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 811-21153
---------------------
Nuveen Maryland Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
- ------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: May 31
------------------
Date of reporting period: November 30, 2004
------------------
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, 2004
Nuveen Investments
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
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
I am pleased to report that over the six-month period covered by this semiannual
report your Fund continued to provide you with monthly income free from federal,
state and, in some cases, local taxes, as well as an attractive total return.
For more details about the management strategy and performance of your Fund,
please see the Portfolio Manager's Comments and Performance Overview sections of
this report.
As I noted in my last letter to you, our conversations with financial advisors
and investors suggest that many of you may be wondering whether interest rates
will soon begin to rise, how high they might go, and whether that makes this a
good time to adjust your holdings of fixed-income investments. We can't answer
that question for you - no one knows what the future will bring.
"OUR MISSION CONTINUES TO BE TO ASSIST YOU AND YOUR FINANCIAL ADVISOR BY
OFFERING INVESTMENT SERVICES AND PRODUCTS THAT CAN HELP YOU TO SECURE YOUR
FINANCIAL OBJECTIVES."
From our experience, what we do know is that a well-balanced portfolio,
structured and carefully monitored with the help of a trusted investment
professional, can be an important component in achieving your long-term
financial goals. In fact, a well-diversified portfolio may actually help to
reduce your overall investment risk. That is one reason why we believe that a
municipal bond investment like your Nuveen Fund can be an important building
block in a comprehensive investment program designed to perform well in a
variety of market conditions.
As in past reports, I'd also like to direct your attention to the inside front
cover, which explains the quick and easy process to begin receiving these Fund
reports via e-mail and the internet. Thousands of Nuveen Fund shareholders
already have signed-up, and they are getting their Fund information faster and
more conveniently than ever. I urge you to consider joining them.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and 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 14, 2005
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 the key investment strategies and
semiannual performance of these Nuveen Funds. With thirteen years of investment
experience, including seven at Nuveen, Paul assumed portfolio management
responsibility for NMY and NPV in 1999; for NFM, NZR, NGB and NNB in 2001; and
for NWI in 2002.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MARYLAND AND VIRGINIA FUNDS DURING
THE SIX MONTHS ENDED NOVEMBER 30, 2004?
As the market continued to anticipate an eventual increase in interest rates,
our focus during this reporting period centered on finding bonds that we thought
had the potential to add value immediately and also perform well under a variety
of future market scenarios. This included purchasing bonds that would tend to
shorten the Funds' yield curve positioning, and thereby help to mitigate their
interest rate risk. (Interest rate risk is the risk that the value of a Fund's
portfolio will decline if market interest rates rise, since bond prices move in
the opposite direction of interest rates.) In general, our purchasing activity
in these Maryland and Virginia Funds focused on securities in the intermediate
part of the yield curve. In many cases, bonds in this part of the curve offered
yields similar to those of longer-term bonds, with less inherent interest rate
risk and, in our opinion, greater total return potential. We also believe this
yield curve positioning may help the Funds produce more consistent returns over
time as interest rates rise and fall.
Municipal issuance in Maryland over this six-month period declined substantially
from the previous six-month period. This diminished supply was easily absorbed
by market demand, which remained exceptionally firm. As a result, we found
attractive bonds scarce and this limited purchase activity within the Funds.
However, because the Maryland market has a large number of AA rated issuers at
the local government level, we were able to continue diversifying some of our
higher credit quality holdings between AAA and AA rated issuers. At the same
time, we bought some new healthcare sector issues in order to trim some of our
existing positions in A rated hospitals and add new names in both the A and BBB
credit categories.
In Virginia, municipal supply was more plentiful, due in part to heavy issuance
by the commonwealth through its various agencies and authorities. We actively
took advantage of this opportunity to selectively trim some of our BBB rated
holdings and reinvest the proceeds in higher quality AAA and AA rated bonds.
Because BBB rated bonds performed well in 2004, demand for these bonds was
strong and we were able to obtain attractive prices for the bonds we sold.
4
One of our longer-term goals is to position all of these Funds so that they
provide return variability and interest rate risk roughly comparable to the
variability and risk of the bond markets in which the Funds invest. As one
strategy to reach this goal, we attempted to reduce some of the interest rate
risk of NFM, NZR, NWI and NNB by hedging in the derivatives market. Our only
objective with these hedges was to reduce the duration of these Funds without
having a negative impact on their dividends. These hedges do not affect the
Funds' income streams or dividend-paying capabilities over the short-term.
Instead, the costs of the hedges are reflected as an addition or subtraction
from each Fund's net asset value as the value of the hedge fluctuates. Each of
the hedges had a negative value as of November 30, 2004, because interest rates
fell and bond prices rose during the periods in which the hedges were in place.
In each case, this loss in value was at least partly offset by the fact that the
Fund's portfolio, because it had longer-than- target duration, increased in
value by more as a result of these interest rate decreases than if the Fund had
maintained a portfolio with the targeted duration.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for relevant comparative indexes,
are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 11/30/04
6-MONTH 1-YEAR 5-YEAR 10-YEAR
- --------------------------------------------------------------------------------
NMY 6.33% 6.53% 8.58% 9.26%
- --------------------------------------------------------------------------------
NFM 6.01% 5.45% NA NA
- --------------------------------------------------------------------------------
NZR 6.52% 5.50% NA NA
- --------------------------------------------------------------------------------
NWI 7.12% 6.10% NA NA
- --------------------------------------------------------------------------------
NPV 6.51% 6.00% 8.65% 9.65%
- --------------------------------------------------------------------------------
NGB 7.49% 6.84% NA NA
- --------------------------------------------------------------------------------
NNB 7.47% 6.64% NA NA
- --------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index1 4.30% 4.08% 6.78% 7.16%
- --------------------------------------------------------------------------------
Lipper Other States
Municipal Debt
Funds Average2 6.58% 5.69% 8.71% 8.95%
- --------------------------------------------------------------------------------
* Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Returns do not reflect the
deduction of taxes that a shareholder may have to pay on Fund distributions or
upon the sale of Fund shares.
For additional information, see the individual Performance Overview page for
each Fund in this report.
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national
index comprising a broad range of investment-grade municipal bonds. Results
for the Lehman Brothers index do not reflect any expenses.
2 The Lipper Other States Municipal Debt Funds average is calculated using the
returns of all closed- end exchange-traded funds in this category for each
period as follows: 6 months, 44 funds; 1 year, 44 funds; 5 years, 19 funds;
and 10 years, 17 funds. Fund and Lipper returns assume reinvestment of
dividends.
5
For the six months ended November 30, 2004, the cumulative returns on net asset
value (NAV) for all seven Funds in this report outperformed the return on the
Lehman Brothers Municipal Bond Index. NWI, NGB and NNB also modestly
outperformed the average return for the Lipper Other States Municipal Debt Funds
average for this period, while NMY, NFM, NZR and NPV slightly trailed this
measure. It should be noted that the performance of the Lipper Other States
category represents the overall average of returns for Funds from 10 different
states with a wide variety of municipal market conditions. This can make direct
comparisons between Funds from different states or between these specific Nuveen
Funds and the overall peer group less meaningful.
One of the primary factors benefiting the six-month performances of all these
Funds relative to that of the unmanaged Lehman Brothers index was the Funds' use
of financial leverage. While leveraging can add volatility to a Fund's NAV and
share price, especially during periods of rising interest rates, this strategy
can also provide opportunities for additional income and total returns for
common shareholders when short-term interest rates remain relatively low and
long-term rates fall or remain relatively constant, as they did during this
reporting period.
As discussed earlier, one of our strategies over this six-month period involved
working to enhance each Fund's yield curve positioning. These efforts were
further along for NWI, NGB and NNB, and as a result they were relatively well
positioned vis-a-vis the other Funds for the rate environment encountered during
this reporting period. This played a significant role in their modest relative
outperformance. In contrast, NMY was less optimally positioned, having more
exposure relative to securities with shorter calls than the other Funds in this
report. This somewhat hindered this Fund's performance as rates generally
trended lower over the period.
All of these Funds benefited from their holdings of lower-quality bonds, which
generally outperformed higher-rated securities as the economy improved during
the period. Among the lower-rated bonds making positive contributions to the
Funds' total returns during this period were a number of issues within the
healthcare sector, especially hospital bonds. All of the Funds' returns also
were boosted by the strong performance of their holdings of bonds backed by the
1998 master tobacco settlement agreement. The price performance of these tobacco
bonds was favorably affected during this period by an improved litigation
environment and the lack of supply relative to the continued demand.
6
The Virginia Funds also benefited from the strong performance of several
holdings that previously had been under some stress, such as the Pocahontas
Parkway Association. While this credit had deteriorated after construction on
the tollway fell behind schedule and the opening was delayed, the project is now
in operation and valuations have improved dramatically. All three of the
Virginia Funds also held bonds issued by Mecklenburg County for the UAE LP
co-generation facility, which were upgraded to A3 from BBB- following the
facility's acquisition by a higher-rated electric power company. This resulted
in price appreciation that added to the Funds' total returns.
One area of the Maryland market that did not perform well during this period was
the housing sector. The sector's underperformance stemmed largely from an
increase in mortgage prepayments as interest rates remained low, which resulted
in a rise in bond calls affecting some higher-coupon holdings. As of November
30, 2004, NFM had the largest exposure to housing bonds, at 17% of total
investments, followed by NMY at 12%, NZR at 10%, and NWI at 8%.
In the Virginia Funds, their relative yield curve positioning over the course of
the entire reporting period affected their performance. NPV had a much greater
allocation to bonds with shorter durations and/or shorter maturities over most
of this period than the other two Virginia Funds. This led to the performance
differences noted in the table.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As short-term interest rates remained relatively low throughout this reporting
period, the leveraged structures of these Funds continued to support their
dividend-paying capabilities. The extent of this benefit is tied in part to the
short-term rates these Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. This strategy helped to maintain the dividends of all
these Funds throughout the reporting period.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net
7
investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has
cumulatively paid dividends in excess of its earnings, the excess constitutes
negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over
time, pay all of its net investment income as dividends to shareholders. As of
November 30, 2004, all of the Funds in this report had positive UNII balances
for both financial statement and tax purposes.
As of November 30, 2004, the Funds were trading at premiums or discounts to
their net asset values as shown in the accompanying chart.
FUND 11/30 PREM/DISC PERIOD AVG. PREM/DISC
- --------------------------------------------------------------------------------
NMY 8.63% 6.16%
- --------------------------------------------------------------------------------
NFM 1.62% 4.71%
- --------------------------------------------------------------------------------
NZR -- -1.16%
- --------------------------------------------------------------------------------
NWI -6.08% -3.82%
- --------------------------------------------------------------------------------
NPV 14.17% 6.27%
- --------------------------------------------------------------------------------
NGB 15.51% 10.53%
- --------------------------------------------------------------------------------
NNB 2.07% 2.70%
- --------------------------------------------------------------------------------
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2004?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
the end of November 2004, these seven Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA among the
Maryland Funds ranging from 68% in NFM and 69% in NMY to 79% in NWI and 80% in
NZR and, among the Virginia Funds, from 76% in NGB to 82% in NPV and 85% in NNB.
At the end of November 2004, potential call exposure during 2005 and 2006 ranged
from 1% in NNB and 2% in NZR and NWI to 4% in NFM, 6% in NGB and 9% in NPV. NMY
continued to face a higher number of potential calls (22%) over 2005 and 2006.
During this reporting period, we worked to mitigate the older Funds' call
exposure by selling bonds with shorter call dates and reinvesting the proceeds
in bonds with better call protection. The number of actual bond calls in any of
these Funds depends largely on future market interest rates.
8
Nuveen Maryland Premium Income Municipal Fund
NMY
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 44%
AA 25%
A 16%
BBB 9%
NR 2%
BB or Lower 4%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.076
Jan 0.076
Feb 0.076
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.
12/1/03 15.7
15.7
15.75
16.05
16.35
16.84
16.95
16.9
17.12
17.05
16.64
16.77
16.99
17.05
17.05
17
17.1
16.6
14.78
14.57
14.46
14.56
14.15
14.4
14.45
14.8
14.72
14.54
14.96
15
15.19
15.01
14.95
15.34
15.79
16.15
16
16.01
16.01
16
16.21
15.9
16.05
15.86
15.89
15.98
15.9
15.93
15.96
11/30/04 15.99
FUND SNAPSHOT
- ------------------------------------
Share Price $15.99
- ------------------------------------
Common Share
Net Asset Value $14.72
- ------------------------------------
Premium/(Discount) to NAV 8.63%
- ------------------------------------
Market Yield 5.70%
- ------------------------------------
Taxable-Equivalent Yield1 8.32%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $156,018
- ------------------------------------
Average Effective Maturity
on Securities (Years) 16.93
- ------------------------------------
Leverage-Adjusted Duration 8.35
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) 13.92% 6.33%
- ------------------------------------
1-Year 10.25% 6.53%
- ------------------------------------
5-Year 10.44% 8.58%
- ------------------------------------
10-Year 9.34% 9.26%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/General 17.7%
- ------------------------------------
Healthcare 15.6%
- ------------------------------------
Tax Obligation/Limited 15.0%
- ------------------------------------
Education and Civic
Organizations 14.8%
- ------------------------------------
Housing/Multifamily 11.7%
- ------------------------------------
U.S. Guaranteed 10.0%
- ------------------------------------
Utilities 8.8%
- ------------------------------------
Other 6.4%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
9
Nuveen Maryland Dividend Advantage Municipal Fund
NFM
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 44%
AA 24%
A 15%
BBB 13%
NR 3%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Jul 0.0785
Aug 0.0785
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.
12/1/03 16.4
16.67
16.34
16.25
16.78
16.75
17
16.83
17
16.8
16.54
16.63
16.75
16.83
16.95
17.03
16.92
16.85
14.7
14.53
14.44
14.23
13.95
14.43
15.62
15.05
14.37
14.41
14.4
14.68
14.78
14.86
15.69
15.73
15.36
16.01
16
15.75
15.84
15.66
15.99
15.91
16
16.1
15.94
16.14
16.16
15.63
15.33
11/30/04 15.49
FUND SNAPSHOT
- ------------------------------------
Share Price $15.06
- ------------------------------------
Common Share
Net Asset Value $14.82
- ------------------------------------
Premium/(Discount) to NAV 1.62%
- ------------------------------------
Market Yield 6.25%
- ------------------------------------
Taxable-Equivalent Yield1 9.12%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $61,714
- ------------------------------------
Average Effective Maturity
on Securities (Years) 19.50
- ------------------------------------
Leverage-Adjusted Duration 7.47
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/23/01)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) -0.61% 6.01%
- ------------------------------------
1-Year -1.59% 5.45%
- ------------------------------------
Since
Inception 5.74% 6.96%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 16.1%
- ------------------------------------
Tax Obligation/General 16.1%
- ------------------------------------
Healthcare 15.8%
- ------------------------------------
U.S. Guaranteed 14.1%
- ------------------------------------
Education and Civic
Organizations 11.5%
- ------------------------------------
Housing/Multifamily 10.1%
- ------------------------------------
Housing/Single Family 7.3%
- ------------------------------------
Other 9.0%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
10
Nuveen Maryland Dividend Advantage Municipal Fund 2
NZR
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 49%
AA 31%
A 9%
BBB 8%
NR 2%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.073
Oct 0.073
Nov 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/03 15.15
15.1
15.03
15.9
15.77
15.77
15.83
15.85
15.76
15.55
15.4
15.76
15.7
15.59
15.75
16
16
15.54
14.39
13.9
13.91
13.54
13.03
13.72
14.28
14.3
14.04
14.14
14.12
14.3
14.57
14.68
14.98
15.03
15
15.17
15.34
15.3
15.4
15.15
15.28
15.37
15.39
15.39
15.35
15.65
15.45
14.81
15.03
11/30/04 15.1
FUND SNAPSHOT
- ------------------------------------
Share Price $15.15
- ------------------------------------
Common Share
Net Asset Value $15.15
- ------------------------------------
Premium/(Discount) to NAV 0.00%
- ------------------------------------
Market Yield 5.78%
- ------------------------------------
Taxable-Equivalent Yield1 8.44%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $63,194
- ------------------------------------
Average Effective Maturity
on Securities (Years) 17.68
- ------------------------------------
Leverage-Adjusted Duration 8.00
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) 9.20% 6.52%
- ------------------------------------
1-Year 7.91% 5.50%
- ------------------------------------
Since
Inception 5.93% 7.50%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/General 26.3%
- ------------------------------------
U.S. Guaranteed 14.9%
- ------------------------------------
Tax Obligation/Limited 14.6%
- ------------------------------------
Healthcare 13.9%
- ------------------------------------
Education and Civic
Organizations 12.3%
- ------------------------------------
Housing/Multifamily 8.0%
- ------------------------------------
Other 10.0%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and distributions in December
2003 of $0.0187 per share.
