------------------------------------------------------------------
Net Assets - 100% $45,205,776
</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 18 $21,842,652 50%
RATINGS** AA+, AA, Aa1, Aa, Aa2, Aa3
AA- 13 11,437,239 26
PORTFOLIO OF A+ A1 3 3,288,160 8
INVESTMENTS A, A- A, A2, A3 4 4,358,543 10
(EXCLUDING BBB+, BBB, Baa1, Baa, Baa2, Baa3
BBB- 1 835,440 2
TEMPORARY Non-Rated Non-Rated 1 2,027,600 4
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 40 $43,789,634 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
25
<PAGE>
PORTFOLIO OF INVESTMENTS
MICHIGAN
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 900,000 Michigan Comprehensive
Transportation,
5.750%, 5/15/11 5/02 at 100 AA- $ 854,316
200,000 Michigan Hospital Finance
Authority
(Oakwood Hospital),
7.200%, 11/01/15
(Pre-refunded to 8/01/00) 8/00 at 102 Aaa 219,116
Michigan Housing
Development Authority,
Single Family Mortgage:
1,000,000 6.800%, 12/01/16 (WI) 6/05 at 102 AA+ 1,007,340
565,000 6.875%, 6/01/23 6/02 at 102 AA 570,537
Michigan Housing
Development Authority,
Rental Housing:
500,000 6.400%, 4/01/05 10/02 at 102 A+ 498,465
300,000 6.600%, 4/01/12 10/02 at 102 A+ 300,174
500,000 6.650%, 4/01/23 10/02 at 102 A+ 489,355
Michigan Municipal Bond
Authority:
250,000 4.750%, 12/01/09 12/01 at 100 Aaa 215,148
555,000 6.600%, 10/01/18 10/02 at 102 AA 561,249
950,000 Michigan Municipal Bond
Authority, State
Revolving Fund, 7.000%,
10/01/04 No Opt. Call AA 1,035,548
1,000,000 Michigan Public Power
Agency (Belle River
Project), 5.250%, 1/01/18 1/03 at 102 AA- 848,870
Michigan State Hospital
Finance Authority
(The Detroit Medical
Center):
860,000 5.000%, 8/15/02 No Opt. Call A- 776,425
460,000 8.125%, 8/15/08 (Pre-
refunded to 8/15/98) 8/98 at 102 Aaa 507,490
40,000 8.125%, 8/15/08 8/98 at 102 A- 43,912
465,000 Michigan State Hospital
Finance Authority
(Harper Grace and Huron
Valley Hospitals),
10.000%, 10/01/16 10/95 at 102 A- 489,185
1,000,000 Michigan State Hospital
Finance Authority
(Daughters of Charity
Health System),
7.000%, 11/01/21 11/01 at 102 Aa 1,025,450
500,000 Michigan State Hospital
Finance Authority (Mid-
Michigan Obligated
Group), 6.900%, 12/01/24 12/02 at 102 A 500,815
1,050,000 Michigan State Trunk Line,
5.500%, 10/01/21 10/02 at 100 AA- 920,084
900,000 Michigan State University,
6.250%, 8/15/15 8/02 at 101 AA- 885,663
400,000 Bay County General
Obligation, West Side
Regional Sewage Disposal
System,
6.400%, 5/01/02 5/95 at 103 A 408,632
250,000 Capital Region Airport
Authority, Alternative
Minimum Tax, 6.700%,
7/01/21 7/02 at 102 Aaa 254,340
300,000 Chippewa Valley Schools,
General Obligation,
7.000%, 5/01/12 (Pre-
refunded to 5/01/01) 5/01 at 102 AA 326,601
500,000 Clarkston Community
Schools, General
Obligation, 5.900%,
5/01/16 5/03 at 102 AA 468,915
</TABLE>
26
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ---------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Dearborn School District, General Obligation,
6.000%, 5/01/14 5/01 at 102 AA $ 968,850
1,000,000 Detroit Convention Facility (Cobo Hall),
5.250%, 9/30/12 9/03 at 102 A 864,990
1,000,000 Detroit Water Supply System, 4.750%, 7/01/19 7/04 at 102 Aaa 777,060
1,000,000 Dexter Community Schools, General Obligation,
5.000%, 5/01/17 5/03 at 102 AA 808,660
455,000 Grand Rapids Housing Corporation, Multi-Family
Mortgage, 7.375%, 7/15/41 1/04 at 104 AAA 464,300
650,000 Grand Rapids Sanitary Sewer System,
6.000%, 1/01/20 1/00 at 100 AA- 613,932
500,000 Grand Traverse County Hospital Finance
Authority (Munson Healthcare), 6.250%, 7/01/22 7/02 at 102 Aaa 494,790
340,000 Kent County Building Authority,
6.000%, 12/01/08 12/98 at 102 AAA 339,650
1,250,000 Lansing Sewage Disposal System, 5.850%, 5/01/14 5/04 at 102 Aaa 1,188,950
Monroe County Economic Development Corporation,
Pollution Control (The Detroit Edison
Company), Alternative Minimum Tax,
1,000,000 6.350%, 12/01/04 No Opt. Call Aaa 1,027,100
600,000 6.875%, 9/01/22 9/02 at 102 Aaa 617,970
Muskegon Water Supply System:
450,000 4.500%, 5/01/12 5/01 at 101 Baa1 342,005
450,000 4.500%, 5/01/13 5/01 at 101 Baa1 336,915
300,000 Reeths-Puffer Schools, General Obligation,
6.625%, 5/01/12 5/02 at 102 AA 308,196
1,250,000 Rockford Public Schools, General Obligation,
5.875%, 5/01/19 5/02 at 102 Aaa 1,169,562
180,000 Saginaw-Midland Municipal Water Supply
Corporation, 6.875%, 9/01/16 9/04 at 102 A- 184,230
200,000 St. Joseph Hospital Finance Authority (Mercy
Memorial Medical Center), 7.300%, 10/01/00 10/96 at 102 A- 210,520
1,000,000 University of Michigan Student Fee,
5.500%, 4/01/12 4/03 at 102 AA+ 915,720
250,000 Warren Economic Development Corporation, GNMA
(Autumn Woods Project),
6.900%, 12/20/22 3/02 at 101 Aaa 248,138
805,000 Wayne County, Detroit Metropolitan Airport,
Alternative Minimum Tax, 5.400%, 12/01/16 12/03 at 102 Aaa 694,843
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
MICHIGAN--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- ----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,300,000 Western Michigan University,
5.000%, 7/15/21 12/03 at 102 Aaa $ 1,059,382
250,000 Puerto Rico Public Buildings
Authority,
6.875%, 7/01/21 (Pre-refunded to 7/02 at 101
7/01/02) 1/2 A 274,480
- ----------------------------------------------------------------------------------------
$28,675,000 Total Investments - (cost
$27,528,505) - 98.2% 27,117,873
- ----------------------------------------------------------------------------------------
- -------------------
-------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 2.2%
$ 600,000 Michigan State Strategic Fund,
Pollution Control (Consumers Power
Company) Variable Rate Demand
Bonds, 4.100%, 4/15/18+ P-1 600,000
- ----------------------------------------------------------------------------------------
-------------------
Other Assets Less Liabilities -
(0.4)% (102,228)
- ----------------------------------------------------------------------------------------
Net Assets - 100% $27,615,645
</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 15 $ 9,277,839 34%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 16 12,119,931 45
PORTFOLIO OF A+ A1 3 1,287,994 5
INVESTMENTS A, A- A, A2, A3 9 3,753,189 14
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 678,920 2
TEMPORARY
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 45 $27,117,873 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
(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.
