<PAGE>
Nuveen Tax-Free
Mutual Funds
Dependable tax-free
income for generations
ARIZONA
FLORIDA
MARYLAND
MICHIGAN
NEW JERSEY
PENNSYLVANIA
VIRGINIA
[PHOTO OF COUPLE APPEARS HERE]
SEMIANNUAL REPORT/JULY 31, 1996
<PAGE>
CONTENTS
3 Dear shareholder
5 Answering your questions
8 Fund performance
12 Portfolio of investments
41 Statement of net assets
43 Statement of operations
45 Statement of changes in net assets
49 Notes to financial statements
60 Financial highlights
<PAGE>
Dear
shareholder
[PHOTO OF TIMOTHY R. SCHWERTFEGER]
"Over time, municipal bonds have proven to be a valuable and dependable
component of successful investment programs."
As I begin my duties as the new chairman and chief executive officer of John
Nuveen & Co. Incorporated and chairman of the board of the Nuveen mutual funds,
I am pleased to have this opportunity to report to you on the performance of
your funds. My experience at Nuveen over the past 19 years has shaped my
commitment to maintaining Nuveen's tradition of value investing and prudent
management. We strive to help our shareholders meet their need for tax-free
investment income with a full range of investment choices. Our focus will
continue to be on building shareholder value, providing research-oriented
management, and delivering dependable performance. We believe this focus will
contribute to many more years of investment success for our fund shareholders.
Municipal bonds continue to play an important role in meeting the investment
goals of conservative investors. The performance of the mutual funds covered in
this report demonstrates the ability of quality investments to provide
attractive tax-free income. As of July 31, 1996, the current annual yields on
offering prices for R shares for these funds ranged from 4.80% to 5.27%. To
match these yields, an investor in the 36% federal income tax bracket would have
had to earn at least 7.50% on taxable alternatives. And when state taxes are
taken into account, the power of tax-free investing is even
3
<PAGE>
more apparent. Without question, taxable yields at this level on investments of
comparable quality can be difficult to achieve in today's markets.
With the strength of the bond market last year, all of these funds saw an
increase in net asset value per share, further improving investors' overall
experience for the 12-month period ending July 31, 1996, while producing returns
that continue to be very attractive. Total returns for R Shares, representing
changes in net asset value and reinvestment of all dividends and capital gains,
if any, ranged from 5.74% to 7.42%, equivalent to taxable investments with total
returns of 9.06% to 10.94%.
The years ahead present opportunities as well as challenges for all of us. I
want to thank you for your continued confidence in Nuveen mutual funds, and I
look forward to sharing reports of continued progress with you.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
September 15, 1996
4
<PAGE>
Answering your questions
Tom Spalding, head of Nuveen's portfolio management team, discusses the
investment environment and recent factors affecting the municipal market.
How did the municipal market perform over the last year?
Following the outstanding performance of 1995, the beginning of 1996 saw a
slight price decline in the overall bond market. Municipal bonds, however,
maintained an edge over Treasuries and finished the first half of this year on a
positive note with a rally in bond prices. Over the past 12 months, the
municipal market continued to reward investors with solid returns and
opportunities to purchase bonds with strong credit quality.
What has been Nuveen's investment approach over the past year?
Nuveen continues to pursue its value investing strategy, a disciplined approach
to security selection and portfolio construction designed to deliver above-
market performance by identifying individual bonds with current yields, prices,
credit quality, and future prospects that are exceptionally attractive relative
to other bonds in the market. This approach was rewarded over the past year, as
many of our portfolio
5
<PAGE>
[Photo of Tom Spalding]
Tom Spalding, head of Nuveen's portfolio management team, answers investors'
questions on developments in the municipal market.
holdings were upgraded by the national rating agencies, indicating that our
Research Department's judgments about credit quality were on target.
As opportunity allowed, we purchased bonds at discounts from their par value.
These bonds, which have coupon rates slightly below market levels, are less
likely to be called from our portfolios, assuring more stable yields for our
investors.
What is your outlook for the municipal market?
A look at the current economy shows that inflation continues along at the same
modest pace that it has demonstrated over the past five years. Generally level
producer prices, low wage pressure, and a stable money supply are supportive of
a moderately expanding economy. Despite this ideal combination of slow expansion
and low inflation, investors continue to maintain a watchful eye for any
indication of acceleration or the reappearance of inflation. Some economists
believe that the Federal Reserve Open Market Committee will likely increase
short-term interest rates, which could cause long-term rates to rise and bond
prices to fall.
6
<PAGE>
What are some of the factors affecting dividend stability and changes?
All Nuveen funds are structured to provide an attractive stream of tax-free
income. For many investors, stability of income is another important objective.
To help investors satisfy this objective, we set dividends on Nuveen funds
conservatively, seeking a level that we expect will be sustainable for at least
several months. For many of the funds that have seen dividend reductions over
the past year, the changes were relatively small. Still, dividends ultimately
depend on the overall earnings of each fund, which can be reduced by bond calls,
fluctuations in interest rates, and other portfolio changes.
When the Federal Reserve Board cut rates between July 1995 and January 1996,
long-term municipal bond yields reacted by declining almost 130 basis points
from their levels at the beginning of 1995. Current long-term rates are well
below those at the start of the decade. As older, higher-yielding bonds are
called from some portfolios, they are replaced with the bonds available in the
market today, reducing fund earnings. To reduce the effect of bond calls and
protect investors' current income, Nuveen has taken advantage of opportunities
to invest in non-callable bonds as well as bonds priced at a discount from their
par value.
7
<PAGE>
NUVEEN ARIZONA TAX-FREE VALUE FUND
Arizona
Shareholders enjoyed a year of relatively steady monthly dividends, with a
slight decrease in December.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
8/95 .0450 2/96 .0435
9/95 .0450 3/96 .0435
10/95 .0450 4/96 .0435
11/95 .0450 5/96 .0435
12/95 .0435 6/96 .0435
1/96 .0435 7/96 .0435
- --------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- --------------------------------------------------------
Current SEC yield on R Shares* 5.00%
Taxable-equivalent yield on R Shares** 8.26%
12-mo. total return on R Shares* 6.20%
Taxable-equivalent total return on R Shares** 9.63%
Combined state and federal tax rate 39.5%
- --------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 11.
NUVEEN FLORIDA TAX-FREE VALUE FUND
Florida
Nuveen funds set dividends with stability in mind, seeking a level that can be
sustained over time. The Fund adjusted the monthly dividend in January to a
level in line with the portfolio's earnings rate.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
8/95 .0440 2/96 .0430
9/95 .0440 3/96 .0430
10/95 .0440 4/96 .0430
11/95 .0440 5/96 .0430
12/95 .0440 6/96 .0430
1/96 .0430 7/96 .0430
- --------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- --------------------------------------------------------
Current SEC yield on R Shares* 4.95%
Taxable-equivalent yield on R Shares** 7.73%
12-mo. total return on R Shares* 6.71%
Taxable-equivalent total return on R Shares** 9.68%
Federal tax rate 36.0%
- --------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 11.
8
<PAGE>
NUVEEN MARYLAND TAX-FREE VALUE FUND
Maryland
Nuveen funds set dividends with stability in mind, seeking a level that can be
sustained over time. The Fund adjusted the monthly dividend in January to a
level in line with the portfolio's earnings rate.
12 MONTH DIVIDEND HISTORY--R SHARES
(BAR CHART APPEARS HERE)
<TABLE>
<S> <C> <C> <C>
8/95 .0430 2/96 .0425
9/95 .0430 3/96 .0425
10/95 .0430 4/96 .0425
11/95 .0430 5/96 .0425
12/95 .0430 6/96 .0425
1/96 .0425 7/96 .0425
</TABLE>
<TABLE>
- -------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- -------------------------------------------------------
<S> <C>
Current SEC yield on R Shares* 4.80%
Taxable-equivalent yield on R Shares** 7.87%
12-mo. total return on R Shares* 5.74%
Taxable-equivalent total return on R Shares** 9.06%
Combined state and federal tax rate 39.0%
- -------------------------------------------------------
</TABLE>
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 11.
NUVEEN MICHIGAN TAX-FREE VALUE FUND
Michigan
Shareholders enjoyed a year of relatively steady monthly dividends with a slight
decrease in January. In addition, shareholders received a capital gains
distribution in November.
12 MONTH DIVIDEND HISTORY--R SHARES
(BAR CHART APPEARS HERE)
<TABLE>
<S> <C> <C> <C> <C>
8/95 .0455 2/96 .0445
9/95 .0455 3/96 .0445
10/95 .0455 of which 4/96 .0445
11/95 .0776 (.0321 is Capital Gains) 5/96 .0445
12/95 .0455 6/96 .0445
1/96 .0455 7/96 .0445
</TABLE>
<TABLE>
- -------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- -------------------------------------------------------
<S> <C>
Current SEC yield on R Shares* 5.08%
Taxable-equivalent yield on R Shares** 8.47%
12-mo. total return on R Shares* 6.78%
Taxable-equivalent total return on R Shares** 10.35%
Combined state and federal tax rate 40.0%
- -------------------------------------------------------
</TABLE>
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 11.
9
<PAGE>
NUVEEN NEW JERSEY TAX-FREE VALUE FUND
New Jersey
Nuveen funds set dividends with stability in mind, seeking a level that can be
sustained over time. The Fund adjusted its monthly dividend in December and
March to a level in line with the portfolio's earnings rate.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
8/95 .0475 2/96 .0460
9/95 .0475 3/96 .0440
10/95 .0475 4/96 .0440
11/95 .0475 5/96 .0440
12/95 .0460 6/96 .0440
1/96 .0460 7/96 .0440
- -------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- -------------------------------------------------------
Current SEC yield on R Shares* 5.24%
Taxable-equivalent yield on R Shares** 8.73%
12-mo. total return on R Shares* 6.01%
Taxable-equivalent total return on R Shares** 9.73%
Combined state and federal tax rate 40.0%
- -------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 11.
NUVEEN PENNSYLVANIA TAX-FREE VALUE FUND
Pennsylvania
Shareholders enjoyed a year of relatively steady monthly dividends, with a
dividend decrease in January to bring the dividend in line with current
earnings.
12 MONTH DIVIDEND HISTORY-R SHARES
[BAR CHART APPEARS HERE]
8/95 .0440 2/96 .0430
9/95 .0440 3/96 .0430
10/95 .0440 4/96 .0430
11/95 .0440 5/96 .0430
12/95 .0440 6/96 .0430
1/96 .0430 7/96 .0430
- -------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- -------------------------------------------------------
Current SEC yield on R Shares* 5.27%
Taxable-equivalent yield on R Shares** 8.50%
12-mo. total return on R Shares* 6.69%
Taxable-equivalent total return on R Shares** 9.90%
Combined state and federal tax rate 38.0%
- -------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on page 11.
10
<PAGE>
NUVEEN VIRGINIA TAX-FREE
VALUE FUND
Virginia
Shareholders enjoyed a dividend increase during the past 12 months in addition
to a capital gains distribution in November.
12 MONTH DIVIDEND HISTORY--R SHARES
[BAR CHART APPEARS HERE]
8/95 .0440
9/95 .0440
10/95 .0440
11/95 .0822 (of which .0382 is Capital Gains)
12/95 .0440
1/96 .0450
2/96 .0450
3/96 .0450
4/96 .0450
5/96 .0450
6/96 .0450
7/96 .0450
Capital Gains
- -------------------------------------------------------
FUND HIGHLIGHTS 7/31/96
- -------------------------------------------------------
Current SEC yield on R Shares* 5.12%
Taxable-equivalent yield on R Shares** 8.46%
Total return on R Shares* 7.42%
Taxable-equivalent total return on R Shares** 10.94%
Combined state and federal tax rate 39.5%
- -------------------------------------------------------
The dividend history used in this chart constitutes past performance and does
not necessarily predict the future dividends of the Fund.
See footnotes on this page.
* All shares issued prior to September 6, 1994, have been designated as Class R
Shares, which are currently available only for dividend reinvestment and certain
other restricted situations. Please see Financial Highlights beginning on page
60 for additional data on Class A and C Shares.
**An investor subject to the indicated state and federal income tax rate would
have to receive this return from a fully taxable investment to equal the stated
yield and total return on an after-tax basis.
