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 811-10523 --------------------- Nuveen Virginia Dividend Advantage Municipal Fund 2 ------------------------------------------------------------------------------ (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, 2006 ------------------ 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, 2006 Nuveen Investments Municipal Closed-End 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: Woman and man at the beach. Photo of: A child. 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: Woman Photo of: Man and child 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 Once again, I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. For some time, I've used these letters to remind you that municipal bonds can be an important building block in a well balanced investment portfolio. In addition to providing attractive tax-free monthly income, a municipal bond investment like your Fund may help you achieve and benefit from greater portfolio diversification. Portfolio diversification is a recognized way to try to reduce some of the risk that comes with investing. For more information about this important investment strategy, I encourage you to contact your personal financial advisor. "IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER PORTFOLIO DIVERSIFICATION." We also are pleased to be able to offer you a choice concerning how you receive your shareholder reports and other Fund information. As an alternative to mailed copies, you can sign up to receive future Fund reports and other Fund information by e-mail and the Internet. The inside front cover of this report contains information on how you can sign up. 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. 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. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 15, 2007 Nuveen Investments Maryland and Virginia Municipal Closed-End Funds NMY, NFM, NZR, NWI, NPV, NGB, NNB Portfolio Manager's COMMENTS Portfolio manager Cathryn Steeves discusses key investment strategies and the six-month performance of these seven Funds. Cathryn, who joined Nuveen in 1996, assumed portfolio management responsibility for the Maryland and Virginia Funds in July 2006. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD? As the yield curve flattened during this six-month period, we continued to emphasize careful management of the Funds' underlying portfolios in line with our established targets. This included a disciplined approach to duration1 management and yield curve positioning. In selecting new additions for our portfolios, our purchase activity focused mainly on attractively priced bonds in the longer range of the yield curve. We believed that bonds in this part of the curve generally offered better value and reward opportunities more commensurate with their risk levels. To help us maintain the Funds' durations within our preferred strategic range, we were also selectively selling holdings with shorter durations. In all of the Maryland Funds, we used inverse floaters, a type of derivative financial instrument, to lengthen their durations. Our objective was to manage the durations (and price sensitivity) of these Funds without having a negative impact on their income streams or common share dividends over the short term. In addition, NWI, whose duration was on the longer end of our target range used a forward swap to shorten the duration. In the Maryland Funds, we purchased single family housing bonds, which we thought generally had good supply and attractive prices. At the same time, we continued to maintain the Funds' weightings of lower-quality bonds. While these types of bonds performed well over this period, we generally found fewer attractive lower quality opportunities in the market place. 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 4 HOW DID THE FUNDS PERFORM? Individual results for these Nuveen Maryland and Virginia Funds, as well as relevant benchmark and peer group information, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 11/30/06 6-MONTH 1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------------------- MARYLAND FUNDS - -------------------------------------------------------------------------------- NMY 6.28% 7.98% 7.46% 6.62% - -------------------------------------------------------------------------------- NFM 6.10% 7.97% 7.28% NA - -------------------------------------------------------------------------------- NZR 5.93% 7.23% 7.54% NA - -------------------------------------------------------------------------------- NWI 6.23% 8.05% NA NA - -------------------------------------------------------------------------------- VIRGINIA FUNDS - -------------------------------------------------------------------------------- NPV 5.60% 6.95% 6.92% 6.77% - -------------------------------------------------------------------------------- NGB 5.79% 7.41% 7.87% NA - -------------------------------------------------------------------------------- NNB 5.73% 7.43% 7.82% NA - -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index2 4.53% 6.12% 5.40% 5.75% - -------------------------------------------------------------------------------- Lipper Other States Municipal Debt Funds Average3 5.93% 7.95% 7.29% 6.59% - -------------------------------------------------------------------------------- *Six-month returns are cumulative; returns for one, five and ten years are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. For the six months ended November 30, 2006, the total return on NAV for all the Funds exceeded the average return for the Lehman Brothers Municipal Bond Index. NMY, NFM, NWI outperformed the Lipper Other States peer group, NZR matched while the rest of the Funds trailed this group average. Shareholders should note 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, making direct comparisons less meaningful. 2 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 indexes do not reflect any expenses. 3 The Lipper Other States Municipal Debt Funds category average is calculated using the returns of all closed-end funds in this category for each period as follows: 1 year, 46; 5 years, 27; and 10 years, 18. Fund and Lipper returns assume reinvestment of dividends. 5 As the yield curve continued to flatten over the course of this period, bonds with shorter durations and maturities generally underperformed longer term bonds. As a result, the Funds generally benefited over the six months from their yield curve positioning. The Funds had limited exposure to the shortest maturities, which was a positive, and generally had an emphasis on intermediate duration bonds, which was also favorable. On the other hand, the Funds had limited exposure to the very longest part of the yield curve, which had a slight countervailing negative impact on their six-month performance. With bonds rated BBB or lower and non-rated bonds generally outperforming other credit quality sectors during this period, all of these Funds benefited from their allocations of lower-quality credits. The performance of this sector was largely the result of investor demand for the higher yields typically associated with lower-quality bonds, which drove up their value. As noted, we continued to maintain the Funds' weightings of lower-quality bonds, with allocations to BBB, lower rated bonds and non-rated bonds ranging from 11% in NPV, 16% in NMY, 17% in NNB, 18% in NZR, 19% in NGB, 20% in NFM and 21% in NWI. Another factor in the six-month performance of these Funds, especially relative to that of the unleveraged Lehman Brothers Municipal Bond Index, was their use of financial leverage. While leveraging can add volatility to a Fund's NAV and share price, this strategy can also provide opportunities for additional income and total return for common shareholders. The Funds' leveraging strategy positively impacted their results over this period, although not to the same extent as in the past. 6 HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AS OF NOVEMBER 30, 2006? We continued to believe that maintaining overall strong credit quality was an important technique. As of November 30, 2006, all seven of these Funds continued to offer excellent overall credit quality, with allocations of bonds rated AAA/U.S. guaranteed AA ranging from 65% in NFM, 72% in NWI, 73% in NZR, 75% in NGB, 76% in NMY, 77% in NNB and 84% in NPV. 7 Dividend and Share Price INFORMATION As previously noted, all of the Funds in this report use leverage to potentially enhance opportunities for additional income for common shareholders. While the Fund's leveraging strategy continued to produce incremental income, the extent of this benefit was reduced during this period as short-term interest rates rose, causing the Funds' borrowing costs to rise, reducing some of the benefits of leveraging. The Funds' income streams were also impacted as the proceeds from older, higher-yielding bonds that matured or were called were reinvested into bonds generally offering lower yields, especially in the older Funds. These factors resulted in one monthly dividend reduction in NMY, NFM and NGB over the six-month period ended November 30, 2006. NZR, NWI, NPV and NNB had no changes to their dividends. All of the Funds in this report 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 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, 2006, NMY, NZR, NPV, NGB and NNB had positive UNII balances for financial statement purposes and positive UNII balances, based on our best estimates, for tax purposes. NFM and NWI had negative UNII balances for financial statement purposes and positive UNII balances, based on our best estimates, for tax purposes. At the end of the reporting period, the Funds' share prices were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 11/30/06 12-MONTH AVERAGE PREMIUM/DISCOUNT PREMIUM/DISCOUNT - -------------------------------------------------------------------------------- NMY -2.59% -0.09% - -------------------------------------------------------------------------------- NFM 4.71% 7.36% - -------------------------------------------------------------------------------- NZR 5.64% 5.51% - -------------------------------------------------------------------------------- NWI -2.62% -2.81% - -------------------------------------------------------------------------------- NPV -0.39% 1.59% - -------------------------------------------------------------------------------- NGB 14.91% 11.71% - -------------------------------------------------------------------------------- NNB 5.23% 7.36% - -------------------------------------------------------------------------------- 8 Nuveen Maryland Premium Income Municipal Fund NMY Performance OVERVIEW As of November 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 50% AA 26% A 8% BBB 9% BB or Lower 5% N/R 2% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.062 Jan 0.062 Feb 0.062 Mar 0.062 Apr 0.062 May 0.062 Jun 0.058 Jul 0.058 Aug 0.058 Sep 0.055 Oct 0.055 Nov 0.055 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/01/05 14.4 14.25 14.01 14 14.07 13.96 13.93 13.96 13.75 13.73 13.88 13.94 13.9599 13.8 13.77 13.84 13.95 13.98 14.09 14.11 14.18 14.18 14.16 14.25 14.35 14.48 14.46 14.63 14.7 14.73 14.97 14.74 14.72 14.96 14.96 14.9 15.26 15.1 14.99 14.83 15.05 15.04 15.09 15 14.88 14.9 14.85 14.85 14.91 14.83 14.6799 14.62 14.6 14.61 14.64 14.51 14.65 14.63 14.78 14.76 14.8 14.98 15.05 14.98 15.01 15.1 14.96 14.97 15 15 15.09 14.98 15.16 15.16 15.15 15.21 15.16 15.21 15.29 15.28 15.21 15.27 15.12 15.22 15.24 15.25 15.22 15.2 14.91 14.83 14.71 14.6801 14.95 15 14.85 14.85 14.71 14.8899 14.88 14.81 14.78 14.86 14.9499 14.9499 14.76 14.7501 14.5 14.6799 14.67 14.62 14.52 14.52 14.53 14.54 14.65 14.65 14.67 14.59 14.56 14.6 14.54 14.57 14.5701 14.47 14.42 14.52 14.57 14.6 14.48 14.6001 14.46 14.51 14.56 14.5 14.45 14.28 14.34 14.24 14.2 14.25 14.3 14.38 14.39 14.29 14.41 14.2 14.4 14.65 14.6 14.5 14.5 14.42 14.34 14.38 14.38 14.31 14.22 14.29 14.24 14.2 14.19 14.15 14.32 14.28 14.27 14.3 14.45 14.44 14.6 14.9 14.81 14.76 14.72 14.84 14.7301 14.82 14.65 14.7 14.68 14.72 14.67 14.73 14.8499 14.85 14.86 14.9025 14.9 14.88 14.91 14.93 15.11 14.92 15.1 14.91 14.82 14.69 14.66 14.75 14.78 14.8 14.78 14.65 14.67 14.59 14.6 14.74 14.74 14.58 14.75 14.66 14.61 14.61 14.6 14.68 14.64 14.6 14.64 14.58 14.4 14.33 14.38 14.31 14.34 14.5 14.41 14.42 14.31 14.31 14.29 14.32 14.44 14.47 14.4 14.39 14.6 14.66 14.61 14.63 14.63 14.6 14.59 14.66 14.58 14.5 14.5 14.56 14.59 14.63 14.53 14.6 14.7 14.63 14.61 14.6 11/30/06 14.64 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.64 - ------------------------------------ Common Share Net Asset Value $15.03 - ------------------------------------ Premium/(Discount) to NAV -2.59% - ------------------------------------ Market Yield 4.51% - ------------------------------------ Taxable-Equivalent Yield1 6.58% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $159,856 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.01 - ------------------------------------ Leverage-Adjusted Duration 8.21 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 3.18% 6.28% - ------------------------------------ 1-Year 6.54% 7.98% - ------------------------------------ 5-Year 4.37% 7.46% - ------------------------------------ 10-Year 6.63% 6.62% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 23.2% - ------------------------------------ Health Care 16.7% - ------------------------------------ Education and Civic Organizations 14.8% - ------------------------------------ U.S. Guaranteed 13.5% - ------------------------------------ Tax Obligation/Limited 11.7% - ------------------------------------ Housing/Multifamily 9.0% - ------------------------------------ Other 11.1% - ------------------------------------ 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 31.5%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.0314 per share. 9 Nuveen Maryland Dividend Advantage Municipal Fund NFM Performance OVERVIEW As of November 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 45% AA 20% A 15% BBB 13% BB or Lower 2% N/R 5% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec .0715 Jan .0715 Feb .0715 Mar .068 Apr .068 May .068 Jun .0645 Jul .0645 Aug .0645 Sep .0615 Oct .0615 Nov .0615 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/01/05 15 14.93 14.8 14.7 14.92 14.92 14.85 14.71 14.75 14.7 14.6901 14.6901 14.85 15.14 15.5 15.16 15 15.2799 15.42 15.5 15.25 15.25 15.17 15.7 15.65 15.7 15.78 15.85 15.73 15.9 16 15.95 15.75 16.1 15.95 16.04 15.95 15.9 15.8501 16.17 16.5 16.49 16.45 16.42 16.39 16.5 16.35 16.4999 16.77 16.7 16.7001 16.77 16.99 16.73 16.67 16.69 16.8 16.72 16.75 16.72 17 16.86 17 16.67 16.67 16.55 16.6 16.6 16.73 16.85 16.8 16.8 16.87 17.0899 16.6 16.35 16.15 16.15 16.05 16.3 16.36 16.36 16.25 16.05 16.05 16.15 16.2 15.9 15.9 15.65 15.6 15.7 15.65 15.9 15.95 15.95 15.65 16 15.9 15.75 15.8 15.81 15.83 15.83 15.8199 15.83 15.75 15.9 15.85 15.95 15.98 15.9 15.5 15.46 15.35 15.29 15.39 15.26 15.33 15.33 15.23 15.2 15.33 15.21 15.27 15.19 15.44 15.52 15.45 15.4501 15.21 15.1 15.19 15.25 15.27 15.18 15.35 15.2 15.33 15.36 15.43 15.3801 15.3801 15.5 15.39 15.69 15.69 15.7 15.94 15.89 15.89 15.91 16.03 16.02 16.02 15.8 15.6 15.6 15.5 15.65 15.55 15.62 15.71 15.58 15.58 15.65 15.61 15.61 15.75 15.84 15.79 15.8 15.6 15.6 15.62 15.7 15.62 15.48 15.85 15.85 15.7 15.5 15.48 15.55 15.79 15.89 15.88 15.88 15.99 16.08 15.95 16.2 16.15 16.1 16.18 16.13 16.15 16.1 15.9 15.92 15.92 15.99 15.99 16.1 16.1 16.15 15.9616 15.8 15.62 15.91 15.85 15.85 15.89 15.9 15.8 15.75 15.79 15.6 15.494 15.45 15.47 15.47 15.47 15.52 15.52 15.56 15.56 15.54 15.6 15.6 15.68 15.6207 15.73 15.72 15.72 15.6875 15.73 15.66 15.75 15.84 15.66 15.55 15.65 15.66 15.71 15.71 15.78 15.88 15.66 15.56 15.59 15.6 15.6 15.6 11/30/06 15.78 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.78 - ------------------------------------ Common Share Net Asset Value $15.07 - ------------------------------------ Premium/(Discount) to NAV 4.71% - ------------------------------------ Market Yield 4.68% - ------------------------------------ Taxable-Equivalent Yield1 6.83% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $62,925 - ------------------------------------ Average Effective Maturity on Securities (Years) 18.49 - ------------------------------------ Leverage-Adjusted Duration 7.21 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 6.38% 6.10% - ------------------------------------ 1-Year 12.31% 7.97% - ------------------------------------ 5-Year 6.44% 7.28% - ------------------------------------ Since Inception 6.49% 6.88% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Health Care 20.4% - ------------------------------------ Tax Obligation/General 17.1% - ------------------------------------ U.S. Guaranteed 16.3% - ------------------------------------ Housing/Multifamily 12.6% - ------------------------------------ Tax Obligation/Limited 10.9% - ------------------------------------ Education and Civic Organizations 10.3% - ------------------------------------ Other 12.4% - ------------------------------------ 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%. When comparing this Fund to 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, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 47% AA 26% A 9% BBB 10% BB or Lower 3% N/R 5% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.0695 Jan 0.0695 Feb 0.0695 Mar 0.066 Apr 0.066 May 0.066 Jun 0.064 Jul 0.064 Aug 0.064 Sep 0.064 Oct 0.064 Nov 0.064 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/01/05 15.97 15.63 15.68 15.51 15.65 15.53 15.52 15.59 15.66 16 16.05 16.0601 16.05 16.05 16.3 16.24 16.08 16.34 16.37 16.22 16.33 16.33 16.38 16.19 16.28 16.42 16.42 16.55 16.55 16.5 16.5 16.3336 16.5 16.23 16.14 16.21 16.15 16.05 16.15 15.95 16.2 16.05 16.5 16.6 16.48 16.5 16.15 16.45 16.8 16.5 16.311 16.43 16.6 16.69 16.52 16.42 16.35 16.15 16.25 16.2 16.39 16.65 16.8 16.67 16.3 16.3 16.3 16.05 15.92 15.9 16.2 16.05 15.84 15.84 15.65 15.4 15.2 15.2 14.95 14.99 15.03 14.93 14.92 15.05 15.28 15.15 15.12 15.3 15.12 15.3 15.13 15.4 15.38 15.41 15.36 15.26 14.95 15 15.03 15.23 15.05 14.9 15.15 15.15 14.9499 14.9799 14.7 14.88 14.9 15 15.12 15.17 15.23 15.2001 15.15 15 14.97 15.02 14.95 15.05 14.95 14.98 14.94 14.9 14.98 14.76 15.02 15.15 15 15 14.9 14.99 15.07 14.87 14.9 15.02 15.45 15.35 15.25 15.05 14.9301 14.8 15.04 15.25 15.39 15.65 15.6 15.8 16.3 16.15 16.14 16.14 16.17 16.16 16.11 15.99 15.95 15.87 15.6 15.56 15.56 15.62 15.89 15.85 15.85 15.66 15.66 15.52 15.52 15.73 15.75 15.7801 15.8 15.83 15.8 15.8 15.63 15.7376 15.73 15.7 15.65 15.6 15.6 15.78 15.62 15.68 15.9 15.85 15.7136 15.8 15.8 15.85 15.89 15.68 15.67 15.72 15.82 15.72 15.72 15.85 15.8 15.6 15.62 15.6 15.65 15.92 15.95 15.96 15.95 16.04 16.13 16.13 16.15 16.25 15.82 15.6 15.76 15.79 15.7 15.64 15.72 15.74 15.79 15.65 15.65 15.8 15.83 15.43 15.48 15.55 15.7 15.7 15.89 16.06 16.15 16.28 16.15 16.46 16.3 16.35 16.16 16.32 16.32 16.22 16.15 16.02 15.9 15.83 16.03 15.91 15.8 15.71 15.75 16 11/30/06 16.1 FUND SNAPSHOT - ------------------------------------ Common Share Price $16.10 - ------------------------------------ Common Share Net Asset Value $15.24 - ------------------------------------ Premium/(Discount) to NAV 5.64% - ------------------------------------ Market Yield 4.77% - ------------------------------------ Taxable-Equivalent Yield1 6.96% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $63,790 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.52 - ------------------------------------ Leverage-Adjusted Duration 7.64 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 11.72% 5.93% - ------------------------------------ 1-Year 7.81% 7.23% - ------------------------------------ 5-Year 7.17% 7.54% - ------------------------------------ Since Inception 7.08% 7.01% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 23.7% - ------------------------------------ Health Care 16.1% - ------------------------------------ U.S. Guaranteed 15.0% - ------------------------------------ Education and Civic Organizations 13.6% - ------------------------------------ Tax Obligation/Limited 11.2% - ------------------------------------ Housing/Multifamily 6.3% - ------------------------------------ Other 14.1% - ------------------------------------ 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 31.5%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.0276 per share. 