28
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
NEW JERSEY
<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 $ 201,870
1,000,000 New Jersey Economic
Development Authority
(Yeshiva K'tana of
Passaic), 8.000%, 9/15/18 No Opt. Call N/R 1,068,710
2,965,000 New Jersey Economic
Development Authority
(Bridgewater Resources,
Inc.), Alternative
Minimum Tax, 8.375%,
11/01/04 No Opt. Call N/R 3,006,658
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 260,808
1,415,000 New Jersey Economic
Development Authority,
Alternative Minimum Tax,
5.300%, 12/01/07 12/03 at 102 Aa1 1,329,506
975,000 New Jersey Educational
Facilities Authority
(Trenton State College),
6.750%, 7/01/08 7/96 at 100 A+ 980,460
835,000 New Jersey Educational
Facilities Authority
(Princeton University),
5.875%, 7/01/11 7/04 at 100 Aaa 824,997
1,150,000 New Jersey Educational
Facilities Authority (New
Jersey Institute of
Technology), 6.000%,
7/01/24 7/04 at 102 Aaa 1,112,947
1,000,000 New Jersey General
Obligation, 5.800%,
2/15/07 No Opt. Call Aa1 1,000,820
1,010,000 New Jersey Health Care
Facilities Financing
Authority (Hackensack
Hospital),
8.750%, 7/01/09 No Opt. Call Aaa 1,164,742
400,000 New Jersey Health Care
Facilities Financing
Authority (Atlantic City
Medical Center), 6.800%,
7/01/05 7/02 at 102 A- 411,868
900,000 New Jersey Health Care
Facilities Financing
Authority (Palisades
Medical Center),
7.500%, 7/01/06 7/02 at 102 Ba 908,361
670,000 New Jersey Health Care
Facilities Financing
Authority (St. Peter's
Medical Center),
5.000%, 7/01/10 7/03 at 102 Aaa 585,438
New Jersey Housing Finance
Agency:
2,365,000 9.000%, 11/01/15 5/95 at 102 1/2 AA+ 2,430,038
1,250,000 10.000%, 4/01/30 4/95 at 102 A1 1,298,125
1,000,000 New Jersey Housing Finance
Agency,
7.250%, 11/01/23 5/95 at 100 A1 999,870
700,000 New Jersey Housing and
Mortgage Finance Agency,
6.950%, 11/01/13 5/02 at 102 A+ 716,660
200,000 New Jersey Sports and
Exposition Authority,
6.500%, 3/01/19 3/02 at 102 Aa 201,893
500,000 New Jersey Transporation
Trust Fund Authority,
6.250%, 12/15/03 No Opt. Call Aa 523,865
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 Baa1 1,000,670
</TABLE>
29
<PAGE>
PORTFOLIO OF INVESTMENTS
NEW JERSEY--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, 7.250%,
12/01/10 12/01 at 102 Baa1 $ 995,200
1,415,000 Delaware River and Bay
Authority,
5.000%, 1/01/17 1/04 at 102 Aaa 1,180,294
595,000 East Windsor Municipal
Utility Authority, 5.000%,
12/01/07 No Opt. Call Aaa 543,217
500,000 Essex County Improvement
Authority,
6.500%, 12/01/12 12/02 at 102 A1 500,300
500,000 Franklin Township General
Obligation,
5.900%, 11/01/08 11/02 at 102 AA- 503,260
500,000 Hillsborough Township School
District,
5.875%, 8/01/11 No Opt. Call AA 485,870
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 405,432
1,605,000 Little Ferry Board of
Education, Certificates of
Participation, 6.300%,
1/15/08 No Opt. Call N/R 1,631,948
1,565,000 Middletown Township General
Obligation, 5.100%, 8/01/06 No Opt. Call AA- 1,439,424
Monroe Township Board of
Education, General
Obligation:
725,000 5.200%, 8/01/11 No Opt. Call Aaa 648,694
825,000 5.200%, 8/01/14 No Opt. Call Aaa 720,572
900,000 Newark General Obligation,
5.500%, 10/01/09 10/03 at 102 Aaa 845,982
500,000 North Bergen Housing
Development Corporation,
FHA-Insured, 7.400%, 9/01/20 9/09 at 100 N/R 513,995
300,000 North Bergen Township General
Obligation, 6.500%, 8/15/12 8/02 at 102 Aaa 310,104
2,350,000 Ocean County Utilities
Authority,
5.000%, 1/01/14 1/97 at 100 Aaa 2,008,005
2,215,000 Passaic County General
Obligation,
5.125%, 9/01/12 No Opt. Call Aaa 1,938,413
Rutgers State University,
775,000 8.000%, 5/01/18 (Pre-refunded
to 5/01/98) 5/98 at 102 Aaa 850,671
Union County Utilities
Authority, Solid Waste
System, Alternative Minimum
Tax:
195,000 7.100%, 6/15/06 6/02 at 102 A- 198,713
1,100,000 7.200%, 6/15/14 6/02 at 102 A- 1,111,044
270,000 6.850%, 6/15/14 6/02 at 102 Aaa 272,754
100,000 University of Medicine and
Dentistry of New Jersey,
6.500%, 12/01/18 12/01 at 102 AA 101,125
300,000 Wanaque Borough Sewerage
Authority,
7.000%, 12/01/21 12/02 at 102 Baa1 303,996
1,000,000 Puerto Rico Aqueduct and
Sewer Authority, 7.875%,
7/01/17 7/98 at 102 A 1,085,530
</TABLE>
30
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL
AMOUNT DESCRIPTION PROVISIONS* RATINGS** MARKET VALUE
- -----------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Puerto Rico Highway Transportation
Authority,
$ 60,000 6.625%, 7/01/18 (Pre-refunded to
7/01/02) 7/02 at 101 1/2 A $ 64,969
1,500,000 Puerto Rico Industrial Medical
Educational and Environmental
Authority (American Home
Products), 5.100%, 12/01/18 12/03 at 103 A2 1,216,125
- -----------------------------------------------------------------------------------------
$40,980,000 Total Investments - (cost
$40,700,878) - 93.3% 39,903,943
- -----------------------------------------------------------------------------------------
- -------------------
-------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES - 3.7%
$ 1,600,000 New Jersey Economic Development
Authority,
Dock Facility (Bayonne/IMTT),
Variable Rate Demand Bonds,
3.900%, 12/01/27+ VMIG-1 1,600,000
- -----------------------------------------------------------------------------------------
Other Assets Less Liabilities -
3.0% 1,283,099
- -----------------------------------------------------------------------------------------
Net Assets - 100% $42,787,042
- -----------------------------------------------------------------------------------------
</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 $13,412,262 34%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 10 8,276,609 21
PORTFOLIO OF A+ A1 6 4,697,285 12
INVESTMENTS A, A- A, A2, A3 6 4,088,249 10
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 2,299,866 6
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 908,361 2
INVESTMENTS): Non-rated Non-rated 4 6,221,311 15
- --------------------------------------------------------------------------------------
TOTAL 45 $39,903,943 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
31
<PAGE>
PORTFOLIO OF INVESTMENTS
PENNSYLVANIA
<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 $ 672,315
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 2,585,200
1,290,000 Pennsylvania General
Obligation,
5.000%, 5/01/03 No Opt. Call AA- 1,214,096
425,000 Pennsylvania Higher
Educational Facilities
Authority (Temple
University),
7.100%, 10/01/00 10/96 at 102 A 441,197
Pennsylvania Higher
Educational Facilities
Authority (Thomas Jefferson
University):
350,000 6.625%, 8/15/09 8/02 at 102 Aa 359,818
750,000 6.000%, 7/01/19 7/99 at 102 Aa 715,358
440,000 Pennsylvania Housing Finance
Agency, Alternative Minimum
Tax, 8.150%, 4/01/24 4/00 at 102 AA 459,158
600,000 Pennsylvania Housing Finance
Agency, Single Family
Mortgage, 7.150%, 4/01/15 10/01 at 102 AA 624,246
1,390,000 Pennsylvania
Intergovernmental
Cooperative Authority (City
of Philadelphia Funding
Program), 7.000%, 6/15/05 No Opt. Call Aaa 1,461,766
2,205,000 Pennsylvania State
University, 5.500%, 8/15/16 8/02 at 102 AA- 1,984,169
2,300,000 Pennsylvania Turnpike
Commission,
5.500%, 12/01/17 12/02 at 102 Aaa 2,053,072
Allegheny County (Pittsburgh
International Airport),
Alternative Minimum Tax:
1,000,000 7.000%, 1/01/18 1/00 at 102 Aaa 1,015,230
900,000 5.625%, 1/01/19 1/03 at 102 Aaa 789,264
1,300,000 Allegheny County Hospital
Development Authority
(Allegheny Valley
Hospital),
7.000%, 8/01/15 No Opt. Call A 1,327,079
1,500,000 Allegheny County Hospital
Development Authority
(Rehabilitation Institute
of Pittsburgh), 7.000%,
6/01/22 6/02 at 102 BBB 1,429,830
2,000,000 Allegheny County Residential
Finance Authority, Single
Family Mortgage, (GNMA),
Alternative Minimum Tax,
0.000%, 5/01/27 No Opt. Call Aaa 201,000
2,000,000 Armstrong County Hospital
Authority (Canterbury Place
Project), 6.500%, 12/01/21 12/01 at 100 Aaa 2,009,600
1,000,000 Bucks County Community
College Authority, 6.250%,
6/15/14 6/02 at 100 AA 998,790
2,750,000 Central Bucks School
District, General
Obligation, 5.400%, 5/15/14 5/04 at 100 Aaa 2,475,605
1,500,000 Chester County General
Obligation,
5.650%, 12/15/11 12/03 at 100 Aa 1,408,335
1,300,000 Delaware County Authority
(Crozer-Chester Medical
Center),
5.300%, 12/15/20 12/03 at 102 Aaa 1,100,034
</TABLE>
32
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 800,000 Greater Lebanon Refuse Authority, Solid Waste,
7.000%, 11/15/04 11/02 at 100 A- $ 810,504
1,470,000 Lawrence County General Obligation,
5.000%, 8/01/18 8/04 at 100 Aaa 1,204,694
