UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-09469 --------------------- Nuveen Virginia Dividend Advantage Municipal Fund ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Kevin J. McCarthy 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, 2007 ------------------ 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. SEMI-ANNUAL REPORT November 30, 2007 Nuveen Investments MUNICIPAL CLOSED-END FUNDS Photo of: Small child 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 IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Man working on computer Life is complex. Nuveen makes things e-simple. - -------------------------------------------------------------------------------- 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. Free e-Reports right to your e-mail! www.investordelivery.com If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR www.nuveen.com/accountaccess If you receive your Nuveen Fund dividends and statements directly from Nuveen. Logo: NUVEEN Investments Chairman's LETTER TO SHAREHOLDERS Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board 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. I also wanted to update you on some important news about Nuveen Investments. The firm recently was acquired by a group led by Madison Dearborn Partners, LLC. While this affected the corporate structure of Nuveen Investments, it has no impact on the investment objectives, portfolio management strategies or dividend policy of your Fund. With the recent volatility in the stock market, many have begun to wonder which way the market is headed, and whether they need to adjust their holdings of investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. 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, 2008 Portfolio Manager's COMMENTS Nuveen Investments Municipal Closed-End Funds NMY, NFM, NZR, NWI, NPV, NGB, NNB Portfolio manager Cathryn Steeves discusses key investment strategies and the six-month performance of these seven Nuveen Funds. Cathryn, who joined Nuveen in 1996, has managed the Maryland and Virginia Funds since 2006. WHAT KEY STRATEGIES WERE USED TO MANAGE THE MARYLAND AND VIRGINIA FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2007? Over the course of this reporting period, we saw the municipal yield curve steepen, as interest rates at the short end of the yield curve declined and longer-term rates generally rose. In this environment, our investment strategies continued to focus on finding relative value. We looked for undervalued sectors and credits with the potential to perform well over the long term. The majority of our purchases were attractively-priced bonds in the 25-year to 30-year part of the yield curve. These purchases helped to offset the shortening of the Funds' portfolio durations due to bond calls and the natural tendency of bond durations to shorten as time passes. When the liquidity crisis in August caused the market to discount lower-quality and higher-yielding bonds, we took advantage of good opportunities to add lower-rated hospitals and continuing care retirement communities (CCRCs) to the Maryland and Virginia Funds. The Funds also purchased single-family housing bonds at discount rates as a way to add both performance potential and favorable income-generation capabilities. In addition, we bought some short-term insured bonds in the Maryland Funds. These bonds, many of which had underlying credits with which we were familiar through our research efforts, offered attractive yields and pricing in the aftermath of the liquidity crisis. To help generate cash for purchases and maintain the Funds' durations1 closer to our strategic range, we selectively sold holdings with shorter durations. Selling shorter duration bonds and reinvesting further out on the yield curve also helped to improve the Funds' overall call protection profile. We continued to emphasize a disciplined approach to duration management. As part of our duration strategies, we used inverse floating rate securities,2 a type of derivative financial instrument, in all seven of the Maryland and Virginia Funds. The inverse floaters had the dual benefit of bringing the durations of these Funds closer to our strategic target and enhancing their income-generation capabilities. In addition, NMY, NFM, NZR and NPV used forward-starting interest rate swaps, another type of derivative instrument. The goal of this strategy was to help us manage net asset value (NAV) volatility without having a negative impact on the Funds' income streams or common share dividends over the short term. Discussions of specific investments are for illustrative purposes only and are not intended as recommendations of individual investments. The views expressed in this commentary represent those of the portfolio manager as of the date of this report and are subject to change at any time, based on market conditions and other factors. The Funds disclaim any obligation to advise shareholders of such changes. 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. 2 An inverse floating rate security is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during the reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in This Report sections of this report. 4 HOW DID THE FUNDS PERFORM? Individual results for the Nuveen Maryland and Virginia Funds, as well as relevant index and peer group information, are presented in the accompanying table. Total Returns on Net Asset Value* For periods ended 11/30/07 6-Month 1-Year 5-Year 10-Year Maryland Funds NMY 1.78% 0.90% 5.93% 5.89% NFM 1.20% 0.85% 5.76% NA NZR 1.32% 0.97% 5.95% NA NWI 1.10% 0.64% 6.23% NA Virginia Funds NPV 1.49% 0.81% 5.69% 5.93% NGB 0.16% 0.20% 6.18% NA NNB 0.40% 0.28% 6.17% NA Lehman Brothers Municipal Bond Index3 2.40% 2.71% 4.68% 5.30% Lipper Other States Municipal Debt Funds Average4 1.10% 0.46% 5.91% 5.75% For the six months ended November 30, 2007, the cumulative returns on NAV for all seven of these Funds underperformed the return on the national Lehman Brothers Municipal Bond Index. NMY, NFM, NZR and NPV exceeded the average return for the Lipper Other States Municipal Debt Funds Average, while NWI performed in-line with the Lipper average and NGB and NNB trailed this measure. Shareholders should note that the performance of the Lipper Other States Municipal Debt Funds Average 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. For example, the Virginia municipal market as a whole underperformed the national municipal market due in part to a $1.1 billion Virginia tobacco refinancing issue earlier in 2007, which performed poorly as other states issued major tobacco deals, creating an oversupply of these bonds. One of the key factors in the six-month performance of these Funds relative to that of the unleveraged Lehman Brothers Municipal Bond Index was the use of financial leverage. The returns of all of these Funds were negatively impacted by their use of leverage. Although leveraging provides opportunities for additional income and total returns for common shareholders, it can also expose shareholders to additional risk when market conditions are unfavorable. With the increases in yields on longer municipal bonds, the impact of valuation changes in these bonds was magnified by the use of leverage. *Six-month returns are cumulative. One-year, five-year and ten-year returns 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. 3 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 index do not reflect any expenses. 4 The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 46 funds; 1 year, 46 funds; 5 years, 46 funds; and 10 years, 18 funds. Fund and Lipper returns assume reinvestment of dividends. 5 Other major factors that influenced the Funds' returns included yield curve and duration positioning, the use of derivatives, sector allocations and credit exposure. During this six-month period, bonds in the Lehman Brothers Municipal Bond Index with maturities between two and twelve years, especially those maturing in approximately six to eight years, benefited the most from changes in the interest rate environment. As a result, these bonds generally outperformed credits with longer maturities, with bonds having the longest maturities (22 years and longer) posting the worst returns. Although the Funds were underexposed to the outperforming shorter maturity categories, this was generally offset by their heavier weightings in the intermediate part of the curve, which performed well, and lower allocations to the underperforming long part of the curve. While our strategies during this period included adding some longer bonds to the Funds, their overall portfolio duration remained short of our strategic target. Consequently, the Funds' duration and yield curve positioning was a net positive for performance. The forward interest rate swaps in place in NMY, NFM, NZR and NPV also had a positive impact on the return performance of these four Funds. These derivative financial instruments provided exposure to taxable markets during a period when, in contrast to historical trends, the Treasury market and the municipal market moved in the opposite directions. As municipal market performance lagged the significant gains made by Treasuries, the forward interest rate swaps performed well. NWI, NGB and NNB did not use forward interest rate swaps because we were able to position the durations of these three Funds within our strategic range through the purchase of municipal bonds with longer maturities, rather than through the use of derivatives. The relatively greater exposure to longer municipal bonds hurt the performances of NWI, NGB and NNB. Sectors of the market that generally made positive contributions to the Funds' performances included water and sewer, transportation and education. General obligation credits and pre-refunded bonds, especially those that were advance refunded before longer municipal interest rates began to rise in mid-2007, also performed very well. In addition, the short-term insured bonds that we added to the Maryland Funds later in the period posted strong returns. On the other hand, bonds that carried any credit risk, regardless of sector, generally tended to perform poorly. Revenue bonds as a whole, and specifically the industrial development and health care sectors that had ranked among the top performers in the Lehman Brothers Municipal Bond Index over the past few years, underperformed the general municipal market. Bonds backed by the 1998 master tobacco settlement agreement also posted poor returns, due to the overall lower credit quality of the tobacco sector as well as the ample supply of these bonds. As interest rates on longer municipal bonds rose and credit spreads widened, lower credit quality bonds also generally underperformed the municipal market as a whole for the first time in several years. In addition to investing in bonds rated BBB, NFM, NZR, NWI, NGB and NNB can invest up to 20% of their assets in below-investment-grade 6 securities (bonds rated BB or below) or in non-rated bonds judged to be in the same credit quality category. The comparatively greater exposure of these five Funds to lower-rated bonds contributed to the underperformance of these Funds relative to NMY and NPV, which overall represented higher credit quality. As of November 30, 2007, the Maryland Funds had weightings of bonds rated BBB or lower and non-rated bonds ranging from approximately 13% in NMY to 21% in NZR and 22% in NFM and 23% in NWI, while the Virginia Funds' allocations totaled approximately 11% in NPV, 18% in NNB, and 20% in NGB. Another factor that had a negative impact was the Funds' small position in bonds backed by certain municipal insurers, specifically Radian Asset Assurance (Radian) (in the Maryland Funds) and ACA Financial Guaranty Corporation (ACA) (in the Virginia Funds). As concern increased about these two companies, prices on bonds insured by Radian and ACA declined to levels close to what one would expect for uninsured bonds from the underlying municipal issuers, detracting from the performance of these Funds. It is important to note that these Nuveen Municipal Closed-End Funds had no direct exposure to the collateralized debt products that were at the center of the recent liquidity crisis. RECENT MARKET EVENTS Many of the municipal bonds in the portfolios are covered by policies of insurance, issued by one of several municipal bond insurers, under which the insurer guarantees the timely payment of interest and principal on the bonds. Certain of those insurers, including AMBAC, MBIA and FGIC, historically rated AAA (the highest grade), also insure investment vehicles representing interests in subprime mortgages, which suffered severe credit deterioration during the semi-annual period covered by this report. The defaults and/or credit deterioration of the subprime mortgage investments they insured have caused losses to the insurers, which has reduced the insurers' capital and called into question the insurers' continued ability to pay interest and principal on insured bonds for the life of those bonds. One rating agency has already reduced the rating for AMBAC-insured bonds to AA, and other rating agencies may follow, and this rating may fall even further. While the major rating agencies continue to give the other affected insurers their highest rating, as of the date this report was written one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions in the future. The value of the insurance associated with bonds held by the Funds in this report (a component of the value of the bond/insurance combination) generally declined during and after the reporting period, and further credit deterioration or rating downgrades of the insurers could cause further declines in the value of the insurance component of an insured bond, although it has not and should not affect the creditworthiness of the municipal issuer of, and the uninsured value of, the underlying bond. 7 Dividend and Share Price INFORMATION As previously noted, these seven Funds use leverage to potentially enhance opportunities for additional income for common shareholders. The Funds' use of this strategy continued to provide incremental income, although the extent of this benefit was reduced to a degree by short-term interest rates that remained relatively high during most of this period. This, in turn, kept the Funds' borrowing costs high. The Funds' income streams were also somewhat impacted as the proceeds from older, higher-yielding bonds that matured or were called were reinvested into bonds currently available in the market, which generally offered lower yields during much of this period. The combination of these factors resulted in one monthly dividend reduction in NMY and NGB over the six-month period ended November 30, 2007. The dividends of NFM, NZR, NWI, NPV and NNB remained stable throughout this reporting period. 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, 2007, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes. NMY and NPV had positive UNII balances and NFM, NZR, NWI, NGB and NNB had negative UNII balances for financial statement purposes. As of November 30, 2007, the Funds' share prices were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 11/30/07 Six-Month Average Discount Premium/Discount NMY -12.47% -6.87% NFM -10.02% -1.88% NZR -9.49% -3.51% NWI -11.80% -7.03% NPV -10.14% -3.55% NGB -8.53% +1.90% NNB -5.95% +2.15% 8 NMY Performance OVERVIEW Nuveen Maryland Premium Income Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 57% AA 22% A 8% BBB 11% BB or Lower 1% N/R 1% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-2007 Dec 0.055 Jan 0.055 Feb 0.055 Mar 0.055 Apr 0.055 May 0.055 Jun 0.0515 Jul 0.0515 Aug 0.0515 Sep 0.0515 Oct 0.0495 Nov 0.0495 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 14.62 14.82 14.5 14.37 14.39 14.41 14.54 14.44 14.46 14.65 14.6486 14.61 14.58 14.81 14.89 15.06 14.93 15.04 15.15 15.03 14.86 15.05 14.95 14.85 14.75 14.83 14.73 14.47 14.12 13.94 13.76 13.7 13.46 13.37 13.1984 13.42 13.3 12.95 13.2401 13.68 13.57 13.59 13.23 13.22 13.23 13.08 13.07 13.1399 13.14 12.8 12.42 12.48 11/30/07 12.71 FUND SNAPSHOT - ------------------------------------ Common Share Price $12.71 - ------------------------------------ Common Share Net Asset Value $14.52 - ------------------------------------ Premium/(Discount) to NAV -12.47% - ------------------------------------ Market Yield 4.67% - ------------------------------------ Taxable-Equivalent Yield2 6.81% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $154,532 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.29 - ------------------------------------ Leverage-Adjusted Duration 10.11 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -12.37% 1.78% - ------------------------------------ 1-Year -9.16% 0.90% - ------------------------------------ 5-Year 1.17% 5.93% - ------------------------------------ 10-Year 4.04% 5.89% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 22.6% - ------------------------------------ Health Care 15.2% - ------------------------------------ U.S. Guaranteed 14.1% - ------------------------------------ Education and Civic Organizations 12.6% - ------------------------------------ Tax Obligation/Limited 10.0% - ------------------------------------ Housing/Multifamily 8.0% - ------------------------------------ Housing/Single Family 5.1% - ------------------------------------ Other 12.4% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 31.4%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 9 NFM Performance OVERVIEW Nuveen Maryland Dividend Advantage Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 47% AA 16% A 15% BBB 15% BB or Lower 1% N/R 6% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-2007 Dec 0.0615 Jan 0.0615 Feb 0.0615 Mar 0.0615 Apr 0.0615 May 0.0615 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0585 Nov 0.0585 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 15.64 15.88 15.3 15.11 15.5 15.36 15.17 15.24 15.09 15.47 15.4 15.7 15.85 15.8 16.15 16.31 15.8 16.16 15.95 16.14 16.15 16.1 16 15.7 15.2 15.14 15.16 14.94 15 14.9 14.62 14.7199 14.51 14.42 14.3 14.68 14.3 13.5 13.78 13.9 14.38 14.06 13.8 14 13.8101 13.73 13.67 13.65 13.36 13.2401 13.07 13.14 11/30/07 13.017 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.02 - ------------------------------------ Common Share Net Asset Value $14.47 - ------------------------------------ Premium/(Discount) to NAV -10.02% - ------------------------------------ Market Yield 5.39% - ------------------------------------ Taxable-Equivalent Yield2 7.86% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $60,534 - ------------------------------------ Average Effective Maturity on Securities (Years) 18.61 - ------------------------------------ Leverage-Adjusted Duration 9.51 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -12.61% 1.20% - ------------------------------------ 1-Year -13.32% 0.85% - ------------------------------------ 5-Year 2.37% 5.76% - ------------------------------------ Since Inception 3.34% 5.98% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Health Care 20.3% - ------------------------------------ U.S. Guaranteed 15.4% - ------------------------------------ Tax Obligation/General 14.9% - ------------------------------------ Housing/Multifamily 12.4% - ------------------------------------ Tax Obligation/Limited 10.7% - ------------------------------------ Education and Civic Organizations 8.9% - ------------------------------------ Housing/Single Family 5.5% - ------------------------------------ Other 11.9% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 31.4%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 10 NZR Performance OVERVIEW Nuveen Maryland Dividend Advantage Municipal Fund 2 as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 48% AA 23% A 8% BBB 13% BB or Lower 2% N/R 6% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-20073 Dec 0.064 Jan 0.064 Feb 0.064 Mar 0.0615 Apr 0.0615 May 0.0615 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0585 Nov 0.0585 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 16.1 15.97 16 15.9 16.1 16.05 15.38 15.92 16.01 16.22 15.84 15.76 15.85 16.25 16.28 16.05 16.01 16.34 16.1 16.28 16.02 15.95 15.84 15.81 15.5 15.43 15.31 14.97 14.75 14.5 14.52 14.5 14.33 14.28 14.08 14.35 14.04 13.68 13.85 13.86 14.37 14.05 13.9 14.04 13.85 13.95 13.7 13.78 13.52 13.54 13.05 13.04 11/30/07 13.26 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.26 - ------------------------------------ Common Share Net Asset Value $14.65 - ------------------------------------ Premium/(Discount) to NAV -9.49% - ------------------------------------ Market Yield 5.29% - ------------------------------------ Taxable-Equivalent Yield2 7.71% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $61,415 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.74 - ------------------------------------ Leverage-Adjusted Duration 9.38 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -11.59% 1.32% - ------------------------------------ 1-Year -13.48% 0.97% - ------------------------------------ 5-Year 3.53% 5.95% - ------------------------------------ Since Inception 3.45% 6.01% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 19.6% - ------------------------------------ Health Care 16.8% - ------------------------------------ U.S. Guaranteed 14.4% - ------------------------------------ Tax Obligation/Limited 11.9% - ------------------------------------ Education and Civic Organizations 10.9% - ------------------------------------ Housing/Multifamily 6.3% - ------------------------------------ Housing/Single Family 5.6% - ------------------------------------ Other 14.5% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 31.4%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 3 The Fund paid shareholders net ordinary income distributions in December 2006 of $.0014 per share. 11 NWI Performance OVERVIEW Nuveen Maryland Dividend Advantage Municipal Fund 3 as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 43% AA 25% A 9% BBB 16% BB or Lower 2% N/R 5% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-2007 Dec 0.0555 Jan 0.0555 Feb 0.0555 Mar 0.0555 Apr 0.0555 May 0.0555 Jun 0.0525 Jul 0.0525 Aug 0.0525 Sep 0.0525 Oct 0.0525 Nov 0.0525 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 14.5 14.48 14.35 14.3 14.2 14.24 14.57 14.17 14.1599 14.15 14.44 14.25 14.34 14.55 14.72 14.75 14.82 14.86 14.95 14.71 14.8 14.68 14.82 14.67 14.7 14.75 14.6 14.51 13.76 13.57 13.56 13.61 13.29 13.16 13.39 13.3 13.2 12.79 12.86 13.39 13.52 13.44 13.04 13.4 13.09 13.06 12.9799 12.95 12.92 12.61 12.21 12.34 11/30/07 12.63 FUND SNAPSHOT - ------------------------------------ Common Share Price $12.63 - ------------------------------------ Common Share Net Asset Value $14.32 - ------------------------------------ Premium/(Discount) to NAV -11.80% - ------------------------------------ Market Yield 4.99% - ------------------------------------ Taxable-Equivalent Yield2 7.27% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $76,790 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.75 - ------------------------------------ Leverage-Adjusted Duration 9.85 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -12.25% 1.10% - ------------------------------------ 1-Year -8.66% 0.64% - ------------------------------------ 5-Year 2.73% 6.23% - ------------------------------------ Since Inception 1.78% 5.08% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 20.6% - ------------------------------------ Health Care 16.5% - ------------------------------------ Tax Obligation/General 14.2% - ------------------------------------ U.S. Guaranteed 12.4% - ------------------------------------ Housing/Multifamily 9.8% - ------------------------------------ Education and Civic Organizations 9.0% - ------------------------------------ Housing/Single Family 4.0% - ------------------------------------ Other 13.5% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 31.4%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 12 NPV Performance OVERVIEW Nuveen Virginia Premium Income Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 59% AA 23% A 7% BBB 7% BB or Lower 1% N/R 3% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-20073 Dec 0.059 Jan 0.059 Feb 0.059 Mar 0.0565 Apr 0.0565 May 0.0565 Jun 0.053 Jul 0.053 Aug 0.053 Sep 0.053 Oct 0.053 Nov 0.053 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 15.32 15.35 14.86 14.69 15.02 15.3 15.28 15.6499 15.71 16.18 16.63 16.13 15.85 15.67 15.61 15.6 15.64 15.94 16.07 16.01 15.87 15.78 15.8 15.6 15.56 15.4 15.25 14.91 14.6 14.62 14.6699 14.87 14.43 14.21 14.11 14.1 13.87 13.98 14.28 14.08 14.41 14.38 14.14 14.27 13.94 13.83 13.7 13.94 13.68 13.57 13.1199 13.38 11/30/07 13.29 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.29 - ------------------------------------ Common Share Net Asset Value $14.79 - ------------------------------------ Premium/(Discount) to NAV -10.14% - ------------------------------------ Market Yield 4.79% - ------------------------------------ Taxable-Equivalent Yield2 7.05% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $132,119 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.12 - ------------------------------------ Leverage-Adjusted Duration 9.73 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -10.80% 1.49% - ------------------------------------ 1-Year -8.99% 0.81% - ------------------------------------ 5-Year 1.45% 5.69% - ------------------------------------ 10-Year 4.36% 5.93% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 20.3% - ------------------------------------ Health Care 16.7% - ------------------------------------ U.S. Guaranteed 13.7% - ------------------------------------ Tax Obligation/General 12.6% - ------------------------------------ Transportation 7.1% - ------------------------------------ Water and Sewer 6.7% - ------------------------------------ Housing/Single Family 5.4% - ------------------------------------ Utilities 4.9% - ------------------------------------ Other 12.6% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 3 The Fund paid shareholders a capital gains distribution in December 2006 of $.0215 per share. 