11 Nuveen Maryland Dividend Advantage Municipal Fund 3 NWI Performance OVERVIEW As of November 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 40% AA 32% A 7% BBB 13% BB or Lower 3% N/R 5% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0595 Jan 0.0595 Feb 0.0595 Mar 0.0595 Apr 0.0595 May 0.0595 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.0555 Oct 0.0555 Nov 0.0555 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/01/05 13.84 14.01 13.84 13.85 14.05 14.15 14.11 13.75 13.6 13.55 13.59 13.56 13.56 13.57 13.7 13.73 13.76 13.7901 13.979 14 14.35 14.35 14.34 14.11 14.2 14.29 14.1 14.27 14.2 14.31 14.35 14.1901 14.09 14.19 14.35 14.3 14.18 14.35 14.62 14.39 14.53 14.45 14.34 14.29 14.27 14.22 14.19 14.15 14.13 14.24 14.43 14.5799 14.24 14.45 14.56 14.39 14.65 14.34 14.65 14.55 14.6 14.35 14.36 13.98 14 14.2001 14.51 14.4 14.15 14.38 14.54 14.51 14.65 14.4 14.4 14.04 14.01 14.02 14 14.07 14 14.04 13.96 14.0699 14 14.08 14.55 14.38 14.08 13.99 13.9 13.9 14.1 14.2 14.2 14.25 14.3 14.3 14.24 14.1101 13.98 14.14 14.4 14.4 14.4 13.98 14 13.95 13.95 13.93 13.93 13.98 13.98 13.91 13.8 14 13.82 13.7 13.7 13.7 13.64 13.76 13.78 13.81 13.77 13.8501 14.04 14.13 14.16 14.01 13.92 13.86 13.8701 13.86 13.65 13.52 13.48 13.45 13.5 13.46 13.39 13.27 13.37 13.37 13.39 13.3 13.43 13.4 13.51 13.53 13.5 13.63 13.67 13.54 13.5 13.51 13.5 13.4501 13.23 13.46 13.35 13.44 13.66 13.7 13.69 13.65 13.8 13.78 13.99 14 14 13.98 13.89 14.02 13.9501 13.9 13.8401 13.74 13.79 13.89 13.99 14.05 14.1 14.05 13.95 13.85 14 13.89 13.89 14.11 14.35 14.31 14.15 13.97 14.24 13.92 13.89 14.08 14.17 14.15 14.22 14.14 14.03 14 13.96 14.066 14.07 14.19 14.24 14.25 14.32 14.32 14.39 14.38 14.38 14.26 14.3 14.25 14.33 14.38 14.5 14.5 14.31 14.31 14.16 14.15 14.1 14.34 14.44 14.38 14.34 14.56 14.55 14.55 14.55 14.46 14.45 14.66 14.45 14.55 14.8 14.59 14.53 14.51 14.8 14.64 14.64 14.58 14.46 14.44 14.48 14.5 14.4401 14.48 11/30/06 14.49 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.49 - ------------------------------------ Common Share Net Asset Value $14.88 - ------------------------------------ Premium/(Discount) to NAV -2.62% - ------------------------------------ Market Yield 4.60% - ------------------------------------ Taxable-Equivalent Yield1 6.72% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $79,744 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.60 - ------------------------------------ Leverage-Adjusted Duration 8.20 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 7.10% 6.23% - ------------------------------------ 1-Year 8.80% 8.05% - ------------------------------------ Since Inception 4.45% 6.17% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 21.1% - ------------------------------------ Tax Obligation/General 15.6% - ------------------------------------ Health Care 14.5% - ------------------------------------ U.S. Guaranteed 13.3% - ------------------------------------ Education and Civic Organizations 10.5% - ------------------------------------ Housing/Multifamily 9.8% - ------------------------------------ Utilities 4.7% - ------------------------------------ Other 10.5% - ------------------------------------ 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 31.5%. When comparing this Fund to 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, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 55% AA 29% A 5% BBB 7% BB or Lower 1% N/R 3% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.0655 Jan 0.0655 Feb 0.0655 Mar 0.062 Apr 0.062 May 0.062 Jun 0.059 Jul 0.059 Aug 0.059 Sep 0.059 Oct 0.059 Nov 0.059 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/01/05 16.28 16.34 16.34 16.29 16.06 16.09 16.01 16.17 15.8 15.65 15.82 15.76 15.54 15.22 15.22 15.26 15.37 15.75 15.8 15.9 15.97 15.97 15.98 16.18 15.93 15.85 16.14 16.09 15.6 15.7499 15.76 15.78 15.79 16.05 16 15.85 16.1 16.27 16.4 16.5 16.1 15.9 15.8 15.76 15.61 15.51 15.57 15.55 15.71 15.75 15.76 15.95 16.08 16.11 15.66 15.86 15.76 15.95 16.18 16.15 16.4 16.5 16.3 15.8 15.83 15.72 15.4 15.45 15.75 15.75 16.15 16.19 16.18 16 15.85 16.14 15.54 15.5 15.5 15.41 15.5 15.41 15.41 15.44 15.27 15.5 15.55 15.48 15.19 15.35 15.1 14.95 15.05 14.9001 15.21 15.28 15.27 15.5 15.39 15.6 15.75 15.65 15.3 15.3 15.51 15.87 15.78 15.35 15.37 15.1 15.19 15.11 14.91 14.99 15.11 15.12 14.9 15.15 14.98 14.92 14.85 15.1 15.1 15.19 15.05 14.91 15 15 14.81 14.83 14.83 14.82 14.84 14.88 14.69 14.53 14.51 14.49 14.5 14.53 14.5 14.38 14.24 14.26 14.34 14.29 14.29 14.3 14.45 14.69 14.39 14.48 14.5 14.54 14.35 14.42 14.41 14.31 14.42 14.35 14.46 14.59 14.65 14.62 14.67 14.7399 14.7 14.8 15.02 14.97 14.8 14.94 14.96 15.07 14.968 14.926 14.9 15 14.92 14.82 14.99 14.82 14.78 14.82 14.8 14.8099 14.7101 14.76 14.84 14.88 14.84 14.91 14.89 14.8 14.7 14.89 14.89 14.9 14.94 14.9499 14.91 14.99 15.12 14.97 15.02 15.08 15.3001 15.47 15.36 15.5 15.51 15.51 15.49 15.56 15.5 15.53 15.47 15.52 15.52 15.5 15.5 15.29 15.58 15.41 15.47 15.3699 15.28 15.44 15.29 15.45 15.5 15.41 15.27 15.09 15.22 15.2 15.13 15.08 15.12 15.0801 15.05 15.14 15.1 15.16 15.16 15.21 15.19 15.16 15.13 15.2 15.2 15.12 15.2 15.15 11/30/06 15.3 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.30 - ------------------------------------ Common Share Net Asset Value $15.36 - ------------------------------------ Premium/(Discount) to NAV -0.39% - ------------------------------------ Market Yield 4.63% - ------------------------------------ Taxable-Equivalent Yield1 6.81% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $136,964 - ------------------------------------ Average Effective Maturity on Securities (Years) 14.71 - ------------------------------------ Leverage-Adjusted Duration 7.30 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 5.06% 5.60% - ------------------------------------ 1-Year 1.20% 6.95% - ------------------------------------ 5-Year 4.87% 6.92% - ------------------------------------ 10-Year 6.74% 6.77% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 19.6% - ------------------------------------ Tax Obligation/General 18.0% - ------------------------------------ U.S. Guaranteed 13.1% - ------------------------------------ Health Care 11.6% - ------------------------------------ Transportation 9.0% - ------------------------------------ Utilities 7.9% - ------------------------------------ Education and Civic Organizations 4.8% - ------------------------------------ Water and Sewer 4.6% - ------------------------------------ Other 11.4% - ------------------------------------ 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 32%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.2431 per share. 13 Nuveen Virginia Dividend Advantage Municipal Fund NGB Performance OVERVIEW As of November 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 49% AA 26% A 6% BBB 8% BB or Lower 3% N/R 8% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.072 Jan 0.072 Feb 0.072 Mar 0.072 Apr 0.072 May 0.072 Jun 0.0685 Jul 0.0685 Aug 0.0685 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. 12/01/05 15.8 16.27 16.26 16.55 16.05 15.9 15.98 15.95 15.79 16 15.9901 15.65 15.84 16.05 16.04 16 16 16 16.15 16.25 16.3 16.3 16.35 16.52 16.75 16.55 17 16.99 17 17 17 17.17 17.55 17.55 17.74 17.75 17.65 17.8801 17.86 17.95 18 18 17.92 17.35 17.2 17.1 17.41 17.45 17.4 17.11 17.3 17.3 17.3 17.339 16.83 16.73 16.69 16.95 17 17.3 17.3 17.25 17.45 17.19 17.19 17.19 17.24 17 17.01 17.05 17.29 17.29 17.4 17.5 17.6744 17.75 17.16 17.16 16.75 16.95 17.09 17.09 16.8 16.9 17.16 17.27 17.28 17.28 17.27 17.43 17.43 17.3 17.12 17.12 16.96 16.88 16.95 17.2 17.04 17.13 17.06 17.2 17.25 17.25 17.4 17.66 17.8 17.61 17.51 17.55 17.35 17.35 17.4 17.4 17.25 17.25 17.25 17.12 17.45 17.55 17.55 17.05 17.07 17.05 17.1 17.1 17.18 17.34 17.21 17.34 17.15 17.07 17.3 17.2 17.1 17.18 17.18 16.99 16.78 16.78 16.75 16.75 16.74 16.7 16.61 16.7 16.77 16.77 16.8 16.93 16.56 16.19 16.24 16.25 16.31 16.35 16.05 15.9 15.92 16.1 16.1 15.88 15.96 15.96 15.95 15.96 15.96 15.96 15.96 15.95 16 16.08 16.17 16.1 16.3 16.2 16.25 16.35 16.61 16.59 16.59 16.59 16.8 16.71 16.71 16.71 17 17 17.07 17.07 17.17 17.17 17.05 16.55 16.55 16.73 16.52 16.52 16.5 16.5 16.53 16.53 16.47 16.44 16.33 16.3999 16.28 16.3 16.39 16.5 16.7 16.7 16.76 16.7801 16.8 16.8012 16.75 16.75 16.8 16.8 16.8 16.65 16.65 16.6454 16.7093 16.7093 16.6 16.6 16.6 16.5611 16.52 16.63 16.5 16.51 16.54 16.8 16.75 16.75 16.8 16.8 16.8 16.75 16.75 16.75 16.55 16.68 16.62 16.69 16.75 16.79 16.84 16.93 17.45 17.4 11/30/06 17.65 FUND SNAPSHOT - ------------------------------------ Common Share Price $17.65 - ------------------------------------ Common Share Net Asset Value $15.36 - ------------------------------------ Premium/(Discount) to NAV 14.91% - ------------------------------------ Market Yield 4.45% - ------------------------------------ Taxable-Equivalent Yield1 6.54% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $48,052 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.47 - ------------------------------------ Leverage-Adjusted Duration 7.38 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 5.71% 5.79% - ------------------------------------ 1-Year 19.74% 7.41% - ------------------------------------ 5-Year 8.43% 7.87% - ------------------------------------ Since Inception 8.42% 7.27% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 19.4% - ------------------------------------ Transportation 16.2% - ------------------------------------ Tax Obligation/Limited 16.0% - ------------------------------------ U.S. Guaranteed 11.3% - ------------------------------------ Education and Civic Organizations 8.1% - ------------------------------------ Health Care 7.3% - ------------------------------------ Long-Term Care 6.9% - ------------------------------------ Other 14.8% - ------------------------------------ 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 32%. When comparing this Fund to 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, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 48% AA 29% A 6% BBB 8% BB or Lower 2% N/R 7% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.0715 Jan 0.0715 Feb 0.0715 Mar 0.068 Apr 0.068 May 0.068 Jun 0.065 Jul 0.065 Aug 0.065 Sep 0.065 Oct 0.065 Nov 0.065 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/01/05 16 16.14 16.46 16.5 16.44 16.6 16.62 16.55 16.5 16.5 16.26 16.09 16.09 16.25 16.26 16.39 16.39 16.6 16.63 16.65 16.64 16.64 16.95 17.4 17.25 16.9 17.07 17 16.9 16.81 16.8 16.8 16.85 16.7 16.9 16.8 17 17.01 16.9 16.89 16.89 17.15 17.3 17.27 16.9 17.15 17.35 17.37 17.11 17.25 17.05 17.05 17.05 17 17 17.05 16.91 16.95 17.15 17 16.91 16.85 16.55 16.4 16.4 16.6 16.45 16.49 16.94 16.94 17.09 17.09 17.11 16.75 16.46 16.55 16.11 16.12 16.5 16.49 16.46 16.75 16.65 16.85 16.75 17.04 17.04 17.04 17.18 16.88 16.6 16.21 16.201 16.182 16.05 16.02 16.1 16 15.75 15.91 15.94 15.94 15.97 15.97 15.95 16.1 16.15 16.3 16.15 16.22 16.45 16.35 16.45 16.4 16.42 16.21 16.3 16.38 16.1601 16.15 16.15 16.3 16.45 16.4 16.13 16.4 16.45 16.66 16.6 16.1 15.96 16.02 16 15.98 15.84 16 15.9401 15.9 15.95 15.85 15.8 15.5 15.7 15.79 15.6 15.73 15.85 15.76 15.94 16.15 16.11 16.05 15.9501 15.83 15.72 15.9 15.9 15.8 15.95 15.85 15.95 15.85 15.95 15.75 15.7 15.82 15.74 15.66 15.79 15.65 15.79 15.79 15.79 15.75 15.79 15.8 15.8399 15.8399 15.82 15.77 15.8 15.78 15.8 15.85 15.98 16.03 15.9301 15.99 16.06 16 16.0801 16.09 16.1 15.82 15.9 16.14 16.09 16 16 15.99 15.85 15.95 15.87 15.71 15.78 15.88 15.9 15.93 15.95 15.99 16.08 16.08 16.11 16.2 16.2 16.15 15.9713 15.94 15.97 15.9 15.94 15.85 15.8 15.84 15.85 15.88 15.87 15.85 15.7501 15.95 15.91 16.06 16.06 16.14 16.08 16.19 16.25 16.34 16.3 16.28 16.15 16.1 16.0101 16.19 16.35 16.28 16.26 16.3 16.53 16.45 16.41 16.25 16.36 16.16 11/30/06 16.29 FUND SNAPSHOT - ------------------------------------ Common Share Price $16.29 - ------------------------------------ Common Share Net Asset Value $15.48 - ------------------------------------ Premium/(Discount) to NAV 5.23% - ------------------------------------ Market Yield 4.79% - ------------------------------------ Taxable-Equivalent Yield1 7.04% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $88,611 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.61 - ------------------------------------ Leverage-Adjusted Duration 7.47 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 1.77% 5.73% - ------------------------------------ 1-Year 7.59% 7.43% - ------------------------------------ 5-Year 7.52% 7.82% - ------------------------------------ Since Inception 7.48% 7.69% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 23.0% - ------------------------------------ Tax Obligation/Limited 13.8% - ------------------------------------ Health Care 11.9% - ------------------------------------ U.S. Guaranteed 11.5% - ------------------------------------ Water and Sewer 10.3% - ------------------------------------ Housing/Single Family 6.4% - ------------------------------------ Long-Term Care 6.2% - ------------------------------------ Education and Civic Organizations 5.1% - ------------------------------------ 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 32%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.0666 per share. 15 Shareholder MEETING REPORT The shareholder meeting was held in the offices of Nuveen Investments on November 14, 2006. 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 9,927,423 -- 3,999,696 -- 4,108,086 -- Withhold 115,361 -- 45,542 -- 34,707 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== Lawrence H. Brown For 9,922,483 -- 3,998,526 -- 4,108,286 -- Withhold 120,301 -- 46,712 -- 34,507 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== Jack B. Evans For 9,910,907 -- 3,996,507 -- 4,108,286 -- Withhold 131,877 -- 48,731 -- 34,507 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== William C. Hunter For 9,923,082 -- 3,988,502 -- 4,108,086 -- Withhold 119,702 -- 56,736 -- 34,707 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== David J. Kundert For 9,923,440 -- 3,997,007 -- 4,108,086 -- Withhold 119,344 -- 48,231 -- 34,707 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== William J. Schneider For -- 3,106 -- 1,254 -- 1,261 Withhold -- -- -- 1 -- 8 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,106 -- 1,255 -- 1,269 ==================================================================================================================================== Timothy R. Schwertfeger For -- 3,106 -- 1,254 -- 1,261 Withhold -- -- -- 1 -- 8 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,106 -- 1,255 -- 1,269 ==================================================================================================================================== Judith M. Stockdale For 9,927,417 -- 3,999,196 -- 4,108,086 -- Withhold 115,367 -- 46,042 -- 34,707 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== Eugene S. Sunshine For 9,912,244 -- 3,988,502 -- 4,108,086 -- Withhold 130,540 -- 56,736 -- 34,707 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,042,784 -- 4,045,238 -- 4,142,793 -- ==================================================================================================================================== 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 5,248,023 -- 7,792,179 -- 2,751,798 -- Withhold 35,764 -- 68,668 -- 23,463 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== Lawrence H. Brown For 5,243,023 -- 7,782,045 -- 2,748,919 -- Withhold 40,764 -- 78,802 -- 26,342 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== Jack B. Evans For 5,243,833 -- 7,793,413 -- 2,750,744 -- Withhold 39,954 -- 67,434 -- 24,517 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== William C. Hunter For 5,250,033 -- 7,793,413 -- 2,750,744 -- Withhold 33,754 -- 67,434 -- 24,517 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== David J. Kundert For 5,249,733 -- 7,795,467 -- 2,750,544 -- Withhold 34,054 -- 65,380 -- 24,717 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== William J. Schneider For -- 1,536 -- 1,994 -- 774 Withhold -- -- -- 51 -- 40 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,536 -- 2,045 -- 814 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,536 -- 1,994 -- 774 Withhold -- -- -- 51 -- 40 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,536 -- 2,045 -- 814 ==================================================================================================================================== Judith M. Stockdale For 5,250,333 -- 7,797,467 -- 2,752,244 -- Withhold 33,454 -- 63,380 -- 23,017 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== Eugene S. Sunshine For 5,248,533 -- 7,791,213 -- 2,750,544 -- Withhold 35,254 -- 69,634 -- 24,717 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,283,787 -- 7,860,847 -- 2,775,261 -- ==================================================================================================================================== 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 5,184,088 -- Withhold 29,233 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== Lawrence H. Brown For 5,175,343 -- Withhold 37,978 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== Jack B. Evans For 5,180,368 -- Withhold 32,953 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== William C. Hunter For 5,181,938 -- Withhold 31,383 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== David J. Kundert For 5,183,079 -- Withhold 30,242 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== William J. Schneider For -- 1,339 Withhold -- 44 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,383 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,338 Withhold -- 45 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,383 ==================================================================================================================================== Judith M. Stockdale For 5,182,048 -- Withhold 31,273 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== Eugene S. Sunshine For 5,183,749 -- Withhold 29,572 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,213,321 -- ==================================================================================================================================== 18 Nuveen Maryland Premium Income Municipal Fund (NMY) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 1.4% (1.0% OF TOTAL INVESTMENTS) $ 2,100 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA $ 2,312,814 Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.0% (1.4% OF TOTAL INVESTMENTS) 3,075 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 3,240,497 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 22.1% (14.8% OF TOTAL INVESTMENTS) 1,250 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 1,353,775 Bonds, Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 200 5.750%, 9/01/25 3/10 at 101.00 BBB- 209,758 200 5.800%, 9/01/30 3/10 at 101.00 BBB- 209,996 1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 1,072,170 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 Maryland Economic Development Corporation, Utility Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001: 1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,074,830 1,000 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,074,830 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 799,260 500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 532,840 1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,319,838 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,460 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,539,351 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.625%, 6/01/36 1,500 Maryland Health and Higher Educational Facilities Authority, 7/07 at 102.00 AA 1,546,080 Revenue Refunding Bonds, Johns Hopkins University, Series 1997, 5.625%, 7/01/27 1,365 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 1,479,182 Revenue Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/19 9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call AAA 11,670,808 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: 4,000 5.000%, 4/01/15 4/13 at 100.00 AA 4,316,920 2,680 5.000%, 4/01/19 4/13 at 100.00 AA 2,880,544 1,685 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 1,847,400 Bonds, Series 2006A, 5.000%, 10/01/22 Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel College, Series 2006: 1,400 5.000%, 11/01/31 11/16 at 100.00 BBB+ 1,485,960 850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 853,689 - ------------------------------------------------------------------------------------------------------------------------------------ 31,535 Total Education and Civic Organizations 35,267,231 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.9% (16.7% OF TOTAL INVESTMENTS) 1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,648,998 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 3,515,298 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, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA $ 1,749,049 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,459,234 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,548,585 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,028,080 Revenue Bonds, Johns Hopkins Hospital, Howard County General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - MBIA Insured 2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,092,480 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 4,033,244 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 2,040 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 2,156,668 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 1,882,895 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,497,618 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A 1,650,765 Revenue Bonds, University of Maryland Medical System, Series 2002, 6.000%, 7/01/22 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,065,710 Revenue Bonds, University of Maryland Medical System, Series 2004B, 5.000%, 7/01/24 - AMBAC Insured 4,200 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 4,517,709 Revenue Bonds, Western Maryland Health, Series 2006A, 5.000%, 7/01/34 - MBIA Insured (UB) Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 3,080 5.375%, 7/01/14 1/07 at 100.00 B3 2,848,784 6,000 5.300%, 7/01/24 1/07 at 100.00 B3 5,167,080 - ------------------------------------------------------------------------------------------------------------------------------------ 38,960 Total Health Care 39,862,197 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 13.4% (9.0% OF TOTAL INVESTMENTS) 1,450 Maryland Community Development Administration, FNMA 2/11 at 101.00 Aaa 1,532,940 Multifamily Development Revenue Bonds, Edgewater Village Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative Minimum Tax) 2,500 Maryland Community Development Administration, Housing 1/09 at 101.00 Aa2 2,560,675 Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 919,362 Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax) 1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B1 1,008,940 Student Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,047,800 Housing Revenue Bonds, Collegiate Housing Foundation - Salisbury State University, Series 1999A, 6.000%, 6/01/19 1,145 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 1,234,310 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 3,830 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 3,912,690 Maryland, FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30 360 Montgomery County Housing Opportunities Commission, 1/07 at 101.00 Aa2 363,996 Maryland, GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series 1995A, 5.900%, 7/01/15 1,500 Montgomery County Housing Opportunities Commission, 1/07 at 102.00 Aaa 1,531,710 Maryland, Multifamily Housing Development Bonds, Series 1996B, 5.900%, 7/01/26 2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,111,900 Maryland, Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 540 Prince George's County Housing Authority, Maryland, 9/09 at 102.00 AAA $ 568,798 GNMA Collateralized Mortgage Revenue Bonds, University Landing Apartments, Series 1999, 6.100%, 3/20/41 (Alternative Minimum Tax) 860 Prince