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 1,564,845
950,000 7.125%, 12/01/22 12/02 at 102 Baa3 939,094
300,000 Montgomery County Higher Educational and Health
Authority (Abington Memorial Hospital),
6.000%, 6/01/22 6/03 at 102 Aaa 283,830
1,860,000 Norristown Municipal Waste Authority,
5.125%, 11/15/23 11/03 at 102 Aaa 1,530,817
1,800,000 Northampton County Higher Education Authority
(Lehigh University), 6.900%, 10/15/06 10/01 at 102 Aaa 1,929,816
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 857,610
2,630,000 Penn Hills General Obligation, 0.000%, 12/01/16 No Opt. Call Aaa 639,826
350,000 Philadelphia Authority for Industrial
Development (National Board of Medical
Examiners),
6.750%, 5/01/12 5/02 at 102 A+ 356,692
2,000,000 Philadelphia Gas Works, 6.375%, 7/01/14 7/03 at 102 Aaa 2,020,300
3,000,000 Philadelphia Hospital and Higher Educational
Facilities Authority
(The Children's Hospital of Philadelphia),
5.000%, 2/15/21 2/03 at 102 AA 2,351,070
Pittsburgh Urban Redevelopment Authority,
Alternative Minimum Tax:
1,100,000 6.625%, 4/01/22 4/04 at 102 A 1,060,356
750,000 6.800%, 10/01/25 4/03 at 102 A1 735,705
500,000 St. Mary's Hospital Authority (Franciscan
Health System/St. Mary of Langhorne), 6.500%,
7/01/12 7/02 at 102 Aaa 509,830
230,000 Sayre Health Care Facilities Authority (Guthrie
Healthcare System), 7.100%, 3/01/17 3/01 at 102 Aaa 241,201
2,250,000 University of Pittsburgh, 6.125%, 6/01/21 6/02 at 102 Aaa 2,193,818
350,000 Washington County Hospital Authority
(Monongahela Valley Hospital),
6.750%, 12/01/08 4/02 at 102 A 352,702
1,000,000 Washington County Hospital Authority
(The Washington Hospital), 5.625%, 7/01/23 7/03 at 102 Aaa 891,900
935,000 West View Municipal Authority, 9.500%, 11/15/14 No Opt. Call Aaa 1,220,427
600,000 Wilkes-Barre General Municipal Authority
(College Misericordia), Alternative Minimum
Tax, 7.750%, 12/01/12 12/00 at 100 N/R 630,642
- -------------------------------------------------------------------------------------------------
$53,625,000 Total Investments - (cost $48,680,853) - 89.1% 47,650,841
</TABLE>
- ----------- -----------
33
<PAGE>
PORTFOLIO OF INVESTMENTS
PENNSYLVANIA--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%
$ 1,000,000 Allegheny County Hospital
Development Authority
(Presbyterian-University
Health System), Variable
Rate Demand Bonds, 3.600%,
3/01/18+ VMIG-1 $ 1,000,000
- -----------
- ------------------------------------------------------------------------------
----------
Other Assets Less Liabilities
- 9.0% 4,824,976
- ------------------------------------------------------------------------------
Net Assets - 100% $53,475,817
</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 21 $26,009,190 55%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 10,115,040 21
PORTFOLIO OF A+ A1 2 1,092,397 2
INVESTMENTS A, A- A, A2, A3 5 3,991,838 8
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 3 4,954,124 11
TEMPORARY Non-Rated Non-Rated 2 1,488,252 3
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 42 $47,650,841 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
34
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
VIRGINIA
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 300,000 Virginia College Building
Authority
(Hampton University),
6.500%, 4/01/08 4/02 at 102 A+ $ 309,573
800,000 Virginia College Building
Authority
(Randolph-Macon College),
6.625%, 5/01/13 5/02 at 102 A- 812,872
Virginia College Building
Authority
(The Washington and Lee
University):
1,250,000 5.750%, 1/01/14 1/04 at 102 AA 1,175,863
1,000,000 5.800%, 1/01/24 1/04 at 102 AA 921,350
3,000,000 Virginia General Obligation,
5.000%, 6/01/11 6/03 at 102 Aaa 2,636,070
Virginia Housing Development
Authority:
800,000 6.800%, 11/01/09 5/02 at 102 AA 815,824
650,000 6.850%, 7/01/17 1/00 at 102 Aa 652,425
4,000,000 7.150%, 1/01/33 1/02 at 102 AA+ 4,072,080
1,090,000 Virginia Public Building
Authority,
6.500%, 8/01/11 8/01 at 102 AA 1,114,231
250,000 Virginia Resource Authority,
Solid Waste Disposal,
7.300%, 4/01/15 4/00 at 102 AA 260,700
800,000 Virginia Resource Authority,
Water System, 6.450%,
4/01/13 4/02 at 102 AA 805,952
1,200,000 Virginia Transportation
Board, 6.000%, 5/15/19 5/98 at 102 AA 1,142,508
1,340,000 Virginia Transportation Board
(Northern Virginia
Transportation District),
5.250%, 5/15/19 5/03 at 102 AA 1,126,632
1,000,000 Abingdon General Obligation,
6.250%, 8/01/12 8/02 at 102 A 998,940
1,000,000 Covington-Alleghany County
Industrial Development
Authority (Alleghany
Regional Hospital), 6.625%,
4/01/12 4/02 at 102 A- 980,320
1,460,000 Fairfax County, Industrial
Development Authority (Inova
Health System), 5.000%,
8/15/13 No Opt. Call Aaa 1,228,721
1,495,000 Fairfax County Water
Authority, 6.125%, 1/01/29
(Pre-refunded to 1/01/00) 1/00 at 100 Aaa 1,541,166
2,500,000 Henrico County Water and
Sewer System,
6.250%, 5/01/13 5/02 at 100 A1 2,486,250
1,000,000 Loudoun County Sanitation
Authority, Water and Sewer
System, 6.250%, 1/01/16 1/02 at 102 Aaa 999,930
2,000,000 Loudoun County Industrial
Development Authority (The
George Washington
University), 6.250%, 5/15/22 5/02 at 102 A1 1,933,780
1,500,000 Lynchburg Industrial
Development Authority
(Randolph-Macon Women's
College), 5.875%, 9/01/13 9/03 at 102 A 1,413,465
1,250,000 Nelson County Service
Authority, Water and Sewer
System, 5.500%, 7/01/18 7/03 at 102 Aaa 1,114,350
2,015,000 Newport News General
Obligation, 5.250%, 6/01/10 6/03 at 102 AA- 1,792,343
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS
VIRGINIA--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,500,000 Peninsula Ports Authority
of Virginia (Riverside
Health System),
6.625%, 7/01/18 7/02 at 102 AA- $ 1,493,700
2,500,000 Prince William Couny Park
Authority,
6.875%, 10/15/16 10/04 at 102 A- 2,520,625
1,000,000 Prince William County
Service Authority, Water
and Sewer System,
6.000%, 7/01/29 7/01 at 100 Aaa 955,250
1,350,000 Richmond General
Obligation,
6.250%, 1/15/21 1/01 at 102 AA 1,311,174
1,600,000 Richmond Redevelopment and
Housing Authority, Multi-
Family Mortgage
(Jefferson Village
Associates),
6.500%, 4/01/27 4/03 at 103 AAA 1,549,584
1,000,000 Roanoke County General
Obligation,
6.500%, 6/01/21 (Pre-
refunded to 6/01/01) 6/01 at 102 AA 1,066,400
1,020,000 Roanoke County Water
System, 5.000%, 7/01/21 7/03 at 102 Aaa 833,503
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 1,044,810
Rockingham County
Industrial Development
Authority (Bridgewater
College):
400,000 5.600%, 10/01/06 10/03 at 102 Baa1 405,416
400,000 5.700%, 10/01/07 10/03 at 102 Baa1 388,040
2,750,000 Southeastern Public
Service Authority
(Regional Solid Waste
System), Alternative
Minimum Tax,
6.000%, 7/01/13 7/03 at 102 A- 2,547,848
1,000,000 Southeastern Public
Service Authority
(Regional Solid Waste
System), 4.900%, 7/01/06 No Opt. Call Aaa 904,580
800,000 Upper Occoquan Sewer
Authority Regional
Sewerage System,
6.500%, 7/01/17
(Pre-refunded to 7/01/01) 7/01 at 102 Aaa 853,112
4,000,000 Upper Occoquan Sewer
Authority,
5.000%, 7/01/21 1/04 at 102 Aaa 3,268,640
2,260,000 Virginia Beach Development
Authority (Sentara
Bayside Hospital),
6.300%, 11/01/21 (DD) 11/01 at 102 AA 2,177,804
500,000 Virginia Beach Development
Authority, GNMA (Pembroke
Lake Apartments), 6.125%,
6/20/13 6/04 at 102 AAA 474,365
950,000 Virginia Beach Water and
Sewer System,
6.625%, 2/01/17 (Pre-
refunded to 2/01/02) 2/02 at 102 A1 1,020,376
145,000 Washington County
Industrial Development
Authority (Johnston
Memorial Hospital),
6.750%, 7/01/12 7/02 at 102 A 146,092
2,075,000 Washington D. C. Airports
Authority,
5.250%, 10/01/22 10/03 at 102 Aaa 1,732,189
Puerto Rico Highway
Transportation Authority:
200,000 6.625%, 7/01/18 (Pre-
refunded to 7/01/02) 7/02 at 101 1/2 A 216,564
800,000 6.625%, 7/01/18 7/02 at 101 1/2 A 805,774
- -------------------------------------------------------------------------------
$58,950,000 Total Investments - (cost
$56,778,810) - 97.7% 56,051,191
</TABLE>
- --------------------------------------------------------------------------------
- ----------- -----------
-----------
-----------
-----------
36
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL OPT. CALL MARKET
AMOUNT DESCRIPTION PROVISIONS* RATINGS** VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEMPORARY INVESTMENTS IN
SHORT-TERM MUNICIPAL
SECURITIES - 2.2%
$ 600,000 Henrico County Industrial
Development Health Facility,
Series 1994 (The Hermitage at
Cedarfield), Variable Rate
Demand Bonds, 4.250%,
5/01/24+ VMIG-1 $ 600,000