13 NGB Performance OVERVIEW Nuveen Virginia Dividend Advantage Municipal Fund as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 55% AA 16% A 9% BBB 10% BB or Lower 1% N/R 9% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-2007 Dec 0.0655 Jan 0.0655 Feb 0.0655 Mar 0.063 Apr 0.063 May 0.063 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0595 Oct 0.0565 Nov 0.0565 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 17.55 17.18 17.19 17.37 17.49 17.67 17.99 17.65 17.21 17.7 18.05 17.79 17.6 17.65 17.53 17.65 17.69 17.82 17.85 17.86 17.75 17.65 17.72 17.49 17.32 17.54 17.52 17.15 17.04 16.6 16.45 15.99 15.289 15.2799 15.06 14.38 14.52 14.47 14.11 14.901 14.8678 15 14.21 14.252 14.29 14.1225 14.45 14.3 14.19 14.0799 13.95 13.51 11/30/07 13.4 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.40 - ------------------------------------ Common Share Net Asset Value $14.65 - ------------------------------------ Premium/(Discount) to NAV -8.53% - ------------------------------------ Market Yield 5.06% - ------------------------------------ Taxable-Equivalent Yield2 7.45% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $45,886 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.77 - ------------------------------------ Leverage-Adjusted Duration 10.04 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -21.59% 0.16% - ------------------------------------ 1-Year -20.45% 0.20% - ------------------------------------ 5-Year 2.17% 6.18% - ------------------------------------ Since Inception 3.63% 6.21% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Transportation 16.4% - ------------------------------------ U.S. Guaranteed 15.7% - ------------------------------------ Tax Obligation/Limited 12.9% - ------------------------------------ Tax Obligation/General 10.9% - ------------------------------------ Health Care 10.8% - ------------------------------------ Long-Term Care 8.1% - ------------------------------------ Housing/Single Family 6.3% - ------------------------------------ Water and Sewer 4.9% - ------------------------------------ Other 14.0% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 NNB Performance OVERVIEW Nuveen Virginia Dividend Advantage Municipal Fund 2 as of November 30, 2007 Pie Chart: Credit Quality (as a % of total investments)1 AAA/U.S. Guaranteed 56% AA 18% A 8% BBB 8% BB or Lower 2% N/R 8% Bar Chart: Monthly Tax-Free Dividends Per Share -- 2006-2007 Dec 0.065 Jan 0.065 Feb 0.065 Mar 0.0625 Apr 0.0625 May 0.0625 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0595 Oct 0.0595 Nov 0.0595 Line Chart: Share Price Performance -- Weekly Closing Price 12/01/06 16.26 16.4 16.49 16.84 16.98 17 16.75 16.7 16.32 16.81 16.68 16.7501 17.05 17.25 16.9501 16.95 17 16.75 16.86 16.689 16.47 16.7 16.57 16.7 16.75 16.65 16.9 16.65 15.92 15.94 15.9 15.9 15.85 15.665 15.139 15.4699 15.5 15 14.9 14.69 15.1 14.6 14.7 14.4 14.46 14.41 14.6 14.56 14.59 14.2499 13.8999 13.9899 11/30/07 13.9 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.90 - ------------------------------------ Common Share Net Asset Value $14.78 - ------------------------------------ Premium/(Discount) to NAV -5.95% - ------------------------------------ Market Yield 5.14% - ------------------------------------ Taxable-Equivalent Yield2 7.57% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $84,705 - ------------------------------------ Average Effective Maturity on Securities (Years) 17.64 - ------------------------------------ Leverage-Adjusted Duration 9.57 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) -14.87% 0.40% - ------------------------------------ 1-Year -10.51% 0.28% - ------------------------------------ 5-Year 3.81% 6.17% - ------------------------------------ Since Inception 4.28% 6.43% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Health Care 16.3% - ------------------------------------ Tax Obligation/General 15.6% - ------------------------------------ Water and Sewer 12.5% - ------------------------------------ U.S. Guaranteed 12.1% - ------------------------------------ Tax Obligation/Limited 12.1% - ------------------------------------ Housing/Single Family 10.5% - ------------------------------------ Long-Term Care 7.9% - ------------------------------------ Other 13.0% - ------------------------------------ 1 The percentage of AAA ratings shown in the foregoing chart reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers, and thereby reduce the percentage of the portfolio rated AAA from the percentage shown in the foregoing chart. 2 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 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 15 NMY NFM NZR Shareholder MEETING REPORT The annual meeting of shareholders was held in the offices of Nuveen Investments on October 12, 2007; the meeting for Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) was subsequently adjourned to October 22, 2007. NMY NFM NZR - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT: 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 ==================================================================================================================================== For 5,481,374 -- 2,068,148 -- 2,042,664 -- Against 180,886 -- 89,089 -- 93,689 -- Abstain 193,626 -- 48,866 -- 62,309 -- Broker Non-Votes 1,821,598 -- 502,409 -- 648,057 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 7,677,484 -- 2,708,512 -- 2,846,719 -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: William J. Schneider For -- 2,779 -- 1,108 -- 1,112 Withhold -- 66 -- 15 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,845 -- 1,123 -- 1,112 ==================================================================================================================================== Timothy R. Schwertfeger For -- 2,779 -- 1,108 -- 1,112 Withhold -- 66 -- 15 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 2,845 -- 1,123 -- 1,112 ==================================================================================================================================== Judith M. Stockdale For 7,490,033 -- 2,643,416 -- 2,758,906 -- Withhold 187,451 -- 65,096 -- 87,813 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 7,677,484 -- 2,708,512 -- 2,846,719 -- ==================================================================================================================================== Carole E. Stone For 7,494,061 -- 2,632,071 -- 2,759,206 -- Withhold 183,423 -- 76,441 -- 87,513 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 7,677,484 -- 2,708,512 -- 2,846,719 -- ==================================================================================================================================== TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR: For 7,471,136 -- 2,643,422 -- 2,777,605 -- Against 113,453 -- 40,053 -- 29,073 -- Abstain 92,895 -- 25,037 -- 40,041 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 7,677,484 -- 2,708,512 -- 2,846,719 -- ==================================================================================================================================== 16 NWI NPV NGB NWI NPV NGB - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT: 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 ==================================================================================================================================== For 2,760,101 -- 5,095,430 -- 1,789,148 -- Against 105,440 -- 213,995 -- 49,784 -- Abstain 129,402 -- 158,516 -- 44,812 -- Broker Non-Votes 1,257,406 -- 1,523,934 -- 485,822 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,252,349 -- 6,991,875 -- 2,369,566 -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: William J. Schneider For -- 1,417 -- 1,684 -- 541 Withhold -- 6 -- 19 -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,423 -- 1,703 -- 543 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,417 -- 1,686 -- 541 Withhold -- 6 -- 17 -- 2 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,423 -- 1,703 -- 543 ==================================================================================================================================== Judith M. Stockdale For 4,149,805 -- 6,815,912 -- 2,302,517 -- Withhold 102,544 -- 175,963 -- 67,049 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,252,349 -- 6,991,875 -- 2,369,566 -- ==================================================================================================================================== Carole E. Stone For 4,149,805 -- 6,815,703 -- 2,301,299 -- Withhold 102,544 -- 176,172 -- 68,267 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,252,349 -- 6,991,875 -- 2,369,566 -- ==================================================================================================================================== TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR: For 4,137,962 -- 6,864,094 -- 2,342,201 -- Against 66,833 -- 56,965 -- 13,779 -- Abstain 47,554 -- 70,816 -- 13,586 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,252,349 -- 6,991,875 -- 2,369,566 -- ==================================================================================================================================== 17 NNB Shareholder MEETING REPORT (continued) NNB - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT: Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class ==================================================================================================================================== For 3,100,375 -- Against 150,992 -- Abstain 103,514 -- Broker Non-Votes 966,890 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,321,771 -- ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: William J. Schneider For -- 1,191 Withhold -- 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,195 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,191 Withhold -- 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,195 ==================================================================================================================================== Judith M. Stockdale For 4,178,467 -- Withhold 143,304 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,321,771 -- ==================================================================================================================================== Carole E. Stone For 4,166,657 -- Withhold 155,114 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,321,771 -- ==================================================================================================================================== TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR: For 4,193,189 -- Against 45,277 -- Abstain 83,305 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,321,771 -- ==================================================================================================================================== 18 NMY Nuveen Maryland Premium Income Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 2.6% (1.7% OF TOTAL INVESTMENTS) $ 3,780 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 AAA $ 3,987,181 Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.9% (1.2% OF TOTAL INVESTMENTS) 2,980 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,911,251 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 18.9% (12.6% OF TOTAL INVESTMENTS) 1,250 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 1,271,038 Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 1,028,120 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: 980 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,045,817 980 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,045,817 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 785,130 500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 523,420 1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,264,213 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,335 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 1,280,225 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 1,500 Maryland Health and Higher Educational Facilities Authority, 1/08 at 102.00 AA 1,531,935 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 1,445,098 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 11,246,348 Revenue Refunding Bonds, Academic Fees and Auxiliary Facilities, Series 1993, 6.100%, 7/01/20 - MBIA Insured 2,680 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 2,826,596 Bonds, Series 2003A, 5.000%, 4/01/19 1,685 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 1,812,538 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+ 1,360,002 850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 735,301 - ------------------------------------------------------------------------------------------------------------------------------------ 26,970 Total Education and Civic Organizations 29,201,598 - ------------------------------------------------------------------------------------------------------------------------------------ 19 NMY Nuveen Maryland Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 21.8% (14.5% OF TOTAL INVESTMENTS) $ 1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 $ 1,562,973 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 3,334,468 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,624,740 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 1,740 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa1 1,685,225 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,361,654 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+ 1,489,020 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 1,016,430 Revenue Bonds, Johns Hopkins Hospital, Howard County General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - MBIA Insured 1,430 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,576,861 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 7.209%, 7/01/33 (IF) 2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,051,200 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 3,817,024 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 2,055,769 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 A3 1,787,380 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 1,010 5.000%, 7/01/37 7/17 at 100.00 BBB 927,624 670 5.500%, 7/01/42 7/17 at 100.00 BBB 656,761 1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,698,640 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,320,168 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,037,610 Revenue Bonds, University of Maryland Medical System, Series 2004B, 5.000%, 7/01/24 - AMBAC Insured 2,000 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,044,040 Revenue Bonds, Western Maryland Health, Series 2006A, 5.000%, 7/01/34 - MBIA Insured Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 420 5.375%, 7/01/14 1/08 at 100.00 B3 376,824 295 5.300%, 7/01/24 1/08 at 100.00 B3 237,239 - ------------------------------------------------------------------------------------------------------------------------------------ 33,445 Total Health Care 33,661,650 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 12.0% (8.0% OF TOTAL INVESTMENTS) 1,450 Maryland Community Development Administration, FNMA 2/11 at 101.00 Aaa 1,504,839 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 2,510,100 Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 900,002 Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax) 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B2 $ 959,450 Student Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 1,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa3 1,030,740 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 1,162,828 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 3,876,420 Maryland, FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30 360 Montgomery County Housing Opportunities Commission, 1/08 at 100.00 Aa2 360,569 Maryland, GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series 1995A, 5.900%, 7/01/15 2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,063,660 Maryland, Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30 540 Prince George's County Housing Authority, Maryland, 9/09 at 102.00 AAA 557,944 GNMA Collateralized Mortgage Revenue Bonds, University Landing Apartments, Series 1999, 6.100%, 3/20/41 (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 12/07 at 100.00 AAA 2,002,920 1,670 5.750%, 12/20/19 12/07 at 100.00 AAA 1,672,021 - ------------------------------------------------------------------------------------------------------------------------------------ 18,375 Total Housing/Multifamily 18,601,493 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 7.6% (5.1% OF TOTAL INVESTMENTS) 650 Maryland Community Development Administration Department 3/17 at 100.00 Aa2 650,189 of Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 1,195 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 1,186,946 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 4,059,942 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 1,630 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 1,588,565 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 1,200 Maryland Community Development Administration, Department 3/17 at 100.00 Aa2 1,145,232 of Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 2,345 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 2,255,656 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 586,932 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) 10 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 10,236 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 328,883 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 12,050 Total Housing/Single Family 11,812,581 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.2% (0.8% OF TOTAL INVESTMENTS) 2,010 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 1,980,493 Disposal Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.8% (1.9% OF TOTAL INVESTMENTS) 2,455 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 2,320,221 Series 2007A, 5.000%, 1/01/37 1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/09 at 101.00 AA 1,017,970 EMA Obligated Group, Series 1999A, 5.625%, 1/01/25 - RAAI Insured 21 NMY Nuveen Maryland Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 1,065 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB+ $ 972,750 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 4,520 Total Long-Term Care 4,310,941 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 34.0% (22.6% OF TOTAL INVESTMENTS) 2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AAA 2,196,805 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 AAA 1,410,294 1,000 5.000%, 3/01/21 3/16 at 100.00 AAA 1,076,560 685 Anne Arundel County, Maryland, Water and Sewer Revenue 3/16 at 100.00 AAA 751,472 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 2,602,625 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,644,970 1,000 Baltimore, Maryland, Consolidated General Obligation Public No Opt. Call AA- 1,031,740 Improvement Bonds, Series 1989B, 7.150%, 10/15/08 1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 1,635,033 Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured 700 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 771,967 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 2,386,501 820 5.000%, 3/01/16 No Opt. Call AA 905,731 1,500 Frederick County, Maryland, General Obligation Public Facilities No Opt. Call AA 1,663,755 Bonds, Series 2006, 5.000%, 11/01/20 Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2004B: 735 5.000%, 8/15/16 2/14 at 100.00 AAA 795,366 1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,759,778 1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,263,650 1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 1,834,089 Bonds, Series 2002A, 5.250%, 8/15/18 1,190 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA+ 1,283,510 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 3,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 3,313,230 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 3,520 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 3,898,822 Public Improvement Bonds, Series 2006, 5.000%, 5/01/16 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 1,885,398 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,132,000 2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA+ 2,025,360 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+ 6,112,045 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 2,194,660 1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,314,781 1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,310,668 1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,307,396 - ------------------------------------------------------------------------------------------------------------------------------------ 48,970 Total Tax Obligation/General 52,508,206 - ------------------------------------------------------------------------------------------------------------------------------------ 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.1% (10.0% OF TOTAL INVESTMENTS) $ 300 Baltimore, Maryland, Special Obligation Bonds, North Locust 9/15 at 101.00 N/R $ 282,963 Point Project, Series 2005, 5.500%, 9/01/34 340 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 AA 351,036 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 900 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 882,531 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+ 910,201 925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 962,213 4,250 Maryland Department of Transportation, Consolidated No Opt. Call AAA 4,837,222 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,875 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,018,175 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+ 1,775,820 Montgomery County Conference Center Facilities, Series 2003, 5.000%, 6/15/24 1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,050,290 Metrorail Garage, Series 2002, 5.000%, 6/01/21 675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 696,101 West Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 635 New Baltimore City Board of School Commissioners, Maryland, 11/10 at 100.00 AA+ 666,445 School System Revenue Bonds, Series 2000, 5.125%, 11/01/15 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N: 1,000 5.500%, 7/01/29 - AMBAC Insured No Opt. Call AAA 1,120,100 2,500 5.250%, 7/01/31 - AMBAC Insured No Opt. Call AAA 2,700,250 1,000 5.250%, 7/01/33 - MBIA Insured No Opt. Call AAA 1,097,920 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,225,370 5.250%, 8/01/21 - FSA Insured 1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,689,870 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 21,575 Total Tax Obligation/Limited 23,266,507 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.1% (1.3% OF TOTAL INVESTMENTS) 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,178,879 System Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/07 at 101.00 CCC+ 2,005,571 American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,135 Total Transportation 3,184,450 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.2% (14.1% OF TOTAL INVESTMENTS) (4) 2,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,629,850 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AAA 2,163,880 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,202,300 System Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured (ETM) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 200 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 212,334 200 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 212,548 23 NMY Nuveen Maryland Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA $ 3,121,140 Bonds, Series 1999, 5.250%, 7/01/18 (Pre-refunded 7/01/09) 275 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 AA (4) 296,599 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 2,255 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 2,446,247 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 620,448 Refunding Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded 2/15/12) Maryland Economic Development Corporation, Health and Mental Hygiene Providers Revenue Bonds, Series 1996A: 905 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 1,026,867 685 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 777,242 2,250 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa2 (4) 2,372,153 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 3,495,296 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC Insured (ETM) 3,125 Maryland Health and Higher Educational Facilities Authority, 1/08 at 100.00 Aaa 3,166,625 Revenue Bonds, Howard County General Hospital, Series 1993, 5.500%, 7/01/25 (ETM) 1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A (4) 1,673,370 Revenue Bonds, University of Maryland Medical System, Series 2002, 6.000%, 7/01/22 (Pre-refunded 7/01/12) 210 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 241,298 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,084,270 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,059,920 Obligation Bonds, Series 2000A, 5.500%, 10/01/20 (ETM) 1,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 Aaa 1,145,190 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 520 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 542,750 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) 2,194,900 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 30,400 Total U.S. Guaranteed 32,685,227 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.0% (2.7% OF TOTAL INVESTMENTS) 2,500 Maryland Energy Financing Administration, Revenue Bonds, 2/08 at 100.00 N/R 2,506,100 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 3,724,525 Series 2004PP, 5.000%, 7/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total Utilities 6,230,625 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.2% (2.8% OF TOTAL INVESTMENTS) 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA 1,142,143 Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 2,900 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AAA 3,039,055 Series 2006C, 5.000%, 7/01/31 - AMBAC Insured 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,260 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AAA $ 1,321,072 Series 2007D, 5.000%, 7/01/32 - AMBAC Insured 860 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 950,885 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 6,065 Total Water and Sewer 6,453,155 - ------------------------------------------------------------------------------------------------------------------------------------ $ 220,275 Total Long-Term Investments (cost $224,303,351) - 149.4% 230,795,358 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 1.1% (0.7% OF TOTAL INVESTMENTS) $ 1,725 Maryland Health and Higher Education Facilities Authority, Aa3 1,725,000 Revenue Bonds, Kennedy Krieger Institute Project, Variable Rate Demand Obligations, Series 2006, 6.000%, 7/01/36 - RAAI Insured (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $1,725,000) 1,725,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $226,028,351) - 150.5% 232,520,358 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.7% 1,111,630 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.2)% (79,100,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 154,531,988 ==================================================================================================================== FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007: FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------------------------ Royal Bank of Canada $4,200,000 Pay SIFM 4.335% Quarterly 8/06/08 8/06/37 $360,314 ==================================================================================================================================== SIFM-The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index. (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (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) 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. (6) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 25 NFM Nuveen Maryland Dividend Advantage Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 4.8% (3.1% OF TOTAL INVESTMENTS) $ 205 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call Caa1 $ 204,342 Motors Corporation, Series 1993, 5.350%, 4/01/08 1,690 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,782,629 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 313,667 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 580,372 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 2,855 Total Consumer Discretionary 2,881,010 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,485 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,450,741 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.5% (8.9% OF TOTAL INVESTMENTS) 645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 663,137 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 980 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,021,219 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- 