UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-10349
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Nuveen Maryland Dividend Advantage Municipal Fund 2
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31, 2003
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Date of reporting period: November 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT November 30, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NMY
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND
NFM
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NZR
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NWI
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
NPV
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NGB
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NNB
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
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SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
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IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using
the address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A
PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS.
Dear
SHAREHOLDER
I am very pleased to report that for the six months ended November 30, 2003,
your Nuveen Fund continued to provide you with attractive monthly tax-free
income.
Your Nuveen Fund is managed with a value investing strategy that puts an
emphasis on finding securities that we think are undervalued or underrated. We
believe that there are always some municipal bonds that the market is not
properly valuing, and that by using a consistent, research-oriented management
approach we have the opportunity to find them for your Fund.
In this low-rate environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
January 15, 2004
1
Nuveen Maryland and Virginia Municipal Closed-End Exchange-Traded Funds (NMY,
NFM, NZR, NWI, NPV, NGB, NNB)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan discusses national and state economic and market
conditions, key investment strategies, and the recent performance of these seven
Nuveen Funds. Paul, who has 12 years of investment experience, has managed NMY
and NPV since 1999, NFM, NZR, NGB, and NNB since 2001, and NWI since its
inception in 2002.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE SIX-MONTH
REPORTING PERIOD ENDED NOVEMBER 30, 2003?
Over the past six month period, the two greatest influences on the general
economy and the municipal market continued to be historically low interest rates
and the overall pace of economic improvement. In June 2003, the Federal Reserve
reduced the fed funds rate to 1.0%, the lowest level since 1958. The Fed's
accommodative monetary policy, coupled with Washington's tax relief measures and
increased spending for defense and national security, helped to fuel a jump of
8.2% (annualized) in the third-quarter gross domestic product (GDP), up from
3.3% in the second quarter. At the same time, inflation remained under control.
In the municipal market, the slow rate of economic recovery over the majority of
this period, low interest rates, and lack of inflationary pressures helped many
municipal bonds perform well. During the summer of 2003, however,
stronger-than-expected economic data precipitated a spike in bond yields and a
corresponding drop in bond prices that impacted results across all fixed-income
markets, including the municipal market, for the six-month period ended November
30, 2003.
During the first 11 months of 2003, municipal supply nationally remained on a
record-setting pace, with $347.1 billion in new bonds, up 5% over the same
period in 2002.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN MARYLAND AND VIRGINIA?
Stimulated by the Washington D.C. economy and increased defense spending by the
federal government, Maryland's economy continued to outperform the national
average over the six month period. Strong consumer demand benefited employment
in the retail sector, although manufacturing and transportation continued to
experience job losses. Maryland's highly educated workforce and the large
presence of military contractors and private medical research facilities
continued to contribute to the state's growth.
As of November 2003, unemployment in Maryland was 4.2%, well below the current
national average of 5.9%. The state's $10 billion fiscal 2004 budget was
balanced using a mix of fee increases, federal funds, budget reductions, and a
statewide property tax increase. During the first 11 months of 2003, Maryland
issued $6.1 billion in new municipal paper, up 27% over the same period in 2002.
Virginia's economy also continued to outperform the nation, as the state
benefited from increased defense spending and military activity and
above-average growth in federal government employment. Virginia's tourism and
service industries also prospered. As of November 2003, unemployment in Virginia
was 3.6%, the third lowest in the nation, as the rate continued to decline from
3.9% a year earlier.
2
To balance the fiscal 2002-04 biennial budget ($12.2 billion annually), Virginia
relied on spending reductions, fee increases, and nonrecurring measures such as
drawing down reserve funds. During the first 11 months of 2003, Virginia issued
$6.0 billion in municipal bonds, down 5% from the same period in 2002.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THE 12-MONTHS ENDED NOVEMBER 30, 2003?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
11/30/03 EQUIVALENT3 11/30/03 11/30/03 11/30/03
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NMY 5.94% 8.67% 9.17% 6.65% 10.28%
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NFM 5.80% 8.47% 9.26% 6.65% 10.28%
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NZR 5.80% 8.47% 11.05% 6.65% 10.28%
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NWI 5.82% 8.50% 11.66% 6.65% 10.28%
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NPV 5.33% 7.84% 10.22% 6.65% 10.28%
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NGB 5.69% 8.37% 10.00% 6.65% 10.28%
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NNB 5.42% 7.97% 10.99% 6.65% 10.28%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12-months ended November 30, 2003, the total return of all seven of the
Funds in this report outperformed the unleveraged Lehman Brothers Municipal Bond
Index. Four of the Funds also outperformed or performed in line with their
Lipper peer group average, while NMY, NFM and NGB trailed this measure.
The use of leverage was one of the factors that influenced the total return
performances of these Funds relative to the Lehman index over the past 12-month
period. While leveraging creates increased volatility, this strategy can also
provide opportunities for additional income for common shareholders, especially
during periods of low short-term interest rates, and income is an important
component of total return for any bond investment.
In general, the Funds benefited from their duration4 positioning during this
period. As of November 30, 2003, the durations of the five newer Funds (NFM,
NZR, NWI, NGB and NNB) ranged from 9.19 to 11.41, compared with 8.10 for the
Lehman index. However, the older NMY and NPV, continued to have the shortest
durations (8.72 and 8.86, respectively) as of the end of November 2003. This
kept these two Funds from fully benefiting from the decline in interest rates
during much of the past twelve month period. Investments with shorter durations
generally would be expected to underperform those with longer durations during
periods of generally declining long-term municipal interest rates, all other
factors being equal.
In addition to leverage and duration, factors such as call exposure, portfolio
trading activity, and the price movement of specific sectors and holdings also
had an impact on the Funds' relative total return performances during this
period. For example, during the initial investment period for NFM and NGB at the
beginning of 2001, we purchased some higher-yielding bonds backed by Northwest
Airlines. In the aftermath of September 11, 2001, these non-rated holdings
declined significantly, and we made the decision to sell the bonds during the
first quarter of 2003. Although these bonds are no longer in our portfolio,
their depreciation impacted the 12-month total returns for both NFM and NGB.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-paying capabilities of all of these Funds benefited from their use of
leverage. During the 12-months ended November 2003, continued low short-term
rates enabled us to implement three dividend increases in NFM, NGB, and NNB, two
in NZR, and one in NMY and NPV. As of November 30, 2003, NWI,
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman
Brothers Municipal Bond Index, an unleveraged, unmanaged national index
comprising a broad range of investment-grade municipal bonds. Results for
the Lehman index do not reflect any expenses.
2 The total returns of these Funds are compared with the average annualized
return of the 43 funds in the Lipper Other States Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends. It
should be noted that the performance of the Lipper Other States category
represents the overall average of annual returns for funds from 10
different states with a wide variety of economic and municipal market
conditions and investment guidelines, making direct comparisons less
applicable.
3 The taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Nuveen Fund on
an after-tax basis. With respect to investments that generate qualified
dividend income that is taxable at a maximum rate of 15%, the
taxable-equivalent yield is lower. The taxable-equivalent yield is
calculated using the current market yield and a federal income tax rate of
28% plus the applicable state income tax rate. The combined federal and
state tax rates used in this report are as follows: Maryland 31.5% and
Virginia 32%. The yields shown highlight the added value of owning shares
that are exempt from state as well as federal income taxes.
4 Duration is a measure of a fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the fund. References to duration in this commentary are
intended to indicate fund duration unless otherwise noted.
3
which was introduced in September 2002, had provided shareholders with 13
consecutive months of stable, attractive dividends.
Even at these dividend levels, each Fund's common share net investment income
during the period exceeded the amount of dividends paid to common shareholders.
This excess net investment income, along with any excess net investment income
from prior fiscal periods, was held in reserve by the funds as undistributed net
investment income (UNII) and is part of the Funds' net asset value. Over time,
the Funds will pay out all their net investment income to common shareholders.
However, UNII reserves may help the Funds maintain more stable common share
dividend levels over time in the event that the short-term rates the Funds pay
on their MuniPreferred shares rise or net common share earnings otherwise
decline.
Despite the increased volatility in the fixed-income markets during the summer
of 2003, the share prices and net asset values of these Funds ended the 12-month
period higher than they had been at the beginning. The two exceptions were NMY
and NWI, which saw their share price decline over the 12-month period. As of
November 30, 2003, NMY, NFM, NPV, NGB, and NNB were trading at premiums to their
common share NAVs, while NZR and NWI were trading at discounts (see individual
Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12-MONTHS ENDED
NOVEMBER 30, 2003?
For this 12-month period, we continued to place strong emphasis on keeping the
Funds fully invested and well diversified, improving call protection, and
enhancing dividend-payment capabilities. A major focus continued to be
management of the Funds' durations as a way of enhancing our ability to control
interest rate risk and produce potentially more consistent returns over time.
Interest rate risk is the risk that the value of a Fund's portfolio will decline
when market interest rates rise (since bond prices move in the opposite
direction of interest rates). The longer the duration of a Fund's portfolio, the
greater its interest rate risk.
Over the 12-month period, the durations of the four newer Funds (NFM, NZR, NWI,
NGB and NNB) were all shortened significantly. However, the duration of NWI
(11.41) was slightly longer than the other Funds to provide additional support
for this newer Fund's income stream in the current market environment.
In keeping with the steepness of the municipal yield curve, the majority of our
purchase activity over the past year focused on value opportunities in the long
intermediate part of the yield curve (i.e., bonds that mature in 15 to 20
years). In many cases, bonds in this part of the curve offered yields similar to
those of longer-term bonds, but had less inherent interest rate risk.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2003?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality remains a vital requirement. As of November
30, 2003, these Nuveen Funds offered excellent credit quality, with allocations
of bonds rated AAA/U.S. guaranteed and AA ranging from 68% to 82%. Despite some
recent economic weaknesses, Maryland and Virginia continued to rank as very high
quality states and were among the nine states to retain their AAA ratings from
Standard & Poor's over the past two years.
Looking at bond calls, these Funds generally offer good levels of call
protection over the next two years, with potential call exposure (as of November
30, 2003) ranging from 1% in NZR, NWI, and NNB to 23% in NMY during 2004 and
2005. Both NMY and NPV have increased call
4
exposure. In coming months, the number of actual bond calls in all of these
Funds will depend largely on market interest rates.
In general, we believe that these Nuveen Funds can continue to serve as
attractive sources of tax-free income, while simultaneously offering the
potential for portfolio diversification. In our opinion, the Funds represent a
quality component of a well-balanced core investment portfolio that can continue
to benefit shareholders over time.
5
Nuveen Maryland Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NMY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 48%
AA 23%
A 14%
BBB 9%
NR 2%
BB or Lower 4%
PORTFOLIO STATISTICS
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Share Price $15.36
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Common Share Net Asset Value $14.70
- --------------------------------------------------
Premium/(Discount) to NAV 4.49%
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Market Yield 5.94%
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Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.25%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.67%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $155,455
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Average Effective Maturity (Years) 18.30
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Leverage-Adjusted Duration 8.72
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AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 4.10% 9.17%
- --------------------------------------------------
5-Year 4.46% 5.91%
- --------------------------------------------------
10-Year 6.60% 6.24%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Healthcare 17%
- --------------------------------------------------
Tax Obligation/General 16%
- --------------------------------------------------
Tax Obligation/Limited 15%
- --------------------------------------------------
Education and Civic Organizations 14%
- --------------------------------------------------
Housing/Multifamily 14%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.6
15.63
15.88
16
16.3
15.88
16.05
15.85
15.66
15.67
15.81
15.95
16.01
16.29
16.5
16.4
16.3
16.29
16.35
16.35
16.2
16.19
16.25
17.15
16.92
17
16.7
16.32
16.75
16.88
16.41
15.4
15.19
15.45
15
15.25
15.4
15.45
15.69
15.6
15.77
15.45
15.48
15.6
15.7
16.08
15.59
11/30/03 15.36
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 31.5%.
2 The Fund also paid shareholders a net ordinary income distribution in December
2002 of $0.0032 per share.
6
Nuveen Maryland Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NFM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 43%
AA 25%
A 15%
BBB 12%
NR 5%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $16.24
- --------------------------------------------------
Common Share Net Asset Value $14.97
- --------------------------------------------------
Premium/(Discount) to NAV 8.48%
- --------------------------------------------------
Market Yield 5.80%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.06%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.47%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $62,275
- --------------------------------------------------
Average Effective Maturity (Years) 21.20
- --------------------------------------------------
Leverage-Adjusted Duration 9.19
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 13.11% 9.26%
- --------------------------------------------------
Since Inception 8.45% 7.51%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 16%
- --------------------------------------------------
Healthcare 15%
- --------------------------------------------------
Tax Obligation/Limited 13%
- --------------------------------------------------
Housing/Single Family 12%
- --------------------------------------------------
U.S. Guaranteed 11%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.071
Jan 0.071
Feb 0.071
Mar 0.074
Apr 0.074
May 0.074
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.0785
Oct 0.0785
Nov 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.3
15.18
15
15
15.45
15.5
15.12
15.13
15.31
15.5
15.45
15.52
15.5
15.63
15.5
15.48
15.75
15.83
15.81
16.15
16.2
16.5
16.1
16.08
16.01
16.3
16.11
16.23
16.35
16.79
16.22
15.55
14.95
14.9
14.54
14.72
14.8
15.09
15.2
15.01
15.43
15.43
15.25
15.76
16.15
16.19
16.15
11/30/03 16.24
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 31.5%.
7
Nuveen Maryland Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2003
NZR
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 46%
AA 33%
A 9%
BBB 9%
NR 3%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $14.89
- --------------------------------------------------
Common Share Net Asset Value $15.23
- --------------------------------------------------
Premium/(Discount) to NAV (2.23%)
- --------------------------------------------------
Market Yield 5.80%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.06%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.47%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $63,471
- --------------------------------------------------
Average Effective Maturity (Years) 20.19
- --------------------------------------------------
Leverage-Adjusted Duration 10.06
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 7.36% 11.05%
- --------------------------------------------------
Since Inception 5.05% 8.44%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 30%
- --------------------------------------------------
Tax Obligation/Limited 13%
- --------------------------------------------------
Healthcare 12%
- --------------------------------------------------
Education and Civic Organizations 12%
- --------------------------------------------------
Housing/Multifamily 11%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.068
Jan 0.068
Feb 0.068
Mar 0.071
Apr 0.071
May 0.071
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 14.79
14.74
14.65
14.98
14.95
14.8
14.54
14.68
14.5
14.6
14.41
14.6
14.66
14.74
14.85
14.96
15
14.97
14.95
15.17
15.18
15.31
15.35
15.6
15.72
15.7
15.47
15.7
15.9
15.9
15.27
14.56
14.25
14.31
14.25
14.3
14.23
14.22
14.27
14.46
14.67
14.95
14.97
14.87
14.89
14.81
14.87
11/30/03 14.89
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 31.5%.
8
Nuveen Maryland Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of November 30, 2003
NWI
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 41%
AA 40%
A 9%
BBB 8%
NR 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $13.51
- --------------------------------------------------
Common Share Net Asset Value $14.40
- --------------------------------------------------
Premium/(Discount) to NAV (6.18%)
- --------------------------------------------------
Market Yield 5.82%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.08%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.50%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $77,156
- --------------------------------------------------
Average Effective Maturity (Years) 21.68
- --------------------------------------------------
Leverage-Adjusted Duration 11.41
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year -0.13% 11.66%
- --------------------------------------------------
Since Inception -3.70% 5.66%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 25%
- --------------------------------------------------
Tax Obligation/Limited 23%
- --------------------------------------------------
Housing/Multifamily 14%
- --------------------------------------------------
Education and Civic Organizations 11%
- --------------------------------------------------
Healthcare 10%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0655
Jan 0.0655
Feb 0.0655
Mar 0.0655
Apr 0.0655
May 0.0655
Jun 0.0655
Jul 0.0655
Aug 0.0655
Sep 0.0655
Oct 0.0655
Nov 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 14.4
14.31
13.9
13.9
14.13
14.15
14.31
14.43
14.66
14.8
14.7
14.45
14.4
14.37
14.19
14
14
14.09
13.75
14.27
14.49
14.5
14.65
14.9
14.84
15.05
14.81
14.96
15.05
15.12
14.57
13.8
13.7
13.67
13.19
13.42
13.55
13.38
13.29
13.32
13.21
13.08
13.29
13.31
13.46
13.25
13.31
11/30/03 13.51
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 31.5%.