500,000 Roanoke Industrial Development
Authority (Roanoke Memorial,
Roanoke Valley Community,
Giles Memorial, Bedford
County and Radford
Community), Series 1992A,
Variable Rate Demand
Obligation, 3.850%, 7/01/17+ VMIG-1 500,000
200,000 Industrial Development
Authority of South Hampton
County, Alternative Minimum
Tax, Variable Rate Demand
Bonds, 4.300%, 4/01/15+ Aa-2 200,000
- -------------------------------------------------------------------------------
$ 1,300,000 Total Temporary Investments -
2.2% 1,300,000
- -------------------------------------------------------------------------------
- -------------------
-----------
Other Assets Less Liabilities
- 0.1% 31,685
- -------------------------------------------------------------------------------
Net Assets - 100% $57,382,876
</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 14 $19,136,270 34%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 19,928,986 36
PORTFOLIO OF A+ A1 4 5,749,979 10
INVESTMENTS A, A- A, A2, A3 9 10,442,500 19
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 793,456 1
TEMPORARY
INVESTMENTS):
- --------------------------------------------------------------------------------------
TOTAL 44 $56,051,191 100%
</TABLE>
- --------------------------------------------------------------------------------
* Optional Call Provisions (not covered by the report of independent public
accountants): Dates (month and year) and prices of the earliest optional call
or redemption. There may be other call provisions at varying prices at later
dates.
** Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
(DD) Security purchased on a delayed delivery 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.
37
<PAGE>
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
AZ FL MD MI
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal
securities, at market
value (note 1) $17,235,429 $52,132,272 $43,789,634 $27,117,873
Temporary investments in
short-term municipal
securities,
at market value which
equals cost (note 1) 200,000 -- 1,000,000 600,000
Cash 144,941 1,283,079 209,521 28,095
Receivables:
Interest 186,514 788,751 403,958 414,689
Shares sold 15,678 38,230 7,878 --
Investments sold -- -- -- 584,486
Deferred organization costs
(note 1) 13,783 14,608 13,905 14,009
Other assets 5,147 12,984 5,121 6,030
----------- ----------- ----------- -----------
Total assets 17,801,492 54,269,924 45,430,017 28,765,182
----------- ----------- ----------- -----------
LIABILITIES
Payables:
Investments purchased -- -- -- 1,010,011
Shares reacquired 212 74,188 53,803 11,569
Accrued expenses:
Management fees (note 7) 8,038 24,636 20,732 12,645
Other 29,700 33,478 22,103 34,787
Dividends payable 42,129 129,639 127,603 80,525
----------- ----------- ----------- -----------
Total liabilities 80,079 261,941 224,241 1,149,537
----------- ----------- ----------- -----------
Net assets (note 8) $17,721,413 $54,007,983 $45,205,776 $27,615,645
----------- ----------- ----------- -----------
Class A Shares (note 1)
Net Assets $ 1,124,302 $ 1,392,220 $ 1,605,403 $ 897,465
----------- ----------- ----------- -----------
Shares outstanding 113,248 143,072 167,162 90,918
----------- ----------- ----------- -----------
Net asset value and
redemption price per share $ 9.93 $ 9.73 $ 9.60 $ 9.87
----------- ----------- ----------- -----------
Offering price per share
(net asset value per share
plus
maximum sales charge of
4.50% of offering price) $ 10.40 $ 10.19 $ 10.05 $ 10.34
----------- ----------- ----------- -----------
Class C Shares (note 1)
Net Assets $ 42,862 $ 77,640 $ 859,630 $ 74,661
----------- ----------- ----------- -----------
Shares outstanding 4,356 7,983 89,620 7,577
----------- ----------- ----------- -----------
Net asset value, offering
and redemption price per
share $ 9.84 $ 9.73 $ 9.59 $ 9.85
----------- ----------- ----------- -----------
Class R Shares (note 1)
Net Assets $16,554,249 $52,538,123 $42,740,743 $26,643,519
----------- ----------- ----------- -----------
Shares outstanding 1,679,807 5,390,026 4,448,616 2,697,350
----------- ----------- ----------- -----------
Net asset value and
redemption price per share $ 9.85 $ 9.75 $ 9.61 $ 9.88
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
NJ PA VA
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at
market value (note 1) $39,903,943 $47,650,841 $56,051,191
Temporary investments in short-term
municipal securities,
at market value which equals cost
(note 1) 1,600,000 1,000,000 1,300,000
Cash 705,272 233,155 105,974
Receivables:
Interest 602,406 708,981 704,080
Shares sold 122,309 4,000 75,400
Investments sold -- 4,059,586 1,518,000
Deferred organization costs (note 1) 14,285 15,375 13,198
Other assets 8,438 7,786 3,318
----------- ----------- -----------
Total assets 42,956,653 53,679,724 59,771,161
----------- ----------- -----------
LIABILITIES
Payables:
Investments purchased -- -- 2,181,228
Shares reacquired -- -- 16,743
Accrued expenses:
Management fees (note 7) 19,506 24,378 26,202
Other 20,347 28,939 14,073
Dividends payable 129,758 150,590 150,039
----------- ----------- -----------
Total liabilities 169,611 203,907 2,388,285
----------- ----------- -----------
Net assets (note 8) $42,787,042 $53,475,817 $57,382,876
----------- ----------- -----------
Class A Shares (note 1)
Net Assets $ 2,741,141 $ 1,482,853 $ 2,214,507
----------- ----------- -----------
Shares outstanding 281,659 152,047 226,882
----------- ----------- -----------
Net asset value and redemption price
per share $ 9.73 $ 9.75 $ 9.76
----------- ----------- -----------
Offering price per share (net asset
value per share plus maximum sales
charge of 4.50% of offering price) $ 10.19 $ 10.21 $ 10.22
----------- ----------- -----------
Class C Shares (note 1)
Net Assets $ 463,637 $ 493,574 $ 377,641
----------- ----------- -----------
Shares outstanding 47,733 51,139 38,761
----------- ----------- -----------
Net asset value, offering and
redemption price per share $ 9.71 $ 9.65 $ 9.74
----------- ----------- -----------
Class R Shares (note 1)
Net Assets $39,582,264 $51,499,390 $54,790,728
----------- ----------- -----------
Shares outstanding 4,063,423 5,292,291 5,610,759
----------- ----------- -----------
Net asset value and redemption price
per share $ 9.74 $ 9.73 $ 9.77
----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
STATEMENT OF OPERATIONS
Year Ended January 31, 1995
<TABLE>
<CAPTION>
AZ FL MD MI
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 996,092 $ 2,937,714 $ 2,789,443 $ 1,599,951
---------- ----------- ----------- -----------
Expenses (note 2):
Management fees (note 7) 88,709 270,996 254,482 144,751
12b-1 distribution and
service fees (note 1) 723 920 2,521 504
Shareholders' servicing
agent fees and expenses 15,732 54,587 49,992 33,948
Custodian's fees and
expenses 34,543 34,307 33,122 32,807
Trustees' fees and
expenses (note 7) 3,140 2,373 2,579 1,147
Professional fees 8,415 12,264 18,317 13,680
Shareholders' reports--
printing and mailing
expenses 8,582 25,617 39,706 15,561
Federal and state
registration fees 5,146 5,037 6,214 6,185
Amortization of deferred
organization costs
(note 1) 7,020 7,044 5,872 6,753
Other expenses 832 1,424 2,194 1,014
---------- ----------- ----------- -----------
Total expenses before
expense reimbursement 172,842 414,569 414,999 256,350
Expense reimbursement
from investment advisor
(note 7) (51,152) (44,113) (65,460) (58,458)
---------- ----------- ----------- -----------
Net expenses 121,690 370,456 349,539 197,892
---------- ----------- ----------- -----------
Net investment income 874,402 2,567,258 2,439,904 1,402,059
---------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) FROM
INVESTMENTS
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable
(notes 1 and 5) (127,639) (88,470) (720,598) (138,495)
Net change in unrealized
appreciation or
depreciation of
investments (1,415,009) (4,454,622) (4,017,204) (2,255,350)
---------- ----------- ----------- -----------
Net gain (loss) from
investments (1,542,648) (4,543,092) (4,737,802) (2,393,845)
---------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations $ (668,246) $(1,975,834) $(2,297,898) $ (991,786)
---------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income (note 1) $ 2,328,339 $ 3,091,245 $ 3,379,014
----------- ----------- -----------
Expenses (note 2):
Management fees (note 7) 210,822 275,097 302,011
12b-1 distribution and service fees
(note 1) 2,909 1,993 1,873
Shareholders' servicing agent fees
and expenses 51,556 74,450 53,796
Custodian's fees and expenses 28,218 32,570 33,907
