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, 2008 ------------------ 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 | Nuveen Investments November 30, 2008 | 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 | [LOGO] IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) | 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 | www.nuveen.com/accountaccess If your Nuveen Fund dividends and OR you receive your Nuveen Fund statements from your financial advisor | dividends and statements directly or brokerage account. from Nuveen. [LOGO] NUVEEN Investments Chairman's LETTER TO SHAREHOLDERS [PHOTO OF ROBERT P. BREMNER] | Robert P. Bremner | Chairman of the Board Dear Shareholders, I write this letter in a time of continued uncertainty about the current state of the U.S. financial system and pessimism about the future of the global economy. Many have observed that the conditions that led to the crisis have built up over time and will complicate and extend the course of recovery. At the same time, government officials in the U.S. and abroad have implemented a wide range of programs to restore stability to the financial system and encourage economic recovery. History teaches us that these efforts will moderate the extent of the downturn and hasten the inevitable recovery, even though it is hard to envision that outcome in the current environment. As you will read in this report, the continuing financial and economic problems are weighing heavily on asset values for equities and fixed income, and unfortunately the performance of the Nuveen Funds has been similarly affected. I hope that you will carefully review the Portfolio Manager's Comments, the Common Share Dividend and Share Price Information and the Performance Overview sections of this report. These comments highlight the manager's pursuit of investment strategies that depend on thoroughly researched securities, diversified portfolio holdings and well established investment disciplines to achieve your Fund's investment goals. The Fund Board believes that a consistent focus on long term investment goals provides the basis for successful investment over time and we monitor your Fund with that objective in mind. Nuveen continues to work on resolving the auction rate preferred shares situation, but the unsettled conditions in the credit markets have slowed progress. Nuveen is actively pursuing a number of solutions, all with the goal of providing liquidity for preferred shareholders while preserving the potential benefits of leverage for common shareholders. We appreciate the patience you have shown as we have worked through the many issues involved. Please consult the Nuveen website: www.Nuveen.com, for the most recent information. On behalf of myself and the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ ROBERT P. BREMNER - --------------------------------- Robert P. Bremner Chairman of the Nuveen Fund Board January 20, 2009 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 the Nuveen Maryland and Virginia Funds. Cathryn, who joined Nuveen in 1996, has managed these seven Funds since 2006. WHAT KEY STRATEGIES WERE USED TO MANAGE THE MARYLAND AND VIRGINIA FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2008? During this period, stress in the financial and credit markets led to increased price volatility for many securities, reduced liquidity and a general flight to quality. In this turbulent environment, we took a defensive approach to managing the Funds, focusing on preserving and enhancing liquidity, managing duration1 risk, and continuing to invest for the long term. As events unfolded, we carefully watched the municipal bond market for attractive purchase opportunities, using a fundamental approach to discover undervalued sectors and individual credits with the potential to perform well over the long term. One area of the market that we found attractive during this period was health care and we purchased bonds in this sector for all of the Maryland and Virginia Funds. To provide liquidity for purchases, we monitored the types of credits and bond structures that were attractive to the retail market and took advantage of strong bids to sell such bonds into solid retail demand. Given the market environment, retail demand was strongest for higher credit quality bonds, especially tax-backed securities with intermediate maturities. In addition, the Maryland Funds found opportunities to sell holdings that were purchased when yields were lower and replace them with similar, newer credits that yielded comparatively more. This process allowed us to maintain the Funds' current portfolio characteristics while strengthening their future income streams. As a key dimension of risk management, we employed a disciplined approach to duration positioning as an important component of our overall strategy. As part of this approach, we used inverse floating rate securities(2) in all of the Maryland and Virginia Funds throughout this period. Inverse floaters typically provide the dual benefit of bringing the Funds' durations closer to our strategic target and enhancing their income-generation capabilities. 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 also known as inverse floaters, 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 this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this shareholder report. Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein. 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. Average Annual Total Returns on Common Share Net Asset Value* For periods ended 11/30/08 Six-Month 1-Year 5-Year 10-Year Maryland Funds NMY -13.01% -13.15% 1.20% 3.53% NFM -17.23% -17.19% 0.06% N/A NZR -16.45% -16.27% 0.13% N/A NWI -14.74% -14.62% 0.68% N/A Virginia Funds NPV -13.14% -13.08% 0.79% 3.51% NGB -17.24% -17.18% 0.32% N/A NNB -15.30% -15.11% 0.62% N/A Lipper Other States Municipal Debt Funds Average(3) -14.13% -14.38% 0.64% 3.22% Barclays Capital Municipal Bond Index(4) -4.98% -3.61% 2.59% 4.14% S&P National Municipal Bond Index(5) -5.48% -4.43% 2.55% N/A For the six months ended November 30, 2008, the cumulative returns on common share net asset value (NAV) for NMY and NPV exceeded the average return for the Lipper Other States Municipal Debt Funds Average, while NFM, NZR, NWI, NGB and NNB lagged this average. All of the Funds underperformed the national Barclays Capital Municipal Bond Index and Standard & Poor's National Municipal Bond Index. Shareholders should note the Lipper Other States Municipal Debt Funds Average and the Barclay Capital Municipal Bond Index include bonds from states not covered in this report, which may make direct comparisons between the Funds and these benchmarks less meaningful. Key management factors that influenced the Funds' returns during this period included duration and yield curve positioning, the use of inverse floaters, credit exposure and sector allocations. In addition, the use of leverage was an important factor affecting each Fund's performance over this period. The impact of leverage is discussed in more detail on page 7. *Six-month returns are cumulative; returns for one-year, five-year and ten-year 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 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: six-months, 46; 1 year, 46; 5 years, 46; and 10 years, 18. Fund and Lipper returns assume reinvestment of dividends. 4 The Barclays Capital (formerly 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. 5 The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the investment-grade U.S. municipal bond market. 5 Over the course of this reporting period, we saw the yield curve steepen, as interest rates at the short end of the curve declined and longer rates rose. Given these changes in the interest rate environment, bonds in the Barclays Capital Municipal Bond Index with maturities of ten years or less generally outperformed the market as a whole, with bonds maturing in two to four years benefiting the most. Because they were less sensitive to interest rate changes, these shorter bonds generally outperformed credits with longer maturities, with the biggest losses posted by bonds with the longest maturities (twenty-two years and longer). In general, these Funds had less exposure to the outperforming short end of the yield curve than the index and more exposure to the underperforming longer part of the curve. This was especially true of NFM, which had the longest duration among these seven Funds. Although the Funds' duration and yield curve positioning was a net negative for performance, the Funds were positively impacted by their allocations to bonds with intermediate maturities, which performed well. As mentioned earlier, all of these Funds used inverse floaters to help bring their durations closer to our strategic target and enhance income-generation capabilities. In general, these inverse floaters had a negative impact on performance. This resulted from the fact that the inverse floaters effectively increased the Funds' exposure to longer maturity bonds at a time when shorter maturities were in favor in the market. Credit exposure was also an important factor in performance during these six months. Because risk-averse investors generally sought higher quality investments as disruptions in the financial markets deepened, bonds with higher credit quality typically performed very well. At the same time, as many investors avoided high-yield securities, bonds rated BBB or below and non-rated bonds generally posted poor returns. Insured bonds with underlying credits that were rated BBB or non-rated, originally purchased because of the higher yields they offered, were disproportionately impacted (compared with bonds with underlying credits rated AA or A) if the insurer backing the bond was downgraded. While exposure to lower-rated credits had a negative impact on the Funds for this period, the six-month performances of NMY and NPV, which can invest only in investment-grade securities, benefited from their overall higher credit quality. During this period, pre-refunded bonds(6), which are backed by U.S. Treasury securities, were one of the top performing segments of the market, due primarily to their shorter effective maturities, higher credit quality and perceived safety. Additional sectors of the market that generally contributed to the Funds' performances included general obligation and other tax-backed bonds and water and sewer, electric utilities and 6 Pre-refundings, also known as advance refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers. 6 education credits. The Maryland Funds, in particular, benefited from their heavier allocations to the education sector. However, the Funds generally had lower holdings of tax-backed bonds than the market as a whole, which lessened the positive contribution from this sector. In general, bonds that were lower rated, regardless of sector, posted weak performance. Revenue bonds as a whole, and the industrial development, health care, and housing sectors in particular, underperformed the general municipal market. Next to the industrial development revenue sector, zero coupon bonds were among the worst performing categories in the municipal market. While the Funds had only small exposures to the industrial development revenue sector, their performances were hurt by their overweighting of both the health care and housing sectors, especially in NFM, during this period. IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE In addition to the factors previously discussed, one of the primary factors impacting the six-month returns of these Funds relative to those of the unleveraged indexes was the Funds' use of financial leverage. While leverage offers opportunities to generate additional income and total returns for common shareholders, the benefits provided by leveraging are influenced by the price movements of the bonds in each Fund's portfolio. During this period, as yields on longer-term bonds rose and their prices correspondingly fell, declining valuations had a negative effect on performance that was magnified by the use of leverage. In addition, at various points during the six-month period, the Funds' borrowing costs were relatively high, negatively impacting their total returns. RECENT MARKET DEVELOPMENTS Beginning in October, the nation's financial institutions and financial markets--including the municipal bond market--experienced significant turmoil. Reductions in demand decreased valuations of municipal bonds across all credit ratings, especially those with lower credit ratings, and this generally reduced the Funds' common share net asset values. The municipal market is one in which dealer firms make markets in bonds on a principal basis using their proprietary capital, and during the recent market turmoil these firms' capital was severely constrained. As a result, some firms were unwilling to commit their capital to purchase and to serve as a dealer for municipal bonds. This reduction in dealer involvement in the market was accompanied by significant net selling pressure by investors, particularly with respect to lower-rated municipal bonds, as institutional investors generally removed money from the municipal bond 7 market, at least in part because of their need to reduce the leveraging of their municipal investments. This deleveraging was in part driven by the overall reduction in the amount of financing available for such leverage, the increased costs of such leverage financing, and the need to reduce leverage levels that had recently increased due to the decline in municipal bond prices. Municipal bond prices were further negatively impacted by concerns that the need for further de-leveraging and a supply overhang (a large amount of new issues that were postponed) would cause selling pressure to persist for a period of time. In addition to falling prices, the following market conditions resulted in greater price volatility of municipal bonds - wider credit spreads (i.e., lower quality bonds fell in price more than higher quality bonds); significantly reduced liquidity (i.e., the ability to sell bonds at a price close to their carrying value), particularly for lower quality bonds; and a lack of price transparency (i.e., the ability to accurately determine the price at which a bond would likely trade). Reduced liquidity was most pronounced in mid-October, although it improved considerably after that period. RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES Another factor that had an impact on the performance of these Funds was their position in bonds backed by municipal bond insurers that experienced downgrades in their credit ratings. During the period covered by this report, ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA (formerly XLCA) experienced one or more rating reductions by at least one or more rating agencies while AGC and FSA received their first rating reductions by at least one rating agency. At the time this report was prepared, at least one rating agency has placed each of these insurers except AGC on "negative outlook" or "negative credit watch," which may presage one or more rating reductions for such insurer or insurers in the future. As concern increased about the balance sheets of these insurers, prices on bonds insured by these companies - especially those bonds with weaker underlying credits - declined, detracting from the Funds' performance. By the end of this period, most insured bonds were being valued according to their fundamentals as if they were uninsured. On the whole, the holdings of all of our Funds continued to be well diversified not only between insured and uninsured bonds, but also within the insured bond category. It is important to note that municipal bonds historically have had a very low rate of default. 8 RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the auction rate preferred shares issued by these Funds than there were offers to buy. This meant that these auctions "failed to clear" and that many or all auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate preferred shareholder unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the auction rate preferred shares. At the time this report was prepared, the Funds' managers could not predict when future auctions might succeed in attracting sufficient buyers for the shares offered, if ever. The Funds' managers are working diligently to refund the auction rate preferred shares, and have made progress in these efforts, (at least for certain funds) but at present there is no assurance that these efforts will succeed. These developments have generally not affected the portfolio management or investment policies of these Funds. However, one implication of these auction failures for common shareholders is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future common share earnings may be lower than they otherwise would have been. On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the municipal Funds' outstanding auction rate preferred shares, for which auctions have been failing for several months. This plan included an initial phase of approximately $1 billion in forty-one Funds. As of November 30, 2008, none of the Funds included in this shareholder report had issued par redemption notices for their auction rate preferred shares. On August 7, 2008, four Nuveen municipal Funds (none of which are included in this shareholder report) issued par redemption notices for all outstanding shares of their auction rate preferred shares totaling $569.9 million. These redemptions were achieved through the issuance of variable rate demand preferred shares (VRDP) in conjunction with the proceeds from the creation of TOBs. On January 8, 2009, subsequent to the reporting period, NMY, NFM, NZR and NWI noticed for redemption $0.5 million, $3.125 million, $2.45 million and $0.875 million of their outstanding auction rate preferred shares, respectively, at liquidation value, using the proceeds from the issuance of TOBs and portfolio sales. For current, up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. 