11
Nuveen Maryland Dividend Advantage Municipal Fund 3
NWI
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 40%
AA 39%
A 10%
BBB 8%
NR 2%
BB or Lower 1%
Bar Chart:
2003-2004 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.
12/1/03 13.55
13.41
13.62
13.8
13.68
14.21
14.21
14.2
14.1
14.17
14.27
14.36
14.46
14.67
14.65
14.8
14.99
14.95
13.23
13.15
13.45
12.94
12.8
12.95
13.24
13.18
13.05
13.02
13.47
13.61
13.51
13.38
13.62
13.79
13.69
14.02
14.02
14.08
14.31
14.48
14.32
14.4
14.48
14.2
14.38
14.1
13.87
13.75
14.07
11/30/04 13.83
FUND SNAPSHOT
- ------------------------------------
Share Price $13.59
- ------------------------------------
Common Share
Net Asset Value $14.47
- ------------------------------------
Premium/(Discount) to NAV -6.08%
- ------------------------------------
Market Yield 5.78%
- ------------------------------------
Taxable-Equivalent Yield1 8.44%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $77,526
- ------------------------------------
Average Effective Maturity
on Securities (Years) 18.42
- ------------------------------------
Leverage-Adjusted Duration 8.13
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) 5.59% 7.12%
- ------------------------------------
1-Year 6.43% 6.10%
- ------------------------------------
Since
Inception 0.82% 5.86%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 24.8%
- ------------------------------------
Tax Obligation/General 21.5%
- ------------------------------------
U.S. Guaranteed 12.5%
- ------------------------------------
Healthcare 10.8%
- ------------------------------------
Education and Civic
Organizations 10.3%
- ------------------------------------
Housing/Multifamily 8.3%
- ------------------------------------
Other 11.8%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
12
Nuveen Virginia Premium Income Municipal Fund
NPV
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 54%
AA 28%
A 9%
BBB 4%
NR 4%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.076
Jan 0.076
Feb 0.076
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.
12/1/03 17.2
17.25
17.19
17.01
17.42
17.32
18
18.2
18.36
18.46
18.14
17.71
17.86
18.65
18
17.99
17.62
17.85
16.18
16.1
15.65
14.56
14.5
14.85
14.95
15.43
14.79
15.25
15.3
15.55
15.38
15.53
15.55
15.73
16.26
16.28
16.12
16.65
16.45
16.75
16.3
16.75
16.99
17.5
17.9
17.46
17.69
17.19
18
11/30/04 17.65
FUND SNAPSHOT
- ------------------------------------
Share Price $17.65
- ------------------------------------
Common Share
Net Asset Value $15.46
- ------------------------------------
Premium/(Discount) to NAV 14.17%
- ------------------------------------
Market Yield 5.17%
- ------------------------------------
Taxable-Equivalent Yield1 7.60%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $136,877
- ------------------------------------
Average Effective Maturity
on Securities (Years) 17.20
- ------------------------------------
Leverage-Adjusted Duration 8.28
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) 21.36% 6.51%
- ------------------------------------
1-Year 8.86% 6.00%
- ------------------------------------
5-Year 10.31% 8.65%
- ------------------------------------
10-Year 10.51% 9.65%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/Limited 21.2%
- ------------------------------------
Healthcare 15.7%
- ------------------------------------
Tax Obligation/General 13.3%
- ------------------------------------
Water and Sewer 10.9%
- ------------------------------------
Transportation 8.6%
- ------------------------------------
U.S. Guaranteed 8.0%
- ------------------------------------
Utilities 7.8%
- ------------------------------------
Education and Civic
Organizations 7.5%
- ------------------------------------
Other 7.0%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
13
Nuveen Virginia Dividend Advantage Municipal Fund
NGB
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 49%
AA 27%
A 11%
BBB 6%
NR 4%
BB or Lower 3%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Jul 0.0785
Aug 0.0785
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.
12/1/03 16.69
16.63
17.33
17.05
17.02
17.49
17.95
18.45
17.82
17.86
17.94
17.6
17.75
17.8
17.7
18
17.85
17.55
15.37
15.45
15.1
14.76
14.35
14.95
15.07
15.27
14.97
14.95
15.25
15.49
15.6
15.68
15.99
16.31
16.4
17.05
16.22
16.6
16.67
16.69
16.85
16.66
17.32
17.75
17.6
17.7
18
17.38
17.18
11/30/04 17.32
FUND SNAPSHOT
- ------------------------------------
Share Price $17.35
- ------------------------------------
Common Share
Net Asset Value $15.02
- ------------------------------------
Premium/(Discount) to NAV 15.51%
- ------------------------------------
Market Yield 5.43%
- ------------------------------------
Taxable-Equivalent Yield1 7.99%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $46,911
- ------------------------------------
Average Effective Maturity
on Securities (Years) 17.96
- ------------------------------------
Leverage-Adjusted Duration 8.19
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) 18.46% 7.49%
- ------------------------------------
1-Year 10.96% 6.84%
- ------------------------------------
Since
Inception 9.66% 7.39%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/General 19.9%
- ------------------------------------
Transportation 16.1%
- ------------------------------------
Tax Obligation/Limited 13.2%
- ------------------------------------
Healthcare 12.4%
- ------------------------------------
Education and Civic
Organizations 9.1%
- ------------------------------------
U.S. Guaranteed 8.6%
- ------------------------------------
Water and Sewer 6.4%
- ------------------------------------
Utilities 4.8%
- ------------------------------------
Other 9.5%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
14
Nuveen Virginia Dividend Advantage Municipal Fund 2
NNB
Performance
OVERVIEW As of November 30, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 52%
AA 33%
A 7%
BBB 4%
NR 3%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0745
Jul 0.0745
Aug 0.0745
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.
12/1/03 16.35
16.53
16.8
16.8
17.15
17.75
17.5
17.55
16.93
16.68
16.52
16.7
16.61
16.95
16.7
16.38
16.9
16.95
15.05
14.7
14.72
14.75
14.5
14.39
14.65
14.92
14.66
14.85
15.2
15.17
15.1
15.18
15.4
15.37
15.54
15.92
15.74
15.87
16.35
16
16.21
16.49
16.65
16.5
16.6
16.65
16.72
15.89
16.04
11/30/04 15.95
FUND SNAPSHOT
- ------------------------------------
Share Price $15.76
- ------------------------------------
Common Share
Net Asset Value $15.44
- ------------------------------------
Premium/(Discount) to NAV 2.07%
- ------------------------------------
Market Yield 5.67%
- ------------------------------------
Taxable-Equivalent Yield1 8.34%
- ------------------------------------
Net Assets Applicable to
Common Shares ($000) $88,022
- ------------------------------------
Average Effective Maturity
on Securities (Years) 18.41
- ------------------------------------
Leverage-Adjusted Duration 7.78
- ------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
- ------------------------------------
ON SHARE PRICE ON NAV
- ------------------------------------
6-Month
(Cumulative) 10.65% 7.47%
- ------------------------------------
1-Year 1.33% 6.64%
- ------------------------------------
Since
Inception 7.33% 8.42%
- ------------------------------------
SECTORS
(as a % of total investments)
- ------------------------------------
Tax Obligation/General 23.8%
- ------------------------------------
Tax Obligation/Limited 19.1%
- ------------------------------------
Healthcare 14.2%
- ------------------------------------
Water and Sewer 10.8%
- ------------------------------------
U.S. Guaranteed 8.6%
- ------------------------------------
Education and Civic
Organizations 6.5%
- ------------------------------------
Housing/Single Family 5.8%
- ------------------------------------
Utilities 5.1%
- ------------------------------------
Other 6.1%
- ------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0472 per share.
15
Shareholder
MEETING REPORT
The Shareholder Meeting was held November 17, 2004, at 8:30 AM (Pacific time) in
the Embassy Room of the Mandarin Oriental Hotel, 222 Sansome Street, San
Francisco, CA 94104-2792.
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
====================================================================================================================================
Robert P. Bremner
For 9,992,579 -- 4,071,814 -- 4,105,936 --
Withhold 71,225 -- 24,112 -- 26,156 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,063,804 -- 4,095,926 -- 4,132,092 --
====================================================================================================================================
Lawrence H. Brown
For 9,986,043 -- 4,075,150 -- 4,101,980 --
Withhold 77,761 -- 20,776 -- 30,112 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,063,804 -- 4,095,926 -- 4,132,092 --
====================================================================================================================================
Jack B. Evans
For 9,983,868 -- 4,071,814 -- 4,104,936 --
Withhold 79,936 -- 24,112 -- 27,156 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,063,804 -- 4,095,926 -- 4,132,092 --
====================================================================================================================================
William C. Hunter
For 9,991,979 -- 4,071,135 -- 4,104,336 --
Withhold 71,825 -- 24,791 -- 27,756 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,063,804 -- 4,095,926 -- 4,132,092 --
====================================================================================================================================
William J. Schneider
For -- 2,979 -- 1,179 -- 1,259
Withhold -- -- -- -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,979 -- 1,179 -- 1,260
====================================================================================================================================
Timothy R. Schwertfeger
For -- 2,979 -- 1,179 -- 1,259
Withhold -- -- -- -- -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 2,979 -- 1,179 -- 1,260
====================================================================================================================================
Judith M. Stockdale
For 9,979,841 -- 4,073,421 -- 4,109,785 --
Withhold 83,963 -- 22,505 -- 22,307 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 10,063,804 -- 4,095,926 -- 4,132,092 --
====================================================================================================================================
16
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
====================================================================================================================================
Robert P. Bremner
For 5,297,840 -- 8,048,755 -- 3,060,164 --
Withhold 22,676 -- 15,221 -- 17,151 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,320,516 -- 8,063,976 -- 3,077,315 --
====================================================================================================================================
Lawrence H. Brown
For 5,297,523 -- 8,047,396 -- 3,057,092 --
Withhold 22,993 -- 16,580 -- 20,223 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,320,516 -- 8,063,976 -- 3,077,315 --
====================================================================================================================================
Jack B. Evans
For 5,297,840 -- 8,049,077 -- 3,059,464 --
Withhold 22,676 -- 14,899 -- 17,851 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,320,516 -- 8,063,976 -- 3,077,315 --
====================================================================================================================================
William C. Hunter
For 5,299,340 -- 8,047,577 -- 3,059,464 --
Withhold 21,176 -- 16,399 -- 17,851 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,320,516 -- 8,063,976 -- 3,077,315 --
====================================================================================================================================
William J. Schneider
For -- 1,521 -- 2,216 -- 861
Withhold -- -- -- 30 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,521 -- 2,246 -- 862
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,521 -- 2,216 -- 861
Withhold -- -- -- 30 -- 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,521 -- 2,246 -- 862
====================================================================================================================================
Judith M. Stockdale
For 5,306,540 -- 8,049,077 -- 3,059,464 --
Withhold 13,976 -- 14,899 -- 17,851 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,320,516 -- 8,063,976 -- 3,077,315 --
====================================================================================================================================
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
====================================================================================================================================
Robert P. Bremner
For 5,577,505 --
Withhold 55,155 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,660 --
====================================================================================================================================
Lawrence H. Brown
For 5,576,705 --
Withhold 55,955 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,660 --
====================================================================================================================================
Jack B. Evans
For 5,577,595 --
Withhold 55,065 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,660 --
====================================================================================================================================
William C. Hunter
For 5,578,795 --
Withhold 53,865 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,660 --
====================================================================================================================================
William J. Schneider
For -- 1,524
Withhold -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,527
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,524
Withhold -- 3
- ------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,527
====================================================================================================================================
Judith M. Stockdale
For 5,578,448 --
Withhold 54,212 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,660 --
====================================================================================================================================
18
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.9% (1.3% OF TOTAL INVESTMENTS)
$ 3,240 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,994,149
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.6% (14.6% OF TOTAL INVESTMENTS)
1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 1,021,540
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,056,510
Housing Revenue Bonds, Collegiate Housing Foundation -
Salisbury State University, Series 1999A, 6.000%, 6/01/19
2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 2,303,460
Housing Revenue Bonds, Collegiate Housing Foundation -
College Park, Series 1999A, 5.750%, 6/01/24
1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,044,130
Housing Revenue Bonds, University of Maryland - 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 1,100,760
1,000 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,100,760
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Bullis School, Series 2000:
750 5.250%, 7/01/25 - FSA Insured 1/11 at 101.00 AAA 789,645
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 520,715
1,500 Maryland Health and Higher Educational Facilities Authority, 7/07 at 102.00 AA 1,622,655
Revenue Refunding Bonds, Johns Hopkins University,
Series 1997, 5.625%, 7/01/27
1,460 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,504,004
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.625%, 6/01/36
1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,253,138
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call AAA 11,412,866
Revenue Refunding Bonds, Academic Fees and Auxiliary
Facilities, Series 1993, 6.100%, 7/01/20 - MBIA Insured
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
5,645 5.000%, 4/01/15 4/13 at 100.00 AA 6,118,559
2,680 5.000%, 4/01/19 4/13 at 100.00 AA 2,845,785
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.1% (15.6% OF TOTAL INVESTMENTS)
2,550 Gaithersburg, Maryland, Hospital Facilities Refunding and No Opt. Call AAA 2,963,967
Improvement Revenue Bonds, Shady Grove Adventist
Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured
2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,140,460
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
750 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 A3 844,275
Revenue Bonds, University of Maryland Medical System,
Series 2000, 6.750%, 7/01/30
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,038,850
Revenue Bonds, Johns Hopkins Hospital, Howard County
General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 -
MBIA Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,492,815
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A 1,634,640
Revenue Bonds, University of Maryland Medical System,
Series 2002, 6.000%, 7/01/22
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 3,366,448
Revenue Bonds, Carroll County General Hospital,
Series 2002, 5.800%, 7/01/32
19
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 $ 1,407,014
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,363,295
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 3,839,938
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,036,330
Revenue Bonds, University of Maryland Medical System,
Series 2004B, 5.000%, 7/01/24 - AMBAC Insured
1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 1,780,170
Revenue Refunding Bonds, Medstar Health Issue,
Series 2004, 5.375%, 8/15/24
1,540 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 1,543,865
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,579,504
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
Prince George's County, Maryland, Revenue Refunding and Project
Bonds, Dimensions Health Corporation, Series 1994:
825 5.000%, 7/01/05 1/05 at 102.00 B3 778,140
3,080 5.375%, 7/01/14 1/05 at 102.00 B3 2,634,386
6,000 5.300%, 7/01/24 1/05 at 102.00 B3 4,640,460
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 17.4% (11.7% OF TOTAL INVESTMENTS)
1,795 Charles County, Maryland, FHA-Insured Mortgage Revenue 5/05 at 102.00 AAA 1,840,611
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 729,904
2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,071,520
2,500 Maryland Community Development Administration, Housing 1/09 at 101.00 Aa2 2,523,500
Revenue Bonds, Series 1999A, 5.350%, 7/01/41
(Alternative Minimum Tax)
880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 920,181
Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative
Minimum Tax)
1,450 Maryland Community Development Administration, FNMA 2/11 at 101.00 Aaa 1,547,034
Multifamily Development Revenue Bonds, Edgewater Village
Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative
Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/05 at 102.00 Aa2 2,058,620
Maryland, GNMA/FHA-Insured Multifamily Housing Revenue
Bonds, Series 1995A, 5.900%, 7/01/15
1,500 Montgomery County Housing Opportunities Commission, 7/06 at 102.00 Aaa 1,549,905
Maryland, Multifamily Housing Development Bonds,
Series 1996B, 5.900%, 7/01/26
3,830 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 3,876,803
Maryland, FNMA/FHA-Insured Multifamily Housing
Development Bonds, Series 1998A, 5.200%, 7/01/30
2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,083,640
Maryland, Multifamily Housing Development Bonds,
Series 2000A, 6.100%, 7/01/30
1,500 Prince George's County Housing Authority, Maryland, 12/04 at 102.00 AAA 1,532,250
GNMA Collateralized Mortgage Revenue Refunding Bonds,
Riverview Terrace Apartments, Series 1995A,
6.700%, 6/20/20
Prince George's County Housing Authority, Maryland, GNMA
Collateralized Mortgage Revenue Refunding Bonds, Overlook
Apartments, Series 1995A:
2,000 5.700%, 12/20/15 12/05 at 102.00 AAA 2,070,780
1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,725,728
1,000 Prince George's County Housing Authority, Maryland, GNMA 5/05 at 100.00 AAA 1,000,850
Collateralized Mortgage Revenue Refunding Bonds,
Foxglenn Apartments, Series 1998A, 5.450%, 11/20/14
(Alternative Minimum Tax)
540 Prince George's County Housing Authority, Maryland, GNMA 9/09 at 102.00 AAA 565,807
Collateralized Mortgage Revenue Bonds, University Landing
Apartments, Series 1999, 6.100%, 3/20/41 (Alternative
Minimum Tax)
1,000 Salisbury, Maryland, FHA-Insured Mortgage Revenue Refunding 12/04 at 102.00 AAA 1,021,010
Bonds, College Lane Apartments, Series 1995A,
6.600%, 12/01/26
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.8% (0.6% OF TOTAL INVESTMENTS)
$ 870 Prince George's County Housing Authority, Maryland, 8/07 at 102.00 AAA $ 909,977
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 1997A, 5.625%, 8/01/17 (Alternative
Minimum Tax)
70 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 73,478
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative
Minimum Tax)