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
ARIZONA
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Arizona Board of Regents, Arizona State University, System
Revenue Refunding Bonds, Series 1992-A
$ 500,000 5.750%, 7/01/12 AA 7/02 at 101 $ 503,800
500,000 5.500%, 7/01/19 AA 7/02 at 101 478,950
100,000 Arizona Educational Loan Marketing Corporation, Educational
Loan Revenue Bonds, 6.375%, 9/01/05
(Alternative Minimum Tax) Aa 9/02 at 101 104,149
200,000 Arizona Educational Loan Marketing Corporation, 1992
Educational Loan Revenue Bonds, Series B, 7.000%, 3/01/05
(Alternative Minimum Tax) A 3/02 at 101 213,486
300,000 Arizona Health Facilities Authority, Hospital System Revenue
Refunding Bonds (Phoenix Baptist Hospital and Medical
Center, Inc. and Medical Environments, Inc.),
Series 1992, 6.250%, 9/01/11 Aaa 9/03 at 100 314,199
200,000 Arizona Municipal Financing Program, Certificates of
Participation, Series 20, 7.700%, 8/01/10 Aaa No Opt. Call 234,782
500,000 Arizona State University Research Park, Development Refunding
Bonds, Series 1995, 5.000%, 7/01/21 Aaa 7/06 at 100 455,875
250,000 State of Arizona Refunding, Certificates of Participation, Series
1992B, 6.250%, 9/01/10 Aaa 9/02 at 102 263,338
500,000 Student Loan Acquisition Authority of Arizona (A nonprofit
corporation organized pursuant to the laws of the State of
Arizona) Student Loan Revenue Bonds, Series 1994,
6.600%, 5/01/10 (Alternative Minimum Tax) Aa 5/04 at 102 528,460
175,000 Wastewater Management Authority of Arizona, Wastewater
Treatment Financial Assistance Revenue Bonds
Series 1992A, 5.950%, 7/01/12 Aaa 7/02 at 102 180,250
250,000 Wastewater Management Authority of Arizona, Wastewater
Treatment Financial Assistance Revenue Bonds,
Series 1995, 5.750%, 7/01/15 Aaa 7/05 at 102 250,488
700,000 Apache County (Arizona) Public Finance Corporation,
Certificates of Participation, Series 1994,
Arizona Department of Corrections, 5.500%, 5/01/10 A 5/00 at 102 708,519
195,000 Central Arizona Water Conservation District (Central Arizona
Project), Contract Revenue Bonds, Series B 1991,
6.500%, 11/01/11 (Pre-refunded to 5/01/01) AA- 5/01 at 102 213,642
300,000 Sierra Vista Unified School District No. 68 of Cochise County,
Arizona, General Obligation Refunding Bonds,
Series 1992, 7.500%, 7/01/10 Aaa No Opt. Call 362,055
250,000 Sedona-Oak Creek Joint Unified School District No. 9 of
Coconino and Yavapai Counties, Arizona, School Improvement
Bonds, Project of 1992, Series A (1992), 6.750%, 7/01/07 A- 7/01 at 101 269,733
550,000 City of Douglas (Arizona), Municipal Property Corporation,
Municipal Facilities Excise Tax Revenue Bonds,
Series 1995, 5.750%, 7/01/15 Aaa 7/05 at 101 551,001
280,000 Eloy Municipal Property Corporation, Municipal Facilities
Revenue Bonds, Series 1992, 7.000%, 7/01/11 BBB 7/02 at 101 297,665
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 500,000 The Industrial Development Authority of The City of Glendale,
Arizona, Revenue Bonds, Midwestern University, Series
1996A, 6.000%, 5/15/16 (WI) AAA 5/06 at 102 $ 503,095
375,000 Maricopa Rural Road Improvement District of Pinal County,
Arizona, Refunding Bonds, Series 1994, 6.900%, 7/01/05 N/R 7/99 at 101 392,404
300,000 Hospital District No. One, Maricopa County, Arizona, Hospital
Facilities Refunding Bonds, Series B (1992), 6.250%, 6/01/10 Aaa 6/04 at 101 315,024
500,000 The Industrial Development Authority of the County of Maricopa
(Arizona), Insured Health Facility Revenue Bonds (Catholic
Healthcare West), 1993 Series A, 5.625%, 7/01/23 Aaa 7/03 at 102 481,215
500,000 The Industrial Development Authority of the County of
Maricopa (Arizona), Samaritan Health Services, Hospital
System Revenue Refunding Bonds, Series 1990A, 7.000%, 12/01/16 Aaa No Opt. Call 582,605
600,000 The Industrial Development Authority of the County of Maricopa,
Arizona, Baptist Hospital System Revenue Refunding Bonds,
Series 1995, 5.500%, 9/01/16 Aaa 9/05 at 101 579,120
Kyrene Elementary School; District No. 28 of Maricopa County,
Arizona, School Improvement Bonds, Project of 1990,
Series E (1993):
265,000 6.000%, 7/01/12 (Pre-refunded to 7/01/02) Aaa 7/02 at 100 282,532
50,000 6.000%, 7/01/12 Aaa 7/02 at 100 51,334
500,000 The Industrial Development Authority of the County of Mohave
(Arizona) Industrial Development Revenue Bonds, 1994 Series
(Citizens Utilities Company Projects), 6.600%, 5/01/29
(Alternative Minimum Tax) AAA 11/03 at 101 515,370
1,000,000 Navajo County, Arizona, Pollution Control Corporation,
Pollution Control Revenue Refunding Bonds (Arizona
Public Service Company), 1993 Series A, 5.875%,
8/15/28 Baa1 8/03 at 102 968,050
1,000,000 Navajo County, Arizona, Pollution Control Corporation,
Pollution Control Revenue Refunding Bonds (Arizona
Public Service Company), 1993 Series A, 5.500%, 8/15/28 Aaa 8/03 at 102 961,450
425,000 City of Peoria, Arizona Improvement District No. 8801 (North
Valley Power Center) Improvement Bonds, 7.300%, 1/01/12 BBB 1/03 at 101 449,166
250,000 City of Phoenix Civic Improvement Corporation, Airport
Terminal Excise Tax Revenue Bonds, Series 1989, 7.800%,
7/01/11 (Alternative Minimum Tax) AA+ 7/97 at 102 262,148
295,000 Phoenix Housing Finance Corporation, Mortgage Revenue
Refunding Bonds, Series 1992A (FHA Insured Mortgage
Loans-Section 8 Assisted Projects), 6.500%, 7/01/24 Aaa 7/02 at 101 301,558
400,000 City of Phoenix (Arizona), Civic Improvement Corporation,
Wastewater System Lease Revenue Bonds, Series 1993,
6.125% 7/01/23 (Pre-refunded to 7/01/03) AAA 7/03 at 102 437,244
1,000,000 City of Phoenix Civic Improvement Corporation (Arizona),
Wastewater System Lease Revenue Refunding Bonds,
Series 1993, 5.000% 7/01/18 A1 7/04 at 102 900,840
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
ARIZONA.....CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 530,000 City of Phoenix Civic Improvement Corporation, Junior Lien
Water System Revenue Bonds, Series 1996, 6.000%, 7/01/19 Aa 7/06 at 100 $ 538,077
200,000 Phoenix Industrial Development Authority (FHA Insured Chris
Ridge Village Project), 6.750%, 11/01/12 AAA 11/02 at 101 209,506
300,000 City of Phoenix, Arizona, Junior Lien Street and Highway User
Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/11 A+ 7/02 at 102 314,955
500,000 The Industrial Development Authority of the City of Phoenix,
Arizona, Multi-family Housing Revenue Refunding Bonds,
Series 1993 (GNMA Collateralized - Meadow Glen Apartments
Project), 5.800%, 8/20/28 Aaa 2/03 at 102 481,010
485,000 The Industrial Development Authority of the City of Phoenix,
Arizona, Statewide Single Family Mortgage Revenue Bonds,
Series 1995, 6.150%, 12/01/08 (Alternative Minimum Tax) AAA 6/05 at 102 487,808
The Industrial Development Authority of the City of Phoenix,
Arizona, Hospital Revenue Bonds (John C. Lincoln Hospital
and Health Center) Series 1994:
500,000 6.000% 12/01/10 BBB+ 12/03 at 102 496,160
500,000 6.000% 12/01/14 BBB+ 12/03 at 102 484,830
240,000 The Industrial Development Authority of the County of Pima
(Arizona) Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A (Irvington Project),
7.250%, 7/15/10 Aaa 1/02 at 103 262,106
300,000 Tucson Unified School District No. 1 of Pima County, Arizona,
School Improvement Bonds, Project of 1989, Series D (1992),
6.100%, 7/01/12 Aaa 7/02 at 102 312,093
640,000 The Industrial Development Authority of the County of Pima,
Arizona, Health Care System Revenue Bonds, Carondelet
Health Care Corporation of Arizona Issue, Series 1993,
5.250%, 7/01/13 Aaa No Opt. Call 618,733
455,000 The Industrial Development Authority of the County of Pima
(Arizona) Single Family Mortgage Revenue Refunding Bonds,
Series 1995A, 6.500%, 2/01/17 A 8/05 at 102 464,678
Pinal County, Arizona, Certificates of Participation,
Series 1994:
300,000 6.375%, 6/01/06 AA 6/02 at 100 318,960
200,000 6.500%, 6/01/09 AA 6/02 at 100 212,588
280,000 Salt River Project Agricultural Improvement and Power District,
Arizona, Salt River Project Electric System Revenue Bonds,
1986 Series C, 5.750%, 1/01/20 Aa 8/96 at 100 274,168
300,000 Salt River Project Agricultural Improvement and Power District,
Arizona, Salt River Project Electric System Revenue Bonds,
1992 Series D, 5.750%, 1/01/19 Aa 1/02 at 100 296,079
225,000 City of Tempe, General Obligation Bonds Series 1992B,
6.000%, 7/01/08 AA+ 7/02 at 101 235,001
500,000 The Industrial Development Authority of the City of Tempe,
Arizona, Multi-Family Mortgage Refunding Bonds, Series
1993A (FHA Insured Mortgage Loan -- Quadrangles Village
Apartments), 6.250%, 6/01/26 AAA 6/03 at 102 503,655
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 600,000 Tempe Union High School District No. 213 of Maricopa County,
Arizona, School Improvement and Refunding Bonds,
Series 1994, 6.000%, 7/01/12 Aaa 7/04 at 101 $ 624,288
500,000 City of Tucson, Arizona, General Obligation Bonds,
Series 1984-G (1994), 6.250%, 7/01/18 Aaa 7/04 at 101 520,340
575,000 Tucson Airport Authority, Inc. (Arizona), Airport Revenue
Bonds, Refunding Series 1993, 5.700%, 6/01/13 Aaa 6/03 at 102 576,415
250,000 Business Development Finance Corporation, Tucson (Arizona),
Local Development Lease Revenue Refunding Bonds,
Series 1992, 6.250%, 7/01/12 Aaa 7/02 at 102 262,135
390,000 City of Tucson, Arizona, Water System Revenue Bonds,
Series 1994-A (1996), 6.000%, 7/01/21 Aaa 7/06 at 101 399,149
300,000 Arizona Board of Regents, University of Arizona, System
Revenue Refunding Bonds, Series 1992, 6.250%, 6/01/11 AA 6/02 at 102 314,427
335,000 Yavapai County Community College District of Yavapai County
Arizona, Revenue Bonds Series 1993, 6.000%, 7/01/12 A- 7/03 at 101 340,175
675,000 Yuma Union High School District No. 70 of Yuma County,
Arizona, School Improvement Bonds, Series 1994,
5.700%, 7/01/06 Aaa 7/02 at 101 701,317
- ------------------------------------------------------------------------------------------------------------------------
$ 23,790,000 Total Investments -- (Cost $23,536,931) -- 100.7% 24,162,200
================--------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 0.4%
$ 100,000 Maricopa County, Arizona Pollution Control Corporation,
================ Pollution Control Revenue Refunding Bonds, (Arizona Public
Service Company Palo Verde Project), 1994 Series B, Variable
Rate Demand Bonds, 3.600%, 5/01/29+ A-1+ 100,000
- ------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- (1.1)% (267,249)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 23,994,951
========================================================================================================================
</TABLE>
15
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
ARIZONA--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 32 $13,581,090 56%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 13 4,280,449 18
PORTFOLIO OF A+ A1 2 1,215,795 5
INVESTMENTS A, A-- A, A2, A3 5 1,996,591 8
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 5 2,695,871 11
TEMPORARY Non-rated Non-rated 1 392,404 2
INVESTMENTS):
- ----------------------------------------------------------------------------------------------------------
TOTAL 58 $24,162,200 100%
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
16
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
FLORIDA
<TABLE>
<CAPTION>
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
<S> <C> <C> <C> <C>
$2,500,000 Florida Housing Finance Agency, Housing Revenue Bonds,
(Antigua Club Apartments Project), 1995 Series A1, 6.875%,
8/01/26 (Alternative Minimum Tax) Aaa 2/05 at 102 $2,642,650
1,000,000 Florida Housing Finance Agency, Multi-Family Housing
Revenue Refunding Bonds, 1991 Series C, 6.200%,
8/01/16 AAA 8/06 at 102 1,008,510
750,000 Florida Housing Finance Agency, General Mortgage Revenue
Refunding Bonds, 1992 Series A, 6.400%, 6/01/24 AAA 6/02 at 103 762,045
1,440,000 Florida Housing Finance Agency, Multi-Family Housing
Revenue Bond, 1989 Series I, (GNMA Collateralized-
Driftwood Terrace Apartments Project), 7.650%, 12/20/31
(Alternative Minimum Tax) AAA 6/99 at 103 1,522,627
1,000,000 Florida Municipal Power Agency, All-Requirements Power
Supply Project Revenue Bonds, Series 1992, 6.250%, 10/01/21
(Pre-refunded to 10/01/02) Aaa 10/02 at 102 1,101,900
1,145,000 Florida Municipal Power Agency, Stanton II Project Revenue
Bonds, Series 1992, 6.000%, 10/01/27
(Pre-refunded to 10/01/02) Aaa 10/02 at 102 1,245,176
1,650,000 State of Florida Department of Transportation, Turnpike
Revenue Bonds, Series 1992A, 6.350%, 7/01/22
(Pre-refunded to 7/01/02) Aaa 7/02 at 101 1,809,275
1,160,000 State of Florida, Faith and Credit, State Board of Education,
Public Education Capital Outlay Bonds, Series 1986-C,
7.100%, 6/01/07 Aaa No Opt. Call 1,207,618
300,000 State of Florida, Full Faith and Credit, Pollution Control Bonds,
Series Y, Division of Bond Finance of the Department of
General Services, 6.600%, 7/01/17 Aa 7/02 at 101 321,849
2,680,000 State of Florida, Full Faith and Credit State Board of Education,
Public Education Capital Outlay Bonds, Series 1989-A
(Refunding Bonds), 7.250%, 6/01/23 Aa 6/00 at 102 2,946,392
460,000 State of Florida, Full Faith and Credit, State Board of Education,
Public Education Capital Outlay Bonds, Series 1989-A
(Refunding Bonds), 7.250%, 6/01/23
(Pre-refunded to 6/01/00) Aaa 6/00 at 102 512,408
2,250,000 State of Florida, Full Faith and Credit, State Board of Education,
Public Education Capital Outlay Bonds, 1994 Series B,
5.875%, 6/01/20 Aa 6/05 at 101 2,254,793
300,000 Brevard County Educational Facilities Authority (Florida),
Educational Facilities Refunding And Improvement Revenue
Bonds, Series 1992, 6.875%, 11/01/22 BBB 11/02 at 102 308,694
600,000 Housing Finance Authority of Broward County, Florida,
Multifamily Housing Revenue Refunding Bonds, (Lakeside
Apartments Project), Series 1995, 7.000%, 2/01/25 AAA 2/05 at 102 637,596
190,000 City of Cape Coral Health Facilities Authority, Hospital
Refunding and Improvement Revenue Bonds, Series A, (The
Cape Coral Medical Center, Inc. Project), 8.125%, 11/01/08 Aaa No Opt. Call 208,873
1,000,000 Charlotte County, Florida, Utility System Refunding
Revenue Bonds, Series 1996A, 6.200%, 10/01/23 (WI) Aaa 10/97 at 100 1,004,410
</TABLE>
17
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
FLORIDA--CONTINUED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 Dade County, Florida, Aviation Facilities Revenue Bonds,
1992 Series B, 6.550%, 10/01/13 (Alternative Minimum Tax) Aaa 10/02 at 102 $ 1,067,900
115,000 Housing Finance Authority of Dade County (Florida), Single
Family Mortgage Revenue Bonds, Series B, 7.250%, 9/01/23
(Alternative Minimum Tax) Aaa 3/01 at 102 119,614
2,480,000 Dade County, Florida, Public Facilities Revenue Refunding Bonds
(Jackson Memorial Hospital), Series 1993A, 4.875%, 6/01/15 Aaa 6/03 at 102 2,191,799
465,000 Dade County, Florida, Special Housing Revenue Bonds
(City of Miami Developments--Indenture VIII),
Series A, 12.000%, 7/01/12 A 1/97 at 102 477,197
255,000 Dade County, Florida, Special Obligation Bonds,
(Courthouse Center Project), Series 1994, 6.300%, 4/01/14 A 4/04 at 102 268,064
250,000 Dade County Health Facilities Authority, Hospital Revenue
Refunding Bonds, Series 1989, (South Miami Hospital Project),
7.000%, 10/01/18 (Pre-refunded to 10/01/99) Aaa 10/99 at 102 274,253
300,000 Dade County Health Facilities Authority, Hospital Revenue
Refunding Bonds, Series 1992, (North Shore Medical Center
Project), 6.500%, 8/15/15 Aaa 8/02 at 102 317,973
1,000,000 Town of Davie, Florida, Water and Sewer Improvement and Refunding,
Revenue Bonds, Series 1992, 6.250%, 10/01/17 Aaa 10/02 at 102 1,036,410
600,000 The City of Daytona Beach, Florida, Water and Sewer Revenue Bonds,
Series 1992, 6.000%, 11/15/14 Aaa 11/02 at 102 613,884
1,600,000 City of Dunedin (Florida), Hospital Revenue Refunding Bonds,
Series 1993, (Mease Health Care), 5.375%, 11/15/13 Aaa 11/03 at 101 1,553,408
325,000 Escambia County Housing Finance Authority (Florida), Single
Family Mortgage Revenue Bonds, Series 1992A, (Multi-County
Program), 6.900%, 4/01/20 (Alternative Minimum Tax) Aaa 10/02 at 102 336,476
2,000,000 Escambia County Housing Finance Authority (Florida), Single Family
Mortgage Revenue Bonds, (Multi-County Program), Series
1995, 6.950%, 10/01/27 (Alternative Minimum Tax) Aaa 4/05 at 102 2,054,300
500,000 Certificates of Participation, Series 1992, The School Board of
Escambia County, Florida, 6.375%, 2/01/12 Aaa 2/02 at 100 522,810
500,000 City of Gainesville, Florida, Utilities System Revenue Bonds,
1992 Series A, 6.500%, 10/01/22 Aa 10/02 at 102 556,165
1,000,000 Hillsborough County Aviation Authority, Florida, Tampa
International Airport Revenue Bonds, Series 1996B, 5.875%,
10/01/23 Aaa 10/06 at 102 1,004,220
1,200,000 Hillsborough County Industrial Development Authority, Pollution
Control Revenue Refunding Bonds (Tampa Electric Company
Project) Series 1992, 8.000%, 5/01/22 Aa2 5/02 at 103 1,388,544
250,000 Hillsborough County, Florida, Capital Improvement, Non-Ad Valorem
Revenue Bonds, (Museum of Science and Industry Project),
Series 1992, 6.400%, 1/01/12 (Pre-refunded to 1/01/00) A 1/00 at 102 269,625
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 250,000 City of Hollywood, Florida, Water and Sewer
Revenue Bonds, Series 1991, 6.875%, 10/01/21
(Pre-refunded to 10/01/01) Aaa 10/01 at 102 $ 280,500
470,000 Jacksonville Electric Authority, (Jacksonville,
Florida), Electric System Revenue Bonds, Series
Two 1987A-1, 7.500%, 10/01/02 Aa1 10/97 at 101 1/2 491,512
500,000 Jacksonville Electric Authority, (Jacksonville,
Florida), St. Johns River Power Park System
Refunding Revenue Bonds, Issue Two, Series Seven,
5.500%, 10/01/14 Aa1 10/02 at 101 487,355
250,000 City of Jacksonville, Florida, Excise Taxes Revenue
Refunding Bonds, Series 1992, 6.500%, 10/01/13 Aaa 10/02 at 102 267,633
605,000 Jacksonville Health Facilities Authority, Health
Facilities Revenue Refunding Bonds, Daughters of
Charity National Health System, Inc, St. Vincent's
Medical Center Issue, Series 1990, 7.500%, 11/01/15
(Pre-refunded to 11/01/00) Aaa 11/00 at 102 684,830
1,750,000 Jacksonville Health Facilities Authority, Hospital
Revenue Bonds, (New Children's Hospital at Baptist
Medical Center Project), Series 1991, 7.000%,
6/01/21 Aaa 6/01 at 102 1,917,720
375,000 City of Jacksonville, Florida, Water and Sewer
Development Revenue Bonds, Series 1992, (Jacksonville
Suburban Utilities Corporation Project), 6.750%,
6/01/22 (Alternative Minimum Tax) A 6/02 at 102 394,223
250,000 Town of Jupiter, Florida, Water Revenue Bonds,
Series 1992B, 6.250%, 10/01/18 Aaa 10/01 at 102 258,195
1,300,000 Kissimmee Utility Authority (Florida), Electric System
Improvement and Refunding Revenue Bonds, Series
1993, 5.375%, 10/01/12 Aaa 10/03 at 102 1,273,103
845,000 Housing Finance Authority of Manatee County, Florida,
Single Family Mortgage Revenue Bonds, Series 1994-Sub
Series 3, 7.600%, 11/01/26 (Alternative Minimum Tax) Aaa 11/05 at 105 924,531
2,550,000 City of Miami Beach, Florida, Water and Sewer Revenue
Bonds, Series 1995, 5.375%, 9/01/15 Aaa 9/05 at 102 2,467,176
250,000 North Broward Hospital District (Florida), Hospital
Revenue Refunding Bonds, Series 1992A, 6.250%,
1/01/12 Aaa 1/02 at 102 261,203
1,500,000 Orange County, Florida, Sales Tax Revenue Bonds,
Series 1993B, 5.375%, 1/01/24 Aaa 1/03 at 102 1,419,810
145,000 Orange County, Florida, Sales Tax Revenue Bonds,
Series 1989, 6.125%, 1/01/19 Aaa No Opt. Call 155,324
500,000 Orange County, Florida, Water Utilities System Revenue
Bonds, Series 1992, 6.250%, 10/01/17 Aaa 4/02 at 102 517,310
1,000,000 Orange County Housing Finance Authority, Multifamily
Housing Revenue Bonds, (Ashley Point Apartments
Project), 1994 Series A, 7.100%, 10/01/24 (Alternative
Minimum Tax) BBB+ 10/01 at 101 1,024,870
1,250,000 Orlando (Florida) Utilities Commission, Water and
Electric Subordinated Revenue Bonds, Series 1992A,
6.000%, 10/01/20 Aa 10/02 at 102 1,261,513
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
FLORIDA--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 1,000,000 State of Florida, Orlando-Orange County Expressway Authority,
Senior Lien Revenue Refunding Bonds, Series of 1993,
5.500%, 7/01/18 Aaa 7/03 at 102 $ 980,610
1,000,000 State of Florida, Orlando-Orange County Expressway Authority,
Junior Lien Revenue Refunding Bonds, Series of 1993A,
5.125%, 7/01/20 Aaa 7/03 at 102 917,450
Palm Beach County, Florida, Criminal Justice Facilities, Revenue
Refunding Bonds, Series 1993:
1,000,000 5.300%, 6/01/05 Aaa No Opt. Call 1,025,090
1,000,000 5.375%, 6/01/10 Aaa No Opt. Call 1,001,860
2,000,000 City of Pensacola Health Facilities Authority, Health Facilities
Revenue Bonds, (Daughters of Charity National Health
System-Sacred Heart Hospital of Pensacola), Series 1993,
5.250%, 1/01/11 Aa 1/03 at 102 1,913,180
2,000,000 Pinellas County (Florida), Health Facilities Authority, Hospital
Revenue Bonds, Series 1993 (Morton Plant Health System
Project), 5.500%, 11/15/18 Aaa 11/03 at 102 1,926,500
565,000 St. Lucie County, Florida, Solid Waste System Revenue Bonds,
Series 1990, 6.000%, 9/01/15 (Pre-refunded to 9/01/99) Aaa 9/99 at 100 593,182
630,000 City of St. Petersburg Health Facilities Authority (Florida),
Revenue Bonds, Series 1985A (Allegany Health System Loan
Program), 7.000%, 12/01/15 Aaa 12/01 at 102 694,701
1,000,000 City of Sarasota, Florida, Water and Sewer System Revenue
Bonds, Series 1988-A 7.625%, 10/01/08
(Pre-refunded to 10/01/96) Aaa 10/96 at 102 1,026,160
165,000 City of Tampa, Florida, Water and Sewer Systems Revenue
Bonds, Series 1992, 6.000%, 10/01/17 Aaa 10/02 at 101 167,370
335,000 City of Tampa, Florida, Water and Sewer Systems Revenue
Bonds, Series 1992, 6.000%, 10/01/17
(Pre-refunded to 10/01/02) Aaa 10/02 at 101 361,783
1,000,000 Turtle Run Community Development District, (Coral Springs,
Florida), Water Management Benefit Tax Refunding Bonds,
Series 1993, 6.400%, 5/01/11 A1 5/03 at 100 1,045,770
2,500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of
1996, (General Obligation Bonds), 5.400%, 7/01/25 A 7/06 at 101 1/2 2,312,800
- -------------------------------------------------------------------------------------------------------------------------------
$60,250,000 Total Investments -- (cost $59,719,592) -- 98.5% 61,600,722
==============-----------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 1.9%
$ 1,200,000 Jacksonville Health Facilities Authority, Hospital Revenue
==============
Bonds, (Baptist Medical Center Project), Series 1993, Variable
Rate Demand Bonds, 3.650%, 6/01/08+ A-1 1,200,000
- -------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- (0.4)% (228,063)
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $62,572,659
===============================================================================================================================
</TABLE>
20
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 46 $43,878,176 71%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 9 11,621,303 19
PORTFOLIO OF A+ A1 1 1,045,770 2
INVESTMENTS A, A- A, A2, A3 5 3,721,909 6
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 2 1,333,564 2
TEMPORARY
INVESTMENTS):
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL 63 $61,600,722 100%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at
varying prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(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.