9 Common Share Dividend and Share Price INFORMATION During the six-month period ended November 30, 2008, there was one dividend increase in each of the following Funds: NMY, NWI, NPV and NGB. The dividends of NFM, NZR and NNB remained stable throughout the 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, 2008, all of the Funds in this report had positive UNII balances, based upon our best estimate, for tax purposes. NMY, NWI, NPV and NGB had positive UNII balances while NFM, NZR and NNB had negative UNII balances for financial statement purposes. The Funds' Board of Trustees approved an open-market share repurchase program on July 30, 2008, under which each Fund may repurchase up to 10% of its common shares. As of November 30, 2008 the Funds' have not repurchased any of their outstanding common shares. As of November 30, 2008, the Funds' common share prices were trading at premiums or discounts to their common share NAVs as shown in the accompanying chart: 11/30/08 Six-Month Average Premium/Discount Premium/Discount NMY -21.81% -13.49% NFM -12.49% -4.28% NZR -15.06% -5.19% NWI -12.09% -11.75% NPV -5.82% -5.04% NGB +3.14% -0.34% NNB +5.56% +1.74% 10 NMY Performance OVERVIEW | Nuveen Maryland Premium Income Municipal Fund as of November 30, 2008 [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 49% AA 26% A 10% BBB 13% BB or Lower 1% N/R 1% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Dec 0.0495 Jan 0.0495 Feb 0.0495 Mar 0.0495 Apr 0.0495 May 0.0495 Jun 0.0495 Jul 0.0495 Aug 0.0495 Sep 0.0515 Oct 0.0515 Nov 0.0515 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 12.79 12.94 12.76 12.46 12.63 13.18 13.47 13.31 13.42 13.48 13.53 12.75 12.7 12.25 12.67 12.46 12.48 12.685 12.9 12.8 12.8 12.83 12.92 12.82 12.78 12.92 13.1 12.94 12.79 12.48 12.52 12.67 12.64 12.208 12.16 12.19 12.16 12.19 12.1499 12.345 12.38 12.35 11.606 11.096 10.55 7.98 9.3 10.25 10.89 10.73 10.24 9.25 11/30/08 9.43 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 9.43 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.06 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -21.81% - -------------------------------------------------------------------------------- Market Yield 6.55% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 9.58% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 128,284 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.38 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.90 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -26.03% -13.01% - -------------------------------------------------------------------------------- 1-Year -21.96% -13.15% - -------------------------------------------------------------------------------- 5-Year -4.50% 1.20% - -------------------------------------------------------------------------------- 10-Year -0.12% 3.53% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 21.4% - -------------------------------------------------------------------------------- U.S. Guaranteed 15.6% - -------------------------------------------------------------------------------- Health Care 14.8% - -------------------------------------------------------------------------------- Education and Civic Organizations 11.0% - -------------------------------------------------------------------------------- Tax Obligation/Limited 10.2% - -------------------------------------------------------------------------------- Housing/Multifamily 8.3% - -------------------------------------------------------------------------------- Housing/Single Family 5.8% - -------------------------------------------------------------------------------- Other 12.9% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders a net ordinary income distribution in December 2007 of $0.0074 per share. 11 NFM Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund as of November 30, 2008 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 9.95 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 11.37 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.49% - -------------------------------------------------------------------------------- Market Yield 7.06% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 10.32% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 47,601 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.94 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 14.53 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -27.80% -17.23% - -------------------------------------------------------------------------------- 1-Year -19.27% -17.19% - -------------------------------------------------------------------------------- 5-Year -4.31% 0.06% - -------------------------------------------------------------------------------- Since Inception 0.14% 2.70% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 21.9% - -------------------------------------------------------------------------------- U.S. Guaranteed 15.6% - -------------------------------------------------------------------------------- Tax Obligation/General 13.5% - -------------------------------------------------------------------------------- Housing/Multifamily 11.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 11.0% - -------------------------------------------------------------------------------- Education and Civic Organizations 7.8% - -------------------------------------------------------------------------------- Housing/Single Family 6.3% - -------------------------------------------------------------------------------- Other 12.8% - -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 42% AA 17% A 17% BBB 17% BB or Lower 1% N/R 6% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0585 Apr 0.0585 May 0.0585 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0585 Nov 0.0585 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 13.21 13.35 13 13.01 13.13 13.76 13.89 14 13.96 13.95 13.936 13.74 13.33 12.65 13.13 13.11 13.85 14 14.1 13.72 13.6 13.9 13.95 14.03 14.25 13.91 14.19 14.05 14 14.142 13.83 14.53 14.5 14.1 14 13.92 13.72 13.58 13.2999 13.23 13.345 13.12 12.58 11.5 11.04 8 10.7 10.7 11.1699 11.047 10.2 9.55 11/30/08 9.95 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 12 NZR Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 2 as of November 30, 2008 [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 41% AA 26% A 12% BBB 14% BB or Lower 2% N/R 5% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0585 Apr 0.0585 May 0.0585 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0585 Nov 0.0585 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 13.29 13.39 13.19 12.86 13.17 13.83 14.19 13.95 13.8001 13.8 13.99 13.24 13.43 12.73 13.26 12.94 13.03 13.11 13.355 13.49 13.31 13.75 14 14.05 13.98 14.21 14.25 14.3 13.84 13.72 13.38 13.73 13.98 13.926 14.05 13.98 13.75 13.9 13.48 13.57 13.3799 13.1 12.6 11.5999 11.15 8.04 9.45 10.6034 12.15 11.38 11.34 10.07 11/30/08 9.87 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 9.87 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 11.62 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -15.06% - -------------------------------------------------------------------------------- Market Yield 7.11% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 10.39% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 48,739 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.80 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 13.12 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -28.70% -16.45% - -------------------------------------------------------------------------------- 1-Year -21.20% -16.27% - -------------------------------------------------------------------------------- 5-Year -2.68% 0.13% - -------------------------------------------------------------------------------- Since Inception -0.40% 2.59% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 17.4% - -------------------------------------------------------------------------------- U.S. Guaranteed 16.9% - -------------------------------------------------------------------------------- Tax Obligation/General 16.5% - -------------------------------------------------------------------------------- Tax Obligation/Limited 12.1% - -------------------------------------------------------------------------------- Education and Civic Organizations 9.8% - -------------------------------------------------------------------------------- Housing/Single Family 6.4% - -------------------------------------------------------------------------------- Housing/Multifamily 5.9% - -------------------------------------------------------------------------------- Other 15.0% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders capital gains and net ordinary income distributions in December 2007 of $.0343 per share. 13 NWI Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 3 as of November 30, 2008 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 10.25 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 11.66 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.09% - -------------------------------------------------------------------------------- Market Yield 6.26% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 9.15% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 62,550 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.05 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 13.70 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -18.99% -14.74% - -------------------------------------------------------------------------------- 1-Year -14.50% -14.62% - -------------------------------------------------------------------------------- 5-Year -0.41% 0.68% - -------------------------------------------------------------------------------- Since Inception -1.05% 1.61% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/Limited 21.7% - -------------------------------------------------------------------------------- Health Care 17.2% - -------------------------------------------------------------------------------- Tax Obligation/General 12.6% - -------------------------------------------------------------------------------- U.S. Guaranteed 11.7% - -------------------------------------------------------------------------------- Housing/Multifamily 10.0% - -------------------------------------------------------------------------------- Education and Civic Organizations 7.9% - -------------------------------------------------------------------------------- Housing/Single Family 4.8% - -------------------------------------------------------------------------------- Other 14.1% - -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 39% AA 28% A 10% BBB 17% BB or Lower 2% N/R 4% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share Dec 0.0525 Jan 0.0525 Feb 0.0525 Mar 0.0525 Apr 0.0525 May 0.0525 Jun 0.0525 Jul 0.0525 Aug 0.0525 Sep 0.0535 Oct 0.0535 Nov 0.0535 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 12.61 12.56 12.31 12.21 12.38 13.02 13.19 13.04 13.06 13.2 13.32 12.71 12.6 12.5099 12.7 12.29 12.65 12.69 12.76 12.62 12.72 12.7 12.9 12.88 13 13.14 13.01 13.06 12.91 12.5499 12.53 12.76 12.61 12.24 12.35 12.4 12.19 12.13 12.09 12.28 12.45 12.27 11.65 10.65 10.6057 8.15 9.13 10.2 10.4999 10.3501 10.51 9.51 11/30/08 10.25 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 NPV Performance OVERVIEW | Nuveen Virginia Premium Income Municipal Fund as of November 30, 2008 [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 33% AA 47% A 9% BBB 7% BB or Lower 1% N/R 3% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Dec 0.053 Jan 0.053 Feb 0.053 Mar 0.053 Apr 0.053 May 0.053 Jun 0.053 Jul 0.053 Aug 0.053 Sep 0.054 Oct 0.054 Nov 0.054 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 13.37 13.43 13 13 13.17 13.83 13.93 13.88 13.8 14.07 14.1 13.24 13.33 12.95 13.4701 13.08 13 13.33 13.39 13.51 13.35 13.46 13.47 13.8 13.75 13.993 14.04 14.01 13.48 13.24 12.99 13.24 13.02 12.99 13.4 13.81 13.75 13.51 13.54 13.43 13.43 13.47 13.08 12.92 12.44 8.9 10.81 12.11 11.96 12.08 11.99 11.1 11/30/08 11.49 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.49 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.20 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -5.82% - -------------------------------------------------------------------------------- Market Yield 5.64% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.31% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 109,031 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.01 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 12.60 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -16.07% -13.14% - -------------------------------------------------------------------------------- 1-Year -8.67% -13.08% - -------------------------------------------------------------------------------- 5-Year -2.57% 0.79% - -------------------------------------------------------------------------------- 10-Year 1.79% 3.51% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/Limited 21.4% - -------------------------------------------------------------------------------- Health Care 16.9% - -------------------------------------------------------------------------------- Tax Obligation/General 14.2% - -------------------------------------------------------------------------------- U.S. Guaranteed 12.6% - -------------------------------------------------------------------------------- Transportation 6.6% - -------------------------------------------------------------------------------- Water and Sewer 6.5% - -------------------------------------------------------------------------------- Utilities 5.0% - -------------------------------------------------------------------------------- Housing/Single Family 4.7% - -------------------------------------------------------------------------------- Other 12.1% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 capital gains and net ordinary income distributions in December 2007 of $.0870 per share. 15 NGB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund as of November 30, 2008 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.81 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 11.45 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 3.14% - -------------------------------------------------------------------------------- Market Yield 5.84% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.60% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 35,875 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.38 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 13.90 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -18.12% -17.24% - -------------------------------------------------------------------------------- 1-Year -6.59% -17.18% - -------------------------------------------------------------------------------- 5-Year -1.49% 0.32% - -------------------------------------------------------------------------------- Since Inception 2.27% 2.89% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 19.6% - -------------------------------------------------------------------------------- Transportation 16.6% - -------------------------------------------------------------------------------- Tax Obligation/Limited 13.3% - -------------------------------------------------------------------------------- Health Care 11.5% - -------------------------------------------------------------------------------- Tax Obligation/General 9.1% - -------------------------------------------------------------------------------- Long-Term Care 6.8% - -------------------------------------------------------------------------------- Housing/Single Family 6.1% - -------------------------------------------------------------------------------- Water and Sewer 4.9% - -------------------------------------------------------------------------------- Other 12.1% - -------------------------------------------------------------------------------- [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 38% AA 30% A 12% BBB 10% BB or Lower 1% N/R 9% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Dec 0.0565 Jan 0.0565 Feb 0.0565 Mar 0.0565 Apr 0.0565 May 0.0565 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0575 Oct 0.0575 Nov 0.0575 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 13.5 13.8506 13.33 13.36 13.4 14.04 14.5 14.4801 14.67 14.32 14.082 13.45 13.42 13.23 13.2 13.41 13.3 13.5 13.67 14.09 14.5499 14.57 14.8 14.65 14.98 14.6804 14.81 14.31 14.14 13.79 13.3675 13.64 13.6 13.14 13.68 13.93 13.74 14.26 14.13 13.468 13.9 13.45 13.17 12.26 12.48 9.5001 11.4 10.7 13 12.25 11.12 9.8 11/30/08 11.81 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 capital gains and net ordinary income distributions in December 2007 of $0.1046 per share. 16 NNB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund 2 as of November 30, 2008 [PIE CHART] Credit Quality (as a % of total investments)(1) AAA/U.S. Guaranteed 37% AA 33% A 12% BBB 9% BB or Lower 1% N/R 8% [BAR CHART] 2007-2008 Monthly Tax-Free Dividends Per Common Share(3) Dec 0.0595 Jan 0.0595 Feb 0.0595 Mar 0.0595 Apr 0.0595 May 0.0595 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0595 Oct 0.0595 Nov 0.0595 [LINE GRAPH] Common Share Price Performance -- Weekly Closing Price 12/01/07 13.79 14.01 13.68 13.06 13.34 13.83 14.46 14.3299 14.44 14.52 14.65 13.68 13.8475 13.4 13.95 13.45 13.5 14.35 14.6 14.62 14.55 14.45 14.7 15 14.61 14.33 14.65 14.32 14.15 13.57 13.84 14.31 14.35 13.95 14.56 14.55 14.47 14.75 14.256 14.12 14.1 14.17 14.25 13.8 13.36 10.99 11.5 12.445 13.42 13.37 12.1 11.32 11/30/08 12.52 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 12.52 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 11.86 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 5.56% - -------------------------------------------------------------------------------- Market Yield 5.70% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.39% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 68,036 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.40 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 13.63 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 6-Month (Cumulative) -12.24% -15.30% - -------------------------------------------------------------------------------- 1-Year -4.72% -15.11% - -------------------------------------------------------------------------------- 5-Year 0.05% 0.62% - -------------------------------------------------------------------------------- Since Inception 2.95% 3.07% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 18.6% - -------------------------------------------------------------------------------- Health Care 16.9% - -------------------------------------------------------------------------------- Tax Obligation/Limited 14.0% - -------------------------------------------------------------------------------- U.S. Guaranteed 11.9% - -------------------------------------------------------------------------------- Water and Sewer 11.7% - -------------------------------------------------------------------------------- Housing/Single Family 9.1% - -------------------------------------------------------------------------------- Long-Term Care 6.4% - -------------------------------------------------------------------------------- Other 11.4% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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 capital gains and net ordinary income distributions in December 2007 of $0.0599 per share. 