George's County Housing Authority, Maryland, GNMA 5/07 at 100.00 AAA 860,714 Collateralized Mortgage Revenue Refunding Bonds, Foxglenn Apartments, Series 1998A, 5.450%, 11/20/14 (Alternative Minimum Tax) Prince George's County Housing Authority, Maryland, GNMA Collateralized Mortgage Revenue Refunding Bonds, Overlook Apartments, Series 1995A: 2,000 5.700%, 12/20/15 12/06 at 101.00 AAA 2,022,680 1,670 5.750%, 12/20/19 12/06 at 101.00 AAA 1,688,804 - ------------------------------------------------------------------------------------------------------------------------------------ 20,735 Total Housing/Multifamily 21,365,319 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.1% (3.4% OF TOTAL INVESTMENTS) 1,195 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 1,234,865 of Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 4,100 Maryland Community Development Administration, Department 3/16 at 100.00 Aa2 4,235,423 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Mandatory put 9/13/24) (Alternative Minimum Tax) 1,630 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 1,682,339 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 613,110 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) 15 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 15,582 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax) 320 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 322,429 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,860 Total Housing/Single Family 8,103,748 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.7% (0.4% OF TOTAL INVESTMENTS) 1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA 1/09 at 101.00 AA 1,044,760 Obligated Group, Series 1999A, 5.625%, 1/01/25 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 34.6% (23.2% OF TOTAL INVESTMENTS) 2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AA+ 2,213,065 Series 2004, 5.000%, 4/01/16 Anne Arundel County, Maryland, General Obligation Bonds, Series 2006: 1,310 5.000%, 3/01/21 3/16 at 100.00 AA+ 1,436,415 1,000 5.000%, 3/01/21 3/16 at 100.00 AA+ 1,096,500 685 Anne Arundel County, Maryland, Water and Sewer Revenue 3/16 at 100.00 AA+ 758,274 Bonds, Series 2006, 5.000%, 3/01/17 Baltimore County, Maryland, Metropolitan District Special Assessment Bonds, 67th Issue: 2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,643,125 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,695,895 1,000 Baltimore, Maryland, Consolidated General Obligation No Opt. Call A+ 1,064,840 Public Improvement Bonds, Series 1989B, 7.150%, 10/15/08 1,540 Baltimore, Maryland, General Obligation Consolidated 10/14 at 100.00 AAA 1,667,420 Public Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured 700 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 773,486 Bonds, Series 2005A, 5.000%, 12/01/16 Charles County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2006: 2,185 5.000%, 3/01/14 No Opt. Call AA 2,390,587 820 5.000%, 3/01/16 No Opt. Call AA 909,077 1,500 Frederick County, Maryland, General Obligation Public No Opt. Call AA 1,702,710 Facilities Bonds, Series 2006, 5.000%, 11/01/20 615 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 663,800 Villages of Lake Linganore Community Development Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 21 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2004B: $ 735 5.000%, 8/15/16 2/14 at 100.00 AAA $ 801,393 1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,767,464 1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,278,471 1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 1,861,103 Bonds, Series 2002A, 5.250%, 8/15/18 1,190 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,290,258 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 2,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 2,757,175 5.000%, 8/01/17 3,520 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 3,901,674 Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 Montgomery County, Maryland, Consolidated General Obligation Public Improvement Refunding Bonds, Series 2001: 1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,899,870 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,159,700 925 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 979,177 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,084,960 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+ 2,027,640 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+ 6,231,773 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/18 Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005: 2,000 5.000%, 6/01/16 6/15 at 100.00 AAA 2,209,240 1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,346,039 1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,344,162 1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,342,284 - ------------------------------------------------------------------------------------------------------------------------------------ 51,010 Total Tax Obligation/General 55,297,577 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.4% (11.7% 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+ 1,622,940 1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,076,910 2,900 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 3,144,557 5.000%, 7/01/31 - AMBAC Insured 300 Baltimore, Maryland, Special Obligation Bonds, North Locust 9/15 at 101.00 N/R 316,059 Point Project, Series 2005, 5.500%, 9/01/34 900 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 963,252 Town Center Project, Series 2004, 5.750%, 7/01/34 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+ 931,901 925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 985,153 4,250 Maryland Department of Transportation, Consolidated No Opt. Call AA 4,865,995 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,875 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,044,087 Bonds, Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 1,700 Maryland Stadium Authority, Lease Revenue Bonds, 6/13 at 100.00 AA+ 1,811,061 Montgomery County Conference Center Facilities, Series 2003, 5.000%, 6/15/24 2,455 Maryland Stadium Authority, Lease Revenue Bonds, Sports 3/07 at 100.00 AAA 2,468,429 Facilities, Series 1996, 5.750%, 3/01/18 - AMBAC Insured 1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,066,500 Metrorail Garage, Series 2002, 5.000%, 6/01/21 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA $ 729,101 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+ 670,084 Maryland, School System Revenue Bonds, Series 2000, 5.125%, 11/01/15 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,270,562 5.250%, 8/01/21 - FSA Insured 1,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 1,120,540 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,757,280 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 25,590 Total Tax Obligation/Limited 27,844,411 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.1% (1.4% OF TOTAL INVESTMENTS) 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,199,326 System Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/06 at 102.00 CCC+ 2,094,920 American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,135 Total Transportation 3,294,246 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.1% (13.5% OF TOTAL INVESTMENTS) (4) 2,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,670,650 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,241,400 Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA 2,282,160 Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured (ETM) 3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,157,980 Bonds, Series 1999, 5.250%, 7/01/18 (Pre-refunded 7/01/09) 1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA (4) 1,086,290 Bonds, Series 2002, 5.000%, 11/01/22 (Pre-refunded 11/01/12) 2,550 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 2,793,041 and Improvement Bonds, Shady Grove Adventist Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM) 575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 622,357 Refunding Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded 2/15/12) 1,000 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,076,690 Refunding Bonds, Series 2003A, 5.000%, 8/15/22 (Pre-refunded 8/15/12) Maryland Economic Development Corporation, Health and Mental Hygiene Providers Revenue Bonds, Series 1996A: 935 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 1,058,729 710 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 809,556 2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 (4) 2,406,780 Housing Revenue Bonds, Collegiate Housing Foundation - College Park, Series 1999A, 5.750%, 6/01/24 (Pre-refunded 6/01/09) 3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,620,736 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC Insured (ETM) 3,125 Maryland Health and Higher Educational Facilities Authority, 1/07 at 100.00 Aaa 3,179,281 Revenue Bonds, Howard County General Hospital, Series 1993, 5.500%, 7/01/25 (ETM) 760 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 A3 (4) 847,202 Revenue Bonds, University of Maryland Medical System, Series 2000, 6.750%, 7/01/30 (Pre-refunded 7/01/10) 230 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 265,537 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,081,600 Obligation Bonds, Series 2000A, 5.500%, 10/01/20 (ETM) 635 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 663,232 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 23 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) $ 2,223,020 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 29,470 Total U.S. Guaranteed 32,086,241 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.9% (2.6% OF TOTAL INVESTMENTS) 2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 2,519,375 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/14 at 100.00 AAA 3,778,040 Series 2004PP, 5.000%, 7/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total Utilities 6,297,415 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.3% (0.9% OF TOTAL INVESTMENTS) 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA 1,185,260 Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 860 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 953,886 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,905 Total Water and Sewer 2,139,146 - ------------------------------------------------------------------------------------------------------------------------------------ $ 222,375 Total Investments (cost $226,062,934) - 149.0% 238,155,602 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (2,800,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 3,600,609 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.5)% (79,100,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 159,856,211 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 24 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.7% (2.5% OF TOTAL INVESTMENTS) $ 205 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call B- $ 204,541 Motors Corporation, Series 1993, 5.350%, 4/01/08 1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,101,340 Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured 310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 330,931 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue 12/16 at 100.00 N/R 660,491 Bonds, Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 2,165 Total Consumer Discretionary 2,297,303 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.6% (1.7% OF TOTAL INVESTMENTS) 1,535 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,617,614 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.3% (10.3% 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- 487,455 500 5.750%, 9/01/25 3/10 at 101.00 BBB- 524,395 645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 691,550 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,056,720 Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 1,559,490 Educational Facilities Leasehold Mortgage Revenue Bonds, McLean School, Series 2001, 6.000%, 7/01/31 500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 527,935 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 656,581 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 514,587 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 615 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 665,202 Revenue Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/20 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- 220,667 410 5.375%, 2/01/29 2/09 at 101.00 BBB- 420,902 500 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 537,415 Bonds, Series 2003A, 5.000%, 4/01/19 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 877,104 Bonds, Series 2006A, 5.000%, 10/01/22 900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 903,906 McDaniel College, Series 2006, 4.500%, 11/01/36 - ------------------------------------------------------------------------------------------------------------------------------------ 9,150 Total Education and Civic Organizations 9,643,909 - ------------------------------------------------------------------------------------------------------------------------------------ 25 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 30.2% (20.4% OF TOTAL INVESTMENTS) $ 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 1,396,656 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,030,220 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/28 - FSA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 1,028,520 Revenue Bonds, Calvert Memorial Hospital, Series 1998, 5.000%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,097,360 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 787,860 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 521,155 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 671,054 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,302,887 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,327,884 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,061,380 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 618,456 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 753,158 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,053,090 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 2,093,060 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 1,828,597 Revenue Bonds, Western Maryland Health, Series 2006A, 5.000%, 7/01/34 - MBIA Insured (UB) 570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 583,201 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 290 5.375%, 7/01/14 1/07 at 100.00 B3 268,230 700 5.300%, 7/01/24 1/07 at 100.00 B3 602,826 - ------------------------------------------------------------------------------------------------------------------------------------ 18,245 Total Health Care 19,025,594 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 18.6% (12.6% OF TOTAL INVESTMENTS) 750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA 771,307 Refunding Bonds, Cross Creek Apartments, Series 1998A, 5.250%, 10/20/33 2,000 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,048,860 Revenue Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,043,090 Multifamily Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) Maryland Economic Development Corporation, Senior Lien Student Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A: 215 4.250%, 10/01/10 No Opt. Call B1 207,858 50 5.000%, 10/01/15 10/13 at 100.00 B1 49,070 210 5.625%, 10/01/23 10/13 at 100.00 B1 211,877 1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 A 1,947,510 Revenue Bonds, Sheppard Pratt University Village, Series 2001, 6.000%, 7/01/33 - ACA Insured 475 Maryland Economic Development Corporation, Student 6/16 at 100.00 AAA 512,050 Housing Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa $ 766,462 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 2,094,700 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 2,082,340 Maryland, Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,250 Total Housing/Multifamily 11,735,124 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.7% (4.5% OF TOTAL INVESTMENTS) 300 Maryland Community Development Administration, 9/15 at 100.00 Aa2 310,008 Department of Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 1,200 Maryland Community Development Administration, 3/16 at 100.00 Aa2 1,239,636 Department of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Mandatory put 9/13/24) (Alternative Minimum Tax) 815 Maryland Community Development Administration, 9/16 at 100.00 Aa2 841,170 Department of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 550 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 567,567 Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax) 535 Maryland Community Development Administration, Residential 3/11 at 100.00 Aa2 557,443 Revenue Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 613,110 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) 75 Maryland Community Development Administration, Single 10/10 at 100.00 Aa2 75,351 Family Program Bonds, First Series 2001, 5.000%, 4/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 4,075 Total Housing/Single Family 4,204,285 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.6% (1.2% OF TOTAL INVESTMENTS) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,017,470 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.6% (0.3% OF TOTAL INVESTMENTS) 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 319,020 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 25.3% (17.1% OF TOTAL INVESTMENTS) Anne Arundel County, Maryland, General Obligation Bonds, Series 2006: 730 5.000%, 3/01/21 3/16 at 100.00 AA+ 800,445 565 5.000%, 3/01/21 3/16 at 100.00 AA+ 619,523 3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,695,896 Assessment Bonds, 67th Issue, 5.000%, 6/01/27 300 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 331,494 Bonds, Series 2005A, 5.000%, 12/01/16 500 Frederick County, Maryland, General Obligation Public No Opt. Call AA 567,570 Facilities Bonds, Series 2006, 5.000%, 11/01/20 Frederick, Maryland, General Obligation Bonds, Series 2005: 600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 661,254 500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 549,480 1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,401,181 Bonds, Series 2001A, 4.750%, 2/15/21 1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,084,250 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,360 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,507,465 Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 430 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 455,185 Series 2000A, 6.000%, 6/01/20 - ACA Insured 740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AAA 782,165 4.875%, 3/01/19 - FGIC Insured 27 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA $ 1,627,440 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+ 1,080,660 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 700 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 773,234 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 14,785 Total Tax Obligation/General 15,937,242 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.1% (10.9% OF TOTAL INVESTMENTS) 625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 649,813 Project, Series 2005A, 5.350%,7/01/34 605 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 615,261 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+ 538,455 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/18 500 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 542,165 5.000%, 7/01/31 - AMBAC Insured 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 374,598 Town Center Project, Series 2004, 5.750%, 7/01/34 1,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,717,410 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,531,703 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+ 398,668 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 800,895 Upper Marlboro Justice Center, Series 2003A, 5.000%, 6/30/14 - MBIA Insured 270 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 278,340 National Harbor Project, Series 2005, 5.200%, 7/01/34 450 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 460,917 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 820,064 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 1,290 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,419,348 Loan Note, Series 1999A, 6.375%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 9,305 Total Tax Obligation/Limited 10,147,637 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.1% (0.7% OF TOTAL INVESTMENTS) 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 AAA 679,601 Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 7/01/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.2% (16.3% OF TOTAL INVESTMENTS) (4) Anne Arundel County, Maryland, Various Purpose General Obligation Bonds, Series 2001: 580 4.800%, 2/15/18 (Pre-refunded 2/15/11) 2/11 at 101.00 AA+ (4) 613,901 500 5.000%, 2/15/28 (Pre-refunded 2/15/11) 2/11 at 101.00 AA+ (4) 533,105 1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 1,137,510 Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 560,220 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 835 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 964,016 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 2,300 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,487,680 Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM) 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,700 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA $ 1,836,170 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 1,590 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,660,691 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, General Obligation Construction Bonds, Series 2001: 895 5.000%, 6/01/22 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 949,908 935 5.000%, 6/01/23 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 992,362 985 5.000%, 6/01/24 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 1,045,430 1,035 5.000%, 6/01/25 (Pre-refunded 6/01/11) 6/11 at 100.00 AAA 1,098,497 1,290 Washington Suburban Sanitary District, Montgomery and 6/11 at 100.00 AAA 1,355,816 Prince George's Counties, Maryland, Water Supply Bonds, Series 2001, 4.750%, 6/01/20 (Pre-refunded 