21
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
MARYLAND
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,500,000 Washington Metropolitan Area Transit Authority (District of
Columbia), Gross Revenue Transit Refunding Bonds, Series
1993, 5.250%, 7/01/14 Aaa 1/04 at 102 $1,435,305
500,000 Community Development Administration, Department of
Housing and Community Development, State of Maryland,
Single Family Program Bonds, 1987 First Series,
7.000%, 4/01/14 Aa 4/97 at 103 518,320
1,440,000 Community Development Administration, Department of
Housing and Community Development, State of Maryland,
Single Family Program Bonds, 1991 Fourth Series,
7.450%, 4/01/32 (Alternative Minimum Tax) Aa 4/01 at 102 1,504,181
Community Development Administration, Department of
Housing and Community Development, State of Maryland,
Multi-Family Housing Revenue Bonds (Insured Mortgage
Loans), 1992 Series D:
700,000 6.700%, 5/15/27 Aa 5/02 at 102 728,287
500,000 6.750%, 5/15/33 Aa 5/02 at 102 520,165
1,855,000 Maryland Economic Development Corporation (Health and
Mental Hygiene Providers Facilities Acquisition Program)
Revenue Bonds, Series 1996A, 7.625%, 4/01/21 N/R 4/11 at 102 1,747,169
500,000 Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Sinai Hospital of Baltimore Issue, Series 1990,
7.000%, 7/01/19 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 551,380
500,000 Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Francis Scott Key Medical Center Issue, Series
1990, 6.750%, 7/01/23 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 546,945
1,005,000 Maryland Health and Higher Educational Facilities Authority,
Doctors' Community Hospital Issue, Series 1990, 8.750%,
7/01/22 (Pre-refunded to 7/01/00) Aaa 7/00 at 102 1,169,890
1,000,000 Maryland Health and Higher Educational Facilities Authority,
Refunding Revenue Bonds, Francis Scott Key Medical Center
Issue, Series 1993, 5.000%, 7/01/13 Aaa 7/03 at 102 928,190
1,000,000 Maryland Health and Higher Educational Facilities Authority,
Project and Refunding Revenue Bonds, Doctors Community
Hospital Issue, Series 1993, 5.750%, 7/01/13 Baa 7/03 at 102 919,810
1,760,000 Maryland Stadium Authority, Convention Center Expansion
Lease Revenue Bonds, Series 1994, 5.875%, 12/15/12 Aaa 12/04 at 102 1,797,558
Maryland Stadium Authority, Sports Facilities Lease Revenue
Bonds, Series 1989D:
500,000 7.375%, 12/15/04 (Alternative Minimum Tax) Aa 12/99 at 102 549,940
500,000 7.500%, 12/15/10 (Alternative Minimum Tax) Aa 12/99 at 102 547,185
3,010,000 Maryland Transportation Authority, Special Obligation Revenue
Bonds, Baltimore/Washington International Airport Projects,
Series 1994-A (Qualified Airport Bonds), 6.400%, 7/01/19
(Alternative Minimum Tax) Aa 7/04 at 102 3,092,926
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,000,000 Maryland Transportation Authority, Transportation Facilities
Projects, Revenue Bonds, Series 1992, 5.750%, 7/01/15 A1 7/02 at 100 $1,000,690
2,000,000 State of Maryland, General Obligation Bonds, State and Local
Facilities Loan of 1993, Third Series (Capital Improvement
and Refunding Bonds), 4.600%, 7/15/06 Aaa 7/03 at 101 1,912,860
2,000,000 Baltimore County, Maryland, General Obligation Bonds,
Baltimore County Pension Funding Bonds, 1991 Refunding
Series, 6.700%, 7/01/11 Aaa 7/98 at 102 2,114,860
600,000 City of Baltimore, Maryland (Mayor and City Council of
Baltimore), General Obligation Consolidated Public
Improvement Refunding Bonds of 1992--Series A,
6.500%, 10/15/12 (Pre-refunded to 10/15/02) Aaa 10/02 at 100 657,330
2,295,000 Mayor and City Council of Baltimore (City of Baltimore,
Maryland), General Obligation Consolidated Public
Improvement Refunding Bonds of 1995--Series A,
7.375%, 10/15/03 Aaa No Opt. Call 2,645,883
1,000,000 Baltimore City, Maryland, Mortgage Revenue Refunding Bonds,
Series 1992 (Gnma Collateralized-Tindeco Wharf Apartments
Project), 6.700%, 12/20/28 AAA 12/02 at 102 1,038,180
1,500,000 Mayor and City Council of Baltimore (Maryland), Port Facilities
Revenue Bonds (Consolidation Coal Sales Company Project),
1984B, 6.500%, 10/01/11 AA- 4/02 at 103 1,628,160
1,500,000 City of Baltimore, Maryland (Mayor and City Council of
Baltimore), Project and Refunding Revenue Bonds (Water
Projects), Series 1996-A, 5.500%, 7/01/26 Aaa 7/06 at 101 1,445,625
625,000 Mayor and City Council of Baltimore (Maryland), Project and
Refunding Revenue Bonds (Water Projects), Series 1990-A,
6.500%, 7/01/20 (Pre-refunded to 7/01/00) Aaa 7/00 at 100 669,050
2,165,000 City of Gaithersburg, Maryland, Nursing Home Revenue
Refunding Bonds, (Shady Grove Adventist Nursing and
Rehabilitation Center Project), Series 1992A, 6.500%, 9/01/12 Aaa No Opt. Call 2,368,467
1,000,000 Howard County, Maryland, Mortgage Revenue Refunding
Bonds, Series 1992 (Howard Hills Townhouses Project--FHA
Insured Mortgage Loan), 6.400%, 7/01/24 Aaa 7/02 at 102 1,026,500
2,000,000 Howard County, Maryland, Multifamily Housing Revenue
Refunding Bonds, Series 1994, (Chase Glen Project), 7.000%,
7/01/24 (Mandatory put 7/01/04) N/R 7/02 at 104 2,128,320
700,000 The Maryland National Capital Park and Planning Commission,
Maryland, (Prince George's County, Maryland), General
Obligation Bonds, Prince George's County Park Acquisition
and Development Bonds, Series L-2, 6.125%, 7/01/02
(Pre-refunded to 7/01/02) Aa 7/02 at 102 761,040
1,000,000 Housing Opportunities Commission of Montgomery County,
(Montgomery County, Maryland), Multifamily Housing
Revenue Bonds, 1995 Series A, 6.000%, 7/01/20 Aa 7/05 at 102 996,160
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
MARYLAND--CONTINUED
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 450,000 Housing Opportunities Commission of Montgomery County,
(Montgomery County, Maryland), Single Family Mortgage
Revenue Bonds, 1986 Series C, 7.250%, 7/01/13 Aa 7/99 at 100 $ 464,184
1,615,000 Housing Opportunities Commission of Montgomery County,
(Montgomery County, Maryland), Single Family Mortgage
Revenue Bonds, 1994 Series A, 6.600%, 7/01/14 Aa 7/04 at 102 1,673,108
1,000,000 Montgomery County, Maryland, Solid Waste System Revenue
Bonds, (1993 Series A), 5.875%, 6/01/13 (Alternative
Minimum Tax) Aaa 6/03 at 102 1,009,160
1,500,000 Morgan State University, Maryland, Academic Fees and
Auxiliary Facilities Fees, Revenue Refunding Bonds,
1993 Series, 6.100%, 7/01/20 Aaa No Opt. Call 1,580,760
1,000,000 Northeast Maryland Waste Disposal Authority, Resource
Recovery Revenue Refunding Bonds, (Southwest Resource
Recovery Facility), Series 1992, 6.900%, 1/01/00 Aaa No Opt. Call 1,067,990
600,000 Prince George's County, Maryland, Hospital Revenue Bonds,
Dimensions Health Corporation, Series 1992, 6.700%, 7/01/97 A No Opt. Call 614,580
1,550,000 Housing Authority of Prince George's County, Maryland,
Mortgage Revenue Refunding Bonds, Series 1992A (New
Keystone Apartments Project-FHA Insured Mortgage Loan),
6.800%, 7/01/25 Aaa 1/02 at 102 1,616,480
1,500,000 Prince George's County, Maryland, Pollution Control Revenue
Refunding Bonds (Potomac Electric Project), 1993 Series,
6.375%, 1/15/23 A+ 1/03 at 102 1,564,275
1,000,000 University of Maryland System, Auxiliary Facility and Tuition
Revenue Bonds, 1993 Refunding Series C, 5.000%, 10/01/11 AA+ 10/03 at 101 955,380
1,170,000 Washington Suburban Sanitary District, Maryland,
(Montgomery and Prince George's Counties, Maryland),
General Construction Bonds of 1991 (Second Series),
8.000%, 1/01/02 Aa1 No Opt. Call 1,352,380
500,000 Commonwealth of Puerto Rico, Public Improvement Bonds of
1992 (General Obligation Bonds), 6.600%, 7/01/13
(Pre-refunded to 7/01/02) Aaa 7/02 at 101 1/2 556,910
1,750,000 Puerto Rico Aqueduct and Sewer Authority, Revenue Bonds,
Series 1988A, 7.875%, 7/01/17 (Pre-refunded to 7/01/98) AAA 7/98 at 102 1,908,148
2,000,000 Puerto Rico Highway and Transportation Authority, Highway
Revenue Bonds, (Series X), 5.250%, 07/01/14 A- 7/03 at 101 1/2 1,810,780
185,000 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series 1989-N, 7.125%, 7/01/14 A- 7/99 at 101 1/2 199,638
315,000 Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series 1989-0, 7.125%, 7/01/14
(Pre-refunded to 7/01/99) AAA 7/99 at 101 1/2 344,442
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,000,000 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority,
Hospital Revenue Bonds, 1995 Series A, (Hospital Auxilio
Mutuo Obligated Group Project), 6.250%, 7/01/16 Aaa 1/05 at 102 $ 1,043,900
- ----------------------------------------------------------------------------------------------------------------------------------
$ 52,790,000 Total Investments -- (cost $53,138,209) -- 98.1% 54,712,491
================------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 1.3%
$ 700,000 Maryland Health and Higher Educational Facilities Authority,
================ Kaiser Permanente Revenue Bonds, 1995 Series A, Variable
Rate Demand Bonds, 3.500%, 7/01/15+ VMIG-1 700,000
- ----------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 0.6% 364,906
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 55,777,397
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 24 $32,528,739 59%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 13 12,198,490 22
PORTFOLIO OF A+ A1 2 2,564,965 5
INVESTMENTS A, A- A, A2, A3 3 2,624,998 5
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 1 919,810 2
TEMPORARY Non-rated Non-rated 2 3,875,489 7
INVESTMENTS):
- --------------------------------------------------------------------------------------------------------------------------
TOTAL 45 $54,712,491 100%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
25
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
MICHIGAN
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1,145,000 Board of Trustees of Michigan State University, General Revenue
Bonds, Series 1992 A, 6.250%, 8/15/15 AA- 8/02 at 101 $ 1,171,427
Michigan Municipal Bond Authority, State Revolving Fund
Reserve Bond, Series 1992A:
1,000,000 4.750%, 12/01/09 Aaa 12/01 at 100 923,030
555,000 6.600%, 10/01/18 Aa 10/02 at 102 585,902
950,000 Michigan Municipal Bond Authority, State Revolving Fund
Revenue Bonds, Series 1994, 7.000%, 10/01/04 Aa No Opt. Call 1,073,652
1,000,000 Michigan Public Power Agency, Belle River Project Refunding
Revenue Bonds, 1993 Series A, 5.250%, 1/01/18 AA- 1/03 at 102 918,650
Michigan State Hospital Finance Authority, Hospital Revenue
and Refunding Bonds, (The Detroit Medical Center Obligated
Group), Series 1988B:
460,000 8.125%, 8/15/08 (Pre-refunded to 8/15/98) Aaa 8/98 at 102 502,798
40,000 8.125%, 8/15/08 A 8/98 at 102 43,056
1,000,000 Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, (Daughters of Charity National Health System-
Providence Hospital), Series 1991, 7.000%, 11/01/21 Aa 11/01 at 102 1,076,110
500,000 Michigan State Hospital Finance Authority, Hospital Revenue
Bonds, (Mid-Michigan Obligated Group), Series 1992,
6.900%, 12/01/24 A 12/02 at 102 523,615
860,000 Michigan State Hospital Finance Authority, Hospital Revenue
and Refunding Bonds (The Detroit Medical Center Obligated
Group) Series 1993B, 5.000%, 8/15/02 A No Opt. Call 857,325
1,000,000 Michigan State Hospital Finance Authority, Hospital Revenue
and Refunding Bonds, (Otsego Memorial Hospital Gaylord,
Michigan), Series 1995, 6.125%, 1/01/15 AA 1/05 at 102 1,017,650
1,190,000 Michigan State Housing Development Authority, Limited
Obligation Multi-Family Revenue Refunding Bonds, Series
1995A, (GNMA Collateralized Program-Parc Pointe
Apartments), 6.500%, 10/01/15 Aaa 10/05 at 102 1,237,207
1,000,000 Michigan State Housing Development Authority, Single Family
Mortgage Revenue Bonds, 1995 Series A, 6.800%, 12/01/16 AA+ 6/05 at 102 1,039,510
1,740,000 Michigan State Housing Finance Authority, Hospital Revenue
and Refunding Bonds, (Daughters of Charity National Health
System-St. Mary's Medical Center of Saginaw, Inc.) Series
1995, 5.500%, 11/01/05 Aa No Opt. Call 1,777,793
Michigan State Housing Development Authority, Rental
Housing Revenue Bonds, 1992 Series A:
500,000 6.400%, 4/01/05 A+ 10/02 at 102 524,215
500,000 6.650%, 4/01/23 A+ 10/02 at 102 514,840
1,000,000 Michigan State Housing Development Authority, Rental
Housing Revenue Bonds, 1994 Series B, 5.700%, 4/01/12 A+ 4/04 at 102 972,670
1,055,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds,
(WMX Technologies, Inc. Project), Series 1993, 6.000%,
12/01/13 (Alternative Minimum Tax) A1 12/03 at 102 1,060,834
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,000,000 State Building Authority, State of Michigan,
1991 Revenue Bonds, Series II, 6.250%,
10/01/20 AA- 10/01 at 102 $1,011,680
400,000 County of Bay, Michigan, Bay County West
Side Regional Sewage Disposal System
Bonds, 6.400%, 5/01/02 A 11/96 at 102 408,000
250,000 Capital Region Airport Authority, (Lansing,
Michigan), Airport Revenue Bonds, Series
1992, 6.700%, 7/01/21 (Alternative Minimum
Tax) Aaa 7/02 at 102 265,653
1,000,000 School District of the City of Dearborn,
County of Wayne, State of Michigan, 1992
School Building and Site Bonds, (General
Obligation Unlimited Tax), 6.000%, 5/01/14 AA 5/01 at 102 1,014,420
1,500,000 City of Detroit, Michigan, Convention Facility
Limited Tax Revenue Refunding Bonds, (Cobo
Hall Expansion Project), Series 1993, 5.250%,
9/30/12 Aaa 9/03 at 102 1,424,640
1,000,000 City of Detroit, Michigan, Water Supply System
Revenue and Revenue Refunding Bonds, Series
1993, 4.750%, 7/01/19 Aaa 7/04 at 102 855,900
1,000,000 Dexter Community Schools, Counties of Washtenaw
and Livingston, State of Michigan, 1993 School
Building and Site and Refunding Bonds, (General
Obligation Unlimited Tax), 5.000%, 5/01/17 AA 5/03 at 102 895,760
445,000 Grand Rapids Housing Corporation, Multi-Family
Revenue Refunding Bonds, Series 1992 (FHA
Insured Mortgage Loan-Section 8 Assisted
Elderly Project), 7.375%, 7/15/41 AAA 1/04 at 104 483,337
500,000 County of Grand Traverse (Michigan), Hospital
Finance Authority, Hospital Revenue Refunding
Bonds (Munson Healthcare Obligated Group),
Series 1992A, 6.250%, 7/01/22 Aaa 7/02 at 102 510,435
950,000 Huron Valley School District, Counties of
Oakland and Livingston, State of Michigan,
1996 Refunding Bonds (General Obligation
-Unlimited Tax), 5.750%, 5/01/22 (WI) Aaa 5/07 at 100 946,742
1,000,000 Lake Orion Community School District,County
of Oakland, State of Michigan, 1995
Refunding Bonds, (General Obligation
-Unlimited Tax), 5.500%, 5/01/20 Aaa 5/05 at 101 964,600
1,250,000 City of Lansing, Sewage Disposal System
Revenue and Revenue Refunding Bonds, 1994
Series, 5.850%, 5/01/14 Aaa 5/04 at 102 1,255,125
1,000,000 County of Monroe, Michigan, Pollution Control
Revenue Bonds, (The Detroit Edison Company
Project), Series A-1994, 6.350%, 12/01/04
(Alternative Minimum Tax) Aaa No Opt. Call 1,088,870