9
Nuveen Virginia Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NPV
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 53%
AA 28%
A 8%
BBB 5%
NR 4%
BB or Lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $17.12
- --------------------------------------------------
Common Share Net Asset Value $15.47
- --------------------------------------------------
Premium/(Discount) to NAV 10.67%
- --------------------------------------------------
Market Yield 5.33%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.40%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.84%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $136,450
- --------------------------------------------------
Average Effective Maturity (Years) 19.26
- --------------------------------------------------
Leverage-Adjusted Duration 8.86
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 11.75% 10.22%
- --------------------------------------------------
5-Year 6.34% 6.30%
- --------------------------------------------------
10-Year 7.77% 6.86%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 20%
- --------------------------------------------------
Healthcare 17%
- --------------------------------------------------
Water and Sewer 13%
- --------------------------------------------------
Tax Obligation/General 10%
- --------------------------------------------------
Transportation 9%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 16.5
16.28
16.85
16.9
17.5
17.5
17.27
17.32
17.36
17.18
16.92
16.95
17.36
17.24
16.65
16.44
16.32
16.35
16.63
16.5
16.3
16.57
16.68
17.67
18.05
18.07
18.17
17.57
17.78
17.89
17.8
16.95
16.83
15.99
16.62
16.48
16.6
16.9
16.75
16.5
16.92
16.71
16.67
16.92
17.24
17.45
17.6
11/30/03 17.12
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32%.
10
Nuveen Virginia Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2003
NGB
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 51%
AA 24%
A 10%
BBB 8%
NR 5%
BB or Lower 2%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $16.55
- --------------------------------------------------
Common Share Net Asset Value $14.97
- --------------------------------------------------
Premium/(Discount) to NAV 10.55%
- --------------------------------------------------
Market Yield 5.69%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.90%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.37%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $46,697
- --------------------------------------------------
Average Effective Maturity (Years) 20.02
- --------------------------------------------------
Leverage-Adjusted Duration 9.90
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 12.07% 10.00%
- --------------------------------------------------
Since Inception 9.23% 7.59%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/General 19%
- --------------------------------------------------
Transportation 16%
- --------------------------------------------------
Healthcare 13%
- --------------------------------------------------
Water and Sewer 10%
- --------------------------------------------------
Tax Obligation/Limited 10%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0715
Jan 0.0715
Feb 0.0715
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.0785
Oct 0.0785
Nov 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.71
15.6
15.72
16.07
16
15.85
15.79
15.55
15.26
15.53
15.23
15.38
15.5
15.47
15.51
15.39
15.57
15.59
15.96
15.92
15.98
16.26
16.33
17.35
17.56
17.5
17.5
17.24
17.25
17.1
16.87
15.79
16.38
16.35
16.02
16.1
16.19
16.02
16.25
15.9
16.56
16.75
16.6
16.8
17.15
17.15
16.25
11/30/03 16.55
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32%.
11
Nuveen Virginia Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2003
NNB
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 48%
AA 34%
A 7%
BBB 8%
NR 3%
PORTFOLIO STATISTICS
- --------------------------------------------------
Share Price $16.49
- --------------------------------------------------
Common Share Net Asset Value $15.39
- --------------------------------------------------
Premium/(Discount) to NAV 7.15%
- --------------------------------------------------
Market Yield 5.42%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.53%
- --------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.97%
- --------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $87,607
- --------------------------------------------------
Average Effective Maturity (Years) 20.92
- --------------------------------------------------
Leverage-Adjusted Duration 10.76
- --------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01)
- --------------------------------------------------
ON SHARE PRICE ON NAV
- --------------------------------------------------
1-Year 14.55% 10.99%
- --------------------------------------------------
Since Inception 10.39% 9.30%
- --------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
- --------------------------------------------------
Tax Obligation/Limited 21%
- --------------------------------------------------
Tax Obligation/General 19%
- --------------------------------------------------
Water and Sewer 16%
- --------------------------------------------------
Healthcare 14%
- --------------------------------------------------
Utilities 7%
- --------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.069
Jan 0.069
Feb 0.069
Mar 0.072
Apr 0.072
May 0.072
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.0745
Oct 0.0745
Nov 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/02 15.59
15.27
15.45
15.51
15.65
15.42
14.98
15.1
15.03
15
14.8
15.05
15.22
14.97
15.45
15.25
15.15
15.4
15.61
15.58
15.61
16.05
16.05
16.14
16.2
16.76
16.5
16.6
16.8
16.65
16.4
15.1
15.49
15.5
15.52
15.5
15.42
15.61
15.99
15.7
16
15.97
16.12
16.23
16.25
16.53
16.18
11/30/03 16.49
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0257 per share.
12
Shareholder
MEETING REPORT
The Shareholder Meeting was held October 22, 2003 in Chicago at Nuveen's
headquarters.
NMY NFM NZR
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 10,366,976 -- 4,003,938 -- 4,017,714 --
Withhold 77,132 -- 15,415 -- 8,862 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Robert P. Bremner
For 10,366,968 -- 3,994,205 -- 4,018,714 --
Withhold 77,140 -- 25,148 -- 7,862 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Lawrence H. Brown
For 10,367,185 -- 4,003,605 -- 4,019,214 --
Withhold 76,923 -- 15,748 -- 7,362 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Jack B. Evans
For 10,367,168 -- 4,003,938 -- 4,019,214 --
Withhold 76,940 -- 15,415 -- 7,362 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Anne E. Impellizzeri
For 10,366,196 -- 3,993,405 -- 4,018,714 --
Withhold 77,912 -- 25,948 -- 7,862 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
William L. Kissick
For 10,365,374 -- 4,003,138 -- 4,018,714 --
Withhold 78,734 -- 16,215 -- 7,862 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Thomas E. Leafstrand
For 10,366,199 -- 4,003,138 -- 4,019,214 --
Withhold 77,909 -- 16,215 -- 7,362 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Peter R. Sawers
For 10,366,216 -- 4,003,205 -- 4,019,214 --
Withhold 77,892 -- 16,148 -- 7,362 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
William J. Schneider
For -- 3,035 -- 1,213 -- 1,166
Withhold -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,035 -- 1,213 -- 1,166
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NMY NFM NZR
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,035 -- 1,213 -- 1,166
Withhold -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,035 -- 1,213 -- 1,166
====================================================================================================================================
Judith M. Stockdale
For 10,366,533 -- 3,994,205 -- 4,019,214 --
Withhold 77,575 -- 25,148 -- 7,362 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
Sheila W. Wellington
For 10,365,581 -- 4,003,138 -- 4,019,214 --
Withhold 78,527 -- 16,215 -- 7,362 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,444,108 -- 4,019,353 -- 4,026,576 --
====================================================================================================================================
14
NWI NPV NGB
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 5,260,990 -- 7,999,826 -- 3,007,834 --
Withhold 2,608 -- 43,311 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Robert P. Bremner
For 5,260,990 -- 7,995,226 -- 3,007,834 --
Withhold 2,608 -- 47,911 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Lawrence H. Brown
For 5,260,680 -- 8,003,826 -- 3,006,033 --
Withhold 2,918 -- 39,311 -- 1,801 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Jack B. Evans
For 5,260,990 -- 8,005,426 -- 3,007,834 --
Withhold 2,608 -- 37,711 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Anne E. Impellizzeri
For 5,260,680 -- 7,993,626 -- 3,006,033 --
Withhold 2,918 -- 49,511 -- 1,801 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
William L. Kissick
For 5,260,680 -- 7,999,726 -- 3,006,033 --
Withhold 2,918 -- 43,411 -- 1,801 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Thomas E. Leafstrand
For 5,260,680 -- 8,003,826 -- 3,006,033 --
Withhold 2,918 -- 39,311 -- 1,801 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Peter R. Sawers
For 5,260,680 -- 8,002,226 -- 3,006,033 --
Withhold 2,918 -- 40,911 -- 1,801 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
William J. Schneider
For -- 1,532 -- 2,201 -- 943
Withhold -- -- -- 3 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,532 -- 2,204 -- 943
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NWI NPV NGB
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,532 -- 2,201 -- 943
Withhold -- -- -- 3 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,532 -- 2,204 -- 943
====================================================================================================================================
Judith M. Stockdale
For 5,260,990 -- 8,004,426 -- 3,007,184 --
Withhold 2,608 -- 38,711 -- 650 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
Sheila W. Wellington
For 5,260,680 -- 8,002,826 -- 3,005,383 --
Withhold 2,918 -- 40,311 -- 2,451 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,263,598 -- 8,043,137 -- 3,007,834 --
====================================================================================================================================
16
NNB
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
William E. Bennett
For 5,471,338 --
Withhold 8,631 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Robert P. Bremner
For 5,471,338 --
Withhold 8,631 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Lawrence H. Brown
For 5,469,880 --
Withhold 10,089 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Jack B. Evans
For 5,471,338 --
Withhold 8,631 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Anne E. Impellizzeri
For 5,469,880 --
Withhold 10,089 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
William L. Kissick
For 5,469,880 --
Withhold 10,089 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Thomas E. Leafstrand
For 5,469,880 --
Withhold 10,089 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Peter R. Sawers
For 5,469,880 --
Withhold 10,089 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
William J. Schneider
For -- 1,530
Withhold -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,530
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NNB
- ------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,530
Withhold -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,530
====================================================================================================================================
Judith M. Stockdale
For 5,471,338 --
Withhold 8,631 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
Sheila W. Wellington
For 5,469,880 --
Withhold 10,089 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,479,969 --
====================================================================================================================================
18
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
$ 3,320 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 3,169,040
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.9%
1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,044,390
Housing Revenue Bonds, Collegiate Housing Foundation -
Salisbury Project, Series 1999A, 6.000%, 6/01/19
2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 2,291,827
Housing Revenue Bonds, Collegiate Housing Foundation -
University Courtyard Project, Series 1999A, 5.750%, 6/01/24
1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,009,320
Housing Revenue Bonds, University of Maryland at
Baltimore, Series 2003A, 5.625%, 10/01/23
Maryland Economic Development Corporation, Utility
Infrastructure Revenue Bonds, University of Maryland, College
Park Project, Series 2001:
1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,114,150
910 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,013,877
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Bullis School Issue, Series 2000:
750 5.250%, 7/01/25 - FSA Insured 1/11 at 101.00 AAA 791,842
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 525,400
Maryland Health and Higher Educational Facilities Authority,
Refunding Revenue Bonds, Johns Hopkins University Issue, Series
1997:
1,000 5.625%, 7/01/17 7/07 at 102.00 AA 1,121,290
1,500 5.625%, 7/01/27 7/07 at 102.00 AA 1,645,440
1,400 Maryland Health and Higher Educational Facilities 6/11 at 100.00 Baa1 1,438,430
Authority, Revenue Bonds, Maryland Institute College
of Art, Series 2001, 5.625%, 6/01/36
9,445 Morgan State University, Maryland, Academic Fees and No Opt. Call AAA 11,498,249
Auxiliary Facilities Fees, Revenue Refunding Bonds,
Series 1993, 6.100%, 7/01/20 - MBIA Insured
University of Maryland System, Auxiliary Facility and Tuition
Revenue Bonds, Series 2003A:
5,645 5.000%, 4/01/15 4/13 at 100.00 AA+ 6,175,517
2,680 5.000%, 4/01/19 4/13 at 100.00 AA+ 2,849,430
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 24.4%
Gaithersburg, Maryland, Hospital Facilities Refunding and
Improvement Revenue Bonds, Shady Grove Adventist
Hospital, Series 1995:
2,550 6.500%, 9/01/12 - FSA Insured No Opt. Call AAA 3,110,108
3,015 5.500%, 9/01/15 - FSA Insured 9/05 at 102.00 AAA 3,262,803
2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,124,820
Revenue Bonds, Kaiser Permanente, Series 1998A,
5.375%, 7/01/15
750 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 Baa1 825,428
Revenue Bonds, University of Maryland Medical System
Issue, Series 2000, 6.750%, 7/01/30
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Johns Hopkins Medicine, Howard County General
Hospital Acquisition Issue, Series 1998:
1,000 5.000%, 7/01/19 - MBIA Insured 7/08 at 101.00 AAA 1,047,430
1,250 5.000%, 7/01/29 - MBIA Insured 7/08 at 101.00 AAA 1,266,663
1,500 Maryland Health and Higher Educational Facilities 1/08 at 101.00 Aaa 1,524,300
Authority, Revenue Bonds Upper Chesapeake Hospitals
Issue, Series 1998A, 5.125%, 1/01/38 - FSA Insured
1,500 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 1,501,815
Authority, Revenue Bonds, Greater Baltimore Medical
Center, Series 2001, 5.000%, 7/01/34
1,500 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A 1,617,225
Authority, Revenue Bonds, University of Maryland
Medical System, Series 2002, 6.000%, 7/01/22
19
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,500 Maryland Health and Higher Educational Facilities 7/12 at 100.00 Baa1 $ 4,684,635
Authority, Revenue Bonds, Carroll County General Hospital,
Series 2002, 5.800%, 7/01/32
3,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 3,015,390
Authority, Revenue Bonds, Frederick Memorial Hospital,
Series 2002, 5.125%, 7/01/35
3,250 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 3,352,505
Authority, Revenue Bonds, Union Hospital of Cecil
County, Series 2002, 5.625%, 7/01/32
3,800 Maryland Health and Higher Educational Facilities 7/13 at 100.00 Baa2 3,843,548
Authority, Revenue Bonds, Kennedy Krieger Issue,
Series 2003, 5.500%, 7/01/33
Prince George's County, Maryland, Project and Refunding Revenue
Bonds, Dimensions Health Corporation Issue, Series 1994:
825 5.000%, 7/01/05 7/04 at 102.00 B3 699,270
3,080 5.375%, 7/01/14 7/04 at 102.00 B3 2,118,670
6,000 5.300%, 7/01/24 7/04 at 102.00 B3 4,056,840
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 20.3%
1,795 Charles County, Maryland, FHA-Insured Mortgage Revenue 5/05 at 102.00 AAA 1,864,933
Refunding Bonds, Holly Station IV Townhouses Project,
Series 1995A, 6.450%, 5/01/26
Howard County, Maryland, FHA-Insured Mortgage Revenue Refunding
Bonds, Normandy Woods III Apartments Project, Series 1996A:
700 6.000%, 7/01/17 7/06 at 102.00 AAA 736,358
2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,090,580
2,500 Community Development Administration, Maryland 1/09 at 101.00 Aa2 2,556,075
Department of Housing and Community Development,
Housing Revenue Bonds, Series 1999A, 5.350%, 7/01/41
(Alternative Minimum Tax)
880 Community Development Administration, Maryland 1/10 at 100.00 Aa2 935,211
Department of Housing and Community Development,
Housing Revenue Bonds, Series 1999B, 6.250%, 7/01/32
(Alternative Minimum Tax)
1,450 Community Development Administration, Maryland, 2/11 at 101.00 Aaa 1,552,443
Department of Housing and Community Development,
Multifamily Development Revenue Bonds, Edgewater
Village Apartments Project, Series 2000B, 5.800%, 8/01/20
Minimum Tax)
2,000 Housing Opportunities Commission of Montgomery County, 7/05 at 102.00 Aa2 2,084,600