1,526,250 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- 505,685 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 541,818 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 481,921 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 648,671 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- 217,980 410 5.375%, 2/01/29 2/09 at 101.00 BBB- 410,086 500 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 527,350 Bonds, Series 2003A, 5.000%, 4/01/19 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 860,552 Bonds, Series 2006A, 5.000%, 10/01/22 900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 778,554 McDaniel College, Series 2006, 4.500%, 11/01/36 - ------------------------------------------------------------------------------------------------------------------------------------ 8,105 Total Education and Civic Organizations 8,183,223 - ------------------------------------------------------------------------------------------------------------------------------------ 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 29.6% (19.5% OF TOTAL INVESTMENTS) $ 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 1,307,086 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 1,016,300 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 1,001,640 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 1,043,180 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 731,865 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 710 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa1 687,649 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 486,305 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+ 645,242 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 - MBIA Insured 1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 A+ 1,275,600 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 645,080 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 7.209%, 7/01/33 (IF) 2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,281,960 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 1,004,480 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 589,522 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 A3 714,952 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 415 5.000%, 7/01/37 7/17 at 100.00 BBB 381,153 270 5.500%, 7/01/42 7/17 at 100.00 BBB 264,665 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 Baa1 1,008,980 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 699,440 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 7/15 at 100.00 A3 988,150 Revenue Bonds, Union Hospital of Cecil County, Series 2005, 5.000%, 7/01/35 570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 573,164 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/08 at 100.00 B3 562,940 Health Corporation, Series 1994, 5.300%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 17,935 Total Health Care 17,909,353 - ------------------------------------------------------------------------------------------------------------------------------------ 27 NFM Nuveen Maryland Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 18.8% (12.4% OF TOTAL INVESTMENTS) $ 750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA $ 760,275 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 2,021,180 Revenue Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,011,090 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 B2 207,445 50 5.000%, 10/01/15 10/13 at 100.00 B2 47,824 210 5.625%, 10/01/23 10/13 at 100.00 B2 201,485 1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 A 1,818,144 Revenue Bonds, Sheppard Pratt University Village, Series 2001, 6.000%, 7/01/33 - ACA Insured 475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 482,396 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 753,473 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 2,048,440 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 2,026,740 Maryland, Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,250 Total Housing/Multifamily 11,378,492 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.3% (5.5% OF TOTAL INVESTMENTS) 250 Maryland Community Development Administration Department 3/17 at 100.00 Aa2 250,073 of Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 300 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 297,978 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 1,188,276 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 794,283 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 500 Maryland Community Development Administration, Department 3/17 at 100.00 Aa2 477,180 of Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 495 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 507,410 Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax) 975 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 937,853 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 586,932 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 5,135 Total Housing/Single Family 5,039,985 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.3% (1.5% OF TOTAL INVESTMENTS) 410 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 403,981 Disposal Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,006,370 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,410 Total Industrials 1,410,351 - ------------------------------------------------------------------------------------------------------------------------------------ 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.6% (2.3% OF TOTAL INVESTMENTS) $ 850 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ $ 803,335 Series 2007A, 5.000%, 1/01/37 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 289,629 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 720 Maryland Health and Higher Educational Facilities Authority, 1/17 at 100.00 N/R 658,699 Revenue Bonds, King Farm Presbyterian Community, Series 2007A, 5.250%, 1/01/27 440 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB+ 401,887 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 2,310 Total Long-Term Care 2,153,550 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.6% (14.9% OF TOTAL INVESTMENTS) Anne Arundel County, Maryland, General Obligation Bonds, Series 2006: 730 5.000%, 3/01/21 3/16 at 100.00 AAA 785,889 565 5.000%, 3/01/21 3/16 at 100.00 AAA 608,256 3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,639,961 Assessment Bonds, 67th Issue, 5.000%, 6/01/27 300 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 330,843 Bonds, Series 2005A, 5.000%, 12/01/16 500 Frederick County, Maryland, General Obligation Public Facilities No Opt. Call AA 554,585 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 657,726 500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 547,015 1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,383,147 Bonds, Series 2001A, 4.750%, 2/15/21 1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA+ 1,078,580 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 Obligation No Opt. Call AAA 1,506,363 Public Improvement Bonds, Series 2006, 5.000%, 5/01/16 740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AAA 772,945 4.875%, 3/01/19 - FGIC Insured 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA+ 1,071,970 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 700 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 768,131 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 12,855 Total Tax Obligation/General 13,705,411 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.2% (10.7% OF TOTAL INVESTMENTS) 625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 585,075 Project, Series 2005A, 5.350%, 7/01/34 535 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 544,801 Revenue Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 343,207 Town Center Project, Series 2004, 5.750%, 7/01/34 1,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,707,255 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,512,286 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+ 397,158 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 792,540 Upper Marlboro Justice Center, Series 2003A, 5.000%, 6/30/14 - MBIA Insured 29 NFM Nuveen Maryland Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 270 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R $ 254,254 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 408,384 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,080,100 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 788,606 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+ 1,390,930 Loan Note, Series 1999A, 6.375%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 9,235 Total Tax Obligation/Limited 9,804,596 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.1% (0.7% OF TOTAL INVESTMENTS) 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 AAA 669,305 Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 7/01/27 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 23.3% (15.4% OF TOTAL INVESTMENTS) (4) 500 Anne Arundel County, Maryland, Various Purpose General 2/11 at 101.00 AAA 531,335 Obligation Bonds, Series 2001, 5.000%, 2/15/28 (Pre-refunded 2/15/11) - MBIA Insured 1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AAA 1,098,169 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 465 5.700%, 9/01/20 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 493,174 500 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 530,835 500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 553,585 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 670,669 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 (Pre-refunded 6/01/11) 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) 2,134,660 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 775 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 890,506 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,626,405 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 2,300 5.500%, 10/01/32 (ETM) 10/10 at 101.00 AAA 2,435,884 1,700 5.500%, 10/01/40 (ETM) 10/10 at 101.00 AAA 1,798,073 1,300 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,356,875 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 13,180 Total U.S. Guaranteed 14,120,170 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.7% (1.1% OF TOTAL INVESTMENTS) 1,000 Maryland Energy Financing Administration, Revenue Bonds, 2/08 at 100.00 N/R 1,002,440 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.4% (1.6% OF TOTAL INVESTMENTS) $ 500 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AAA $ 523,975 Series 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AAA 566,174 Series 2007D, 5.000%, 7/01/32 - AMBAC Insured 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 392,516 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,395 Total Water and Sewer 1,482,665 - ------------------------------------------------------------------------------------------------------------------------------------ $ 88,800 Total Long-Term Investments (cost $89,664,060) - 150.6% 91,191,292 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 1.2% (0.8% OF TOTAL INVESTMENTS) $ 700 Maryland Health and Higher Education Facilities Authority, Aa3 700,000 Revenue Bonds, Kennedy Krieger Institute Project, Variable Rate Demand Obligations, Series 2006, 6.000%, 7/01/36 - RAAI Insured (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $700,000) 700,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $90,364,060) - 151.8% 91,891,292 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.1% 642,795 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.9)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 60,534,087 ==================================================================================================================== FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007: FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $650,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 44,924 Royal Bank of Canada 900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 77,210 - ------------------------------------------------------------------------------------------------------------------------------------ $122,134 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM-The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index. (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (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) 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. (6) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 31 NZR Nuveen Maryland Dividend Advantage Municipal Fund 2 Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 5.0% (3.3% OF TOTAL INVESTMENTS) $ 190 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call Caa1 $ 189,390 Motors Corporation, Series 1993, 5.350%, 4/01/08 1,890 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 AAA 1,993,590 Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured 310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 313,667 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 580,372 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 3,040 Total Consumer Discretionary 3,077,019 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.4% (1.5% OF TOTAL INVESTMENTS) 750 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 732,698 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 731,592 Tobacco Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ 1,550 Total Consumer Staples 1,464,290 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 16.4% (10.9% OF TOTAL INVESTMENTS) 1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 1,138,929 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 500 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 508,415 Bonds, Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 663,137 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- 254,375 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 434,439 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- 505,685 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 541,818 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 500 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 507,285 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 590 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 627,341 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 524,975 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 528,510 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/20 - FGIC Insured 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,140 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA $ 1,163,473 Bonds, Series 2001B, 4.500%, 4/01/19 1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 1,054,700 Bonds, Series 2003A, 5.000%, 4/01/19 650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA 699,199 Bonds, Series 2006A, 5.000%, 10/01/22 950 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 922,859 McDaniel College, Series 2006, 5.000%, 11/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 9,805 Total Education and Civic Organizations 10,075,140 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.2% (16.0% OF TOTAL INVESTMENTS) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,016,300 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 794,298 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 1,043,180 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 731,865 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 715 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa1 692,492 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 486,305 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+ 645,242 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 645,080 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 7.209%, 7/01/33 (IF) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,004,480 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 529,058 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 A3 714,952 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 415 5.000%, 7/01/37 7/17 at 100.00 BBB 381,153 280 5.500%, 7/01/42 7/17 at 100.00 BBB 274,467 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 Baa1 1,513,470 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 699,440 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 1,500 Maryland Health and Higher Educational Facilities Authority, 7/15 at 100.00 A3 1,464,570 Revenue Bonds, Union Hospital of Cecil County, Series 2005, 5.000%, 7/01/40 1,610 Montgomery County, Maryland, Economic Development Revenue 12/11 at 100.00 Aa2 1,649,687 Bonds, Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/08 at 100.00 B3 562,940 Health Corporation, Series 1994, 5.300%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 14,905 Total Health Care 14,848,979 - ------------------------------------------------------------------------------------------------------------------------------------ 33 NZR Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.4% (6.3% OF TOTAL INVESTMENTS) $ 10 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 $ 10,154 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001A, 5.100%, 5/15/28 3,145 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 3,179,877 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 1,122,310 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 B2 959,450 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 528,096 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,785 Total Housing/Multifamily 5,799,887 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.4% (5.6% OF TOTAL INVESTMENTS) 250 Maryland Community Development Administration Department 3/17 at 100.00 Aa2 250,073 of Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 300 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 297,978 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 990,230 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 794,283 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 500 Maryland Community Development Administration, Department 3/17 at 100.00 Aa2 477,180 of Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 850 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 854,998 Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) 975 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 937,853 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 586,932 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 5,290 Total Housing/Single Family 5,189,527 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.5% (1.7% OF TOTAL INVESTMENTS) 410 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 403,981 Disposal Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,157,326 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,560 Total Industrials 1,561,307 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.6% (2.4% OF TOTAL INVESTMENTS) 860 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 812,786 Series 2007A, 5.000%, 1/01/37 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 289,629 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm Presbyterian Community, Series 2007A: 500 5.000%, 1/01/17 No Opt. Call N/R 480,385 220 5.250%, 1/01/27 1/17 at 100.00 N/R 201,269 435 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB+ 397,320 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 2,315 Total Long-Term Care 2,181,389 - ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.5% (19.6% OF TOTAL INVESTMENTS) $ 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AAA $ 764,753 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 AAA 909,693 650 5.000%, 3/01/21 3/16 at 100.00 AAA 699,764 750 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 796,283 Improvement Bonds, Series 2004A,5.000%, 10/15/22 - AMBAC Insured 300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA 330,843 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- 1,011,592 1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,054,445 750 Frederick County, Maryland, General Obligation Public Facilities No Opt. Call AA 831,878 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 657,726 500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 547,015 510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 533,674 Improvement Bonds, Series 2001, 4.750%, 12/01/19 1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,082,130 Bonds, Series 2004B, 5.000%, 8/15/16 1,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,104,410 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 5,042,176 Public Improvement Refunding Bonds, Series 2001, 5.250%, 10/01/18 770 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 798,590 Series 2001, 5.000%, 7/01/24 - FSA Insured 800 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 877,864 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 1,097,330 Prince George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 16,950 Total Tax Obligation/General 18,140,166 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.9% (11.9% OF TOTAL INVESTMENTS) 625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 585,075 Project, Series 2005A, 5.350%, 7/01/34 535 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 544,801 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+ 569,464 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+ 1,645,633 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,725,487 110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 AA 113,571 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 343,207 Town Center Project, Series 2004, 5.750%, 7/01/34 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,138,170 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 35 NZR Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ $ 1,512,286 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 1,031,260 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 254,254 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 431,072 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,080,100 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,540 Total Tax Obligation/Limited 10,974,380 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.8% (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 669,305 1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 1,019,900 - ------------------------------------------------------------------------------------------------------------------------------------ 1,650 Total Transportation 1,689,205 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.8% (14.4% OF TOTAL INVESTMENTS) (4) 1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,577,910 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 106,167 100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 106,274 90 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 AA (4) 97,069 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 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) 32,102 25 6.750%, 4/01/23 (Pre-refunded 4/01/11) 4/11 at 101.00 N/R (4) 27,679 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,366,886 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 1,341,338 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 (Pre-refunded 6/01/11) 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) 2,134,659 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 1,090 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,252,454 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,084,270 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,173,069 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,067,780 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 12,446 Total U.S. Guaranteed 13,367,657 - ------------------------------------------------------------------------------------------------------------------------------------ 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.3% (2.2% OF TOTAL INVESTMENTS) $ 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA $ 1,032,240 5.250%, 10/01/34 - MBIA Insured 1,000 Maryland Energy Financing Administration, Revenue Bonds, 2/08 at 100.00 N/R 1,002,440 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 2,034,680 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.4% (1.6% OF TOTAL INVESTMENTS) 500 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AAA 523,975 Series 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AAA 566,175 Series 2007D, 5.000%, 7/01/32 - AMBAC Insured 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 392,516 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,395 Total Water and Sewer 1,482,666 - ------------------------------------------------------------------------------------------------------------------------------------ $ 89,231 Total Long-Term Investments (cost $90,249,026) - 149.6% 91,886,292 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 1.2% (0.8% OF TOTAL INVESTMENTS) $ 700 Maryland Health and Higher Education Facilities Authority, Aa3 700,000 Revenue Bonds, Kennedy Krieger Institute Project, Series 2006, Variable Rate Demand Obligations, 6.000%, 7/01/36 - RAAI Insured (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $700,000) 700,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $90,949,026) - 150.8% 92,586,292 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 828,930 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.1)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 61,415,222 ==================================================================================================================== FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007: FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------------------------ Royal Bank of Canada $800,000 Pay SIFM 4.335% Quarterly 8/06/08 8/06/37 $68,631 ==================================================================================================================================== SIFM-The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index. (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (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) 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. (6) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 37 NWI Nuveen Maryland Dividend Advantage Municipal Fund 3 Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 4.1% (2.8% OF TOTAL INVESTMENTS) $ 220 Baltimore, Maryland, Pollution Control Revenue Bonds, No Opt. Call Caa1 $ 219,294 General Motors Corporation, Series 1993, 5.350%, 4/01/08 1,850 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,951,399 Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - XLCA Insured 380 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 384,495 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 700 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 625,016 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 3,150 Total Consumer Discretionary 3,180,204 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.2% OF TOTAL INVESTMENTS) 2,600 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,540,018 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.5% (9.0% OF TOTAL INVESTMENTS) 225 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 232,963 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 625 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 635,519 Bonds, Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 709,403 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- 632,106 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 1,033,860 Revenue Bonds, Johns Hopkins University, Series 2002A, 5.000%, 7/01/32 665 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 637,715 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 625 