City of Muskegon, County of Muskegon, State of
Michigan, Water Supply System Revenue Bonds,
Series 1993:
450,000 4.500%, 5/01/12 Baa1 5/01 at 101 375,534
450,000 4.500%, 5/01/13 Baa1 5/01 at 101 372,794
180,000 Saginaw-Midland Municipal Water Supply
Corporation, State of Michigan, Water Supply
Revenue Bonds (Limited Tax General Obligation),
Series 1992, 6.875%, 9/01/16 A 9/04 at 102 196,864
200,000 Hospital Finance Authority of the City of
St. Joseph, Michigan, Hospital Revenue
Refunding and Improvement Bonds, (Mercy
Memorial Medical Center, Inc.), Series 1986A,
7.300%, 10/01/00 (Pre-refunded to 10/01/96) AAA 10/96 at 102 205,174
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
MICHIGAN--CONTINUED
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,000,000 Regents of the University of Michigan, Hospital
Revenue Bonds, Series 1990, 6.375%, 12/01/24 Aa 12/00 at 100 $ 1,017,260
250,000 The Economic Development Corporation of the City
of Warren, Nursing Home Revenue Refunding Bonds,
(GNMA Mortgage-Backed Security-Autumn Woods
Project), Series 1992, 6.900%, 12/20/22 Aaa 3/02 at 101 261,175
1,000,000 Charter County of Wayne, Michigan, Airport Revenue
Refunding Bonds (Detroit Metropolitan Wayne County
Airport), Subordinate Lien, Series 1993C, 5.250%,
12/01/13 Aaa 12/03 at 102 946,560
1,000,000 Western Townships Utilities Authority, Sewage
Disposal System Refunding Bonds, Series
1991, 6.500%, 1/01/10 AAA 1/02 at 100 1,059,420
500,000 Puerto Rico Aqueduct and Sewer Authority,
Revenue Bonds, Series 1988A, 7.875%,
7/01/17 (Pre-refunded to 7/01/98) AAA 7/98 at 102 545,185
250,000 Puerto Rico Public Buildings Authority, Public
Education and Health Facilities Bonds,
Series L, 6.875%, 7/01/21 (Pre-refunded to
7/01/02) Aaa 7/02 at 101 1/2 281,812
- ---------------------------------------------------------------------------------------------------------------------
$32,070,000 Total Investments -- (cost $31,212,932) -- 98.3% 32,207,224
================-----------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM
MUNICIPAL SECURITIES -- 2.1%
$ 700,000 Regents of the University of Michigan, Hospital
================ Revenue Bonds, Series 1995A, (Adjustable Rate
Demand), Variable Rate Demand Bonds, 3.750%,
12/01/27+ VMIG-1 700,000
- ---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- (0.4%) (154,672)
- ---------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $32,752,552
=====================================================================================================================
</TABLE>
28
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 18 $13,757,663 43%
RATINGS** AA+, AA, AA-- Aa1, Aa, Aa2, Aa3 12 12,599,814 39
PORTFOLIO OF A+ A1 4 3,072,559 10
INVESTMENTS A, A-- A, A2, A3 5 2,028,860 6
(EXCLUDING BBB+, BBB, BBB-- Baa1, Baa, Baa2, Baa3 2 748,328 2
TEMPORARY
INVESTMENTS):
- -----------------------------------------------------------------------------------------------------------
TOTAL 41 $32,207,224 100%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
(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.
29
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NEW JERSEY
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,415,000 The Delaware River and Bay Authority, Revenue Bonds, Series
1993, 5.000%, 1/01/17 Aaa 1/04 at 102 $1,292,334
1,000,000 New Jersey Economic Development Authority, Gas Facilities
Revenue Bonds, 1991 Series A, (Elizabethtown Gas Company
Project), 6.750%, 10/01/21 (Alternative Minimum Tax) A3 10/96 at 102 1,022,300
200,000 New Jersey Economic Development Authority, Lease Rental
Bonds, 1992 Series, (Liberty State Park Project), 6.800%,
3/15/22 (Pre-refunded to 3/15/02) A1 3/02 at 102 222,922
1,000,000 New Jersey Economic Development Authority, Economic
Development Bonds, (Yeshiva K'Tana of Passaic-1992 Project),
8.000%, 9/15/18 N/R No Opt. Call 1,148,500
2,965,000 New Jersey Economic Development Authority, Economic
Development Bonds, (Bridgewater Resources Inc. Project),
1994 Series A, 8.375%, 11/01/04 (Alternative Minimum Tax) N/R No Opt. Call 3,082,770
250,000 New Jersey Economic Development Authority, Solid Waste
Disposal Facility Revenue Bonds, (Garden State Paper
Company, Inc. Project), Series 1992, 7.125%, 4/01/22
(Alternative Minimum Tax) Aa1 4/02 at 102 267,253
1,285,000 New Jersey Economic Development Authority, Economic
Growth Bond, Composite Issue-1992 Second Series H,
5.300%, 12/01/07 (Alternative Minimum Tax) Aa3 12/03 at 102 1,266,727
650,000 New Jersey Economic Development Authority, Market
Transition Facility Senior Lien Revenue Bonds, Series 1994A,
5.875%, 7/01/11 Aaa 7/04 at 102 663,923
975,000 New Jersey Educational Facilities Authority, Trenton State
College Issue, Revenue Bonds, Series 1976 D,
6.750%, 7/01/08 A+ 1/97 at 100 977,077
835,000 New Jersey Educational Facilities Authority, Princeton
University Revenue Bonds, 1994 Series A, 5.875%, 7/01/11 Aaa 7/04 at 100 859,148
1,930,000 New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Hackensack Hospital Issue, Series A, 8.750%, 7/01/09 Aaa No Opt. Call 2,235,056
2,065,000 New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Series 1990-E, (Kennedy Memorial Hospital),
8.375%, 7/01/10 A1 7/01 at 102 2,381,585
700,000 New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Community Medical Center/Kensington Manor Care
Center Issue, Series E, 7.000%, 7/01/20 Aaa 7/00 at 102 757,484
480,000 New Jersey Health Care Facilities Financing Authority Revenue
Bonds, Community Memorial Hospital Association Issue,
Series C, 8.000%, 7/01/14 A 7/98 at 102 513,571
3,000,000 New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Newton Memorial Hospital Issue,
Series A, 7.500%, 7/01/19 A- 7/99 at 102 3,201,870
400,000 New Jersey Health Care Facilities Financing Authority,
Refunding Revenue Bonds, Atlantic City Medical Center
Issue, Series C, 6.800%, 7/01/05 A 7/02 at 102 432,268
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 800,000 New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Palisades Medical Center, Obligated Group Issue,
Series 1992, 7.500%, 7/01/06 Ba1 7/02 at 102 $ 809,608
1,750,000 New Jersey Housing Finance Agency, Special Pledge Revenue
Obligations, 1975 Series One, 9.000%, 11/01/18 A1 11/96 at 104 1,827,123
2,000,000 New Jersey Housing and Mortgage Finance Agency, Multi-Family
Housing Revenue Bonds, 1995 Series A, 6.000%, 11/01/14 Aaa 5/05 at 102 2,018,700
700,000 New Jersey Housing and Mortgage Finance Agency, Housing
Revenue Bonds, 1992 Series A, 6.950%, 11/01/13 A+ 5/02 at 102 741,090
375,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds,
1984 Series, 10.375%, 1/01/03 AAA No Opt. Call 449,434
1,750,000 New Jersey Turnpike Authority, Turnpike Revenue Refunding
Bonds, Series 1991-C, 6.500%, 1/01/08 A No Opt. Call 1,899,905
1,000,000 State of New Jersey, General Obligation Bonds, Series D,
5.800%, 2/15/07 Aa1 No Opt. Call 1,052,420
1,000,000 Pollution Control Financing Authority of Camden County,
(Camden County, New Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds, Series 1991 C,
7.125%, 12/01/01 (Alternative Minimum Tax) BBB+ No Opt. Call 1,017,330
2,645,000 Pollution Control Financing Authority of Camden County,
(Camden County, New Jersey), Solid Waste Disposal and
Resource Recovery System Revenue Bonds, Series 1991 D,
7.250%, 12/01/10 BBB+ 12/01 at 102 2,721,864
500,000 The Essex County Improvement Authority, (Essex County,
New Jersey), County Guaranteed Pooled Revenue Bonds,
Series 1992A, 6.500%, 12/01/12 Baa1 12/02 at 102 518,640
500,000 The Board of Education of The Township of Hillsborough, in
the County of Somerset, State of New Jersey, General
Obligation School Purpose Bonds, Series 1992, 5.875%,
8/01/11 AA No Opt. Call 519,245
400,000 The Hudson County Improvement Authority, Multi-Family
Housing Revenue Bonds, Series 1992 A, (Conduit Financing-
Observer Park Project), 6.900%, 6/01/22 (Alternative
Minimum Tax) AAA 6/04 at 100 416,116
1,605,000 The Board of Education of the Borough of Little Ferry,
Bergen County, New Jersey, Certificates of Participation,
6.300%, 1/15/08 N/R No Opt. Call 1,622,559
The Board of Education of the Township of Monroe, In the
county of Gloucester, New Jersey, School Bonds, Series 1993:
725,000 5.200%, 8/01/11 Aaa No Opt. Call 707,680
825,000 5.200%, 8/01/14 Aaa No Opt. Call 792,124
500,000 North Bergen Housing Development Corporation (North Bergen,
New Jersey), Mortgage Revenue Bonds, Series 1978, (FHA-Insured
Mortgage Loan-Section 8 Assisted Project), 7.400%, 9/01/20 N/R 8/96 at 102 1/2 510,265
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NEW JERSEY--CONTINUED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
$ 300,000 The Township of North Bergen, (Hudson County, New Jersey), Fiscal
Year Adjustment General Obligation Bonds, Series 1992,
6.500%, 8/15/12 Aaa 8/02 at 102 $ 320,754
2,350,000 The Ocean County Utilities Authority (New Jersey), Wastewater
Revenue Bonds, Refunding Series 1987, 5.000%, 1/01/14 Aaa 1/97 at 100 2,153,940
2,215,000 County of Passaic, State of New Jersey, General Obligation Refunding
Bonds, Series 1993, 5.125%, 9/01/12 Aaa No Opt. Call 2,135,216
270,000 The Union County Utilities Authority, (New Jersey), Solid Waste
System Revenue Bonds, Series D, 6.850%, 6/15/14
(Alternative Minimum Tax) Aaa 6/02 at 102 284,726
The Union County Utilities Authority, (New Jersey), Solid Waste
System Revenue Bonds, 1991 Series A:
195,000 7.100%, 6/15/06 (Alternative Minimum Tax) A- 6/02 at 102 200,349
1,100,000 7.200%, 6/15/14 (Alternative Minimum Tax) A- 6/02 at 102 1,110,043
100,000 University of Medicine and Dentistry of New Jersey Bonds, Series E,
6.500%, 12/01/18 (Pre-refunded to 12/01/01) AA 12/01 at 102 110,382
300,000 The Wanaque Borough Sewage Authority, (Passaic County, New Jersey),
Sewer Revenue Bonds, (Series 1992), (Bank Qualified),
7.000%, 12/01/21 Baa1 12/02 at 102 317,703
Delaware River Port Authority, Revenue Bonds, Series of 1995:
550,000 5.400%, 1/01/15 Aaa 1/06 at 102 532,829
1,000,000 5.500%, 1/01/26 Aaa 1/06 at 102 961,250
1,175,000 Virgin Islands Housing Finance Authority, Single Family Mortgage
Revenue Refunding Bonds, (GNMA Mortgage-Backed Securities
Program), 1995 Series A, 6.450%, 3/01/16
(Alternative Minimum Tax) AAA 3/05 at 102 1,192,002
2,000,000 Commonwealth of Puerto Rico, Public Improvement Bonds of 1995
(General Obligation Bonds), 5.750%, 7/01/24 Aaa 7/05 at 101 1/2 2,002,300
1,000,000 Puerto Rico Aqueduct and Sewer Authority, Revenue Bonds, Series
1988A, 7.875%, 7/01/17 (Pre-refunded to 7/01/98) AAA 7/98 at 102 1,090,369
60,000 Puerto Rico Highway and Transportation Authority, Highway Revenue
Bonds, (Series T), 6.625%, 7/01/18 (Pre-refunded to 7/01/02) A 7/02 at 101 1/2 66,899
Puerto Rico Electric Power Authority, Power Revenue Bonds, Series P:
790,000 7.000%, 7/01/07 A- No Opt. Call 896,333
1,875,000 7.000%, 7/01/21 (Pre-refunded to 7/01/01) Aaa 7/01 at 102 2,107,518
1,500,000 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds,
Series Z, 5.250%, 7/01/21 A- 7/05 at 100 1,361,685
1,000,000 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Hospital
Revenue Bonds, 1995 Series A, (Hospital Auxilio Mutuo Obligated
Group Project), 6.250%, 7/01/16 Aaa 1/05 at 102 1,043,900
- ------------------------------------------------------------------------------------------------------------------------------------
$ 54,005,000 Total Investments -- (Cost $54,837,515) -- 95.8% 55,837,089
==============----------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TEMPORARY INVESTMENT IN SHORT-TERM
MUNICIPAL SECURITIES -- 3.1%
$ 500,000 New Jersey Economic Development Authority, Dock Facility
Revenue Refunding Bonds, (Bayonne/IMTT-Bayonne Project),
Series 1993A, Variable Rate Demand Bonds,
3.400%, 12/01/27+ VMIG-1 $ 500,000
1,300,000 The Port Authority of New York and New Jersey, Versatile
Structure Obligations, Series 2, Variable Rate Demand Bonds,
3.600%, 5/01/19+ A-1+ 1,300,000
- -----------------------------------------------------------------------------------------------------------------------
$ 1,800,000 Total Temporary Investments -- 3.1% 1,800,000
- -----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.1% 636,205
- -----------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $58,273,294
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 21 $24,016,803 43%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 5 3,216,027 6
PORTFOLIO OF A+ A1 5 6,149,797 11
INVESTMENTS: A, A- A, A2, A3 10 10,705,223 19
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 4,575,537 8
TEMPORARY BB+, BB, BB- Ba1, Ba, Ba2, Ba3 1 809,608 2
INVESTMENTS): Non-rated Non-rated 4 6,364,094 11
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL 50 $55,837,089 100%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard &Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed is
that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
33
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
PENNSYLVANIA
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,500,000 Pennsylvania Economic Development Financing Authority
(Sun Company, Inc. (R&M) Project) Series 1994A,
7.600%, 12/01/24 (Alternative Minimum Tax) Baa1 12/04 at 102 $ 2,754,875
750,000 Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds (Thomas Jefferson University--Life Sciences Building
Project), 1989 Series A, 6.000%, 7/01/19 Aa 7/99 at 102 755,183
600,000 Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 1991-32, 7.150%, 4/01/15 AA+ 10/01 at 102 637,938
1,250,000 Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 1996-50A, 6.000%, 10/01/13 AA+ 4/06 at 102 1,254,038
2,000,000 Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 1996-51, 6.375%, 4/01/28
(Alternative Minimum Tax) AA+ 4/06 at 102 2,020,280
1,390,000 Pennsylvania Intergovernmental Cooperative Authority
(City of Philadelphia Funding Program) Series of 1994,
7.000%, 6/15/05 Aaa No Opt. Call 1,594,122
1,500,000 Pennsylvania Intergovernmental Cooperative Authority Special
Tax Revenue Refunding Bonds (City of Philadelphia Funding
Program) Series of 1996, 5.500%, 6/15/20 Aaa 6/06 at 100 1,446,810
2,300,000 Pennsylvania Turnpike Commission, Pennsylvania Turnpike
Revenue Bonds, Series O of 1992, 5.500%, 12/01/17 Aaa 12/02 at 102 2,201,054
1,475,000 Allegheny County Hospital Development Authority (Allegheny
County, Pennsylvania), Hospital Revenue Bonds, Series Q
(Allegheny Valley Hospital, Sublessee), 7.000%, 8/01/15 A No Opt. Call 1,638,209
1,500,000 Allegheny County Hospital Development Authority, (Allegheny
County, Pennsylvania) Health and Education Revenue Bonds,
Series 1992 (The Rehabilitation Institute of Pittsburgh
Project), 7.000%, 6/01/22 BBB 6/02 at 102 1,521,420
