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 811-09469 --------------------- Nuveen Virginia Dividend Advantage Municipal Fund ------------------------------------------------------------------------------ (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 Photo of: Man and woman sitting on porch. Photo of: 2 children sitting in the grass. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ------------------ DELIVERY DIRECT TO YOUR E-MAIL INBOX ------------------ IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments 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 Virginia Dividend Advantage Municipal Fund ----------------------------------------------------------- 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.