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 634,106 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 754,936 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 1,038,170 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 1,004,769 Bonds, Series 2001B, 4.625%, 4/01/21 1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 1,054,700 Bonds, Series 2003A, 5.000%, 4/01/19 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA $ 860,552 Bonds, Series 2006A, 5.000%, 10/01/22 1,150 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 1,117,145 McDaniel College, Series 2006, 5.000%, 11/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 10,100 Total Education and Civic Organizations 10,345,944 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.6% (15.7% OF TOTAL INVESTMENTS) 700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A 696,129 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 1,016,300 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 794,298 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 1,282,488 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 1,000 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 941,110 Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%, 7/01/40 870 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 848,963 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 885 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa1 857,140 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 680,827 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+ 794,144 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 A+ 1,020,480 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 735 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 810,485 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 7.209%, 7/01/33 (IF) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 1,004,480 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 730,604 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 A3 919,224 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 525 5.000%, 7/01/37 7/17 at 100.00 BBB 482,181 340 5.500%, 7/01/42 7/17 at 100.00 BBB 333,282 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 Baa1 655,837 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 850 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 849,320 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,884,834 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 39 NWI Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 $ 796,754 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 900 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/08 at 100.00 B3 723,780 Health Corporation, Series 1994, 5.300%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 18,225 Total Health Care 18,122,660 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 14.6% (9.8% OF TOTAL INVESTMENTS) 980 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 961,507 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 B2 1,199,313 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 20,526 150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 A 151,512 475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 482,396 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 514,609 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,000,450 4,860 Prince George's County Housing Authority, Maryland, 11/12 at 100.00 AAA 4,918,999 GNMA Collateralized Mortgage Revenue Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 - ------------------------------------------------------------------------------------------------------------------------------------ 11,250 Total Housing/Multifamily 11,249,312 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 6.0% (4.0% OF TOTAL INVESTMENTS) 350 Maryland Community Development Administration Department 3/17 at 100.00 Aa2 350,102 of Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 595 Maryland Community Development Administration, Department 9/15 at 100.00 Aa2 590,990 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 1,188,276 of Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department 9/16 at 100.00 Aa2 794,283 of Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 620 Maryland Community Development Administration, Department 3/17 at 100.00 Aa2 591,703 of Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 1,170 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 1,125,423 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,750 Total Housing/Single Family 4,640,777 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.0% (1.3% OF TOTAL INVESTMENTS) 510 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 502,513 Disposal Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,006,370 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,510 Total Industrials 1,508,883 - ------------------------------------------------------------------------------------------------------------------------------------ 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.4% (2.3% OF TOTAL INVESTMENTS) $ 1,050 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ $ 992,355 Series 2007A, 5.000%, 1/01/37 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 386,172 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm Presbyterian Community, Series 2007A: 280 5.000%, 1/01/17 No Opt. Call N/R 269,016 520 5.250%, 1/01/27 1/17 at 100.00 N/R 475,727 540 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 BBB+ 493,225 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 2,790 Total Long-Term Care 2,616,495 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 21.4% (14.2% OF TOTAL INVESTMENTS) 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,036,930 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 AAA 909,693 650 5.000%, 3/01/21 3/16 at 100.00 AAA 699,764 380 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA 419,068 Bonds, Series 2005A, 5.000%, 12/01/16 1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,312,794 Public Improvement Bonds, Series 2002, 4.400%, 1/15/16 500 Frederick County, Maryland, General Obligation Public Facilities No Opt. Call AA 554,585 Bonds, Series 2006, 5.000%, 11/01/20 Frederick, Maryland, General Obligation Bonds, Series 2005: 710 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 778,309 535 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 585,306 1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA+ 1,078,580 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,850 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 2,043,159 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 1,440 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,594,973 Public Improvement Bonds, Series 2006, 5.000%, 5/01/16 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA+ 1,071,970 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 1,000 Prince George's County, Maryland, General Obligation No Opt. Call AA+ 1,067,700 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 1,078,150 Bonds, Series 2002, 5.000%, 10/01/12 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,097,330 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 1,097,330 Prince George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 15,170 Total Tax Obligation/General 16,425,641 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 31.0% (20.6% OF TOTAL INVESTMENTS) 750 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 702,090 Project, Series 2005A, 5.350%, 7/01/34 1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,074,460 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15 41 NWI Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 135 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 AA $ 140,395 Development Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 - RAAI Insured 450 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 441,266 Town Center Project, Series 2004, 5.750%, 7/01/34 5,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,690,849 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,200 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,258,740 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+ 483,030 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+ 3,158,264 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+ 1,547,963 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,694,860 460 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 433,173 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 521,824 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,296,120 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: 1,000 5.250%, 7/01/17 7/12 at 100.00 BBB- 1,034,490 1,205 5.250%, 7/01/20 7/12 at 100.00 BBB- 1,235,752 1,275 5.250%, 7/01/21 7/12 at 100.00 BBB- 1,304,363 700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 788,606 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 22,420 Total Tax Obligation/Limited 23,806,245 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 18.6% (12.4% OF TOTAL INVESTMENTS) (4) 10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AAA 10,345 Consolidated General Improvements, Series 1999, 5.000%, 5/15/19 (Pre-refunded 5/15/09) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 106,167 100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 106,274 100 Frederick County, Maryland, General Obligation Public 7/09 at 101.00 AAA 104,038 Facilities Bonds, Series 1999, 5.250%, 7/01/17 (Pre-refunded 7/01/09) 110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 AA (4) 118,369 Development Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 310,008 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 309,177 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 935 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA $ 1,074,352 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 3,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,206,681 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 3,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 3,701,914 Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,109,570 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured (ETM) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 700 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2/12 at 100.00 Aaa 758,219 235 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2/12 at 100.00 BBB- (4) 255,116 880 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 937,402 Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA (4) 2,150,860 Bonds, Series 2002A, 5.125%, 4/01/22 (Pre-refunded 4/01/12) 25 Washington Suburban Sanitary District, Montgomery and 6/11 at 101.00 AAA 26,682 Prince George's Counties, Maryland, General Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17 (Pre-refunded 6/01/11) - ------------------------------------------------------------------------------------------------------------------------------------ 13,285 Total U.S. Guaranteed 14,285,174 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.7% (1.0% OF TOTAL INVESTMENTS) 1,250 Maryland Energy Financing Administration, Revenue Bonds, 2/08 at 100.00 N/R 1,253,050 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.8% (3.9% OF TOTAL INVESTMENTS) 2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,664,011 Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured 600 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AAA 628,770 Series 2006C, 5.000%, 7/01/31 - AMBAC Insured 660 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AAA 691,990 Series 2007D, 5.000%, 7/01/32 - AMBAC Insured 430 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 475,442 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 4,260 Total Water and Sewer 4,460,213 - ------------------------------------------------------------------------------------------------------------------------------------ $ 110,760 Total Long-Term Investments (cost $113,335,247) - 149.0% 114,434,616 =============----------------------------------------------------------------------------------------------------------------------- 43 NWI Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS) $ 875 Maryland Health and Higher Education Facilities Authority, Aa3 $ 875,000 Revenue Bonds, Kennedy Krieger Institute Project, Series 2006, Variable Rate Demand Obligations, 6.000%, 7/01/36 - RAAI Insured (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $875,000) 875,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $114,210,247) - 150.2% 115,309,616 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.6% 480,124 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.8)% (39,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 76,789,740 ==================================================================================================================== (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (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) 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. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 44 NPV Nuveen Virginia Premium Income Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.9% (2.0% OF TOTAL INVESTMENTS) $ 4,640 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB $ 3,854,586 Tobacco Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 4.7% (3.2% OF TOTAL INVESTMENTS) 1,000 Prince William County Industrial Development Authority, Virginia, 10/13 at 101.00 A3 1,029,740 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 520,065 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- 712,922 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,176,328 Revenue Bonds, Public Higher Education Financing Program, Series 2001A, 5.000%, 9/01/26 1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,777,817 Series 2004A, 5.000%, 5/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,955 Total Education and Civic Organizations 6,216,872 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.5% (16.7% OF TOTAL INVESTMENTS) 2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 2,019,820 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 650 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 654,440 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27 4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,174,366 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,000 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 1,069,860 Healthcare Revenue Bonds, Medicorp Health System, Series 2007, 5.250%, 6/15/23 1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,254,238 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,163,880 Hospital Revenue Bonds, Memorial Regional Medical Center, Series 1995, 6.375%, 8/15/18 - MBIA Insured 2,300 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AAA 2,404,719 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,540,905 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 1,791,795 Healthcare Revenue Bonds, Bon Secours Health System, Series 1996, 6.250%, 8/15/20 - MBIA Insured 1,500 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 1,517,625 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 4,841,864 Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured 3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,179,640 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - MBIA Insured 45 NPV Nuveen Virginia Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2006: $ 2,000 5.250%, 6/15/26 6/16 at 100.00 A3 $ 2,042,740 1,010 5.250%, 6/15/31 6/16 at 100.00 A3 1,021,060 1,210 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 1,191,100 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 1,425 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 AA- 1,452,930 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 30,945 Total Health Care 32,320,982 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.4% (2.4% OF TOTAL INVESTMENTS) 1,405 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,461,818 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 519,520 1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,554,510 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,020,420 Vistas GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,405 Total Housing/Multifamily 4,556,268 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.0% (5.4% OF TOTAL INVESTMENTS) 335 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 344,300 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 1,023,330 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 1,433,145 Mortgage Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 2,740 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 2,672,267 Mortgage Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative Minimum Tax) 1,340 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 1,305,669 Mortgage Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 3,900 Virginia Housing Development Authority, Commonwealth 7/16 at 100.00 AAA 3,725,553 Mortgage Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,815 Total Housing/Single Family 10,504,264 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS) 2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,010,260 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 - 4.7% (3.2% OF TOTAL INVESTMENTS) 2,765 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 2,596,307 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37 800 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 731,816 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.875%, 10/01/36 1,495 Henrico County Economic Development Authority, Virginia, GNMA 7/09 at 102.00 AAA 1,568,419 Mortgage-Backed Securities Program Assisted Living Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) 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- $ 97,355 1,345 5.000%, 10/01/35 No Opt. Call BBB- 1,278,086 - ------------------------------------------------------------------------------------------------------------------------------------ 6,505 Total Long-Term Care 6,271,983 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.1% (0.8% OF TOTAL INVESTMENTS) 500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 457,855 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (4) 1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 943,940 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) - ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Materials 1,401,795 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 18.5% (12.6% OF TOTAL INVESTMENTS) Chesapeake, Virginia, General Obligation Water and Sewerage Bonds, Series 2003B: 1,880 5.000%, 6/01/21 6/13 at 100.00 AA 1,969,676 2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,146,891 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 AAA 1,434,403 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 1,526,957 Series 2005, 5.000%, 7/15/16 2,105 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA 2,247,235 Series 2006, 5.000%, 12/01/25 105 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 111,049 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 1,435 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 1,547,561 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,265,687 5.000%, 6/01/21 1,350 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 AA 1,471,244 5.000%, 5/01/16 1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AAA 1,407,130 5.000%, 4/01/15 - MBIA Insured 1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,571,952 5.000%, 7/15/21 - FSA Insured 1,430 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,538,680 Series 2002A, 5.000%, 10/01/17 1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa3 1,250,191 5.000%, 12/01/15 2,155 Virginia Beach, Virginia, General Obligation Bonds, Series 2003B, 5/13 at 100.00 AAA 2,312,164 5.000%, 5/01/15 1,100 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 1,187,098 5.000%, 1/15/20 1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,494,754 Bonds, Series 2001, 5.000%, 6/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 22,870 Total Tax Obligation/General 24,482,672 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 29.8% (20.3% 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 321,768 260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 246,397 1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,414,732 Revenue Bonds, School Facilities Project, Series 2005, 5.000%, 1/01/20 - MBIA Insured 47 NPV Nuveen Virginia Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Cumberland County, Virginia, Certificates of Participation, Series 1997: $ 1,075 6.200%, 7/15/12 No Opt. Call N/R $ 1,127,965 1,350 6.375%, 7/15/17 No Opt. Call N/R 1,506,425 1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AAA 1,073,920 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+ 1,080,910 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+ 2,452,688 2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,279,074 1,660 Front Royal and Warren County Industrial Development Authority, 4/14 at 100.00 AAA 1,757,060 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 1,357,440 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 2,060,603 County Facilities, Series 2005, 5.000%, 6/01/18 - AMBAC Insured 1,185 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,215,431 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,160,200 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 820,100 Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured 5,875 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 2,101,018 Revenue Bonds, Series 2005C, 0.000%, 7/01/28 - AMBAC 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- 267,836 320 5.250%, 7/01/36 7/12 at 100.00 BBB- 321,472 1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,126,095 Lease Revenue Bonds, School Facilities, Series 2003B, 4.375%, 8/01/20 - AMBAC Insured 1,600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AAA 1,685,584 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 5/15 at 100.00 AA+ 1,481,508 Revenue Bonds, Series 2005A, 5.000%, 5/01/22 2,000 Virginia Public School Authority, School Financing Bonds, 1997 8/10 at 101.00 AA+ 2,080,700 Resolution, Series 2000B, 5.000%, 8/01/18 1,625 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 1,770,974 Resolution, Series 2005C, 5.000%, 8/01/17 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2000B: 95 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 99,958 550 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 574,899 1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,823,433 Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,815 Virginia Resources Authority, Infrastructure Revenue Bonds, 11/16 at 100.00 AAA $ 2,960,676 Pooled Loan Bond Program, Series 2006C, 5.000%, 11/01/36 2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,175,660 U.S. Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ 45,225 Total Tax Obligation/Limited 39,344,526 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 10.4% (7.1% OF TOTAL INVESTMENTS) 2,500 Metropolitan Washington D.C. Airports Authority, System Revenue 10/17 at 100.00 AAA 2,503,675 Bonds, Series 2007B, 5.000%, 10/01/35 - AMBAC Insured (Alternative Minimum Tax) 4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,069,479 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 1,000 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 1,049,970 5.000%, 2/01/23 - MBIA Insured 2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 2,800,575 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 1,260 Virginia Port Authority, Revenue Bonds, Port Authority Facilities, 7/13 at 100.00 AAA 1,266,338 Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) 2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,076,640 Bonds, Series 2001A, 5.250%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ 13,260 Total Transportation 13,766,677 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.0% (13.7% OF TOTAL INVESTMENTS) (5) 3,500 Alexandria Industrial Development Authority, Virginia, Fixed Rate 10/10 at 101.00 AAA 3,783,605 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 Bonds, No Opt. Call AAA 827,595 Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) 925 Fairfax County Water Authority, Virginia, Water Revenue Refunding 4/12 at 100.00 AAA 1,004,837 Bonds, Series 2002, 5.375%, 4/01/19 (Pre-refunded 4/01/12) 600 Greater Richmond Convention Center Authority, Virginia, Hotel Tax 6/10 at 101.00 AAA 647,196 Revenue Bonds, Convention Center Expansion Project, Series 2000, 6.125%, 6/15/25 (Pre-refunded 6/15/10) 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 (5) 420,698 800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 900,816 Newport News, Virginia, General Obligation Bonds, General Improvement and Water Projects, Series 2002A: 2,770 5.000%, 7/01/19 (Pre-refunded 7/01/13) 7/13 at 100.00 AA (5) 2,998,802 1,000 5.000%, 7/01/20 (Pre-refunded 7/01/13) 7/13 at 100.00 AA (5) 1,082,600 815 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 Aaa 876,907 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 (Pre-refunded 7/01/12) - FSA Insured 2,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,644,225 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- (5) 794,050 880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB- (5) 950,699 49 NPV Nuveen Virginia Premium Income Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (5) (continued) $ 845 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 881,969 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 475 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 540,227 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: 1,575 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,655,924 3,850 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 4,274,308 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (5) 2,194,900 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 24,395 Total U.S. Guaranteed 26,479,358 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.2% (4.9% 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 1,861,911 1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,959,498 2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,955,236 2,500 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 2,697,250 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 8,780 Total Utilities 9,473,895 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.9% (6.7% 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 112,437 800 5.000%, 4/01/27 4/12 at 100.00 AAA 828,808 1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,823,702 Refunding Bonds, Series 1999, 5.000%, 5/01/28 1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,049,500 Sewerage System Revenue Bonds, Series 2004, 5.000%, 1/01/26 500 Newport News, Virginia, Water Revenue Bonds, Series 2007, 6/17 at 100.00 AAA 496,555 4.500%, 6/01/34 - FSA Insured Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,368,400 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,432,605 2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,400,795 Series 2000, 6.000%, 9/01/24 1,800 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA 1,881,144 Bonds, Series 2005, 5.000%, 10/01/30 1,660 Virginia Resources Authority, Clean Water State Revolving Fund 10/17 at 100.00 AAA 1,669,545 Revenue Bonds, Series 2007, Residuals 1006, 5.697%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 12,575 Total Water and Sewer 13,063,491 - ------------------------------------------------------------------------------------------------------------------------------------ $ 193,870 Total Investments (cost $188,786,243) - 146.6% 193,747,629 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 2,171,175 