Maryland, Multifamily Housing Revenue Bonds,
Series 1995A, 5.900%, 7/01/15
1,500 Housing Opportunities Commission of Montgomery 7/06 at 102.00 Aaa 1,565,580
County, Maryland, Multifamily Housing Revenue Bonds,
Series 1996B, 5.900%, 7/01/26
3,830 Housing Opportunities Commission of Montgomery County, 7/08 at 101.00 Aaa 3,915,294
Maryland, Multifamily Housing Development Bonds,
Series 1998A, 5.200%, 7/01/30
2,000 Housing Opportunities Commission of Montgomery 7/10 at 100.00 Aaa 2,110,540
County, Maryland, Multifamily Housing Development
Bonds, Series 2000A, 6.100%, 7/01/30
1,000 Housing Authority of Prince George's County, Maryland, 1/04 at 101.00 AAA 1,017,710
Mortgage Revenue Refunding Bonds, GNMA
Collateralized - Stevenson Apartments Project,
Series 1993A, 6.350%, 7/20/20
Housing Authority of Prince George's County, Maryland, Mortgage
Revenue Refunding Bonds, Cherry Hill Apartments Project, Series
1993A:
1,090 5.900%, 9/20/10 - FSA Insured 3/04 at 102.00 AAA 1,113,315
1,930 6.000%, 9/20/15 - FSA Insured 3/04 at 102.00 AAA 1,970,858
1,500 Housing Authority of Prince George's County, Maryland, 12/04 at 102.00 AAA 1,556,580
Mortgage Revenue Refunding Bonds, GNMA
Collateralized - Riverview Terrace Apartments Project,
Series 1995A, 6.700%, 6/20/20
Housing Authority of Prince George's County, Maryland, Mortgage
Revenue Refunding Bonds, GNMA Collateralized - Overlook
Apartments Project, Series 1995A:
2,000 5.700%, 12/20/15 12/05 at 102.00 AAA 2,092,660
1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,739,222
1,000 Housing Authority of Prince George's County, Maryland, 5/04 at 100.00 AAA 1,000,850
Mortgage Revenue Refunding Bonds, GNMA Collateralized,
Foxglenn Apartments Project, Series 1998A,
5.450%, 11/20/14 (Alternative Minimum Tax)
540 Housing Authority of Prince George's County, Maryland, 9/09 at 102.00 AAA 574,852
Mortgage Revenue Bonds, GNMA Collateralized - University
Landing at Langley Apartments Project, Series 1999,
6.100%, 3/20/41 (Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,000 City of Salisbury, Maryland, Mortgage Revenue Refunding 12/04 at 102.00 AAA $ 1,025,390
Bonds, FHA-Insured Mortgage Loan - College Lane
Apartments Project, Series 1995A, 6.600%, 12/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3%
1,000 Community Development Administration, Department 4/04 at 102.00 Aa2 1,025,770
of Housing and Community Development, State of
Maryland, Single Family Program Bonds, Fourth Series
1994, 6.450%, 4/01/14
920 Community Development Administration, Department of 4/04 at 102.00 Aa2 942,696
Housing and Community Development, State of Maryland,
Single Family Program Bonds, Fifth Series 1994,
6.750%, 4/01/26 (Alternative Minimum Tax)
115 Community Development Administration, Maryland 9/09 at 100.00 Aa2 116,536
Department of Housing and Community Development,
Residential Revenue Bonds, Series 1999H, 6.250%, 3/01/31
(Alternative Minimum Tax)
1,145 Community Development Administration, Maryland 9/09 at 100.00 Aa2 1,195,414
Department of Housing and Community Development,
Residential Revenue Bonds, Series 2000B, 6.150%, 9/01/32
(Alternative Minimum Tax)
680 Community Development Administration, Maryland 4/06 at 102.00 Aa2 710,804
Department of Housing and Community Development,
Single Family Program Bonds, Sixth Series 1996,
6.200%, 4/01/22 (Alternative Minimum Tax)
1,325 Housing Authority of Prince George's County, Maryland, 8/07 at 102.00 AAA 1,396,232
FHLMC/FNMA/GNMA Collateralized, Single Family
Mortgage Revenue Bonds, Series 1997, 5.625%, 8/01/17
(Alternative Minimum Tax)
230 Housing Authority of Prince George's County, Maryland, 8/10 at 100.00 AAA 242,275
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 2000A,
6.150%, 8/01/19 (Alternative Minimum Tax)
1,000 Puerto Rico Housing Finance Authority, Home Mortgage 6/13 at 100.00 AAA 1,006,810
Revenue Bonds, Mortgage-Backed Securities Program,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8%
1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/09 at 101.00 AA 1,053,710
EMA Obligated Group, Series 1999A,
5.625%, 1/01/25 - RAAI Insured
1,790 Maryland Economic Development Corporation, Revenue 4/11 at 102.00 N/R 1,805,752
Bonds, Health and Mental Hygiene Providers Facilities
Acquisition Program, Series 1996A, 7.625%, 4/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.9%
Baltimore County, Maryland, Metropolitan District General
Obligation Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,588,975
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,616,375
2,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 2,692,025
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
1,000 Baltimore, Maryland, General Obligation Consolidated No Opt. Call A+ 1,206,640
Public Improvement Bonds, Series 1989B, 7.150%, 10/15/08
Frederick County, Maryland, General Obligation Public
Facilities Bonds, Series 2002:
1,000 5.000%, 11/01/21 11/12 at 101.00 AA 1,058,620
1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,052,530
3,000 Frederick County, Maryland, General Obligation Public 7/09 at 101.00 AA 3,295,890
Facilities Bonds, Series 1999, 5.250%, 7/01/18
500 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 535,605
Villages of Lake Linganore Community Development
Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured
575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 628,860
Refunding Bonds, Series 2002A, 5.250%, 8/15/18
Howard County, Maryland, Consolidated Public Improvement
Refunding Bonds, Series 2003A:
1,720 5.000%, 8/15/17 8/12 at 100.00 AAA 1,863,173
1,000 5.000%, 8/15/22 8/12 at 100.00 AAA 1,048,510
Montgomery County, Maryland, General Obligation Refunding
Bonds, Consolidated Public Improvement, Series 2001:
1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,975,663
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,218,900
925 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 981,906
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,084,700
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
21
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA $ 2,955,570
Consolidated Public Improvement Bonds, Series 2002,
4.100%, 9/15/19
5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 6,213,425
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/18
460 Wicomico County, Maryland, General Obligation Public 12/09 at 101.00 AAA 529,087
Improvement Bonds, Series 1999, 5.750%, 12/01/19 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.9%
Baltimore Board of School Commissioners, Maryland, City Public
School System Revenue Bonds, Series 2003A:
1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ 1,632,135
1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,072,570
1,870 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 2,045,163
Bonds, Series 2002A, 5.250%, 8/15/18
1,465 Community Development Administration, Maryland 6/08 at 101.00 Aaa 1,512,539
Department of Housing and Community Development,
Infrastructure Financing Bonds, Series 1998B,
5.200%, 6/01/28 - MBIA Insured
4,250 Department of Transportation, State of Maryland, County No Opt. Call AA 4,924,007
Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
1,875 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,049,769
Revenue Bonds, Maryland Department of Transportation
Headquarters Building, Series 2002, 5.375%, 6/01/19
Maryland Department of Transportation, Project Certificates of
Participation, Mass Transit Administration Project, Series 2000:
880 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 940,975
930 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 988,860
1,700 Maryland Stadium Authority, Montgomery County 6/13 at 100.00 AA+ 1,754,009
Conference Center Facilities Lease Revenue Bonds,
Series 2003, 5.000%, 6/15/24
4,455 Maryland Stadium Authority, Sports Facilities Lease 3/06 at 101.00 AAA 4,837,595
Revenue Bonds, Series 1996, 5.750%, 3/01/18 -
AMBAC Insured
1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,046,900
Metrorail Garage Projects, Series 2002, 5.000%, 6/01/21
675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 712,240
West Germantown Development District, Senior
Series 2002A, 5.500%, 7/01/27 - RAAI Insured
635 New Baltimore City Board of School Commissioners, 11/10 at 100.00 AA+ 699,840
Maryland, School System Revenue Bonds,
Series2000, 5.125%, 11/01/15
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100.00 A 1,065,240
Revenue Bonds, Series 1996Y, 5.500%, 7/01/36
1,500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,739,160
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,265,921
5.250%, 8/01/21 - FSA Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,213,680
Taxes Loan Bonds, Series 1999A, 6.500%, 10/01/24
Washington Suburban Sanitary District, Montgomery and
Prince George's Counties, Maryland, General Construction
Bonds of 2000:
1,085 5.250%, 6/01/20 6/10 at 100.00 AAA 1,189,692
1,205 5.250%, 6/01/21 6/10 at 100.00 AAA 1,313,607
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.8%
1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,199,634
System Facilities, Series 1998A, 5.250%, 7/01/17 -
FGIC Insured
2,075 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 1,371,036
Bonds, American Airlines, Inc. Project, Series 1996A,
6.250%, 6/01/26 (Alternative Minimum Tax)
3,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 3,351,600
of Columbia, Gross Revenue Bonds, Series 2003,
5.000%, 1/01/12 - MBIA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.2%
$ 2,000 City of Baltimore, Maryland, Water Projects and Refunding 7/08 at 101.00 AAA $ 2,088,340
Revenue Bonds, Series 1998A, 5.000%, 7/01/28 -
FGIC Insured
2,000 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 2,109,760
Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
1,500 Baltimore, Maryland, Project and Revenue Refunding 7/10 at 100.00 AAA 1,745,070
Bonds, Wastewater Projects, Series 2000A,
5.625%, 7/01/30 (Pre-refunded to 7/01/10) - FSA Insured
940 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,057,096
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,875 Maryland Health and Higher Educational Facilities 1/04 at 102.00 AAA 1,919,963
Authority, Revenue Bonds, Good Samaritan Hospital
Issue, Series 1993, 5.750%, 7/01/19 - AMBAC Insured
3,125 Maryland Health and Higher Educational Facilities 1/04 at 102.00 Aaa 3,166,844
Authority, Revenue Bonds, Howard County General
Hospital Issue, Series 1993, 5.500%, 7/01/25
2,560 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 2,685,542
Revenue Bonds, Helix Health Issue, Series 1997,
5.000%, 7/01/27 - AMBAC Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,100,040
Obligation Bonds, Series 2000A, 5.500%, 10/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.5%
6,000 Anne Arundel County, Maryland, Pollution Control Revenue 4/04 at 102.00 A2 6,146,040
Refunding Bonds, Baltimore Gas and Electric Company
Project, Series 1994, 6.000%, 4/01/24
6,500 Calvert County, Maryland, Pollution Control Revenue 7/04 at 102.00 A2 6,684,661
Refunding Bonds, Baltimore Gas and Electric Company
Project, Series 1993, 5.550%, 7/15/14
3,000 Maryland Energy Financing Administration Limited 9/05 at 102.00 N/R 3,049,140
Obligation Cogeneration Revenue Bonds, AES
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
5,000 Prince George's County, Maryland, Pollution Control 1/04 at 101.00 A- 5,063,350
Revenue Refunding Bonds, Potomac Electric Project,
Series 1993, 6.375%, 1/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.7%
1,000 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 1,054,880
Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 218,470 Total Long-Term Investments (cost $220,007,927) - 146.7% 228,082,054
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
500 Puerto Rico Government Development Bank, Adjustable A-1 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.010%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $220,507,927) - 147.0% 228,582,054
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.9% 5,973,244
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.9)% (79,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $155,455,298
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* 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.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
23
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5%
$ 1,660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,584,520
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.1%
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
465 5.700%, 9/01/20 3/10 at 101.00 BBB 484,428
1,000 5.750%, 9/01/25 3/10 at 101.00 BBB 1,028,250
500 5.800%, 9/01/30 3/10 at 101.00 BBB 514,220
1,800 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 1,912,518
Housing Revenue Bonds, University Village at
Sheppard Pratt, Series 2001, 6.000%, 7/01/33 -
ACA Insured
1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,062,660
Infrastructure Revenue Bonds, University of Maryland,
College Park Project, Series 2001, 5.000%, 7/01/19 -
AMBAC Insured
1,500 Maryland Health and Higher Educational Facilities 7/08 at 102.00 BBB- 1,528,050
Authority, Educational Facilities Leasehold Mortgage
Revenue Bonds, McLean School Issue, 6.000%, 7/01/31
625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 638,669
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System
Project, Series 1999:
215 5.375%, 2/01/19 2/09 at 101.00 BBB 222,323
410 5.375%, 2/01/29 2/09 at 101.00 BBB 414,588
University of Maryland System, Auxiliary Facility and Tuition
Revenue Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA+ 1,093,980
500 5.000%, 4/01/19 4/13 at 100.00 AA+ 531,610
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.0%
2,725 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,895,067
Revenue Bonds, Kaiser Permanente, Series 1998A,
5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 1,001,340
Revenue Bonds, Calvert Memorial Hospital Issue,
Series 1998, 5.000%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,024,150
Revenue Bonds, Anne Arundel Medical Center Issue,
Series 1998, 5.125%, 7/01/28 - FSA Insured
570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 577,353
Revenue Refunding Bonds, Union Hospital of Cecil County,
Series 1998, 5.100%, 7/01/22
1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,278,488
Revenue Bonds, The Johns Hopkins Hospital Issue,
Series 2001, 5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,014,120
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
750 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 750,908
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 2,020,480
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,063,000
Revenue Bonds, Carroll County General Hospital,
Series 2002, 6.000%, 7/01/26
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,005,130
Revenue Bonds, Frederick Memorial Hospital,
Series 2002, 5.125%, 7/01/35
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,011,460
Revenue Bonds, Kennedy Krieger Issue, Series 2003,
5.500%, 7/01/33
85 Prince George's County, Maryland, Project and Refunding 7/04 at 102.00 B3 57,472
Revenue Bonds, Dimensions Health Corporation Issue,
Series 1994, 5.300%, 7/01/24
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.6%
$ 750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA $ 765,383
Refunding Bonds, Cross Creek Apartments Project,
Series 1998A, 5.250%, 10/20/33
2,000 Community Development Administration, Maryland 7/08 at 101.00 Aa2 2,068,060
Department of Housing and Community Development,
Housing Revenue Bonds, Series 1998A, 5.625%, 1/01/40
(Alternative Minimum Tax)
850 Community Development Administration, Maryland 5/11 at 100.00 Aa2 871,947
Department of Housing and Community Development,
Multifamily Housing Revenue Bonds, Insured Mortgage
Loan, Series 2001B, 5.350%, 5/15/32 (Alternative
Minimum Tax)
1,000 Community Development Administration, Maryland 12/11 at 100.00 Aaa 1,035,920
Department of Housing and Community Development,
Multifamily Housing Revenue Bonds, Princess Anne
Apartments Project, Series 2001D, 5.450%, 12/15/33
(Alternative Minimum Tax)
750 Housing Opportunities Commission of Montgomery 7/08 at 101.00 Aaa 766,718
County, Maryland, Multifamily Housing Development
Bonds, Series 1998A, 5.250%, 7/01/29 (Alternative
Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,119,220
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
2,000 Housing Opportunities Commission of Montgomery County, 7/11 at 100.00 Aaa 2,074,940
Maryland, Multifamily Housing Development Bonds,
Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 18.2%
195 Community Development Administration, Maryland 9/09 at 100.00 Aa2 207,176
Department of Housing and Community Development,
Residential Revenue Bonds, Series 1997E, 5.700%, 9/01/17
3,000 Community Development Administration, Maryland 9/09 at 100.00 Aa2 3,150,600
Department of Housing and Community Development,
Residential Revenue Bonds, Series 2000G,
5.950%, 9/01/29 (Alternative Minimum Tax)
1,145 Community Development Administration, Maryland 9/10 at 100.00 Aa2 1,200,636
Department of Housing and Community Development,
Residential Revenue Bonds, Series H, 5.800%, 9/01/32
(Alternative Minimum Tax)
1,040 Community Development Administration, Department 10/10 at 100.00 Aa2 1,079,260
of Housing and Community Development, State of
Maryland, Single Family Program Bonds, First
Series 2001, 5.000%, 4/01/17
700 Community Development Administration, Department 9/10 at 100.00 Aa2 716,450
of Housing and Community Development, State of
Maryland, Residential Revenue Bonds, Series 2001B,
5.450%, 9/01/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department 3/11 at 100.00 Aa2 1,041,740