6/01/11) - ------------------------------------------------------------------------------------------------------------------------------------ 14,160 Total U.S. Guaranteed 15,235,306 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.6% (1.1% OF TOTAL INVESTMENTS) 1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,007,750 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS) 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 393,755 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ $ 87,975 Total Investments (cost $88,986,449) - 148.2% 93,261,610 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (1,133,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.5% 2,795,917 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.9)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 62,924,527 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 29 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.9% (2.6% OF TOTAL INVESTMENTS) $ 190 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call B- $ 189,574 Motors Corporation, Series 1993, 5.350%, 4/01/08 1,200 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,321,608 Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured 310 Baltimore, Maryland, Subordinate Lien Convention Center 9/16 at 100.00 Ba1 330,931 Hotel Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 660,491 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 2,350 Total Consumer Discretionary 2,502,604 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.5% (1.7% OF TOTAL INVESTMENTS) 770 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 811,441 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 813,880 Tobacco Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ 1,570 Total Consumer Staples 1,625,321 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.4% (13.6% OF TOTAL INVESTMENTS) 1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,175,295 Revenue Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 500 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 541,510 Bonds, Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 3/10 at 101.00 BBB- 104,879 100 5.800%, 9/01/30 3/10 at 101.00 BBB- 104,998 645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 691,550 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 259,915 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 442,257 Revenue Bonds, Bullis School, Series 2000, 5.250%, 7/01/30 - FSA Insured 500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 527,935 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,313,163 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 500 Maryland Industrial Development Financing Authority, 5/15 at 100.00 N/R 541,670 Revenue Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 590 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 641,566 Revenue Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/18 500 Morgan State University, Maryland, Student Tuition and Fee 7/12 at 100.00 AAA 532,950 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2001, 4.900%, 7/01/21 - FGIC Insured 500 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 538,730 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 1,621,017 1,140 4.500%, 4/01/19 4/11 at 100.00 AA 1,169,879 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA $ 1,074,830 Bonds, Series 2003A, 5.000%, 4/01/19 650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 712,647 Bonds, Series 2006A, 5.000%, 10/01/22 950 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 1,008,330 McDaniel College, Series 2006, 5.000%, 11/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 12,270 Total Education and Civic Organizations 13,003,121 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.1% (16.1% OF TOTAL INVESTMENTS) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,030,220 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/33 - FSA Insured 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 838,015 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,097,360 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 787,860 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 521,155 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 671,054 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,061,380 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 555,025 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 753,158 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,579,635 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 2,093,060 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 1,828,597 Revenue Bonds, Western Maryland Health, Series 2006A, 5.000%, 7/01/34 - MBIA Insured (UB) 1,610 Montgomery County, Maryland, Economic Development 12/11 at 100.00 Aa2 1,691,015 Revenue Bonds, Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22 Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 300 5.375%, 7/01/14 1/07 at 100.00 B3 277,479 700 5.300%, 7/01/24 1/07 at 100.00 B3 602,826 - ------------------------------------------------------------------------------------------------------------------------------------ 14,710 Total Health Care 15,387,839 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.5% (6.3% OF TOTAL INVESTMENTS) 50 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 51,490 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001A, 5.100%, 5/15/28 3,145 Maryland Community Development Administration, 12/11 at 100.00 Aaa 3,280,518 Multifamily Development Revenue Bonds, Waters Towers Senior Apartments, Series 2001F, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,157,830 Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B1 1,008,940 Student Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 520 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 560,560 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,825 Total Housing/Multifamily 6,059,338 - ------------------------------------------------------------------------------------------------------------------------------------ 31 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.8% (3.9% OF TOTAL INVESTMENTS) $ 300 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 $ 310,008 of Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, Department 3/16 at 100.00 Aa2 1,033,030 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Mandatory put 9/13/24) (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 841,170 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 905,159 Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 613,110 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,595 Total Housing/Single Family 3,702,477 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.8% (1.2% OF TOTAL INVESTMENTS) 1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,170,091 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS) 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 319,020 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 35.6% (23.7% OF TOTAL INVESTMENTS) 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 769,935 Consolidated Water and Sewerage, Series 1999, 4.500%, 8/01/19 Anne Arundel County, Maryland, General Obligation Bonds, Series 2006: 845 5.000%, 3/01/21 3/16 at 100.00 AA+ 926,543 650 5.000%, 3/01/21 3/16 at 100.00 AA+ 712,725 750 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 812,055 Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured 300 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 331,494 Bonds, Series 2005A, 5.000%, 12/01/16 Cecil County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2001B: 975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,017,705 1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,062,452 750 Frederick County, Maryland, General Obligation Public Facilities No Opt. Call AA 851,355 Bonds, Series 2006, 5.000%, 11/01/20 200 Frederick County, Maryland, Special Obligation Bonds, Villages 7/10 at 102.00 AA 215,870 of Lake Linganore Community Development Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured Frederick, Maryland, General Obligation Bonds, Series 2005: 600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 661,254 500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 549,480 510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 538,856 Improvement Bonds, Series 2001, 4.750%,12/01/19 1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,090,330 Bonds, Series 2004B, 5.000%, 8/15/16 1,000 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,102,870 5.000%, 8/01/17 4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 5,107,688 Public Improvement Refunding Bonds, Series 2001, 5.250%, 10/01/18 Prince George's County, Maryland, General Obligation Consolidated Public Improvement Bonds, Series 2001: 1,000 5.250%, 12/01/20 - FGIC Insured 12/11 at 101.00 AAA 1,084,960 2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,044,105 770 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 809,524 Bonds, Series 2001, 5.000%, 7/01/24 - FSA Insured 800 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 883,696 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA $ 1,104,620 Prince George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 20,970 Total Tax Obligation/General 22,677,517 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.8% (11.2% OF TOTAL INVESTMENTS) 625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 649,813 Project, Series 2005A, 5.350%, 7/01/34 605 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 615,261 Revenue Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 530 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 573,439 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15 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+ 1,666,995 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,748,495 500 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 542,165 5.000%, 7/01/31 - AMBAC Insured 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 374,598 Town Center Project, Series 2004, 5.750%, 7/01/34 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,144,940 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,531,703 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 1,080,150 West Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 270 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 278,340 National Harbor Project, Series 2005, 5.200%, 7/01/34 475 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 486,524 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 10,000 Total Tax Obligation/Limited 10,692,423 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.7% (1.8% 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 679,601 1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 1,042,980 - ------------------------------------------------------------------------------------------------------------------------------------ 1,650 Total Transportation 1,722,581 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.5% (15.0% OF TOTAL INVESTMENTS) (4) 1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,602,390 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) 3,000 Frederick County, Maryland, General Obligation Public Facilities 12/10 at 101.00 AAA 3,215,640 Bonds, Series 2000, 5.200%, 12/01/19 (Pre-refunded 12/01/10) 1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA (4) 1,086,290 Bonds, Series 2002, 5.000%, 11/01/20 (Pre-refunded 11/01/12) Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A: 31 6.750%, 4/01/20 (Pre-refunded 4/01/09) 4/09 at 100.00 N/R (4) 32,814 25 6.750%, 4/01/23 (Pre-refunded 4/01/11) 4/11 at 101.00 N/R (4) 28,011 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,367,831 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 1,175 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,356,549 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,240,300 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 33 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA $ 1,308,855 Bonds, Series 2001, 5.000%, 7/01/24 (Pre-refunded 7/01/11) - FSA Insured 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,085,110 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 13,221 Total U.S. Guaranteed 14,323,790 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.2% (2.2% OF TOTAL INVESTMENTS) 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 1,049,230 5.250%, 10/01/34 - MBIA Insured 1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,007,750 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 2,056,980 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS) 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 393,755 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ $ 89,966 Total Investments (cost $91,244,008) - 149.9% 95,636,857 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (1,133,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 1,286,298 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.2)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 63,790,155 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 34 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.1% (2.0% OF TOTAL INVESTMENTS) $ 220 Baltimore, Maryland, Pollution Control Revenue Bonds, No Opt. Call B- $ 219,507 General Motors Corporation, Series 1993, 5.350%, 4/01/08 1,000 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,101,340 Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured 380 Baltimore, Maryland, Subordinate Lien Convention Center 9/16 at 100.00 Ba1 405,658 Hotel Revenue Bonds, Series 2006B, 5.875%, 9/01/39 700 Maryland Economic Development Corporation, Revenue 12/16 at 100.00 N/R 711,298 Bonds, Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 2,300 Total Consumer Discretionary 2,437,803 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.5% (2.4% OF TOTAL INVESTMENTS) 2,680 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,824,238 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.6% (10.5% OF TOTAL INVESTMENTS) 225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 240,401 Revenue Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 625 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 676,888 Bonds, Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 3/10 at 101.00 BBB- 104,879 100 5.800%, 9/01/30 3/10 at 101.00 BBB- 104,998 690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 739,797 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 659,919 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,053,680 Revenue Bonds, Johns Hopkins University, Series 2002A, 5.000%, 7/01/32 625 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 677,087 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 710 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 772,054 Revenue Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/18 1,000 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 1,066,610 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 1,012,590 Bonds, Series 2001B, 4.625%, 4/01/21 2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA 2,125,800 Bonds, Series 2002A, 5.125%, 4/01/22 1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 1,074,830 Bonds, Series 2003A, 5.000%, 4/01/19 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 877,104 Bonds, Series 2006A, 5.000%, 10/01/22 1,150 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 1,220,610 McDaniel College, Series 2006, 5.000%, 11/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 11,635 Total Education and Civic Organizations 12,407,247 - ------------------------------------------------------------------------------------------------------------------------------------ 35 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 21.5% (14.5% OF TOTAL INVESTMENTS) $ 700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 741,804 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/31 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,030,220 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/33 - FSA Insured 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 838,015 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,352,038 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 870 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 913,918 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 729,617 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 800 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 825,912 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,042,310 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,061,380 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 766,463 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 968,346 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 684,509 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,985,571 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,258,855 Revenue Bonds, Western Maryland Health, Series 2006A, 5.000%, 7/01/34 - MBIA Insured (UB) 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 842,952 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 350 5.375%, 7/01/14 1/07 at 100.00 B3 323,726 900 5.300%, 7/01/24 1/07 at 100.00 B3 775,062 - ------------------------------------------------------------------------------------------------------------------------------------ 16,340 Total Health Care 17,140,698 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 14.5% (9.8% OF TOTAL INVESTMENTS) 980 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 999,737 Revenue Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative Minimum Tax) 1,250 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B1 1,261,175 Student Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 Maryland Economic Development Corporation, Student Housing Revenue Bonds, Sheppard Pratt University Village, Series 2001: 20 5.875%, 7/01/21 - ACA Insured 7/11 at 101.00 A 21,553 150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 A 162,292 475 Maryland Economic Development Corporation, Student 6/16 at 100.00 AAA 512,050 Housing Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 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 530,476 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,099,000 4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 5,011,729 Collateralized Mortgage Revenue Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 - ------------------------------------------------------------------------------------------------------------------------------------ 11,250 Total Housing/Multifamily 11,598,012 - ------------------------------------------------------------------------------------------------------------------------------------ 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS) $ 595 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 $ 614,849 of Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 1,200 Maryland Community Development Administration, Department 3/16 at 100.00 Aa2 1,239,636 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Mandatory put 9/13/24) (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 841,170 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,610 Total Housing/Single Family 2,695,655 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.8% OF TOTAL INVESTMENTS) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,017,470 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.5% (0.3% OF TOTAL INVESTMENTS) 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 425,360 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.2% (15.6% OF TOTAL INVESTMENTS) 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,040,590 Refunding Bonds, Series 2002, 4.375%, 4/01/17 Anne Arundel County, Maryland, General Obligation Bonds, Series 2006: 845 5.000%, 3/01/21 3/16 at 100.00 AA+ 926,543 650 5.000%, 3/01/21 3/16 at 100.00 AA+ 712,725 1,000 Calvert County, Maryland, General Obligation Public Improvement 1/12 at 101.00 AA 1,048,610 Bonds, Series 2002, 4.500%, 1/01/16 380 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 419,892 Bonds, Series 2005A, 5.000%, 12/01/16 1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,315,679 Public Improvement Bonds, Series 2002, 4.400%, 1/15/16 500 Frederick County, Maryland, General Obligation Public No Opt. Call AA 567,570 Facilities Bonds, Series 2006, 5.000%, 11/01/20 245 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 264,142 Villages of Lake Linganore Community Development Authority, Series 2001A, 5.600%, 7/01/20 - RAAI Insured Frederick, Maryland, General Obligation Bonds, Series 2005: 710 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 782,484 535 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 587,944 1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,084,250 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,654,305 5.000%, 8/01/17 1,440 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,596,139 Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA+ 1,080,660 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 1,000 Prince George's County, Maryland, General Obligation No Opt. Call AA+ 1,069,480 Consolidated Public Improvement Bonds, Series 2004C, 5.000%, 12/01/11 1,000 St. Mary's County, Maryland, General Obligation Hospital No Opt. Call AA- 1,078,240 Bonds, Series 2002, 5.000%, 10/01/12 1,000 Washington Suburban Sanitary District, Montgomery and No Opt. Call AAA 1,089,290 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2004, 5.000%, 6/01/13 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,104,620 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,104,620 Prince George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 17,065 Total Tax Obligation/General 18,527,783 - ------------------------------------------------------------------------------------------------------------------------------------ 37 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 31.3% (21.1% OF TOTAL INVESTMENTS) $ 750 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R $ 779,775 Project, Series 2005A, 5.350%, 7/01/34 1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,081,960 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15 600 Baltimore, Maryland, Project Revenue Bonds, Series 2006, 7/16 at 100.00 AAA 650,598 5.000%, 7/01/31 - AMBAC Insured 450 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 481,626 Town Center Project, Series 2004, 5.750%, 7/01/34 