Trustees' fees and expenses (note 7) 1,671 1,175 1,862
Professional fees 10,356 11,543 14,675
Shareholders' reports--printing and
mailing expenses 23,572 47,270 30,665
Federal and state registration fees 7,216 7,851 8,021
Amortization of deferred
organization costs (note 1) 6,922 7,391 6,379
Other expenses 1,414 1,579 1,328
----------- ----------- -----------
Total expenses before expense
reimbursement 344,656 460,919 454,517
Expense reimbursement from
investment advisor (note 7) (54,105) (83,798) (40,815)
----------- ----------- -----------
Net expenses 290,551 377,121 413,702
----------- ----------- -----------
Net investment income 2,037,788 2,714,124 2,965,312
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from
investment transactions, net of
taxes, if applicable (notes 1 and 5) (452,878) (835,288) (110,113)
Net change in unrealized appreciation
or depreciation of investments (2,665,300) (4,232,526) (5,022,831)
----------- ----------- -----------
Net gain (loss) from investments (3,118,178) (5,067,814) (5,132,944)
----------- ----------- -----------
Net increase (decrease) in net assets
from operations $(1,080,390) $(2,353,690) $(2,167,632)
----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AZ FL
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
1/31/95 1/31/94 1/31/95 1/31/94
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 874,402 $ 600,068 $ 2,567,258 $ 1,704,945
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (127,639) 33,150 (88,470) 17,478
Net change in unrealized
appreciation or
depreciation of
investments (1,415,009) 897,739 (4,454,622) 2,494,017
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations (668,246) 1,530,957 (1,975,834) 4,216,440
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (11,579) -- (12,861) --
Class C (786) -- (807) --
Class R (863,461) (584,496) (2,538,376) (1,692,420)
From accumulated net
realized gains from
investment transactions:
Class A -- -- (11) --
Class C -- -- -- --
Class R -- (41,744) (13,228) --
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (875,826) (626,240) (2,565,283) (1,692,420)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sales
of shares:
Class A 1,124,442 -- 1,665,651 --
Class C 51,694 -- 73,100 --
Class R 4,004,198 7,809,237 13,751,923 24,923,984
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 2,269 -- 4,072 --
Class C 509 -- 230 --
Class R 464,469 336,258 1,376,114 843,950
----------- ----------- ----------- -----------
5,647,581 8,145,495 16,871,090 25,767,934
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (30,002) -- (314,814) --
Class C (9,346) -- -- --
Class R (2,482,522) (936,685) (6,261,459) (3,764,665)
----------- ----------- ----------- -----------
(2,521,870) (936,685) (6,576,273) (3,764,665)
----------- ----------- ----------- -----------
Net increase in net
assets derived from
Fund share transactions 3,125,711 7,208,810 10,294,817 22,003,269
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets 1,581,639 8,113,527 5,753,700 24,527,289
Net assets at the
beginning of year 16,139,774 8,026,247 48,254,283 23,726,994
----------- ----------- ----------- -----------
Net assets at the end of
year $17,721,413 $16,139,774 $54,007,983 $48,254,283
----------- ----------- ----------- -----------
Balance of undistributed
net investment income at
end of year $ 16,536 $ 17,960 $ 36,594 $ 21,380
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
MD MI
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
1/31/95 1/31/94 1/31/95 1/31/94
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,439,904 $ 1,895,717 $ 1,402,059 $ 1,004,520
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (720,598) 125,239 (138,495) 7,595
Net change in unrealized
appreciation or
depreciation of
investments (4,017,204) 2,411,915 (2,255,350) 1,437,626
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations (2,297,898) 4,432,871 (991,786) 2,449,741
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (14,257) -- (7,070) --
Class C (9,717) -- (582) --
Class R (2,417,246) (1,865,943) (1,399,025) (992,020)
From accumulated net
realized gains from
investment transactions:
Class A (5) -- (1) --
Class C -- -- -- --
Class R (10,234) (103,043) (7,967) (22,556)
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (2,451,459) (1,968,986) (1,414,645) (1,014,576)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sale of
shares:
Class A 1,562,186 -- 881,646 --
Class C 818,595 -- 73,345 --
Class R 9,116,010 19,337,429 6,369,706 9,838,503
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 5,306 -- 2,560 --
Class C 5,892 -- 338 --
Class R 1,385,256 1,101,658 872,246 595,076
----------- ----------- ----------- -----------
12,893,245 20,439,087 8,199,841 10,433,579
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (2,267) -- (9,411) --
Class C (226) -- -- --
Class R (10,757,200) (3,364,769) (3,253,109) (1,467,617)
----------- ----------- ----------- -----------
(10,759,693) (3,364,769) (3,262,520) (1,467,617)
----------- ----------- ----------- -----------
Net increase in net
assets derived from
Fund share transactions 2,133,552 17,074,318 4,937,321 8,965,962
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets (2,615,805) 19,538,203 2,530,890 10,401,127
Net assets at the
beginning of year 47,821,581 28,283,378 25,084,755 14,683,628
----------- ----------- ----------- -----------
Net assets at the end of
year $45,205,776 $47,821,581 $27,615,645 $25,084,755
----------- ----------- ----------- -----------
Balance of undistributed
net investment income at
end of year $ 28,247 $ 29,563 $ 17,180 $ 21,798
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
NJ PA
- --------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
1/31/95 1/31/94 1/31/95 1/31/94
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 2,037,788 $ 1,289,235 $ 2,714,124 $ 1,828,606
Net realized gain (loss)
from investment
transactions, net of
taxes, if applicable (452,878) 517,054 (835,288) 21,353
Net change in unrealized
appreciation or
depreciation of
investments (2,665,300) 1,519,986 (4,232,526) 2,620,245
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets from
operations (1,080,390) 3,326,275 (2,353,690) 4,470,204
----------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS (note 1)
From undistributed net
investment income:
Class A (35,663) -- (17,517) --
Class C (5,043) -- (5,177) --
Class R (1,973,703) (1,283,971) (2,690,297) (1,816,930)
From accumulated net
realized gains from
investment transactions:
Class A (773) -- -- --
Class C -- -- -- --
Class R (341,737) (190,655) -- (23,816)
----------- ----------- ----------- -----------
Decrease in net assets
from distributions to
shareholders (2,356,919) (1,474,626) (2,712,991) (1,840,746)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS
(note 3)
Net proceeds from sale of
shares
Class A 2,826,031 -- 1,465,445 --
Class C 458,588 -- 480,657 --
Class R 10,783,764 20,199,064 12,882,787 23,774,163
Net asset value of shares
issued to shareholders
due to reinvestment of
distributions from net
investment income and
from net realized gains
from investment
transactions:
Class A 18,788 -- 9,834 --
Class C 2,567 -- 3,155 --
Class R 1,592,197 929,885 1,624,542 1,018,792
----------- ----------- ----------- -----------
15,681,935 21,128,949 16,466,420 24,792,955
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (122,722) -- (27,047) --
Class C (1,205) -- -- --
Class R (5,795,917) (2,726,739) (6,616,545) (2,382,573)
----------- ----------- ----------- -----------
(5,919,844) (2,726,739) (6,643,592) (2,382,573)
----------- ----------- ----------- -----------
Net increase in net
assets derived from
Fund share transactions 9,762,091 18,402,210 9,822,828 22,410,382
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets 6,324,782 20,253,859 4,756,147 25,039,840
Net assets at the
beginning of year 36,462,260 16,208,401 48,719,670 23,679,830
----------- ----------- ----------- -----------
Net assets at the end of
year $42,787,042 $36,462,260 $53,475,817 $48,719,670
----------- ----------- ----------- -----------
Balance of undistributed
net investment income at
end of year $ 34,789 $ 11,410 $ 31,834 $ 30,701
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
VA
- ------------------------------------------------------------------------------
Year Ended Year Ended
1/31/95 1/31/94
- ------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 2,965,312 $ 2,359,981
Net realized gain (loss) from investment
transactions, net of taxes, if applicable (110,113) 56,948