330 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 318,493
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/09 at 101.00 AA 1,059,920
EMA Obligated Group, Series 1999A, 5.625%, 1/01/25 -
RAAI Insured
1,745 Maryland Economic Development Corporation, Health and 4/11 at 102.00 N/R 1,761,298
Mental Hygiene Providers Revenue Bonds, Series 1996A,
7.625%, 4/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.7% (17.3% OF TOTAL INVESTMENTS)
4,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 4,418,200
Series 2003, 5.000%, 3/01/13
2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AA+ 2,205,717
Series 2004, 5.000%, 4/01/16
Baltimore County, Maryland, Metropolitan District General
Obligation Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,596,400
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,616,270
1,000 Baltimore, Maryland, General Obligation Bonds, Consolidated No Opt. Call A+ 1,159,440
Public Improvement, 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 1,058,850
1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,053,320
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AA 3,281,280
Bonds, Series 1999, 5.250%, 7/01/18
615 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 645,553
Villages of Lake Linganore Community Development
Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured
Howard County, Maryland, Consolidated Public Improvement
Bonds, Series 2004B:
735 5.000%, 8/15/16 2/14 at 100.00 AAA 799,077
1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,760,119
1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,265,845
1,190 Maryland National Capital Park and Planning Commission, 1/14 at 100.00 AA 1,285,379
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
Montgomery County, Maryland, General Obligation Consolidated
Public Improvement Refunding Bonds, Series 2001A:
1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,940,260
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,164,000
925 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 981,101
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,078,500
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 1,976,080
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 6,184,517
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/18
460 Wicomico County, Maryland, General Obligation Public I 12/09 at 101.00 AAA 519,004
mprovement Bonds, Series 1999, 5.750%, 12/01/19 -
FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.2% (15.0% OF TOTAL INVESTMENTS)
Baltimore Board of School Commissioners, Maryland, Revenue
Bonds, City Public School System, Series 2003A:
1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ 1,617,960
1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,068,270
21
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA $ 1,882,458
Bonds, Series 2002A, 5.250%, 8/15/18
900 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 904,104
Town Center Project, Series 2004, 5.750%, 7/01/34
1,465 Maryland Community Development Administration, 6/08 at 101.00 Aaa 1,518,575
Infrastructure Financing Bonds, Series 1998B,
5.200%, 6/01/28 - MBIA Insured
4,250 Maryland Department of Transportation, County Transportation No Opt. Call AA 4,866,930
Revenue Bonds, Series 2002, 5.500%, 2/01/16
2,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 2,207,560
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
1,875 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,034,338
Bonds, Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
Maryland Department of Transportation, Certificates of
Participation, Mass Transit Administration Project, Series 2000:
875 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 930,379
925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 981,573
1,700 Maryland Stadium Authority, Lease Revenue Bonds, 6/13 at 100.00 AA+ 1,765,195
Montgomery County Conference Center Facilities,
Series 2003, 5.000%, 6/15/24
2,455 Maryland Stadium Authority, Lease Revenue Bonds, Sports 3/06 at 101.00 AAA 2,577,652
Facilities, Series 1996, 5.750%, 3/01/18 - AMBAC Insured
1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,046,120
Metrorail Garage, Series 2002, 5.000%, 6/01/21
675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 712,051
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+ 692,696
Maryland, School System Revenue Bonds, Series 2000,
5.125%, 11/01/15
1,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 A 1,069,600
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,733,250
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,283,498
5.250%, 8/01/21 - FSA Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 2,301,180
Loan Notes, Series 1999A, 6.500%, 10/01/24
Washington Suburban Sanitary District, Montgomery and Prince
George's Counties, Maryland, General Obligation Construction
Bonds, Series 2000:
1,085 5.250%, 6/01/20 6/10 at 100.00 AAA 1,173,091
1,205 5.250%, 6/01/21 6/10 at 100.00 AAA 1,302,834
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3% (2.9% OF TOTAL INVESTMENTS)
1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,183,861
System Facilities, Series 1998A, 5.250%, 7/01/17 -
FGIC Insured
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, John Hopkins Medical
Institution, Series 2004B:
355 5.000%, 7/01/13 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 390,731
380 5.000%, 7/01/14 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 418,585
2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102.00 CCC 1,456,297
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
3,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 3,308,850
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 *** - 14.8% (10.0% OF TOTAL INVESTMENTS)
$ 2,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA $ 2,765,275
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water 7/08 at 101.00 AAA 2,077,920
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,149,540
Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
1,500 Baltimore, Maryland, Project and Revenue Refunding Bonds, 7/10 at 100.00 AAA 1,693,260
Wastewater Projects, Series 2000A, 5.625%, 7/01/30
(Pre-refunded to 7/01/10) - FSA Insured
845 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 912,592
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 643,247
Refunding Bonds, Series 2002A, 5.250%, 8/15/18
(Pre-refunded to 2/15/12)
Howard County, Maryland, Consolidated Public Improvement
Refunding Bonds, Series 2003A:
1,720 5.000%, 8/15/17 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,902,698
1,000 5.000%, 8/15/22 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,106,220
145 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 162,210
Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded
to 2/15/12)
1,875 Maryland Health and Higher Educational Facilities Authority, 1/05 at 101.00 AAA 1,933,144
Revenue Bonds, Good Samaritan Hospital, Series 1993,
5.750%, 7/01/19 - AMBAC Insured
3,125 Maryland Health and Higher Educational Facilities Authority, 1/05 at 101.00 Aaa 3,319,590
Revenue Bonds, Howard County General Hospital,
Series 1993, 5.500%, 7/01/25
3,135 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,280,558
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 1,094,280
Obligation Bonds, Series 2000A, 5.500%, 10/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.1% (8.8% OF TOTAL INVESTMENTS)
6,000 Anne Arundel County, Maryland, Pollution Control Revenue 4/05 at 101.00 A2 6,167,400
Refunding Bonds, Baltimore Gas and Electric Company
Project, Series 1994, 6.000%, 4/01/24
6,500 Calvert County, Maryland, Pollution Control Revenue Refunding 1/05 at 102.00 A2 6,637,280
Bonds, Baltimore Gas and Electric Company Project,
Series 1993, 5.550%, 7/15/14
2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 2,554,625
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
5,000 Prince George's County, Maryland, Pollution Control Revenue 1/05 at 100.00 A- 5,100,350
Refunding Bonds, Potomac Electric Power Company,
Series 1993, 6.375%, 1/15/23
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 1,067,970
System Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 219,260 Total Long-Term Investments (cost $222,061,250) - 147.4% 229,999,251
=============-----------------------------------------------------------------------------------------------------------------------
23
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0% (0.6% OF TOTAL INVESTMENTS)
$ 500 Maryland Economic Development Corporation, Economic VMIG-1 $ 500,000
Development Revenue Bonds, Federation of American
Societies, Variable Rate Demand Obligations, Series 2002A,
1.690%, 7/01/30+
1,000 Puerto Rico Government Development Bank, Adjustable A-1 1,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $223,561,250) - 148.4% 231,499,251
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 3,618,789
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.7)% (79,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 156,018,040
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
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.
24
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.4% (1.6% OF TOTAL INVESTMENTS)
$ 1,615 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,492,454
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.1% (11.5% OF TOTAL INVESTMENTS)
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 488,952
1,000 5.750%, 9/01/25 3/10 at 101.00 BBB 1,038,950
500 5.800%, 9/01/30 3/10 at 101.00 BBB 516,035
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 658,893
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,800 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 1,888,074
Housing Revenue Bonds, Sheppard Pratt University Village,
Series 2001, 6.000%, 7/01/33 - ACA Insured
1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,056,420
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 Authority, 7/08 at 102.00 BBB- 1,530,870
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School, Series 2001, 6.000%, 7/01/31
625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 641,294
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 501,255
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999:
215 5.375%, 2/01/19 2/09 at 101.00 BBB 222,525
410 5.375%, 2/01/29 2/09 at 101.00 BBB 416,089
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,083,890
500 5.000%, 4/01/19 4/13 at 100.00 AA 530,930
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.5% (15.8% OF TOTAL INVESTMENTS)
2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,381,262
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 1,002,130
Revenue Bonds, Calvert Memorial Hospital, Series 1998,
5.000%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,026,300
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/28 - FSA Insured
570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 581,240
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- 1,283,263
Revenue Bonds, Johns Hopkins Hospital, Series 2001,
5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,019,770
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+ 746,408
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 2,029,360
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
25
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 $ 1,054,050
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 502,505
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 1,010,510
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 712,068
Revenue Refunding Bonds, Medstar Health Issue,
Series 2004, 5.375%, 8/15/24
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 586,468
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
700 Prince George's County, Maryland, Revenue Refunding and 1/05 at 102.00 B3 541,387
Project Bonds, Dimensions Health Corporation, Series 1994,
5.300%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.0% (10.1% OF TOTAL INVESTMENTS)
750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA 757,898
Refunding Bonds, Cross Creek Apartments Project,
Series 1998A, 5.250%, 10/20/33
2,000 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,041,320
Revenue Bonds, Series 1998A, 5.625%, 1/01/40
(Alternative Minimum Tax)
520 Maryland Community Development Administration, 5/11 at 100.00 Aa2 526,864
Multifamily Housing Insured Mortgage Loans,
Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax)
1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,021,710
Housing Revenue Bonds, Princess Anne Apartments,
Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax)
750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 758,092
Maryland, FNMA/FHA-Insured 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 2,086,240
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/11 at 100.00 Aaa 2,049,520
Maryland, Multifamily Housing Development Bonds,
Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.8% (7.3% OF TOTAL INVESTMENTS)
195 Maryland Community Development Administration, Residential 9/09 at 100.00 Aa2 203,272
Revenue Bonds, Series 1999E, 5.700%, 9/01/17
2,365 Maryland Community Development Administration, Residential 9/09 at 100.00 Aa2 2,444,559
Revenue Bonds, Series 2000G, 5.950%, 9/01/29
(Alternative Minimum Tax)
1,125 Maryland Community Development Administration, 9/10 at 100.00 Aa2 1,145,115
Residential Revenue Bonds, Series 2000H, 5.800%, 9/01/32
(Alternative Minimum Tax)
415 Maryland Community Development Administration, Single 10/10 at 100.00 Aa2 432,003
Family Program Bonds, First Series 2001, 5.000%, 4/01/17
595 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 601,997
Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative
Minimum Tax)
1,000 Maryland Community Development Administration, Residential 3/11 at 100.00 Aa2 1,026,770
Revenue Bonds, Series 2001F, 5.600%, 9/01/28
(Alternative Minimum Tax)
795 Prince George's County Housing Authority, Maryland, 8/07 at 102.00 AAA 816,664
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/30
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,000 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,018,950
Recovery Revenue Bonds, Baltimore RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 809,430
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001A, 6.750%, 4/01/23
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.3% (15.7% OF TOTAL INVESTMENTS)
Anne Arundel County, Maryland, General Obligation Bonds,
Various Purpose, Series 2001:
$ 580 4.800%, 2/15/18 2/11 at 101.00 AA+ $ 607,016
500 5.000%, 2/15/28 2/11 at 101.00 AA+ 511,620
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,104,550
Series 2003, 5.000%, 3/01/13
3,500 Baltimore County, Maryland, Metropolitan District General 6/11 at 101.00 AAA 3,598,840
Obligation Bonds, 67th Issue, 5.000%, 6/01/27
1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,053,320
Facilities Bonds, Series 2002, 5.000%, 11/01/22
1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,389,798
Bonds, Series 2001A, 4.750%, 2/15/21
1,000 Maryland National Capital Park and Planning Commission, 1/14 at 100.00 AA 1,080,150
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
1,000 Montgomery County, Maryland, General Obligation No Opt. Call AAA 1,123,740
Consolidated Public Improvement Refunding Bonds,
Series 2002A, 5.250%, 11/01/11
430 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 456,080
Series 2000A, 6.000%, 6/01/20 - ACA Insured
740 Ocean City, Maryland, General Obligation Bonds, 3/11 at 101.00 AAA 773,500
Series 2001, 4.875%, 3/01/19 - FGIC Insured
1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,617,750
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 1,077,240
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.0% (16.1% OF TOTAL INVESTMENTS)
745 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 749,872
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
500 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 534,135
Bonds, City Public School System, Series 2003A, 5.000%, 5/01/18
350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 351,596
Town Center Project, Series 2004, 5.750%, 7/01/34
1,500 Maryland Department of Transportation, County Transportation No Opt. Call AA 1,717,740
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,103,780
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,524,397
Revenue Bonds, Department of Transportation Headquarters
Building, Series 2002, 5.375%, 6/01/19
370 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 405,113
Bonds, Montgomery County Town Square Parking Garage,
Series 2002A, 5.000%, 9/15/13
740 Prince George's County, Maryland, Lease Revenue Bonds, 6/13 at 100.00 AAA 808,465
Upper Marlboro Justice Center, Series 2003A,
5.000%, 6/30/14 - MBIA Insured
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 808,850
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,477,566
Taxes Loan Notes, Series 1999A, 6.375%, 10/01/19
Washington Suburban Sanitary District, Montgomery and Prince
George's Counties, Maryland, General Obligation Construction
Bonds, Series 2001:
895 5.000%, 6/01/22 6/11 at 100.00 AAA 930,988
935 5.000%, 6/01/23 6/11 at 100.00 AAA 969,371
985 5.000%, 6/01/24 6/11 at 100.00 AAA 1,018,392
1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,067,126
1,290 Washington Suburban Sanitary District, Montgomery and Prince 6/11 at 100.00 AAA 1,330,377
George's Counties, Maryland, Water Supply Bonds, Series 2001,
4.750%, 6/01/20
27
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.4% (2.3% OF TOTAL INVESTMENTS)
$ 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 AAA $ 663,897
Parking Facilities Revenue Bonds, Johns Hopkins Hospital,
Series 2001, 5.000%, 7/01/27 - AMBAC Insured
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, John Hopkins Medical
Institution, Series 2004B:
150 5.000%, 7/01/13 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 165,098
135 5.000%, 7/01/14 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 148,708
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,102,950
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 20.9% (14.1% OF TOTAL INVESTMENTS)
500 Anne Arundel County, Maryland, Special Obligation Bonds, 7/09 at 102.00 AAA 597,050
Arundel Mills Project, Series 1999, 7.100%, 7/01/29
(Pre-refunded to 7/01/09)
1,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 1,659,165
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water 7/08 at 101.00 AAA 1,054,544
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured
2,115 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,284,179
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,220 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,325,140
Bonds, Series 2001A, 4.750%, 2/15/20 (Pre-refunded
to 2/15/09)
500 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 553,110
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
950 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,120,920
Transportation Facilities Projects, First Series 1978,
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 2,485,518
1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,833,433
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.6% (3.1% OF TOTAL INVESTMENTS)
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 1,021,850
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- 1,823,040
Refunding Bonds, Series 1995Z, 5.250%, 7/01/21
- ------------------------------------------------------------------------------------------------------------------------------------
$ 87,450 Total Long-Term Investments (cost $88,731,924) - 148.0% 91,313,730
=============-----------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 400 Puerto Rico Government Development Bank, Adjustable Refunding Bonds, A-1 $ 400,000
Variable Rate Demand Obligations, Series 1985, 1.580%, 12/01/15 -
MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 400 Total Short-Term Investments (cost $400,000) 400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $89,131,924) - 148.6% 91,713,730
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 2,000,333
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.9)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 61,714,063
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanley dated August 4, 2004, to pay semi-annually
the notional amount multiplied by 5.660% (annualized) and receive
quarterly the notional amount multiplied by the three-month USD-LIBOR
(United States Dollar - London Inter-Bank Offered Rates). $1,100,000 2/16/05 2/16/35 $(38,215)
Agreement with Morgan Stanley dated August 5, 2004, to pay quarterly
the notional amount multiplied by 4.337% (annualized) and receive
quarterly the notional amount multiplied by the one-week BMA
(Bond Market Association) Municipal Swap Index for the quarter. 600,000 12/09/04 12/09/24 (8,468)
Agreement with Morgan Stanley dated August 10, 2004, to pay
semi-annually the notional amount multiplied by 5.489% (annualized)
and receive quarterly the notional amount multiplied by the
three-month USD-LIBOR (United States Dollar - London Inter-Bank
Offered Rates). 700,000 1/14/05 1/14/35 (8,303)
- ------------------------------------------------------------------------------------------------------------------------------------
$(54,986)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* 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.