of Housing and Community Development, State of
Maryland, Residential Revenue Bonds, Series 2001F,
5.600%, 9/01/28 (Alternative Minimum Tax)
2,510 Housing Opportunities Commission of Montgomery 7/07 at 102.00 Aa2 2,683,767
County, Maryland, Single Family Mortgage
Revenue Bonds, Series 1997A, 5.750%, 7/01/13
1,205 Housing Authority of Prince George's County, Maryland, 8/07 at 102.00 AAA 1,254,513
FHLMC/FNMA/GNMA Collateralized, Single Family
Mortgage Revenue Bonds, Series 1997, 5.750%, 8/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6%
1,000 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,007,900
Recovery Revenue Bonds, Baltimore RESCO Retrofit
Project, Series 1998, 4.750%, 1/01/12 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2%
1,000 Maryland Health and Higher Educational Facilities 4/11 at 101.00 N/R 820,000
Authority, Revenue Bonds, Collington Episcopal Life,
Series 2001A, 6.750%, 4/01/23
540 Maryland Health and Higher Educational Facilities 4/13 at 101.00 N/R 537,829
Authority, Revenue Bonds, Mercy Ridge Retirement
Community, Series 2003A, 6.000%, 4/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.4%
Anne Arundel County, Maryland, General Obligation Bonds,
Various Purpose, Series 2001:
580 4.800%, 2/15/18 2/11 at 101.00 AA+ 609,986
500 5.000%, 2/15/28 2/11 at 101.00 AA+ 514,430
3,500 Baltimore County, Maryland, Metropolitan District General 6/11 at 101.00 AAA 3,614,730
Obligation Bonds, 67th Issue, 5.000%, 6/01/27
1,500 Baltimore County, Maryland, General Obligation 8/12 at 100.00 AAA 1,615,215
Consolidated Public Improvement Bonds, Series 2002,
5.000%, 8/01/18
1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,052,530
Facilities Bonds, Series 2002, 5.000%, 11/01/22
25
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Howard County, Maryland, Consolidated Public Improvement
Bonds, Series 2001A:
$ 1,220 4.750%, 2/15/20 2/09 at 101.00 AAA $ 1,255,953
1,360 4.750%, 2/15/21 2/09 at 101.00 AAA 1,394,095
500 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 548,990
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
430 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 456,454
Series 2000A, 6.000%, 6/01/20 - ACA Insured
740 Mayor and City Council of Ocean City, Maryland, General 3/11 at 101.00 AAA 776,637
Obligation Municipal Purpose Bonds, Series 2001,
4.875%, 3/01/19 - FGIC Insured
1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,627,050
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,085,310
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.6%
815 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 820,909
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
500 Baltimore Board of School Commissioners, Maryland, 5/13 at 100.00 AA+ 536,285
City Public School System Revenue Bonds, Series 2003A,
5.000%, 5/01/18
1,500 Department of Transportation, State of Maryland, County No Opt. Call AA 1,737,885
Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,535,960
Revenue Bonds, Maryland Department of Transportation
Headquarters Building, Series 2002, 5.375%, 6/01/19
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 811,608
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,434,454
Taxes Loan Bonds, Series 1999A, 6.375%, 10/01/19
Washington Suburban Sanitary District, Montgomery and
Prince George's Counties, Maryland, General Construction
Bonds of 2001:
895 5.000%, 6/01/22 6/11 at 100.00 AAA 933,378
935 5.000%, 6/01/23 6/11 at 100.00 AAA 969,632
985 5.000%, 6/01/24 6/11 at 100.00 AAA 1,017,032
1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,065,336
1,290 Washington Suburban Sanitary District, Montgomery 6/11 at 100.00 AAA 1,338,220
and Prince George's Counties, Maryland, Water Supply
Bonds of 2001, 4.750%, 6/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.1%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, The Johns Hopkins Medical Institutions,
Issue of 2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 662,552
750 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 760,373
1,000 Washington Metropolitan Area Transit Authority, No Opt. Call AAA 1,117,200
District of Columbia, Gross Revenue Bonds, Series 2003,
5.000%, 1/01/12 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.0%
1,015 City of Baltimore, Maryland, Water Projects and Refunding 7/08 at 101.00 AAA 1,059,833
Revenue Bonds, Series 1998A, 5.000%, 7/01/28 -
FGIC Insured
670 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 706,770
Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
2,350 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,642,739
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Maryland Transportation Authority, Transportation Facilities No Opt. Call AAA 1,212,420
Project Revenue Refunding Bonds, First Series,
6.800%, 7/01/16
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,512,727
1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,854,054
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1%
$ 2,500 Maryland Energy Financing Administration, Limited 9/05 at 102.00 N/R $ 2,540,950
Obligation Cogeneration Revenue Bonds, AES
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
1,800 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,877,868
Refunding Bonds, Series Z, 5.250%, 7/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6%
330 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 348,107
Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 87,985 Total Long-Term Investments (cost $89,064,939) - 148.0% 92,164,515
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 2,110,232
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $62,274,747
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
27
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.4%
$ 830 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 792,260
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
800 Virgin Islands Tobacco Settlement Financing Corporation, 5/11 at 100.00 Baa2 709,088
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.5%
1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,132,945
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,009,320
Housing Revenue Bonds, University of Maryland at
Baltimore, Series 2003A, 5.625%, 10/01/23
250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 254,675
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School Issue, 6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities Authority, 1/11 at 101.00 AAA 436,082
Revenue Bonds, Bullis School Issue, Series 2000,
5.250%, 7/01/30 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities 7/08 at 102.00 AA 1,103,380
Authority, Refunding Revenue Bonds, The Johns Hopkins
University Issue, Series 1998, 5.125%, 7/01/12
1,000 Maryland Health and Higher Educational Facilities 10/08 at 101.00 AAA 1,000,910
Authority, Revenue Bonds, College of Notre Dame of
Maryland Issue, Series 1998, 4.650%, 10/01/23 -
MBIA Insured
1,250 Maryland Health and Higher Educational Facilities 6/11 at 100.00 Baa1 1,277,338
Authority, Revenue Bonds, Maryland Institute College of
Art, Series 2001, 5.500%, 6/01/32
500 Morgan State University, Maryland, Academic and Auxiliary 7/12 at 100.00 AAA 520,065
Fees Revenue Bonds, Series 2001, 4.900%, 7/01/21 -
FGIC Insured
500 Morgan State University, Maryland, Academic and 7/13 at 100.00 AAA 532,715
Auxiliary Fees Revenue Bonds, Series 2003A,
5.000%, 7/01/20 - FGIC Insured
University of Maryland System, Auxiliary Facility and Tuition
Revenue Bonds, Series 2001B:
1,580 4.375%, 4/01/17 4/11 at 100.00 AA+ 1,609,736
1,140 4.500%, 4/01/19 4/11 at 100.00 AA+ 1,155,242
1,000 University of Maryland System, Auxiliary Facility and 4/13 at 100.00 AA+ 1,063,220
Tuition Revenue Bonds, Series 2003A, 5.000%, 4/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.5%
1,000 Maryland Health and Higher Educational Facilities 7/08 at 101.00 AAA 1,020,290
Authority, Revenue Bonds, Anne Arundel Medical
Center Issue, Series 1998, 5.125%, 7/01/33 -
FSA Insured
2,000 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A- 2,028,240
Authority, Revenue Bonds, Mercy Medical Center,
Series 2001, 5.625%, 7/01/31
750 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 750,908
Authority, Revenue Bonds, Greater Baltimore Medical
Center, Series 2001, 5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A 2,020,480
Authority, Revenue Bonds, University of Maryland
Medical System, Series 2001, 5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,063,000
Revenue Bonds, Carroll County General Hospital,
Series 2002, 6.000%, 7/01/26
1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,005,130
Authority, Revenue Bonds, Frederick Memorial Hospital,
Series 2002, 5.125%, 7/01/35
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,011,460
Revenue Bonds, Kennedy Krieger Issue, Series 2003,
5.500%, 7/01/33
2,160 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA- 2,211,257
Revenue Bonds, Trinity Health Care Group, Series 2001,
5.125%, 12/01/22
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.6%
$ 55 Community Development Administration, Department 5/11 at 100.00 Aa2 $ 56,082
of Housing and Community Development, Maryland,
Multifamily Housing Insured Mortgage Loans,
Series 2001A, 5.100%, 5/15/28
4,255 Community Development Administration, Department 5/11 at 100.00 Aa2 4,364,864
of Housing and Community Development, Maryland,
Multifamily Housing Revenue Bonds, Insured Mortgage
Loan, Series 2001B, 5.350%, 5/15/32 (Alternative
Minimum Tax)
1,110 Community Development Administration, Department 12/11 at 100.00 Aaa 1,149,871
of Housing and Community Development, Maryland,
Multifamily Housing Revenue Bonds, Princess Anne
Apartments Project, Series 2001D, 5.450%, 12/15/33
(Alternative Minimum Tax)
3,145 Community Development Administration, Department 12/11 at 100.00 Aaa 3,257,968
of Housing and Community Development, Maryland,
Multifamily Development Revenue Bonds, Waters
Towers Senior Apartments, Series 2001F,
5.450%, 12/15/33 (Alternative Minimum Tax)
1,000 Community Development Administration, Department 5/12 at 100.00 Aa2 1,043,110
of Housing and Community Development, Maryland,
Multifamily Housing Insured Mortgage Revenue Bonds,
Series 2002A, 5.300%, 5/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.4%
500 Community Development Administration, Department 3/07 at 101.50 Aa2 520,725
of Housing and Community Development, Maryland,
Residential Revenue Bonds, Series 1997B,
5.875%, 9/01/25 (Alternative Minimum Tax)
1,000 Community Development Administration, Department 9/10 at 100.00 Aa2 1,025,430
of Housing and Community Development, Maryland,
Residential Revenue Bonds, Series 2001H,
5.350%, 9/01/32 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.6%
2,250 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 2,267,775
Recovery Revenue Bonds, Baltimore RESCO Retrofit
Project, Series 1998, 4.750%, 1/01/12 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1%
730 Maryland Health and Higher Educational Facilities 4/13 at 101.00 N/R 727,065
Authority, Revenue Bonds, Mercy Ridge Retirement
Community, Series 2003A, 6.000%, 4/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 44.8%
755 Anne Arundel County, Maryland, General Obligation 3/12 at 100.00 AA+ 771,595
Bonds, Series 2002, 5.000%, 3/01/31
1,500 Baltimore County, Maryland, General Obligation 8/12 at 100.00 AAA 1,615,215
Consolidated Public Improvement Bonds, Series 2002,
5.000%, 8/01/18
Cecil County, Maryland, General Obligation Bonds,
Consolidated Public Improvement, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,008,199
1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,046,071
300 4.625%, 8/01/20 8/11 at 101.00 AA- 306,324
335 4.750%, 8/01/21 8/11 at 101.00 AA- 344,112
1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,064,750
Facilities Bonds, Series 2002, 5.000%, 11/01/20
3,000 Frederick County, Maryland, General Obligation Public 12/10 at 101.00 AA 3,276,030
Facilities Bonds, Series 2000, 5.200%, 12/01/19
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 532,741
Improvement Bonds, Series 2001, 4.750%, 12/01/19
750 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 823,485
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
State of Maryland, General Obligation Bonds, State and Local
Facilities Loan of 2001, First Series:
2,445 5.500%, 3/01/11 No Opt. Call AAA 2,832,264
1,500 5.500%, 3/01/12 No Opt. Call AAA 1,737,000
4,730 Montgomery County, Maryland, General Obligation Refunding 10/11 at 101.00 AAA 5,247,698
Bonds, Consolidated Public Improvement,
Series 2001, 5.250%, 10/01/18
Prince George's County, Maryland, General Obligation
Consolidated Public Improvement Bonds, Series 2001:
1,000 5.250%, 12/01/20 - FGIC Insured 12/11 at 101.00 AAA 1,084,700
2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,042,808
29
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Puerto Rico, Public Improvement General Obligation 7/11 at 100.00 AAA $ 2,065,580
Refunding Bonds, Series 2001, 5.000%, 7/01/24 -
FSA Insured
1,500 Puerto Rico, Public Improvement General Obligation No Opt. Call A- 1,629,240
Bonds, Series 2002A, 5.500%, 7/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.1%
750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 765,825
Consolidated Water and Sewer, Series 1999,
4.500%, 8/01/19
815 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 820,909
Revenue Bonds, Parole Town Center Project,
Series 2002, 5.000%, 7/01/12
Baltimore County, Maryland, Certificates of Participation,
Health and Social Services Building Project, Series 2001:
1,580 5.000%, 8/01/20 8/11 at 101.00 AA+ 1,671,988
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,747,714
530 Baltimore Board of School Commissioners, Maryland, 5/13 at 100.00 AA+ 581,076
City Public School System Revenue Bonds, Series 2003A,
5.000%, 5/01/15
1,000 Department of Transportation, State of Maryland, No Opt. Call AA 1,158,590
County Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,535,960
Revenue Bonds, Maryland Department of Transportation
Headquarters Building, Series 2002, 5.375%, 6/01/19
1,000 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 1,055,170
West Germantown Development District, Senior
Series 2002A, 5.500%, 7/01/27 - RAAI Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 811,608
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,100 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 1,167,188
Revenue Bonds, Series 1997A, 5.000%, 7/01/21 -
AMBAC Insured
800 Puerto Rico Public Finance Corporation, Commonwealth 8/11 at 100.00 AAA 838,632
Appropriation Bonds, Series 2001A, 5.000%, 8/01/21 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.2%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, The Johns Hopkins Medical Institutions
Issue of 2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 662,552
2,775 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 2,813,378
1,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 1,117,200
of Columbia, Gross Revenue Bonds, Series 2003,
5.000%, 1/01/12 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.5%
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,188,380
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
1,260 Maryland Health and Higher Educational Facilities No Opt. Call AAA 1,387,600
Authority, Revenue Bonds, Helix Health Issue,
Series 1997, 5.000%, 7/01/17 - AMBAC Insured
1,365 Maryland Transportation Authority, Transportation No Opt. Call AAA 1,654,953
Facilities Project Revenue Refunding Bonds, First Series,
6.800%, 7/01/16
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,362,480
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3%
$ 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA $ 1,057,190
5.250%, 10/01/34 - MBIA Insured
1,000 Maryland Energy Financing Administration, Limited 9/05 at 102.00 N/R 1,016,380
Obligation Cogeneration Revenue Bonds, AES Warrior
Run Project, Series 1995, 7.400%, 9/01/19 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 88,850 Total Long-Term Investments (cost $90,310,383) - 148.0% 93,963,216
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 1,507,714
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.4)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $63,470,930
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
31
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6%
$ 2,895 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,763,364
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.2%
225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 231,739
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
1,250 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,261,650
Housing Revenue Bonds, University of Maryland at
Baltimore, Series 2003A, 5.625%, 10/01/23
2,040 Maryland Health and Higher Educational Facilities 10/09 at 101.00 A 2,060,808
Authority, Revenue Bonds, Loyola College Issue,
Series 1999, 5.000%, 10/01/39
1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 AA 1,018,130
Authority, Revenue Bonds, The Johns Hopkins
University, Series 2002A, 5.000%, 7/01/32
1,500 Morgan State University, Maryland, Academic and 7/13 at 100.00 AAA 1,541,940
Auxiliary Fees Revenue Bonds, Series 2003A,
5.000%, 7/01/32 - FGIC Insured
985 University of Maryland System, Auxiliary Facility and 4/11 at 100.00 AA+ 997,184
Tuition Revenue Bonds, Series 2001B, 4.625%, 4/01/21
University of Maryland System, Auxiliary Facility and
Tuition Revenue Bonds, Series 2002A:
1,000 5.000%, 4/01/09 No Opt. Call AA+ 1,119,630
2,000 5.125%, 4/01/22 4/12 at 100.00 AA+ 2,102,780
University of Maryland System, Auxiliary Facility and