Net change in unrealized appreciation or
depreciation of investments (5,022,831) 3,076,278
----------- -----------
Net increase (decrease) in net assets from
operations (2,167,632) 5,493,207
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (20,902) --
Class C (4,516) --
Class R (2,960,225) (2,340,151)
From accumulated net realized gains from
investment transactions:
Class A -- --
Class C -- --
Class R -- (87,317)
----------- -----------
Decrease in net assets from distributions to
shareholders (2,985,643) (2,427,468)
----------- -----------
FUND SHARE TRANSACTIONS (note 3)
Net proceeds from sale of shares
Class A 2,169,078 --
Class C 359,962 --
Class R 9,464,055 18,263,731
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 6,496 --
Class C 2,776 --
Class R 1,626,894 1,297,642
----------- -----------
13,629,261 19,561,373
----------- -----------
Cost of shares redeemed:
Class A (10,247) --
Class C -- --
Class R (6,855,537) (4,049,967)
----------- -----------
(6,865,784) (4,049,967)
----------- -----------
Net increase in net assets derived from Fund
share transactions 6,763,477 15,511,406
----------- -----------
Net increase (decrease) in net assets 1,610,202 18,577,145
Net assets at the beginning of year 55,772,674 37,195,529
----------- -----------
Net assets at the end of year $57,382,876 $55,772,674
----------- -----------
Balance of undistributed net investment income at
end of year $ 21,811 $ 42,142
----------- -----------
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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 principal amount.
46
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
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 to the amount of its purchase commitments. At
January 31, 1995, the Nuveen Michigan Tax-Free Value Fund and
the Nuveen Virginia Tax-Free Value Fund had purchase
commitments of $1,010,011 and $2,181,228, respectively. There
were no such purchase commitments in any of the other Funds.
Interest Income Interest income is determined on the basis of interest
accrued and discount earned, adjusted for amortization of
premiums or discounts on long-term debt securities when
required for federal income tax purposes.
Dividends and 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.
47
<PAGE>
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.
All income dividends paid during the fiscal year ended
January 31, 1995, have been designated Exempt Interest
Dividends.
Deferred 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.
Organization Costs
Flexible Sales Charge
Effective September 6, 1994, each Fund commenced offering
Program 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.
48
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
Derivative Financial
In October 1994, the Financial Accounting Standards Board
Instruments 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 fiscal year ended January 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.
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
2. EXPENSE ALLOCATION
Expenses of the Funds that are not directly attributable to
any class of shares are prorated among the classes based on
the relative net assets of each class. Expenses directly
attributable to a class of shares are recorded to the
specific class. A breakdown of the class level expenses, as
well as the total fund level expenses, for the year ended
January 31, 1995 are as follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
12b-1 service fees $ 572 $ 744 $ 753 $ 379
Shareholder servicing agent fees and
expenses 406 639 753 522
Shareholder reports-printing and
mailing 444 953 956 1,713
Federal and state registration fees 245 357 330 209
-------- -------- -------- --------
Total class level expenses 1,667 2,693 2,792 2,823
Total fund level expenses 1,990 1,956 1,998 1,137
-------- -------- -------- --------
Total expenses before expense reim-
bursement 3,657 4,649 4,790 3,960
Less: Expense reimbursement from in-
vestment adviser (1,366) (1,676) (1,779) (2,447)
-------- -------- -------- --------
Net expenses--Class A $ 2,291 $ 2,973 $ 3,011 $ 1,513
-------- -------- -------- --------
CLASS C
12b-1 service fees $ 38 $ 44 $ 442 $ 31
12b-1 distribution fees 113 132 1,326 94
Shareholder servicing agent fees and
expenses 123 70 145 77
Shareholder reports-printing and
mailing 98 95 119 111
Federal and state registration fees 26 43 79 34
-------- -------- -------- --------
Total class level expenses 398 384 2,111 347
Total fund level expenses 131 116 1,185 94
-------- -------- -------- --------
Total expenses before expense reim-
bursement 529 500 3,296 441
Less: Expense reimbursement from in-
vestment adviser (266) (193) (190) (222)
-------- -------- -------- --------
Net expenses--Class C $ 263 $ 307 $ 3,106 $ 219
-------- -------- -------- --------
CLASS R
Shareholder servicing agent fees and
expenses $ 15,203 $ 53,878 $ 49,094 $ 33,349
Shareholder reports-printing and
mailing 8,040 24,569 38,631 13,737
Federal and state registration fees 4,875 4,637 5,805 5,942
-------- -------- -------- --------
Total class level expenses 28,118 83,084 93,530 53,028
Total fund level expenses 140,538 326,336 313,383 198,921
-------- -------- -------- --------
Total expenses before expense reim-
bursement 168,656 409,420 406,913 251,949
Less: Expense reimbursement from in-
vestment adviser (49,520) (42,244) (63,491) (55,789)
-------- -------- -------- --------
Net expenses--Class R $119,136 $367,176 $343,422 $196,160
-------- -------- -------- --------
Net expenses--Fund $121,690 $370,456 $349,539 $197,892
-------- -------- -------- --------
</TABLE>
50
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
NJ PA VA
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
CLASS A
12b-1 service fees $ 1,884 $ 894 $ 1,056
Shareholder servicing agent fees and expenses 859 886 720
Shareholder reports-printing and mailing 1,150 1,866 1,629
Federal and state registration fees 828 684 511
-------- -------- --------
Total class level expenses 4,721 4,330 3,916
Total fund level expenses 5,165 2,334 2,716
-------- -------- --------
Total expenses before expense reimbursement 9,886 6,664 6,632
Less: Expense reimbursement from investment
adviser (2,349) (3,096) (2,410)
-------- -------- --------
Net expenses--Class A $ 7,537 $ 3,568 $ 4,222
-------- -------- --------
CLASS C
12b-1 service fees $ 256 $ 275 $ 204
12b-1 distribution fees 769 824 613
Shareholder servicing agent fees and expenses 82 163 169
Shareholder reports-printing and mailing 118 526 223
Federal and state registration fees 123 261 66
-------- -------- --------
Total class level expenses 1,348 2,049 1,275
Total fund level expenses 707 718 525
-------- -------- --------
Total expenses before expense reimbursement 2,055 2,767 1,800
Less: Expense reimbursement from investment
adviser (259) (844) (372)
-------- -------- --------
Net expenses--Class C $ 1,796 $ 1,923 $ 1,428
-------- -------- --------
CLASS R
Shareholder servicing agent fees and expenses $ 50,615 $ 73,401 $ 52,907
Shareholder reports-printing and mailing 22,304 44,878 28,813
Federal and state registration fees 6,265 6,906 7,444
-------- -------- --------
Total class level expenses 79,184 125,185 89,164
Total fund level expenses 253,531 326,303 356,921
-------- -------- --------
Total expenses before expense reimbursement 332,715 451,488 446,085
Less: Expense reimbursement from investment
adviser (51,497) (79,858) (38,033)
-------- -------- --------
Net expenses--Class R $281,218 $371,630 $408,052
-------- -------- --------
Net expenses--Fund $290,551 $377,121 $413,702
-------- -------- --------
</TABLE>
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. FUND SHARES
Transactions in shares were as follows:
<TABLE>
<CAPTION>
AZ FL
- -----------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
1/31/95 1/31/94 1/31/95 1/31/94
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 116,098 -- 175,913 --
Class C 5,260 -- 7,959 --
Class R 401,984 740,910 1,397,272 2,389,702
Shares issued to shareholders
due to reinvestment of
distributions from net
investment income and from
net realized gains from
investment transactions:
Class A 237 -- 435 --
Class C 54 -- 24 --
Class R 48,864 30,628 139,011 81,058
-------- ------- --------- ---------
572,497 771,538 1,720,614 2,470,760
-------- ------- --------- ---------
Shares redeemed:
Class A (3,087) -- (33,276) --
Class C (958) -- -- --
Class R (254,213) (86,785) (639,360) (360,118)
-------- ------- --------- ---------
(258,258) (86,785) (672,636) (360,118)