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.
29
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 810 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 748,537
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
800 Virgin Islands Tobacco Settlement Financing Corporation, 5/11 at 100.00 Baa3 697,408
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.9% (12.0% OF TOTAL INVESTMENTS)
1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,144,891
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 658,893
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,044,130
Housing Revenue Bonds, University of Maryland -
Baltimore, Series 2003A, 5.625%, 10/01/23
250 Maryland Health and Higher Educational Facilities 7/08 at 102.00 BBB- 255,145
Authority, Educational Facilities Leasehold Mortgage
Revenue Bonds, McLean School, Series 2001,
6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities Authority, 1/11 at 101.00 AAA 432,193
Revenue Bonds, Bullis School, Series 2000,
5.250%, 7/01/30 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 AA 1,087,970
Revenue Refunding Bonds, Johns Hopkins University,
Series 1998, 5.125%, 7/01/12
1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,282,588
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 501,255
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
500 Morgan State University, Maryland, Student Tuition and 7/12 at 100.00 AAA 521,100
Fee Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2001, 4.900%, 7/01/21 - FGIC Insured
500 Morgan State University, Maryland, Student Tuition and 7/13 at 100.00 AAA 532,460
Fee Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/20 - FGIC Insured
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2001B:
1,580 4.375%, 4/01/17 4/11 at 100.00 AA 1,602,626
1,140 4.500%, 4/01/19 4/11 at 100.00 AA 1,155,310
1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 1,061,860
Bonds, Series 2003A, 5.000%, 4/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 20.1% (13.5% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,019,840
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,529,655
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+ 746,408
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 2,029,360
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 1,054,050
Revenue Bonds, Carroll County General Hospital,
Series 2002, 6.000%, 7/01/26
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 502,505
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 $ 1,010,510
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 712,068
Revenue Refunding Bonds, Medstar Health Issue,
Series 2004, 5.375%, 8/15/24
525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 526,318
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 802,699
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
2,160 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA- 2,227,241
Revenue Bonds, Trinity Healthcare Group, Series 2001,
5.125%, 12/01/22
Prince George's County, Maryland, Revenue Refunding and Project
Bonds, Dimensions Health Corporation, Series 1994:
100 5.375%, 7/01/14 1/05 at 102.00 B3 85,532
600 5.300%, 7/01/24 1/05 at 102.00 B3 464,046
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.8% (8.0% OF TOTAL INVESTMENTS)
55 Maryland Community Development Administration, 5/11 at 100.00 Aa2 55,547
Multifamily Housing Insured Mortgage Loans,
Series 2001A, 5.100%, 5/15/28
2,595 Maryland Community Development Administration, 5/11 at 100.00 Aa2 2,629,254
Multifamily Housing Insured Mortgage Loans, Series 2001B,
5.350%, 5/15/32 (Alternative Minimum Tax)
1,110 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,134,098
Multifamily Housing Revenue Bonds, Princess Anne
Apartments, Series 2001D, 5.450%, 12/15/33
(Alternative Minimum Tax)
3,145 Maryland Community Development Administration, 12/11 at 100.00 Aaa 3,213,278
Multifamily Development Revenue Bonds, Waters
Tower Senior Apartments, Series 2001F,
5.450%, 12/15/33 (Alternative Minimum Tax)
435 Maryland Community Development Administration, 5/12 at 100.00 Aa2 455,149
Multifamily Housing Insured Mortgage Revenue Bonds,
Series 2002A, 5.300%, 5/15/22
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.3% (1.6% OF TOTAL INVESTMENTS)
500 Maryland Community Development Administration, 3/07 at 101.50 Aa2 516,365
Residential Revenue Bonds, Series 1997B, 5.875%, 9/01/25
(Alternative Minimum Tax)
945 Maryland Community Development Administration, 9/10 at 100.00 Aa2 956,246
Residential Revenue Bonds, Series 2001H, 5.350%, 9/01/32
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,150 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,171,793
Recovery Revenue Bonds, Baltimore RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.3% (0.3% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001A:
31 6.750%, 4/01/20 4/09 at 100.00 N/R 25,072
25 6.750%, 4/01/23 4/11 at 101.00 N/R 20,236
5 Maryland Health and Higher Educational Facilities Authority, No Opt. Call N/R 4,129
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001B, 6.400%, 4/01/23 (Mandatory put 4/01/07)
Prince George's County, Maryland, Revenue Bonds, Collington
Episcopal Life Care Community Inc., Series 1994A:
25 5.625%, 4/01/09 4/06 at 100.00 N/R 20,322
175 6.000%, 4/01/13 4/05 at 101.00 N/R 141,423
10 Prince George's County, Maryland, Revenue Bonds, No Opt. Call N/R 8,489
Collington Episcopal Life Care Community Inc.,
Series 1994B, 5.250%, 4/01/16 (Optional put 4/01/06)
31
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.0% (26.3% OF TOTAL INVESTMENTS)
$ 1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ $ 1,104,550
Series 2003, 5.000%, 3/01/13
Cecil County, Maryland, County Commissioners General
Obligation Consolidated Public Improvement Bonds,
Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,006,268
1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,045,979
1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,064,410
Facilities Bonds, Series 2002, 5.000%, 11/01/20
3,000 Frederick County, Maryland, General Obligation Public Facilities 12/10 at 101.00 AA 3,247,140
Bonds, Series 2000, 5.200%, 12/01/19
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 531,150
Improvement Bonds, Series 2001, 4.750%, 12/01/19
1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,087,180
Bonds, Series 2004B, 5.000%, 8/15/16
Maryland, General Obligation Bonds, State and Local Facilities
Loan, First Series 2001:
2,445 5.500%, 3/01/11 No Opt. Call AAA 2,765,564
1,500 5.500%, 3/01/12 No Opt. Call AAA 1,707,600
4,730 Montgomery County, Maryland, General Obligation 10/11 at 101.00 AAA 5,117,860
Consolidated Public Improvement Refunding Bonds,
Series 2001A, 5.250%, 10/01/18
1,000 Montgomery County, Maryland, General Obligation No Opt. Call AAA 1,123,740
Consolidated Public Improvement Refunding Bonds,
Series 2002A, 5.250%, 11/01/11
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 1,078,500
2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,030,654
770 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 797,250
Bonds, Series 2001, 5.000%, 7/01/24 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.7% (14.6% OF TOTAL INVESTMENTS)
750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 764,025
Consolidated Water and Sewer, Series 1999,
4.500%, 8/01/19
745 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 749,872
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+ 1,658,621
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,736,692
530 Baltimore Board of School Commissioners, Maryland, 5/13 at 100.00 AA+ 575,644
Revenue Bonds, City Public School System, Series 2003A,
5.000%, 5/01/15
350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 351,596
Town Center Project, Series 2004, 5.750%, 7/01/34
1,000 Maryland Department of Transportation, County No Opt. Call AA 1,145,160
Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,103,780
Transportation Revenue Bonds, Series 2004,
5.000%, 5/01/13
1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,524,397
Revenue Bonds, 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 1,054,890
West Germantown Development District, Senior
Series 2002A, 5.500%, 7/01/27 - RAAI Insured
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 808,850
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,100 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA $ 1,156,496
Revenue Bonds, Series 1997A, 5.000%, 7/01/21 -
AMBAC Insured
1,000 Washington Suburban Sanitary District, Montgomery and 6/08 at 102.00 AAA 1,077,060
Prince George's Counties, Maryland, Water Supply Bonds,
Series 1998, 5.000%, 6/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.9% (3.3% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority, Parking
Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 663,897
1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 1,012,710
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, John Hopkins Medical
Institution, Series 2004B:
155 5.000%, 7/01/13 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 170,601
135 5.000%, 7/01/14 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 148,708
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,102,950
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 22.2% (14.9% OF TOTAL INVESTMENTS)
750 Anne Arundel County, Maryland, Special Obligation Bonds, 7/09 at 102.00 AAA 895,575
Arundel Mills Project, Series 1999, 7.100%, 7/01/29
(Pre-refunded to 7/01/09)
1,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 1,659,165
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,143,530
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
750 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 829,665
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,391,494
Revenue Bonds, Helix Health Issue, Series 1997,
5.000%, 7/01/17 - AMBAC Insured
1,295 Maryland Transportation Authority, Revenue Refunding No Opt. Call AAA 1,527,996
Bonds, Transportation Facilities Projects, First Series
1978, 6.800%, 7/01/16
1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 1,363,972
Bonds, Series 2001, 5.000%, 7/01/24 (Pre-refunded
to 7/01/11) - FSA Insured
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,313,960
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
800 Puerto Rico Public Finance Corporation, Commonwealth 8/11 at 100.00 AAA 883,052
Appropriation Bonds, Series 2001A, 5.000%, 8/01/21
(Pre-refunded to 8/01/11) - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3% (2.2% OF TOTAL INVESTMENTS)
1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 1,037,950
5.250%, 10/01/34 - MBIA Insured
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 1,021,850
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 88,421 Total Long-Term Investments (cost $90,240,435) - 147.7% 93,370,002
=============-----------------------------------------------------------------------------------------------------------------------
33
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9% (0.6% OF TOTAL INVESTMENTS)
$ 300 Maryland Economic Development Corporation, Revenue Bonds, A-1+ $ 300,000
Pharmacopeia Inc., Variable Rate Demand Obligations,
Series 2004A, 1.680%, 7/01/34 - AMBAC Insured+
250 Maryland Economic Development Corporation, Economic VMIG-1 250,000
Development Revenue Bonds, Federation of American
Societies, Variable Rate Demand Obligations,
Series 2002A, 1.690%, 7/01/30+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 550 Total Short-Term Investments (cost $550,000) 550,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $90,790,435) - 148.6% 93,920,002
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,274,375
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.6)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 63,194,377
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanley dated August 4, 2004, to pay semi-annually the
notional amount multiplied by 5.660% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $1,000,000 2/16/05 2/16/35 $(34,741)
Agreement with Morgan Stanley dated August 5, 2004, to pay quarterly the
notional amount multiplied by 4.337% (annualized) and receive quarterly the
notional amount multiplied by the one-week BMA (Bond Market Association)
Municipal Swap Index for the quarter. 500,000 12/09/04 12/09/24 (7,057)
Agreement with Morgan Stanley dated August 10, 2004, to pay semi-annually
the notional amount multiplied by 5.489% (annualized) and receive quarterly
the notional amount multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). 700,000 1/14/05 1/14/35 (8,302)
- ------------------------------------------------------------------------------------------------------------------------------------
$(50,100)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* 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.
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.