3,000,000 Allegheny County Residential Finance Authority Mortgage
Revenue Bonds (FHA Insured Mortgage, Ladies Grand Army
of the Republic Health Facility Project) 1995 Series G,
6.350%, 10/01/36 AAA 10/05 at 100 3,015,180
2,000,000 Allegheny County Residential Finance Authority, Single Family
Mortgage Revenue Bonds, 1994 Series Y, 0.000%, 5/01/27
(Alternative Minimum Tax) Aaa No Opt. Call 231,280
2,000,000 Armstrong County Hospital Authority (Armstrong County,
Pennsylvania), Health Center Revenue Refunding Bonds,
Series 1991 (Canterbury Place Project), 6.500%, 12/01/21 Aaa 12/01 at 100 2,111,480
1,000,000 Bucks County Community College Authority, Bucks County,
Pennsylvania, College Building Revenue and Refunding
Bonds, Series of 1992, 6.250%, 6/15/14 Aa 6/02 at 100 1,020,300
2,850,000 Deer Lakes School District (Allegheny County, Pennsylvania),
General Obligation Bonds, Series of 1995, 6.350%, 1/15/14 Aaa 1/04 at 100 2,970,812
800,000 Greater Lebanon Refuse Authority, Lebanon County,
Pennsylvania Solid Waste Revenue Bonds, Series of 1992,
7.000%, 11/15/04 A- 11/02 at 100 846,440
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 3,500,000 Indiana County Industrial Development Authority Pollution
Control Refunding Revenue Bonds (New York State Electric
and Gas Corporation Project), 1994 Series A,
6.000%, 6/01/06 Aaa No Opt. Call $ 3,728,375
3,000,000 Indiana County Industrial Development Authority Pollution
Control Refunding Revenue Bonds, Series 1995 (Pennsylvania
Electric Company Project), 5.350%, 11/01/10 Aaa No Opt. Call 2,972,310
950,000 Luzerne County Industrial Development Authority Exempt
Facilities Revenue Bonds, 1992 Series B (Pennsylvania Gas and
Water Company Project), 7.125%, 12/01/22 (Alternative
Minimum Tax) Baa1 12/02 at 102 995,087
1,500,000 Luzerne County Industrial Development Authority Exempt
Facilities Revenue Refunding Bonds, 1994 Series A
(Pennsylvania Gas and Water Company Project), 7.000%,
12/01/17 (Alternative Minimum Tax) Aaa 12/04 at 102 1,655,520
2,000,000 McKeesport Area School District (Allegheny County,
Pennsylvania) General Obligation Bonds, Series of 1996A,
6.000%, 10/01/25 (WI) Aaa 10/06 at 100 2,005,080
3,000,000 County of Montgomery, Pennsylvania, General Obligation
Bonds, Series A of 1995, 6.100%, 10/15/25 Aaa 10/00 at 100 3,060,270
3,000,000 Montgomery County Higher Education and Health Authority
Mortgage Revenue Bonds, Series of 1996 (Waverly Heights
Project), 6.375%, 1/01/26 BBB 1/06 at 101 2,935,500
1,800,000 Northampton County Higher Education Authority, University
Revenue Bonds, Series of 1991 (Lehigh University),
6.900%, 10/15/06 Aaa 10/01 at 102 1,982,268
1,000,000 Northumberland County Industrial Development Authority
Exempt Facilities Revenue Bonds, 1993 Series (Roaring Creek
Water Company Project), 6.375%, 10/15/23 (Alternative
Minimum Tax) N/R 10/03 at 102 929,230
2,000,000 Philadelphia Authority for Industrial Development Project
Revenue Refunding Bonds (PGH Development Corporation),
Series of 1993, 5.250%, 7/01/17 AA 7/03 at 102 1,833,620
2,000,000 City of Philadelphia, Pennsylvania Gas Works Revenue Bonds,
Fourteenth Series, 6.375%, 7/01/14 Aaa 7/03 at 102 2,091,100
2,750,000 The Hospitals and Higher Education Facilities Authority of
Philadelphia Hospital Revenue Bonds, Series A of 1993
(Temple University Hospital), 6.625%, 11/15/23 A- 11/03 at 102 2,789,600
1,275,000 The Hospitals and Higher Education Facilities Authority of
Philadelphia Hospital Revenue Refunding Bonds, Series A of
1996 (St. Agnes Medical Center/Franciscan Health System
Project), 5.250%, 7/01/10 Aaa 7/98 at 100 1,225,058
3,000,000 Urban Redevelopment Authority of Pittsburgh Home
Improvement Loan Bonds, 1995 Series A, 6.375%, 8/01/18
(Alternative Minimum Tax) A 8/05 at 102 3,005,880
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
PENNSYLVANIA--CONTINUED
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1,100,000 Urban Redevelopment Authority of Pittsburgh Mortgage
Revenue Bonds, 1994 Series A, 6.625%, 4/01/22 (Alternative
Minimum Tax) A1 4/04 at 102 $1,115,136
500,000 Saint Mary Hospital Authority Hospital Revenue Bonds, Series
1992A, (Franciscan Health System/Saint Mary Hospital of
Langhorne, Inc.), 6.500%, 7/01/12 Aaa 7/02 at 102 533,200
230,000 Health Care Facilities Authority of Sayre (Pennsylvania),
Series 1991A Revenue Bonds, Guthrie Healthcare System,
7.100%, 3/01/17 Aaa 3/01 at 102 251,586
350,000 Washington County Hospital Authority, Hospital Revenue
Bonds, Series 1992 (Monongahela Valley Hospital, Inc.
Project), 6.750%, 12/01/08 A 4/02 at 102 366,162
935,000 The Municipal Authority of the Borough of West View
(Allegheny County, Pennsylvania), Special Obligation Bonds,
Series of 1985A, 9.500%, 11/15/14 Aaa No Opt. Call 1,293,824
600,000 The General Municipal Authority of the City of Wilkes-Barre,
College Misericordia Revenue Bonds, Refunding Series A of
1992, 7.750%, 12/01/12 N/R 12/00 at 100 642,317
- --------------------------------------------------------------------------------------------------------------
$61,405,000 Total Investments -- (cost $59,398,291) -- 95.5% 61,430,544
===========---------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 4.5% 2,868,345
- --------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $64,298,889
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 18 $34,369,329 56%
RATINGS** AA-, AA, AA- Aa1, Aa, Aa2, Aa3 6 7,521,359 12
PORTFOLIO OF A+ A1 1 1,115,136 2
INVESTMENTS: A, A- A, A2, A3 5 8,646,291 14
BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 8,206,882 13
Non-rated Non-rated 2 1,571,547 3
- --------------------------------------------------------------------------------------------------------------
TOTAL 36 $61,430,544 100%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R -- Investment is not rated.
(WI) Security purchased on a when-issued basis (note 1).
See accompanying notes to financial statements.
36
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
VIRGINIA
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Metropolitan Washington Airports Authority, Airport System
Revenue Bonds, Series 1992A:
$1,500,000 6.625%, 10/01/19 (Alternative Minimum Tax) Aaa 10/02 at 102 $1,579,935
1,500,000 6.250%, 10/01/21 (Alternative Minimum Tax) Aaa 10/02 at 102 1,526,205
1,000,000 Metropolitan Washington Airports Authority, Airport System
Revenue Bonds, Series 1994A, 5.750%, 10/01/20
(Alternative Minimum Tax) Aaa 10/04 at 102 985,150
2,260,000 City of Virginia Beach Development Authority (Virginia),
Hospital Revenue Bonds (Sentara Bayside Hospital),
Series 1991, 6.300%, 11/01/21 Aa 11/01 at 102 2,283,933
800,000 Virginia College Building Authority, Educational Facilities
Revenue Bonds (Randolph-Macon College Project), Series of
1992, 6.625%, 5/01/13 A- 5/02 at 102 838,352
Virginia College Building Authority, Educational Facilities
Revenue Bonds (The Washington and Lee University Project),
Series of 1994:
1,250,000 5.750%, 1/01/14 Aa 1/04 at 102 1,247,888
1,000,000 5.800%, 1/01/24 Aa 1/04 at 102 991,130
650,000 Virginia Housing Development Authority, Commonwealth
Mortgage Bonds, 1990 Series B, Subseries B-4,
6.850%, 7/01/17 Aa1 1/00 at 102 672,458
4,000,000 Virginia Housing Development Authority, Commonwealth
Mortgage Bonds, 1992 Series A, 7.150%, 1/01/33 Aa1 1/02 at 102 4,249,760
800,000 Virginia Housing Development Authority, Multi-Family
Housing Bonds, 1992 Series D, 6.800%, 11/01/09 AA+ 5/02 at 102 845,696
1,090,000 Virginia Public Building Authority, State Building Revenue
Bonds, Series 1991A, 6.500%, 8/01/11 Aa 8/01 at 102 1,196,624
1,000,000 Virginia Resources Authority, Sewer System Revenue Bonds,
1995 Series A, (Hopewell Regional Wastewater Treatment
Facility Project), 6.000%, 10/01/25
(Alternative Minimum Tax) AA 10/05 at 102 980,340
1,960,000 Virginia Resources Authority, Solid Waste Disposal System
Revenue Bonds, (County of Prince William, Virginia-
Refunding), 1995 Series A, 5.500%, 4/01/15 AA 4/05 at 102 1,883,599
1,500,000 Virginia Resources Authority, Water and Sewer System Revenue
Bonds, 1995 Series A (Sussex County Project),
5.600%, 10/01/25 AA 10/05 at 102 1,426,590
800,000 Virginia Resources Authority, Water System Refunding Revenue
Bonds, 1992 Series A, 6.450%, 4/01/13 AA 4/02 at 102 842,096
1,000,000 Town of Abingdon, Virginia, General Obligation Capital
Improvement Bonds, Series 1992, 6.250%, 8/01/12 A 8/02 at 102 1,036,570
2,060,000 Industrial Development Authority of Albemarle County,
Virginia, Hospital Refunding Revenue Bonds (Martha Jefferson
Hospital), Series 1993, 5.875%, 10/01/13 A 10/03 at 102 2,018,409
2,250,000 Capital Region Airport Commission, Richmond (Virginia),
International Airport Projects, Airport Revenue Bonds,
Series 1995A, 5.625%, 7/01/25 A aa 7/05 at 102 2,202,705
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
VIRGINIA--CONTINUED
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 750,000 Charlottesville-Albemarle Airport Authority, (Virginia), Airport
Revenue Refunding Bonds, Series 1995, 6.125%, 12/01/13
(Alternative Minimum Tax) BBB 12/05 at 102 731,955
2,500,000 Chesapeake Bay Bridge and Tunnel District, General Resolution
Revenue Bonds, Refunding Series 1991, 6.375%, 7/01/22
(Pre-refunded to 7/01/01) Aaa 7/01 at 102 2,732,575
1,000,000 Industrial Development Authority of Covington-Alleghany
County, Virginia, Hospital Facility Revenue Bonds,
(Alleghany Regional Hospital) Series 1992, 6.625%, 4/01/12
(Pre-refunded to 4/01/02) A- 4/02 at 102 1,105,070
1,700,000 County of Cumberland, Virginia, Certificates of Participation,
Series 1994, 5.480%, 7/15/97 N/R No Opt. Call 1,702,023
1,460,000 Industrial Development Authority of Fairfax County, Virginia,
Hospital Revenue Refunding Bonds, (Inova Health System
Hospitals Project) Series 1993A, 5.000%, 8/15/13 Aaa No Opt. Call 1,372,969
3,250,000 Fairfax County (Virginia) Water Authority, Water Refunding
Revenue Bonds, Series 1992, 5.750%, 4/01/29 Aa 4/02 at 100 3,127,183
3,000,000 Hampton Roads Regional Jail Authority, Regional Jail Facility
Revenue Bonds, Series 1996A, 5.500%, 7/01/24 Aaa 7/06 at 102 2,890,140
500,000 Industrial Development Authority of the City of Hampton,
Virginia, Hospital Revenue and Refunding Bonds (Sentara
Hampton General Hospital), Series 1994A, 6.500%, 11/01/12 A 11/04 at 102 514,055
2,500,000 Henrico County, Virginia, Water and Sewer System Refunding
Revenue Bonds, Series 1992, 6.250%, 5/01/13 AA- 5/02 at 100 2,554,675
1,000,000 Loudoun County Sanitation Authority (Virginia), Water and
Sewer System Revenue Bonds, Refunding Series 1992,
6.250%, 1/01/16 Aaa 1/03 at 102 1,035,970
1,000,000 Industrial Development Authority of Loudoun County, Virginia,
University Facilities Revenue Refunding Bonds (The George
Washington University), Series of 1992, 6.250%, 5/15/22 A1 5/02 at 102 1,021,810
1,500,000 Industrial Development Authority of the City of Lynchburg,
Virginia, Educational Facilities Revenue Bonds, (Randolph-
Macon Women's College), Series 1993, 5.875%, 9/01/13 A 9/03 at 102 1,490,325
2,080,000 Peninsula Ports Authority of Virginia, Health System Revenue
and Refunding Bonds (Riverside Health System Project),
Series 1992A, 6.625%, 7/01/18 Aa 7/02 at 102 2,173,496
2,500,000 Prince William County Park Authority, (Virginia), Revenue
Bonds, Series 1994, 6.875%, 10/15/16 A- 10/04 at 102 2,669,775
1,000,000 Prince William County Service Authority (Virginia), Water and
Sewer System Revenue Bonds, Series 1991, 6.000%, 7/01/29 Aaa 7/01 at 100 1,003,940
3,005,000 City of Richmond, Virginia, General Obligation Public
Improvement Bonds, Series 1993B, 5.500%, 7/15/23 AA 7/03 at 102 2,877,226
1,000,000 Industrial Development Authority of the City of Roanoke,
Virginia, Hospital Revenue Bonds (Roanoke Memorial Hospitals,
Community Hospital of Roanoke Valley and Franklin Memorial Hospital
Project), Series 1990, 6.500%, 7/01/25 (Pre-refunded to 7/01/00) Aaa 7/00 at 100 1,069,740
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL RAT- OPT. CALL MARKET
AMOUNT DESCRIPTION INGS** PROVISIONS* VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Industrial Development Authority of Rockingham County,
Virginia, Educational Facilities Revenue Bonds, (Bridgewater
College), Series 1993:
$ 400,000 5.600%, 10/01/06 Baa1 10/03 at 102 $ 399,320
400,000 5.700%, 10/01/07 Baa1 10/03 at 102 399,472
2,750,000 Southeastern Public Service Authority of Virginia, Senior
Revenue Bonds, Series 1993, (Regional Solid Waste System),
6.000%, 7/01/13 (Alternative Minimum Tax) A- 7/03 at 102 2,702,590
480,000 Suffolk Redevelopment Authority Multifamily Housing (Chase
Heritage Project), 7.000%, 7/01/24 (Mandatory Put 7/01/04) Baa3 7/02 at 104 503,093
4,000,000 Upper Occoquan Sewerage Authority (Virginia), Regional
Sewerage System Revenue Refunding Bonds, Series of 1993,
5.000%, 7/01/21 Aaa 1/04 at 102 3,597,800
800,000 Puerto Rico Highway and Transportation Authority,
Highway Revenue Bonds, (Series T), 6.625%, 7/01/18
(Pre-refunded to 7/01/02) A 7/02 at 101 1/2 891,992
- ------------------------------------------------------------------------------------------------------------------------------------
$ 64,995,000 Total Investments -- (Cost $62,627,296) -- 98.7% 65,374,634
================--------------------------------------------------------------------------------------------------------------------
TEMPORARY INVESTMENTS IN SHORT-TERM MUNICIPAL SECURITIES -- 0.3%
$ 200,000 Peninsula Ports Authority of Virginia Refunding Bonds
================ (Dominion Terminal Associates Project -- Series 1987C),
Variable Rate Demand Bonds, 3.550%, 7/01/16+ P-1 200,000
- ------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1.0% 645,636
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets -- 100% $ 66,220,270
====================================================================================================================================
</TABLE>
39
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
VIRGINIA--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
NUMBER OF MARKET MARKET
STANDARD & POOR'S MOODY'S SECURITIES VALUE PERCENT
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF AAA Aaa 11 $19,997,129 31%
RATINGS** AA+, AA, AA- Aa1, Aa, Aa2, Aa3 15 27,352,694 42
PORTFOLIO OF A+ A1 1 1,021,810 2
INVESTMENTS A, A- A, A2, A3 9 13,267,138 20
(EXCLUDING BBB+, BBB, BBB- Baa1, Baa, Baa2, Baa3 4 2,033,840 3
TEMPORARY Non-rated Non-rated 1 1,702,023 2
INVESTMENTS):
- -------------------------------------------------------------------------------------------------------
TOTAL 41 $65,374,634 100%
- -------------------------------------------------------------------------------------------------------
</TABLE>
* Optional Call Provisions: Dates (month and year) and prices of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