17 NMY | Nuveen Maryland Premium Income Municipal Fund | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 2.2% (1.4% OF TOTAL INVESTMENTS) 9/16 at 100.00 Baa3 $ 2,851,334 $ 4,825 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.6% (1.0% OF TOTAL INVESTMENTS) 5/12 at 100.00 BBB 2,077,125 2,865 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.2% (11.0% OF TOTAL INVESTMENTS) 1,250 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 830,313 Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 1,000 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 865,030 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 A 1,016,123 980 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 A 1,016,123 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 722,618 500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 471,045 1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,044,400 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,825 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 1,295,476 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 1,365 Montgomery County Revenue Authority, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 1,379,141 Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/19 9,445 Morgan State University, Maryland, Student Tuition and Fee Revenue No Opt. Call AA 10,353,608 Refunding Bonds, Academic Fees and Auxiliary Facilities, Series 1993, 6.100%, 7/01/20 - MBIA Insured 1,685 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 1,713,864 Bonds, Series 2006A, 5.000%, 10/01/22 Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel College, Series 2006: 910 5.000%, 11/01/31 11/16 at 100.00 BBB+ 732,286 850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 578,842 - ------------------------------------------------------------------------------------------------------------------------------------ 22,790 Total Education and Civic Organizations 22,018,869 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.1% (14.8% OF TOTAL INVESTMENTS) 1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,291,050 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 2,665,228 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 265,008 Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%, 7/01/40 1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A3 1,066,965 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 18 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,740 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 $ 1,272,027 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 1,023,554 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+ 1,155,225 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 - MBIA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AA 916,870 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 1,120,777 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 12.639%, 7/01/33 (IF) 2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,014,540 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 2,844,908 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 1,175 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 1,114,464 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 1,474,725 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 3,310 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 2,962,450 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured 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 666,923 670 5.500%, 7/01/42 7/17 at 100.00 BBB 479,224 1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,325,354 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 2,809,268 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 A 887,050 Revenue Bonds, University of Maryland Medical System, Series 2004B, 5.000%, 7/01/24 - AMBAC Insured 2,395 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 1,705,240 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 420 5.375%, 7/01/14 1/09 at 100.00 B3 357,609 295 5.300%, 7/01/24 1/09 at 100.00 B3 200,037 - ------------------------------------------------------------------------------------------------------------------------------------ 36,685 Total Health Care 29,618,496 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 13.0% (8.3% OF TOTAL INVESTMENTS) 1,450 Maryland Community Development Administration, FNMA Multifamily 2/11 at 101.00 Aaa 1,403,107 Development Revenue Bonds, Edgewater Village Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative Minimum Tax) 2,500 Maryland Community Development Administration, Housing Revenue 1/09 at 101.00 Aa2 1,970,500 Bonds, Series 1999A, 5.350%,7/01/41 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Housing Revenue 1/10 at 100.00 Aa2 814,722 Bonds, Series 1999B, 6.250%,7/01/32 (Alternative Minimum Tax) 1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 697,910 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 1,000 Maryland Economic Development Corporation, Student Housing Revenue 6/09 at 102.00 Baa3 852,970 Bonds, Collegiate Housing Foundation - Salisbury State University, Series 1999A, 6.000%, 6/01/19 19 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,145 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 $ 872,444 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, Maryland, 1/09 at 101.00 Aaa 3,500,505 FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30 360 Montgomery County Housing Opportunities Commission, Maryland, 1/09 at 100.00 Aa2 360,414 GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series 1995A, 5.900%, 7/01/15 2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,005,560 Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30 540 Prince George's County Housing Authority, Maryland, GNMA 9/09 at 102.00 AAA 477,398 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 12/08 at 100.00 AAA 2,001,920 1,670 5.750%, 12/20/19 12/08 at 100.00 AAA 1,670,752 - ------------------------------------------------------------------------------------------------------------------------------------ 18,375 Total Housing/Multifamily 16,628,202 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.1% (5.8% OF TOTAL INVESTMENTS) 650 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 531,713 Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 2,510 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 2,261,610 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 1,195 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 962,812 Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 4,100 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 3,292,915 Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 1,630 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 1,236,958 Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 1,200 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 865,500 Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 2,330 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 1,751,158 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 478,038 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) 5 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 4,875 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 Securities 6/13 at 100.00 AAA 235,738 Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 14,540 Total Housing/Single Family 11,621,317 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.2% (0.9% OF TOTAL INVESTMENTS) 2,010 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 1,574,554 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.5% (1.6% OF TOTAL INVESTMENTS) 2,455 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 1,644,801 Series 2007A, 5.000%, 1/01/37 1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA Obligated 1/09 at 101.00 BBB+ 943,370 Group, Series 1999A, 5.625%,1/01/25 - RAAI Insured 1,065 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 674,550 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 4,520 Total Long-Term Care 3,262,721 - ------------------------------------------------------------------------------------------------------------------------------------ 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 33.3% (21.4% OF TOTAL INVESTMENTS) $ 2,030 Anne Arundel County, Maryland, General Obligation Bonds, Series 4/14 at 100.00 AAA $ 2,176,586 2004, 5.000%, 4/01/16 1,000 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 1,025,250 2006, 5.000%, 3/01/21 685 Anne Arundel County, Maryland, Water and Sewer Revenue Bonds, 3/16 at 100.00 AAA 739,108 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 2,511,000 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,505,565 1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AA- 1,535,334 Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured 700 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 762,846 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 2,396,027 820 5.000%, 3/01/16 No Opt. Call AA 899,515 Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2004B: 1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,722,110 1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,222,987 1,725 Howard County, Maryland, Metropolitan District Refunding Bonds, 2/12 at 100.00 AAA 1,789,325 Series 2002A, 5.250%, 8/15/18 1,190 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,251,237 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 3,305,430 Public Improvement Bonds, Series2005A, 5.000%, 7/01/15 Montgomery County, Maryland, Consolidated General Obligation Public Improvement Refunding Bonds, Series 2001: 1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,866,655 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,083,740 2,000 Prince George's County, Maryland, General Obligation Consolidated 9/12 at 101.00 AAA 1,971,740 Public Improvement Bonds, Series 2002, 4.100%, 9/15/19 5,770 Prince George's County, Maryland, General Obligation Consolidated 10/13 at 100.00 AAA 6,023,995 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 2,174,220 1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,251,833 1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,246,597 1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,242,484 - ------------------------------------------------------------------------------------------------------------------------------------ 40,905 Total Tax Obligation/General 42,703,584 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.9% (10.2% OF TOTAL INVESTMENTS) 300 Baltimore, Maryland, Special Obligation Bonds, North Locust Point 9/15 at 101.00 N/R 207,297 Project, Series 2005, 5.500%, 9/01/34 340 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ 298,683 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 642,258 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+ 843,386 925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 834,128 4,250 Maryland Department of Transportation, Consolidated No Opt. Call AAA 4,773,813 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 21 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,875 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ $ 1,944,656 Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 1,700 Maryland Stadium Authority, Lease Revenue Bonds, Montgomery 6/13 at 100.00 AA+ 1,685,448 County Conference Center Facilities, Series 2003, 5.000%, 6/15/24 1,000 Montgomery County, Maryland, Lease Revenue Bonds, Metrorail 6/12 at 100.00 AA 1,005,420 Garage, Series 2002, 5.000%, 6/01/21 675 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A3 533,068 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+ 662,299 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 AA 849,160 2,500 5.250%, 7/01/31 - AMBAC Insured No Opt. Call A 1,957,400 1,000 5.250%, 7/01/33 - MBIA Insured No Opt. Call AA 770,070 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,028,033 8/01/21 - FSA Insured 1,500 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA 1,408,725 Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 21,575 Total Tax Obligation/Limited 20,443,844 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.8% (3.1% OF TOTAL INVESTMENTS) 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking System No Opt. Call AA 1,098,573 Facilities, Series 1998A, 5.250%,7/01/17 - FGIC Insured 4,335 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 4,201,309 Facilities Projects, Series2007, 5.000%, 7/01/30 - FSA Insured (UB) 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/08 at 100.00 CCC+ 835,188 American Airlines Inc., Series1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,470 Total Transportation 6,135,070 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.4% (15.6% OF TOTAL INVESTMENTS) (4) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 1,969,220 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA (4) 2,016,540 Projects, Series 1994A, 5.000%,7/01/24 - FGIC Insured (ETM) 1,245 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 1,382,983 2006C, 5.000%, 7/01/31(Pre-refunded 7/01/16) - AMBAC Insured 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) 211,794 200 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 211,918 3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,104,730 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 BBB+ (4) 297,300 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,860 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding and No Opt. Call AAA $ 2,028,423 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 626,589 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: 870 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 982,247 660 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 745,153 2,250 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa2 (4) 2,347,650 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 A (4) 3,224,960 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC Insured (ETM) 3,125 Maryland Health and Higher Educational Facilities Authority, 2/09 at 100.00 Aaa 3,206,406 Revenue Bonds, Howard County General Hospital, Series 1993, 5.500%, 7/01/25 (ETM) 2,040 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 2,242,286 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A (4) 1,669,125 Revenue Bonds, University of Maryland Medical System, Series 2002, 6.000%, 7/01/22 (Pre-refunded 7/01/12) 195 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 223,534 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,019,920 Obligation Bonds, Series 2000A, 5.500%, 10/01/20 1,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa 1,155,720 Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 385 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 401,928 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) 2,189,780 Loan Note, Series 1999A, 6.500%,10/01/24 (Pre-refunded 10/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 29,580 Total U.S. Guaranteed 31,258,206 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.9% (2.5% OF TOTAL INVESTMENTS) 2,500 Maryland Energy Financing Administration, Revenue Bonds, AES 2/09 at 100.00 N/R 2,101,700 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/14 at 100.00 AA 2,963,205 2004PP, 5.000%, 7/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total Utilities 5,064,905 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.7% (2.4% OF TOTAL INVESTMENTS) 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA 1,011,968 Projects, Series 1994A, 5.000%,7/01/24 - FGIC Insured 1,655 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 1,606,939 2006C, 5.000%, 7/01/31 - AMBAC Insured 23 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,260 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA $ 1,160,069 2007D, 5.000%, 7/01/32 - AMBAC Insured 860 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 948,038 Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 4,820 Total Water and Sewer 4,727,014 - ------------------------------------------------------------------------------------------------------------------------------------ $ 216,960 Total Investments (cost $219,008,223) - 155.9% 199,985,241 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (1.7)% (2,167,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 7.5% 9,565,782 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (61.7)% (5) (79,100,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 128,284,023 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 39.6%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 24 NFM | Nuveen Maryland Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.8% (2.3% OF TOTAL INVESTMENTS) $ 2,115 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,249,859 Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured 310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 180,761 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 370,864 