34
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.4% (2.3% OF TOTAL INVESTMENTS)
$ 2,820 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,606,018
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.3% (10.3% OF TOTAL INVESTMENTS)
225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 234,182
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 704,863
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
130 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 136,361
Housing Revenue Bonds, Sheppard Pratt University Village,
Series 2001, 6.000%, 7/01/33 - ACA Insured
1,250 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,305,163
Housing Revenue Bonds, University of Maryland -
Baltimore, Series 2003A, 5.625%, 10/01/23
1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 AA 1,013,820
Authority, Revenue Bonds, Johns Hopkins University,
Series 2002A, 5.000%, 7/01/32
625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 626,569
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
1,500 Morgan State University, Maryland, Student Tuition and 7/13 at 100.00 AAA 1,532,490
Fee Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/32 - FGIC Insured
985 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA 997,904
Bonds, Series 2001B, 4.625%, 4/01/21
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2002A:
1,000 5.000%, 4/01/09 No Opt. Call AA 1,090,270
2,000 5.125%, 4/01/22 4/12 at 100.00 AA 2,102,500
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,083,890
1,000 5.000%, 4/01/19 4/13 at 100.00 AA 1,061,860
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.1% (10.8% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,019,840
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,026,610
Revenue Bonds, Johns Hopkins Hospital, Series 2001,
5.000%, 5/15/21
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 662,851
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 995,210
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,294,788
Revenue Bonds, Carroll County General Hospital,
Series 2002, 5.800%, 7/01/32
700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 703,507
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,909,317
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 804,659
Revenue Refunding Bonds, Adventist Healthcare,
Series 2003A, 5.750%, 1/01/25
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,010,510
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
35
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB $ 915,516
Revenue Refunding Bonds, Medstar Health Issue,
Series 2004, 5.375%, 8/15/24
725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 726,820
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 802,699
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
800 Prince George's County, Maryland, Revenue Refunding and 1/05 at 102.00 B3 618,728
Project Bonds, Dimensions Health Corporation, Series 1994,
5.300%, 7/01/24
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.3% (8.3% OF TOTAL INVESTMENTS)
1,000 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 980,050
Revenue Bonds, Series 2002B, 4.950%, 7/01/32
(Alternative Minimum Tax)
Montgomery County Housing Opportunities Commission,
Maryland, Multifamily Housing Development Bonds,
Series 2002B:
515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 515,010
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,007,860
4,860 Prince George's County Housing Authority, Maryland, 11/12 at 100.00 AAA 5,070,292
GNMA Collateralized Mortgage Revenue Bonds, Fairview
and Hillside Projects, Series 2002A, 4.700%, 11/20/22
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,018,950
Recovery Revenue Bonds, Baltimore RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.4% (0.2% OF TOTAL INVESTMENTS)
280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 226,640
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001A, 6.750%, 4/01/23
Prince George's County, Maryland, Revenue Bonds, Collington
Episcopal Life Care Community Inc., Series 1994A:
45 5.625%, 4/01/09 4/06 at 100.00 N/R 36,580
10 6.000%, 4/01/13 4/05 at 101.00 N/R 8,081
23 Prince George's County, Maryland, Revenue Bonds, Collington No Opt. Call N/R 19,524
Episcopal Life Care Community Inc., Series 1994B,
5.250%, 4/01/16 (Optional put 4/01/06)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 30.7% (20.7% OF TOTAL INVESTMENTS)
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,024,620
Refunding Bonds, Series 2002, 4.375%, 4/01/17
10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AA+ 10,625
Consolidated Improvements, Series 1999, 5.000%, 5/15/19
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,104,550
Series 2003, 5.000%, 3/01/13
1,000 Calvert County, Maryland, General Obligation Public 1/12 at 101.00 AA 1,042,200
Improvement Bonds, Series 2002, 4.500%, 1/01/16
1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,308,623
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 1,947,870
2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,154,760
2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,633,300
100 Frederick County, Maryland, General Obligation Public 7/09 at 101.00 AA 109,474
Facilities Bonds, Series 1999, 5.250%, 7/01/17
245 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 269,015
Villages of Lake Linganore Community Development
Authority, Series 2001A, 5.600%, 7/01/20 - RAAI Insured
1,000 Maryland National Capital Park and Planning Commission, 1/14 at 100.00 AA 1,080,150
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
2,000 Maryland, General Obligation Bonds, State and Local No Opt. Call AAA 2,214,520
Facilities Loan, Series 2002B, 5.250%, 2/01/10
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Montgomery County, Maryland, General Obligation 2/12 at 101.00 AAA $ 2,126,320
Consolidated Public Improvement Bonds, Series 2002A,
5.000%, 2/01/20
1,000 Montgomery County, Maryland, General Obligation No Opt. Call AAA 1,123,740
Consolidated Public Improvement Refunding Bonds,
Series 2002A, 5.250%, 11/01/11
3,500 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 3,478,685
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 1,077,240
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
1,000 St. Mary's County, Maryland, General Obligation Hospital No Opt. Call AA- 1,105,950
Bonds, Series 2002, 5.000%, 10/01/12
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 36.9% (24.8% OF TOTAL INVESTMENTS)
530 Baltimore, Maryland, Convention Center Revenue Refunding 9/08 at 102.00 AAA 561,143
Bonds, Series 1998, 5.000%, 9/01/19 - MBIA Insured
1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,086,120
Bonds, City Public School System, Series 2003A,
5.000%, 5/01/15
450 Hyattsville, Maryland, Special Obligation Bonds, 7/14 at 102.00 N/R 452,052
University Town Center Project, Series 2004,
5.750%, 7/01/34
5,000 Maryland Department of Transportation, County Transportation No Opt. Call AA 5,725,800
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,103,780
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
2,200 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,242,394
Bonds, Department of Transportation Headquarters Building,
Series 2002, 4.750%, 6/01/22
450 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 492,705
Bonds, Montgomery County Town Square Parking Garage,
Series 2002A, 5.000%, 9/15/13
2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,211,859
Bonds, Montgomery County Wayne Avenue Parking Project,
Series 2002A, 5.250%, 9/15/16
Maryland Stadium Authority, Lease Revenue Bonds,
Montgomery County Conference Center Facilities, Series 2003:
1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ 1,540,316
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,687,975
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 808,850
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
3,500 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 3,571,295
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- 1,063,560
1,205 5.250%, 7/01/20 7/12 at 100.00 A- 1,271,203
1,275 5.250%, 7/01/21 7/12 at 100.00 A- 1,338,342
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,086,710
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 245,878
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
25 Washington Suburban Sanitary District, Maryland, General 6/11 at 101.00 AAA 26,679
Obligation Construction Bonds, Second Series 2001,
5.000%, 6/01/17
1,000 Washington Suburban Sanitary District, Montgomery and 6/08 at 102.00 AAA 1,077,060
Prince George's Counties, Maryland, Water Supply Bonds,
Series 1998, 5.000%, 6/01/15
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.9% (1.3% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, John Hopkins Medical
Institution, Series 2004B:
190 5.000%, 7/01/13 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 209,124
175 5.000%, 7/01/14 (WI, settling 12/01/04) - AMBAC Insured No Opt. Call AAA 192,770
37
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA $ 1,102,950
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 18.5% (12.5% OF TOTAL INVESTMENTS)
1,000 Anne Arundel County, Maryland, Special Obligation Bonds, 7/09 at 102.00 AAA 1,194,100
Arundel Mills Project, Series 1999, 7.100%, 7/01/29
(Pre-refunded to 7/01/09)
2,115 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 2,374,828
Public Improvement Bonds, Series 2002, 5.250%, 8/01/17
(Pre-refunded to 8/01/12)
1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,314,278
Bonds, Series 2001A, 4.750%, 2/15/19 (Pre-refunded
to 2/15/09)
1,215 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,344,057
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
50 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 55,218
Revenue Bonds, Helix Health Issue, Series 1997,
5.000%, 7/01/17 - AMBAC Insured
765 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 902,639
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
880 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 982,344
Bonds, Series 2001, 5.125%, 7/01/30 (Pre-refunded
to 7/01/11) - FSA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,392,450
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
700 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+*** 788,431
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1% (4.7% OF TOTAL INVESTMENTS)
1,250 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 1,277,313
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 4,194,332
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.4% (2.3% OF TOTAL INVESTMENTS)
2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,624,120
Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
$ 108,593 Total Long-Term Investments (cost $112,500,236) - 147.3% 114,224,249
=============-----------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.3% (0.9% OF TOTAL INVESTMENTS)
$ 1,000 Puerto Rico Government Development Bank, Adjustable A-1 $ 1,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $113,500,236) - 148.6% 115,224,249
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 1,301,749
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (39,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 77,525,998
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanley dated August 4, 2004, to pay semi-annually the
notional amount multiplied by 5.660% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $2,600,000 2/16/05 2/16/35 $ (90,327)
Agreement with Morgan Stanley dated August 5, 2004, to pay quarterly the
notional amount multiplied by 4.337% (annualized) and receive quarterly the
notional amount multiplied by the one-week BMA (Bond Market Association)
Municipal Swap Index for the quarter. 1,400,000 12/09/04 12/09/24 (19,759)
Agreement with Morgan Stanley dated August 10, 2004, to pay semi-annually
the notional amount multiplied by 5.489% (annualized) and receive quarterly
the notional amount multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). 1,800,000 1/14/05 1/14/35 (21,349)
- ------------------------------------------------------------------------------------------------------------------------------------
$(131,435)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* 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.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
39
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.1% (0.8% OF TOTAL INVESTMENTS)
$ 1,615 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,492,454
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.0% (7.5% OF TOTAL INVESTMENTS)
3,500 Alexandria Industrial Development Authority, Virginia, 10/10 at 101.00 AAA 3,916,185
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 469,685
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,390,545
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,016,250
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 527,845
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
500 Rockbridge County Industrial Development Authority, 7/11 at 100.00 B2 466,035
Virginia, Horse Center Revenue and Refunding Bonds,
Series 2001C, 6.850%, 7/15/21
2,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 2,203,940
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,165,516
Revenue Bonds, Public Higher Education Financing Program,
Series 2001A, 5.000%, 9/01/26
1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+ 1,097,720
Revenue Bonds, Hampton University, Series 2000,
6.000%, 4/01/20
1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,756,562
Series 2004A, 5.000%, 5/01/17 - AMBAC Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 22.9% (15.7% OF TOTAL INVESTMENTS)
2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 2,031,300
Virginia, Hospital Revenue Bonds, Martha Jefferson
Hospital, Series 2002, 5.250%, 10/01/35
2,000 Danville Industrial Development Authority, Virginia, Hospital No Opt. Call AAA 2,197,540
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+ 5,125,771
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 1,209,672
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,198,620
Hospital Revenue Bonds, Memorial Regional Medical
Center Project, Series 1995, 6.375%, 8/15/18 -
MBIA Insured
4,650 Hanover County Industrial Development Authority, Virginia, 8/05 at 102.00 AAA 4,826,049
Hospital Revenue Bonds, Bon Secours Health System
Projects, Series 1995, 5.500%, 8/15/25 - MBIA Insured
1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,557,555
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,500 Henrico County Industrial Development Authority, Virginia, No Opt. Call AAA 1,822,755
Healthcare Revenue Bonds, Bon Secours Health System
Inc., Series 1996, 6.250%, 8/15/20 - MBIA Insured
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
375 6.000%, 6/01/22 6/12 at 101.00 BBB 409,537
800 6.100%, 6/01/32 6/12 at 101.00 BBB 858,408
1,950 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,976,793
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,750 Medical College Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA $ 4,894,543
Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured
3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,243,930
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/19 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.1% (2.1% OF TOTAL INVESTMENTS)
1,465 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,551,406
Multifamily Housing Revenue Bonds, Patrick Henry
Apartments, Series 2000, 6.050%, 11/01/32 (Alternative
Minimum Tax) (Mandatory put 11/01/20)
1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,603,238
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 1,028,220
Vistas GNMA Mortgage-Backed Revenue Bonds,
Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.0% (0.7% OF TOTAL INVESTMENTS)
350 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 337,796
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,004,460
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS)
2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,079,180
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7% (1.2% OF TOTAL INVESTMENTS)
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 1/05 at 100.00 N/R 1,350,257
1,000 5.750%, 1/01/27 1/05 at 100.00 N/R 982,160
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba3 484,705
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax)
1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba3 959,090
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax)
1,000 Isle of Wight County Industrial Development Authority, 5/07 at 102.00 BBB 1,022,060
Virginia, Solid Waste Disposal Facilities Revenue Bonds,
Union Camp Corporation Project, Series 1997,
6.100%, 5/01/27 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.7% (12.8% OF TOTAL INVESTMENTS)
900 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 996,741
5.000%, 6/15/13
900 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 997,749
5.000%, 12/15/11 (WI, settling 12/07/04)
Chesapeake, Virginia, General Obligation Water and Sewer
Bonds, Series 2003B:
1,880 5.000%, 6/01/21 6/13 at 100.00 AA 1,976,312
2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,143,183
1,355 Harrisonburg, Virginia, General Obligation Bonds, Public 7/12 at 101.00 AAA 1,440,839
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 Aaa 623,979
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,185 Lynchburg, Virginia, General Obligation Bonds, 6/14 at 100.00 AA 1,255,318
Series 2004, 5.000%, 6/01/21
41
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Newport News, Virginia, General Obligation Bonds, General
Improvement and Water Projects, Series 2002A:
$ 2,770 5.000%, 7/01/19 7/13 at 100.00 AA $ 2,941,601
1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,057,500
1,350 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 1,471,568
Series 2004C, 5.000%, 5/01/16
1,400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,484,910
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Portsmouth, Virginia, General Obligation Bonds, Series 2003, No Opt. Call AAA 1,103,710
5.000%, 7/01/12 - FSA Insured
1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,566,269
5.000%, 7/15/21 - FSA Insured
1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,539,295
Bonds, Series 2002A, 5.000%, 10/01/17
1,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,500,568
Improvement Bonds, Series 2001, 5.000%, 6/01/20
2,155 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,334,124
Series 2003B, 5.000%, 5/01/15
1,000 Virginia Beach, Virginia, General Obligation Bonds, No Opt. Call AA+ 1,100,730
Series 2004B, 5.000%, 5/01/13
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.6% (21.2% OF TOTAL INVESTMENTS)
750 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 807,195
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 1,193,325
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,530,279
500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102.00 N/R 521,995
Lease Revenue Bonds, Dinwiddie County School Facilities,
Series 1997A, 6.000%, 2/01/18
1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AAA 1,088,700
Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 -
MBIA Insured
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+ 2,479,310
2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,273,618
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 102.00 AA 1,138,970
Parking Revenue Bonds, Vienna II Metrorail Station Project,
1999 First Series, 6.000%, 9/01/18
1,660 Front Royal and Warren County Industrial Development 4/14 at 100.00 AAA 1,768,863
Authority, Virginia, Lease Revenue Bonds, Series 2004B,
5.000%, 4/01/18 - FSA Insured
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- 672,126
2,000 6.125%, 6/15/29 6/10 at 101.00 A- 2,213,000
1,200 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,386,600
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 2,038,480
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 -
FSA Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Refunding Bonds, Series 2002D:
265 5.250%, 7/01/27 7/12 at 100.00 A- 274,370
320 5.250%, 7/01/36 7/12 at 100.00 A- 328,602
880 5.250%, 7/01/36 (Pre-refunded to 7/01/12) 7/12 at 100.00 A- 973,465
1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,113,119
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 4.375%, 8/01/20 - AMBAC Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,301,180
Taxes Loan Notes, Series 1999A, 6.500%, 10/01/24
1,855 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 2,036,809
Revenue Bonds, 21st Century College Program,
Series 2004A, 5.000%, 2/01/11
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,000 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ $ 2,078,600
Revenue Bonds, 21st Century College Program,
Series 2002A, 5.000%, 2/01/22
2,250 Virginia Transportation Board, Transportation Revenue No Opt. Call AA+ 2,478,600
Bonds, Northern Virginia Transportation District Program,
Series 2004A, 5.000%, 5/15/14
2,000 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 2,204,100
Bonds, Series 2004B, 5.000%, 8/01/11
875 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 964,294
1997 Resolution, Series 2004C, 5.000%, 8/01/11
(WI, settling 12/08/04)
2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,112,140
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 1,232,717
3,060 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 3,272,578
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,833,786
Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.6% (8.6% OF TOTAL INVESTMENTS)
1,400 Metropolitan District of Columbia Airports Authority, 10/07 at 101.00 Aa3 1,438,878
Virginia, 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 4,067,960
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
530 Pocahontas Parkway Association, Virginia, Senior Lien 8/08 at 102.00 BB 486,514
Revenue Bonds, Route 895 Connector Toll Road,
Series 1998A, 5.500%, 8/15/28
2,500 Richmond Metropolitan Authority, Virginia, Revenue No Opt. Call AAA 2,786,325
Refunding Bonds, Expressway System, Series 2002,
5.250%, 7/15/22 - FGIC Insured
6,065 Virginia Port Authority, Revenue Bonds, Port Authority 7/07 at 101.00 AAA 6,327,675
Facilities, Series 1997, 5.600%, 7/01/27 (Alternative
Minimum Tax) - MBIA Insured
2,000 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 2,102,100
Revenue Bonds, Series 2001A, 5.250%, 8/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 9.8% (8.0% OF TOTAL INVESTMENTS)
395 Arlington County Industrial Development Authority, Virginia, 7/05 at 102.00 A*** 411,191
Multifamily Housing Mortgage Revenue Bonds, Arlington
Housing Corporation, Series 1995, 5.700%, 7/01/07
(Pre-refunded to 7/01/05)
1,380 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,490,386
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
3,000 Hampton Roads Regional Jail Authority, Virginia, Revenue 7/06 at 102.00 AAA 3,211,620
Bonds, Regional Jail Facility, Series 1996A,
5.500%, 7/01/24 (Pre-refunded to 7/01/06) -
MBIA Insured
Hampton, Virginia, General Obligation Public Improvement
Bonds, Series 2000:
890 5.750%, 2/01/17 (Pre-refunded to 2/01/10) 2/10 at 102.00 AA*** 1,019,210
2,000 6.000%, 2/01/20 (Pre-refunded to 2/01/10) 2/10 at 102.00 AA*** 2,313,060
1,230 Middlesex County Industrial Development Authority, Virginia, 8/09 at 102.00 AAA 1,417,723
Lease Revenue Bonds, School Facilities Project, Series 1999,
6.000%, 8/01/24 (Pre-refunded to 8/01/09) - MBIA Insured
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,696,225
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
735 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 A-*** 813,064
Government Facilities Revenue Refunding Bonds,
Series 2002D, 5.250%, 7/01/27 (Pre-refunded to 7/01/12)
2,250 Virginia College Building Authority, Educational Facilities 2/09 at 101.00 AA+ 2,508,998
Revenue Bonds, 21st Century College Program, Series 2000,
6.000%, 2/01/20
43
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.4% (7.8% OF TOTAL INVESTMENTS)
Bristol, Virginia, Utility System Revenue Refunding Bonds,
Series 2003:
$ 1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA $ 1,895,755
1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,985,454
2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,962,146
2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 2,785,350
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
3,500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/08 at 101.00 AAA 3,577,105
Series 1998A, 5.125%, 1/15/28 - FGIC Insured
Richmond, Virginia, Public Utility Revenue Refunding Bonds,
Series 2002:
750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 766,275
1,600 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,616,624
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.8% (10.9% OF TOTAL INVESTMENTS)
2,000 Fairfax County Water Authority, Virginia, Water Revenue 4/10 at 101.00 AAA 2,192,660
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 2,230,057
1,000 5.000%, 4/01/27 4/12 at 100.00 AAA 1,021,170
1,650 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,670,262
Refunding Bonds, Series 1999, 5.000%, 5/01/28
6,200 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA 6,522,524
5.875%, 11/01/20 - MBIA Insured
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,364,732
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,431,805
1,955 Rivanna Water and Sewerage Authority, Virginia, Regional 10/09 at 101.00 Aa3 2,117,614
Water and Sewerage System Revenue Bonds, Series 1999,
5.625%, 10/01/29
2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,569,208
Series 2000, 6.000%, 9/01/24
500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 555,900
Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22
- ------------------------------------------------------------------------------------------------------------------------------------
$ 186,295 Total Long-Term Investments (cost $187,901,804) - 145.0% 198,464,569
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,050 Puerto Rico Government Development Bank, Adjustable A-1 1,050,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,050 Total Short-Term Investments (cost $1,050,000) 1,050,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $188,951,804) - 145.8% 199,514,569
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 1,162,715
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.6)% (63,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 136,877,284
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
+ 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.