** Ratings: Using the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security.
The rate disclosed is that currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
40
<PAGE>
STATEMENT OF NET ASSETS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
(Unaudited) JULY 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
AZ FL MD MI
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1) $24,162,200 $61,600,722 $54,712,491 $32,207,224
Temporary investments in short-term municipal securities,
at amortized cost (note 1) 100,000 1,200,000 700,000 700,000
Cash 47,075 120,935 - 236,738
Receivables:
Interest 271,118 891,455 521,768 448,885
Shares sold - - 35,401 226,206
Investments sold 10,000 - 61,664 -
Deferred organization costs (note 1) 3,554 3,414 4,027 4,506
Other assets 4,939 4,090 6,368 5,662
----------- ----------- ----------- -----------
Total assets 24,598,886 63,820,616 56,041,719 33,829,221
----------- ----------- ----------- -----------
LIABILITIES
Payables:
Investments purchased 503,583 1,006,372 - 921,086
Shares reacquired - 14,486 293 -
Accrued expenses:
Management fees (note 6) 11,083 28,771 25,890 15,061
Other 33,839 60,844 92,806 50,584
Dividends payable 55,430 137,484 145,333 89,938
----------- ----------- ----------- -----------
Total liabilities 603,935 1,247,957 264,322 1,076,669
----------- ----------- ----------- -----------
Net assets (note 7) $23,994,951 $62,572,659 $55,777,397 $32,752,552
=========== =========== =========== ===========
Class A Shares (note 1)
Net assets $ 4,683,638 $ 8,927,494 $ 9,335,001 $ 4,923,363
=========== =========== =========== ===========
Shares outstanding 448,735 870,440 919,190 471,362
=========== =========== =========== ===========
Net asset value and redemption price per share $ 10.44 $ 10.26 $ 10.16 $ 10.44
=========== =========== =========== ===========
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price) $ 10.93 $ 10.74 $ 10.64 $ 10.93
=========== =========== =========== ===========
Class C Shares (note 1)
Net assets $ 482,826 $ 245,949 $ 1,712,343 $ 265,308
=========== =========== =========== ===========
Shares outstanding 46,633 24,076 168,755 25,435
=========== =========== =========== ===========
Net asset value, offering and redemption price per share $ 10.35 $ 10.22 $ 10.15 $ 10.43
=========== =========== =========== ===========
Class R Shares (note 1)
Net assets $18,828,487 $53,399,216 $44,730,053 $27,563,881
=========== =========== =========== ===========
Shares outstanding 1,815,543 5,201,347 4,400,123 2,637,250
=========== =========== =========== ===========
Net asset value and redemption price per share $ 10.37 $ 10.27 $ 10.17 $ 10.45
=========== =========== =========== ===========
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
STATEMENT OF NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NJ PA VA
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in municipal securities, at market value (note 1)............. $55,837,089 $61,430,544 $65,374,634
Temporary investments in short-term municipal securities,
at amortized cost (note 1).............................................. 1,800,000 - 200,000
Cash...................................................................... 233,336 4,204,181 105,065
Receivables:
Interest................................................................ 638,899 854,021 816,351
Shares sold............................................................. 18,136 48,228 42,060
Investments sold........................................................ - - -
Deferred organization costs (note 1)...................................... 3,794 4,108 2,825
Other assets.............................................................. 8,023 8,961 8,221
----------- ----------- -----------
Total assets......................................................... 58,539,277 66,550,043 66,549,156
----------- ----------- -----------
LIABILITIES
Payables:
Investments purchased................................................... - 1,971,027 -
Shares reacquired....................................................... 38 3,608 39,907
Accrued expenses:
Management fees (note 6)................................................ 26,961 29,682 30,575
Other................................................................... 72,264 77,731 88,182
Dividends payable......................................................... 166,720 169,106 170,222
----------- ----------- -----------
Total liabilities.................................................... 265,983 2,251,154 328,886
----------- ----------- -----------
Net assets (note 7)....................................................... $58,273,294 $64,298,889 $66,220,270
=========== =========== ===========
Class A Shares (note 1)
Net assets................................................................ $13,889,997 $ 7,907,452 $ 7,893,642
=========== =========== ===========
Shares outstanding........................................................ 1,372,220 762,543 762,402
=========== =========== ===========
Net asset value and redemption price per share............................ $ 10.12 $ 10.37 $ 10.35
=========== =========== ===========
Offering price per share (net asset value per share plus
maximum sales charge of 4.50% of offering price)........................ $ 10.60 $ 10.86 $ 10.84
=========== =========== ===========
Class C Shares (note 1)
Net assets................................................................ $ 1,938,675 $ 1,104,338 $ 975,023
=========== =========== ===========
Shares outstanding........................................................ 191,871 107,704 94,435
=========== =========== ===========
Net asset value, offering and redemption price per share.................. $ 10.10 $ 10.25 $ 10.32
=========== =========== ===========
Class R Shares (note 1)
Net assets................................................................ $42,444,622 $55,287,099 $57,351,605
=========== =========== ===========
Shares outstanding........................................................ 4,188,504 5,345,160 5,540,577
=========== =========== ===========
Net asset value and redemption price per share............................ $ 10.13 $ 10.34 $ 10.35
=========== =========== ===========
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
STATEMENT OF OPERATIONS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
Six months ended July 31, 1996 JULY 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
AZ FL MD MI
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 690,043 $ 1,746,592 $ 1,615,835 $ 978,358
Expenses:
Management fees (note 6) 64,478 166,678 151,547 90,983
12b-1 service fees--Class A (note 1) 5,208 8,957 10,223 5,395
12b-1 distribution and service fees--Class C (note 1) 1,880 919 8,069 1,284
Shareholders' servicing agent fees and expenses 11,541 29,177 32,487 17,117
Custodian's fees and expenses 18,523 21,281 28,495 17,569
Trustees' fees and expenses (note 6) 462 1,115 269 698
Professional fees 6,859 6,362 5,973 5,989
Shareholders' reports--printing and mailing expenses 4,730 11,625 11,006 10,697
Federal and state registration fees 3,267 2,332 3,601 5,184
Amortization of deferred organization costs (note 1) 3,444 3,584 3,801 3,918
Other expenses 1,492 2,912 2,719 2,150
---------- ----------- ----------- ---------
Total expenses before expense reimbursement 121,884 254,942 258,190 160,984
Expense reimbursement from investment adviser (note 6) (26,872) (17,779) (33,243) (30,237)
---------- ----------- ----------- ---------
Net expenses 95,012 237,163 224,947 130,747
---------- ----------- ----------- ---------
Net investment income 595,031 1,509,429 1,390,888 847,611
---------- ----------- ----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) 80,171 (191,644) 69,944 (132,211)
Net change in unrealized appreciation or depreciation
of investments (755,735) (1,542,928) (1,551,912) (850,846)
---------- ----------- ----------- ---------
Net gain (loss) from investments (675,564) (1,734,572) (1,481,968) (983,057)
---------- ----------- ----------- ---------
Net increase (decrease) in net assets from operations $ (80,533) $ (225,143) $ (91,080) $(135,446)
========== =========== =========== =========
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
STATEMENT OF OPERATIONS
Six months ended July 31, 1996
(Unaudited
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
NJ PA VA
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 1,705,372 $ 1,885,494 $ 1,945,718
----------- ----------- -----------
Expenses:
Management fees (note 6) 155,884 173,278 178,477
12b-1 service fees--Class A (note 1) 15,688 8,413 8,521
12b-1 distribution and service fees--Class C (note 1) 8,295 5,358 4,312
Shareholders' servicing agent fees and expenses 43,468 46,174 38,918
Custodian's fees and expenses 24,121 24,759 21,265
Trustees' fees and expenses (note 6) 372 1,130 509
Professional fees 7,398 7,350 9,960
Shareholders' reports--printing and mailing expenses 16,013 16,930 27,466
Federal and state registration fees 3,878 1,827 4,719
Amortization of deferred organization costs (note 1) 3,596 3,876 2,998
Other expenses 2,630 3,503 4,436
----------- ----------- -----------
Total expenses before expense reimbursement 281,343 292,598 301,581
Expense reimbursement from investment adviser (note 6) (44,790) (42,539) (45,370)
----------- ----------- -----------
Net expenses 236,553 250,059 256,211
----------- ----------- -----------
Net investment income 1,468,819 1,635,435 1,689,507
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
FROM INVESTMENTS
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (87,605) 336,310 (152,534)
Net change in unrealized appreciation or depreciation of
investments (1,453,280) (1,793,427) (1,407,357)
----------- ----------- -----------
Net gain (loss) from investments (1,540,885) (1,457,117) (1,559,891)
----------- ----------- -----------
Net increase (decrease) in net assets from operations $ (72,066) $ 178,318 $ 129,616
=========== =========== ===========
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited) NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
- ---------------------------------------------------------------------------------------------------------------------------------
AZ FL
- ----------------------------------------------------------------------------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
7/31/96 1/31/96 7/31/96 1/31/96
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 595,031 $ 1,030,283 $ 1,509,429 $ 2,868,644
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) 80,171 (27,336) (191,644) (140,189)
Net change in unrealized appreciation or depreciation
of investments (755,735) 1,629,699 (1,542,928) 4,780,693
------------- ----------- ----------- ------------
Net increase (decrease) in net assets from operations (80,533) 2,632,646 (225,143) 7,509,148
------------- ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (100,351) (101,157) (169,243) (148,024)
Class C (7,445) (6,237) (3,692) (5,956)
Clas R (478,991) (937,616) (1,347,434) (2,730,462)
From accumulated net realized gains from investment
transactions:
Class A - - - -
Class C - - - -
Class R - - - -
------------- ----------- ----------- ------------
Decrease in net assets from distributions to
shareholders (586,787) (1,045,010) (1,520,369) (2,884,442)
------------- ----------- ----------- ------------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 995,578 2,882,755 3,769,515 4,315,210
Class C 175,003 273,019 98,276 77,334
Class R 821,396 2,473,853 2,896,310 8,465,473
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 48,032 38,250 76,281 52,678
Class C 6,801 5,264 1,890 3,575
Class R 284,351 529,462 735,720 1,500,287
------------- ----------- ----------- ------------
2,331,161 6,202,603 7,577,992 14,414,557
------------- ----------- ----------- ------------
Cost of shares redeemed:
Class A (147,063) (303,388) (577,968) (173,983)
Class C (20,312) (3,168) (17,677) -
Class R (1,257,396) (1,449,215) (3,972,806) (11,564,633)
------------- ----------- ----------- ------------
(1,424,771) (1,755,771) (4,568,451) (11,738,616)
------------- ----------- ----------- ------------
Net increase (decrease) in net assets derived from
Fund share transactions 906,390 4,446,832 3,009,541 2,675,941
------------- ----------- ----------- ------------
Net increase (decrease) in net assets 239,070 6,034,468 1,264,029 7,300,647
Net assets at the beginning of period 23,755,881 17,721,413 61,308,630 54,007,983
------------- ----------- ----------- ------------
Net assets at the end of period $ 23,994,951 $23,755,881 $62,572,659 $ 61,308,630
============= =========== =========== ============
Balance of undistributed net investment income at
end of period $ 10,053 $ 1,809 $ 9,856 $ 20,796
============= =========== =========== ============
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
MD MI
- -----------------------------------------------------------------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
7/31/96 1/31/96 7/31/96 1/31/96
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,390,888 $ 2,553,861 $ 847,611 $ 1,588,746
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) 69,944 138,640 (132,211) 414,083
Net change in unrealized appreciation or depreciation
of investments (1,551,912) 3,998,568 (850,846) 2,255,770
------------ ----------- ------------ -----------
Net increase (decrease) in net assets from operations (91,080) 6,691,069 (135,446) 4,258,599
------------ ----------- ------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (195,799) (198,145) (104,973) (110,174)
Class C (32,415) (47,180) (5,262) (5,812)
Class R (1,142,660) (2,335,847) (734,750) (1,479,047)
From accumulated net realized gains from investment
transactions:
Class A - - - (9,042)
Class C - - - (536)
Class R - - - (88,511)
------------ ----------- ------------ -----------
Decrease in net assets from distributions to
shareholders (1,370,874) (2,581,172) (844,985) (1,693,122)
------------ ----------- ------------ -----------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 3,456,516 5,206,011 1,159,300 3,071,799
Class C 409,217 645,990 105,803 146,180
Class R 1,005,910 4,099,669 839,280 3,061,856
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 128,488 112,734 57,826 58,075
Class C 24,087 39,318 4,221 5,428
Class R 719,216 1,461,612 491,142 1,044,771
------------ ----------- ------------ -----------
5,743,434 11,565,334 2,657,572 7,388,109
------------ ----------- ------------ -----------
Cost of shares redeemed:
Class A (929,050) (350,679) (206,614) (171,433)
Class C (119,567) (195,323) (68,959) (4,206)
Class R (3,142,740) (4,647,731) (3,033,446) (3,009,162)
------------ ----------- ------------ -----------
(4,191,357) (5,193,733) (3,309,019) (3,184,801)
------------ ----------- ------------ -----------
Net increase (decrease) in net assets derived from
Fund share transactions 1,552,077 6,371,601 (651,447) 4,203,308
------------ ----------- ------------ -----------
Net increase (decrease) in net assets 90,123 10,481,498 (1,631,878) 6,768,785
Net assets at the beginning of period 55,687,274 45,205,776 34,384,430 27,615,645
------------ ----------- ------------ -----------
Net assets at the end of period $55,777,397 $55,687,274 $32,752,552 $ 34,384,430
============ =========== ============ ============
Balance of undistributed net investment income at
end of period $ 20,950 $ 936 $ 13,519 $ 10,893
============ =========== ============ ============
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
NJ PA
- ----------------------------------------------------------------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
7/31/96 1/31/96 7/31/96 1/31/96
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net investment income $ 1,468,819 $ 2,617,653 $ 1,635,435 $ 3,007,154
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (87,605) (30,019) 336,310 (36,684)
Net change in unrealized appreciation or depreciation
of investments (1,453,280) 3,249,789 (1,793,427) 4,855,692
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations (72,066) 5,837,423 178,318 7,826,162
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (313,893) (329,633) (160,008) (173,805)
Class C (35,567) (32,025) (21,440) (28,974)
Class R (1,121,588) (2,282,656) (1,392,116) (2,830,558)
From accumulated net realized gains from investment
transactions:
Class A - - - -
Class C - - - -
Class R - - - -
----------- ----------- ----------- -----------
Decrease in net assets from distributions to
shareholders (1,471,048) (2,644,314) (1,573,564) (3,033,337)
----------- ----------- ----------- -----------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 3,959,032 7,757,684 2,521,674 4,222,635
Class C 1,069,271 573,759 171,876 633,225
Class R 2,408,112 4,461,592 1,558,285 6,005,478
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 193,747 181,529 119,325 126,885
Class C 16,206 16,615 16,723 24,758
Class R 788,782 1,567,807 870,401 1,786,453
----------- ----------- ----------- -----------
8,435,150 14,558,986 5,258,284 12,799,434
----------- ----------- ----------- -----------
Cost of shares redeemed:
Class A (610,784) (406,168) (435,904) (281,318)
Class C (170,835) (32,865) (162,915) (105,804)
Class R (2,867,023) (5,070,204) (3,228,000) (6,418,284)
----------- ----------- ----------- -----------
(3,648,642) (5,509,237) (3,826,819) (6,805,406)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets derived from
Fund share transactions 4,786,508 9,049,749 1,431,465 5,994,028
----------- ----------- ----------- -----------
Net increase (decrease) in net assets 3,243,394 12,242,858 36,219 10,786,853
Net assets at the beginning of period 55,029,900 42,787,042 64,262,670 53,475,817
----------- ----------- ----------- -----------
Net assets at the end of period $58,273,294 $55,029,900 $64,298,889 $64,262,670
=========== =========== =========== ===========
Balance of undistributed net investment income at
end of period $ 5,899 $ 8,128 $ 67,522 $ 5,651
=========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
VA
- -----------------------------------------------------------------------------------------
6 months ended Year ended
7/31/96 1/31/96
- -----------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 1,689,507 $ 3,221,308
Net realized gain (loss) from investment transactions,
net of taxes, if applicable (notes 1 and 4) (152,534) 334,528
Net change in unrealized appreciation or depreciation
of investments (1,407,357) 4,882,314
----------- -----------
Net increase (decrease) in net assets from operations 129,616 8,438,150
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS (note 1)
From undistributed net investment income:
Class A (170,312) (191,806)
Class C (18,258) (23,926)
Class R (1,506,322) (2,997,681)
From accumulated net realized gains from investment
transactions:
Class A - (15,706)
Class C - (2,511)
Class R - (193,671)
------------ -----------
Decrease in net assets from distributions to
shareholders (1,694,892) (3,425,301)
------------ -----------
FUND SHARE TRANSACTIONS (note 2)
Net proceeds from sale of shares:
Class A 2,309,281 3,799,529
Class C 190,331 402,084
Class R 1,695,463 3,456,619
Net proceeds from shares issued to shareholders due to
reinvestment of distributions:
Class A 94,767 109,800
Class C 13,477 21,313
Class R 916,279 1,928,344
------------ -----------
5,219,598 9,717,689
------------ -----------
Cost of shares redeemed:
Class A (249,945) (543,599)
Class C (505) (54,845)
Class R (3,251,629) (5,446,943)
----------- -----------
(3,502,079) (6,045,387)
----------- -----------
Net increase (decrease) in net assets derived from
Fund share transactions 1,717,519 3,672,302
------------- -----------
Net increase (decrease) in net assets 152,243 8,685,151
Net assets at the beginning of period 66,068,027 57,382,876
------------ -----------
Net assets at the end of period $66,220,270 $66,068,027
=========== ===========
Balance of undistributed net investment income at
end of period $ 24,321 $ 29,706
=========== ===========
- -----------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements
48
<PAGE>
NOTES TO FINANCIAL STATEMENTS NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
(Unaudited) JULY 31, 1996
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.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
generally accepted accounting principles.