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 3,075 Total Consumer Discretionary 1,801,484 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.2% (1.3% OF TOTAL INVESTMENTS) 1,430 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,036,750 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.7% (7.8% OF TOTAL INVESTMENTS) 645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 557,944 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 980 Maryland Economic Development Corporation, Utility Infrastructure 7/11 at 100.00 A 959,459 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, 7/09 at 101.00 BBB- 1,097,100 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- 417,760 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 565 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Maryland Institute College of Art, Series 2007, 6/17 at 100.00 Baa1 381,974 5.000%, 6/01/36 475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 334,780 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 615 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 614,447 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- 182,109 410 5.375%, 2/01/29 2/09 at 101.00 BBB- 296,139 600 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 610,278 Bonds, Series 2006A, 5.000%, 10/01/22 900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 612,891 McDaniel College, Series 2006, 4.500%, 11/01/36 - ------------------------------------------------------------------------------------------------------------------------------------ 7,405 Total Education and Civic Organizations 6,064,881 - ------------------------------------------------------------------------------------------------------------------------------------ 25 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 35.5% (21.9% OF TOTAL INVESTMENTS) $ 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 1,025,550 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AAA 911,710 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/28 - FSA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 102.00 A2 816,910 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 889,020 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 265,008 Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%, 7/01/40 750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A3 480,615 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 Baa3 519,046 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 365,555 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+ 500,598 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+ 1,170,638 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 458,500 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 12.639%, 7/01/33 (IF) 2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,241,176 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 748,660 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 485 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 460,013 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 589,890 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,360 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 1,217,200 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured 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 274,033 270 5.500%, 7/01/42 7/17 at 100.00 BBB 193,120 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 772,750 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 545,734 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 768,920 Revenue Bonds, Union Hospital of Cecil County, Series 2005, 5.000%, 7/01/35 980 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 697,760 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 570 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 A3 506,069 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/09 at 100.00 B3 474,663 Health Corporation, Series 1994, 5.300%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 20,575 Total Health Care 16,893,138 - ------------------------------------------------------------------------------------------------------------------------------------ 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 18.0% (11.1% OF TOTAL INVESTMENTS) $ 2,000 Maryland Community Development Administration, Housing Revenue 1/09 at 101.00 Aa2 $ 1,651,100 Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 831,330 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 201,079 50 5.000%, 10/01/15 10/13 at 100.00 B2 40,829 210 5.625%, 10/01/23 10/13 at 100.00 B2 146,561 1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 N/R 1,214,874 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 Baa2 361,931 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 750 Montgomery County Housing Opportunities Commission, Maryland, 1/09 at 101.00 Aaa 622,133 FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.250%, 7/01/29 (Alternative Minimum Tax) 2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 1,856,500 Multifamily Housing Development Bonds, Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax) 2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/11 at 100.00 Aaa 1,635,140 Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,500 Total Housing/Multifamily 8,561,477 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.2% (6.3% OF TOTAL INVESTMENTS) 250 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 204,505 Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 985 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 887,524 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 300 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 241,710 Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 1,200 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 963,780 Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 618,479 Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 500 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 360,625 Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 470 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 391,364 Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax) 970 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 729,023 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 478,038 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 6,090 Total Housing/Single Family 4,875,048 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.6% (1.6% OF TOTAL INVESTMENTS) 410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 321,178 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 1/09 at 101.00 BBB 935,590 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,410 Total Industrials 1,256,768 - ------------------------------------------------------------------------------------------------------------------------------------ 27 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.2% (2.0% OF TOTAL INVESTMENTS) $ 850 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ $ 569,483 Series 2007A, 5.000%, 1/01/37 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 212,424 Revenue Bonds, Edenwald, Series2006A, 5.400%, 1/01/31 720 Maryland Health and Higher Educational Facilities Authority, 1/17 at 100.00 N/R 477,389 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 A- 278,687 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 2,310 Total Long-Term Care 1,537,983 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.0% (13.5% OF TOTAL INVESTMENTS) 565 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 579,266 2006, 5.000%, 3/01/21 3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,495,797 Assessment Bonds, 67th Issue, 5.000%, 6/01/27 300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 326,934 Series 2005A, 5.000%, 12/01/16 600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 650,976 5.000%, 8/01/16 - MBIA Insured 1,360 Howard County, Maryland, Consolidated Public Improvement Bonds, 2/09 at 101.00 AAA 1,363,006 Series 2001A, 4.750%, 2/15/21 1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,051,460 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 1,493,919 Public Improvement Bonds, Series2006, 5.000%, 5/01/16 740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AA 742,346 4.875%, 3/01/19 - FGIC Insured 700 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 760,977 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 10,125 Total Tax Obligation/General 10,464,681 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 17.8% (11.0% OF TOTAL INVESTMENTS) 465 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 449,785 Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 350 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 249,767 Center Project, Series 2004, 5.750%, 7/01/34 1,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,684,875 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,457,196 Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 370 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 397,251 Montgomery County Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13 740 Prince George's County, Maryland, Lease Revenue Bonds, Upper 6/13 at 100.00 AA+ 791,519 Marlboro Justice Center, Series2003A, 5.000%, 6/30/14 - MBIA Insured 895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 470,698 National Harbor Project, Series2005, 5.200%, 7/01/34 450 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 236,817 Victoria Falls Project, Series2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 782,960 Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA $ 657,405 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+ 1,303,842 Loan Note, Series 1999A, 6.375%, 10/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 9,165 Total Tax Obligation/Limited 8,482,115 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.7% (2.9% OF TOTAL INVESTMENTS) 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 520,813 Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 7/01/27 - AMBAC Insured 1,785 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,729,951 Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB) - ------------------------------------------------------------------------------------------------------------------------------------ 2,435 Total Transportation 2,250,764 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 25.4% (15.6% OF TOTAL INVESTMENTS) (4) 1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 999,379 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 215 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 238,828 2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured 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) 492,133 500 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 529,485 500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 553,160 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 643,009 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 672,606 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) 2,144,180 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 710 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 813,894 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,299,816 1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,689,749 960 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/10 at 100.00 AAA 1,002,211 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 11,575 Total U.S. Guaranteed 12,078,450 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.9% (1.2% OF TOTAL INVESTMENTS) 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 2/09 at 100.00 N/R 840,680 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 29 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.4% (1.5% OF TOTAL INVESTMENTS) $ 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA $ 276,724 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 497,173 2007D, 5.000%, 7/01/32 - AMBAC Insured 355 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 391,341 Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,180 Total Water and Sewer 1,165,238 - ------------------------------------------------------------------------------------------------------------------------------------ $ 88,275 Total Investments (cost $88,365,372) - 162.4% 77,309,457 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (1.9)% (893,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 6.7% 3,184,315 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (67.2)% (5) (32,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 47,600,772 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 41.4%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 30 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.9% (2.4% OF TOTAL INVESTMENTS) $ 2,320 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,371,004 Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured 310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 180,761 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 370,864 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 3,280 Total Consumer Discretionary 1,922,629 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS) 720 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 522,000 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Tobacco Settlement Financing Corporation, Virgin Islands, Tobacco 5/11 at 100.00 Baa3 587,760 Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ 1,520 Total Consumer Staples 1,109,760 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.9% (9.8% OF TOTAL INVESTMENTS) 1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 1,021,801 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 500 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 332,125 Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 557,944 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 250 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 BBB- 182,850 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 390,967 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- 417,760 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 750 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 532,388 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 381,974 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 352,400 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 603,635 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 AA 491,680 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 AA 500,790 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/20 - FGIC Insured 31 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) 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+ $ 1,145,803 Bonds, Series 2001B, 4.500%, 4/01/19 650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 661,135 Bonds, Series 2006A, 5.000%, 10/01/22 200 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 160,942 McDaniel College, Series 2006, 5.000%, 11/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 8,805 Total Education and Civic Organizations 7,734,194 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 28.2% (17.4% OF TOTAL INVESTMENTS) 1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AAA 873,140 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 656,107 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 889,020 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 A3 480,615 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 Baa3 522,701 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 365,555 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+ 500,598 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 - MBIA Insured 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 458,500 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 12.639%, 7/01/33 (IF) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 748,660 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 480 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 455,270 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 589,890 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,360 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 1,217,200 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured 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 274,033 280 5.500%, 7/01/42 7/17 at 100.00 BBB 200,273 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 1,159,125 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 545,734 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 1,129,185 Revenue Bonds, Union Hospital of Cecil County, Series 2005, 5.000%, 7/01/40 980 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 697,760 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,610 Montgomery County, Maryland, Economic Development Revenue Bonds, 12/11 at 100.00 AA $ 1,492,889 Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/09 at 100.00 B3 474,663 Health Corporation, Series 1994, 5.300%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 17,200 Total Health Care 13,730,918 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.5% (5.9% OF TOTAL INVESTMENTS) 10 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 9,168 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 2,614,532 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 922,776 Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 697,910 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 Baa2 396,219 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,785 Total Housing/Multifamily 4,640,605 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.4% (6.4% OF TOTAL INVESTMENTS) 250 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 204,505 Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 1,030 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 928,071 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 300 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 241,710 Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 803,150 Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 618,479 Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 500 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 360,625 Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 845 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 