-------- ------- --------- ---------
Net increase 314,239 684,753 1,047,978 2,110,642
-------- ------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
MD MI
- ------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
1/31/95 1/31/94 1/31/95 1/31/94
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 166,832 -- 91,636 --
Class C 89,009 -- 7,542 --
Class R 921,445 1,868,687 631,960 934,037
Shares issued to shareholders
due to reinvestment of
distributions from net
investment income and from
net realized gains from
investment transactions:
Class A 570 -- 269 --
Class C 635 -- 35 --
Class R 142,445 106,238 87,694 54,703
---------- --------- -------- --------
1,320,936 1,974,925 819,136 988,740
---------- --------- -------- --------
Shares redeemed:
Class A (240) -- (987) --
Class C (24) -- -- --
Class R (1,119,703) (324,722) (332,766) (137,168)
---------- --------- -------- --------
(1,119,967) (324,722) (333,753) (137,168)
---------- --------- -------- --------
Net increase 200,969 1,650,203 485,383 851,572
---------- --------- -------- --------
</TABLE>
52
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
<TABLE>
<CAPTION>
NJ PA
- -------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
1/31/95 1/31/94 1/31/95 1/31/94
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 292,386 -- 153,866 --
Class C 47,588 -- 50,810 --
Class R 1,077,289 1,952,002 1,297,150 2,268,630
Shares issued to shareholders
due to reinvestment of
distributions from net
investment income and from
net realized gains from
investment transactions:
Class A 1,978 -- 1,047 --
Class C 270 -- 329 --
Class R 161,549 85,433 165,879 97,009
--------- --------- --------- ---------
1,581,060 2,037,435 1,669,081 2,365,639
--------- --------- --------- ---------
Shares redeemed:
Class A (12,705) -- (2,866) --
Class C (125) -- -- --
Class R (581,386) (258,472) (676,175) (226,377)
--------- --------- --------- ---------
(594,216) (258,472) (679,041) (226,377)
--------- --------- --------- ---------
Net increase 986,844 1,778,963 990,040 2,139,262
--------- --------- --------- ---------
</TABLE>
<TABLE>
<CAPTION>
VA
- ------------------------------------------------------------------------------
Year Ended Year Ended
1/31/95 1/31/94
- ------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A 227,287 --
Class C 38,465 --
Class R 931,986 1,720,431
Shares issued to shareholders due to reinvestment of
distributions from net investment income and from
net realized gains from investment transactions:
Class A 690 --
Class C 296 --
Class R 165,173 151,119
--------- ---------
1,363,897 1,871,550
--------- ---------
Shares redeemed:
Class A (1,095) --
Class C -- --
Class R (680,380) (386,394)
--------- ---------
(681,475) (386,394)
--------- ---------
Net increase 682,422 1,485,156
--------- ---------
</TABLE>
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
4. DISTRIBUTIONS TO SHAREHOLDERS
On February 9, 1995, the Funds declared dividend
distributions from their ordinary income which were paid on
March 1, 1995, to shareholders of record on February 9, 1995
as follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- --------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share:
Class A $.0440 $.0410 $.0420 $.0430
Class C .0375 .0350 .0360 .0370
Class R .0455 .0430 .0440 .0450
------ ------ ------ ------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------
<S> <C> <C> <C>
Dividend per share:
Class A $.0430 $.0440 $.0430
Class C .0365 .0375 .0370
Class R .0450 .0455 .0450
------ ------ ------
</TABLE>
54
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
5. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in
municipal securities and temporary municipal investments for
the period ended January 31, 1995, were as follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal se-
curities $6,971,348 $10,230,226 $17,083,727 $14,222,155
Temporary municipal invest-
ments 5,700,000 14,200,000 9,100,000 11,500,000
SALES
Investments in municipal se-
curities 4,533,174 1,889,866 15,577,459 8,873,924
Temporary municipal invest-
ments 6,500,000 14,200,000 8,600,000 11,500,000
---------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- --------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $18,632,301 $40,444,211 $27,549,536
Temporary municipal investments 14,950,000 26,000,000 11,100,000
SALES
Investments in municipal securities 11,749,812 35,266,165 21,514,126
Temporary municipal investments 13,350,000 26,400,000 9,800,000
----------- ----------- -----------
</TABLE>
At January 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 following 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:
2002 $127,444 $88,470 $720,598 $138,495
-------- ------- -------- --------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- ----------------------------------------------
<S> <C> <C> <C>
Expiration year:
2002 $452,892 $835,216 $110,093
-------- -------- --------
</TABLE>
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS
6. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized
depreciation of investments at January 31, 1995, were as
follows:
<TABLE>
<CAPTION>
AZ FL MD MI
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 326,654 $ 711,981 $ 472,358 $ 316,449
Depreciation (575,349) (2,068,616) (1,344,732) (727,081)
--------- ----------- ----------- ---------
Net unrealized appreciation
(depreciation) $(248,695) $(1,356,635) $ (872,374) $(410,632)
--------- ----------- ----------- ---------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
Appreciation $ 507,318 $ 506,375 $ 858,776
Depreciation (1,304,253) (1,536,387) (1,586,395)
---------- ----------- -----------
Net unrealized appreciation (deprecia-
tion) $ (796,935) $(1,030,012) $ (727,619)
---------- ----------- -----------
</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
January 31, 1995, the Adviser has 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 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 July 31, 1995.
56
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
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 January 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 $18,081,016 $55,416,494 $46,770,501 $28,147,592
Balance of undistributed
net investment income 16,536 36,594 28,247 17,180
Undistributed net real-
ized gain (loss) from
investment transac-
tions, net of taxes, if
applicable (127,444) (88,470) (720,598) (138,495)
Net unrealized apprecia-
tion (depreciation) of
investments (248,695) (1,356,635) (872,374) (410,632)
----------- ----------- ----------- -----------
Net assets $17,721,413 $54,007,983 $45,205,776 $27,615,645
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid in $44,002,080 $55,309,211 $58,198,777
Balance of undistributed net invest-
ment income 34,789 31,834 21,811
Undistributed net realized gain
(loss) from investment transactions,
net of taxes, if applicable (452,892) (835,216) (110,093)
Net unrealized appreciation (depreci-
ation) of investments (796,935) (1,030,012) (727,619)
----------- ----------- -----------
Net assets $42,787,042 $53,475,817 $57,382,876
----------- ----------- -----------
</TABLE>
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS
9. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At January
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 8% 7% 24% 13%
Health Care Facilities 13 18 11 13
Water/Sewer Facilities 3 6 4 17
Electric Utilities 3 18 1 3
Educational Facilities 11 1 5 10
Pollution Control Facilities 8 3 7 6
Transportation 3 10 10 4
Lease Rental Facilities 10 1 6 --
Other 8 12 8 13
General Obligation Bonds 21 8 10 16
Escrowed Bonds 12 16 14 5
- ----------------------------------------------------
100% 100% 100% 100%
</TABLE>
<TABLE>
<CAPTION>
NJ PA VA
- -----------------------------------------------
<S> <C> <C> <C>
Revenue Bonds:
Housing Facilities 16% 7% 13%
Health Care Facilities 5 19 11
Water/Sewer Facilities 10 3 19
Electric Utilities -- 4 --
Educational Facilities 10 17 13
Pollution Control Facilities 7 13 --
Transportation 3 8 3
Lease Rental Facilities 5 1 --
Other 17 8 17
General Obligation Bonds 22 17 14
Escrowed Bonds 5 3 10
- -----------------------------------------------
100% 100% 100%
</TABLE>
58
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
Certain long-term and intermediate 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 (49% for Arizona, 64% for Florida, 44%
for Maryland, 33% for Michigan, 30% for New Jersey, 54% for
Pennsylvania, and 28% for Virginia). Such insurance, 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.