Securities Valuation
Portfolio securities for which market quotations are readily available are
valued at the mean between the quoted bid and asked prices or the yield
equivalent. Portfolio securities for which market quotations are not readily
available are valued at fair value by consistent application of methods
determined in good faith by the Board of Trustees. Temporary investments in
securities that have variable rate and demand features qualifying them as short-
term securities are traded and valued at amortized cost.
49
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
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 July
31, 1996, the Nuveen Arizona Tax-Free Value Fund, the Nuveen Florida Tax-Free
Value Fund, the Nuveen Michigan Tax-Free Value Fund and the Nuveen Pennsylvania
Tax-Free Value Fund had purchase commitments of $503,583, $1,006,372, $921,086
and $1,971,027, 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, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
when required for federal income tax purposes.
Dividends and Distributions to Shareholders
Tax-exempt 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 capital gains and/or market discount from investment transactions are
distributed to shareholders not less frequently than annually. Furthermore,
capital gains are distributed only to the extent they exceed available capital
loss carryovers.
Distributions to shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount 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 occur and will be classified as either distributions in
excess of net investment income, distributions in excess of net realized gains
and/or distributions in excess of ordinary taxable income from investment
transactions, where applicable.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes and intends to
comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies by distributing to shareholders all of its tax-
exempt net investment income, in addition to any significant amounts of net
realized capital gains and/or market discount from investment transactions. The
Funds currently consider significant net realized capital gains and/or market
discount as amounts in excess of $.001 per share. Furthermore, each Fund intends
to satisfy conditions which will
50
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
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.
Deferred Organization Costs
Costs incurred by the Trust in connection with its organization and initial
registration of shares were deferred and are being amortized over a 60-month
period beginning February 28, 1992. If any of the initial shares of each Fund
are redeemed during this period, the proceeds of the redemption will be reduced
by the pro-rata share of the unamortized organization costs as of the date of
redemption.
Flexible Sales Charge Program
Effective September 6, 1994, each Fund commenced offering Class "A" Shares and
Class "C" Shares. Class "A" Shares incur a front-end sales charge and an annual
12b-1 service fee. Class "C" Shares are sold without a sales charge but incur
annual 12b-1 distribution and service fees. An investor purchasing Class "C"
Shares agrees to pay a contingent deferred sales charge ("CDSC") of 1% if Class
"C" Shares are redeemed within 12 months of purchase.
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.
Expense Allocation
Expenses of the Funds that are not directly attributable to a specific 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.
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 119 Disclosure about Derivative
Financial Instruments and Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain derivative financial
instruments including futures, forward, swap, and option contracts, and other
financial instruments with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may do so in the future,
they did not make any such investments during the six months ended July 31,
1996.
51
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. FUND SHARES
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
AZ FL
-------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
7/31/96 1/31/96 7/31/96 1/31/96
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A........................................ 95,720 274,843 368,010 420,409
Class C........................................ 17,173 26,227 9,680 7,638
Class R........................................ 79,301 239,176 281,558 824,725
Shares issued to shareholders due to
reinvestment of distributions:
Class A........................................ 4,594 3,655 7,421 5,125
Class C........................................ 656 505 184 350
Class R........................................ 27,344 51,292 71,339 147,052
-------- -------- -------- ----------
224,788 595,698 738,192 1,405,299
-------- -------- -------- ----------
Shares redeemed:
Class A........................................ (14,203) (29,122) (56,672) (16,925)
Class C........................................ (1,971) (313) (1,759) -
Class R........................................ (121,856) (139,521) (387,156) (1,126,197)
-------- -------- -------- ----------
(138,030) (168,956) (445,587) (1,143,122)
-------- -------- -------- ----------
Net increase (decrease)......................... 86,758 426,742 292,605 262,177
======== ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
MD MI
-------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
7/31/96 1/31/96 7/31/96 1/31/96
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A........................................ 340,366 514,083 110,746 294,831
Class C........................................ 40,084 63,846 10,100 13,867
Class R........................................ 98,219 406,673 79,818 293,923
Shares issued to shareholders due to
reinvestment of distributions:
Class A........................................ 12,609 11,066 5,514 5,538
Class C........................................ 2,365 3,894 403 521
Class R........................................ 70,366 144,632 46,749 99,905
-------- -------- -------- ----------
564,009 1,144,194 253,330 708,585
-------- -------- -------- ----------
Shares redeemed:
Class A........................................ (91,734) (34,362) (19,757) (16,428)
Class C........................................ (11,726) (19,328) (6,631) (401)
Class R........................................ (308,765) (459,618) (292,035) (288,460)
-------- -------- -------- ----------
(412,225) (513,308) (318,423) (305,289)
-------- -------- -------- ----------
Net increase (decrease)......................... 151,784 630,886 (65,093) 403,296
======== ======== ======== ==========
</TABLE>
52
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
NJ PA
- -------------------------------------------------------------------------------------------------------------
6 months ended Year ended 6 months ended Year ended
7/31/96 1/31/96 7/31/96 1/31/96
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold:
Class A 389,135 765,342 244,231 411,858
Class C 104,875 56,488 17,037 62,079
Class R 236,000 440,121 151,468 585,804
Shares issued to shareholders due to
reinvestment of distributions:
Class A 19,066 17,820 11,521 12,297
Class C 1,597 1,638 1,632 2,439
Class R 77,435 154,754 84,205 174,784
-------- --------- ------- ---------
828,108 1,436,163 510,094 1,249,261
-------- --------- ------- ---------
Shares redeemed:
Class A (60,708) (40,094) (41,975) (27,436)
Class C (17,170) (3,290) (16,079) (10,542)
Class R (283,077) (500,152) (314,520) (628,872)
-------- --------- ------- ---------
(360,955) (543,536) (372,574) (666,850)
-------- --------- ------- ---------
Net increase (decrease) 467,153 892,627 137,520 582,411
======== ========= ======= =========
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
VA
- ------------------------------------------------------------------------------
6 months ended Year ended
7/31/96 1/31/96
- ------------------------------------------------------------------------------
<S> <C> <C>
Shares sold:
Class A 223,468 369,049
Class C 18,561 39,142
Class R 165,250 336,826
Shares issued to shareholders due to
reinvestment of distributions:
Class A 9,169 10,624
Class C 1,307 2,074
Class R 88,523 186,098
-------- ---------
506,278 943,813
-------- ---------
Shares redeemed:
Class A (24,243) (52,547)
Class C (50) (5,359)
Class R (317,156) (529,723)
-------- ---------
(341,449) (587,629)
-------- ---------
Net increase (decrease) 164,829 356,184
======== =========
- ------------------------------------------------------------------------------
</TABLE>
53
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. DISTRIBUTIONS TO SHAREHOLDERS
On August 9, 1996, the Funds declared dividend
distributions from their tax-exempt net investment income
which were paid on September 3, 1996, to shareholders of
record on August 9, 1996, as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------
AZ FL MD MI
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividend per share:
Class A $ .0420 $ .0410 $ .0405 $ .0425
Class C .0350 .0345 .0340 .0355
Class R .0435 .0430 .0425 .0445
=========== =========== =========== ==========
- ----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
NJ PA VA
- ----------------------------------------------------------------
<S> <C> <C> <C>
Dividend per share:
Class A $ .0420 $ .0435 $ .0430
Class C .0355 .0365 .0365
Class R .0440 .0455 .0450
=========== =========== ===========
- ----------------------------------------------------------------
</TABLE>
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments
in municipal securities and temporary municipal
investments for the six months ended July 31, 1996, were
as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
AZ FL MD MI
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASES
Investments in municipal securities $ 3,291,056 $ 10,262,905 $ 3,186,028 $ 5,199,868
Temporary municipal investments 4,700,000 7,300,000 4,600,000 2,000,000
SALES
Investments in municipal securities 1,716,359 7,083,827 1,920,358 5,262,625
Temporary municipal investments 4,600,000 6,100,000 3,900,000 1,900,000
=========== ============ =========== ===========
- -----------------------------------------------------------------------------------------------------
</TABLE>
54
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
NJ PA VA
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
PURCHASES
Investments in municipal securities $8,436,379 $19,485,655 $15,963,730
Temporary municipal investments 9,700,000 8,200,000 5,805,000
SALES
Investments in municipal securities 4,218,392 21,327,024 14,212,239
Temporary municipal investments 7,900,000 10,200,000 5,605,000
========== =========== ===========
- --------------------------------------------------------------------------------
</TABLE>
At July 31, 1996, the identified cost of investments owned for federal
income tax purposes was the same as the cost for financial reporting
purposes for each Fund.
At January 31, 1996, the Funds' last fiscal year end, the following
Funds had unused capital loss carryforwards available for federal
income tax purposes to be applied against future capital gains, if
any. If not applied, the carryovers will expire as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
AZ FL MD
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Expiration year:
2003 $127,444 $ 87,166 $203,995
2004 17,690 141,494 377,963
-------- -------- --------
Total $145,134 $228,660 $581,958
======== ======== ========
- ------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
NJ PA
- --------------------------------------------------------------------
<S> <C> <C>
Expiration year:
2003 $ 35,921 $377,256
2004 419,632 468,676
-------- --------
Total $455,553 $845,932
======== ========
- --------------------------------------------------------------------
</TABLE>
55
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of
investments at July 31, 1996, were as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
AZ FL MD MI
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized:
Appreciation $ 795,624 $2,136,894 $1,851,506 $1,071,352
Depreciation (170,355) (255,764) (277,224) (77,060)
---------- ---------- ---------- ----------
Net unrealized appreciation $ 625,269 $1,881,130 $1,574,282 $ 994,292
========== ========== ========== ==========
- ----------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
NJ PA VA
- ---------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized:
Appreciation $1,492,929 $2,208,247 $2,964,213
Depreciation (493,355) (175,994) (216,875)
---------- ---------- ----------
Net unrealized appreciation $ 999,574 $2,032,253 $2,747,338
========== ========== ==========
- ---------------------------------------------------------------------
</TABLE>
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Trust's investment management agreement with Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of The John Nuveen
Company, each Fund pays to the Adviser an annual management fee,
payable monthly, at the rates set forth below which are based upon the
average daily net asset value of each Fund:
<TABLE>
<CAPTION>
- ------------------------------------------------------
Average daily net asset value Management fee
- ------------------------------------------------------
<S> <C>
For the first $125,000,000 .55 of 1%
For the next $125,000,000 .5375 of 1
For the next $250,000,000 .525 of 1
For the next $500,000,000 .5125 of 1
For the next $1,000,000,000 .5 of 1
For net assets over $2,000,000,000 .475 of 1
- ------------------------------------------------------
</TABLE>
From inception of the Trusts on December 13, 1991 through July 31,
1996, the Adviser waived part of its management fees or reimbursed
certain expenses of each Fund in order to limit total expenses to .75
of 1% of the average daily net 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, 1997.
56
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
The management fee 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.
7. COMPOSITION OF NET ASSETS
At July 31, 1996, 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 $23,434,238 $61,101,976 $54,694,178 $31,699,688
Balance of undistributed net investment income 10,053 9,856 20,950 13,519
Accumulated net realized gain (loss) from investment
transactions (74,609) (420,303) (512,013) 45,053
Net unrealized appreciation of investments 625,269 1,881,130 1,574,282 994,292
----------- ----------- ----------- -----------
Net assets $23,994,951 $62,572,659 $55,777,397 $32,752,552
=========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
NJ PA VA
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Capital paid-in $57,838,337 $62,734,553 $63,590,890
Balance of undistributed net investment income 5,899 67,522 24,321
Accumulated net realized gain (loss) from investment
transactions (570,516) (535,439) (142,279)
Net unrealized appreciation of investments 999,574 2,032,253 2,747,338
----------- ----------- -----------
Net assets $58,273,294 $64,298,889 $66,220,270
=========== =========== ===========
- -------------------------------------------------------------------------------------------------
</TABLE>
57
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
8. INVESTMENT COMPOSITION
Each Fund invests in municipal securities which include general
obligation, escrowed and revenue bonds. At July 31, 1996, 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:
Health Care Facilities 15% 17% 14% 21%
Housing Facilities 10 19 22 16
Water/Sewer Facilities 10 10 3 14
Pollution Control 11 2 6 7
Educational Facilities 14 1 4 4
Transportation 2 6 10 4
Lease Rental Facilities 7 1 5 3
Electric Utilities 2 7 1 3
Other 8 8 7 7
General Obligation Bonds 16 13 15 16
Escrowed Bonds 5 16 13 5
--- --- --- ---
100% 100% 100% 100%
=== === === ===
- ---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------
NJ PA VA
- ---------------------------------------------------------------
<S> <C> <C> <C>
Revenue Bonds:
Health Care Facilities 16% 27% 13%
Housing Facilities 12 14 10
Water/Sewer Facilities 5 - 22
Pollution Control 10 21 -
Educational Facilities 5 5 10
Transportation 8 4 11
Lease Rental Facilities 3 - 4
Electric Utilities 4 3 -
Other 11 9 11
General Obligation Bonds 15 15 10
Escrowed Bonds 11 2 9
--- --- ---
100% 100% 100%
=== === ===
- ---------------------------------------------------------------
</TABLE>
58
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
Certain long-term and intermediate-term investments owned by the Funds
are covered by insurance issued by several private insurers or are
backed by an escrow or trust containing U.S. Government or U.S.
Government agency securities, either of which ensure the timely
payment of principal and interest in the event of default (50% for
Arizona, 60% for Florida, 52% for Maryland, 37% for Michigan, 40% for
New Jersey, 46% for Pennsylvania and 32% for Virginia). Such insurance
or escrow, however, does not guarantee the market value of the
municipal securities or the value of the Funds' shares.
Certain temporary investments in short-term municipal securities have
credit enhancements (letters of credit, guarantees or insurance)
issued by third party domestic or foreign banks or other institutions
(100% for Arizona, 100% for Florida, 0% for Maryland, 0% for Michigan,
100% for New Jersey, N/A for Pennsylvania and 100% for Virginia).
For additional information regarding each investment security, refer
to the Portfolio of Investments of each Fund.