693,813 Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) 970 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 729,023 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) 600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 478,038 Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 6,310 Total Housing/Single Family 5,057,414 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.9% (1.8% OF TOTAL INVESTMENTS) 410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 321,178 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,150 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 1/09 at 101.00 BBB 1,075,929 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,560 Total Industrials 1,397,107 - ------------------------------------------------------------------------------------------------------------------------------------ 33 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.3% (2.0% OF TOTAL INVESTMENTS) $ 860 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ $ 576,183 Series 2007A, 5.000%, 1/01/37 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 212,424 Revenue Bonds, Edenwald, Series2006A, 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 393,945 220 5.250%, 1/01/27 1/17 at 100.00 N/R 145,869 435 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 275,520 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 2,315 Total Long-Term Care 1,603,941 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.6% (16.5% OF TOTAL INVESTMENTS) 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AAA 754,823 Consolidated Water and Sewerage, Series 1999, 4.500%, 8/01/19 300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 326,934 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- 997,250 1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,034,025 600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 650,976 5.000%, 8/01/16 - MBIA Insured 510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA 518,170 Improvement Bonds, Series 2001, 4.750%, 12/01/19 1,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,101,810 Public Improvement Bonds, Series2005A, 5.000%, 7/01/15 4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 4,928,044 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 718,533 Series 2001, 5.000%, 7/01/24 - FSA Insured 800 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 869,688 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,087,110 George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 12,455 Total Tax Obligation/General 12,987,363 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.5% (12.1% OF TOTAL INVESTMENTS) 465 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 449,785 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+ 562,023 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+ 1,597,269 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,667,087 110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ 96,633 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 350 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 249,767 Center Project, Series 2004, 5.750%, 7/01/34 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA $ 1,123,250 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,457,196 Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 1,000 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A3 789,730 Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 470,698 National Harbor Project, Series2005, 5.200%, 7/01/34 475 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 249,974 Victoria Falls Project, Series2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 782,960 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,470 Total Tax Obligation/Limited 9,496,372 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 6.1% (3.8% 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 A 520,813 1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 A 744,840 1,780 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,725,105 Facilities Projects, Series2007, 5.000%, 7/01/30 - FSA Insured (UB) - ------------------------------------------------------------------------------------------------------------------------------------ 3,430 Total Transportation 2,990,758 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.4% (16.9% OF TOTAL INVESTMENTS) (4) 1,000 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,032,700 Public Improvement Bonds, Series2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) 215 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 238,828 2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured 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) 105,897 100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 105,959 90 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ (4) 97,298 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) 31,421 25 6.750%, 4/01/23 (Pre-refunded 4/01/11) 4/11 at 101.00 N/R (4) 27,658 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call A (4) 1,358,784 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 577,059 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 1,345,213 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) 2,144,179 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 35 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA $ 1,146,330 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 1,098,840 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 2,981,909 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,057,880 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 12,596 Total U.S. Guaranteed 13,349,955 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.3% (2.0% OF TOTAL INVESTMENTS) 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/09 at 101.00 AA 764,050 10/01/34 - MBIA Insured 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 2/09 at 100.00 N/R 840,680 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 1,604,730 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.4% (1.5% OF TOTAL INVESTMENTS) 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 276,724 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 497,173 2007D, 5.000%, 7/01/32 - AMBAC Insured 355 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 391,341 Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,180 Total Water and Sewer 1,165,238 - ------------------------------------------------------------------------------------------------------------------------------------ $ 88,906 Total Investments (cost $88,954,826) - 161.7% 78,790,984 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (1.8)% (890,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 5.8% 2,838,368 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (65.7)% (5) (32,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 48,739,352 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 40.6%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 36 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.2% (2.0% OF TOTAL INVESTMENTS) $ 2,385 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,409,416 Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured 380 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 221,578 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 700 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 399,392 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 3,465 Total Consumer Discretionary 2,030,386 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.9% (1.8% OF TOTAL INVESTMENTS) 2,500 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,812,500 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.6% (7.9% OF TOTAL INVESTMENTS) 225 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 209,005 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 625 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 415,156 Bonds, Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 690 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 596,871 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 522,200 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 929,330 Revenue Bonds, Johns Hopkins University, Series 2002A, 5.000%, 7/01/32 925 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 656,611 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 625 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 440,500 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 710 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 726,408 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 AA 901,370 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+ 982,922 Bonds, Series 2001B, 4.625%, 4/01/21 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 813,704 Bonds, Series 2006A, 5.000%, 10/01/22 890 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 716,192 McDaniel College, Series 2006, 5.000%, 11/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 9,100 Total Education and Civic Organizations 7,910,269 - ------------------------------------------------------------------------------------------------------------------------------------ 37 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 27.4% (17.2% OF TOTAL INVESTMENTS) $ 700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 558,978 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/31 1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AAA 873,140 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 656,107 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 1,025,088 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 1,750 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 1,159,410 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 A3 557,513 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 Baa3 646,979 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 511,777 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+ 616,120 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 - MBIA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 A+ 936,510 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 576,064 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 12.639%, 7/01/33 (IF) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 748,660 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 595 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 564,346 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 758,430 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,690 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 1,512,550 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured 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 346,668 340 5.500%, 7/01/42 7/17 at 100.00 BBB 243,188 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 502,288 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 662,677 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 1,594,800 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 1,220 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 868,640 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 637,166 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 900 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/09 at 100.00 B3 610,281 Health Corporation, Series 1994, 5.300%, 7/01/24 - ------------------------------------------------------------------------------------------------------------------------------------ 21,755 Total Health Care 17,167,380 - ------------------------------------------------------------------------------------------------------------------------------------ 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 15.9% (10.0% OF TOTAL INVESTMENTS) $ 980 Maryland Community Development Administration, Housing Revenue 7/12 at 100.00 Aa2 $ 743,585 Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative Minimum Tax) 1,250 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 872,388 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 N/R 15,503 150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 N/R 101,240 475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 361,931 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 407,483 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 2,282,520 4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 5,189,800 Collateralized Mortgage Revenue Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 - ------------------------------------------------------------------------------------------------------------------------------------ 11,250 Total Housing/Multifamily 9,974,450 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 7.7% (4.8% OF TOTAL INVESTMENTS) 350 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 286,307 Housing and Community Development, Residential Revenue Bonds, Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax) 1,280 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 1,153,331 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 595 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 479,392 Housing and Community Development, Residential Revenue Bonds, Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax) 1,200 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 963,780 Housing and Community Development, Residential Revenue Bonds, Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax) 815 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 618,479 Housing and Community Development, Residential Revenue Bonds, Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax) 620 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 447,175 Housing and Community Development, Residential Revenue Bonds, Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax) 1,160 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 871,821 Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 6,020 Total Housing/Single Family 4,820,285 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.2% (1.4% OF TOTAL INVESTMENTS) 510 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 399,514 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 1/09 at 101.00 BBB 935,590 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 1,510 Total Industrials 1,335,104 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.0% (1.9% OF TOTAL INVESTMENTS) 1,050 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 703,479 Series 2007A, 5.000%, 1/01/37 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 283,232 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 39 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) 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 $ 220,609 520 5.250%, 1/01/27 1/17 at 100.00 N/R 344,781 540 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 342,025 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ------------------------------------------------------------------------------------------------------------------------------------ 2,790 Total Long-Term Care 1,894,126 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 20.0% (12.6% OF TOTAL INVESTMENTS) 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,027,450 Refunding Bonds, Series 2002, 4.375%, 4/01/17 380 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 414,116 Series 2005A, 5.000%, 12/01/16 1,260 Charles County, Maryland, Consolidated General Obligation Public 1/12 at 101.00 AA 1,305,977 Improvement Bonds, Series 2002, 4.400%, 1/15/16 710 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 770,322 5.000%, 8/01/16 - MBIA Insured 1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,051,460 George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 No Opt. Call AAA 2,038,349 1,850 Montgomery County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 1,440 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,581,797 Public Improvement Bonds, Series 2006, 5.000%, 5/01/16 1,000 Prince George's County, Maryland, General Obligation No Opt. Call AAA 1,075,630 Consolidated Public Improvement Bonds, Series 2004C, 5.000%, 12/01/11 1,000 St. Mary's County, Maryland, General Obligation Hospital Bonds, No Opt. Call AA 1,085,460 Series 2002, 5.000%, 10/01/12 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,087,110 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,087,110 George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ------------------------------------------------------------------------------------------------------------------------------------ 11,640 Total Tax Obligation/General 12,524,781 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 34.6% (21.7% OF TOTAL INVESTMENTS) 1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,060,420 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15 135 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ 127,819 Development Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 - RAAI Insured 450 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 321,129 Center Project, Series 2004, 5.750%, 7/01/34 5,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,616,246 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,200 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 2,134,242 Department of Transportation Headquarters Building, Series 2002, 4.750%, 6/01/22 450 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 483,143 Montgomery County Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13 2,935 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 3,108,605 Montgomery County Wayne Avenue Parking Project, Series 2002A, 5.250%, 9/15/16 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) 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+ $ 1,475,021 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,614,978 1,210 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 636,363 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 302,600 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 939,552 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- 943,110 1,205 5.250%, 7/01/20 7/12 at 100.00 BBB- 1,084,500 1,275 5.250%, 7/01/21 7/12 at 100.00 BBB- 1,132,761 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA 657,405 Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 22,420 Total Tax Obligation/Limited 21,637,894 