44
Nuveen Virginia Dividend Advantage Municipal Fund (NGB)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.6% (3.1% OF TOTAL INVESTMENTS)
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 120 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 120,761
850 5.400%, 5/15/31 5/11 at 100.00 Baa3 785,935
1,400 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 1,271,998
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.6% (9.1% OF TOTAL INVESTMENTS)
500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 505,965
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 508,125
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
850 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 897,337
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,
Series 1999:
160 5.375%, 2/01/19 2/09 at 101.00 BBB 165,600
320 5.375%, 2/01/29 2/09 at 101.00 BBB 324,752
375 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 355,808
Horse Center Revenue and Refunding Bonds, Series 2001B,
6.125%, 7/15/11
1,000 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 932,070
Horse Center Revenue and Refunding Bonds, Series 2001C,
6.850%, 7/15/21
700 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 771,379
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,404,990
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 514,710
Revenue Refunding Bonds, Marymount University,
Series 1998, 5.100%, 7/01/18 - RAAI Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.6% (12.4% OF TOTAL INVESTMENTS)
1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 1,040,460
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 2,146,180
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 504,030
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- 519,185
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
535 Loudoun County Industrial Development Authority, Virginia, 6/05 at 102.00 AAA 553,671
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 1995, 5.800%, 6/01/26 - FSA Insured
425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB 464,142
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 2002A, 6.000%, 6/01/22
1,000 Lynchburg Industrial Development Authority, Virginia, 1/08 at 101.00 A 1,018,950
Healthcare Facilities Revenue Refunding Bonds, Centra
Health Inc., Series 1998, 5.200%, 1/01/23
575 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 582,901
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
45
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Norfolk Industrial Development Authority, Virginia, Healthcare 8/07 at 102.00 AAA $ 1,036,370
Revenue Bonds, Bon Secours Health System, Series 1997,
5.250%, 8/15/26 - MBIA Insured
800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 858,320
Revenue Refunding and Improvement Bonds, Norton
Community Hospital, Series 2001, 6.000%, 12/01/22 -
ACA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.4% (3.0% OF TOTAL INVESTMENTS)
1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 1,035,020
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+ 1,047,970
Bonds, Series 2000G, 5.625%, 10/01/20 (Alternative
Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.1% (1.3% OF TOTAL INVESTMENTS)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,004,460
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.1% (0.0% OF TOTAL INVESTMENTS)
50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 51,980
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.7% OF TOTAL INVESTMENTS)
500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R 512,360
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31
650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 682,383
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamburg Landing Inc., Series 2003A,
6.000%, 3/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5% (0.3% OF TOTAL INVESTMENTS)
25 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba3 24,235
Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation, Series 1998,
5.600%, 12/01/25 (Alternative Minimum Tax)
20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 Ba3 20,710
Industrial Development Revenue Refunding 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 211,000
Virginia, Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation Project, Series 1998,
5.650%, 12/01/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.2% (19.4% OF TOTAL INVESTMENTS)
330 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 365,472
5.000%, 6/15/13
300 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 332,583
5.000%, 12/15/11 (WI, settling 12/07/04)
2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,097,200
Improvement Bonds, Series 2001, 5.000%, 1/15/21
3,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,500,259
Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured
1,540 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 Aaa 1,649,525
Improvement Bonds, Series 2001B, 5.250%, 1/01/20
845 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 921,092
Series 2004C, 5.000%, 5/01/16
320 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 339,408
Series 2000A, 6.000%, 6/01/20 - ACA Insured
500 Portsmouth, Virginia, General Obligation Bonds, No Opt. Call AAA 551,855
Series 2003, 5.000%, 7/01/12 - FSA Insured
1,300 Richmond, Virginia, General Obligation Refunding and Public 1/10 at 101.00 AAA 1,349,283
Improvement Bonds, Series 1999A, 5.125%, 1/15/24 -
FSA Insured
2,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,542,321
Improvement Bonds, Series 2001, 5.000%, 6/01/21
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.8% (13.2% OF TOTAL INVESTMENTS)
$ 310 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R $ 312,179
Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 493,915
Revenue Bonds, Series 2003, 7.500%, 6/01/33
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,052,320
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
960 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 1,099,584
Loan Notes, Series 1999A, 6.375%, 10/01/19
500 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 549,005
Revenue Bonds, 21st Century College Program, Series 2004A,
5.000%, 2/01/11
500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 519,650
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
450 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 477,945
Refunding Bonds, Northern Virginia Transportation District
Program, Series 1997B, 5.125%, 5/15/19
1,000 Virginia Transportation Board, Transportation Revenue No Opt. Call AA+ 1,101,600
Bonds, Northern Virginia Transportation District Program,
Series 2004A, 5.000%, 5/15/14
350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 357,616
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
750 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 826,538
Bonds, Series 2004B, 5.000%, 8/01/11
345 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 380,207
1997 Resolution, Series 2004C, 5.000%, 8/01/11
(WI, settling 12/08/04)
2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,115,060
1997 Resolution, Series 2001A, 5.000%, 8/01/19
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.2% (16.1% OF TOTAL INVESTMENTS)
1,750 Capital Region Airport Authority, Richmond, Virginia, 7/05 at 102.00 AAA 1,815,292
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 1,131,100
General Resolution Revenue Refunding Bonds, Series 1998,
5.500%, 7/01/25 - MBIA Insured
3,000 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 3,091,140
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 259,250
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 1,525,485
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 BB 25,178
200 5.250%, 8/15/07 No Opt. Call BB 201,680
200 5.500%, 8/15/28 8/08 at 102.00 BB 183,590
500 Richmond Metropolitan Authority, Virginia, Revenue No Opt. Call AAA 557,265
Refunding Bonds, Expressway System, Series 2002,
5.250%, 7/15/22 - FGIC Insured
1,225 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 1,287,536
Revenue Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 1,261,150
Revenue Bonds, Series 2001B, 5.125%, 8/01/27
(Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 12.9% (8.6% OF TOTAL INVESTMENTS)
1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102.00 AAA 1,070,910
Series 2001, 5.000%, 7/15/21 - FSA Insured
550 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 593,995
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
47
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,000 Newport News, Virginia, General Obligation Bonds, 5/10 at 102.00 AA*** $ 1,142,410
Series 2000A, 5.625%, 5/01/16 (Pre-refunded to 5/01/10)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,620,990
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,617,735
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2% (4.8% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 1,114,140
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
1,725 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,747,080
Refunding Bonds, Series 1995Z, 5.250%, 7/01/21
500 Richmond, Virginia, Public Utility Revenue Refunding 1/12 at 100.00 AAA 510,850
Bonds, Series 2002, 5.000%, 1/15/27 - FSA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.6% (6.4% OF TOTAL INVESTMENTS)
2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,075,460
Refunding Bonds, Series 1999, 5.000%, 5/01/22
520 Prince William County Service Authority, Virginia, Water 7/09 at 101.00 AAA 573,362
and Sewerage System Revenue Bonds, Series 1999,
5.500%, 7/01/19 - FGIC Insured
1,680 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 1,836,896
Fund Revenue Bonds, Series 2000, 5.400%, 10/01/20
- ------------------------------------------------------------------------------------------------------------------------------------
$ 66,810 Total Long-Term Investments (cost $67,491,270) - 149.3% 70,050,868
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.9% (0.6% OF TOTAL INVESTMENTS)
400 Puerto Rico Government Development Bank, Adjustable A-1 400,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 400 Total Short-Term Investments (cost $400,000) 400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $67,891,270) - 150.2% 70,450,868
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 460,486
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 46,911,354
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* 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.
+ 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.