Tuition Revenue Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA+ 1,093,980
1,000 5.000%, 4/01/19 4/13 at 100.00 AA+ 1,063,220
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.7%
3,000 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,245,580
Revenue Bonds, Medlantic/Helix Issue, Series 1998B,
5.250%, 8/15/38 - AMBAC Insured
1,000 Maryland Health and Higher Educational Facilities 7/08 at 101.00 AAA 1,020,290
Authority, Revenue Bonds, Anne Arundel Medical
Center Issue, Series 1998, 5.125%, 7/01/33 -
FSA Insured
1,000 Maryland Health and Higher Educational Facilities 5/11 at 100.00 AA- 1,022,790
Authority, Revenue Bonds, The Johns Hopkins
Hospital Issue, Series 2001, 5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 1,001,210
Authority, Revenue Bonds, Greater Baltimore Medical
Center, Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,005,130
Authority, Revenue Bonds, Frederick Memorial
Hospital, Series 2002, 5.125%, 7/01/35
1,845 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,903,191
Authority, Revenue Bonds, Union Hospital of Cecil
County, Series 2002, 5.625%, 7/01/32
775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa1 782,928
Revenue Refunding Bonds, Adventist Healthcare,
Series 2003A, 5.750%, 1/01/25
1,355 Maryland Health and Higher Educational Facilities 7/13 at 100.00 Baa2 1,370,528
Authority, Revenue Bonds, Kennedy Krieger Issue,
Series 2003, 5.500%, 7/01/33
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 20.3%
4,000 Community Development Administration, Maryland 7/12 at 100.00 Aa2 4,034,360
Department of Housing and Community Development,
Housing Revenue Bonds, Series 2002B, 4.950%, 7/01/32
(Alternative Minimum Tax)
Housing Opportunities Commission of Montgomery County,
Maryland, Multifamily Housing Development Bonds:
515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 522,128
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,041,130
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 3,000 Housing Authority of Prince George's County, Maryland, 2/13 at 102.00 AAA $ 3,048,390
Mortgage Revenue Bonds, Series 2002A, GNMA
Collateralized Windsor Crossing Apartments Project,
5.150%, 8/20/33
4,860 Housing Authority of Prince George's County, Maryland, 11/12 at 100.00 AAA 4,984,513
Mortgage Revenue Bonds, Fairfield and Hillside Projects,
GNMA Collateralized, Series 2002A, 4.700%, 11/20/22
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.5%
1,900 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,915,010
Recovery Revenue Bonds, Baltimore RESCO Retrofit
Project, Series 1998, 4.750%, 1/01/12 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.2%
265 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 217,300
Revenue Bonds, Collington Episcopal Life, Series 2001A,
6.750%, 4/01/23
730 Maryland Health and Higher Educational Facilities Authority, 4/13 at 101.00 N/R 727,065
Revenue Bonds, Mercy Ridge Retirement Community,
Series 2003A, 6.000%, 4/01/35
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 36.4%
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,031,890
Refunding Bonds, Series 2002, 4.375%, 4/01/17
2,115 Baltimore County, Maryland, General Obligation 8/12 at 100.00 AAA 2,343,843
Consolidated Public Improvement Bonds, Series 2002,
5.250%, 8/01/17
1,000 Calvert County, Maryland, General Obligation Public 1/12 at 101.00 AA 1,048,930
Improvement Bonds, Series 2002, 4.500%, 1/01/16
1,260 Charles County, Maryland, General Obligation Consolidated 1/12 at 101.00 AA 1,324,852
Public Improvement Bonds, Series 2002, 4.400%, 1/15/16
Frederick County, Maryland, General Obligation Public
Facilities Bonds, Series 2002:
1,830 5.000%, 11/01/20 11/12 at 101.00 AA 1,948,492
2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,154,292
2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,631,325
1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,248,333
Bonds, Series 2001A, 4.750%, 2/15/19
1,215 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,334,046
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
2,000 State of Maryland, General Obligation Bonds, State and No Opt. Call AAA 2,276,860
Local Facilities Loan, Series 2002B, 5.250%, 2/01/10
2,000 Montgomery County, Maryland, General Obligation 2/12 at 101.00 AAA 2,128,860
Consolidated Public Improvements Bonds, Series 2002A,
5.000%, 2/01/20
5,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 4,938,450
Consolidated Public Improvement Bonds, Series 2002,
4.300%, 9/15/21
1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,085,310
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
1,430 Puerto Rico, Public Improvement General Obligation 7/11 at 100.00 AAA 1,482,038
Refunding Bonds, Series 2001, 5.125%, 7/01/30 -
FSA Insured
1,000 St. Mary's County, Maryland, General Obligation No Opt. Call AA- 1,117,610
Hospital Bonds of 2002, 5.000%, 10/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.0%
500 Baltimore, Maryland, Convention Center Revenue Refunding 9/08 at 102.00 AAA 533,095
Bonds, Series 1998, 5.000%, 9/01/19 - MBIA Insured
1,000 Baltimore Board of School Commissioners, Maryland, City 5/13 at 100.00 AA+ 1,096,370
Public School System Revenue Bonds, Series 2003A,
5.000%, 5/01/15
5,000 Department of Transportation, State of Maryland, County No Opt. Call AA 5,792,950
Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
2,200 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,236,190
Revenue Bonds, Maryland Department of Transportation
Headquarters Building, Series 2002, 4.750%, 6/01/22
2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,230,936
Bonds, Montgomery County Wayne Avenue Parking
Project, Series 2002A, 5.250%, 9/15/16
33
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Maryland Stadium Authority, Montgomery County Conference
Center Facilities Lease Revenue Bonds, Series 2003:
$ 1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ $ 1,540,477
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,680,361
700 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 811,608
Highway Revenue Bonds, Series 2003AA,
5.500%, 7/01/19 - MBIA Insured
3,500 Puerto Rico Infrastructure Financing Authority, Special 1/08 at 101.00 AAA 3,575,740
Tax Revenue Bonds, Series 1997A, 5.000%, 7/01/28 -
AMBAC Insured
Puerto Rico Public Buildings Authority, Guaranteed
Government Facilities Revenue Bonds, Series 2002G:
1,000 5.250%, 7/01/17 7/12 at 100.00 A- 1,072,430
1,205 5.250%, 7/01/20 7/12 at 100.00 A- 1,267,443
1,275 5.250%, 7/01/21 7/12 at 100.00 A- 1,333,676
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,085,230
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
935 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 979,721
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.4%
1,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 1,117,200
of Columbia, Gross Revenue Bonds, Series 2003,
5.000%, 1/01/12 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.7%
385 Maryland Transportation Authority, Transportation Facilities No Opt. Call AAA 466,782
Project Revenue Refunding Bonds, First Series,
6.800%, 7/01/16
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,453,100
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1%
1,250 Maryland Energy Financing Administration Limited Obligation 9/05 at 102.00 N/R 1,270,475
Cogeneration Revenue Bonds, AES Warrior Run Project,
Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax)
4,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 4,226,371
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.4%
2,570 City of Baltimore, Maryland, Wastewater Project Revenue 7/12 at 100.00 AAA 2,631,218
Refunding Bonds, Series 2002A, 5.125%, 7/01/42 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 109,300 Total Long-Term Investments (cost $113,136,778) - 148.5% 114,592,472
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,563,344
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.5)% (39,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $77,155,816
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
34
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.2%
$ 1,660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,584,520
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.1%
3,500 Alexandria Industrial Development Authority, Virginia, 10/10 at 101.00 AAA 3,974,845
Fixed Rate Revenue Bonds, Institute for Defense
Analyses, Series 2000A, 5.900%, 10/01/30 -
AMBAC Insured
Danville Industrial Development Authority, Virginia, Student
Housing Revenue Bonds, Collegiate Housing Foundation, Averett
College Project, Series 1999A:
500 6.875%, 6/01/20 6/09 at 102.00 N/R 477,265
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,419,945
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 994,840
Virginia, Educational Facilities Revenue Bonds, The
Catholic Diocese of Arlington, Series 2003,
5.500%, 10/01/33 (WI, Settling 12/10/03)
500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 527,995
Revenue Refunding and Improvement Bonds,
Series 1999, 6.000%, 10/15/28
500 Industrial Development Authority of Rockbridge County, 7/11 at 100.00 B2 446,045
Virginia, Virginia Horse Center Revenue and Refunding
Bonds, Series 2001C, 6.850%, 7/15/21
2,000 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,040,440
Revenue Bonds, Public Higher Education Financing
Program, Series 2001A, 5.000%, 9/01/26
3,000 Virginia College Building Authority, Educational Facilities 11/04 at 100.00 Aa1 3,113,370
Revenue Bonds, University of Richmond Project,
Series 1994, 5.550%, 11/01/19 (Optional put 11/01/04)
1,000 Virginia College Building Authority, Educational Facilities No Opt. Call AAA 1,099,220
Revenue Bonds, Washington and Lee University
Project, Series 1998, 5.250%, 1/01/31 - MBIA Insured
1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+ 1,109,570
Revenue Bonds, Hampton University Project, Series 2000,
6.000%, 4/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 24.3%
2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 1,983,940
Virginia, Hospital Revenue Bonds, Martha Jefferson
Hospital, Series 2002, 5.250%, 10/01/35
2,000 Danville Industrial Development Authority, Virginia, No Opt. Call AAA 2,235,580
Hospital Revenue Bonds, Danville Regional Medical
Center, Series 1998, 5.200%, 10/01/18 -
AMBAC Insured
4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA 5,057,629
Hospital Revenue Refunding Bonds, Inova Health
System Hospitals Project, Series 1993A, 5.000%, 8/15/23
1,200 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,200,792
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
4,650 Hanover County Industrial Development Authority, 8/05 at 102.00 AAA 4,925,280
Virginia, Hospital Revenue Bonds, Bon Secours Health
System Projects, Series 1995, 5.500%, 8/15/25 -
MBIA Insured
1,500 Henrico County Economic Development Authority, 11/12 at 100.00 A- 1,541,985
Virginia, Revenue Bonds, Bon Secours Health System
Inc., Series 2002A, 5.600%, 11/15/30
1,500 Henrico County Industrial Development Authority, No Opt. Call AAA 1,820,850
Virginia, Healthcare Revenue Bonds, Bon Secours
Health System Inc., Series 1996, 6.250%, 8/15/20 -
MBIA Insured
Loudoun County Industrial Development Authority, Virginia,
Loudoun Hospital Center Revenue Bonds, Series 2002A:
375 6.000%, 6/01/22 6/12 at 101.00 BBB- 386,918
800 6.100%, 6/01/32 6/12 at 101.00 BBB- 819,288
2,260 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 2,283,956
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
35
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,750 Medical College of Virginia Hospitals Authority, General 7/08 at 102.00 AAA $ 4,876,350
Revenue Bonds, Series 1998, 5.125%, 7/01/23 -
MBIA Insured
2,500 Industrial Development Authority of the City of Norfolk, 11/04 at 102.00 AA 2,664,650
Virginia, Hospital Revenue and Refunding Bonds, Sentara
Hospitals-Norfolk, Series 1994A, 6.500%, 11/01/13
3,000 Industrial Development Authority of the County of Roanoke, 7/12 at 100.00 AAA 3,275,340
Virginia, Hospital Revenue Bonds, Carilion Health System,
Series 2002A, 5.500%, 7/01/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 8.5%
455 Arlington County Industrial Development Authority, Virginia, 7/05 at 102.00 A 476,749
Multifamily Housing Mortgage Revenue Bonds, Arlington
Housing Corporation, Series 1995, 5.700%, 7/01/07
1,495 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,589,992
Multifamily Housing Revenue Bonds, Patrick Henry
Apartments Project, Series 2000, 6.050%, 11/01/32
(Alternative Minimum Tax) (Mandatory put 11/01/20)
4,445 Hampton Redevelopment and Housing Authority, Virginia, 1/04 at 101.00 A-1 4,553,814
Multifamily Housing Revenue Refunding Bonds, Chase
Hampton II Apartments, Series 1994, 7.000%, 7/01/24
(Mandatory put 7/01/04)
1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,639,701
GNMA Mortgage-Backed Securities Beth Sholom Assisted
Living Revenue Bonds, Series 1999A, 5.900%, 7/20/29
1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,024,210
Vistas Revenue Bonds - GNMA Mortgage-Backed
Securities Financing, Series 2000A, 6.200%, 1/20/40
(Alternative Minimum Tax)
2,355 Suffolk Redevelopment and Housing Authority, Virginia, 1/04 at 100.00 AAA 2,356,225
Mortgage Revenue Refunding Bonds, FHA-Insured
Mortgage Loan - Wilson Pines Apartments Section 8
Assisted Project, Series 1993, 6.125%, 1/01/23 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.5%
1,000 Puerto Rico Housing Finance Authority, Home Mortgage 6/13 at 100.00 AAA 1,006,810
Revenue Bonds, Mortgage-Backed Securities Program,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,019,500
Mortgage Bonds, Series 2001H, Subseries H-1,
5.350%, 7/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5%
2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,071,040
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia, Inc. Project, Series 1999,
4.875%, 2/01/09 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.6%
Winchester Industrial Development Authority, Virginia,
Residential Care Facility First Mortgage Revenue Bonds,
Westminster-Canterbury of Winchester Inc., Series 1998:
1,350 5.750%, 1/01/18 1/04 at 101.00 N/R 1,281,231
1,000 5.750%, 1/01/27 1/04 at 101.00 N/R 908,670
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.2%
500 Industrial Development Authority of the County of Bedford, 2/08 at 102.00 Ba3 416,625
Virginia, Industrial Development Refunding Revenue
Bonds, Nekoosa Packaging Corporation, Series 1998,
5.600%, 12/01/25 (Alternative Minimum Tax)
1,900 Industrial Development Authority of the County 12/09 at 101.00 Ba3 1,782,485
of Bedford, Virginia, Industrial Development Refunding
Revenue Bonds, Nekoosa Packaging Corporation,
Series 1999A, 6.550%, 12/01/25 (Alternative Minimum Tax)
1,000 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 838,770
Virginia, Industrial Development Revenue Refunding
Bonds, Nekoosa Packaging Corporation Project,
Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax)
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.0%
Chesapeake, Virginia, General Obligation Water and
Sewer Bonds, Series 2003B:
$ 1,880 5.000%, 6/01/21 6/13 at 100.00 AA $ 1,979,565
2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,141,391
Hampton, Virginia, General Obligation Public Improvement
Bonds, Series 2000:
890 5.750%, 2/01/17 2/10 at 102.00 AA 1,016,692
2,000 6.000%, 2/01/20 2/10 at 102.00 AA 2,322,000
1,355 Harrisonburg, Virginia, General Obligation Bonds, 7/12 at 101.00 AAA 1,444,728
Public Safety and Steam Plant, Series 2002,
5.000%, 7/15/19 - FGIC Insured
585 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AA+ 624,979
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
Newport News, Virginia, General Obligation Bonds,
Series 2002A, General Improvement and Water Projects:
2,770 5.000%, 7/01/19 7/13 at 100.00 AA 2,953,513
1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,058,130
1,400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,486,128
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,430 City of Roanoke, Virginia, General Obligation Public 10/12 at 101.00 AA 1,552,851
Improvement Bonds, Series 2002A, 5.000%, 10/01/17
1,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,504,885
Improvement Bonds, Series 2001, 5.000%, 6/01/20
2,155 City of Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,368,043
Series 2003B, 5.000%, 5/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.1%
750 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 792,608
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured
Cumberland County, Virginia, Certificates of Participation,
Series 1997:
1,075 6.200%, 7/15/12 No Opt. Call N/R 1,170,826
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,497,825
500 Dinwiddie County Industrial Development Authority, 2/07 at 102.00 N/R 521,005
Virginia, Lease Revenue Bonds, Dinwiddie County
School Facilities Project, Series 1997A, 6.000%, 2/01/18
Fairfax County Economic Development Authority, Virginia, Lease
Revenue Bonds, Laurel Hill Public Facilities Project, Series
2003:
2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,506,769
2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,266,365
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 102.00 AA 1,169,660
Parking Revenue Bonds, Vienna II Metrorail Station
Project, First Series 1999, 6.000%, 9/01/18
Greater Richmond Convention Center Authority, Virginia, Hotel
Tax Revenue Bonds, Convention Center Expansion Project, Series
2000:
600 6.125%, 6/15/25 6/10 at 101.00 A- 668,796
2,000 6.125%, 6/15/29 6/10 at 101.00 A- 2,229,320
3,000 Hampton Roads Regional Jail Authority, Virginia, Regional 7/06 at 102.00 AAA 3,240,330