5,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 5,724,697 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,200 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,290,178 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+ 484,866 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+ 3,174,819 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+ 1,577,820 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,725,835 460 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 474,209 National Harbor Project, Series 2005, 5.200%, 7/01/34 575 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 588,950 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: 1,000 5.250%, 7/01/17 7/12 at 100.00 BBB 1,065,330 1,205 5.250%, 7/01/20 7/12 at 100.00 BBB 1,286,844 1,275 5.250%, 7/01/21 7/12 at 100.00 BBB 1,360,272 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,141,310 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured 235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 250,736 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 820,064 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 22,920 Total Tax Obligation/Limited 24,959,889 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.8% (13.3% OF TOTAL INVESTMENTS) (4) 10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AA+ (4) 10,448 Consolidated General Improvements, Series 1999, 5.000%, 5/15/19 (Pre-refunded 5/15/09) 100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 105,266 Bonds, Series 1999, 5.250%, 7/01/17 (Pre-refunded 7/01/09) Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: 2,035 5.000%, 11/01/21 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 2,210,600 2,500 5.000%, 11/01/22 (Pre-refunded 11/01/12) 11/12 at 101.00 AA (4) 2,715,725 1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,253,935 Bonds, Series 2001A, 4.750%, 2/15/19 (Pre-refunded 2/15/09) 280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 313,723 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 285 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 309,390 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 1,010 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,166,055 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,000 Montgomery County, Maryland, Consolidated General Obligation 2/12 at 101.00 AAA $ 2,156,860 Public Improvement Bonds, Series 2002A, 5.000%, 2/01/20 (Pre-refunded 2/01/12) 3,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 3,780,350 Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 700 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 764,778 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 880 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 941,037 Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 25 Washington Suburban Sanitary District, Montgomery and 6/11 at 101.00 AAA 26,747 Prince George's Counties, Maryland, General Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17 (Pre-refunded 6/01/11) - ------------------------------------------------------------------------------------------------------------------------------------ 14,535 Total U.S. Guaranteed 15,754,914 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.9% (4.7% OF TOTAL INVESTMENTS) 1,250 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,259,688 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 4,270,686 Series 2000HH, 5.250%, 7/01/29 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,275 Total Utilities 5,530,374 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.0% (2.7% OF TOTAL INVESTMENTS) 2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,726,564 Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured 430 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 476,943 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 3,000 Total Water and Sewer 3,203,507 - ------------------------------------------------------------------------------------------------------------------------------------ $ 111,010 Total Investments (cost $114,205,469) - 148.6% 118,522,950 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (1.8)% (1,400,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 1,621,147 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.9)% (39,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 79,744,097 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 39 Nuveen Virginia Premium Income Municipal Fund (NPV) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.2% (2.9% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: $ 1,575 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,660,538 3,850 5.500%, 6/01/26 6/15 at 100.00 BBB 4,109,991 - ------------------------------------------------------------------------------------------------------------------------------------ 5,425 Total Consumer Staples 5,770,529 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.0% (4.8% OF TOTAL INVESTMENTS) 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,072,000 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 531,830 Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 700 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 746,585 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 490 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 501,015 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 475 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 520,457 Revenue Bonds, Series 2005, 5.000%, 6/01/18 2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,219,682 Revenue Bonds, Public Higher Education Financing Program, Series 2001A, 5.000%, 9/01/26 2,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 2,176,680 Revenue Bonds, Public Higher Education Financing Program, Series 2004B, 5.000%, 9/01/13 1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,785,109 Series 2004A, 5.000%, 5/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 8,920 Total Education and Civic Organizations 9,553,358 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 16.9% (11.6% OF TOTAL INVESTMENTS) 2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 2,095,760 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,339,899 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,299,413 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,187,010 Hospital Revenue Bonds, Memorial Regional Medical Center, Series 1995, 6.375%, 8/15/18 - MBIA Insured 1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,608,915 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 1,863,285 Healthcare Revenue Bonds, Bon Secours Health System, Series 1996, 6.250%, 8/15/20 - MBIA Insured 1,500 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,587,165 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 4,750 Medical College of Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA 4,922,378 Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured 3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,243,420 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 21,350 Total Health Care 23,147,245 - ------------------------------------------------------------------------------------------------------------------------------------ 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.5% (2.4% OF TOTAL INVESTMENTS) $ 1,425 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa $ 1,555,074 Multifamily Housing Revenue Bonds, Patrick Henry Apartments, Series 2000, 6.050%, 11/01/32 (Mandatory put 11/01/20) (Alternative Minimum Tax) Danville Industrial Development Authority, Virginia, Student Housing Revenue Bonds, Collegiate Housing Foundation, Averett College, Series 1999A: 500 6.875%, 6/01/20 6/09 at 102.00 N/R 530,880 1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,592,070 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,047,940 Vistas GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,425 Total Housing/Multifamily 4,725,964 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.1% (1.5% OF TOTAL INVESTMENTS) 335 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 337,543 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 1,043,370 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 1,500 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 1,521,570 Mortgage Bonds, Series 2005C-C2, 4.750%, 10/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,835 Total Housing/Single Family 2,902,483 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.4% (1.0% OF TOTAL INVESTMENTS) 2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,031,340 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) 800 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 825,512 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.875%, 10/01/36 1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,600,861 GNMA Mortgage-Backed Securities Program Assisted Living Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29 Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006: 100 5.000%, 10/01/27 10/11 at 103.00 BBB- 104,377 800 5.000%, 10/01/35 No Opt. Call BBB- 831,336 - ------------------------------------------------------------------------------------------------------------------------------------ 3,195 Total Long-Term Care 3,362,086 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.8% (1.3% OF TOTAL INVESTMENTS) 500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 506,025 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (5) 1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 1,014,810 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (5) 1,000 Isle of Wight County Industrial Development Authority, 5/07 at 102.00 BBB 1,026,270 Virginia, Solid Waste Disposal Facilities Revenue Bonds, Union Camp Corporation, Series 1997, 6.100%, 5/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,500 Total Materials 2,547,105 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.3% (18.0% OF TOTAL INVESTMENTS) 900 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 981,333 5.000%, 6/15/13 1,500 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 1,659,150 Series 2006, 5.000%, 8/01/20 Chesapeake, Virginia, General Obligation Water and Sewerage Bonds, Series 2003B: 1,880 5.000%, 6/01/21 6/13 at 100.00 AA 2,003,892 2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,188,441 41 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 AAA $ 1,455,758 and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured 1,390 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 1,537,910 Series 2005, 5.000%, 7/15/16 2,105 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA 2,314,490 Series 2006, 5.000%, 12/01/25 105 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 112,976 Bonds, Series 2002A, 5.250%, 5/01/22 1,435 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,577,826 Bonds, Series 2005B, 5.000%, 6/01/18 1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,279,077 5.000%, 6/01/21 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 2,981,213 1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,076,250 1,350 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 1,479,465 Series 2004C, 5.000%, 5/01/16 1,400 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 1,481,998 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AAA 1,411,878 5.000%, 4/01/15 - MBIA Insured 1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,600,117 5.000%, 7/15/21 - FSA Insured Richmond, Virginia, General Obligation Bonds, Series 2005A: 1,500 5.000%, 7/15/17 - FSA Insured 7/15 at 100.00 AAA 1,650,255 1,215 5.000%, 7/15/20 - FSA Insured 7/15 at 100.00 AAA 1,327,388 1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,544,901 Bonds, Series 2002A, 5.000%, 10/01/17 1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 1,256,910 5.000%, 12/01/15 2,155 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,329,059 Series 2003B, 5.000%, 5/01/15 1,100 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AA+ 1,203,158 Series 2005, 5.000%, 1/15/20 1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,514,789 Bonds, Series 2001, 5.000%, 6/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 33,155 Total Tax Obligation/General 35,968,234 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 28.6% (19.6% OF TOTAL INVESTMENTS) Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 335 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 358,339 260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 280,038 2,400 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 2,653,968 Highway Reimbursement Anticipation Notes, Series 2005, 5.000%, 9/28/15 1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,445,672 Revenue Bonds, School Facilities Project, Series 2005, 5.000%, 1/01/20 - MBIA Insured Cumberland County, Virginia, Certificates of Participation, Series 1997: 1,075 6.200%, 7/15/12 No Opt. Call N/R 1,139,500 1,350 6.375%, 7/15/17 No Opt. Call N/R 1,529,118 500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102.00 N/R 511,115 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 1,089,580 Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 - MBIA Insured 1,000 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 1,098,830 Lease Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 Fairfax County Economic Development Authority, Virginia, Lease Revenue Bonds, Laurel Hill Public Facilities Projects, Series 2003: 2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,462,247 2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,321,984 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,660 Front Royal and Warren County Industrial Development 4/14 at 100.00 AAA $ 1,788,949 Authority, Virginia, Lease Revenue Bonds, Series 2004B, 5.000%, 4/01/18 - FSA Insured 1,270 James City County Economic Development Authority, Virginia, 7/15 at 100.00 AA- 1,378,217 Revenue Bonds, County Government Projects, Series 2005, 5.000%, 7/15/19 1,930 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 2,095,613 County Facilities, Series 2005, 5.000%, 6/01/18 - AMBAC Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 2,108,900 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 BBB 281,767 320 5.250%, 7/01/36 7/12 at 100.00 BBB 339,098 1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,139,004 Lease Revenue Bonds, School Facilities, Series 2003B, 4.375%, 8/01/20 - AMBAC Insured 1,600 Stafford County and Staunton Industrial Development 8/16 at 100.00 AAA 1,742,576 Authority, Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured 1,400 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA 1,514,282 Bonds, Series 2005A, 5.000%, 5/01/22 2,000 Virginia College Building Authority, Educational Facilities Revenue 2/12 at 100.00 AA+ 2,107,740 Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,106,880 1997 Resolution, Series 2000B, 5.000%, 8/01/18 1,625 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 1,783,275 1997 Resolution, Series 2005C, 5.000%, 8/01/17 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2000B: 755 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 806,793 935 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 997,121 1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,848,019 Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,184,160 U.S. Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ 36,295 Total Tax Obligation/Limited 39,112,785 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 13.1% (9.0% OF TOTAL INVESTMENTS) 1,440 Metropolitan Washington D.C. Airports Authority, Airport 10/16 at 100.00 AAA 1,544,328 System Revenue Bonds, Series 2006, 5.000%, 10/01/36 (WI/DD, Settling 12/06/06) - FGIC Insured (Alternative Minimum Tax) 4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,189,800 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 1,000 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 AAA 1,077,360 Series 2005A, 5.000%, 2/01/23 - MBIA Insured 2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 2,899,975 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 6,065 Virginia Port Authority, Revenue Bonds, Port Authority Facilities, 7/07 at 101.00 AAA 6,187,330 Series 1997, 5.600%, 7/01/27 - MBIA Insured (Alternative Minimum Tax) 2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,107,580 Bonds, Series 2001A, 5.250%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ 17,005 Total Transportation 18,006,373 - ------------------------------------------------------------------------------------------------------------------------------------ 43 Nuveen Virginia Premium Income Municipal Fund (NPV) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.1% (13.1% OF TOTAL INVESTMENTS) (4) $ 3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 AAA $ 3,830,190 Rate Revenue Bonds, Institute for Defense Analyses, Series 2000A, 5.900%, 10/01/30 (Pre-refunded 10/01/10) - AMBAC Insured 750 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 850,950 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) Fairfax County Water Authority, Virginia, Water Revenue Refunding Bonds, Series 2002: 925 5.375%, 4/01/19 (Pre-refunded 4/01/12) 4/12 at 100.00 AAA 1,007,066 200 5.000%, 4/01/27 (Pre-refunded 4/01/12) 4/12 at 100.00 AAA 214,126 Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Convention Center Expansion Project, Series 2000: 600 6.125%, 6/15/25 (Pre-refunded 6/15/10) 6/10 at 101.00 AAA 656,070 2,000 6.125%, 6/15/29 (Pre-refunded 6/15/10) 6/10 at 101.00 AAA 2,186,900 2,000 Hampton, Virginia, General Obligation Public Improvement 2/10 at 102.00 AA (4) 2,184,800 Bonds, Series 2000, 6.000%, 2/01/20 (Pre-refunded 2/01/10) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: 375 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 422,749 800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 905,648 480 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 520,757 Bonds, Series 2002A, 5.250%, 5/01/22 (Pre-refunded 5/01/12) 755 Metropolitan District of Columbia Airports Authority, Virginia, 10/07 at 101.00 AA- (4) 773,769 Airport System Revenue Bonds, Series 1997A, 5.375%, 10/01/23 (Pre-refunded 10/01/07) 530 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 102.00 AAA 557,618 Bonds, Route 895 Connector Toll Road, Series 1998A, 5.500%, 8/15/28 (Pre-refunded 8/15/08) 2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,700,250 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds, Series 2002D: 735 5.250%, 7/01/27 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB (4) 797,982 880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB (4) 955,407 1,035 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,081,016 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 2,223,020 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) 1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+ (4) 1,085,110 Revenue Bonds, Hampton University, Series 2000, 6.000%, 4/01/20 (Pre-refunded 4/01/10) 500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 537,900 Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22 (Pre-refunded 10/01/10) Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2000B: 365 5.500%, 5/01/20 (Pre-refunded 5/01/10) - FSA Insured 5/10 at 101.00 Aaa 391,627 2,125 5.500%, 5/01/30 (Pre-refunded 5/01/10) - FSA Insured 5/10 at 101.00 Aaa 2,280,019 - ------------------------------------------------------------------------------------------------------------------------------------ 24,055 Total U.S. Guaranteed 26,162,974 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.6% (7.9% 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 1,875,125 1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,975,824 2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 3,013,678 2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 2,809,600 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 3,584,385 Series 1998A, 5.125%, 1/15/28 - FGIC Insured 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) Richmond, Virginia, Public Utility Revenue Refunding Bonds, Series 2002: $ 750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA $ 788,310 1,700 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,786,836 - ------------------------------------------------------------------------------------------------------------------------------------ 14,730 Total Utilities 15,833,758 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.7% (4.6% OF TOTAL INVESTMENTS) Fairfax County Water Authority, Virginia, Water Revenue Refunding Bonds, Series 2002: 105 5.375%, 4/01/19 4/12 at 100.00 AAA 113,943 800 5.000%, 4/01/27 4/12 at 100.00 AAA 841,592 1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,848,818 Refunding Bonds, Series 1999, 5.000%, 5/01/28 1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,075,270 Sewerage System Revenue Bonds, Series 2004, 5.000%, 1/01/26 Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,387,434 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,451,732 2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,454,188 Series 2000, 6.000%, 9/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 8,615 Total Water and Sewer 9,172,977 - ------------------------------------------------------------------------------------------------------------------------------------ $ 184,505 Total Long-Term Investments (cost $187,293,193) - 144.8% 198,297,211 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,200 Puerto Rico Government Development Bank, Adjustable Refunding Bonds, A-1+ 1,200,000 Variable Rate Demand Obligations, Series 1985, 3.290%, 12/01/15 - MBIA Insured (6) - ------------------------------------------------------------------------------------------------------------------------------------ $ 1,200 Total Short-Term Investments (cost $1,200,000) 1,200,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $188,493,193) - 145.7% 199,497,211 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.9% 1,266,308 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.6)% (63,800,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 136,963,519 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. (6) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 45 Nuveen Virginia Dividend Advantage Municipal Fund (NGB) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.8% (3.2% OF TOTAL INVESTMENTS) Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: $ 65 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 