48
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
Portfolio of
INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.3% (0.9% OF TOTAL INVESTMENTS)
$ 1,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,122,806
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
- ------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.5% (6.5% OF TOTAL INVESTMENTS)
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,055,190
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 1,016,250
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 3,120,450
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.375%, 12/01/21
1,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 1,101,970
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,079,660
Educational Facilities First Mortgage Revenue Bonds,
Shenandoah University, Series 1998, 5.250%, 10/01/28 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.0% (14.2% OF TOTAL INVESTMENTS)
1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,523,475
Hospital Revenue Bonds, Martha Jefferson Hospital,
Series 2002, 5.250%, 10/01/35
1,215 Danville Industrial Development Authority, Virginia, No Opt. Call AAA 1,335,006
Hospital Revenue Bonds, Danville Regional Medical Center,
Series 1998, 5.200%, 10/01/18 - AMBAC Insured
3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,121,380
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 680,441
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,038,370
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,000 Loudoun County Industrial Development Authority, Virginia, 6/05 at 102.00 AAA 1,034,900
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 1995, 5.800%, 6/01/26 - FSA Insured
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
250 6.000%, 6/01/22 6/12 at 101.00 BBB 273,025
600 6.100%, 6/01/32 6/12 at 101.00 BBB 643,806
1,155 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,170,870
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
1,000 Medical College of Virginia Hospitals Authority, General 7/08 at 102.00 AAA 1,089,500
Revenue Bonds, Series 1998, 5.250%, 7/01/14 - MBIA Insured
1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,287,480
Revenue Refunding and Improvement Bonds, Norton
Community Hospital, Series 2001, 6.000%, 12/01/22 -
ACA Insured
1,000 Prince William County Industrial Development Authority, 10/08 at 102.00 Aaa 1,039,760
Virginia, Hospital Facility Revenue Refunding Bonds, Potomac
Hospital Corporation of Prince William, Series 1998,
5.000%, 10/01/18 - FSA Insured
3,915 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 4,222,797
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/20 - MBIA Insured
49
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5% (5.8% OF TOTAL INVESTMENTS)
$ 7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA $ 7,518,383
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8% (1.2% OF TOTAL INVESTMENTS)
165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R 169,079
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31
1,350 James City County Industrial Development Authority, 3/12 at 101.00 N/R 1,417,257
Virginia, Residential Care Facility First Mortgage Revenue
Refunding Bonds, Williamburg Landing Inc., Series 2003A,
6.000%, 3/01/23
- ------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5% (0.4% OF TOTAL INVESTMENTS)
40 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba3 38,776
Industrial Development Revenue Refunding 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 441,181
Virginia, Industrial Development Revenue Refunding
Bonds, Nekoosa Packaging Corporation Project,
Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax)
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.9% (23.7% OF TOTAL INVESTMENTS)
600 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 664,494
5.000%, 6/15/13
540 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 598,649
5.000%, 12/15/11 (WI, settling 12/07/04)
1,750 Chesapeake, Virginia, General Obligation Public Improvement 12/11 at 100.00 AA 1,953,052
Refunding Bonds, Series 2001, 5.500%, 12/01/16
1,000 Fairfax County, Virginia, General Obligation Refunding and 6/10 at 101.00 AAA 1,051,680
Improvement Bonds, Series 2002, 5.000%, 6/01/20
1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 Aaa 1,785,204
Improvement Bonds, Series 2001C, 4.500%, 11/01/17
540 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 575,980
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,840 Newport News, Virginia, General Obligation Bonds, 7/13 at 100.00 AA 1,945,800
General Improvement and Water Projects, Series 2002A,
5.000%, 7/01/20
1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA 1,047,220
Series 2003B, 5.000%, 11/01/22
565 Portsmouth, Virginia, General Obligation Public Utility 6/08 at 100.00 AAA 592,651
Refunding Bonds, Series 2001B, 5.000%, 6/01/21 -
FGIC Insured
1,500 Portsmouth, Virginia, General Obligation Bonds, Series 2003, No Opt. Call AAA 1,655,565
5.000%, 7/01/12 - FSA Insured
Powhatan County, Virginia, General Obligation Bonds,
Series 2001:
660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 682,942
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,020,540
1,000 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,058,290
5.000%, 7/15/21 - FSA Insured
Roanoke, Virginia, General Obligation Public Improvement
Bonds, Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,570,568
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,596,879
1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,376,883
Bonds, Series 2002B, 5.000%, 10/01/15 (Alternative
Minimum Tax) - FGIC Insured
Salem, Virginia, General Obligation Public Improvement
Bonds, Series 2002:
1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,227,761
1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,282,944
1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,343,916
1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,410,741
1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,178,600
6.250%, 2/01/25 - AMBAC Insured
1,500 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,584,810
Improvement Bonds, Series 2001, 5.000%, 6/01/19
1,420 Virginia Beach, Virginia, General Obligation Refunding 3/12 at 100.00 AA+ 1,492,846
and Public Improvement Bonds, Series 2002,
5.000%, 3/01/21
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.4% (19.1% OF TOTAL INVESTMENTS)
$ 573 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R $ 577,028
Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22
1,000 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 1,076,260
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 987,830
Revenue Bonds, Series 2003, 7.500%, 6/01/33
1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA 1,902,654
Lease Revenue Refunding Bonds, Public Facility Project,
Series 2003, 5.000%, 3/01/19
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 808,850
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
400 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 A- 414,144
Facilities Revenue Refunding Bonds, Series 2002D,
5.250%, 7/01/27
455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 476,062
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,052,320
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
1,000 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 1,098,010
Revenue Bonds, 21st Century College Program,
Series 2004A, 5.000%, 2/01/11
1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,860,347
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
Virginia 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+ 1,765,323
1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,717,298
1,000 Virginia Transportation Board, Transportation Revenue Bonds, No Opt. Call AA+ 1,101,600
Northern Virginia Transportation District Program,
Series 2004A, 5.000%, 5/15/14
1,710 Virginia Transportation Board, Transportation Revenue Bonds, 5/11 at 100.00 AA+ 1,738,728
Northern Virginia Transportation District Program,
Series 2001A, 5.000%, 5/15/26
690 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 705,014
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
1,710 Virginia Public Building Authority, Public Facilities Revenue 8/08 at 100.00 AAA 1,798,732
Bonds, Series 1999A, 5.000%, 8/01/19 - MBIA Insured
1,000 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 1,102,050
Bonds, Series 2004B, 5.000%, 8/01/11
570 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 628,169
1997 Resolution, Series 2004C, 5.000%, 8/01/11
(WI, settling 12/08/04)
2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,686,126
1997 Resolution, Series 2001B, 5.000%, 8/01/19
1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,286,821
Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.3% (3.6% OF TOTAL INVESTMENTS)
2,500 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 2,725,550
General Resolution Revenue 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 1,012,090
System Revenue Bonds, Series 2002A, 5.125%, 10/01/26
(Alternative Minimum Tax) - 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 BB 25,178
300 5.250%, 8/15/07 No Opt. Call BB 302,520
325 5.500%, 8/15/28 8/08 at 102.00 BB 298,334
300 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 323,982
Bonds, Series 2001A, 5.250%, 8/01/17
51
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 11.4% (8.6% OF TOTAL INVESTMENTS)
$ 6,250 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA $ 6,740,563
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 A-*** 1,216,831
Facilities Revenue Refunding Bonds, Series 2002D,
5.250%, 7/01/27 (Pre-refunded to 7/01/12)
1,345 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+*** 1,514,914
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
1,000 Virginia College Building Authority, Educational Facilities 8/07 at 101.00 AA+*** 1,071,130
Revenue Bonds, 21st Century College Program, Series 1998,
5.000%, 8/01/13 (Pre-refunded to 8/01/07)
500 Virginia Public Building Authority, Public Facilities Revenue 8/10 at 100.00 AA+*** 557,370
Bonds, Series 2000A, 5.750%, 8/01/20 (Pre-refunded
to 8/01/10)
- ------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.6% (5.1% OF TOTAL INVESTMENTS)
2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 2,228,280
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration
LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
3,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,256,469
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
1,110 Russell County Industrial Development Authority, Virginia, 11/08 at 101.00 AAA 1,165,267
Pollution Control Revenue Bonds, Appalachian Power
Company, Series 1998H, 5.000%, 11/01/21 - MBIA Insured
- ------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.8% (10.8% OF TOTAL INVESTMENTS)
1,000 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,021,170
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 1,141,260
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,438,870
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,198,941
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,255,605
1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,498,300
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,570,306
500 Virginia Beach, Virginia, Water and Sewerage System 8/10 at 100.00 AA 544,380
Revenue Bonds, Series 2000, 5.125%, 8/01/14
2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,271,780
Revenue Bonds, Caroline County Public Improvements
Project, Series 2001, 5.000%, 5/01/32
- ------------------------------------------------------------------------------------------------------------------------------------
$ 122,413 Total Long-Term Investments (cost $124,083,213) - 147.0% 129,402,283
=============-----------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2% (0.1 OF TOTAL INVESTMENTS)
$ 150 Puerto Rico Government Development Bank, Adjustable A-1 $ 150,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.580%, 12/01/15 - MBIA Insured+
- ------------------------------------------------------------------------------------------------------------------------------------
$ 150 Total Short-Term Investments (cost $150,000) 150,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $124,233,213) - 147.2% 129,552,283
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.5% 469,975
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.7)% (42,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 88,022,258
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT NOVEMBER 30, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
- ------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanley dated August 4, 2004, to pay semi-annually the
notional amount multiplied by 5.660% (annualized) and receive quarterly the
notional amount multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $2,200,000 2/16/05 2/16/35 $ (76,430)
Agreement with Morgan Stanley dated August 5, 2004, to pay quarterly the
notional amount multiplied by 4.337% (annualized) and receive quarterly the
notional amount multiplied by the one-week BMA (Bond Market Association)
Municipal Swap Index for the quarter. 1,200,000 12/09/04 12/09/24 (16,936)
Agreement with Morgan Stanley dated August 10, 2004, to pay semi-annually
the notional amount multiplied by 5.489% (annualized) and receive quarterly
the notional amount multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). 1,500,000 1/14/05 1/14/35 (17,791)
- ------------------------------------------------------------------------------------------------------------------------------------
$(111,157)
- ------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* 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.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
53
Statement of
ASSETS AND LIABILITIES November 30, 2004 (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 $223,561,250, $89,131,924,
$90,790,435 and $113,500,236, respectively) $231,499,251 $91,713,730 $93,920,002 $115,224,249
Cash 464,772 177,384 195,688 262,571
Receivables:
Interest 4,100,971 1,586,068 1,513,485 1,641,336
Investments sold 40,000 651,210 -- --
Other assets 23,625 4,881 776 907
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 236,128,619 94,133,273 95,629,951 117,129,063
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 816,305 316,520 322,072 405,369
Forward swaps, at value -- 54,986 50,100 131,435
Accrued expenses:
Management fees 123,701 26,557 26,995 31,138
Other 53,043 19,770 36,407 26,886
Preferred share dividends payable 17,530 1,377 -- 8,237
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,010,579 419,210 435,574 603,065
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000
====================================================================================================================================
Net assets applicable to Common shares $156,018,040 $61,714,063 $63,194,377 $ 77,525,998
====================================================================================================================================
Common shares outstanding 10,599,583 4,163,990 4,171,390 5,359,275
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares, divided
by Common shares outstanding) $ 14.72 $ 14.82 $ 15.15 $ 14.47
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 105,996 $ 41,640 $ 41,714 $ 53,593
Paid-in surplus 147,172,785 59,062,544 59,169,374 75,640,938
Undistributed net investment income 1,523,970 570,921 638,053 206,633
Accumulated net realized gain (loss) from investments (722,712) (487,862) 265,769 32,256
Net unrealized appreciation (depreciation) of investments and
forward swap transactions 7,938,001 2,526,820 3,079,467 1,592,578
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $156,018,040 $61,714,063 $63,194,377 $ 77,525,998
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
54
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $188,951,804, $67,891,270
and $124,233,213, respectively) $199,514,569 $70,450,868 $129,552,283
Cash 284,976 165,082 125,466
Receivables:
Interest 2,949,985 1,048,987 1,758,905
Investments sold 50,050 -- --
Other assets 15,212 4,798 1,718
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 202,814,792 71,669,735 131,438,372
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments purchased 1,978,453 718,523 1,236,885
Forward swaps, at value -- -- 111,157
Accrued expenses:
Management fees 105,942 20,077 36,816
Other 44,152 16,102 31,256
Preferred share dividends payable 8,961 3,679 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,137,508 758,381 1,416,114
- ------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
====================================================================================================================================
Net assets applicable to Common shares $136,877,284 $46,911,354 $ 88,022,258
====================================================================================================================================
Common shares outstanding 8,856,081 3,122,238 5,701,760
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 15.46 $ 15.02 $ 15.44
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
- ------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 88,561 $ 31,222 $ 57,018
Paid-in surplus 124,516,244 44,259,626 80,922,386
Undistributed net investment income 1,449,264 447,918 711,182
Accumulated net realized gain (loss) from investments 260,450 (387,010) 1,123,759
Net unrealized appreciation (depreciation) of investments
and forward swap transactions 10,562,765 2,559,598 5,207,913
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $136,877,284 $46,911,354 $ 88,022,258
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
55
Statement of
OPERATIONS Six Months Ended November 30, 2004 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,869,668 $2,298,541 $2,218,625 $2,587,417
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 751,698 302,859 307,512 375,934
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 15,483 1,212 658 610
Custodian's fees and expenses 29,473 13,284 13,962 14,986
Trustees' fees and expenses 4,066 1,660 1,745 1,865
Professional fees 8,048 5,475 5,359 5,889
Shareholders' reports - printing and mailing expenses 18,124 6,830 7,597 10,597
Stock exchange listing fees 5,518 177 178 229
Investor relations expense 14,607 3,336 7,328 6,463
Other expenses 9,166 5,636 5,621 5,215
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 965,356 385,593 395,084 475,685
Custodian fee credit (4,728) (3,467) (2,347) (3,419)
Expense reimbursement -- (140,667) (142,829) (186,251)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 960,628 241,459 249,908 286,015
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,909,040 2,057,082 1,968,717 2,301,402
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 192,080 98,559 55,481 5,680
Change in net unrealized appreciation (depreciation)
of investments 4,816,279 1,649,629 2,097,184 3,282,740
Change in net unrealized appreciation (depreciation)
of forward swap transactions -- (54,986) (50,100) (131,435)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 5,008,359 1,693,202 2,102,565 3,156,985
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (403,220) (146,337) (141,863) (195,212)
From accumulated net realized gains from investments -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (403,220) (146,337) (141,863) (195,212)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $9,514,179 $3,603,947 $3,929,419 $5,263,175
====================================================================================================================================
See accompanying notes to financial statements.
56
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $4,998,888 $1,752,822 $3,075,804
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 642,819 227,982 418,411
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 12,676 737 974
Custodian's fees and expenses 23,232 10,960 17,316
Trustees' fees and expenses 3,070 1,204 2,014
Professional fees 8,006 5,013 6,048
Shareholders' reports - printing and mailing expenses 15,281 5,635 8,761
Stock exchange listing fees 5,534 133 243
Investor relations expense 12,416 4,500 10,447
Other expenses 7,176 5,410 6,195
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 820,206 296,670 528,067
Custodian fee credit (4,025) (2,915) (3,942)
Expense reimbursement -- (105,890) (194,465)
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 816,181 187,865 329,660
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,182,707 1,564,957 2,746,144
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 648,927 218,236 400,163
Change in net unrealized appreciation (depreciation)
of investments 3,963,642 1,693,924 3,391,086
Change in net unrealized appreciation (depreciation)
of forward swap transactions -- -- (111,157)
- ------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 4,612,569 1,912,160 3,680,092
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (290,842) (106,531) (182,549)
From accumulated net realized gains from investments -- -- (8,047)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (290,842) (106,531) (190,596)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common
shares from operations $8,504,434 $3,370,586 $6,235,640
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
CHANGES IN NET ASSETS (Unaudited)
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
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,909,040 $ 10,156,311 $ 2,057,082 $ 4,218,418 $ 1,968,717 $ 4,014,581
Net realized gain (loss) from
investments 192,080 1,568,621 98,559 (29,789) 55,481 323,150
Change in net unrealized
appreciation (depreciation)
of investments 4,816,279 (10,232,161) 1,649,629 (4,437,544) 2,097,184 (4,844,253)
Change in net unrealized
appreciation (depreciation)
of forward swap transactions -- -- (54,986) -- (50,100) --
Distributions to
Preferred Shareholders:
From net investment income (403,220) (599,393) (146,337) (223,126) (141,863) (251,576)
From accumulated net
realized gains
from investments -- -- -- -- -- (7,701)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 9,514,179 893,378 3,603,947 (472,041) 3,929,419 (765,799)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,830,744) (9,643,203) (1,960,831) (3,881,861) (1,826,905) (3,627,102)
From accumulated net
realized gains
from investments -- -- -- -- -- (77,957)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common shares
from distributions
to Common shareholders (4,830,744) (9,643,203) (1,960,831) (3,881,861) (1,826,905) (3,705,059)
- ------------------------------------------------------------------------------------------------------------------------------------
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 227,808 441,548 29,625 55,602 11,541 43,133
Preferred shares offering costs -- -- -- -- 16,302 (1,870)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 227,808 441,548 29,625 57,266 27,843 45,034
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 4,911,243 (8,308,277) 1,672,741 (4,296,636) 2,130,357 (4,425,824)
Net assets applicable to Common
shares at the beginning
of period 151,106,797 159,415,074 60,041,322 64,337,958 61,064,020 65,489,844
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $156,018,040 $151,106,797 $61,714,063 $60,041,322 $63,194,377 $61,064,020
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,523,970 $ 1,848,894 $ 570,921 $ 621,007 $ 638,053 $ 638,104
====================================================================================================================================
See accompanying notes to financial statements.
58
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,301,402 $ 4,664,021 $ 4,182,707 $ 8,615,487 $ 1,564,957 $ 3,184,343
Net realized gain (loss) from
investments 5,680 419,773 648,927 1,376,071 218,236 134,876
Change in net unrealized
appreciation (depreciation)
of investments 3,282,740 (5,940,325) 3,963,642 (10,254,013) 1,693,924 (3,401,688)
Change in net unrealized
appreciation (depreciation)
of forward
swap transactions (131,435) -- -- -- -- --
Distributions to
Preferred Shareholders:
From net investment income (195,212) (329,706) (290,842) (443,213) (106,531) (168,056)
From accumulated net
realized gains
from investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 5,263,175 (1,186,237) 8,504,434 (705,668) 3,370,586 (250,525)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,106,195) (4,211,017) (4,035,153) (8,044,962) (1,470,306) (2,910,545)
From accumulated net
realized gains
from investments -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (2,106,195) (4,211,017) (4,035,153) (8,044,962) (1,470,306) (2,910,545)
- ------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- 1,664
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 72,758 285,644 649,807 22,751 46,219
Preferred shares offering costs -- (6,570) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions -- 66,188 285,644 649,807 22,751 47,883
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 3,156,980 (5,331,066) 4,754,925 (8,100,823) 1,923,031 (3,113,187)
Net assets applicable to Common
shares at the beginning
of period 74,369,018 79,700,084 132,122,359 140,223,182 44,988,323 48,101,510
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $77,525,998 $74,369,018 $136,877,284 $132,122,359 $46,911,354 $44,988,323
====================================================================================================================================
Undistributed net investment
income at the end of period $ 206,633 $ 206,638 $ 1,449,264 $ 1,592,552 $ 447,918 $ 459,798
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
----------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/04 5/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,746,144 $ 5,615,166
Net realized gain (loss) from
investments 400,163 729,712
Change in net unrealized appreciation
(depreciation) of investments 3,391,086 (7,681,558)
Change in net unrealized appreciation
(depreciation) of forward swap transactions (111,157) --
Distributions to Preferred Shareholders:
From net investment income (182,549) (320,789)
From accumulated net realized gains
from investments (8,047) (24,663)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 6,235,640 (1,682,132)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,547,713) (5,062,594)
From accumulated net realized gains
from investments -- (268,662)
- ------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,547,713) (5,331,256)
- ------------------------------------------------------------------------------------------------------------------------------------
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 85,996 193,934
Preferred shares offering costs -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 85,996 196,390
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 3,773,923 (6,816,998)
Net assets applicable to Common
shares at the beginning of period 84,248,335 91,065,333
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $88,022,258 $84,248,335
====================================================================================================================================
Undistributed net investment
income at the end of period $ 711,182 $ 695,300
====================================================================================================================================
See accompanying notes to financial statements.