Jail Facility Revenue Bonds, Series 1996A,
5.500%, 7/01/24 - MBIA Insured
1,230 Middlesex County Industrial Development Authority, 8/09 at 102.00 AAA 1,398,953
Virginia, Lease Revenue Bonds, School Facilities Project,
Series 1999, 6.000%, 8/01/24 - MBIA Insured
1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,391,328
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,000 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 AAA 2,052,600
Highway Revenue Bonds, Series 2002D, 5.000%, 7/01/32 -
FSA Insured
Puerto Rico Public Buildings Authority, Guaranteed
Government Facilities Revenue Refunding Bonds,
Series 2002D:
1,000 5.250%, 7/01/27 7/12 at 100.00 A- 1,030,130
1,200 5.250%, 7/01/36 7/12 at 100.00 A- 1,232,244
37
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA $ 1,106,037
Virginia, Industrial Development Lease Revenue Bonds,
School Facilities Project, Series 2003B, 4.375%, 8/01/20 -
AMBAC Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,213,680
Taxes Loan Bonds, Series 1999A, 6.500%, 10/01/24
2,250 Virginia College Building Authority, Educational Facilities 2/09 at 101.00 AA+ 2,560,320
Revenue Bonds, 21st Century College Program,
Series 2000, 6.000%, 2/01/20
2,000 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 2,075,260
Revenue Bonds, 21st Century College and Equipment
Program, Series 2002A, 5.000%, 2/01/22
2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,112,720
1997 Resolution, Series 2000B, 5.000%, 8/01/18
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2000B:
1,120 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 1,242,080
3,060 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 3,314,837
1,740 Virginia Resources Authority, Infrastructure Revenue 5/11 at 101.00 AA 1,841,024
Bonds, Pooled Loan Bond Program, Series 2002A,
5.000%, 5/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.6%
1,400 Metropolitan Washington Airports Authority, Virginia, 10/07 at 101.00 Aa3 1,439,256
Airport System Revenue Bonds, Series 1997A,
5.375%, 10/01/23
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,104,240
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
530 Pocahontas Parkway Association, Virginia, Route 895 8/08 at 102.00 Baa3 409,123
Connector Toll Road Senior Lien Revenue Bonds,
Series 1998A, 5.500%, 8/15/28
2,500 Richmond Metropolitan Authority, Virginia, Expressway No Opt. Call AAA 2,773,225
Revenue Refunding Bonds, Series 2002,
5.250%, 7/15/22 - FGIC Insured
6,065 Virginia Port Authority, Port Facilities Revenue Bonds, 7/07 at 101.00 AAA 6,420,227
Series 1997, 5.600%, 7/01/27 (Alternative Minimum
Tax) - MBIA Insured
2,000 Virginia Resources Authority, Airport Revolving Fund 2/11 at 100.00 Aa2 2,101,620
Revenue Bonds, Series 2001A, 5.250%, 8/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.5%
1,530 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,720,592
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,726,550
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
3,955 Virginia Resources Authority, Water and Sewer System 10/07 at 100.00 AA*** 4,481,213
Revenue Bonds, Sussex County Project, Series 1995A,
5.600%, 10/01/25 (Pre-refunded to 10/01/07)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.3%
Bristol, Virginia, Utility System Revenue Refunding Bonds,
Series 2003:
1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA 1,912,260
1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 2,008,008
2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,950,546
2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 2,546,825
Virginia, Exempt Facility Revenue Refunding Bonds,
UAE LP Project, Series 2002, 6.500%, 10/15/17
3,500 City of Richmond, Virginia, Public Utility Revenue Refunding 1/08 at 101.00 AAA 3,580,465
Bonds, Series 1998A, 5.125%, 1/15/28 - FGIC Insured
City of Richmond, Virginia, Public Utility Revenue Refunding
Bonds, Series 2002:
750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 765,727
1,600 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,625,008
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.4%
$ 2,000 Fairfax County, Virginia, Sewer Revenue Bonds, Series 1996, 7/06 at 102.00 AAA $ 2,200,640
5.875%, 7/15/28 - MBIA Insured
2,000 Fairfax County Water Authority, Virginia, Water Revenue 4/10 at 101.00 AAA 2,190,020
Bonds, Series 2000, 5.625%, 4/01/25
Fairfax County Water Authority, Virginia, Water Revenue
Refunding Bonds, Series 2002:
2,030 5.375%, 4/01/19 4/12 at 100.00 AAA 2,220,942
1,000 5.000%, 4/01/27 4/12 at 100.00 AAA 1,024,680
1,650 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,680,146
Refunding Bonds, Series 1999, 5.000%, 5/01/28
6,200 City of Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA 6,791,852
5.875%, 11/01/20 - MBIA Insured
City of Norfolk, Virginia, Water Revenue and Refunding
Bonds, Series 2001:
1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,359,846
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,425,057
1,955 Rivanna Water and Sewer Authority, Virginia, Regional 10/09 at 101.00 Aa3 2,082,349
Water and Sewer System Revenue Bonds, Series 1999,
5.625%, 10/01/29
1,000 Upper Occoquan Sewage Authority, Virginia, Regional 1/04 at 102.00 AAA 1,022,640
Sewerage System Revenue Refunding Bonds,
Series 1993, 5.000%, 7/01/21 - FGIC Insured
2,250 City of Virginia Beach, Virginia, Storm Water Utility 9/10 at 101.00 Aa3 2,569,722
Revenue Bonds, Series 2000, 6.000%, 9/01/24
500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 564,060
Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
$ 186,485 Total Long-Term Investments (cost $185,968,498) - 144.8% 197,610,896
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 2,638,714
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.8)% (63,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $136,449,610
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* 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.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
39
Nuveen Virginia Dividend Advantage Municipal Fund (NGB)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.8%
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 150 5.000%, 5/15/22 5/11 at 100.00 Baa2 $ 150,228
850 5.400%, 5/15/31 5/11 at 100.00 Baa2 807,458
1,400 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa2 1,279,614
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.0%
500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 498,025
Educational Facilities Revenue Bonds, Averett University
Project, Series 2001, 6.000%, 3/15/22
500 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 497,420
Virginia, Educational Facilities Revenue Bonds, The
Catholic Diocese of Arlington, Series 2003,
5.500%, 10/01/33 (WI, settling 12/10/03)
850 Prince William County Park Authority, Virginia, Park 10/09 at 101.00 A3 897,592
Facilities Revenue Refunding and Improvement
Bonds, Series 1999, 6.000%, 10/15/28
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System
Project, Series 1999:
160 5.375%, 2/01/19 2/09 at 101.00 BBB 165,450
320 5.375%, 2/01/29 2/09 at 101.00 BBB 323,581
420 Industrial Development Authority of Rockbridge County, No Opt. Call B2 376,879
Virginia, Virginia Horse Center Revenue and Refunding
Bonds, Series 2001B, 6.125%, 7/15/11
1,000 Industrial Development Authority of Rockbridge County, 7/11 at 100.00 B2 892,090
Virginia, Virginia Horse Center Revenue and Refunding
Bonds, Series 2001C, 6.850%, 7/15/21
1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,417,856
Revenue Bonds, Public Higher Education Financing
Program, Series 2000A, 5.000%, 9/01/17
500 Virginia College Building Authority, Educational Facilities 7/08 at 101.00 AA 520,005
Revenue Refunding Bonds, Marymount University Project,
Series 1998, 5.100%, 7/01/18 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.8%
1,000 Fauquier County Industrial Development Authority, 10/12 at 102.00 AA 1,030,370
Virginia, Hospital Revenue Bonds, Fauquier Hospital,
Series 2002, 5.250%, 10/01/25 - RAAI Insured
2,000 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 2,169,980
Hospital Facilities Revenue Refunding Bonds, MediCorp
Health System Obligated Group, Series 1996,
5.250%, 6/15/16 - AMBAC Insured
500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 500,330
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 513,995
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
535 Loudoun County Industrial Development Authority, 6/05 at 102.00 AAA 571,610
Virginia, Hospital Revenue Bonds, Loudoun Hospital
Center, Series 1995, 5.800%, 6/01/26 - FSA Insured
425 Loudoun County Industrial Development Authority, 6/12 at 101.00 BBB- 438,507
Virginia, Loudoun Hospital Center Revenue Bonds,
Series 2002A, 6.000%, 6/01/22
1,000 Industrial Development Authority of the City of 1/08 at 101.00 A+ 1,010,920
Lynchburg, Virginia, Healthcare Facilities Revenue and
Refunding Bonds, Centra Health, Series 1998,
5.200%, 1/01/23
675 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 682,155
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
1,000 Industrial Development Authority of the City of Norfolk, 8/07 at 102.00 AAA 1,025,950
Virginia, Health Care Revenue Bonds, Bon Secours
Health System, Series 1997, 5.250%, 8/15/26 -
MBIA Insured
800 Industrial Development Authority of the City of Norton, 12/11 at 101.00 A 856,824
Virginia, Hospital Revenue Bonds, Norton Community
Hospital Refunding and Improvement, Series 2001,
6.000%, 12/01/22 - ACA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5%
$ 1,000 Industrial Development Authority of Arlington County, 11/11 at 102.00 AAA $ 1,031,330
Virginia, Multifamily Housing Mortgage Revenue Bonds,
Arlington View Terrace Apartments, Series 2001,
5.150%, 11/01/31 (Alternative Minimum Tax)
(Mandatory put 11/01/19)
1,000 Virginia Housing Development Authority, Rental Housing 10/10 at 100.00 AA+ 1,047,560
Bonds, Series 2000G, 5.625%, 10/01/20 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2%
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,019,500
Mortgage Bonds, Series 2001H, Subseries H-1,
5.350%, 7/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.2%
1,000 Albemarle County Industrial Development Authority, 1/12 at 100.00 N/R 1,013,120
Virginia, Residential Care Facility Revenue Bonds,
Westminster Canterbury of the Blue Ridge First
Mortgage, Series 2001, 6.200%, 1/01/31
James City County Industrial Development Authority, Virginia,
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A:
1,000 6.000%, 3/01/23 3/12 at 101.00 N/R 1,008,720
400 6.125%, 3/01/32 3/12 at 101.00 N/R 403,892
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5%
25 Industrial Development Authority of the County of 2/08 at 102.00 Ba3 20,831
Bedford, Virginia, Industrial Development Refunding
Revenue Bonds, Nekoosa Packaging Corporation,
Series 1998, 5.600%, 12/01/25 (Alternative
Minimum Tax)
20 Industrial Development Authority of the County of 12/09 at 101.00 Ba3 18,763
Bedford, Virginia, Industrial Development Refunding
Revenue Bonds, Nekoosa Packaging Corporation,
Series 1999A, 6.550%, 12/01/25 (Alternative
Minimum Tax)
220 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 184,529
Virginia, Industrial Development Revenue Refunding
Bonds, Nekoosa Packaging Corporation Project,
Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.9%
2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,089,460
Improvement Bonds, Series 2001, 5.000%, 1/15/21
3,310 Town of Leesburg, Virginia, General Obligation Public 1/11 at 101.00 AAA 3,504,396
Improvement Bonds, Series 2000, 5.125%, 1/15/21 -
FGIC Insured
1,540 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 AA+ 1,657,055
Improvement Bonds, Series 2001B, 5.250%, 1/01/20
1,000 Newport News, Virginia, General Obligation Bonds, 5/10 at 102.00 AA 1,132,470
Series 2000A, 5.625%, 5/01/16
320 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 339,686
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,300 City of Richmond, Virginia, General Obligation Public 1/10 at 101.00 AAA 1,340,144
Improvement and Refunding Bonds, Series 1999A,
5.125%, 1/15/24 - FSA Insured
2,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,548,166
Improvement Bonds, Series 2001, 5.000%, 6/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.2%
350 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 350,592
Special Assessment Bonds, Series 2003A,
6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 489,830
Revenue Bonds, Series 2003, 7.500%, 6/01/33
500 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 579,720
Highway Revenue Bonds, Series 2003AA,
5.500%, 7/01/19 - MBIA Insured
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,045,250
Virginia, Industrial Development Lease Revenue Bonds,
School Facilities Project, Series 2003B, 5.125%, 8/01/23 -
AMBAC Insured
960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,067,501
Taxes Loan Bonds, Series 1999A, 6.375%, 10/01/19
41
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ $ 518,815
Revenue Bonds, 21st Century College and Equipment
Program, Series 2002A, 5.000%, 2/01/22
430 Virginia Commonwealth Transportation Board, 5/07 at 101.00 AA+ 459,992
Transportation Revenue Refunding Bonds, Northern
Virginia Transportation District Program, Series 1997B,
5.125%, 5/15/19
2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,121,860
1997 Resolution, Series 2001A, 5.000%, 8/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.4%
1,750 Capital Region Airport Authority, Richmond, Virginia, 7/05 at 102.00 AAA 1,879,308
Airport Revenue Bonds, International Airport Projects,
Series 1995A, 5.625%, 7/01/20 - AMBAC Insured
1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,121,580
General Resolution District Revenue Refunding Bonds,
Series 1998, 5.500%, 7/01/25 - MBIA Insured
3,000 Metropolitan Washington D.C. Airports Authority, 10/11 at 101.00 AAA 3,149,880
Airport System Revenue Bonds, Series 2001A,
5.500%, 10/01/27 (Alternative Minimum Tax) -
MBIA Insured
250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 258,008
System Revenue Bonds, Series 2001B,
5.000%, 10/01/21 - MBIA Insured
1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,539,090
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998A:
25 5.000%, 8/15/05 No Opt. Call Baa3 24,708
200 5.250%, 8/15/07 No Opt. Call Baa3 193,634
200 5.500%, 8/15/28 8/08 at 102.00 Baa3 154,386
500 Richmond Metropolitan Authority, Virginia, Expressway No Opt. Call AAA 554,645
Revenue Refunding Bonds, Series 2002,
5.250%, 7/15/22 - FGIC Insured
1,225 Virginia Resources Authority, Airport Revolving Fund 2/11 at 100.00 Aa2 1,287,242
Revenue Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 1,263,138
Revenue Bonds, Series 2001B, 5.125%, 8/01/27
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.5%
610 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 685,988
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,638,735
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,635,930
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.0%
1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102.00 AAA 1,062,370
Series 2001, 5.000%, 7/15/21 - FSA Insured
1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 1,018,730
Virginia, Exempt Facility Revenue Refunding Bonds,
UAE LP Project, Series 2002, 6.500%, 10/15/17
1,725 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,799,623
Refunding Bonds, Series Z, 5.250%, 7/01/21
City of Richmond, Virginia, Public Utility Revenue Refunding
Bonds, Series 2002:
500 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 510,485
1,200 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,218,756
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.3%
2,000 Fairfax County Water Authority, Virginia, Water Revenue No Opt. Call AAA 2,173,620
Refunding Bonds, Series 1997, 5.000%, 4/01/21
2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,069,480
Refunding Bonds, Series 1999, 5.000%, 5/01/22
520 Prince William County Service Authority, Virginia, Water 7/09 at 101.00 AAA 577,730
and Sewer System Revenue Bonds, Series 1999,
5.500%, 7/01/19 - FGIC Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,680 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA $ 1,844,974
Fund Revenue Bonds, Series 2000, 5.400%, 10/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
$ 66,345 Total Long-Term Investments (cost $66,546,419) - 148.3% 69,282,061
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.1%
500 Puerto Rico Government Development Bank, Adjustable A-1 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.010%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $67,046,419) - 149.4% 69,782,061
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 914,795
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $46,696,856
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* 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.
+ 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.
43
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
Portfolio of
INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.4%
$ 1,245 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,188,390
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.9%
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,068,520
Revenue Bonds, National Wildlife Federation Project,
Series 1999, 5.375%, 9/01/29 - MBIA Insured
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 994,840
Virginia, Educational Facilities Revenue Bonds, The
Catholic Diocese of Arlington, Series 2003,
5.500%, 10/01/33 (WI, settling 12/10/03)
3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 3,110,460
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G.