65,855 850 5.400%, 5/15/31 5/11 at 100.00 Baa3 878,322 Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: 550 5.250%, 6/01/19 6/15 at 100.00 BBB 579,871 725 5.500%, 6/01/26 6/15 at 100.00 BBB 773,959 - ------------------------------------------------------------------------------------------------------------------------------------ 2,190 Total Consumer Staples 2,298,007 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.1% (8.1% OF TOTAL INVESTMENTS) 500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 520,505 Facilities Revenue Bonds, Averett University, Series 2001, 6.000%, 3/15/22 500 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 536,000 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 850 Prince William County Park Authority, Virginia, Park 10/09 at 101.00 A3 904,111 Facilities Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 160 5.375%, 2/01/19 2/09 at 101.00 BBB- 164,218 320 5.375%, 2/01/29 2/09 at 101.00 BBB- 328,509 280 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 281,652 Horse Center Revenue Refunding Bonds, Series 2001B, 6.125%, 7/15/11 980 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 1,002,030 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 160 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 175,312 Revenue Bonds, Series 2005, 5.000%, 6/01/18 1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,384,996 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 513,285 Revenue Refunding Bonds, Marymount University, Series 1998, 5.100%, 7/01/18 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,575 Total Education and Civic Organizations 5,810,618 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 10.8% (7.3% OF TOTAL INVESTMENTS) 100 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 110,101 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 1,078,950 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 1,500 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 1,541,325 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 519,765 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- 536,305 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 525 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 555,508 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A $ 867,288 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 4,925 Total Health Care 5,209,242 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS) 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 1,041,560 Multifamily Housing Mortgage Revenue Bonds, Arlington View Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Mandatory put 11/01/19) (Alternative Minimum Tax) 1,000 Virginia Housing Development Authority, Rental Housing 10/10 at 100.00 AA+ 1,041,130 Bonds, Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 2,082,690 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS) 1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,043,370 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 600 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 608,628 Mortgage Bonds, Series 2005C-C2, 4.750%, 10/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,600 Total Housing/Single Family 1,651,998 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.2% (0.1% OF TOTAL INVESTMENTS) 50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 50,783 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 - 10.2% (6.9% OF TOTAL INVESTMENTS) 500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R 531,765 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 350 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 356,104 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 512,820 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 350 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 363,710 Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 700 Industrial Development Authority of the County of 1/17 at 100.00 N/R 728,504 Prince William, Virginia, Residential Care Facility Revenue Bonds, Westminster at Lake, First Mortgage, Series 2006, 5.125%, 1/01/26 650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 693,966 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 830 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 838,267 Residential Revenue Bonds, Virginia Lutheran Homes Incorporated, Series 2006, 5.000%, 12/01/39 350 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 359,849 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 350 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 356,290 Care Facility Mortgage Revenue Bonds, Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22 175 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 179,202 Residential Care Facility Revenue Bonds, Westminster- Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 4,755 Total Long-Term Care 4,920,477 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.9% (1.1% OF TOTAL INVESTMENTS) 100 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 101,205 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (5) 20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 B2 20,910 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1999A, 6.550%, 12/01/25 (Alternative Minimum Tax) (5) 47 Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS (continued) $ 220 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 $ 223,258 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (5) 500 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 512,890 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 840 Total Materials 858,263 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 28.9% (19.4% OF TOTAL INVESTMENTS) 330 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 359,822 5.000%, 6/15/13 600 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 663,660 Series 2006, 5.000%, 8/01/20 2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,091,520 Improvement Bonds, Series 2001, 5.000%, 1/15/21 500 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 553,205 Series 2005, 5.000%, 7/15/16 3,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,510,685 Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured 700 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA 769,664 Series 2006, 5.000%, 12/01/25 500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 549,765 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 845 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 926,036 Series 2004C, 5.000%, 5/01/16 320 Northern Mariana Islands General Obligation Bonds, 6/10 at 100.00 A 338,742 Series 2000A, 6.000%, 6/01/20 - ACA Insured 620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 682,105 5.000%, 7/15/17 - FSA Insured 400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 442,964 5.000%, 12/01/15 400 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AA+ 437,512 Series 2005, 5.000%, 1/15/20 2,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,577,799 Improvement Bonds, Series 2001, 5.000%, 6/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 12,950 Total Tax Obligation/General 13,903,479 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 23.8% (16.0% OF TOTAL INVESTMENTS) 171 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 174,784 Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 559,185 Revenue Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 128,360 95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 102,322 800 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 884,656 Highway Reimbursement Anticipation Notes, Series 2005, 5.000%, 9/28/15 1,000 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,075,270 Revenue Bonds, School Facilities Project, Series 2005, 5.000%, 1/01/22 - MBIA Insured 500 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 549,415 Lease Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 580 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 626,446 County Facilities, Series 2005, 5.000%, 6/01/20 - AMBAC Insured 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,076,140 Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AAA 653,466 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured 960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ 1,056,259 Taxes Loan Note, Series 1999A, 6.375%, 10/01/19 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 500 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA $ 540,815 Bonds, Series 2005A, 5.000%, 5/01/22 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 526,935 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 384,846 Prince William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,129,520 1997 Resolution, Series 2001A, 5.000%, 8/01/19 345 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 378,603 1997 Resolution, Series 2005C, 5.000%, 8/01/17 560 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 611,565 U.S. Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ 10,581 Total Tax Obligation/Limited 11,458,587 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 24.2% (16.2% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,085,650 Bonds, Richmond International Airport, Series 2005A, 5.000%, 7/01/18 - FSA Insured 1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,209,360 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 3,236,490 System Revenue Bonds, Series 2001A, 5.500%, 10/01/27 - MBIA Insured (Alternative Minimum Tax) 250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 263,905 System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 - MBIA Insured 510 Metropolitan Washington D.C. Airports Authority, Airport 10/16 at 100.00 AAA 546,950 System Revenue Bonds, Series 2006, 5.000%, 10/01/36 (WI/DD, Settling 12/06/06) - FGIC Insured (Alternative Minimum Tax) 1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,571,175 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 500 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 AAA 538,680 Series 2005A, 5.000%, 2/01/23 - MBIA Insured 500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 579,995 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,290,893 Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,294,650 Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,735 Total Transportation 11,617,748 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.9% (11.3% OF TOTAL INVESTMENTS) (4) 1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,104,960 Series 2001, 5.000%, 7/15/21 - FSA Insured (ETM) 425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB (4) 479,115 Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A, 6.000%, 6/01/22 (Pre-refunded 6/01/12) 1,000 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 AAA 1,074,940 Improvement Bonds, Series 2001B, 5.250%, 1/01/20 (Pre-refunded 1/01/11) 200 Pocahontas Parkway Association, Virginia, Senior Lien No Opt. Call AAA 202,430 Revenue Bonds, Route 895 Connector Toll Road, Series 1998A, 5.250%, 8/15/07 (ETM) 200 Pocahontas Parkway Association, Virginia, Senior Lien Revenue 8/08 at 102.00 AAA 210,422 Bonds, Route 895 Connector Toll Road, Series 1998A, 5.500%, 8/15/28 (Pre-refunded 8/15/08) 1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,622,400 Obligation Bonds, Series 2000A, 5.500%, 10/01/32 (ETM) 1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,620,150 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 49 Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 415 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 433,451 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 1,300 Richmond, Virginia, General Obligation Refunding and 1/10 at 101.00 AAA 1,373,827 Public Improvement Bonds, Series 1999A, 5.125%, 1/15/24 (Pre-refunded 1/15/10) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 7,540 Total U.S. Guaranteed 8,121,695 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.5% (2.3% OF TOTAL INVESTMENTS) 1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 1,123,840 Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) 500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/12 at 100.00 AAA 525,540 Series 2002, 5.000%, 1/15/27 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Utilities 1,649,380 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.3% (2.9% OF TOTAL INVESTMENTS) 2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,087,640 Refunding Bonds, Series 1999, 5.000%, 5/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ $ 67,241 Total Investments (cost $67,981,694) - 149.3% 71,720,607 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.6% 331,109 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.9)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 48,051,716 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 50 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.5% (3.1% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: $ 1,050 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,107,026 2,700 5.500%, 6/01/26 6/15 at 100.00 BBB 2,882,331 - ------------------------------------------------------------------------------------------------------------------------------------ 3,750 Total Consumer Staples 3,989,357 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.5% (5.1% OF TOTAL INVESTMENTS) 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,052,170 Revenue Bonds, National Wildlife Federation, Series 1999, 5.375%, 9/01/29 - MBIA Insured 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,072,000 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 1,599,825 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 490 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 501,015 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 275 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 301,317 Revenue Bonds, Series 2005, 5.000%, 6/01/18 2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,090,740 Educational Facilities First Mortgage Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,265 Total Education and Civic Organizations 6,617,067 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 17.4% (11.9% OF TOTAL INVESTMENTS) 1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,571,820 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,236,850 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 701,683 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- 1,072,610 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,155 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,222,117 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 1,000 Medical College of Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA 1,042,740 Bonds, Series 1998, 5.250%, 7/01/14 - MBIA Insured 1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,300,932 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 1,038,890 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 4,229,609 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 14,445 Total Health Care 15,417,251 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.4% (6.4% OF TOTAL INVESTMENTS) 7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,809,624 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 51 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 500 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA $ 507,190 Mortgage Bonds, Series 2005C-C2, 4.750%, 10/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,985 Total Housing/Single Family 8,316,814 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 9.2% (6.2% OF TOTAL INVESTMENTS) 165 Albemarle County Industrial Development Authority, 1/12 at 100.00 N/R 175,482 Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 650 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 661,336 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 512,820 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 600 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 623,502 Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 1,300 Industrial Development Authority of the County of 1/17 at 100.00 N/R 1,352,936 Prince William, Virginia, Residential Care Facility Revenue Bonds, Westminster at Lake, First Mortgage, Series 2006, 5.125%, 1/01/26 1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,441,314 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 1,670 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 1,686,633 Residential Revenue Bonds, Virginia Lutheran Homes Incorporated, Series 2006, 5.000%, 12/01/39 650 Suffolk Industrial Development Authority, Virginia, 9/16 at 100.00 N/R 668,291 Retirement Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 650 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 661,681 Care Facility Mortgage Revenue Bonds, Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22 325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 332,803 Residential Care Facility Revenue Bonds, Westminster- Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 7,860 Total Long-Term Care 8,116,798 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.8% (1.3% OF TOTAL INVESTMENTS) 165 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 166,988 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (5) 460 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 466,813 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (5) 1,000 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 1,025,780 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,625 Total Materials 1,659,581 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.8% (23.0% OF TOTAL INVESTMENTS) 600 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 654,222 5.000%, 6/15/13 500 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 553,050 Series 2006, 5.000%, 8/01/20 1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA 1,905,155 5.500%, 12/01/16 1,000 Loudoun County, Virginia, General Obligation Bonds, Series 2006, 12/16 at 100.00 AAA 1,099,520 5.000%, 12/01/25 1,730 Loudoun County, Virginia, General Obligation Public Improvement 11/11 at 101.00 AAA 1,807,417 Bonds, Series 2001C, 4.500%, 11/01/17 95 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 102,216 Bonds, Series 2002A, 5.250%, 5/01/22 1,000 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,099,530 Bonds, Series 2005B, 5.000%, 6/01/18 1,840 Newport News, Virginia, General Obligation Bonds, General 7/13 at 100.00 AA 1,980,300 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 1,068,620 Series 2003B, 5.000%, 11/01/22 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 40 Portsmouth, Virginia, General Obligation Public Utility Refunding 6/08 at 100.00 AAA $ 40,762 Bonds, Series 2001B, 5.000%, 6/01/21 - FGIC Insured Powhatan County, Virginia, General Obligation Bonds, Series 2001: 660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 694,822 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,048,270 1,000 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,081,160 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 2,591,520 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,629,313 1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,378,650 Bonds, Series 2002B, 5.000%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) Salem, Virginia, General Obligation Public Improvement Bonds, Series 2002: 1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,235,066 1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,290,072 1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,354,576 1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,424,455 1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,164,860 6.250%, 2/01/25 - AMBAC Insured 600 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AA+ 656,268 5.000%, 1/15/20 1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,594,515 Bonds, Series 2001, 5.000%, 6/01/19 1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AA+ 1,501,749 Public Improvement Bonds, Series 2002, 5.000%, 3/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 27,780 Total Tax Obligation/General 29,956,088 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 20.3% (13.8% OF TOTAL INVESTMENTS) 315 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 321,971 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 1,118,370 Revenue Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 224,631 165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 177,717 800 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 884,656 Highway Reimbursement Anticipation Notes, Series 2005, 5.000%, 9/28/15 800 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 879,064 Lease Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA+ 1,931,022 Lease Revenue Refunding Bonds, Public Facility Project, Series 2003, 5.000%, 3/01/19 400 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB 425,308 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 485,467 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,076,140 Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 1,000 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AAA 1,089,110 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured 800 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 865,304 Revenue Bonds, Series 2005A, 5.000%, 5/01/22 1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,886,427 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 53 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued) Portfolio of INVESTMENTS November 30, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 690 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R $ 758,696 Prince William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,704,490 1997 Resolution, Series 2001B, 5.000%, 8/01/19 570 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 625,518 1997 Resolution, Series 2005C, 5.000%, 8/01/17 1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,318,332 Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26 1,100 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 1,201,288 U.S. Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ 16,700 Total Tax Obligation/Limited 17,973,511 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.5% (3.1% OF TOTAL INVESTMENTS) 1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AAA 1,049,970 System Revenue Bonds, Series 2002A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) 940 Metropolitan Washington D.C. Airports Authority, Airport 10/16 at 100.00 AAA 1,008,103 System Revenue Bonds, Series 2006, 5.000%, 10/01/36 (WI/DD, Settling 12/06/06) - FGIC Insured (Alternative Minimum Tax) 1,500 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 AAA 1,616,040 Series 2005A, 5.000%, 2/01/23 - MBIA Insured 300 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 317,859 Bonds, Series 2001A, 5.250%, 8/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 3,740 Total Transportation 3,991,972 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.9% (11.5% OF TOTAL INVESTMENTS) (4) 1,000 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 1,134,600 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) 195 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 208,773 Refunding Bonds, Series 2002, 5.000%, 4/01/27 (Pre-refunded 4/01/12) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: 250 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 281,833 600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (4) 679,236 445 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 482,785 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 (Pre-refunded 5/01/12) 300 Pocahontas Parkway Association, Virginia, Senior Lien Revenue No Opt. Call AAA 303,645 Bonds, Route 895 Connector Toll Road, Series 1998A, 5.250%, 8/15/07 (ETM) 325 Pocahontas Parkway Association, Virginia, Senior Lien 8/08 at 102.00 AAA 341,936 Revenue Bonds, Route 895 Connector Toll Road, Series 1998A, 5.500%, 8/15/28 (Pre-refunded 8/15/08) 525 Portsmouth, Virginia, General Obligation Public Utility Refunding 6/08 at 100.00 AAA 536,624 Bonds, Series 2001B, 5.000%, 6/01/21 (Pre-refunded 6/01/08) - FGIC Insured 2,750 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,970,275 Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB (4) 1,194,259 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 (Pre-refunded 7/01/12) 1,345 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 1,469,466 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 1,710 Virginia Transportation Board, Transportation Revenue Bonds, 5/11 at 100.00 AA+ (4) 1,813,558 Northern Virginia Transportation District Program, Series 2001A, 5.000%, 5/15/26 (Pre-refunded 5/15/11) Virginia Transportation Board, Transportation Revenue Bonds, U.S. Route 58 Corridor Development Program, Series 2001B: 1,705 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 AA+ (4) 1,808,255 1,665 5.000%, 5/15/23 (Pre-refunded 5/15/11) 5/11 at 100.00 AA+ (4) 1,765,832 - ------------------------------------------------------------------------------------------------------------------------------------ 13,915 Total U.S. Guaranteed 14,991,077 - ------------------------------------------------------------------------------------------------------------------------------------ 54 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.3% (4.3% OF TOTAL INVESTMENTS) $ 2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 $ 2,247,680 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 3,315,750 Series 2000HH, 5.250%, 7/01/29 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,125 Total Utilities 5,563,430 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 15.2% (10.3% OF TOTAL INVESTMENTS) 805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 846,852 Refunding Bonds, Series 2002, 5.000%, 4/01/27 Henry County Public Service Authority, Virginia, Water and Sewerage Revenue Refunding Bonds, Series 2001: 1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,151,970 3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,502,920 Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,196,794 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,260,341 1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,525,371 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,604,269 2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,356,808 Revenue Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 12,350 Total Water and Sewer 13,445,325 - ------------------------------------------------------------------------------------------------------------------------------------ $ 121,540 Total Investments (cost $122,330,198) - 146.8% 130,038,271 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.6% 572,730 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.4)% (42,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 88,611,001 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) 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. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. N/R Not rated. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 55 Statement of ASSETS AND LIABILITIES November 30, 2006 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $226,062,934, $88,986,449, $91,244,008 and $114,205,469, respectively) $238,155,602 $93,261,610 $95,636,857 $118,522,950 Cash -- 778,745 -- -- Receivables: Interest 3,984,160 1,572,745 1,532,908 1,712,479 Investments sold 10,061 496,866 -- 5,061 Other assets 13,712 3,297 842 996 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 242,163,535 96,113,263 97,170,607 120,241,486 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 207,973 -- 191,999 36,466 Floating rate obligations 2,800,000 1,133,000 1,133,000 1,400,000 Payable for investments purchased -- -- -- -- Accrued expenses: Management fees 122,914 29,891 30,166 30,577 Other 47,785 19,925 17,393 24,043 Preferred share dividends payable 28,652 5,920 7,894 6,303 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 3,207,324 1,188,736 1,380,452 1,497,389 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $159,856,211 $62,924,527 $63,790,155 $ 79,744,097 ==================================================================================================================================== Common shares outstanding 10,633,842 4,176,700 4,186,831 5,360,346 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.03 $ 15.07 $ 15.24 $ 14.88 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 106,338 $ 41,767 $ 41,868 $ 53,603 Paid-in surplus 147,703,070 59,264,027 59,399,717 75,655,769 Undistributed (Over-distribution of) net investment income 151,171 (12,612) 83,807 (97,500) Accumulated net realized gain (loss) from investments and derivative transactions (197,036) (643,816) (128,086) (185,256) Net unrealized appreciation (depreciation) of investments 12,092,668 4,275,161 4,392,849 4,317,481 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $159,856,211 $62,924,527 $63,790,155 $ 79,744,097 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 56 VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $188,493,193, $67,981,694 and $122,330,198, respectively) $199,497,211 $71,720,607 $130,038,271 Cash -- -- -- Receivables: Interest 3,083,912 1,067,669 1,732,544 Investments sold 5,000 -- -- Other assets 15,327 3,186 1,844 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 202,601,450 72,791,462 131,772,659 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 145,906 157,345 102,761 Floating rate obligations -- -- -- Payable for investments purchased 1,523,506 539,575 994,511 Accrued expenses: Management fees 103,510 22,700 35,747 Other 35,088 18,416 18,977 Preferred share dividends payable 29,921 1,710 9,662 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,837,931 739,746 1,161,658 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $136,963,519 $48,051,716 $ 88,611,001 ==================================================================================================================================== Common shares outstanding 8,917,736 3,129,032 5,722,392 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.36 $ 15.36 $ 15.48 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 89,177 $ 31,290 $ 57,224 Paid-in surplus 125,552,722 44,375,391 81,218,087 Undistributed (Over-distribution of) net investment income 230,245 6,672 768 Accumulated net realized gain (loss) from investments and derivative transactions 87,357 (100,550) (373,151) Net unrealized appreciation (depreciation) of investments 11,004,018 3,738,913 7,708,073 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $136,963,519 $48,051,716 $ 88,611,001 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 57 Statement of OPERATIONS Six Months Ended November 30, 2006 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $5,635,760 $2,254,459 $2,225,590 $2,633,450 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 742,984 298,274 301,161 372,576 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 11,375 977 569 508 Interest expense and fees 4,367 1,767 1,767 2,183 Custodian's fees and expenses 53,489 17,320 18,794 18,332 Trustees' fees and expenses 3,060 1,197 1,163 1,528 Professional fees 9,852 6,660 7,103 7,913 Shareholders' reports - printing and mailing expenses 20,520 7,680 8,447 9,283 Stock exchange listing fees 4,963 178 178 229 Investor relations expense 16,926 6,328 6,478 8,040 Other expenses 10,151 7,709 7,912 7,412 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 986,860 393,214 398,696 481,901 Custodian fee credit (11,786) (5,965) (6,550) (7,249) Expense reimbursement -- (117,112) (133,949) (187,245) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 975,074 270,137 258,197 287,407 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 4,660,686 1,984,322 1,967,393 2,346,043 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 128,346 101,335 17,494 56,940 Net realized gain (loss) from forward swaps -- -- -- 33,256 Change in net unrealized appreciation (depreciation) of investments 5,977,199 2,045,311 2,070,596 3,069,241 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- (211,923) - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 6,105,545 2,146,646 2,088,090 2,947,514 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,171,295) (471,362) (464,618) (573,692) From accumulated net realized gains -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,171,295) (471,362) (464,618) (573,692) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $9,594,936 $3,659,606 $3,590,865 $4,719,865 ==================================================================================================================================== See accompanying notes to financial statements. 58 VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 4,703,384 $1,717,135 $3,077,360 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 626,665 226,832 410,689 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 8,083 461 557 Interest expense and fees -- -- -- Custodian's fees and expenses 32,986 15,406 20,595 Trustees' fees and expenses 2,504 950 1,915 Professional fees 8,739 6,148 7,080 Shareholders' reports - printing and mailing expenses 16,539 6,656 9,918 Stock exchange listing fees 4,977 133 244 Investor relations expense 14,060 4,740 8,407 Other expenses 8,482 7,887 8,434 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 813,031 304,309 525,497 Custodian fee credit (9,621) (3,165) (4,349) Expense reimbursement -- (89,061) (193,609) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 803,410 212,083 327,539 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 3,899,974 1,505,052 2,749,821 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (141,795) (29,112) (116,887) Net realized gain (loss) from forward swaps -- -- -- Change in net unrealized appreciation (depreciation) of investments 4,630,860 1,540,989 2,926,013 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 4,489,065 1,511,877 2,809,126 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,015,415) (373,509) (681,588) From accumulated net realized gains -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,015,415) (373,509) (681,588) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 7,373,624 $2,643,420 $4,877,359 ==================================================================================================================================== See accompanying notes to financial statements. 59 Statement of CHANGES IN NET ASSETS (Unaudited) MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) ---------------------------- ----------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,660,686 $ 9,509,021 $ 1,984,322 $ 3,981,268 $ 1,967,393 $ 3,928,931 Net realized gain (loss) from investments 128,346 83,005 101,335 (25,376) 17,494 (1,124) Net realized gain (loss) from forward swaps -- -- -- (62,612) -- (77,385) Net realized gain (loss) from futures -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 5,977,199 (6,030,163) 2,045,311 (2,009,294) 2,070,596 (2,456,188) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- 64,747 -- 98,762 Distributions to Preferred Shareholders: From net investment income (1,171,295) (1,920,310) (471,362) (790,032) (464,618) (772,031) From accumulated net realized gains -- (31,400) -- -- -- (14,225) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 9,594,936 1,610,153 3,659,606 1,158,701 3,590,865 706,740 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,604,501) (8,311,346) (1,578,014) (3,532,953) (1,606,958) (3,484,393) From accumulated net realized gains -- (260,035) -- -- -- (115,219) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,604,501) (8,571,381) (1,578,014) (3,532,953) (1,606,958) (3,599,612) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Offering costs adjustments -- -- -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 31,919 298,649 80,989 84,704 80,034 119,407 Preferred shares offering costs adjustments -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 31,919 298,649 80,989 84,704 80,034 119,407 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 6,022,354 (6,662,579) 2,162,581 (2,289,548) 2,063,941 (2,773,465) Net assets applicable to Common shares at the beginning of period 153,833,857 160,496,436 60,761,946 63,051,494 61,726,214 64,499,679 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $159,856,211 $153,833,857 $62,924,527 $60,761,946 $63,790,155 $61,726,214 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 151,171 $ 266,281 $ (12,612) $ 52,442 $ 83,807 $ 187,990 ==================================================================================================================================== See accompanying notes to financial statements. 60 MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) ---------------------------- ----------------------------- ---------------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,346,043 $ 4,610,127 $ 3,899,974 $ 7,868,441 $ 1,505,052 $ 3,037,231 Net realized gain (loss) from investments 56,940 163,785 (141,795) 1,639,045 (29,112) 255,078 Net realized gain (loss) from forward swaps 33,256 (75,241) -- -- -- -- Net realized gain (loss) from futures -- (156) -- -- -- -- Change in net unrealized appreciation (depreciation) of investments 3,069,241 (2,948,764) 4,630,860 (7,073,360) 1,540,989 (1,918,503) Change in net unrealized appreciation (depreciation) of forward swaps (211,923) 406,799 -- -- -- -- Distributions to Preferred Shareholders: From net investment income (573,692) (978,804) (1,015,415) (1,304,947) (373,509) (541,517) From accumulated net realized gains -- -- -- (231,433) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 4,719,865 1,177,746 7,373,624 897,746 2,643,420 832,289 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,784,995) (3,826,714) (3,155,514) (7,081,332) (1,257,476) (2,732,873) From accumulated net realized gains -- -- -- (2,160,808) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,784,995) (3,826,714) (3,155,514) (9,242,140) (1,257,476) (2,732,873) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Offering costs adjustments -- -- -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- 15,363 118,911 630,496 40,261 52,481 Preferred shares offering costs adjustments -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions -- 15,363 118,911 630,496 40,261 52,481 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 2,934,870 (2,633,605) 4,337,021 (7,713,898) 1,426,205 (1,848,103) Net assets applicable to Common shares at the beginning of period 76,809,227 79,442,832 132,626,498 140,340,396 46,625,511 48,473,614 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $79,744,097 $76,809,227 $136,963,519 $132,626,498 $48,051,716 $46,625,511 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (97,500) $ (84,856) $ 230,245 $ 501,200 $ 6,672 $ 132,605 ==================================================================================================================================== See accompanying notes to financial statements. 61 Statement of CHANGES IN NET ASSETS (Unaudited) (continued) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ---------------------------- SIX MONTHS YEAR ENDED ENDED 11/30/06 5/31/06 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,749,821 $ 5,449,719 Net realized gain (loss) from investments (116,887) 147,265 Net realized gain (loss) from forward swaps -- (161,404) Net realized gain (loss) from futures -- -- Change in net unrealized appreciation (depreciation) of investments 2,926,013 (3,264,225) Change in net unrealized appreciation (depreciation) of forward swaps -- 216,228 Distributions to Preferred Shareholders: From net investment income (681,588) (1,029,859) From accumulated net realized gains -- (42,756) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 4,877,359 1,314,968 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,230,988) (4,841,986) From accumulated net realized gains -- (380,508) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,230,988) (5,222,494) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Offering costs adjustments -- 10,292 Net proceeds from shares issued to shareholders due to reinvestment of distributions 77,624 148,139 Preferred shares offering costs adjustments -- 10,038 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 77,624 168,469 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 2,723,995 (3,739,057) Net assets applicable to Common shares at the beginning of period 85,887,006 89,626,063 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $88,611,001 $85,887,006 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 768 $ 163,523 ==================================================================================================================================== See accompanying notes to financial statements. 62 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 or certain U.S. territories. 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. Investment 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 market price quotes are not readily available (which is usually the case for municipal securities), the pricing service may establish fair 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. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Trustees. Futures contracts are valued using the closing settlement price, or, in the absence of such a price, at the mean of the bid and asked prices. If the pricing service is unable to supply a price for a municipal bond, forward swap contract or futures contract, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the investment. Exchange-listed securities are generally valued at the last sales price on the securities exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on Nasdaq are valued at the Nasdaq Official Closing Price. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments 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/delayed delivery purchase commitments. At November 30, 2006, Virginia Premium Income (NPV), Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) had outstanding when-issued/delayed delivery purchase commitments of $1,523,506, $539,575 and $994,511, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially 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. 63 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 one or more Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable 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 ========================================================================================================= Inverse Floating Rate Securities Each Fund may invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. 64 A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investments in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and accounts for the related interest paid to the holders of the short-term floating rate certificates as "Interest expense and fees" in the Statement of Operations. During the six months ended November 30, 2006, Maryland Premium Income (NMY), Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR) and Maryland Dividend Advantage 3 (NWI) invested in externally deposited inverse floaters and/or self-deposited inverse floaters. Virginia Premium Income (NPV), Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) did not invest in any such instruments during the six months ended November 30, 2006. The average floating rate obligations outstanding and average annual interest rate related to self-deposited inverse floaters during the six months ended November 30, 2006, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------- Average floating rate obligations $228,261 $92,364 $92,364 $114,130 Average annual interest rate 3.80% 3.80% 3.80% 3.80% ========================================================================================================= Forward Swap Transactions The Funds are authorized to invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. 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 reduce 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 predetermined threshold amount. At November 30, 2006, the Funds did not have any forward swap contracts outstanding. Futures Contracts The Funds are authorized to invest in futures contracts. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is noted in the Statement of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities reflects a receivable or payable for the variation margin when applicable. As of November 30, 2006, there were no outstanding futures contracts in any of the Funds. Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. 