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.3)% (63,800,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 132,118,804 ==================================================================================================================== 50 FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2007: FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $650,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 44,924 Royal Bank of Canada 900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 77,210 - ------------------------------------------------------------------------------------------------------------------------------------ $122,134 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM-The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index. The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) 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. (5) 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. (6) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 51 NGB Nuveen Virginia Dividend Advantage Municipal Fund Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.9% (3.9% OF TOTAL INVESTMENTS) Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: $ 30 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 29,544 850 5.400%, 5/15/31 5/11 at 100.00 Baa3 810,560 1,660 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 1,379,012 Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 715 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 477,820 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 3,255 Total Consumer Staples 2,696,936 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.3% (4.2% OF TOTAL INVESTMENTS) 500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 505,695 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 514,870 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 850 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 884,111 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- 162,218 320 5.375%, 2/01/29 2/09 at 101.00 BBB- 320,067 500 Virginia College Building Authority, Educational Facilities 7/08 at 101.00 AA 504,370 Revenue Refunding Bonds, Marymount University, Series 1998, 5.100%, 7/01/18 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,830 Total Education and Civic Organizations 2,891,331 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 16.2% (10.8% OF TOTAL INVESTMENTS) 250 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 246,928 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/37 100 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 106,688 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 1,009,640 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 500 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 534,930 Healthcare Revenue Bonds, Medicorp Health System, Series 2007, 5.250%, 6/15/23 500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 501,695 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 820 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AAA 857,335 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 513,635 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 525 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 $ 531,169 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 823,968 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2006: 750 5.250%, 6/15/25 6/16 at 100.00 A3 768,653 360 5.250%, 6/15/31 6/16 at 100.00 A3 363,942 430 Virginia Small Business Financing Authority, Wellmont 9/17 at 100.00 BBB+ 423,283 Health System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 AA- 729,014 Hospital Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 7,250 Total Health Care 7,410,880 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.5% (3.0% OF TOTAL INVESTMENTS) 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 1,038,410 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 Bonds, 10/10 at 100.00 AA+ 1,022,810 Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 2,061,220 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.5% (6.3% OF TOTAL INVESTMENTS) 1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,023,330 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 600 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 573,258 Mortgage Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 960 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 936,269 Mortgage Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative Minimum Tax) 480 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 467,702 Mortgage Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 1,400 Virginia Housing Development Authority, Commonwealth 7/16 at 100.00 AAA 1,337,378 Mortgage Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,440 Total Housing/Single Family 4,337,937 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.1% (0.1% OF TOTAL INVESTMENTS) 50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 50,257 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 - 12.1% (8.1% OF TOTAL INVESTMENTS) 700 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 642,530 Residential Care Facilities Mortgage Revenue Bonds, Westminster-Cantebury of the Blue Ridge, Series 2007, 5.000%, 1/01/31 350 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 336,224 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 1,005 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 943,685 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37 53 NGB Nuveen Virginia Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB $ 466,600 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 540 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 513,135 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 658,287 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 666,673 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 530 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 472,135 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 338,499 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 337,155 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 168,835 Residential Care Facility Revenue Bonds, Westminster- Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 5,850 Total Long-Term Care 5,543,758 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.6% (1.2% OF TOTAL INVESTMENTS) 100 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 91,571 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (4) 20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 B2 20,104 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1999A, 6.550%, 12/01/25 (Alternative Minimum Tax) (4) 220 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 207,667 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) 500 Hopewell Industrial Development Authority, Virginia, No Opt. Call B- 470,555 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 840 Total Materials 789,897 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 16.3% (10.9% OF TOTAL INVESTMENTS) 600 Arlington County, Virginia, General Obligation Bonds, 8/16 at 100.00 AAA 651,570 Series 2006, 5.000%, 8/01/20 500 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 549,265 Series 2005, 5.000%, 7/15/16 700 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA 747,299 Series 2006, 5.000%, 12/01/25 500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 539,220 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 845 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 920,889 Series 2004C, 5.000%, 5/01/16 620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 675,465 5.000%, 7/15/17 - FSA Insured 400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa3 440,596 5.000%, 12/01/15 400 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AAA 431,672 Series 2005, 5.000%, 1/15/20 2,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 2,543,704 Bonds, Series 2001, 5.000%, 6/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 6,990 Total Tax Obligation/General 7,499,680 - ------------------------------------------------------------------------------------------------------------------------------------ 54 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.2% (12.9% OF TOTAL INVESTMENTS) $ 100 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R $ 101,198 Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 538,640 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 115,260 95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 90,030 1,000 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,048,250 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+ 540,455 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 614,000 County Facilities, Series 2005, 5.000%, 6/01/20 - AMBAC Insured 700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 756,070 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 1,020,780 Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,057,030 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 632,094 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 Taxes 10/10 at 101.00 BBB+ 1,035,110 Loan Note, Series 1999A, 6.375%, 10/01/19 500 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 529,110 Bonds, Series 2005A, 5.000%, 5/01/22 350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 361,529 Prince William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 345 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 375,991 1997 Resolution, Series 2005C, 5.000%, 8/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 10,350 Total Tax Obligation/Limited 8,815,547 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 24.5% (16.4% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,064,840 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 1,159,790 General Resolution Revenue Refunding Bonds, Series 1998, 5.500%, 7/01/25 - MBIA Insured 3,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AAA 3,132,597 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 258,270 System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 - MBIA Insured 1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,526,055 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 524,985 5.000%, 2/01/23 - MBIA Insured 55 NGB Nuveen Virginia Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA $ 560,115 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 455 Virginia Port Authority, Revenue Bonds, Port Authority Facilities, 7/13 at 100.00 AAA 457,289 Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) 1,225 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 1,271,942 Revenue Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,263,925 Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,680 Total Transportation 11,219,808 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 23.5% (15.7% OF TOTAL INVESTMENTS) (5) 500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) 553,675 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 (Pre-refunded 1/01/12) 1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,090,680 Series 2001, 5.000%, 7/15/21 - FSA Insured (ETM) 2,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 2,465,278 Bonds, Series 2000, 5.125%, 1/15/21 (Pre-refunded 1/15/11) - FGIC Insured 425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB (5) 476,791 Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A, 6.000%, 6/01/22 (Pre-refunded 6/01/12) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,500 5.500%, 10/01/32 (ETM) 10/10 at 101.00 AAA 1,588,620 1,500 5.500%, 10/01/40 (ETM) 10/10 at 101.00 AAA 1,586,535 340 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 354,875 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 230 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 (5) 242,793 Horse Center Revenue Refunding Bonds, Series 2001B, 6.125%, 7/15/11 (ETM) 950 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 1,080,454 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) 725 Tobacco Settlement Financing Corporation of Virginia, 6/15 at 100.00 AAA 804,902 Tobacco Settlement Asset-Backed Bonds, Series 2005, 5.500%, 6/01/26 (Pre-refunded 6/01/15) 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ (5) 534,345 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 (Pre-refunded 2/01/12) - ------------------------------------------------------------------------------------------------------------------------------------ 9,980 Total U.S. Guaranteed 10,778,948 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.4% (1.6% OF TOTAL INVESTMENTS) 1,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 1,078,900 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.3% (4.9% OF TOTAL INVESTMENTS) $ 2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ $ 2,065,840 Refunding Bonds, Series 1999, 5.000%, 5/01/22 175 Newport News, Virginia, Water Revenue Bonds, Series 2007, 6/17 at 100.00 AAA 173,794 4.500%, 6/01/34 - FSA Insured 500 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA 522,540 Bonds, Series 2005, 5.000%, 10/01/30 595 Virginia Resources Authority, Clean Water State Revolving 10/17 at 100.00 AAA 598,421 Fund Revenue Bonds, Series 2007, Residuals 1006, 5.697%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 3,270 Total Water and Sewer 3,360,595 - ------------------------------------------------------------------------------------------------------------------------------------ $ 68,785 Total Investments (cost $67,506,958) - 149.4% 68,535,694 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.9% 1,350,418 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.3)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 45,886,112 ==================================================================================================================== The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) 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. (5) 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. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 57 NNB Nuveen Virginia Dividend Advantage Municipal Fund 2 Portfolio of INVESTMENTS November 30, 2007 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.2% (2.8% OF TOTAL INVESTMENTS) $ 3,100 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 2,575,263 Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 1,430 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 955,640 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 4,530 Total Consumer Staples 3,530,903 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.7% (4.5% OF TOTAL INVESTMENTS) 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,033,520 Revenue Bonds, National Wildlife Federation, Series 1999, 5.375%, 9/01/29 - MBIA Insured 1,000 Prince William County Industrial Development Authority, Virginia, 10/13 at 101.00 A3 1,029,740 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- 1,527,690 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,059,940 Educational Facilities First Mortgage Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total Education and Civic Organizations 5,650,890 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.0% (16.3% OF TOTAL INVESTMENTS) 1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,514,865 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 450 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 453,074 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27 3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,028,920 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 1,000 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 1,069,860 Healthcare Revenue Bonds, Medicorp Health System, Series 2007, 5.250%, 6/15/23 675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 677,288 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,500 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AAA 1,568,295 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 1,000 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,027,270 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 1,168,571 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,235,952 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Prince William County Industrial Development Authority, 10/08 at 102.00 Aaa $ 1,028,230 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 4,144,380 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/20 - MBIA Insured Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2006: 1,250 5.250%, 6/15/25 6/16 at 100.00 A3 1,281,088 655 5.250%, 6/15/31 6/16 at 100.00 A3 662,172 785 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 772,738 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 AA- 729,014 Hospital Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 19,800 Total Health Care 20,361,717 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 15.6% (10.5% OF TOTAL INVESTMENTS) 7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,659,625 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 500 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 477,715 Mortgage Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 1,755 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 1,711,616 Mortgage Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative Minimum Tax) 870 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 847,711 Mortgage Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 2,600 Virginia Housing Development Authority, Commonwealth 7/16 at 100.00 AAA 2,483,702 Mortgage Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 13,210 Total Housing/Single Family 13,180,369 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 11.6% (7.9% OF TOTAL INVESTMENTS) 1,300 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 1,193,270 Residential Care Facilities Mortgage Revenue Bonds, Westminster-Cantebury of the Blue Ridge, Series 2007, 5.000%, 1/01/31 650 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 624,416 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 1,815 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,704,267 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37 500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 466,600 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 855 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 812,464 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 Prince William, 1/17 at 100.00 N/R 1,222,533 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 1,384,628 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 970 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 864,095 Residential Revenue Bonds, Virginia Lutheran Homes Incorporated, Series 2006, 5.000%, 12/01/39 59 NNB Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 650 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R $ 628,641 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 650 Virginia Beach Development Authority, Virginia, Residential Care 11/15 at 100.00 N/R 626,145 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 313,550 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 10,365 Total Long-Term Care 9,840,609 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.9% (1.3% OF TOTAL INVESTMENTS) 165 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 B2 151,092 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (4) 460 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 434,212 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) 1,000 Hopewell Industrial Development Authority, Virginia, No Opt. Call B- 941,110 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,625 Total Materials 1,526,414 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.0% (15.6% OF TOTAL INVESTMENTS) 500 Arlington County, Virginia, General Obligation Bonds, Series 2006, 8/16 at 100.00 AAA 542,975 5.000%, 8/01/20 1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA 1,891,208 5.500%, 12/01/16 1,000 Loudoun County, Virginia, General Obligation Bonds, Series 2006, 12/16 at 100.00 AAA 1,067,570 5.000%, 12/01/25 1,730 Loudoun County, Virginia, General Obligation Public Improvement 11/11 at 101.00 AAA 1,796,259 Bonds, Series 2001C, 4.500%, 11/01/17 95 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 100,473 Bonds, Series 2002A, 5.250%, 5/01/22 1,000 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,078,440 Bonds, Series 2005B, 5.000%, 6/01/18 40 Portsmouth, Virginia, General Obligation Public Utility Refunding 6/08 at 100.00 AAA 40,248 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 685,601 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,033,180 1,000 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,062,130 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 2,546,904 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,584,046 1,280 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AAA 1,352,934 Series 2002B, 5.000%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 600 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 647,508 5.000%, 1/15/20 1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,573,425 Bonds, Series 2001, 5.000%, 6/01/19 1,420 Virginia Beach, Virginia, General Obligation Refunding and Public 3/12 at 100.00 AAA 1,481,145 Improvement Bonds, Series 2002, 5.000%, 3/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 18,410 Total Tax Obligation/General 19,484,046 - ------------------------------------------------------------------------------------------------------------------------------------ 60 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.8% (12.1% OF TOTAL INVESTMENTS) $ 184 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R $ 186,204 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 1,077,280 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 201,705 165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 156,367 800 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 864,728 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+ 1,895,310 Lease Revenue Refunding Bonds, Public Facility Project, Series 2003, 5.000%, 3/01/19 1,300 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,404,130 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 2,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 680,520 Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured 400 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 404,280 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 AAA 1,057,030 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 1,053,490 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 Revenue 5/15 at 100.00 AA+ 846,576 Bonds, Series 2005A, 5.000%, 5/01/22 685 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 707,564 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+ 2,668,600 1997 Resolution, Series 2001B, 5.000%, 8/01/19 570 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 621,203 1997 Resolution, Series 2005C, 5.000%, 8/01/17 1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,294,247 Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ 15,719 Total Tax Obligation/Limited 15,119,234 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.0% (2.7% OF TOTAL INVESTMENTS) 1,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/12 at 100.00 AAA 1,013,810 Revenue Bonds, Series 2002A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) 1,500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 1,574,955 5.000%, 2/01/23 - MBIA Insured 825 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AAA 829,150 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,325 Total Transportation 3,417,915 - ------------------------------------------------------------------------------------------------------------------------------------ 61 NNB Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) Portfolio of INVESTMENTS November 30, (2007) (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 18.0% (12.1% OF TOTAL INVESTMENTS) (5) $ 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) $ 182,713 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 (Pre-refunded 1/01/12) 1,000 Bristol, Virginia, General Obligation Utility System Revenue Bonds, No Opt. Call AAA 1,103,460 Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) 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 (5) 280,465 600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 675,612 1,000 Newport News, Virginia, General Obligation Bonds, Series 2003B, 11/13 at 100.00 AA (5) 1,087,060 5.000%, 11/01/22 (Pre-refunded 11/01/13) 2,750 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,908,648 Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- (5) 1,188,374 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 (Pre-refunded 7/01/12) Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E: 545 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2/12 at 100.00 Aaa 590,328 455 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2/12 at 100.00 BBB- (5) 493,948 475 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 540,227 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) 1,260 Salem, Virginia, General Obligation Public Improvement Bonds, 1/12 at 100.00 Aa3 (5) 1,362,892 Series 2002, 5.375%, 1/01/23 (Pre-refunded 1/01/12) 1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,165,170 6.250%, 2/01/25 (Pre-refunded 2/01/14) - AMBAC Insured Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: 600 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 630,828 2,700 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 2,997,567 - ------------------------------------------------------------------------------------------------------------------------------------ 13,900 Total U.S. Guaranteed 15,207,292 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.5% (1.7% OF TOTAL INVESTMENTS) 2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 2,157,800 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 18.5% (12.5% OF TOTAL INVESTMENTS) 805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 833,988 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 1,142,150 3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,450,570 325 Newport News, Virginia, Water Revenue Bonds, Series 2007, 6/17 at 100.00 AAA 322,761 4.500%, 6/01/34 - FSA Insured Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,180,375 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,243,050 1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,505,274 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,583,133 62 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,000 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA $ 1,045,080 Bonds, Series 2005, 5.000%, 10/01/30 1,080 Virginia Resources Authority, Clean Water State Revolving 10/17 at 100.00 AAA 1,086,210 Fund Revenue Bonds, Series 2007, Residuals 1006, 5.697%, 10/01/29 (IF) 2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,314,980 Revenue Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 14,755 Total Water and Sewer 15,707,571 - ------------------------------------------------------------------------------------------------------------------------------------ $ 123,139 Total Investments (cost $122,281,465) - 147.8% 125,184,760 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 1,519,955 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (42,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 84,704,715 ==================================================================================================================== The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The AAA ratings shown in the Portfolio of Investments reflects the AAA ratings on certain bonds insured by AMBAC, FGIC or MBIA as of November 30, 2007. As explained earlier in the Portfolio Manager's Comments section of this report, one rating agency has reduced the rating for AMBAC to AA, and one or more rating agencies have placed each of these insurers on "negative credit watch", which may presage one or more rating reductions for such insurer or insurers in the future. If one or more insurers' ratings are reduced below AAA by these rating agencies, it would likely reduce the effective rating of many of the bonds insured by that insurer or insurers. (4) 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. (5) 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. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 63 Statement of ASSETS & LIABILITIES November 30, 2007 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $226,028,351, $90,364,060, $90,949,026 and $114,210,247, respectively) $232,520,358 $91,891,292 $92,586,292 $115,309,616 Cash -- -- -- -- Unrealized appreciation on forward swaps 360,314 122,134 68,631 -- Receivables: Interest 3,997,740 1,601,102 1,547,264 1,810,880 Investments sold 55,689 30,383 25,313 30,376 Other assets 13,319 3,157 692 810 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 236,947,420 93,648,068 94,228,192 117,151,682 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 2,676,590 830,615 521,834 1,039,010 Accrued expenses: Management fees 119,711 32,800 33,111 37,247 Other 33,364 14,760 15,575 16,892 Common share dividends payable 476,200 225,989 230,846 259,820 Preferred share dividends payable 9,567 9,817 11,604 8,973 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 3,315,432 1,113,981 812,970 1,361,942 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $154,531,988 $60,534,087 $61,415,222 $ 76,789,740 ==================================================================================================================================== Common shares outstanding 10,640,076 4,183,675 4,192,551 5,363,909 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.52 $ 14.47 $ 14.65 $ 14.32 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 106,401 $ 41,837 $ 41,926 $ 53,639 Paid-in surplus 147,794,543 59,369,509 59,489,350 75,714,712 Undistributed (Over-distribution of) net investment income 82,055 (72,079) (78,149) (83,557) Accumulated net realized gain (loss) from investments and derivative transactions (303,332) (454,546) 256,198 5,577 Net unrealized appreciation (depreciation) of investments and derivative transactions 6,852,321 1,649,366 1,705,897 1,099,369 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $154,531,988 $60,534,087 $61,415,222 $ 76,789,740 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 64 VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $188,786,243, $67,506,958 and $122,281,465, respectively) $193,747,629 $68,535,694 $125,184,760 Cash -- 461,710 28,679 Unrealized appreciation on forward swaps 122,134 -- -- Receivables: Interest 3,113,536 1,091,634 1,887,691 Investments sold -- -- -- Other assets 15,024 3,076 1,662 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 196,998,323 70,092,114 127,102,792 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 529,862 -- -- Accrued expenses: Management fees 100,614 24,769 39,751 Other 28,307 7,873 14,343 Common share dividends payable 411,088 167,825 325,666 Preferred share dividends payable 9,648 5,535 18,317 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,079,519 206,002 398,077 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS APPLICABLE TO COMMON SHARES $132,118,804 $45,886,112 $ 84,704,715 ==================================================================================================================================== Common shares outstanding 8,933,535 3,132,731 5,729,845 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.79 $ 14.65 $ 14.78 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 89,335 $ 31,327 $ 57,298 Paid-in surplus 125,793,718 44,438,584 81,336,798 Undistributed (Over-distribution of) net investment income 45,819 (72,812) (145,156) Accumulated net realized gain (loss) from investments and derivative transactions 1,106,412 460,277 552,480 Net unrealized appreciation (depreciation) of investments and derivative transactions 5,083,520 1,028,736 2,903,295 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $132,118,804 $45,886,112 $ 84,704,715 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 65 Statement of OPERATIONS Six Months Ended November 30, 2007 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 5,595,363 $ 2,277,755 $2,249,285 $ 2,681,540 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 727,992 292,010 294,749 365,193 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 10,418 874 586 579 Interest expense on floating rate obligations 8,358 3,382 3,382 4,179 Custodian's fees and expenses 24,479 16,796 19,557 19,345 Trustees' fees and expenses 2,460 1,028 1,226 1,364 Professional fees 7,803 5,144 5,090 5,789 Shareholders' reports - printing and mailing expenses 21,974 9,903 9,870 11,044 Stock exchange listing fees 4,848 178 178 228 Investor relations expense 10,170 5,414 4,666 5,762 Other expenses 9,429 7,141 7,119 7,536 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 937,104 386,994 391,547 474,916 Custodian fee credit (15,993) (6,022) (7,485) (9,083) Expense reimbursement -- (92,148) (108,491) (168,974) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 921,111 288,824 275,571 296,859 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 4,674,252 1,988,931 1,973,714 2,384,681 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (70,642) 171,171 224,864 133,137 Forward swaps -- (18,725) -- -- Change in net unrealized appreciation (depreciation) of: Investments (929,513) (1,082,427) (918,690) (1,056,154) Forward swaps 360,314 161,331 68,631 -- ==================================================================================================================================== Net realized and unrealized gain (loss) (639,841) (768,650) (625,195) (923,017) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,292,167) (512,891) (538,866) (639,874) From accumulated net realized gains -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,292,167) (512,891) (538,866) (639,874) ==================================================================================================================================== Net increase (decrease) in net assets applicable to Common shares from operations $ 2,742,244 $ 707,390 $ 809,653 $ 821,790 ==================================================================================================================================== See accompanying notes to financial statements. 66 VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 4,703,565 $ 1,713,223 $ 3,100,339 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 612,346 221,040 400,649 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 8,962 512 701 Interest expense on floating rate obligations -- -- -- Custodian's fees and expenses 37,188 11,203 25,912 Trustees' fees and expenses 2,418 896 1,585 Professional fees 7,778 4,789 6,010 Shareholders' reports - printing and mailing expenses 18,827 6,887 9,591 Stock exchange listing fees 4,881 133 244 Investor relations expense 11,207 4,031 7,066 Other expenses 7,839 6,681 7,680 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 801,442 291,268 517,096 Custodian fee credit (7,560) (6,464) (4,563) Expense reimbursement -- (69,752) (158,077) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 793,882 215,052 354,456 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 3,909,683 1,498,171 2,745,883 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments 463,272 63,825 149,933 Forward swaps (18,725) -- -- Change in net unrealized appreciation (depreciation) of: Investments (1,464,961) (1,117,061) (1,845,485) Forward swaps 161,331 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (859,083) (1,053,236) (1,695,552) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,068,306) (390,050) (728,280) From accumulated net realized gains -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,068,306) (390,050) (728,280) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 1,982,294 $ 54,885 $ 322,051 ==================================================================================================================================== See accompanying notes to financial statements. 67 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 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,674,252 $ 9,341,191 $ 1,988,931 $ 3,974,853 $ 1,973,714 $ 3,931,107 Net realized gain (loss) from: Investments (70,642) 19,964 171,171 137,858 224,864 176,432 Forward swaps -- -- (18,725) -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (929,513) 1,306,051 (1,082,427) 379,809 (918,690) 233,703 Forward swaps 360,314 -- 161,331 (39,197) 68,631 -- Distributions to Preferred Shareholders: From net investment income (1,292,167) (2,475,539) (512,891) (986,560) (538,866) (969,809) From accumulated net realized gains -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 2,742,244 8,191,667 707,390 3,466,763 809,653 3,371,433 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,245,224) (7,114,011) (1,468,336) (3,120,217) (1,471,585) (3,190,218) From accumulated net realized gains -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,245,224) (7,114,011) (1,468,336) (3,120,217) (1,471,585) (3,190,218) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 30,834 92,621 33,604 152,937 12,749 156,976 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 30,834 92,621 33,604 152,937 12,749 156,976 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (472,146) 1,170,277 (727,342) 499,483 (649,183) 338,191 Net assets applicable to Common shares at the beginning of period 155,004,134 153,833,857 61,261,429 60,761,946 62,064,405 61,726,214 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $154,531,988 $155,004,134 $60,534,087 $61,261,429 $61,415,222 $62,064,405 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 82,055 $ (54,806) $ (72,079) $ (79,783) $ (78,149) $ (41,412) ==================================================================================================================================== See accompanying notes to financial statements. 68 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 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,384,681 $ 4,702,597 $ 3,909,683 $ 7,820,312 $ 1,498,171 $ 3,009,500 Net realized gain (loss) from: Investments 133,137 120,873 463,272 662,460 63,825 467,890 Forward swaps -- 33,256 (18,725) -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (1,056,154) 907,283 (1,464,961) 53,189 (1,117,061) (52,127) Forward swaps -- (211,923) 161,331 (39,197) -- -- Distributions to Preferred Shareholders: From net investment income (639,874) (1,185,502) (1,068,306) (2,029,334) (390,050) (757,118) From accumulated net realized gains -- -- -- (38,016) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 821,790 4,366,584 1,982,294 6,429,414 54,885 2,668,145 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,689,632) (3,570,184) (2,840,730) (6,247,006) (1,099,454) (2,464,212) From accumulated net realized gains -- -- -- (191,731) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,689,632) (3,570,184) (2,840,730) (6,438,737) (1,099,454) (2,464,212) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 17,897 34,058 77,204 282,861 22,795 78,442 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 17,897 34,058 77,204 282,861 22,795 78,442 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (849,945) 830,458 (781,232) 273,538 (1,021,774) 282,375 Net assets applicable to Common shares at the beginning of period 77,639,685 76,809,227 132,900,036 132,626,498 46,907,886 46,625,511 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $76,789,740 $77,639,685 $132,118,804 $132,900,036 $45,886,112 $46,907,886 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (83,557) $ (138,732) $ 45,819 $ 45,172 $ (72,812) $ (81,479) ==================================================================================================================================== See accompanying notes to financial statements. 69 Statement of CHANGES in NET ASSETS (continued) (Unaudited) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------------------- SIX MONTHS YEAR ENDED ENDED 11/30/07 5/31/07 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,745,883 $ 5,503,149 Net realized gain (loss) from: Investments 149,933 658,811 Forward swaps -- -- Change in net unrealized appreciation (depreciation) of: Investments (1,845,485) (33,280) Forward Swaps -- -- Distributions to Preferred Shareholders: From net investment income (728,280) (1,363,368) From accumulated net realized gains -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 322,051 4,765,312 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,045,280) (4,420,783) From accumulated net realized gains -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,045,280) (4,420,783) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 45,851 150,558 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 45,851 150,558 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (1,677,378) 495,087 Net assets applicable to Common shares at the beginning of period 86,382,093 85,887,006 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $84,704,715 $86,382,093 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (145,156) $ (117,479) ==================================================================================================================================== See accompanying notes to financial statements. 70 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. If the pricing service is unable to supply a price for a municipal bond or forward swap 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 or derivative instrument is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the investment. 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/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, 2007, there were no such outstanding purchase commitments in any of the 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. 71 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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. 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 ================================================================================ 72 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. 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"). A Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates, as well as any shortfalls in interest cash flows. The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investment in a self-deposited inverse floater, recourse trust or credit recovery swap 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 on floating rate obligations" in the Statement of Operations. During the six months ended November 30, 2007, 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, 2007. The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the six months ended November 30, 2007, 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 $428,415 $173,355 $173,355 $214,208 Average annual interest rate and fees 3.89% 3.89% 3.89% 3.89% ================================================================================================================== 73 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) Forward Swap Transactions The Funds are authorized to invest in forward interest rate swap transactions. Each Fund's 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. Maryland Premium Income (NMY), Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR) and Virginia Premium Income (NPV) were the only Funds to invest in forward interest rate swap transactions during the six months ended November 30, 2007. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which the Fund overdraws its account at the custodian bank. 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. 74 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 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 - ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 2,122 6,252 2,314 9,782 863 9,920 ================================================================================================================= 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 11/30/07 5/31/07 11/30/07 5/31/07 11/30/07 5/31/07 - ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 1,239 2,324 5,228 18,377 1,490 4,617 ================================================================================================================= VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------------- SIX MONTHS YEAR ENDED ENDED 11/30/07 5/31/07 - ----------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 3,015 9,265 ================================================================================================================= 3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended November 30, 2007, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ----------------------------------------------------------------------------------------------------------------- Purchases $21,514,424 $6,773,387 $8,318,665 $10,166,624 Sales and maturities 23,110,325 8,386,681 9,732,521 10,896,769 ================================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Purchases $18,964,830 $4,709,429 $ 8,559,962 Sales and maturities 21,877,646 4,757,060 10,399,062 ================================================================================================================= 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. 75 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) At November 30, 2007, 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 $226,106,610 $90,368,790 $90,996,315 $114,287,075 ================================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Cost of investments $188,450,250 $67,496,376 $122,240,450 ================================================================================================================= Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2007, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ----------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 7,985,037 $2,364,380 $2,440,353 $ 2,128,892 Depreciation (1,571,289) (841,878) (850,376) (1,106,351) - ----------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 6,413,748 $1,522,502 $1,589,977 $ 1,022,541 ================================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 7,324,085 $ 2,075,168 $ 4,554,836 Depreciation (2,026,706) (1,035,850) (1,610,526) - ----------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 5,297,379 $ 1,039,318 $ 2,944,310 ================================================================================================================= The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2007, 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 * $258,179 $142,245 $172,965 $127,885 Undistributed net ordinary income ** 69,718 -- -- 3,541 Undistributed net long-term capital gains -- -- 128,819 -- ================================================================================================================= 76 VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $262,579 $ 77,723 $167,225 Undistributed net ordinary income ** 8,291 3,355 1,499 Undistributed net long-term capital gains 661,863 396,454 408,716 ================================================================================================================= * Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 1, 2007, paid on June 1, 2007. ** 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, 2007, 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 $9,664,847 $4,128,452 $4,166,021 $4,771,527 Distributions from net ordinary income ** -- -- 6,683 -- Distributions from net long-term capital gains -- -- 562 -- ================================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $8,317,694 $3,260,186 $5,809,897 Distributions from net ordinary income ** -- -- -- Distributions from net long-term capital gains 229,747 -- -- ================================================================================================================= ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At May 31, 2007, 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 PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 3 (NMY) (NFM) (NWI) - -------------------------------------------------------------------------------- Expiration year: 2009 $ -- $ 774 $ -- 2010 -- 37,159 -- 2011 -- -- -- 2012 -- 430,282 -- 2013 -- 15,613 -- 2014 -- 62,054 8,870 2015 28,576 -- -- - -------------------------------------------------------------------------------- Total $28,576 $545,882 $8,870 ================================================================================ Maryland Dividend Advantage (NFM) elected to defer net realized losses from investments incurred from November 1, 2006 through May 31, 2007 ("post-October losses") in accordance with federal income tax regulations. Post-October losses of $9,857 were treated as having arisen on the first day of the current taxable year. 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. 77 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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 ================================================================================ 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 tables below. As of November 30, 2007, the complex-level fee rate was .1837%. 78 Effective August 20, 2007, the complex-level fee schedule is as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL - -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ Prior to August 20, 2007, the complex-level fee schedule was as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL - -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1698 $125 billion .1617 $200 billion .1536 $250 billion .1509 $300 billion .1490 ================================================================================ (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 preferred stock issued by or borrowings by the Nuveen funds) of Nuveen-sponsored funds in the U.S. 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. 79 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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 their fees and expenses beyond January 31, 2011. For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for any portion of its fees and expenses beyond September 30, 2010. 80 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. Agreement and Plan of Merger On June 20, 2007, Nuveen Investments announced that it had entered into a definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City Investments, Inc. ("Windy City"), a corporation formed by investors led by Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy City would acquire Nuveen Investments. Madison Dearborn is a private equity investment firm based in Chicago, Illinois. The merger was consummated on November 13, 2007. The consummation of the merger was deemed to be an "assignment" (as that term is defined in the Investment Company Act of 1940) of the investment management agreement between each Fund and the Adviser, and resulted in the automatic termination of each Fund's agreement. The Board of Trustees of each Fund considered and approved a new investment management agreement with the Adviser at the same fee rate. The new ongoing agreement was approved by the shareholders of each Fund and took effect on November 13, 2007. The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As a result, Merrill Lynch is an indirect "affiliated person" (as that term is defined in the Investment Company Act of 1940) of each Fund. Certain conflicts of interest may arise as a result of such indirect affiliation. For example, the Funds are generally prohibited from entering into principal transactions with Merrill Lynch and its affiliates. The Adviser does not believe that any such prohibitions or limitations as a result of Merrill Lynch's affiliation with significantly impact the ability of the Funds to pursue their investment objectives and policies. 6. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 Effective November 30, 2007, the Funds adopted Financial Accounting Standards Board (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 Funds' 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. Management of the Funds has concluded that there are no significant uncertain tax positions that require recognition in the Funds' financial statements. Consequently, the adoption of FIN 48 had no 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, 2007, management does 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. 81 Notes to FINANCIAL STATEMENTS (continued) (Unaudited) 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 31, 2007, to shareholders of record on December 15, 2007, as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ----------------------------------------------------------------------------------------------------------------- Dividend per share $.0495 $.0585 $.0585 $.0525 ================================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Dividend per share $.0530 $.0565 $.0595 ================================================================================================================= At the same time, the following Funds declared capital gains and/or ordinary income distributions as follows: MARYLAND MARYLAND PREMIUM DIVIDEND INCOME ADVANTAGE 2 (NMY) (NZR) - ----------------------------------------------------------------------------------------------------------------- Capital gains distribution per share $ -- $.0327 Net ordinary income distribution per share* .0074 .0016 ================================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ----------------------------------------------------------------------------------------------------------------- Capital gains distribution per share $.0863 $.0977 $.0570 Net ordinary income distribution per share* .0007 .0069 .0029 ================================================================================================================= * Net ordinary income consists of taxable market discount income and net short-term capital gains, if any 82 Financial HIGHLIGHTS (Unaudited) 83 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: 2008(b) $14.57 $ .44 $ (.06) $(.12) $ -- $ .26 $(.31) $ -- $(.31) 2007 14.47 .88 .12 (.23) -- .77 (.67) -- (.67) 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) MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 14.65 .48 (.19) (.12) -- .17 (.35) -- (.35) 2007 14.57 .95 .12 (.24) -- .83 (.75) -- (.75) 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) ============================================================================================================================== Total Returns -------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================= MARYLAND PREMIUM INCOME (NMY) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.52 $12.71 (12.37)% 1.78% 2007 -- 14.57 14.84 6.96 5.35 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 MARYLAND DIVIDEND ADVANTAGE (NFM) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.47 13.02 (12.61) 1.20 2007 -- 14.65 15.28 5.51 5.74 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 ================================================================================= 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: 2008(b) $154,532 1.22%*** 1.21%*** 6.08%*** 1.20%*** 1.19%*** 6.10%*** 9% 2007 155,004 1.27 1.23 5.95 1.26 1.22 5.96 13 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 MARYLAND DIVIDEND ADVANTAGE (NFM) - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 60,534 1.28*** 1.27*** 6.27*** .96*** .95*** 6.59*** 7 2007 61,261 1.30 1.26 6.06 .93 .89 6.43 12 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 =================================================================================================================================== 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: 2008(b) $79,100 $25,000 $73,841 $ -- $ -- 2007 79,100 25,000 73,990 2,800 84,609 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 -- -- MARYLAND DIVIDEND ADVANTAGE (NFM) - -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 32,000 25,000 72,292 -- -- 2007 32,000 25,000 72,860 1,133 83,314 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 -- -- ================================================================================ * 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + 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, 2007. See accompanying notes to financial statements. 