Mendez University System Project, Series 2002,
5.375%, 12/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.2%
1,500 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 1,487,955
Virginia, Hospital Revenue Bonds, Martha Jefferson
Hospital, Series 2002, 5.250%, 10/01/35
1,215 Danville Industrial Development Authority, Virginia, No Opt. Call AAA 1,358,115
Hospital Revenue Bonds, Danville Regional Medical
Center, Series 1998, 5.200%, 10/01/18 -
AMBAC Insured
3,000 Fauquier County Industrial Development Authority, 10/12 at 102.00 AA 3,091,110
Virginia, Hospital Revenue Bonds, Fauquier Hospital,
Series 2002, 5.250%, 10/01/25 - RAAI Insured
800 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 800,528
Revenue Bonds, MediCorp Health System,
Series 2002B, 5.125%, 6/15/33
1,000 Henrico County Economic Development Authority, 11/12 at 100.00 A- 1,027,990
Virginia, Revenue Bonds, Bon Secours Health System
Inc., Series 2002A, 5.600%, 11/15/30
1,000 Industrial Development Authority of Loudoun County, 6/05 at 102.00 AAA 1,068,430
Virginia, Hospital Revenue Bonds, Loudoun Hospital
Center, Series 1995, 5.800%, 6/01/26 - FSA Insured
Loudoun County Industrial Development Authority,
Virginia, Loudoun Hospital Center Revenue Bonds,
Series 2002A:
250 6.000%, 6/01/22 6/12 at 101.00 BBB- 257,945
600 6.100%, 6/01/32 6/12 at 101.00 BBB- 614,466
1,355 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,369,363
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
1,200 Industrial Development Authority of the City of Norton, 12/11 at 101.00 A 1,285,236
Virginia, Hospital Revenue Bonds, Norton Community
Hospital Refunding and Improvement, Series 2001,
6.000%, 12/01/22 - ACA Insured
1,000 Industrial Development Authority of the County of 10/08 at 102.00 Aaa 1,047,150
Prince William, Virginia, Hospital Facility Refunding
Revenue Bonds, Potomac Hospital Corporation of
Prince William, Series 1998, 5.000%, 10/01/18 -
FSA Insured
3,915 Industrial Development Authority of the County of 7/12 at 100.00 AAA 4,256,662
Roanoke, Virginia, Hospital Revenue Bonds, Carilion
Health System, Series 2002A, 5.500%, 7/01/20 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.7%
7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,630,958
Mortgage Bonds, 2001 Series H, Subseries H-1,
5.350%, 7/01/31 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4%
James City County Industrial Development Authority, Virginia,
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A:
1,500 6.000%, 3/01/23 3/12 at 101.00 N/R 1,513,080
600 6.125%, 3/01/32 3/12 at 101.00 N/R 605,838
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5%
$ 40 Industrial Development Authority of the County of 2/08 at 102.00 Ba3 $ 33,330
Bedford, Virginia, Industrial Development Refunding
Revenue Bonds, Nekoosa Packaging Corporation,
Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax)
460 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 385,834
Virginia, Industrial Development Revenue Refunding
Bonds, Nekoosa Packaging Corporation Project,
Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.0%
1,750 Chesapeake, Virginia, General Obligation Public Improvement 12/11 at 100.00 AA 1,975,137
Refunding Bonds, Series 2001, 5.500%, 12/01/16
1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 AA+ 1,792,367
Improvement Bonds, Series 2001C, 4.500%, 11/01/17
540 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AA+ 576,904
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,840 Newport News, Virginia, General Obligation Bonds, 7/13 at 100.00 AA 1,946,959
Series 2002A, General Improvement and Water
Projects, 5.000%, 7/01/20
1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA 1,046,570
Series 2003B, 5.000%, 11/01/22
525 City of Portsmouth, Virginia, General Obligation Public 6/08 at 100.00 AAA 549,213
Utility Refunding Bonds, Series 2001B, 5.000%, 6/01/21 -
FGIC Insured
Powhatan County, Virginia, General Obligation Bonds,
Series 2001:
660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 680,638
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,020,970
City of Roanoke, Virginia, General Obligation Public
Improvement Bonds, Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,584,440
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,601,724
1,280 City of Roanoke, Virginia, General Obligation Public 10/12 at 101.00 AAA 1,384,845
Improvement Bonds, Series 2002B, 5.000%, 10/01/15
(Alternative Minimum Tax) - FGIC Insured
City of Salem, Virginia, General Obligation Public
Improvement Bonds, Series 2002:
1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,234,402
1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,287,744
1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,345,037
1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,407,004
1,500 City of Virginia Beach, Virginia, General Obligation 6/11 at 101.00 AA+ 1,593,045
Public Improvement Bonds, Series 2001,
5.000%, 6/01/19
1,420 City of Virginia Beach, Virginia, General Obligation 3/12 at 100.00 AA+ 1,486,882
Public Improvement Bonds, Series 2002 Refunding,
5.000%, 3/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.1%
650 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 651,099
Special Assessment Bonds, Series 2003A,
6.750%, 3/01/22
1,000 Bristol, Virginia, General Obligation Utility System 11/12 at 102.00 AAA 1,056,810
Revenue Bonds, Series 2002, 5.000%, 11/01/24 -
FSA Insured
1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 979,660
Revenue Bonds, Series 2003, 7.500%, 6/01/33
1,800 Loudoun County, Virginia, Industrial Development Authority, 3/13 at 100.00 AA 1,907,280
Public Facility Lease Revenue Refunding Bonds,
Series 2003, 5.000%, 3/01/19
700 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 811,608
Highway Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
Puerto Rico Public Buildings Authority, Guaranteed
Government Facilities Revenue Refunding Bonds,
Series 2002D:
1,500 5.250%, 7/01/27 7/12 at 100.00 A- 1,545,195
500 5.250%, 7/01/36 7/12 at 100.00 A- 513,435
1,800 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 1,886,094
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
45
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA $ 1,045,250
Virginia, Industrial Development Lease Revenue Bonds,
School Facilities Project, Series 2003B, 5.125%, 8/01/23 -
AMBAC Insured
1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,857,358
Revenue Bonds, 21st Century College and Equipment
Program, Series 2002A, 5.000%, 2/01/22
1,710 Virginia Commonwealth Transportation Board, 5/11 at 100.00 AA+ 1,743,567
Transportation Revenue Bonds, Northern Virginia
Transportation District Program, Series 2001A,
5.000%, 5/15/26
Virginia Commonwealth Transportation Board, Transportation
Revenue Bonds, U.S. Route 58 Corridor
Development Program, Series 2001B:
1,705 5.000%, 5/15/22 5/11 at 100.00 AA+ 1,764,522
1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,713,535
1,710 Virginia Public Building Authority, Public Facilities Revenue 8/08 at 100.00 AAA 1,806,803
Bonds, Series 1999A, 5.000%, 8/01/19 - MBIA Insured
2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,694,762
1997 Resolution, Series 2001B, 5.000%, 8/01/19
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2001D:
1,265 5.000%, 5/01/26 5/10 at 101.00 AA 1,284,936
3,930 5.000%, 5/01/31 5/10 at 101.00 AA 3,977,239
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.5%
2,500 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 2,806,175
General Resolution District Junior Lien Revenue
Refunding Bonds, Series 2001B, 5.000%, 7/01/09 -
FGIC Insured
1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AAA 1,017,720
System Revenue Bonds, Series 2002A, 5.125%, 10/01/26
(Alternative Minimum Tax) - FGIC Insured
Pocahontas Parkway Association, Virginia, Route 895 Connector
Toll Road Senior Lien Revenue Bonds, Series 1998A:
25 5.000%, 8/15/05 No Opt. Call Baa3 24,708
300 5.250%, 8/15/07 No Opt. Call Baa3 290,451
325 5.500%, 8/15/28 8/08 at 102.00 Baa3 250,877
1,980 Richmond Metropolitan Authority, Virginia, Expressway No Opt. Call AAA 2,196,394
Revenue and Refunding Bonds, Series 1998,
5.250%, 7/15/22 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.8%
6,250 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 6,816,375
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.7%
2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 2,037,460
Virginia, Exempt Facility Revenue Refunding Bonds,
UAE LP Project, Series 2002, 6.500%, 10/15/17
3,125 Puerto Rico Electric Power Authority, Power Revenue 7/10 at 101.00 AAA 3,281,344
Bonds, Series 2000HH, 5.250%, 7/01/29 - FSA Insured
City of Richmond, Virginia, Public Utility Revenue Refunding
Bonds, Series 2002:
1,000 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 1,020,970
1,000 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,015,630
1,110 Industrial Development Authority of Russell County, 11/08 at 101.00 AAA 1,161,981
Virginia, Pollution Control Revenue Bonds, Appalachian
Power Company Project, Series 1998H,
5.000%, 11/01/21 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.1%
3,800 Fairfax County Water Authority, Virginia, Water Revenue No Opt. Call AAA 4,129,878
Refunding Bonds, Series 1997, 5.000%, 4/01/21
1,500 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,537,020
Refunding Bonds, Series 2002, 5.000%, 4/01/27
Henry County Public Service Authority, Virginia, Water and Sewer
Revenue Refunding Bonds, Series 2001:
1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,152,900
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,444,600
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
City of Norfolk, Virginia, Water Revenue and Refunding
Bonds, Series 2001:
$ 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA $ 1,202,591
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,257,354
1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,490,528
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,558,474
2,000 Upper Occoquan Sewage Authority, Virginia, Regional No Opt. Call AAA 2,203,860
Sewerage System Revenue Bonds, Series 1995A,
5.150%, 7/01/20 - MBIA Insured
2,250 Virginia Resources Authority, Water and Sewer System 5/11 at 101.00 AA 2,292,592
Revenue Bonds, Caroline County Public Improvements
Project, Series 2001, 5.000%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
$ 121,900 Total Long-Term Investments (cost $122,196,636) - 146.3% 128,139,116
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 1,468,184
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.9)% (42,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $87,607,300
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* 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.
See accompanying notes to financial statements.
47
Statement of
ASSETS AND LIABILITIES November 30, 2003 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $220,507,927, $89,064,939,
$90,310,383 and $113,136,778, respectively) $228,582,054 $92,164,515 $93,963,216 $114,592,472
Cash -- 315,214 52,462 --
Receivables:
Interest 4,409,271 1,658,094 1,517,126 1,645,041
Investments sold 4,000,000 190,053 -- --
Other assets 24,749 7,146 3,157 963
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 237,016,074 94,335,022 95,535,961 116,238,476
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,125,425 -- -- 14,808
Payable for investments purchased 1,134,336 -- -- --
Accrued expenses:
Management fees 123,285 26,900 27,215 31,188
Other 68,463 29,162 37,816 31,059
Preferred share dividends payable 9,267 4,213 -- 5,605
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,460,776 60,275 65,031 82,660
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000
====================================================================================================================================
Net assets applicable to Common shares $155,455,298 $62,274,747 $63,470,930 $ 77,155,816
====================================================================================================================================
Common shares outstanding 10,572,917 4,160,476 4,168,600 5,357,697
====================================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common
shares outstanding) $ 14.70 $ 14.97 $ 15.23 $ 14.40
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 105,729 $ 41,605 $ 41,686 $ 53,577
Paid-in surplus 146,744,423 59,005,430 59,109,236 75,626,322
Undistributed net investment income 2,006,122 613,997 581,517 157,684
Accumulated net realized gain (loss) from investments (1,475,103) (485,861) 85,658 (137,461)
Net unrealized appreciation of investments 8,074,127 3,099,576 3,652,833 1,455,694
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $155,455,298 $62,274,747 $63,470,930 $ 77,155,816
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
48
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $185,968,498, $67,046,419
and $122,196,636, respectively) $197,610,896 $69,782,061 $128,139,116
Cash 615,110 400,650 844,628
Receivables:
Interest 3,114,354 1,060,351 1,684,764
Investments sold 60,000 -- --
Other assets 15,912 5,012 4,700
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 201,416,272 71,248,074 130,673,208
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Payable for investments purchased 998,618 499,309 998,618
Accrued expenses:
Management fees 105,336 20,166 36,912
Other 57,766 28,389 30,378
Preferred share dividends payable 4,942 3,354 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,166,662 551,218 1,065,908
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
====================================================================================================================================
Net assets applicable to Common shares $136,449,610 $46,696,856 $ 87,607,300
====================================================================================================================================
Common shares outstanding 8,820,007 3,119,428 5,691,053
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 15.47 $ 14.97 $ 15.39
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 88,200 $ 31,194 $ 56,911
Paid-in surplus 124,078,243 44,213,306 80,748,625
Undistributed net investment income 1,605,688 411,248 597,589
Accumulated net realized gain (loss) from investments (964,919) (694,534) 261,695
Net unrealized appreciation of investments 11,642,398 2,735,642 5,942,480
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $136,449,610 $46,696,856 $ 87,607,300
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
OPERATIONS Six Months Ended November 30, 2003 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 6,124,659 $ 2,373,289 $ 2,253,480 $ 2,616,639
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 749,726 304,239 307,140 372,835
Preferred shares - auction fees 99,146 40,110 40,110 48,883
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 17,158 1,159 955 499
Custodian's fees and expenses 30,095 13,905 11,807 12,383
Trustees' fees and expenses 2,746 1,110 252 1,411
Professional fees 7,761 5,215 5,333 7,411
Shareholders' reports - printing and mailing expenses 15,111 4,385 6,145 6,066
Stock exchange listing fees 7,824 58 59 448
Investor relations expense 16,192 6,227 6,184 7,678
Other expenses 12,547 5,099 9,015 2,681
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 968,333 386,521 392,014 465,309
Custodian fee credit (10,145) (2,341) (6,266) (5,205)
Expense reimbursement -- (140,418) (141,757) (183,550)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 958,188 243,762 243,991 276,554
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,166,471 2,129,527 2,009,489 2,340,085
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,012,188 74,045 113,177 262,626
Change in net unrealized appreciation (depreciation)
of investments (5,279,756) (2,270,145) (2,223,804) (2,925,903)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (4,267,568) (2,196,100) (2,110,627) (2,663,277)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (284,604) (104,600) (129,732) (160,506)
From accumulated net realized gains from investments -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (284,604) (104,600) (129,732) (160,506)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 614,299 $ (171,173) $ (230,870) $ (483,698)
====================================================================================================================================
See accompanying notes to financial statements.
50
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,147,033 $ 1,765,998 $ 3,137,787
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 640,534 227,534 417,198
Preferred shares - auction fees 79,969 30,082 52,644
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014
Shareholders' servicing agent fees and expenses 16,696 797 1,010
Custodian's fees and expenses 26,830 10,602 15,402
Trustees' fees and expenses 2,785 894 1,629
Professional fees 6,994 4,800 5,768
Shareholders' reports - printing and mailing expenses 12,568 3,590 6,437
Stock exchange listing fees 5,621 74 138
Investor relations expense 13,496 4,545 8,073
Other expenses 6,595 5,022 5,989
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 822,115 292,954 519,302
Custodian fee credit (8,031) (3,015) (5,202)
Expense reimbursement -- (105,016) (192,653)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 814,084 184,923 321,447
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,332,949 1,581,075 2,816,340
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,004,022 45,587 (31,212)
Change in net unrealized appreciation (depreciation)
of investments (5,210,738) (1,531,720) (3,667,063)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (4,206,716) (1,486,133) (3,698,275)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (215,169) (82,972) (167,522)
From accumulated net realized gains from investments -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (215,169) (82,972) (167,522)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (88,936) $ 11,970 $(1,049,457)
====================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
CHANGES IN NET ASSETS (Unaudited)
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
--------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
11/30/03 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,166,471 $ 10,723,401 $ 2,129,527 $ 4,306,567 $ 2,009,489 $ 4,032,768
Net realized gain (loss) from
investments 1,012,188 2,417,190 74,045 (444,217) 113,177 176,840
Change in net unrealized
appreciation (depreciation)
of investments (5,279,756) 8,129,891 (2,270,145) 5,349,299 (2,223,804) 6,557,094
Distributions to Preferred
Shareholders:
From net investment income (284,604) (733,384) (104,600) (321,178) (129,732) (356,207)
From accumulated net realized
gains from investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 614,299 20,537,098 (171,173) 8,890,471 (230,870) 10,410,495
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,818,316) (9,412,274) (1,921,779) (3,554,454) (1,800,756) (3,375,174)
From accumulated net realized gains
from investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,818,316) (9,412,274) (1,921,779) (3,554,454) (1,800,756) (3,375,174)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 1,664 -- 3,771 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 244,241 494,984 28,077 45,521 10,812 34,422
Preferred shares offering costs -- -- -- 31,543 (1,871) 50,355
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 244,241 494,984 29,741 77,064 12,712 84,777
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,959,776) 11,619,808 (2,063,211) 5,413,081 (2,018,914) 7,120,098
Net assets applicable to Common
shares at the beginning
of period 159,415,074 147,795,266 64,337,958 58,924,877 65,489,844 58,369,746
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $155,455,298 $159,415,074 $62,274,747 $64,337,958 $63,470,930 $65,489,844
====================================================================================================================================
Undistributed net investment
income at the end of period $ 2,006,122 $ 1,942,571 $ 613,997 $ 510,849 $ 581,517 $ 502,516
====================================================================================================================================
See accompanying notes to financial statements.
52
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
--------------------------------- --------------------------------- -------------------------------
FOR THE
PERIOD 9/25/02
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS) SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
11/30/03 THROUGH 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,340,085 $ 2,781,714 $ 4,332,949 $ 8,810,923 $ 1,581,075 $ 3,176,943
Net realized gain (loss) from
investments 262,626 (400,087) 1,004,022 1,078,214 45,587 (429,332)
Change in net unrealized
appreciation (depreciation)
of investments (2,925,903) 4,381,597 (5,210,738) 9,438,098 (1,531,720) 3,871,254
Distributions to Preferred
Shareholders:
From net investment income (160,506) (245,067) (215,169) (582,520) (82,972) (223,605)
From accumulated net realized gains
from investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (483,698) 6,518,157 (88,936) 18,744,715 11,970 6,395,260
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,105,235) (2,453,307) (4,018,149) (7,864,088) (1,440,911) (2,683,388)
From accumulated net realized
gains from investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,105,235) (2,453,307) (4,018,149) (7,864,088) (1,440,911) (2,683,388)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 76,335,300 -- -- 1,664 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 49,164 105,659 333,513 687,975 22,623 52,795
Preferred shares offering costs (4,499) (906,000) -- -- -- 28,686
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 44,665 75,534,959 333,513 687,975 24,287 81,481
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,544,268) 79,599,809 (3,773,572) 11,568,602 (1,404,654) 3,793,353
Net assets applicable to Common
shares at the beginning
of period 79,700,084 100,275 140,223,182 128,654,580 48,101,510 44,308,157
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period 77,155,816 79,700,084 136,449,610 140,223,182 46,696,856 48,101,510
====================================================================================================================================
Undistributed net investment
income at the end of period $ 157,684 $ 83,340 $ 1,605,688 $ 1,506,057 $ 411,248 $ 354,056
====================================================================================================================================
53
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
--------------------------------
SIX MONTHS ENDED YEAR ENDED
11/30/03 5/31/03
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,816,340 $ 5,532,519
Net realized gain (loss) from
investments (31,212) 562,801
Change in net unrealized appreciation
(depreciation) of investments (3,667,063) 8,983,926
Distributions to Preferred Shareholders:
From net investment income (167,522) (456,477)
From accumulated net realized gains
from investments -- (21,076)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations (1,049,457) 14,601,693
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,517,095) (4,757,183)
From accumulated net realized gains
from investments -- (145,463)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,517,095) (4,902,646)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares 2,456 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 106,063 33,189
Preferred shares offering costs -- 8,152
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 108,519 41,341
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,458,033) 9,740,388
Net assets applicable to Common
shares at the beginning of period 91,065,333 81,324,945
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $87,607,300 $91,065,333
====================================================================================================================================
Undistributed net investment
income at the end of period $ 597,589 $ 465,866
====================================================================================================================================
See accompanying notes to financial statements.