59
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
-------------------------------------------------------------------
Net 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>
AZ
- --------------------------------------------------------------------------------------------
Class A
9/7/94 to 1/31/95 $10.030 $.203 $(.086) $(.217) $ --
Class C
9/12/94 to 1/31/95 9.940 .169 (.052) (.217) --
Class R
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
9/7/94 to 1/31/95 9.890 .193 (.148) (.202) (.003)
Class C
9/19/94 to 1/31/95 9.720 .152 .021 (.163) --
Class R
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 -- -- -- --
- --------------------------------------------------------------------------------------------
MD
- --------------------------------------------------------------------------------------------
Class A
9/7/94 to 1/31/95 9.840 .198 (.229) (.207) (.002)
Class C
9/16/94 to 1/31/95 9.750 .160 (.153) (.167) --
Class R
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 -- -- -- --
- --------------------------------------------------------------------------------------------
</TABLE>
See notes on page 64.
60
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
-------------------------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value + (in thousands) net assets++ net assets++ turnover rate
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
$ 9.930 1.24% $ 1,124 1.00%* 5.28%* 29%
9.840 1.25 43 1.75* 4.55* 29
9.850 (4.39) 16,554 .75 5.43 29
10.880 14.07 16,140 .75 4.98 11
10.050 10.71 8,026 .75* 4.94* 43
9.525 -- 15 -- -- --
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
9.730 .52 1,392 1.00* 5.08* 4
4
9.730 1.84 78 1.75* 4.35*
9.750 (4.33) 52,538 .75 5.21 4
10.740 13.22 48,254 .75 4.83 3
9.960 9.33 23,727 .75* 4.84* 1
9.525 -- 15 -- -- --
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
9.600 (.26) 1,605 1.00* 5.26* 35
35
9.590 .12 860 1.75* 4.55*
9.610 (4.58) 42,741 .75 5.28 35
10.620 12.71 47,822 .75 4.85 4
9.910 8.96 28,283 .75* 4.96* 20
9.525 -- 15 -- -- --
- -----------------------------------------------------------------------------------------
</TABLE>
61
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
--------------------------------------------------------------------
Net 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>
MI
- ---------------------------------------------------------------------------------------------
Class A
9/7/94 to 1/31/95 $10.090 $.204 $(.209) $(.212) $(.003)
Class C
9/19/94 to 1/31/95 9.910 .161 (.050) (.171) --
Class R
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 -- -- -- --
- ---------------------------------------------------------------------------------------------
NJ
- ---------------------------------------------------------------------------------------------
Class A
9/7/94 to 1/31/95 10.030 .205 (.209) (.210) (.086)
Class C
9/22/94 to 1/31/95 9.770 .159 (.050) (.169) --
Class R
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 -- -- -- --
- ---------------------------------------------------------------------------------------------
</TABLE>
See notes on page 64.
62
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental data
----------------------------------------------------------------
Net
asset Total Return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average Portfolio
period value+ (in thousands) net assets++ net assets++ turnover rate
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
$ 9.870 .02% $ 897 1.00%* 5.30%* 35%
9.850 1.18 75 1.75* 4.53* 35
9.880 (3.98) 26,644 .75 5.33 35
10.860 13.58 25,085 .75 4.99 3
10.060 10.80 14,684 .75* 5.06* 32
9.525 -- 15 -- -- --
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
9.730 .02 2,741 1.00* 5.34* 32
9.710 1.16 464 1.75* 4.62* 32
9.740 (3.27) 39,582 .75 5.32 32
10.710 13.60 36,462 .75 4.84 52
9.960 9.36 16,208 .75* 4.96* 9
9.525 -- 15 -- -- --
- --------------------------------------------------------------------------------------------
</TABLE>
63
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from
investment Less
operations distributions
--------------------------------------------------------------------------------
Net realized
Net asset Net and unrealized Dividends from Distribution
value beginning investment gain (loss) from net investment from
of period income++ investments** income capital gains
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
PA
- ---------------------------------------------------------------------------------------------------------
Class A
9/7/94 to
1/31/95 $ 9.920 $.206 $ (.164) $(.212) $ --
Class C
9/7/94 to
1/31/95 9.920 .176 (.235) (.211) --
Class R
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 -- -- -- --
- ---------------------------------------------------------------------------------------------------------
VA
- ---------------------------------------------------------------------------------------------------------
Class A
9/7/94 to
1/31/95 9.980 .201 (.207) (.214) --
Class C
9/9/94 to
1/31/95 9.950 .171 (.167) (.214) --
Class R
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. For year ended 1/31/93, the information is based on the period
beginning 2/28/92, commencement of operations.
** 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.
64
<PAGE>
NUVEEN TAX-FREE VALUE FUNDS ANNUAL REPORT JANUARY 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios/Supplemental
data
---------------------------------------------------------------------------------
Ratio of net
Net assets Ratio of investment income
Net asset value Total return on end of period expenses to average to average Portfolio
end of period net asset value+ (in thousands) net assets++ net assets++ turnover rate
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
$ 9.750 .49% $ 1,483 1.00%* 5.43%* 74%
9.650 (.53) 494 1.75* 4.67* 74
9.730 (4.94) 51,499 .75 5.43 74
10.810 13.67 48,720 .75 5.01 5
10.010 9.97 23,680 .75* 5.03* 15
9.525 -- 15 -- -- --
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
9.760 .01 2,215 1.00* 5.27* 40
9.740 .10 378 1.75* 4.57* 40
9.770 (3.92) 54,791 .75 5.40 40
10.740 12.78 55,773 .75 5.03 7
10.030 10.04 37,196 .75* 4.92* 12
9.525 -- 15 -- -- --
- -------------------------------------------------------------------------------------------------------------
</TABLE>
65
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Trustees and Shareholders of
Nuveen Multistate Tax-Free Trust:
We have audited the accompanying statements of net assets of
Nuveen Multistate Tax-Free Trust (a Massachusetts business
trust comprising the Arizona, Florida, Maryland, Michigan,
New Jersey, Pennsylvania and Virginia Nuveen Tax-Free Value
Funds), including the portfolios of investments, as of
January 31, 1995, and the related statements of operations
for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended
and the financial highlights for the periods indicated
thereon. These financial statements and financial highlights
are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial
highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of
January 31, 1995, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the net assets of each of the respective funds
constituting the Nuveen Multistate Tax-Free Trust as of
January 31, 1995, the results of their operations for the
year then ended, the changes in their net assets for each of
the two years in the period then ended, and the financial
highlights for the periods indicated in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois,
March 1, 1995
66
<PAGE>
The human bond
[PHOTO OF MR. JOHN NUVEEN IN BOOK]
At John Nuveen & Co. Incorporated, where our tax-free municipal bonds have
helped people live their dreams for nearly 100 years, we still believe our
strongest bond is human.(TM)
For almost a century, John Nuveen & Company has concentrated its resources and
expertise on one area: municipal bonds. We are the oldest and largest investment
banking firm specializing exclusively in municipal securities, and we strive to
be the best.
We maintain a sharp focus on the needs of prudent investors and their
families, offer investments of quality, and then work to make them better by
seeking out opportunity. We hold to a dedicated belief in the importance of
research. And we sustain a commitment to sound financial management through
value investing.
Our hope is that by providing quality investments we may foster opportunity
for our investors. Through careful research, attention to detail, and our
philosophy of managing for long-term value, we hope to provide our shareholders
with the attractive level of income they need to achieve their personal goals
and aspirations.
These are the things that matter most, and it's why we say that, at Nuveen,
our strongest bond is human.
NUVEEN
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