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.4% (2.1% OF TOTAL INVESTMENTS) 2,210 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 2,141,844 Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 18.7% (11.7% OF TOTAL INVESTMENTS) (4) 10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AAA 10,285 Consolidated General Improvements, Series 1999, 5.000%, 5/15/19 (Pre-refunded 5/15/09) 255 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 283,262 2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured 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) 105,897 100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 105,959 100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 103,491 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 BBB+ (4) 118,748 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) 309,770 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 A (4) 307,344 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 796,891 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 855 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 980,112 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,525 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,624,598 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 3,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,478,895 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 41 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA $ 1,008,530 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured (ETM) 235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 254,719 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA+ (4) 2,175,620 Bonds, Series 2002A, 5.125%,4/01/22 (Pre-refunded 4/01/12) 25 Washington Suburban Sanitary District, Montgomery and Prince 6/11 at 101.00 AAA 27,003 George's Counties, Maryland, General Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17 (Pre-refunded 6/01/11) - ------------------------------------------------------------------------------------------------------------------------------------ 11,105 Total U.S. Guaranteed 11,691,124 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.8% (1.2% OF TOTAL INVESTMENTS) 1,250 Maryland Energy Financing Administration, Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 2/09 at 100.00 N/R 1,050,850 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.0% (3.7% OF TOTAL INVESTMENTS) 2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AA 2,306,935 Projects, Series 2002A, 5.125%,7/01/42 - FGIC Insured 345 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 334,981 2006C, 5.000%, 7/01/31 - AMBAC Insured 660 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 607,655 2007D, 5.000%, 7/01/32 - AMBAC Insured 430 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 474,019 Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 4,005 Total Water and Sewer 3,723,590 - ------------------------------------------------------------------------------------------------------------------------------------ $ 111,020 Total Investments (cost $112,274,438) - 159.4% 99,714,583 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (1.8)% (1,105,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.8% 2,940,444 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (62.4)% (5) (39,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 62,550,027 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 39.1%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 42 NPV | Nuveen Virginia Premium Income Municipal Fund | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS) $ 6,640 Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 6/17 at 100.00 BBB $ 3,563,488 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.3% (3.3% OF TOTAL INVESTMENTS) 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 884,730 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 473,075 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- 568,974 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+ 2,107,492 Revenue Bonds, Public Higher Education Financing Program, Series 2001A, 5.000%, 9/01/26 - MBIA Insured 1,635 Virginia Commonwealth University, Revenue Bonds, Series 2004A, 5/14 at 101.00 AA- 1,700,367 5.000%, 5/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,955 Total Education and Civic Organizations 5,734,638 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 26.9% (16.9% OF TOTAL INVESTMENTS) 2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,587,760 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- 522,542 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+ 4,675,349 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 907,990 Hospital Facilities 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 969,150 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AA 1,113,160 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 AA 1,764,238 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 1,440 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,240,978 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 AA 1,610,955 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 1,195,845 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 4,750 Medical College of Virginia Hospital Authority, General Revenue 1/09 at 102.00 AA 4,061,914 Bonds, Series 1998, 5.125%,7/01/23 - MBIA Insured 3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AA 3,051,570 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - MBIA Insured 43 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (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 $ 1,685,960 1,010 5.250%, 6/15/31 6/16 at 100.00 A3 807,596 1,695 5.250%, 6/15/37 6/16 at 100.00 A3 1,346,305 2,210 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 1,554,846 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- 1,235,048 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 33,580 Total Health Care 29,331,206 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.7% (2.3% OF TOTAL INVESTMENTS) 1,385 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,394,861 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 464,635 1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,287,960 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, Vistas 4/10 at 102.00 AAA 892,110 GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,385 Total Housing/Multifamily 4,039,566 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 7.5% (4.7% OF TOTAL INVESTMENTS) 335 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 246,788 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) 1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 932,960 Bonds, Series 2001H-1, 5.350%,7/01/31 - MBIA Insured 1,500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 1,094,745 Bonds, Series 2005C-2, 4.750%,10/01/32 (Alternative Minimum Tax) 2,740 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 2,066,015 Bonds, Series 2006 D1, 4.900%,1/01/33 (Alternative Minimum Tax) 1,340 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 1,021,134 Bonds, Series 2006, 4.800%,7/01/29 (Alternative Minimum Tax) 3,900 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 2,850,783 Bonds, Series 2007B, 4.750%,7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,815 Total Housing/Single Family 8,212,425 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.8% (1.2% OF TOTAL INVESTMENTS) 2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 1,980,900 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 - 4.1% (2.6% OF TOTAL INVESTMENTS) 2,765 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,637,765 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 514,760 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 1,392,892 Mortgage-Backed Securities Program Assisted Living Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29 44 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- $ 72,700 1,345 5.000%, 10/01/35 No Opt. Call BBB- 898,137 - ------------------------------------------------------------------------------------------------------------------------------------ 6,505 Total Long-Term Care 4,516,254 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS) 500 Bedford County Industrial Development Authority, Virginia, 2/09 at 101.00 B2 318,475 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 633,870 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) - ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Materials 952,345 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.6% (14.2% OF TOTAL INVESTMENTS) Chesapeake, Virginia, General Obligation Bonds, Water and Sewerage Series 2003B: 1,880 5.000%, 6/01/21 6/13 at 100.00 AA+ 1,912,449 2,060 5.000%, 6/01/23 6/13 at 100.00 AA+ 2,079,508 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 AA 1,368,821 and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured 105 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 106,947 Bonds, Series 2002A, 5.250%, 5/01/22 1,435 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,517,096 Bonds, Series 2005B, 5.000%, 6/01/18 1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,202,076 5.000%, 6/01/21 1,350 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 AA 1,458,824 5.000%, 5/01/16 1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AA 1,400,474 5.000%, 4/01/15 - MBIA Insured 1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,492,195 5.000%, 7/15/21 - FSA Insured 1,430 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,506,619 Series 2002A, 5.000%, 10/01/17 1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 1,242,950 5.000%, 12/01/15 2,155 Virginia Beach, Virginia, General Obligation Bonds, Series 5/13 at 100.00 AAA 2,281,585 2003B, 5.000%, 5/01/15 1,100 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 1,139,072 2005, 5.000%, 1/15/20 4,500 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 4,451,040 10/01/27 (UB) 1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,452,032 Bonds, Series 2001, 5.000%, 6/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 23,875 Total Tax Obligation/General 24,611,688 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 34.0% (21.4% 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 N/R 247,950 260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 164,492 1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AA 1,338,807 Revenue Bonds, School Facilities Project, Series 2005, 5.000%, 1/01/20 - MBIA Insured Cumberland County, Virginia, Certificates of Participation, Series 1997: 890 6.200%, 7/15/12 No Opt. Call N/R 909,242 1,375 6.375%, 7/15/17 No Opt. Call N/R 1,304,133 1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AA 1,042,560 Lease Revenue Bonds, Series2004B, 5.125%, 2/15/16 - MBIA Insured 45 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ $ 1,044,990 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+ 2,444,145 1,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 1,174,134 1,660 Front Royal and Warren County Industrial Development Authority, 4/14 at 100.00 AAA 1,716,440 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 1,303,934 Revenue Bonds, County Government Projects, Series 2005, 5.000%, 7/15/19 445 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 395,681 Public Facility Lease Revnue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 1,930 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aa2 1,965,280 County Facilities, Series2005, 5.000%, 6/01/18 - AMBAC Insured 1,185 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,032,360 Revenue Bonds, Series 2002D, 5.000%,7/01/32 - FSA Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 1,565,920 Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured 5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 388,750 Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured 5,875 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 1,434,910 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- 216,693 320 5.250%, 7/01/36 7/12 at 100.00 BBB- 241,936 1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 A 993,295 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 AA 1,537,152 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured 2,500 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 2,280,200 Public Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC Insured (UB) 1,400 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 1,406,048 Bonds, Series 2005A, 5.000%,5/01/22 2,000 Virginia Public School Authority, School Financing Bonds, 1997 8/10 at 101.00 AA+ 2,039,280 Resolution, Series 2000B, 5.000%, 8/01/18 - MBIA Insured 1,625 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 1,701,928 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 98,212 550 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 537,796 1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,766,170 Pooled Loan Bond Program, Series2002A, 5.000%, 5/01/19 2,815 Virginia Resources Authority, Infrastructure Revenue Bonds, 11/16 at 100.00 AAA 2,657,332 Pooled Loan Bond Program, Series2006C, 5.000%, 11/01/36 2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,169,321 U.S. Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 - ------------------------------------------------------------------------------------------------------------------------------------ 47,010 Total Tax Obligation/Limited 37,119,091 - ------------------------------------------------------------------------------------------------------------------------------------ 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 10.5% (6.6% OF TOTAL INVESTMENTS) $ 2,500 Metropolitan Washington D.C. Airports Authority, System Revenue 10/17 at 100.00 AA $ 1,819,025 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 AA 3,416,080 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 1,000 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AA 919,690 5.000%, 2/01/23 - MBIA Insured 2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AA 2,413,700 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 1,260 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA 873,571 Facilities, 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 2,008,820 Bonds, Series 2001A, 5.250%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ 13,260 Total Transportation 11,450,886 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.1% (12.6% OF TOTAL INVESTMENTS) (5) 3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 A (5) 3,796,904 Rate Revenue Bonds, Institute for Defense Analyses, Series 2000A, 5.900%, 10/01/30 (Pre-refunded 10/01/10) - AMBAC Insured 750 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 762,105 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) 925 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,013,615 Refunding Bonds, Series 2002, 5.375%, 4/01/19 (Pre-refunded 4/01/12) 600 Greater Richmond Convention Center Authority, Virginia, Hotel 6/10 at 101.00 AAA 645,444 Tax Revenue Bonds, Convention Center Expansion Project, Series 2000, 6.125%, 6/15/25 (Pre-refunded 6/15/10) 60 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 66,833 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12) 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) 422,543 800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 904,096 815 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 Aaa 893,525 Revenue Bonds, Series 2002D, 5.000%,7/01/32 (Pre-refunded 7/01/12) - FSA Insured 2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,484,925 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 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) 795,976 880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB- (5) 953,005 625 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 652,481 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 460 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 500,572 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 1,649,813 3,850 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 4,149,221 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (5) 2,189,780 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 20,450 Total U.S. Guaranteed 21,880,838 - ------------------------------------------------------------------------------------------------------------------------------------ 47 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.9% (5.0% 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 AA $ 1,772,330 1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AA 1,881,702 2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AA 2,708,428 2,500 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 2,256,150 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 8,780 Total Utilities 8,618,610 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.4% (6.5% 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 108,680 800 5.000%, 4/01/27 4/12 at 100.00 AAA 774,744 1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,708,085 Refunding Bonds, Series 1999, 5.000%, 5/01/28 1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,002,040 Sewerage System Revenue Bonds, Series2004, 5.000%, 1/01/26 Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AA+ 1,312,777 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AA+ 1,375,832 2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,345,715 Series 2000, 6.000%, 9/01/24 1,800 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AA 1,684,098 Series 2005, 5.000%, 10/01/30 1,515 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 1,027,019 Series 2007, Trust 3036, 11.378%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 11,930 Total Water and Sewer 11,338,990 - ------------------------------------------------------------------------------------------------------------------------------------ $ 196,685 Total Investments (cost $190,745,270) - 159.0% 173,350,925 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (4.6)% (4,990,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.1% 4,470,437 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (58.5)% (6) (63,800,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 109,031,362 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 