84-85 spread Financial HIGHLIGHTS (continued) (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 DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $14.81 $.47 $ (.15) $(.13) $ -- $ .19 $(.35) $ -- $(.35) 2007 14.76 .94 .10 (.23) -- .81 (.76) -- (.76) 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) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 14.48 .44 (.16) (.12) -- .16 (.32) -- (.32) 2007 14.33 .88 .16 (.22) -- .82 (.67) -- (.67) 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 Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================= MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.65 $13.26 (11.59)% 1.32% 2007 -- 14.81 15.38 9.32 5.56 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.32 12.63 (12.25) 1.10 2007 -- 14.48 14.74 11.47 5.75 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: 2008(b) $61,415 1.28%*** 1.27%*** 6.07%*** .90%*** .89%*** 6.45%*** 9% 2007 62,064 1.32 1.28 5.86 .90 .86 6.28 10 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 76,790 1.24*** 1.23*** 5.77*** .78*** .77*** 6.24*** 9 2007 77,640 1.28 1.24 5.52 .79 .75 6.01 11 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: 2008(b) $32,000 $25,000 $72,981 $ -- $ -- 2007 32,000 25,000 73,488 1,133 84,022 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 -- -- MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 39,000 25,000 74,224 -- -- 2007 39,000 25,000 74,769 1,400 84,314 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 -- -- ================================================================================ * 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + 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, 2007. (c) For the period September 25, 2002 (commencement of operations) through May 31, 2003. See accompanying notes to financial statements. 86-87 spread Financial HIGHLIGHTS (continued) (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 =============================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $14.89 $ .44 $ (.10) $(.12) $ -- $.22 $(.32) $ -- $ (.32) 2007 14.89 .88 .07 (.23) --* .72 (.70) (.02) (.72) 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) VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 14.98 .48 (.34) (.12) -- .02 (.35) -- (.35) 2007 14.91 .96 .14 (.24) -- .86 (.79) -- (.79) 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) =============================================================================================================================== Total Returns -------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================= VIRGINIA PREMIUM INCOME (NPV) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.79 $13.29 (10.80)% 1.49% 2007 -- 14.89 15.24 7.18 4.89 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) -- 14.65 13.40 (21.59) .16 2007 -- 14.98 17.51 7.24 5.82 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 ================================================================================= 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 ==================================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) $132,119 1.22%**** 1.22%**** 5.95%**** 1.21%**** 1.21%**** 5.96%**** 10% 2007 132,900 1.20 1.20 5.80 1.19 1.19 5.82 16 2006 132,626 1.19 1.19 5.75 1.17 1.17 5.77 16 2005 140,340 1.20 1.20 5.98 1.19 1.19 5.99 17 2004 132,122 1.20 1.20 6.33 1.19 1.19 6.34 14 2003 140,223 1.25 1.25 6.61 1.24 1.24 6.62 17 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2008(b) 45,886 1.27**** 1.27**** 6.20**** .94**** .94**** 6.53**** 7 2007 46,908 1.27 1.27 5.99 .90 .90 6.36 23 2006 46,626 1.26 1.26 5.93 .82 .82 6.38 16 2005 48,474 1.28 1.28 6.13 .81 .81 6.59 15 2004 44,988 1.24 1.24 6.39 .77 .77 6.86 7 2003 48,102 1.28 1.28 6.45 .81 .81 6.92 10 ==================================================================================================================================== 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 ================================================================================ VIRGINIA PREMIUM INCOME (NPV) - -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $63,800 $25,000 $76,771 $ -- $ -- 2007 63,800 25,000 77,077 -- -- 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 -- -- VIRGINIA DIVIDEND ADVANTAGE (NGB) - -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) 24,000 25,000 72,798 -- -- 2007 24,000 25,000 73,862 -- -- 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 -- -- ================================================================================ * Per share Distributions from Capital Gains to Preferred Shareholders rounds to less than $.01 per share. ** 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. **** Annualized. + 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, 2007. See accompanying notes to financial statements. 88-89 spread Financial HIGHLIGHTS (continued) (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 =============================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $15.08 $.48 $ (.29) $(.13) $ -- $ .06 $(.36) $ -- $ (.36) 2007 15.02 .96 .11 (.24) -- .83 (.77) -- (.77) 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) =============================================================================================================================== Total Returns -------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================= VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - --------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $ -- $14.78 $13.90 (14.87)% .40% 2007 -- 15.08 16.73 6.96 5.60 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 ================================================================================= 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 =================================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $84,705 1.22%*** 1.22%*** 6.10%*** .84%*** .84%*** 6.48%*** 7% 2007 86,382 1.21 1.21 5.89 .78 .78 6.31 19 2006 85,887 1.19 1.19 5.75 .73 .73 6.21 10 2005 89,626 1.19 1.19 5.74 .74 .74 6.19 13 2004 84,248 1.20 1.20 5.99 .74 .74 6.44 16 2003 91,065 1.21 1.21 6.01 .75 .75 6.47 15 =================================================================================================================================== 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 ================================================================================ VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - -------------------------------------------------------------------------------- Year Ended 5/31: 2008(b) $42,000 $25,000 $75,419 $ -- $ -- 2007 42,000 25,000 76,418 -- -- 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 -- -- ================================================================================ * 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Annualized. + 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, 2007. See accompanying notes to financial statements. 90-91 spread Annual Investment Management Agreement APPROVAL PROCESS The Board Members are responsible for overseeing the performance of the investment adviser to the Funds and determining whether to continue the advisory arrangements. At the annual review meeting held on May 21, 2007 (the "May Meeting"), the Board Members of the Funds, including the Independent Board Members, unanimously approved the continuance of the Investment Management Agreement between each Fund (each, a "Fund") and Nuveen Asset Management ("NAM"). The foregoing Investment Management Agreements with NAM are hereafter referred to as the "Original Investment Management Agreements." Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent company of NAM, entered into a merger agreement providing for the acquisition of Nuveen by Windy City Investments, Inc., a corporation formed by investors led by Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the "Transaction"). Each Original Investment Management Agreement, as required by Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for its automatic termination in the event of its "assignment" (as defined in the 1940 Act). Any change in control of the adviser is deemed to be an assignment. The consummation of the Transaction will result in a change of control of NAM as well as its affiliated sub-advisers and therefore cause the automatic termination of each Original Investment Management Agreement, as required by the 1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on July 31, 2007 (the "July Meeting"), the Board Members, including the Independent Board Members, unanimously approved new Investment Management Agreements (the "New Investment Management Agreements") with NAM on behalf of each Fund to take effect immediately after the Transaction or shareholder approval of the new advisory contracts, whichever is later. The 1940 Act also requires that each New Investment Management Agreement be approved by the respective Fund's shareholders in order for it to become effective. Accordingly, to ensure continuity of advisory services, the Board Members, including the Independent Board Members, unanimously approved Interim Investment Management Agreements to take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements. Because the information provided and considerations made at the annual review continue to be relevant with respect to the evaluation of the New Investment Management Agreements, the Board considered the foregoing as part of its deliberations of the New Investment Management Agreements. Accordingly, as indicated, the discussions immediately below outline the materials and information presented to the Board in connection with the Board's prior annual review and the analysis undertaken and the conclusions reached by Board Members when determining to continue the Original Investment Management Agreements. I. Approval of the Original Investment Management Agreements During the course of the year, the Board received a wide variety of materials relating to the services provided by NAM and the performance of the Funds. At each of its quarterly meetings, the Board reviewed investment performance and various matters relating to the operations of the Funds and other Nuveen funds, including the compliance program, shareholder services, valuation, custody, distribution and other information relating to the nature, extent and quality of services provided by NAM. Between the regularly scheduled quarterly meetings, the Board Members received information on particular matters as the need arose. In preparation for their considerations at the May Meeting, the Independent Board Members received extensive materials, well in advance of the meeting, which outlined or are related to, among other things: [] the nature, extent and quality of services provided by NAM; [] the organization and business operations of NAM, including the responsibilities of various departments and key personnel; 92 [] each Fund's past performance as well as the Fund's performance compared to funds with similar investment objectives based on data and information provided by an independent third party and to customized benchmarks; [] the profitability of Nuveen and certain industry profitability analyses for unaffiliated advisers; [] the expenses of Nuveen in providing the various services; [] the advisory fees and total expense ratios of each Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by an independent third party (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") of the respective Fund (as applicable); [] the advisory fees NAM assesses to other types of investment products or clients; [] the soft dollar practices of NAM, if any; and [] from independent legal counsel, a legal memorandum describing among other things, applicable laws, regulations and duties in reviewing and approving advisory contracts. At the May Meeting, NAM made a presentation to, and responded to questions from, the Board. Prior to and after the presentations and reviewing the written materials, the Independent Board Members met privately with their legal counsel to review the Boardduties in reviewing advisory contracts and considering the renewal of the advisory contracts. The Independent Board Members, in consultation with independent counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission ("SEC") directives relating to the renewal of advisory contracts. As outlined in more detail below, the Board Members considered all factors they believed relevant with respect to each Fund, including, but not limited to, the following: (a) the nature, extent and quality of the services to be provided by NAM; (b) the investment performance of the Fund and NAM; (c) the costs of the services to be provided and profits to be realized by Nuveen and its affiliates; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of the Fund's investors. In addition, as noted, the Board Members met regularly throughout the year to oversee the Funds. In evaluating the Original Investment Management Agreements, the Board Members also relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year. It is with this background that the Board Members considered each Original Investment Management Agreement. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering the renewal of the Original Investment Management Agreements, the Board Members considered the nature, extent and quality of NAM's services. The Board Members reviewed materials outlining, among other things, Nuveen's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and, any initiatives Nuveen had taken for the municipal fund product line. As noted, at the annual review, the Board Members were already familiar with the organization, operations and personnel of NAM due to the Board Members' experience in governing the respective Funds and working with NAM on matters relating to the Funds. With respect to personnel, the Board Members recognized NAM's investment in additional qualified personnel throughout the various groups in the organization and recommended to NAM that it continue to review staffing needs as necessary. In addition, the Board Members reviewed materials describing the current status and, in particular, the developments in 2006 with respect to NAM's investment process, investment strategies (including additional tools used in executing such strategies), personnel (including portfolio management and research teams), trading process, hedging activities, risk management operations (e.g., reviewing credit quality, duration limits, and derivatives use, as applicable), and investment operations (such as enhancements to trading procedures, pricing procedures, and client services). The Board Members recognized NAM's investment of resources and efforts to continue to enhance and refine its investment process. In addition to advisory services, the Independent Board Members considered the quality of administrative and non-advisory services provided by NAM and noted that NAM and its affiliates provide the Funds with a wide variety of services and officers and other personnel as are necessary for the operations of the Funds, including: 93 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) [] product management; [] fund administration; [] oversight by shareholder services and other fund service providers; [] administration of Board relations; [] regulatory and portfolio compliance; and [] legal support. As the Funds operate in a highly regulated industry and given the importance of compliance, the Board Members considered, in particular, Nuveen's compliance activities for the Funds and enhancements thereto. In this regard, the Board Members recognized the quality of Nuveen's compliance team. The Board Members further noted Nuveen's negotiations with other service providers and the corresponding reduction in certain service providers' fees at the May Meeting. In addition to the foregoing services, the Board Members also noted the additional services that NAM or its affiliates provide to Nuveen's closed-end funds, including, in particular, its secondary market support activities. The Board Members recognized Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include: [] maintaining shareholder communications; [] providing advertising for the Nuveen closed-end funds; [] maintaining its closed-end fund website; [] maintaining continual contact with financial advisers; [] providing educational symposia; [] conducting research with investors and financial analysis regarding closed-end funds; and [] evaluating secondary market performance. With respect to the Nuveen closed-end funds that utilize leverage through the issuance of preferred shares ("Preferred Shares"), the Board Members noted Nuveen's continued support for the holders of Preferred Shares by, among other things: [] maintaining an in-house trading desk; [] maintaining a product manager for the Preferred Shares; [] developing distribution for Preferred Shares with new market participants; [] maintaining an orderly auction process; [] managing leverage and risk management of leverage; and [] maintaining systems necessary to test compliance with rating agency criteria. Based on their review, the Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Original Investment Management Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM At the May Meeting, the Board considered the investment performance for each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent third party (as described below). The Board Members also reviewed the respective Fund's portfolio level performance (which does not reflect fund level fees and expenses, and leverage) against customized benchmarks, described in further detail below. In evaluating the performance information during the annual review at the May Meeting, in certain instances, the Board Members noted that the closest Performance Peer Group for a fund may not adequately reflect 94 such fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such fund's performance with that of the Performance Peer Group. With respect to state-specific municipal funds, the Board Members also recognized that certain funds do not have a corresponding state-specific Performance Peer Group in which case their performance is measured against a more general municipal category for various states. With respect to municipal closed-end funds, funds that do not have corresponding state-specific Performance Peer Groups are from states other than New York, California, Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be so small or the Nuveen funds may dominate the category to such an extent that performance information for such funds was also compared to the more general category for all states (other than New York and California). The Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group for the one-, three- and five-year periods (as applicable) ending December 31, 2006. The Board Members also reviewed the Fund's portfolio level performance (which does not reflect fund level fees and expenses, and leverage) compared to customized portfolio level benchmarks for the one- and three-year periods ending December 31, 2006 (as applicable). The analysis was used to assess the efficacy of investment decisions against appropriate measures of risk and total return, within specific market segments. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. Based on their review, the Board Members determined that each Fund's investment performance over time had been satisfactory, subject to the following. With respect to various municipal closed-end funds, the Board Members noted relative total return underperformance in recent years compared to peers. The Board Members reviewed materials and discussed with NAM the factors contributing to the shift in performance including, among other things, the degree of risk undertaken by peers compared to the municipal closed-end funds (such as through the increased use of leverage or taking concentrated positions in high risk credits). In addition, the Board Members also considered a fund's dividend performance and the extent of any secondary market discounts. The Board Members noted NAM's efforts to evaluate the factors affecting performance and determine whether modification to a fund's investment strategy is necessary or appropriate, and concluded that they were satisfied with the steps being taken. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES During the annual review, in evaluating the management fees and expenses of a Fund, the Board reviewed, among other things, the Fund's advisory fees (net and gross management fees) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as comparisons to the gross management fees (before waivers), net management fees (after waivers) and total expense ratios (before and after waivers) of comparable funds in the Peer Universe and the Peer Group. In reviewing the fee schedule for a Fund, the Board Members considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain funds launched since 1999). The Board Members further reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In certain cases, due to the small number of peers in the Peer Universe, the Peer Universe and Peer Group had significant overlap or even consisted entirely of the same unaffiliated funds. In reviewing the comparisons of fee and expense information, the Board Members recognized that in certain cases, the fund size relative to peers, the small size and odd composition of the Peer Group (including differences in objectives and strategies), expense anomalies, timing of information used or other factors impacting the comparisons thereby limited some of the usefulness of the comparative data. The Board Members also considered the differences in the use of leverage. Based on their review of the fee and expense information provided, the Board Members determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS At the annual review, the Board Members further reviewed data comparing the advisory fees of NAM with fees NAM charges to other clients. With respect to municipal funds, such clients include NAM's municipal separately managed accounts. In general, the advisory fees charged for separate accounts are 95 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) somewhat lower than the advisory fees assessed to the Funds. The Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. As described in further detail above, such additional services include, but are not limited to: product management, fund administration, oversight of third party service providers, administration of Board relations, and legal support. The Board Members noted that the Funds operate in a highly regulated industry requiring extensive compliance functions compared to other investment products. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Board Members believe such facts justify the different levels of fees. 3. PROFITABILITY OF NUVEEN In conjunction with its review of fees, the Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. At the annual review, the Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last three years, the allocation methodology used in preparing the profitability data as well as the 2006 Annual Report for Nuveen. The Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Board Members noted the enhanced dialogue and information regarding profitability with NAM during the year, including more frequent meetings and updates from Nuveen's corporate finance group. The Board Members also reviewed data comparing Nuveen's profitability with other fund sponsors prepared by three independent third party service providers as well as comparisons of the revenues, expenses and profit margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. In reviewing profitability, the Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors, including the allocation of expenses. Further, the Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. Last year, the Board Members also designated an Independent Board Member as a point person for the Board to review the methodology determinations during the year and any refinements thereto, which relevant information produced from such process was reported to the full Board. In reviewing profitability, the Board Members recognized Nuveen's increased investment in its fund business. Based on its review, the Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Board Members determined that the advisory fees and expenses of the Funds were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Board Members recognized the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure the shareholders share in these benefits, the Board Members reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees. In addition to advisory fee breakpoints, the Board also approved a complex-wide fee 96 arrangement in 2004. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. In evaluating the complex-wide fee arrangement, the Board Members noted that the last complex-wide asset level breakpoint for the complex-wide fee schedule was at $91 billion and that the Board Members anticipated further review and/or negotiations prior to the assets of the Nuveen complex reaching such threshold. Based on their review, the Board Members concluded that the breakpoint schedule and complex-wide fee arrangement were acceptable and desirable in providing benefits from economies of scale to shareholders, subject to further evaluation of the complex-wide fee schedule as assets in the complex increase. See Section II, Paragraph D - "Approval of the New Investment Management Agreements - Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for information regarding subsequent modifications to the complex-wide fee. E. INDIRECT BENEFITS In evaluating fees, the Board Members also considered any indirect benefits or profits NAM or its affiliates may receive as a result of its relationship with each Fund. With respect to closed-end funds, the Board Members considered the revenues received by affiliates of NAM for serving as agent at Nuveen's preferred trading desk and for serving as a co-manager in the initial public offering of new closed-end exchange traded funds. In addition to the above, the Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. With respect to NAM, the Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Board Members did not identify any single factor discussed previously as all-important or controlling in their considerations to continue an advisory contract. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Original Investment Management Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the renewal of the Original Investment Management Agreements be approved. II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS Following the May Meeting, the Board Members were advised of the potential Transaction. As noted above, the completion of the Transaction would terminate each of the Original Investment Management Agreements. Accordingly, at the July Meeting, the Board of each Fund, including the Independent Board Members, unanimously approved the New Investment Management Agreements on behalf of the respective Funds. Leading up to the July Meeting, the Board Members had several meetings and deliberations with and without Nuveen management present, and with the advice of legal counsel, regarding the proposed Transaction as outlined below. On June 8, 2007, the Board Members held a special telephonic meeting to discuss the proposed Transaction. At that meeting, the Board Members established a special ad hoc committee comprised solely of Independent Board Members to focus on the Transaction and to keep the Independent Board Members updated with developments regarding the Transaction. On June 15, 2007, the ad hoc committee discussed with representatives of NAM the Transaction and modifications to the complex-wide fee schedule that would generate additional fee savings at specified levels of complex-wide asset growth. Following the foregoing meetings and several subsequent telephonic conferences among Independent Board Members and independent counsel, and between Independent Board Members and representatives of Nuveen, the Board met on June 18, 2007 to further discuss the proposed Transaction. Immediately prior to and then again during the June 18, 2007 meeting, the Independent Board Members met privately with their independent legal counsel. At that meeting, the Board met with representatives of MDP, of Goldman Sachs, 97 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) Nuveen's financial adviser in the Transaction, and of the Nuveen Board to discuss, among other things, the history and structure of MDP, the terms of the proposed Transaction (including the financing terms), and MDP's general plans and intentions with respect to Nuveen (including with respect to management, employees, and future growth prospects). On July 9, 2007, the Board also met to be updated on the Transaction as part of a special telephonic Board meeting. The Board Members were further updated at a special in-person Board meeting held on July 19, 2007 (one Independent Board Member participated telephonically). Subsequently, on July 27, 2007, the ad hoc committee held a telephonic conference with representatives of Nuveen and MDP to further discuss, among other things, the Transaction, the financing of the Transaction, retention and incentive plans for key employees, the effect of regulatory restrictions on transactions with affiliates after the Transaction, and current volatile market conditions and their impact on the Transaction. In connection with their review of the New Investment Management Agreements, the Independent Board Members, through their independent legal counsel, also requested in writing and received additional information regarding the proposed Transaction and its impact on the provision of services by NAM and its affiliates. The Independent Board Members received, well in advance of the July Meeting, materials which outlined, among other things: [] the structure and terms of the Transaction, including MDP's co-investor entities and their expected ownership interests, and the financing arrangements that will exist for Nuveen following the closing of the Transaction; [] the strategic plan for Nuveen following the Transaction; [] the governance structure for Nuveen following the Transaction; [] any anticipated changes in the operations of the Nuveen funds following the Transaction, including changes to NAM's and Nuveen's day-to-day management, infrastructure and ability to provide advisory, distribution or other applicable services to the Funds; [] any changes to senior management or key personnel who work on Fund related matters (including portfolio management, investment oversight, and legal/compliance) and any retention or incentive arrangements for such persons; [] any anticipated effect on each Fund's expense ratio (including advisory fees) following the Transaction; [] any benefits or undue burdens imposed on the Funds as a result of the Transaction; [] any legal issues for the Funds as a result of the Transaction; [] the nature, quality and extent of services expected to be provided to the Funds following the Transaction, changes to any existing services and policies affecting the Funds, and cost-cutting efforts, if any, that may impact such services or policies; [] any conflicts of interest that may arise for Nuveen or MDP with respect to the Funds; [] the costs associated with obtaining necessary shareholder approvals and who would bear those costs; and [] from legal counsel, a memorandum describing the applicable laws, regulations and duties in approving advisory contracts, including, in particular, with respect to a change of control. Immediately preceding the July Meeting, representatives of MDP met with the Board to further respond to questions regarding the Transaction. After the meeting with MDP, the Independent Board Members met with independent legal counsel in executive session. At the July Meeting, Nuveen also made a presentation and responded to questions. Following the presentations and discussions of the materials presented to the Board, the Independent Board Members met again in executive session with their counsel. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to each Fund, including the impact that the Transaction could be expected to have on the following: (a) the nature, extent and quality of services to be provided; (b) the investment performance of the Funds; (c) the costs of the services and profits to be realized by Nuveen and its affiliates; (d) the extent to which 98 economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of investors. As noted above, the Board Members had completed their annual review of the respective Original Investment Management Agreements at the May Meeting and many of the factors considered at the annual review were applicable to their evaluation of the New Investment Management Agreements. Accordingly, in evaluating the New Investment Management Agreements, the Board Members relied upon their knowledge and experience with NAM and considered the information received and their evaluations and conclusions drawn at the annual review. While the Board reviewed many Nuveen funds at the July Meeting, the Independent Board Members evaluated all information available to them on a fund-by-fund basis, and their determinations were made separately in respect of each Fund. A. NATURE, EXTENT AND QUALITY OF SERVICES In evaluating the nature, quality and extent of the services expected to be provided by NAM under the New Investment Management Agreements, the Independent Board Members considered, among other things, the expected impact, if any, of the Transaction on the operations, facilities, organization and personnel of NAM; the potential implications of regulatory restrictions on the Funds following the Transaction; the ability of NAM and its affiliates to perform their duties after the Transaction; and any anticipated changes to the current investment and other practices of the Funds. The Board noted that the terms of each New Investment Management Agreement, including the fees payable thereunder, are substantially identical to those of the Original Investment Management Agreement relating to the same Fund (with both reflecting reductions to fee levels in the complex-wide fee schedule for complex-wide assets in excess of $80 billion that have an effective date of August 20, 2007). The Board considered that the services to be provided and the standard of care under the New Investment Management Agreements are the same as the Original Investment Management Agreements. The Board Members further noted that key personnel who have responsibility for the Funds in each area, including portfolio management, investment oversight, fund management, fund operations, product management, legal/compliance and board support functions, are expected to be the same following the Transaction. The Board Members considered and are familiar with the qualifications, skills and experience of such personnel. The Board also considered certain information regarding anticipated retention or incentive plans designed to retain key personnel. Further, the Board Members noted that no changes to Nuveen's infrastructure or operations as a result of the Transaction were anticipated other than potential enhancements as a result of an expected increase in the level of investment in such infrastructure and personnel. The Board noted MDP's representations that it does not plan to have a direct role in the management of Nuveen, appointing new management personnel, or directly impacting individual staffing decisions. The Board Members also noted that there were not any planned "cost cutting" measures that could be expected to reduce the nature, extent or quality of services. After consideration of the foregoing, the Board Members concluded that no diminution in the nature, quality and extent of services provided to the Funds and their shareholders is expected. In addition to the above, the Board Members considered potential changes in the operations of each Fund. In this regard, the Board Members considered the potential effect of regulatory restrictions on the Funds' transactions with future affiliated persons. During their deliberations, it was noted that, after the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership interest in Nuveen at a level that will make Merrill Lynch an affiliated person of Nuveen. The Board Members recognized that applicable law would generally prohibit the Funds from engaging in securities transactions with Merrill Lynch as principal, and would also impose restrictions on using Merrill Lynch for agency transactions. They recognized that having MDP and Merrill Lynch as affiliates may restrict the Nuveen funds' ability to invest in securities of issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if not bought directly from MDP or Merrill Lynch as principal. They also recognized that various regulations may require the Nuveen funds to apply investment limitations on a combined basis with affiliates of Merrill Lynch. The Board Members considered information provided by NAM regarding the potential impact on the Nuveen funds' operations as a result of these regulatory restrictions. The Board Members considered, in particular, the Nuveen funds that may be impacted most by the restricted access to Merrill Lynch, including: municipal funds (particularly certain state-specific funds), senior loan funds, taxable fixed income funds, preferred security funds and funds that heavily use derivatives. The Board Members considered such funds' historic use of Merrill Lynch as principal in their transactions and information provided by NAM regarding the expected impact resulting from Merrill Lynch's affiliation with Nuveen and available measures that could be taken to minimize such 99 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) impact. NAM informed the Board Members that, although difficult to determine with certainty, its management did not believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would have a material adverse effect on any Nuveen fund's ability to pursue its investment objectives and policies. In addition to the regulatory restrictions considered by the Board, the Board Members also considered potential conflicts of interest that could arise between the Nuveen funds and various parties to the Transaction and discussed possible ways of addressing such conflicts. Based on its review along with its considerations regarding services at the annual review, the Board concluded that the Transaction was not expected to adversely affect the nature, quality or extent of services provided by NAM and that the expected nature, quality and extent of such services supported approval of the New Investment Management Agreements. B. PERFORMANCE OF THE FUNDS With respect to the performance of the Funds, the Board considered that the portfolio management personnel responsible for the management of the Funds' portfolios were expected to continue to manage the portfolios following the completion of the Transaction. In addition, the Board Members recently reviewed Fund performance at the May Meeting, as described above, and determined that Fund performance was satisfactory or better, subject to the following. With respect to certain municipal closed-end funds with relative short-term underperformance, the Board Members concluded NAM was taking steps to evaluate the factors affecting performance and those steps would continue following the Transaction. Further, the investment policies and strategies were not expected to change as a result of the Transaction. In light of the foregoing factors, along with the prior findings regarding performance at the annual review, the Board concluded that its findings with respect to performance supported approval of the New Investment Management Agreements. C. FEES, EXPENSES AND PROFITABILITY As described in more detail above, during the annual review, the Board Members considered, among other things, the management fees and expenses of the Funds, the breakpoint schedules, and comparisons of such fees and expenses with peers. At the annual review, the Board Members determined that the respective Fund's advisory fees and expenses were reasonable. In evaluating the costs of services to be provided by NAM under the New Investment Management Agreements and the profitability of Nuveen for its advisory activities, the Board Members considered their prior conclusions at the annual review and whether the management fees or other expenses would change as a result of the Transaction. As described above, the investment management fee is composed of two components--a fund-level component and complex-wide level component. The fee schedule under the New Investment Management Agreements to be paid to NAM is identical to that under the Original Investment Management Agreements, including the modified complex-wide fee schedule. As noted above, the Board recently approved a modified complex-wide fee schedule that would generate additional fee savings on complex-wide assets above $80 billion. The modifications have an effective date of August 20, 2007 and are part of the Original Investment Management Agreements. Accordingly, the terms of the complex-wide component under the New Investment Management Agreements are the same as under the Original Investment Management Agreements. The Board Members also noted that Nuveen has committed for a period of two years from the date of closing of the Transaction that it will not increase gross management fees for any Nuveen fund and will not reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels. Based on the information provided, the Board Members did not expect that overall Fund expenses would increase as a result of the Transaction. In addition, the Board Members considered that additional fund launches were anticipated after the Transaction which would result in an increase in total assets under management in the complex and a corresponding decrease in overall management fees under the complex-wide fee schedule. Taking into consideration the Board's prior evaluation of fees and expenses at the annual renewal, and the modification 100 to the complex-wide fee schedule, the Board determined that the management fees and expenses were reasonable. While it is difficult to predict with any degree of certainty the impact of the Transaction on Nuveen's profitability, at the recent annual review, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities was reasonable. During the year, the Board Members had noted the enhanced dialogue regarding profitability and the appointment of an Independent Board Member as a point person to review methodology determinations and refinements in calculating profitability. Given their considerations at the annual review and the modifications to the complex-wide fee schedule, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities continues to be reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE The Board Members have been cognizant of economies of scale and the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure that shareholders share in the benefits derived from economies of scale, the Board adopted the complex-wide fee arrangement in 2004. At the May Meeting, the Board Members reviewed the complex-wide fee arrangements and noted that additional negotiations may be necessary or appropriate as the assets in the complex approached the $91 billion threshold. In light of this assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting, the ad hoc committee met with representatives of Nuveen to further discuss modifications to the complex-wide fee schedule that would generate additional savings for shareholders as the assets of the complex grow. The proposed terms for the complex-wide fee schedule are expressed in terms of targeted cumulative savings at specified levels of complex-wide assets, rather than in terms of targeted marginal complex-wide fee rates. Under the modified schedule, the schedule would generate additional fee savings beginning at complex-wide assets of $80 billion in order to achieve targeted cumulative annual savings at $91 billion of $28 million on a complex-wide level (approximately $0.6 million higher than those generated under the then current schedule) and generate additional fee savings for asset growth above complex-wide assets of $91 billion in order to achieve targeted annual savings at $125 billion of assets of approximately $50 million on a complex-wide level (approximately $2.2 million higher annually than that generated under the then current schedule). At the July Meeting, the Board approved the modified complex-wide fee schedule for the Original Investment Management Agreements and these same terms will apply to the New Investment Management Agreements. Accordingly, the Board Members believe that the breakpoint schedules and revised complex-wide fee schedule are appropriate and desirable in ensuring that shareholders participate in the benefits derived from economies of scale. E. INDIRECT BENEFITS During their recent annual review, the Board Members considered any indirect benefits that NAM may receive as a result of its relationship with the Funds, as described above. As the policies and operations of Nuveen are not anticipated to change significantly after the Transaction, such indirect benefits should remain after the Transaction. The Board Members further considered any additional indirect benefits to be received by NAM or its affiliates after the Transaction. The Board Members noted that other than benefits from its ownership interest in Nuveen and indirect benefits from fee revenues paid by the Funds under the management agreements and other Board-approved relationships, it was currently not expected that MDP or its affiliates would derive any benefit from the Funds as a result of the Transaction or transact any business with or on behalf of the Funds (other than perhaps potential Fund acquisitions, in secondary market transactions, of securities issued by MDP portfolio companies); or that Merrill Lynch or its affiliates would derive any benefits from the Funds as a result of the Transaction (noting that, indeed, Merrill Lynch would stand to experience the discontinuation of principal transaction activity with the Nuveen funds and likely would experience a noticeable reduction in the volume of agency transactions with the Nuveen funds). 101 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) F. OTHER CONSIDERATIONS In addition to the factors above, the Board Members also considered the following with respect to the Funds: [] Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. Section 15(f) provides, in substance, that when a sale of a controlling interest in an investment adviser occurs, the investment adviser or any of its affiliated persons may receive any amount or benefit in connection with the sale so long as (i) during the three-year period following the consummation of a transaction, at least 75% of the investment company's board of directors must not be "interested persons" (as defined in the 1940 Act) of the investment adviser or predecessor adviser and (ii) an "unfair burden" (as defined in the 1940 Act, including any interpretations or no-action letters of the SEC) must not be imposed on the investment company as a result of the transaction relating to the sale of such interest, or any express or implied terms, conditions or understanding applicable thereto. In this regard, to help ensure that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed for a period of two years from the date of the closing of the Transaction (i) not to increase gross management fees for any Nuveen fund; (ii) not to reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels during that period; (iii) that no Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use Merrill Lynch as a broker with respect to portfolio transactions done on an agency basis, except as may be approved in the future by the Compliance Committee of the Board; and (iv) that NAM shall not cause the Funds and other municipal funds that NAM manages, as a whole, to enter into portfolio transactions with or through the other minority owners of Nuveen, on either a principal or an agency basis, to a significantly greater extent than both what one would expect an investment team to use such firm in the normal course of business, and what NAM has historically done, without prior Board or Compliance Committee approval (excluding the impact of proportionally increasing the use of such other "minority owners" to fill the void necessitated by not being able to use Merrill Lynch). [] The Funds would not incur any costs in seeking the necessary shareholder approvals for the New Investment Management Agreements (except for any costs attributed to seeking shareholder approvals of Fund specific matters unrelated to the Transaction, such as approval of Board Members, in which case a portion of such costs will be borne by the applicable Funds). [] The reputation, financial strength and resources of MDP. [] The long-term investment philosophy of MDP and anticipated plans to grow Nuveen's business to the benefit of the Nuveen funds. [] The benefits to the Nuveen funds as a result of the Transaction including: (i) as a private company, Nuveen may have more flexibility in making additional investments in its business; (ii) as a private company, Nuveen may be better able to structure compensation packages to attract and retain talented personnel; (iii) as certain of Nuveen's distribution partners are expected to be equity or debt investors in Nuveen, Nuveen may be able to take advantage of new or enhanced distribution arrangements with such partners; and (iv) MDP's experience, capabilities and resources that may help Nuveen identify and acquire investment teams or firms and finance such acquisitions. [] The historic premium and discount levels at which the shares of the Nuveen funds have traded at specified dates with particular focus on the premiums and discounts after the announcement of the Transaction, taking into consideration recent volatile market conditions and steps or initiatives considered or undertaken by NAM to address discount levels. 102 G. CONCLUSION The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the New Investment Management Agreements are fair and reasonable, that the fees therein are reasonable in light of the services to be provided to each Fund and that the New Investment Management Agreements should be approved and recommended to shareholders. III. APPROVAL OF INTERIM CONTRACTS As noted above, at the July Meeting, the Board Members, including the Independent Board Members, unanimously approved the Interim Investment Management Agreements. If necessary to assure continuity of advisory services, the Interim Investment Management Agreements will take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements. The terms of each Interim Investment Management Agreement are substantially identical to those of the corresponding Original Investment Management Agreement and New Investment Management Agreement, respectively, except for certain term and escrow provisions. In light of the foregoing, the Board Members, including the Independent Board Members, unanimously determined that the scope and quality of services to be provided to the Funds under the respective Interim Investment Management Agreement are at least equivalent to the scope and quality of services provided under the applicable Original Investment Management Agreement. 103 Reinvest Automatically EASILY and CONVENIENTLY 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 greater of the net asset value or 95% of 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. 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 on the last business day immediately prior to the purchase date. 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. 104 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. 105 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. [] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. 106 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 twelve-month period ended June 30, 2007, 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 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. INVESTMENT POLICY CHANGES In May 2007, the Funds' Board of Trustees voted to permit the Funds' to make loans from Fund assets to certain bond issuers. The amounts of these loans are subject to strict limits. This policy is designed to enhance the Funds' ability to meet their Funds'investment objectives by providing for increased portfolio management flexibility, greater diversification potential, and opportunities for increased capital appreciation over time. BOARD OF TRUSTEES Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carole E. Stone 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 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 semi-annual report. 107 Nuveen Investments: - ------------------- SERVING INVESTORS FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. We offer many different investing solutions for our clients' different needs. Managing $170 billion in assets, as of September 30, 2007, 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 six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading institutional manager of market-neutral alternative investment portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader in global equities. 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. Learn more about Nuveen Funds at: www.nuveen.com/etf Share prices Fund details Daily financial news Investor education \Interactive planning tools ESA-A-1107D 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 ----------------------------------------------------------- By (Signature and Title)* /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy (Vice President and Secretary) Date: February 8, 2008 ------------------------------------------------------------------- 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, 2008 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: February 8, 2008 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.