60
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The 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.
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 U.S.
generally accepted accounting principles.
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, 2004,
Maryland Premium Income (NMY), Maryland Dividend Advantage (NFM), Maryland
Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI), Virginia
Premium Income (NPV), Virginia Dividend Advantage (NGB) and Virginia Dividend
Advantage 2 (NNB) had outstanding when-issued purchase commitments of $816,305,
$316,520, $322,072, $405,369, $1,978,453, $718,523 and $1,236,885, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
61
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all net investment income and net capital gains to
shareholders and to otherwise comply with the requirements of Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
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. Net realized capital gains and ordinary income distributions paid by the
Funds are subject to federal taxation.
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 U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate on each Series is
determined every seven days, pursuant to a dutch auction process overseen by the
auction agent, and is payable weekly at 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
================================================================================
62
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract. The Funds may close out a contract prior to the effective date at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash. Each Fund intends, but is
not obligated to, terminate its forward swaps before the effective date.
Accordingly, the risk of loss with respect to the swap counterparty on such
transactions is limited to the credit risk associated with a counterparty
failing to honor its commitment to pay any realized gain to the Fund upon
termination. To minimize such credit risk, all counterparties are required to
pledge collateral daily (based on the daily valuation of each swap) on behalf of
each Fund with a value approximately equal to the amount of any unrealized gain
above a pre-determined threshold. Reciprocally, when any of the Funds have an
unrealized loss on a swap contract, the Funds have instructed the custodian to
pledge assets of the Funds as collateral with a value approximately equal to the
amount of the unrealized loss above a pre-determined threshold. Collateral
pledges are monitored and subsequently adjusted if and when the swap valuations
fluctuate, either up or down, by at least the pre-determined threshold amount.
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.
Indemnifications
Under the Funds' organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles 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 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
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
- ---------------------------------------------------------------------------------------------------------
Common shares issued
to shareholders
due to reinvestment of
distributions 14,792 27,206 1,871 3,448 749 2,757
=========================================================================================================
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
----------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/04 5/31/04 11/30/04 5/31/04 11/30/04 5/31/04
- ---------------------------------------------------------------------------------------------------------
Common shares issued
to shareholders
due to reinvestment of
distributions -- 4,992 17,777 37,945 1,413 2,763
=========================================================================================================
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/04 5/31/04
- ---------------------------------------------------------------------------------------------------------
Common shares issued
to shareholders
due to reinvestment of
distributions 5,492 11,856
=========================================================================================================
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended November 30, 2004, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- --------------------------------------------------------------------------------
Purchases $ 9,308,022 $5,461,923 $ 5,489,787 $8,170,298
Sales and maturities 10,515,381 5,740,362 5,529,663 7,198,221
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- --------------------------------------------------------------------------------
Purchases $21,245,176 $5,297,252 $7,345,809
Sales and maturities 20,172,727 4,618,497 5,659,239
================================================================================
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 the treatment of paydown gains and losses on investments,
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, 2004, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- --------------------------------------------------------------------------------
Cost of investments $223,310,811 $89,115,747 $90,769,717 $113,489,911
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- --------------------------------------------------------------------------------
Cost of investments $188,734,407 $67,873,402 $124,194,892
================================================================================
64
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2004, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
- ---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $10,115,375 $2,952,418 $3,383,029 $2,207,885
Depreciation (1,926,935) (354,435) (232,744) (473,547)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $ 8,188,440 $2,597,983 $3,150,285 $1,734,338
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ---------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,261,296 $2,888,409 $5,543,474
Depreciation (481,134) (310,943) (186,083)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $10,780,162 $2,577,466 $5,357,391
=========================================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2004, 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 * $2,321,516 $939,005 $928,321 $554,960
Undistributed net ordinary income ** -- -- 17,253 --
Undistributed net long-term capital gains -- -- 193,076 19,686
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,052,978 $695,451 $1,099,704
Undistributed net ordinary income ** 20,262 -- --
Undistributed net long-term capital gains -- -- 731,643
=========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared May 3, 2004, paid on June 1, 2004.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended May 31,
2004, 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
(NMY) (NFM) (NZR) (NWI)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,234,475 $4,085,826 $3,868,426 $4,538,274
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- 85,658 --
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
- ---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $8,481,892 $3,063,648 $5,362,717
Distributions from net ordinary income ** -- -- 83,459
Distributions from net long-term capital gains -- -- 209,866
=========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At May 31, 2004, 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 VIRGINIA VIRGINIA
PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NPV) (NGB)
- --------------------------------------------------------------------------------
Expiration year:
2005 $144,358 $ -- $140,749 $ --
2006 -- -- -- --
2007 -- -- -- --
2008 332,070 -- 250,767 --
2009 317,048 9,875 -- 186,152
2010 -- 37,159 -- 104,197
2011 -- -- -- 32,605
2012 -- 430,282 -- 282,292
- --------------------------------------------------------------------------------
Total $793,476 $477,316 $391,516 $605,246
================================================================================
Maryland Dividend Advantage (NFM) elected to defer net realized losses from
investments incurred from November 1, 2003 through May 31, 2004 ("post-October
losses") in accordance with Federal income tax regulations. Post-October losses
of $109,105 were treated as having arisen on the first day of the current fiscal
year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and
its affiliates. This fee structure separates each fund's management fee into two
components - a complex-level component, based on the aggregate amount of all
funds assets managed by the Adviser and its affiliates, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser and its affiliates. Under
no circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As a consequence of
this new management fee structure, the funds' effective management fees were
reduced by approximately .007% as of December 31, 2004.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS MARYLAND PREMIUM INCOME (NMY)
(INCLUDING NET ASSETS VIRGINIA PREMIUM INCOME (NPV)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
66
MARYLAND DIVIDEND ADVANTAGE (NFM)
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
AVERAGE DAILY NET ASSETS VIRGINIA DIVIDEND ADVANTAGE (NGB)
(INCLUDING NET ASSETS VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
- --------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS MARYLAND PREMIUM INCOME (NMY)
(INCLUDING NET ASSETS VIRGINIA PREMIUM INCOME (NPV)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
- --------------------------------------------------------------------------------
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
================================================================================
MARYLAND DIVIDEND ADVANTAGE (NFM)
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
AVERAGE DAILY NET ASSETS VIRGINIA DIVIDEND ADVANTAGE (NGB)
(INCLUDING NET ASSETS VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE RATE
- --------------------------------------------------------------------------------
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. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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.
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.
68
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.
6. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 30, 2004, to shareholders of
record on December 15, 2004, 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 MARYLAND VIRGINIA
DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE 2
(NZR) (NWI) (NNB)
- --------------------------------------------------------------------------------
Capital gains distributions per share $.0575 $.0076 $.1878
Ordinary income distributions per share* .0041 -- --
================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Adviser Merger
Effective January 1, 2005, the Adviser and its affiliate, Nuveen Institutional
Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), also
a wholly owned subsidiary of Nuveen Investments, Inc. As a result of the merger,
NAM is now the adviser to all funds previously advised by either NIAC or the
Adviser.
69
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:
2005(a) $14.28 $ .46 $ .48 $(.04) $-- $ .90 $(.46) $ -- $(.46)
2004 15.10 .96 (.81) (.06) -- .09 (.91) -- (.91)
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)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 14.43 .49 .41 (.04) -- .86 (.47) -- (.47)
2004 15.47 1.01 (1.07) (.05) -- (.11) (.93) -- (.93)
2003 14.18 1.04 1.18 (.08) -- 2.14 (.86) -- (.86)
2002 13.90 1.04 .22 (.14) -- 1.12 (.84) -- (.84)
2001(b) 14.33 .22 (.25) (.05) -- (.08) (.21) -- (.21)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 14.64 .47 .51 (.03) -- .95 (.44) -- (.44)
2004 15.71 .96 (1.08) (.06) -- (.18) (.87) (.02) (.89)
2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81)
2002(c) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46)
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 13.88 .43 .59 (.04) -- .98 (.39) -- (.39)
2004 14.89 .87 (1.03) (.06) -- (.22) (.79) -- (.79)
2003(d) 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:
2005(a) $ -- $14.72 $15.9900 13.92% 6.33%
2004 -- 14.28 14.4500 (10.77) .64
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)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 14.82 15.0600 (0.61) 6.01
2004 -- 14.43 15.6200 2.99 (.69)
2003 .01 15.47 16.0800 9.98 15.55
2002 -- 14.18 15.4400 1.98 8.21
2001(b) (.14) 13.90 15.9900 8.02 (1.53)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 15.15 15.1500 9.20 6.52
2004 -- 14.64 14.2800 (2.90) (1.16)
2003 .01 15.71 15.6000 12.71 18.39
2002(c) (.15) 14.01 14.6100 .52 1.01
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 14.47 13.5900 5.59 7.12
2004 -- 13.88 13.2400 (5.97) (1.51)
2003(d) (.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:
2005(a) $156,018 1.24%* 6.30%* 1.23%* 6.31%* 4%
2004 151,107 1.24 6.54 1.23 6.55 16
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
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 61,714 1.25* 6.20* .78* 6.67* 6
2004 60,041 1.24 6.34 .78 6.80 10
2003 64,338 1.26 6.54 .79 7.01 12
2002 58,925 1.35 6.81 .82 7.34 36
2001(b) 57,740 1.17* 4.33* .75* 4.75* 10
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 63,194 1.25* 5.77* .79* 6.23* 6
2004 61,064 1.24 5.90 .78 6.36 11
2003 65,490 1.26 6.07 .80 6.53 12
2002(c) 58,370 1.22* 5.55* .79* 5.99* 21
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 77,526 1.23* 5.46* .74* 5.95* 6
2004 74,369 1.22 5.59 .73 6.08 15
2003(d) 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:
2005(a) $79,100 $25,000 $74,310
2004 79,100 25,000 72,758
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
MARYLAND DIVIDEND
ADVANTAGE (NFM)
- ----------------------------------------------------------------
Year Ended 5/31:
2005(a) 32,000 25,000 73,214
2004 32,000 25,000 71,907
2003 32,000 25,000 75,264
2002 32,000 25,000 71,035
2001(b) 32,000 25,000 70,109
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
- ----------------------------------------------------------------
Year Ended 5/31:
2005(a) 32,000 25,000 74,371
2004 32,000 25,000 72,706
2003 32,000 25,000 76,164
2002(c) 32,000 25,000 70,601
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
- ----------------------------------------------------------------
Year Ended 5/31:
2005(a) 39,000 25,000 74,696
2004 39,000 25,000 72,672
2003(d) 39,000 25,000 76,090
================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended November 30, 2004.
(b) For the period January 23, 2001 (commencement of operations) through May
31, 2001.
(c) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(d) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
70-71 spread
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:
2005(a) $14.95 $ .47 $ .53 $(.03) $ -- $ .97 $(.46) $ -- $(.46)
2004 15.93 .97 (.99) (.05) -- (.07) (.91) -- (.91)
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)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 14.42 .50 .60 (.03) -- 1.07 (.47) -- (.47)
2004 15.43 1.02 (1.05) (.05) -- (.08) (.93) -- (.93)
2003 14.23 1.02 1.10 (.07) -- 2.05 (.86) -- (.86)
2002 13.87 1.02 .32 (.13) -- 1.21 (.85) -- (.85)
2001(b) 14.33 .24 (.28) (.05) -- (.09) (.21) -- (.21)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 14.79 .48 .65 (.03) -- 1.10 (.45) -- (.45)
2004 16.02 .99 (1.22) (.06) -- (.29) (.89) (.05) (.94)
2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87)
2002(c) 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:
2005(a) $ -- $15.46 $17.6500 21.36% 6.51%
2004 -- 14.95 14.9500 (10.70) (.42)
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)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- ----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 15.02 17.3500 18.46 7.49
2004 -- 14.42 15.0700 (8.11) (.50)
2003 .01 15.43 17.3500 21.45 14.92
2002 -- 14.23 15.0900 5.10 8.89
2001(b) (.16) 13.87 15.1800 2.61 (1.73)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- ----------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) -- 15.44 15.7600 10.65 7.47
2004 -- 14.79 14.6500 (3.81) (1.84)
2003 -- 16.02 16.1400 14.58 18.51
2002(c) (.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:
2005(a) $136,877 1.20%* 6.12%* 1.20%* 6.12%* 10%
2004 132,122 1.20 6.33 1.19 6.34 14
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
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- ------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 46,911 1.27* 6.26* .81* 6.72* 7
2004 44,988 1.24 6.39 .77 6.86 7
2003 48,102 1.28 6.45 .81 6.92 10
2002 44,308 1.37 6.68 .84 7.21 21
2001(b) 43,155 1.27* 4.76* .80* 5.23* 20
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- ------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2005(a) 88,022 1.21* 5.82* .75* 6.27* 4
2004 84,248 1.20 5.99 .74 6.44 16
2003 91,065 1.21 6.01 .75 6.47 15
2002(c) 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:
2005(a) $63,800 $25,000 $78,635
2004 63,800 25,000 76,772
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
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
- --------------------------------------------------------------------
Year Ended 5/31:
2005(a) 24,000 25,000 73,866
2004 24,000 25,000 71,863
2003 24,000 25,000 75,106
2002 24,000 25,000 71,154
2001(b) 24,000 25,000 69,953
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
- --------------------------------------------------------------------
Year Ended 5/31:
2005(a) 42,000 25,000 77,394
2004 42,000 25,000 75,148
2003 42,000 25,000 79,206
2002(c) 42,000 25,000 73,408
====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended November 30, 2004.
(b) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(c) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
See accompanying notes to financial statements.
72-73 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
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
the dividends or distributions awaiting reinvestment. Because the market price
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.
FLEXIBLE
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.
74
Other Useful
INFORMATION
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments and (ii) information
regarding how the Funds voted proxies relating to portfolio securities held
during the most recent 12-month period ended June 30, 2004, are available
without charge, upon request, by calling Nuveen Investments toll-free at (800)
257-8787 or on Nuveen's web site at www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) 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 the sensitivity of a bond
or bond Fund's value to changes when interest rates change. 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 longer than the duration of
the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Asset Management
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 REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock,
where applicable, in the future at such times and in such amounts as is deemed
advisable. No shares were purchased during the six month period ended November
30, 2004. Any future repurchases will be reported to shareholders in the next
annual or semiannual report.
75
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
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.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $100 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
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.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-A-1104D
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. SCHEDULE OF INVESTMENTS.
See Schedule I in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 11. 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 second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. 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 to
this filing.
(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.
(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 3
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: February 8, 2005
-------------------------------------------------------------------
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 8, 2005
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 8, 2005
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.