48 NGB | Nuveen Virginia Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS) $ 1,660 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 890,872 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 304,197 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 2,375 Total Consumer Staples 1,195,069 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.0% (4.4% OF TOTAL INVESTMENTS) 500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 416,645 Educational 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 442,365 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 850 Prince William County Park Authority, Virginia, Park 10/09 at 101.00 A3 804,228 Facilities Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 160 5.375%, 2/01/19 2/09 at 101.00 BBB- 135,523 320 5.375%, 2/01/29 2/09 at 101.00 BBB- 231,133 500 Virginia College Building Authority, Educational Facilities 1/09 at 101.00 BBB+ 473,340 Revenue Refunding Bonds, Marymount University, Series 1998, 5.100%, 7/01/18 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,830 Total Education and Civic Organizations 2,503,234 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 18.5% (11.5% OF TOTAL INVESTMENTS) 250 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 185,128 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+ 96,399 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 BBB+ 804,270 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 500 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 453,995 Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2007, 5.250%, 6/15/23 500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 387,660 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 820 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AA 628,989 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 480 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 413,659 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 525 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 418,546 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 49 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 N/R $ 652,976 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 639,863 360 5.250%, 6/15/31 6/16 at 100.00 A3 287,856 605 5.250%, 6/15/37 6/16 at 100.00 A3 480,539 785 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 552,287 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 AA- 619,691 Hospital Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 8,190 Total Health Care 6,621,858 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.4% (3.4% OF TOTAL INVESTMENTS) 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 999,130 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+ 954,990 Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 1,954,120 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.7% (6.1% OF TOTAL INVESTMENTS) 1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 932,960 Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 600 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 437,898 Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 960 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 723,859 Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative Minimum Tax) 480 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 365,779 Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 1,400 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 1,023,358 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,440 Total Housing/Single Family 3,483,854 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.2% (0.1% OF TOTAL INVESTMENTS) 50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 49,523 Solid Waste Disposal Facility Revenue Refunding Bonds, USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 10.9% (6.8% OF TOTAL INVESTMENTS) 700 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 451,192 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 226,051 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 595,282 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 351,550 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 540 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- $ 360,590 Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 700 Industrial Development Authority of the County of Prince 1/17 at 100.00 N/R 473,536 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 514,118 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 321,604 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 229,684 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 258,069 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 122,512 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 5,850 Total Long-Term Care 3,904,188 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.1% (0.6% OF TOTAL INVESTMENTS) 100 Bedford County Industrial Development Authority, Virginia, 2/09 at 101.00 B2 63,695 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 14,204 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 139,451 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- 165,510 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 840 Total Materials 382,860 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.6% (9.1% OF TOTAL INVESTMENTS) 700 Loudoun County, Virginia, General Obligation Bonds, Series 12/16 at 100.00 AAA 705,047 2006, 5.000%, 12/01/25 500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 528,605 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 845 Newport News, Virginia, General Obligation Bonds, Series 5/14 at 101.00 AA 913,115 2004C, 5.000%, 5/01/16 620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 653,995 5.000%, 7/15/17 - FSA Insured 400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 438,044 5.000%, 12/01/15 400 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 414,208 2005, 5.000%, 1/15/20 1,600 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 1,590,576 10/01/26 (UB) - ------------------------------------------------------------------------------------------------------------------------------------ 5,065 Total Tax Obligation/General 5,243,590 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.2% (13.3% OF TOTAL INVESTMENTS) 100 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 101,725 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 442,090 Revenue Bonds, Series 2003, 7.500%, 6/01/33 51 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) 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 N/R $ 88,818 95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 60,103 500 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 522,495 Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 160 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 142,267 Public Facility Lease Revnue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 580 Prince William County, Virginia, Certificates of 6/15 at 100.00 Aa2 577,187 Participation, County Facilities, Series2005, 5.000%, 6/01/20 - AMBAC Insured 700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 548,072 Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 675,090 Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 A 963,470 Virginia, 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 AA 576,432 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured 890 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 811,751 Public Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC Insured (UB) 960 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 970,301 Loan Note, Series 1999A, 6.375%, 10/01/19 500 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 502,160 Revenue Bonds, Series 2005A, 5.000%,5/01/22 348 Virginia Gateway Community Development Authority, Prince 3/13 at 102.00 N/R 278,351 William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 345 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 361,332 Resolution, Series 2005C, 5.000%, 8/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ 10,398 Total Tax Obligation/Limited 7,621,644 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 26.6% (16.6% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,022,480 Bonds, Richmond International Airport, Series 2005A, 5.000%, 7/01/18 - FSA Insured 1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, General No Opt. Call AA 946,850 Resolution Revenue Refunding Bonds, Series 1998, 5.500%, 7/01/25 - MBIA Insured 3,000 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA 2,498,427 System Revenue Bonds, Series 2001A, 5.500%, 10/01/27 - MBIA Insured (Alternative Minimum Tax) 250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA 233,700 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 AA 1,281,030 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AA 459,845 5.000%, 2/01/23 - MBIA Insured 500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AA 482,740 Bonds, Expressway System, Series2002, 5.250%, 7/15/22 - FGIC Insured 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 455 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA $ 315,456 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) 1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,230,402 Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,066,500 Bonds, Series 2001B, 5.125%,8/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,680 Total Transportation 9,537,430 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 31.4% (19.6% OF TOTAL INVESTMENTS) (5) 500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) 554,620 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 1,036,490 Series 2001, 5.000%, 7/15/21 - FSA Insured (ETM) Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: 30 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 Baa3 (5) 31,944 850 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 Baa3 (5) 913,181 20 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 22,278 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12) 2,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AA (5) 2,482,719 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) 478,882 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 10/10 at 101.00 AAA 1,499,880 1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,490,955 250 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 260,993 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 175 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 (5) 186,191 Horse Center Revenue Refunding Bonds, Series 2001B, 6.125%, 7/15/11 (ETM) 915 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 995,703 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) 725 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/15 at 100.00 AAA 781,347 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) 540,535 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 (Pre-refunded 2/01/12) - ------------------------------------------------------------------------------------------------------------------------------------ 10,700 Total U.S. Guaranteed 11,275,718 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.5% (1.5% OF TOTAL INVESTMENTS) 1,000 Mecklenburg County Industrial Development Authority, Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) 10/12 at 100.00 Baa1 902,460 - ------------------------------------------------------------------------------------------------------------------------------------ 53 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.9% (4.9% OF TOTAL INVESTMENTS) $ 2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ $ 2,004,000 Refunding Bonds, Series 1999, 5.000%, 5/01/22 500 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA 467,805 Bonds, Series 2005, 5.000%, 10/01/30 545 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 369,456 Series 2007, Trust 3036, 11.378%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 3,045 Total Water and Sewer 2,841,261 - ------------------------------------------------------------------------------------------------------------------------------------ $ 67,463 Total Investments (cost $66,026,832) - 160.3% 57,516,809 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (4.9)% (1,770,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 11.5% 4,127,903 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (66.9)% (6) (24,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 35,874,712 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 41.7%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 54 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS) $ 3,100 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 1,663,677 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 608,394 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 - ------------------------------------------------------------------------------------------------------------------------------------ 4,530 Total Consumer Staples 2,272,071 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.3% (4.5% OF TOTAL INVESTMENTS) 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 A3 966,540 Revenue Bonds, National Wildlife Federation, Series 1999, 5.375%, 9/01/29 - MBIA Insured 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 884,730 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 1,219,230 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, 10/10 at 100.00 AA 1,864,480 Educational Facilities First Mortgage Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total Education and Civic Organizations 4,934,980 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 26.9% (16.9% OF TOTAL INVESTMENTS) 1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,190,820 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- 361,760 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 BBB+ 2,412,810 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 907,990 Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2007, 5.250%, 6/15/23 675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 523,341 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,500 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AA 1,150,590 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 960 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 827,318 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,155 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 920,801 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 N/R 979,464 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured 55 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Prince William County Industrial Development Authority, 4/09 at 102.00 Aa3 $ 970,070 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 AA 3,958,573 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 1,066,438 655 5.250%, 6/15/31 6/16 at 100.00 A3 523,738 1,095 5.250%, 6/15/37 6/16 at 100.00 A3 869,737 1,430 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 1,006,077 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 AA- 619,691 Hospital Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 21,500 Total Health Care 18,289,218 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 14.6% (9.1% OF TOTAL INVESTMENTS) 7,485 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 6,983,203 Bonds, Series 2001H-1, 5.350%,7/01/31 - MBIA Insured 500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 364,915 Bonds, Series 2005C-2, 4.750%,10/01/32 (Alternative Minimum Tax) 870 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 662,975 Bonds, Series 2006, 4.800%,7/01/29 (Alternative Minimum Tax) 2,600 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 1,900,522 Bonds, Series 2007B, 4.750%,7/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,455 Total Housing/Single Family 9,911,615 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 10.2% (6.4% OF TOTAL INVESTMENTS) 1,300 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 837,928 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 419,809 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 1,075,061 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 351,550 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 855 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 570,935 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 1/17 at 100.00 N/R 879,424 William, Virginia, Residential Care Facility Revenue Bonds, Westminster at Lake, First Mortgage, Series 2006, 5.125%, 1/01/26 1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,067,783 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 588,596 Residential Revenue Bonds, Virginia Lutheran Homes Incorporated, Series 2006, 5.000%, 12/01/39 650 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 426,556 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 650 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 479,271 Care Facility Mortgage Revenue Bonds, Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R $ 227,523 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 10,365 Total Long-Term Care 6,924,436 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.0% (0.6% OF TOTAL INVESTMENTS) 165 Bedford County Industrial Development Authority, Virginia, 2/09 at 101.00 B2 105,097 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 291,580 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- 331,020 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,625 Total Materials 727,697 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 29.6% (18.6% OF TOTAL INVESTMENTS) 1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA+ 1,867,565 5.500%, 12/01/16 1,000 Loudoun County, Virginia, General Obligation Bonds, Series 12/16 at 100.00 AAA 1,007,210 2006, 5.000%, 12/01/25 1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 AAA 1,774,738 Improvement Bonds, Series 2001C, 4.500%, 11/01/17 95 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 96,761 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 1,000 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 1,057,210 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 40 Portsmouth, Virginia, General Obligation Public Utility 6/21 at 100.00 AA- 40,002 Refunding Bonds, Series 2001B, 5.000%,6/01/21 - FGIC