65 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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, their 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 YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06 - ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 2,140 19,420 5,121 5,298 5,063 7,521 ================================================================================================================= MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) ----------------------- ----------------------- ----------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED 11/30/06 5/31/06 11/30/06 5/31/06 11/30/06 5/31/06 - ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 1,071 7,806 38,319 2,408 3,038 ================================================================================================================= VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------------- SIX MONTHS YEAR ENDED ENDED 11/30/06 5/31/06 - ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 4,827 8,839 ================================================================================================================= 66 3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended November 30, 2006, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------------------------------------- Purchases $18,348,804 $ 7,870,168 $6,477,111 $ 8,140,950 Sales and maturities 15,132,002 7,421,379 4,706,048 6,077,889 ============================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------- Purchases $8,592,834 $5,164,702 $8,655,661 Sales and maturities 7,705,934 4,658,005 7,311,093 ============================================================================================================== 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, timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their Federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At November 30, 2006, 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 $223,025,180 $87,913,169 $90,156,535 $112,893,720 ============================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------- Cost of investments $188,203,063 $67,946,526 $122,343,252 ============================================================================================================== Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2006, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $12,481,480 $4,326,658 $4,444,025 $4,424,556 Depreciation (151,051) (111,139) (96,625) (195,323) - -------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $12,330,429 $4,215,519 $4,347,400 $4,229,233 ============================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $11,302,549 $3,774,403 $7,798,292 Depreciation (8,401) (322) (103,273) - -------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $11,294,148 $3,774,081 $7,695,019 ============================================================================================================== 67 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2006, the Funds' last tax 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 * $611,838 $310,415 $423,460 $209,736 Undistributed net ordinary income ** -- -- -- 787 Undistributed net long-term capital gains -- -- -- -- ============================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $811,454 $338,785 $496,256 Undistributed net ordinary income ** -- 2,254 -- Undistributed net long-term capital gains 229,152 -- -- ============================================================================================================== * Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 1, 2006, paid on June 1, 2006. ** 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 Funds' last tax year ended May 31, 2006, 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 $10,253,086 $4,350,733 $4,281,497 $4,833,094 Distributions from net ordinary income ** 82,432 -- 641 -- Distributions from net long-term capital gains 291,303 -- 114,999 -- ============================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $8,481,521 $3,279,786 $5,886,854 Distributions from net ordinary income ** -- -- 2,260 Distributions from net long-term capital gains 2,392,241 -- 354,292 ============================================================================================================== ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 68 At May 31, 2006, the Funds' last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: MARYLAND MARYLAND MARYLAND VIRGINIA DIVIDEND DIVIDEND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 ADVANTAGE (NFM) (NZR) (NWI) (NGB) - ----------------------------------------------------------------------------------------------------------- Expiration year: 2009 $ 7,580 $ -- $ -- $ -- 2010 37,159 -- -- -- 2011 -- -- -- -- 2012 430,282 -- -- 71,775 2013 15,613 -- 28,210 -- 2014 62,054 35,791 130,041 -- - ----------------------------------------------------------------------------------------------------------- Total $552,688 $35,791 $158,251 $71,775 =========================================================================================================== The following Funds elected to defer net realized losses from investments incurred from November 1, 2005 through May 31, 2006 ("post-October losses") in accordance with Federal income tax regulations. Post-October losses were treated as having arisen on the first day of the current fiscal year: MARYLAND MARYLAND MARYLAND VIRGINIA PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 2 (NMY) (NFM) (NZR) (NNB) - ----------------------------------------------------------------------------------------------------------- $204,066 $95,072 $17,928 $169,715 =========================================================================================================== 5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., ("Nuveen"), 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. The annual fund-level fee, payable monthly, for each Fund 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 ================================================================================ 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 ================================================================================ 69 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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 stated in the table below. As of November 30, 2006, the complex-level fee rate was .1845%. 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. 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 its 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. 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. 70 For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for any portion of its fees and expenses beyond September 30, 2010. For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for any portion of its fees and expenses beyond November 30, 2011. 71 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and does not expect the adoption of FIN 48 will have a significant impact on the net assets or results of operations of the Funds. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of November 30, 2006, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 7. 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 29, 2006, to shareholders of record on December 15, 2006, as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------------------------------------- Dividend per share $.0550 $.0615 $.0640 $.0555 ============================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------- Dividend per share $.0590 $.0655 $.0650 ============================================================================================================== At the same time, the following Funds declared capital gains and/or ordinary income distributions as follows: MARYLAND VIRGINIA DIVIDEND PREMIUM ADVANTAGE 2 INCOME (NZR) (NPV) - -------------------------------------------------------------------------------------------------------------- Capital gains distributions per share $ -- $.0215 Ordinary income distributions per share* .0014 -- ============================================================================================================== * Ordinary income consists of taxable market discount income and net short-term capital gains, if any. 72 Financial HIGHLIGHTS (Unaudited) 73 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period: Investment Operations Less Distributions ----------------------------------------------------------------- ------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) $14.47 $ .44 $ .57 $(.11) $ -- $ .90 $(.34) $ -- $(.34) 2006 15.12 .89 (.56) (.18) -- .15 (.78) (.02) (.80) 2005 14.28 .92 .92 (.10) -- 1.74 (.90) -- (.90) 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) MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) 14.57 .48 .51 (.11) -- .88 (.38) -- (.38) 2006 15.13 .95 (.47) (.19) -- .29 (.85) -- (.85) 2005 14.43 .98 .75 (.10) -- 1.63 (.93) -- (.93) 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) ==================================================================================================================================== Total Returns --------------------- Offering Based 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: 2007(b) $ -- $15.03 $14.64 3.18% 6.28% 2006 -- 14.47 14.52 (2.94) 1.08 2005 -- 15.12 15.78 15.64 12.52 2004 -- 14.28 14.45 (10.77) .64 2003 -- 15.10 17.15 15.22 14.33 2002 -- 14.04 15.73 4.77 7.71 MARYLAND DIVIDEND ADVANTAGE (NFM) - -------------------------------------------------------------------------------------- Year Ended 5/31: 2007(b) -- 15.07 15.78 6.38 6.10 2006 -- 14.57 15.19 2.51 1.95 2005 -- 15.13 15.63 6.22 11.60 2004 -- 14.43 15.62 2.99 (.69) 2003 .01 15.47 16.08 9.98 15.55 2002 -- 14.18 15.44 1.98 8.21 ====================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) $159,856 1.27%* 1.26%* 5.95%* 1.25%* 1.24%* 5.96%* 6% 2006 153,834 1.23 1.23 6.05 1.21 1.21 6.07 13 2005 160,496 1.24 1.24 6.22 1.23 1.23 6.22 10 2004 151,107 1.24 1.24 6.54 1.23 1.23 6.55 16 2003 159,415 1.26 1.26 7.00 1.25 1.25 7.01 16 2002 147,795 1.32 1.32 7.33 1.31 1.31 7.34 13 MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) 62,925 1.28* 1.27* 6.04* .88* .87* 6.44* 8 2006 60,762 1.26 1.26 5.99 .81 .81 6.44 14 2005 63,051 1.26 1.26 6.11 .79 .79 6.57 11 2004 60,041 1.24 1.24 6.34 .78 .78 6.80 10 2003 64,338 1.26 1.26 6.54 .79 .79 7.01 12 2002 58,925 1.35 1.35 6.81 .82 .82 7.34 36 ==================================================================================================================================== Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ MARYLAND PREMIUM INCOME (NMY) - -------------------------------------------------------------------------------- Year Ended 5/31: 2007(b) $79,100 $25,000 $75,523 $2,800 $86,342 2006 79,100 25,000 73,620 -- -- 2005 79,100 25,000 75,726 -- -- 2004 79,100 25,000 72,758 -- -- 2003 79,100 25,000 75,384 -- -- 2002 79,100 25,000 71,712 -- -- MARYLAND DIVIDEND ADVANTAGE (NFM) - -------------------------------------------------------------------------------- Year Ended 5/31: 2007(b) 32,000 25,000 74,160 1,133 84,782 2006 32,000 25,000 72,470 -- -- 2005 32,000 25,000 74,259 -- -- 2004 32,000 25,000 71,907 -- -- 2003 32,000 25,000 75,264 -- -- 2002 32,000 25,000 71,035 -- -- ================================================================================ * Annualized. ** Total 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) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the six months ended November 30, 2006. See accompanying notes to financial statements. 74-75 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 Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(d) $14.76 $.47 $ .50 $ (.11) -- $ .86 $(.38) $ -- $(.38) 2006 15.45 .94 (.59) (.18) -- .17 (.83) (.03) (.86) 2005 14.64 .94 .90 (.09) -- 1.75 (.88) (.06) (.94) 2004 15.71 .96 (1.08) (.06) -- (.18) (.87) (.02) (.89) 2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81) 2002(b) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(d) 14.33 .44 .55 (.11) -- .88 (.33) -- (.33) 2006 14.82 .86 (.46) (.18) -- .22 (.71) -- (.71) 2005 13.88 .86 .97 (.10) -- 1.73 (.78) (.01) (.79) 2004 14.89 .87 (1.03) (.06) -- (.22) (.79) -- (.79) 2003(c) 14.33 .52 .75 (.05) -- 1.22 (.46) -- (.46) ==================================================================================================================================== Total Returns --------------------- Offering Based 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 DIVIDEND ADVANTAGE 2 (NZR) - ----------------------------------------------------------------------------------- Year Ended 5/31: 2007(d) $ -- $15.24 $16.10 11.72% 5.93% 2006 -- 14.76 14.76 1.13 1.14 2005 -- 15.45 15.41 14.71 12.22 2004 -- 14.64 14.28 (2.90) (1.16) 2003 .01 15.71 15.60 12.71 18.39 2002(b) (.15) 14.01 14.61 .52 1.01 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ----------------------------------------------------------------------------------- Year Ended 5/31: 2007(d) -- 14.88 14.49 7.10 6.23 2006 -- 14.33 13.85 1.09 1.55 2005 -- 14.82 14.40 14.98 12.67 2004 -- 13.88 13.24 (5.97) (1.51) 2003(c) (.20) 14.89 14.90 2.53 7.31 =================================================================================== Ratios/Supplemental Data ----------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(d) $63,790 1.28%* 1.27%* 5.84%* .83%* .82%* 6.29%* 5% 2006 61,726 1.25 1.25 5.76 .77 .77 6.23 15 2005 64,500 1.23 1.23 5.74 .77 .77 6.20 10 2004 61,064 1.24 1.24 5.90 .78 .78 6.36 11 2003 65,490 1.26 1.26 6.07 .80 .80 6.53 12 2002(b) 58,370 1.22* 1.22* 5.55* .79* .79* 5.99* 21 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(d) 79,744 1.24* 1.23* 5.52* .74* .73* 6.02* 5 2006 76,809 1.23 1.23 5.41 .73 .73 5.91 14 2005 79,443 1.23 1.23 5.40 .74 .74 5.89 12 2004 74,369 1.22 1.22 5.59 .73 .73 6.08 15 2003(c) 79,700 1.18* 1.18* 5.01* .70* .70* 5.50* 13 ==================================================================================================================================== Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- ------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - -------------------------------------------------------------------------------- Year Ended 5/31: 2007(d) $32,000 $25,000 $74,836 $1,133 $85,546 2006 32,000 25,000 73,224 -- -- 2005 32,000 25,000 75,390 -- -- 2004 32,000 25,000 72,706 -- -- 2003 32,000 25,000 76,164 -- -- 2002(b) 32,000 25,000 70,601 -- -- MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - -------------------------------------------------------------------------------- Year Ended 5/31: 2007(d) 39,000 25,000 76,118 1,400 85,817 2006 39,000 25,000 74,237 -- -- 2005 39,000 25,000 75,925 -- -- 2004 39,000 25,000 72,672 -- -- 2003(c) 39,000 25,000 76,090 -- -- ================================================================================ * Annualized. ** Total 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) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the period September 25, 2001 (commencement of operations) through May 31, 2002. (c) For the period September 25, 2002 (commencement of operations) through May 31, 2003. (d) For the six months ended November 30, 2006. See accompanying notes to financial statements. 76-77 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 Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) $14.89 $ .44 $ .49 $(.11) $ -- $ .82 $(.35) $ -- $ (.35) 2006 15.82 .88 (.59) (.15) (.03) .11 (.80) (.24) (1.04) 2005 14.95 .93 .93 (.09) -- 1.77 (.90) -- (.90) 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) VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) 14.91 .48 .49 (.12) -- .85 (.40) -- (.40) 2006 15.52 .97 (.54) (.17) -- .26 (.87) -- (.87) 2005 14.42 .99 1.13 (.09) -- 2.03 (.93) -- (.93) 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) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) 15.02 .48 .49 (.12) -- .85 (.39) -- (.39) 2006 15.70 .95 (.52) (.18) (.01) .24 (.85) (.07) (.92) 2005 14.79 .96 1.13 (.09) (.01) 1.99 (.89) (.19) (1.08) 2004 16.02 .99 (1.22) (.06) -- (.29) (.89) (.05) (.94) 2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87) 2002(a) 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: 2007(b) $ -- $15.36 $15.30 5.06% 5.60% 2006 -- 14.89 14.91 (9.98) 0.71 2005 -- 15.82 17.65 24.54 12.13 2004 -- 14.95 14.95 (10.70) (.42) 2003 -- 15.93 17.67 15.27 14.99 2002 -- 14.69 16.17 6.64 6.71 VIRGINIA DIVIDEND ADVANTAGE (NGB) - --------------------------------------------------------------------------------------- Year Ended 5/31: 2007(b) -- 15.36 17.65 5.71 5.79 2006 -- 14.91 17.10 5.86 1.74 2005 -- 15.52 16.99 19.11 14.46 2004 -- 14.42 15.07 (8.11) (.50) 2003 .01 15.43 17.35 21.45 14.92 2002 -- 14.23 15.09 5.10 8.89 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - --------------------------------------------------------------------------------------- Year Ended 5/31: 2007(b) -- 15.48 16.29 1.77 5.73 2006 -- 15.02 16.40 3.45 1.53 2005 -- 15.70 16.74 21.96 13.75 2004 -- 14.79 14.65 (3.81) (1.84) 2003 -- 16.02 16.14 14.58 18.51 2002(a) (.13) 14.31 14.90 1.71 2.30 ======================================================================================= Ratios/Supplemental Data -------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ----------------------------- Ending Net Assets Applicable Net Portfolio to Common Investment Investment Turnover Shares (000) Expenses++ Income++ Expenses++ Income++ Rate ============================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) $136,964 1.21%* 5.79%* 1.20%* 5.81%* 4% 2006 132,626 1.19 5.75 1.17 5.77 16 2005 140,340 1.20 5.98 1.19 5.99 17 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) 48,052 1.29* 5.99* .90* 6.38* 7 2006 46,626 1.26 5.93 .82 6.38 16 2005 48,474 1.28 6.13 .81 6.59 15 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 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2007(b) 88,611 1.21* 5.87* .75* 6.32* 6 2006 85,887 1.19 5.75 .73 6.21 10 2005 89,626 1.19 5.74 .74 6.19 13 2004 84,248 1.20 5.99 .74 6.44 16 2003 91,065 1.21 6.01 .75 6.47 15 2002(a) 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: 2007(b) $63,800 $25,000 $78,669 2006 63,800 25,000 76,970 2005 63,800 25,000 79,992 2004 63,800 25,000 76,772 2003 63,800 25,000 79,946 2002 63,800 25,000 75,413 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------- Year Ended 5/31: 2007(b) 24,000 25,000 75,054 2006 24,000 25,000 73,568 2005 24,000 25,000 75,493 2004 24,000 25,000 71,863 2003 24,000 25,000 75,106 2002 24,000 25,000 71,154 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------- Year Ended 5/31: 2007(b) 42,000 25,000 77,745 2006 42,000 25,000 76,123 2005 42,000 25,000 78,349 2004 42,000 25,000 75,148 2003 42,000 25,000 79,206 2002(a) 42,000 25,000 73,408 ============================================================= * Annualized. ** Total 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 period November 15, 2001 (commencement of operations) through May 31, 2002. (b) For the six months ended November 30, 2006. See accompanying notes to financial statements. 78-79 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 FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. 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. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS 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. 80 Automatic Dividend REINVESTMENT PLAN NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS These Funds are amending the terms and conditions of their Automatic Dividend Reinvestment Plan (the "Plan") as further described below effective with the close of business on March 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who do not wish to continue as participants under the amended Plan may withdraw from the Plan by notifying the Plan Agent prior to the effective date of the amendments. Participants should refer to their Plan document for notification instructions, or may simply call Nuveen at (800) 257-8787. Fund shareholders who elect to participate in the Plan are able to have Fund distributions consisting of income dividends, realized capital gains and returns of capital automatically reinvested in additional Fund shares. Under the Plan's existing terms, the Plan Agent purchases Fund shares in the open market if the Fund's shares are trading at a discount to their net asset value on the payable date for the distribution. If the Fund's shares are trading at or above their net asset value on the payable date for the distribution, the Plan Agent purchases newly-issued Fund shares directly from the Fund at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. This change will permit Plan participants under these circumstances to reinvest Fund distributions at a lower aggregate cost than is possible under the existing Plan. 81 Notes 82 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2006, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website 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. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. 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 the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (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 unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. INVERSE FLOATERS: Inverse floating rate securities are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's 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 David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company 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 in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 83 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 more than $160 billion in assets, as of December 2006, 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 fixed-income 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, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/CEF o Investor education o Interactive planning tools Logo: NUVEEN Investments ESA-A-1106D 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 Portfolio of Investments 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. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. 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 2 ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: February 8, 2007 ------------------------------------------------------------------- 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, 2007 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: February 8, 2007 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.