59
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------ ----------------------------
Net Dividends
realized and from tax-
Net asset Net unrealized gain exempt net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income++ investments** income capital gains period
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
7/31/96 $10.740 $.258 $ (.306) $(.252) $ --- $10.440
Year ended 1/31,
1996 9.930 .503 .829 (.522) --- 10.740
9/6/94 to
1/31/95 10.030 .203 (.086) (.217) --- 9.930
CLASS C
Six months ended
7/31/96 10.650 .217 (.307) (.210) --- 10.350
Year ended 1/31,
1996 9.840 .419 .830 (.439) --- 10.650
9/9/94 to
1/31/95 9.940 .169 (.052) (.217) --- 9.840
CLASS R
Six months ended
7/31/96 10.670 .265 (.304) (.261) --- 10.370
Year ended 1/31,
1996 9.850 .529 .831 (.540) --- 10.670
1995 10.880 .536 (1.026) (.540) --- 9.850
1994 10.050 .531 .853 (.522) (.032) 10.880
1993 9.525 .438 .563 (.435) (.041) 10.050
12/13/91 to
1/31/92 9.525 --- --- --- --- 9.525
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 72.
60
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(.42)% $ 4,684 1.23%* 4.65%* 1.00%* 4.88%* 7%
13.68 3,895 1.31 4.49 1.00 4.80 5
1.24 1,124 1.60* 4.68* 1.00* 5.28* 29
(.82) 483 1.98* 3.90* 1.75* 4.13* 7
12.90 328 2.11 3.66 1.75 4.02 5
1.25 43 3.51* 2.79* 1.75* 4.55* 29
(.34) 18,828 .98* 4.91* .75* 5.14* 7
14.09 19,533 1.15 4.72 .75 5.12 5
(4.39) 16,554 1.06 5.12 .75 5.43 29
14.07 16,140 1.25 4.48 .75 4.98 11
10.71 8,026 1.75* 3.94* .75* 4.94* 43
- 15 - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
61
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
--------------------------------------------------------------------
Net realized Dividends from
Net asset Net and unrealized tax-exempt net Distributions Net asset
value beginning investment gain (loss) from investment from capital value end
of period income++ investments** income gains of period
- --------------------------------------------------------------------------------------------------------------------------
FLORIDA
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
7/31/96 $10.560 $.252 $(.306) $(.246) $ - $10.260
Year ended 1/31,
1996 9.730 .488 .840 (.498) - 10.560
9/6/94 to
1/31/95 9.890 .193 (.148) (.202) (.003) 9.730
CLASS C
Six months ended
7/31/96 10.510 .207 (.290) (.207) - 10.220
Year ended 1/31,
1996 9.730 .413 .789 (.422) - 10.510
9/16/94 to
1/31/95 9.720 .152 .021 (.163) - 9.730
CLASS R
Six months ended
7/31/96 10.570 .256 (.298) (.258) - 10.270
Year ended 1/31,
1996 9.750 .518 .824 (.522) - 10.570
1995 10.740 .508 (.985) (.510) (.003) 9.750
1994 9.960 .511 .779 (.510) - 10.740
1993 9.525 .440 .431 (.436) - 9.960
12/13/91 to
1/31/92 9.525 - - - - 9.525
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 72.
62
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
------------------------------------------------------------------------------------------------
Ratio of Ratio of
Ratio of net investment Ratio of net investment
Total Net assets expenses to income to expenses income to
return on end of average net average net to average net average net Portfolio
net asset period (in assets before assets before assets after assets after turnover
value+ thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ---------------------------------------------------------------------------------------------------------------------------------
FLORIDA
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
7/31/96 (.49)% $ 8,927 1.06%* 4.70%* 1.00%* 4.76%* 12%
Year ended 1/31,
1996 13.92 5,823 1.21 4.53 1.00 4.74 21
9/6/94 to
1/31/95 .52 1,392 1.56* 4.52* 1.00* 5.08* 4
CLASS C
Six months ended
7/31/96 (.77) 246 1.81* 3.95* 1.75* 4.01* 12
Year ended 1/31,
1996 12.54 168 2.16 3.62 1.75 4.03 21
9/16/94 to
1/31/95 1.84 78 2.84* 3.26* 1.75* 4.35* 4
CLASS R
Six months ended
7/31/96 (.37) 53,399 .81* 4.95* .75* 5.01* 12
Year ended 1/31,
1996 14.05 55,318 .88 4.93 .75 5.06 21
1995 (4.33) 52,538 .84 5.12 .75 5.21 4
1994 13.22 48,254 .89 4.69 .75 4.83 3
1993 9.33 23,727 1.24* 4.35* .75* 4.84* 1
12/13/91 to
1/31/92 - 15 - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
63
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
--------------------------------------------------------------------
Net realized Dividends from
Net asset Net and unrealized tax-exempt net Distributions Net asset
value beginning investment gain (loss) from investment from capital value end
of period income++ investments** income gains of period
- --------------------------------------------------------------------------------------------------------------------------
MARYLAND
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
7/31/96 $10.430 $.254 $ (.281) $(.243) $ - $10.160
Year ended 1/31,
1996 9.600 .483 .844 (.497) - 10.430
9/6/94 to
1/31/95 9.840 .198 (.229) (.207) (.002) 9.600
CLASS C
Six months ended
7/31/96 10.420 .211 (.277) (.204) - 10.150
Year ended 1/31,
1996 9.590 .409 .842 (.421) - 10.420
9/15/94 to
1/31/95 9.750 .160 (.153) (.167) - 9.590
CLASS R
Six months ended
7/31/96 10.440 .258 (.273) (.255) - 10.170
Year ended 1/31,
1996 9.610 .513 .838 (.521) - 10.440
1995 10.620 .513 (1.008) (.513) (.002) 9.610
1994 9.910 .509 .727 (.503) (.023) 10.620
1993 9.525 .442 .395 (.442) (.010) 9.910
12/13/91 to
1/31/92 9.525 - - - - 9.525
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 72.
64
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
------------------------------------------------------------------------------------------------
Ratio of Ratio of
Ratio of net investment Ratio of net investment
Total Net assets expenses to income to expenses income to
return on end of average net average net to average net average net Portfolio
net asset period (in assets before assets before assets after assets after turnover
value+ thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ---------------------------------------------------------------------------------------------------------------------------------
MARYLAND
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
7/31/96 (.24)% $ 9,335 1.12%* 4.74%* 1.00%* 4.86%* 4%
Year ended 1/31,
1996 14.07 6,860 1.33 4.41 1.00 4.74 17
9/6/94 to
1/31/95 (.26) 1,605 1.59* 4.67* 1.00* 5.26* 35
CLASS C
Six months ended
7/31/96 (.62) 1,712 1.87* 3.99* 1.75* 4.11* 4
Year ended 1/31,
1996 13.24 1,438 2.06 3.73 1.75 4.04 17
9/15/94 to
1/31/95 .12 860 1.86* 4.44* 1.75* 4.55* 35
CLASS R
Six months ended
7/31/96 (.12) 44,730 .87* 5.00* .75* 5.12* 4
Year ended 1/31,
1996 14.33 47,389 1.04 4.78 .75 5.07 17
1995 (4.58) 42,741 .89 5.14 .75 5.28 35
1994 12.71 47,822 .86 4.74 .75 4.85 4
1993 8.96 28,283 1.02* 4.69* .75* 4.96* 20
12/13/91 to
1/31/92 - 15 - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
65
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------ ----------------------------
Net Dividends
realized and from tax-
Net asset Net unrealized gain exempt net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income++ investments** income capital gains period
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MICHIGAN
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
Six months ended
7/31/96 $10.740 $.262 $(.307) $(.255) $ - $10.440
Year ended 1/31,
1996 9.870 .510 .911 (.519) (.032) 10.740
9/6/94 to
1/31/95 10.090 .204 (.209) (.212) (.003) 9.870
CLASS C
Six months ended
7/31/96 10.730 .216 (.303) (.213) - 10.430
Year ended 1/31,
1996 9.850 .430 .922 (.440) (.032) 10.730
9/16/94 to
1/31/95 9.910 .161 (.050) (.171) - 9.850
CLASS R
Six months ended
7/31/96 10.750 .267 (.300) (.267) - 10.450
Year ended 1/31,
1996 9.880 .539 .906 (.543) (.032) 10.750
1995 10.860 .529 (.972) (.534) (.003) 9.880
1994 10.060 .531 .808 (.528) (.011) 10.860
1993 9.525 .456 .554 (.449) (.026) 10.060
12/13/91 to
1/31/92 9.525 - - - - 9.525
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 72.
66
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
(.40)% $ 4,923 1.18%* 4.73%* 1.00%* 4.91%* 16%
14.68 4,027 1.35 4.52 1.00 4.87 33
.02 897 2.62* 3.68* 1.00* 5.30* 35
(.79) 265 1.93* 3.98* 1.75* 4.16* 16
13.96 231 2.08 3.79 1.75 4.12 33
1.18 75 3.52* 2.76* 1.75* 4.53* 35
(.28) 27,564 .93* 4.98* .75* 5.16* 16
14.93 30,126 1.05 4.87 .75 5.17 33
(3.98) 26,644 .96 5.12 .75 5.33 35
13.58 25,085 1.07 4.67 .75 4.99 3
10.80 14,684 1.62* 4.19* .75* 5.06* 32
- 15 - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
67
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
<TABLE>
<CAPTION>
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- ----------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
----------------------------------------------------------------------
Net Dividends
realized and from tax-
Net asset Net unrealized gain exempt net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income++ investments** income capital gains period
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NEW JERSEY
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
Six months ended
7/31/96 $10.400 $.261 $(.287) $(.254) $ -- $10.120
Year ended 1/31,
1996 9.730 .519 .685 (.534) -- 10.400
9/6/94 to
1/31/95 10.030 .205 (.209) (.210) (.086) 9.730
CLASS C
Six months ended
7/31/96 10.380 .227 (.292) (.215) -- 10.100
Year ended 1/31,
1996 9.710 .443 .683 (.456) -- 10.380
9/21/94 to
1/31/95 9.770 .159 (.050) (.169) -- 9.710
CLASS R
Six months ended
7/31/96 10.410 .266 (.280) (.266) -- 10.130
Year ended 1/31,
1996 9.740 .551 .677 (.558) -- 10.410
1995 10.710 .524 (.886) (.522) (.086) 9.740
1994 9.960 .513 .810 (.513) (.060) 10.710
1993 9.525 .445 .431 (.441) -- 9.960
12/13/91 to
1/31/92 9.525 -- -- -- -- 9.525
- ----------------------------------------------------------------------------------------------------------------------------
See notes on page 72.
</TABLE>
68
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
---------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
(.23)% $13,890 1.16%* 4.86%* 1.00%* 5.02%* 8%
12.63 10,661 1.25 4.85 1.00 5.10 39
.02 2,741 1.31* 5.03* 1.00* 5.34* 32
(.61) 1,939 1.91* 4.11* 1.75* 4.27* 8
11.80 1,065 1.96 4.16 1.75 4.37 39
1.16 464 2.00* 4.37* 1.75* 4.62* 32
(.11) 42,445 .91* 5.11* .75* 5.27* 8
12.88 43,304 .98 5.20 .75 5.43 39
(3.27) 39,582 .89 5.18 .75 5.32 32
13.60 36,462 .98 4.61 .75 4.84 52
9.36 16,208 1.43* 4.28* .75* 4.96* 9
-- 15 -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
69
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------------------------------------------
Net Dividends
realized and from tax-
Net asset Net unrealized gain exempt net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income++ investments** income capital gains period
- ----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Six months ended
7/31/96 $10.600 $.263 $(.247) $(.246) $ ---- $10.370
Year ended 1/31,
1996 9.750 .498 .862 (.510) ---- 10.600
9/6/94 to
1/31/95 9.920 .206 (.164) (.212) ---- 9.750
CLASS C
Six months ended
7/31/96 10.480 .216 (.242) (.204) ---- 10.250
Year ended 1/31,
1996 9.650 .417 .843 (.430) ---- 10.480
9/6/94 to
1/31/95 9.920 .176 (.235) (.211) ---- 9.650
CLASS R
Six months ended
7/31/96 10.570 .267 (.239) (.258) ---- 10.340
Year ended 1/31,
1996 9.730 .527 .846 (.533) ---- 10.570
1995 10.810 .531 (1.077) (.534) ---- 9.730
1994 10.010 .533 .807 (.534) (.006) 10.810
1993 9.525 .451 .481 (.443) (.004) 10.010
12/13/91 to
1/31/92 9.525 --- --- --- --- 9.525
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes on page 72.
70
<PAGE>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
----------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
.18% $ 7,907 1.14%* 4.85%* 1.00%* 4.99%* 31%
14.22 5,817 1.30 4.52 1.00 4.82 52
.49 1,483 1.87* 4.56* 1.00* 5.43* 74
(.22) 1,104 1.89* 4.09* 1.75* 4.23* 31
13.27 1,101 2.14 3.70 1.75 4.09 52
(.53) 494 2.52* 3.90* 1.75* 4.67* 74
30 55,287 .88* 5.10* .75* 5.23* 31
14.40 57,345 .96 4.93 .75 5.14 52
(4.94) 51,499 .91 5.27 .75 5.43 74
13.67 48,720 .94 4.82 .75 5.01 5
9.97 23,680 1.25* 4.53* .75* 5.03* 15
--- 15 --- --- --- --- ---
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
SELECTED DATA FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS
FOLLOWS:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Operating performance Less distributions
------------------------------ ----------------------------
Net Dividends
realized and from tax-
Net asset Net unrealized gain exempt net Distributions Net asset
value beginning investment (loss) from investment from value end of
of period income++ investments** income capital gains period
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VIRGINIA
- ----------------------------------------------------------------------------------------------------------------------------
CLASS A
Six months ended
7/31/96 $10.600 $.263 $(.255) $(.258) $ - $10.350
Year ended 1/31,
1996 9.760 .509 .878 (.509) (.038) 10.600
9/6/94 to
1/31/95 9.980 .201 (.207) (.214) - 9.760
CLASS C
Six months ended
7/31/96 10.570 .221 (.252) (.219) - 10.320
Year ended 1/31,
1996 9.740 .432 .868 (.432) (.038) 10.570
9/8/94 to
1/31/95 9.950 .171 (.167) (.214) - 9.740
CLASS R
Six months ended
7/31/96 10.600 .268 (.248) (.270) - 10.350
Year ended 1/31,
1996 9.770 .537 .864 (.533) (.038) 10.600
1995 10.740 .531 (.964) (.537) - 9.770
1994 10.030 .529 .726 (.527) (.018) 10.740
1993 9.525 .439 .499 (.433) - 10.030
12/13/91 to
1/31/92 9.525 - - - - 9.525
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Net of taxes, if applicable (note 1).
+ Total Return on Net Asset Value is the combination of reinvested dividend
income, reinvested capital gains distributions, if any, and changes in net
asset value per share. The total returns shown for Class A Shares do not
include the effect of applicable front-end sales charges. The total returns
shown for Class C Shares do not include the effect of applicable contingent
deferred sales charges. Class R Shares are not subject to any front-end or
contingent deferred sales charges.
++ Reflects the waiver of certain management fees and reimbursement of certain
other expenses by the Adviser (note 6).
72
<PAGE>
<TABLE>
<CAPTION>
NUVEEN TAX-FREE MUTUAL FUNDS SEMIANNUAL REPORT
JULY 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of Ratio of Ratio of Ratio of
expenses to net investment expenses net investment
Total return Net assets average income to average to average net income to average Portfolio
on net asset end of period net assets before net assets before assets after net assets after turnover
value+ (in thousands) reimbursement reimbursement reimbursement++ reimbursement++ rate
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
.11% $ 7,894 1.14%* 4.86%* 1.00%* 5.00%* 22%
14.50 5,874 1.20 4.73 1.00 4.93 42
.01 2,215 1.57* 4.70* 1.00* 5.27* 40
(.27) 975 1.89* 4.11* 1.75* 4.25* 22
13.58 789 1.92 4.04 1.75 4.21 42
.10 378 2.20* 4.12* 1.75* 4.57* 40
.23 57,352 .89* 5.11* .75* 5.25* 22
14.65 59,405 .94 5.04 .75 5.23 42
(3.92) 54,791 .82 5.33 .75 5.40 40
12.78 55,773 .84 4.94 .75 5.03 7
10.04 37,196 .96* 4.71* .75* 4.92* 12
- 15 - - - - -
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
73
<PAGE>
Your
investment
partners
Since 1898, John Nuveen & Co. Incorporated has worked to bring together the
various participants in the municipal bond industry and build strong
partnerships that benefit all concerned. Investors, financial advisers,
municipal officials, investment bankers-Nuveen believes that forging
relationships within these groups based on trust and value is the key to
successful investing.
As the oldest and largest municipal bond specialist in the United States,
Nuveen's investment bankers work with issuers to understand and meet their needs
in structuring and selling their bond issues.
Nuveen also works closely with financial advisers around the country,
including brokerage firms, banks, insurance companies, and independent financial
planners, to bring the benefits of tax-free investing to you. These advisers are
experts at identifying your needs and recommending the best solutions for your
situation. Together we make a powerful team, helping you create a successful
investment plan that meets your needs today and in the future.
[JOHN NUVEEN PHOTO APPEARS HERE]
For nearly 100 years,
Nuveen has earned its
reputation as a tax-free income
specialist by focusing on
municipal bonds
[RECYCLED LOGO APPEARS HERE]
[LOGO OF NUVEEN]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
OEFI-SEP96