54
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Maryland Premium Income Municipal
Fund (NMY), Nuveen Maryland Dividend Advantage Municipal Fund (NFM), Nuveen
Maryland Dividend Advantage Municipal Fund 2 (NZR), Nuveen Maryland Dividend
Advantage Municipal Fund 3 (NWI), Nuveen Virginia Premium Income Municipal Fund
(NPV), Nuveen Virginia Dividend Advantage Municipal Fund (NGB) and Nuveen
Virginia Dividend Advantage Municipal Fund 2 (NNB). Common shares of Maryland
Premium Income (NMY) and Virginia Premium Income (NPV) are traded on the New
York Stock Exchange while Common shares of Maryland Dividend Advantage (NFM),
Maryland Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI),
Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) are
traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end management investment
companies.
Prior to the commencement of operations of Maryland Dividend Advantage 3 (NWI),
the Fund had no operations other than those related to organizational matters,
the initial capital contribution of $100,275 by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and the
recording of the organizational expenses ($11,500) and their reimbursement by
Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen Investments,
Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
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 have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At November 30, 2003,
Virginia Premium Income (NPV), Virginia Dividend Advantage (NGB) and Virginia
Dividend Advantage 2 (NNB), had outstanding when-issued purchase commitments of
$998,618, $499,309 and $998,618, respectively. There were no such outstanding
purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Funds.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- --------------------------------------------------------------------------------
Number of shares:
Series M -- 1,280 -- --
Series T -- -- -- 1,560
Series W 1,404 -- -- --
Series TH 1,760 -- -- --
Series F -- -- 1,280 --
- --------------------------------------------------------------------------------
Total 3,164 1,280 1,280 1,560
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- --------------------------------------------------------------------------------
Number of shares:
Series M -- -- 1,680
Series T 832 -- --
Series W -- 960 --
Series TH 1,720 -- --
Series F -- -- --
- --------------------------------------------------------------------------------
Total 2,552 960 1,680
================================================================================
Effective November 15, 2002, Maryland Dividend Advantage 3 (NWI) issued 1,560
Series T, $25,000 stated value Preferred shares.
56
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended November 30, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Maryland Dividend
Advantage 3 (NWI). Maryland Dividend Advantage 3's (NWI) share of Common share
offering costs ($160,200) was recorded as a reduction of the proceeds from the
sale of common shares.
Costs incurred by Maryland Dividend Advantage 3 (NWI) in connection with its
offering of Preferred shares ($910,499) were recorded as a reduction to paid-in
surplus.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/03 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03
- ---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 15,332 30,973 1,805 3,029 716 2,564
- ---------------------------------------------------------------------------------------------------------
15,332 30,973 1,805 3,029 716 2,564
=========================================================================================================
Preferred shares sold -- -- -- -- -- --
=========================================================================================================
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
--------------------------------- ----------------------- -----------------------
FOR THE
PERIOD 9/25/02
(COMMENCEMENT SIX MONTHS SIX MONTHS
SIX MONTHS ENDED OF OPERATIONS) ENDED YEAR ENDED ENDED YEAR ENDED
11/30/03 THROUGH 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03
- -------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 5,340,000 -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 3,414 7,283 19,648 40,954 1,366 3,523
- -------------------------------------------------------------------------------------------------------------
3,414 5,347,283 19,648 40,954 1,366 3,523
=============================================================================================================
Preferred shares sold -- 1,560 -- -- -- --
=============================================================================================================
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------------
SIX MONTHS ENDED YEAR ENDED
11/30/03 5/31/03
- --------------------------------------------------------------------------------
Common shares:
Shares sold -- --
Shares issued to shareholders
due to reinvestment of
distributions 6,641 2,299
- --------------------------------------------------------------------------------
6,641 2,299
================================================================================
Preferred shares sold -- --
================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities for the six months ended November 30, 2003, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- --------------------------------------------------------------------------------
Purchases $27,299,766 $4,946,910 $4,242,866 $9,588,854
Sales and maturities 24,503,975 4,804,700 4,532,525 9,416,418
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- --------------------------------------------------------------------------------
Purchases $23,052,424 $3,481,870 $9,298,628
Sales and maturities 22,692,458 3,098,750 9,292,290
================================================================================
58
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At November 30, 2003, the cost of investments were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- --------------------------------------------------------------------------------
Cost of investments $220,314,335 $89,053,859 $90,294,531 $113,131,022
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- --------------------------------------------------------------------------------
Cost of investments $185,770,698 $67,038,514 $122,176,326
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2003, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- ---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,165,703 $3,394,740 $3,824,183 $1,839,772
Depreciation (2,897,984) (284,084) (155,498) (378,322)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 8,267,719 $3,110,656 $3,668,685 $1,461,450
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,497,246 $3,057,227 $5,992,942
Depreciation (657,048) (313,680) (30,152)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $11,840,198 $2,743,547 $5,962,790
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2003, the Funds' last fiscal year end, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,459,589 $812,057 $791,515 $435,499
Undistributed net ordinary income * 3,514 -- -- --
Undistributed net long-term capital gains -- -- -- --
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $1,964,684 $584,303 $866,410
Undistributed net ordinary income * 16,467 -- 83,460
Undistributed net long-term capital gains -- -- 209,448
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax character of distributions paid during the fiscal year ended May 31,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2003 (NMY) (NFM) (NZR) (NWI)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,056,404 $3,859,655 $3,704,764 $2,343,187
Distributions from net ordinary income * 38,307 -- -- --
Distributions from net long-term capital gains -- -- -- --
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
2003 (NPV) (NGB) (NNB)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $8,413,226 $2,895,125 $5,200,254
Distributions from net ordinary income * -- -- 167,216
Distributions from net long-term capital gains -- -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2003, 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 carryforwards
will expire as follows:
MARYLAND MARYLAND MARYLAND MARYLAND VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NWI) (NPV) (NGB)
- ---------------------------------------------------------------------------------------------------------
Expiration year:
2004 $1,263,034 $ -- $ -- $ -- $1,579,895 $ --
2005 454,351 -- -- -- 140,749 --
2006 -- -- -- -- -- --
2007 -- -- -- -- -- --
2008 332,070 -- -- -- 250,767 --
2009 317,048 9,874 -- -- -- 186,152
2010 -- 37,159 -- -- -- 104,197
2011 -- -- 27,519 240,898 -- 32,604
- ---------------------------------------------------------------------------------------------------------
Total $2,366,503 $47,033 $27,519 $240,898 $1,971,411 $322,953
=========================================================================================================
60
The following Funds elected to defer net realized losses from investments
incurred from November 1, 2002 through May 31, 2003 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen on the first day of the current fiscal year:
MARYLAND MARYLAND VIRGINIA
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 3 ADVANTAGE
(NFM) (NWI) (NGB)
- --------------------------------------------------------------------------------
$512,871 $159,189 $417,167
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Maryland Premium Income's (NMY) and Virginia Premium Income's (NPV)
investment management agreements with the Adviser, each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Maryland Dividend Advantage's (NFM), Maryland Dividend Advantage 2's
(NZR), Maryland Dividend Advantage 3's (NWI), Virginia Dividend Advantage's
(NGB) and Virginia Dividend Advantage 2's (NNB) investment management agreements
with the Adviser, each Fund pays an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates.
For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia
Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the
Funds, as a percentage of average daily net assets (including net assets
attributable to Preferred shares), for fees and expenses in the amounts and for
the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and
Virginia Dividend Advantage (NGB) for any portion of its fees and expenses
beyond January 31, 2011.
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for
any portion of its fees and expenses beyond September 30, 2011.
For the first eight years of Maryland Dividend Advantage 3's (NWI) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
- --------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for
any portion of its fees and expenses beyond September 30, 2010.
For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
- --------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for
any portion of its fees and expenses beyond November 30, 2011.
62
6. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 30, 2003, to shareholders of
record on December 15, 2003, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- --------------------------------------------------------------------------------
Dividend per share $.0760 $.0785 $.0730 $.0655
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- --------------------------------------------------------------------------------
Dividend per share $.0760 $.0785 $.0745
================================================================================
At the same time, the following Funds declared capital gains and ordinary income
distributions as follows:
MARYLAND VIRGINIA
DIVIDEND DIVIDEND
ADVANTAGE 2 ADVANTAGE 2
(NZR) (NNB)
- --------------------------------------------------------------------------------
Capital gains distributions per share $.0187 $.0337
Ordinary income distributions per share* -- .0135
================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
63
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $15.10 $ .49 $ (.40) $(.03) $-- $ .06 $(.46) $-- $(.46)
2003 14.04 1.02 1.00 (.07) -- 1.95 (.89) -- (.89)
2002 13.83 1.03 .14 (.13) -- 1.04 (.83) -- (.83)
2001 12.83 1.03 1.01 (.25) -- 1.79 (.79) -- (.79)
2000 14.41 1.02 (1.58) (.24) -- (.80) (.78) -- (.78)
1999 14.54 1.00 (.14) (.22) -- .64 (.77) -- (.77)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 15.47 .51 (.52) (.03) -- (.04) (.46) -- (.46)
2003 14.18 1.04 1.18 (.08) -- 2.14 (.86) -- (.86)
2002 13.90 1.04 .22 (.14) -- 1.12 (.84) -- (.84)
2001(a) 14.33 .22 (.25) (.05) -- (.08) (.21) -- (.21)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 15.71 .48 (.50) (.03) -- (.05) (.43) -- (.43)
2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81)
2002(b) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46)
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 14.89 .44 (.51) (.03) -- (.10) (.39) -- (.39)
2003(c) 14.33 .52 .75 (.05) -- 1.22 (.46) -- (.46)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
================================================================================
MARYLAND PREMIUM
INCOME (NMY)
- --------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $-- $14.70 $15.3600 (7.80)% .45%
2003 -- 15.10 17.1500 15.22 14.33
2002 -- 14.04 15.7300 4.77 7.71
2001 -- 13.83 15.8500 26.24 14.18
2000 -- 12.83 13.2500 (7.22) (5.57)
1999 -- 14.41 15.1250 5.47 4.44
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- --------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 14.97 16.2400 4.02 (.16)
2003 .01 15.47 16.0800 9.98 15.55
2002 -- 14.18 15.4400 1.98 8.21
2001(a) (.14) 13.90 15.9900 8.02 (1.53)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- --------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 15.23 14.8900 (1.74) (.22)
2003 .01 15.71 15.6000 12.71 18.39
2002(b) (.15) 14.01 14.6100 .52 1.01
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- --------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) -- 14.40 13.5100 (6.72) (.56)
2003(c) (.20) 14.89 14.9000 2.53 7.31
================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
======================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) $155,455 1.26%* 6.69%* 1.24%* 6.71%* 11%
2003 159,415 1.26 7.00 1.25 7.01 16
2002 147,795 1.32 7.33 1.31 7.34 13
2001 145,201 1.31 7.58 1.31 7.58 8
2000 134,299 1.29 7.69 1.28 7.70 13
1999 150,420 1.29 6.78 1.28 6.79 16
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 62,275 1.25* 6.43* .79* 6.90* 5
2003 64,338 1.26 6.54 .79 7.01 12
2002 58,925 1.35 6.81 .82 7.34 36
2001(a) 57,740 1.17* 4.33* .75* 4.75* 10
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 63,471 1.25* 5.94* .78* 6.41* 5
2003 65,490 1.26 6.07 .80 6.53 12
2002(b) 58,370 1.22* 5.55* .79* 5.99* 21
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(d) 77,156 1.23* 5.67* .73* 6.17* 8
2003(c) 79,700 1.18* 5.01* .70* 5.50* 13
======================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
============================================================
MARYLAND PREMIUM
INCOME (NMY)
- ------------------------------------------------------------
Year Ended 5/31:
2004(d) $79,100 $25,000 $74,133
2003 79,100 25,000 75,384
2002 79,100 25,000 71,712
2001 79,100 25,000 70,891
2000 79,100 25,000 67,446
1999 79,100 25,000 72,541
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ------------------------------------------------------------
Year Ended 5/31:
2004(d) 32,000 25,000 73,652
2003 32,000 25,000 75,264
2002 32,000 25,000 71,035
2001(a) 32,000 25,000 70,109
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ------------------------------------------------------------
Year Ended 5/31:
2004(d) 32,000 25,000 74,587
2003 32,000 25,000 76,164
2002(b) 32,000 25,000 70,601
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ------------------------------------------------------------
Year Ended 5/31:
2004(d) 39,000 25,000 74,459
2003(c) 39,000 25,000 76,090
============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 23, 2001 (commencement of operations) through May
31, 2001.
(b) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(c) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
(d) For the six months ended November 30, 2003.
See accompanying notes to financial statements.
64-65
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) $15.93 $ .49 $ (.47) $(.02) $-- $ -- $(.46) $ -- $(.46)
2003 14.69 1.00 1.21 (.07) -- 2.14 (.90) -- (.90)
2002 14.59 1.04 .03 (.11) -- .96 (.86) -- (.86)
2001 13.36 1.08 1.21 (.25) -- 2.04 (.81) -- (.81)
2000 14.89 1.07 (1.52) (.24) -- (.69) (.84) -- (.84)
1999 14.96 1.05 (.08) (.22) -- .75 (.82) -- (.82)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) 15.43 .51 (.48) (.03) -- -- (.46) -- (.46)
2003 14.23 1.02 1.10 (.07) -- 2.05 (.86) -- (.86)
2002 13.87 1.02 .32 (.13) -- 1.21 (.85) -- (.85)
2001(a) 14.33 .24 (.28) (.05) -- (.09) (.21) -- (.21)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) 16.02 .50 (.66) (.03) -- (.19) (.44) -- (.44)
2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87)
2002(b) 14.33 .41 .09 (.04) -- .46 (.35) -- (.35)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===============================================================================
VIRGINIA PREMIUM
INCOME (NPV)
- -------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) $-- $15.47 $17.1200 (.46)% .06%
2003 -- 15.93 17.6700 15.27 14.99
2002 -- 14.69 16.1700 6.64 6.71
2001 -- 14.59 16.0000 18.45 15.53
2000 -- 13.36 14.2500 (6.02) (4.64)
1999 -- 14.89 16.0625 4.77 5.09
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- -------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) -- 14.97 16.5500 (1.90) .11
2003 .01 15.43 17.3500 21.45 14.92
2002 -- 14.23 15.0900 5.10 8.89
2001(a) (.16) 13.87 15.1800 2.61 (1.73)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- -------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) -- 15.39 16.4900 5.02 (1.08)
2003 -- 16.02 16.1400 14.58 18.51
2002(b) (.13) 14.31 14.9000 1.71 2.30
===============================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
- --------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) $136,450 1.22%* 6.41%* 1.21%* 6.42%* 12%
2003 140,223 1.25 6.61 1.24 6.62 17
2002 128,655 1.28 7.01 1.27 7.02 14
2001 127,145 1.23 7.51 1.21 7.53 7
2000 115,760 1.29 7.72 1.28 7.73 20
1999 128,368 1.26 6.94 1.26 6.95 8
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- --------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) 46,697 1.27* 6.39* .80* 6.86* 5
2003 48,102 1.28 6.45 .81 6.92 10
2002 44,308 1.37 6.68 .84 7.21 21
2001(a) 43,155 1.27* 4.76* .80* 5.23* 20
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- --------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004(c) 87,607 1.20* 6.04* .74* 6.50* 7
2003 91,065 1.21 6.01 .75 6.47 15
2002(b) 81,325 1.14* 5.00* .70* 5.44* 12
====================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
============================================================
VIRGINIA PREMIUM
INCOME (NPV)
- ------------------------------------------------------------
Year Ended 5/31:
2004(c) $63,800 $25,000 $78,468
2003 63,800 25,000 79,946
2002 63,800 25,000 75,413
2001 63,800 25,000 74,822
2000 63,800 25,000 70,361
1999 63,800 25,000 75,301
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- ------------------------------------------------------------
Year Ended 5/31:
2004(c) 24,000 25,000 73,643
2003 24,000 25,000 75,106
2002 24,000 25,000 71,154
2001(a) 24,000 25,000 69,953
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- ------------------------------------------------------------
Year Ended 5/31:
2004(c) 42,000 25,000 77,147
2003 42,000 25,000 79,206
2002(b) 42,000 25,000 73,408
============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(b) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
(c) For the six months ended November 30, 2003.
See accompanying notes to financial statements.
66-67 spread
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
68
Fund
INFORMATION
BOARD OF TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Shelia W. Wellington
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
- ---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six month period ended November 30, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
69
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $90 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-A-1103D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable to this filing.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Maryland Dividend Advantage Municipal Fund 2
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: February 4, 2004
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: February 4, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: February 4, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.