Insured Powhatan County, Virginia, General Obligation Bonds, Series 2001: 660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 A1 644,926 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 A1 925,710 Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002A: 2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,481,072 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,499,016 1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,271,142 Bonds, Series 2002B, 5.000%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 600 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 621,312 2005, 5.000%, 1/15/20 2,900 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 2,882,919 10/01/26 (UB) 1,500 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AAA 1,536,030 Improvement Bonds, Series 2001, 5.000%, 6/01/19 1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AAA 1,429,216 Public Improvement Bonds, Series 2002, 5.000%, 3/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 19,810 Total Tax Obligation/General 20,134,829 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.3% (14.0% OF TOTAL INVESTMENTS) 130 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 132,243 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 884,180 Revenue Bonds, Series 2003, 7.500%, 6/01/33 57 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) 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 N/R $ 155,432 165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 104,389 800 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 835,992 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+ 1,833,012 Lease Revenue Refunding Bonds, Public Facility Project, Series 2003, 5.000%, 3/01/19 285 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 253,413 Public Facility Lease Revnue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 1,300 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 1,017,848 Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured 2,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 450,060 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- 327,084 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 A 963,470 Virginia, 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 AA 960,720 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured 1,610 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 1,468,449 Public Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC Insured (UB) 800 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 803,456 Revenue Bonds, Series 2005A, 5.000%, 5/01/22 679 Virginia Gateway Community Development Authority, Prince 3/13 at 102.00 N/R 543,105 William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 2,540 Virginia Public School Authority, School Financing Bonds, 1997 8/11 at 101.00 AA+ 2,590,698 Resolution, Series 2001B, 5.000%, 8/01/19 570 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 596,984 Resolution, Series 2005C, 5.000%, 8/01/17 1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,243,293 Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ 17,554 Total Tax Obligation/Limited 15,163,828 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.0% (2.5% OF TOTAL INVESTMENTS) 1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AA 787,800 System 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 AA 1,379,535 5.000%, 2/01/23 - MBIA Insured 825 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA 571,981 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,325 Total Transportation 2,739,316 - ------------------------------------------------------------------------------------------------------------------------------------ 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.0% (11.9% OF TOTAL INVESTMENTS) (5) $ 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) $ 183,025 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 No Opt. Call AAA 1,016,140 Bonds, Series 2002, 5.000%,11/01/24 - FSA Insured (ETM) 40 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 44,556 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: 250 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 281,695 600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 678,072 1,000 Newport News, Virginia, General Obligation Bonds, Series 11/13 at 100.00 AA (5) 1,107,080 2003B, 5.000%, 11/01/22 (Pre-refunded 11/01/13) 2,750 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,733,417 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- (5) 1,191,256 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 (Pre-refunded 7/01/12) 455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 493,179 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 460 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 500,572 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) 1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 Aa3 (5) 1,170,160 6.250%, 2/01/25 (Pre-refunded2/01/14) - 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 628,500 2,700 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 2,909,843 - ------------------------------------------------------------------------------------------------------------------------------------ 12,120 Total U.S. Guaranteed 12,937,495 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.6% (1.7% OF TOTAL INVESTMENTS) 2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 1,804,920 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 18.7% (11.7% OF TOTAL INVESTMENTS) 805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 779,586 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 1,087,610 3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,237,359 59 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS November 30, 2008 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: $ 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AA+ $ 1,147,142 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AA+ 1,202,519 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AA+ 1,503,543 1,000 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA 935,610 Bonds, Series 2005, 5.000%, 10/01/30 2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,125,373 Revenue Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 990 Virginia State Resources Authority, Clean Water Revenue 10/17 at 100.00 AAA 671,121 Bonds, Series 2007, Trust 3036, 11.378%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 12,890 Total Water and Sewer 12,689,863 - ------------------------------------------------------------------------------------------------------------------------------------ $ 122,674 Total Investments (cost $121,815,076) - 159.5% 108,530,268 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (4.7)% (3,215,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 6.9% 4,720,782 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (61.7)% (6) (42,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 68,036,050 ===================================================================================================================== (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 Portfolio of Investments may reflect the ratings on certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of November 30, 2008. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (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) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 38.7%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 60 | Statement of | ASSETS & LIABILITIES November 30, 2008 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $219,008,223, $88,365,372, $88,954,826 and $112,274,438, respectively) $ 199,985,241 $ 77,309,457 $ 78,790,984 $ 99,714,583 Cash 6,225,639 1,107,530 1,558,043 1,460,658 Receivables: Interest 4,019,918 1,608,777 1,589,307 1,839,327 Investments sold -- 769,594 -- -- Other assets 13,245 3,150 685 804 - ------------------------------------------------------------------------------------------------------------------------ Total assets 210,244,043 80,798,508 81,939,019 103,015,372 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Floating rate obligations 2,167,000 893,000 890,000 1,105,000 Payables: Common share dividends 501,757 227,406 229,254 265,125 Preferred share dividends 13,395 8,460 9,628 8,458 Accrued expenses: Management fees 110,972 33,142 33,635 41,196 Other 66,896 35,728 37,150 45,566 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 2,860,020 1,197,736 1,199,667 1,465,345 - ------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 79,100,000 32,000,000 2,000,000 39,000,000 ======================================================================================================================== Net assets applicable to Common shares $ 128,284,023 $ 47,600,772 $ 8,739,352 $ 62,550,027 ======================================================================================================================== Common shares outstanding 10,640,076 4,187,933 4,194,423 5,363,909 ======================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 12.06 $ 11.37 $ 11.62 $ 11.66 ======================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 106,401 $ 41,879 $ 41,944 $ 53,639 Paid-in surplus 147,794,543 59,427,202 9,514,586 75,713,852 Undistributed (Over-distribution of) net investment income 298,065 (62,751) (95,426) 34,422 Accumulated net realized gain (loss) from investments and derivative transactions (892,004) (749,643) (557,910) (692,031) Net unrealized appreciation (depreciation) of investments and derivative transactions 9,022,982) (11,055,915) (10,163,842) (12,559,855) - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 128,284,023 $ 47,600,772 $ 48,739,352 $ 62,550,027 ======================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ======================================================================================================================== See accompanying notes to financial statements. 61 | Statement of | ASSETS & LIABILITIES (continued) November 30, 2008 (Unaudited) VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $190,745,270, $66,026,832 and $121,815,076, respectively) $ 173,350,925 $ 57,516,809 $ 108,530,268 Cash 2,023,477 3,348,562 3,331,623 Receivables: Interest 3,015,568 1,002,786 1,807,629 Investments sold -- -- -- Other assets 14,946 3,067 1,656 - ------------------------------------------------------------------------------------------------------------------------ Total assets 178,404,916 61,871,224 113,671,176 - ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Floating rate obligations 4,990,000 1,770,000 3,215,000 Payables: Common share dividends 424,537 172,160 325,382 Preferred share dividends 10,157 5,208 11,102 Accrued expenses: Management fees 92,845 24,907 41,159 Other 56,015 24,237 42,483 - ------------------------------------------------------------------------------------------------------------------------ Total liabilities 5,573,554 1,996,512 3,635,126 - ------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000 - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 109,031,362 $ 35,874,712 $ 68,036,050 ======================================================================================================================== Common shares outstanding 8,936,333 3,134,100 5,736,007 ======================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 12.20 $ 11.45 $ 11.86 ======================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 89,363 $ 31,341 $ 57,360 Paid-in surplus 125,826,082 44,455,670 81,421,806 Undistributed (Over-distribution of) net investment income 259,161 10,495 (85,834) Accumulated net realized gain (loss) from investments and derivative transactions 251,101 (112,771) (72,474) Net unrealized appreciation (depreciation) of investments and derivative transactions (17,394,345) (8,510,023) (13,284,808) - ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 109,031,362 $ 35,874,712 $ 68,036,050 ======================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited ======================================================================================================================== See accompanying notes to financial statements. 62 | Statement of | OPERATIONS Six Months Ended November 30, 2008 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 5,691,970 $ 2,341,671 $ 2,312,456 $ 2,774,857 - ------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 702,876 278,385 281,267 350,022 Preferred shares - auction fees 99,051 40,072 40,072 48,836 Preferred shares - dividend disbursing agent fees 10,023 5,014 5,002 5,002 Shareholders' servicing agent fees and expenses 8,650 719 487 519 Interest expense on floating rate obligations 40,026 16,480 16,441 20,407 Custodian's fees and expenses 22,102 17,224 16,652 25,641 Trustees' fees and expenses 2,401 947 863 1,218 Professional fees 10,195 7,426 7,368 8,139 Shareholders' reports - printing and mailing expenses 20,207 11,129 11,076 12,941 Stock exchange listing fees 4,621 296 297 380 Investor relations expense 15,800 6,148 6,294 7,843 Other expenses 8,893 8,121 8,051 8,296 - ------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 944,845 391,961 393,870 489,244 Custodian fee credit (17,134) (1,932) (2,418) (1,015) Expense reimbursement -- (65,168) (80,937) (117,437) - ------------------------------------------------------------------------------------------------------------------------ Net expenses 927,711 324,861 310,515 370,792 - ------------------------------------------------------------------------------------------------------------------------ Net investment income 4,764,259 2,016,810 2,001,941 2,404,065 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (1,085,143) (567,160) (748,874) (769,003) Change in net unrealized appreciation (depreciation) of investments (21,722,982) (10,932,294) (10,405,605) (11,881,856) - ------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (22,808,125) (11,499,454) (11,154,479) (12,650,859) - ------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,442,127) (582,367) (583,096) (702,343) - ------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,442,127) (582,367) (583,096) (702,343) - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ (19,485,993) $ (10,065,011) $ (9,735,634) $ (10,949,137) ======================================================================================================================== See accompanying notes to financial statements. 63 | Statement of | OPERATIONS (continued) Six Months Ended November 30, 2008 (Unaudited) VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 4,833,864 $ 1,733,224 $ 3,257,644 - ------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 587,786 209,162 381,621 Preferred shares - auction fees 79,892 30,053 52,594 Preferred shares - dividend disbursing agent fees 10,018 5,014 5,000 Shareholders' servicing agent fees and expenses 7,364 487 583 Interest expense on floating rate obligations 67,161 23,855 43,299 Custodian's fees and expenses 18,449 9,056 24,089 Trustees' fees and expenses 2,050 723 1,159 Professional fees 9,020 6,754 8,392 Shareholders' reports - printing and mailing expenses 17,950 7,777 12,909 Stock exchange listing fees 4,638 222 405 Investor relations expense 13,249 4,550 8,113 Other expenses 8,035 7,268 8,377 - ------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 825,612 304,921 546,541 Custodian fee credit (14,128) (5,079) (2,566) Expense reimbursement -- (48,964) (119,110) - ------------------------------------------------------------------------------------------------------------------------ Net expenses 811,484 250,878 424,865 - ------------------------------------------------------------------------------------------------------------------------ Net investment income 4,022,380 1,482,346 2,832,779 - ------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (323,515) (167,245) (113,377) Change in net unrealized appreciation (depreciation) of investments (19,188,015) (8,457,224) (14,405,051) - ------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (19,511,530) (8,624,469) (14,518,428) - ------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,158,650) (437,488) (764,357) - ------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,158,650) (437,488) (764,357) - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ (16,647,800) $ (7,579,611) $(12,450,006) ======================================================================================================================== See accompanying notes to financial statements. 64 | Statement of | CHANGES in NET ASSETS 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 11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08 - --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 4,764,259 $ 9,368,257 $ 2,016,810 $ 3,995,294 $ 2,001,941 $ 3,958,121 Net realized gain (loss) from: Investments (1,085,143) (16,478) (567,160) 306,804 (748,874) 268,320 Forward swaps -- 363,696 -- 115,883 -- 69,275 Change in net unrealized appreciation (depreciation) of: Investments (21,722,982) (4,721,520) (10,932,294) (2,733,280) (10,405,605) (2,314,193) Forward swaps -- -- -- 39,197 -- -- Distributions to Preferred Shareholders: From net investment income (1,442,127) (2,550,899) (582,367) (1,005,532) (583,096) (1,008,770) From accumulated net realized gains -- -- -- -- -- (42,112) - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (19,485,993) 2,443,056 (10,065,011) 718,366 (9,735,634) 930,641 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,223,943) (6,484,065) (1,469,810) (2,936,953) (1,472,128) (2,949,879) From accumulated net realized gains -- -- -- -- -- (137,096) - --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,223,943) (6,484,065) (1,469,810) (2,936,953) (1,472,128) (3,086,975) - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 30,834 35,950 56,801 26,294 12,749 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 30,834 35,950 56,801 26,294 12,749 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (22,709,936) (4,010,175) (11,498,871) (2,161,786) (11,181,468) (2,143,585) Net assets applicable to Common shares at the beginning of period 150,993,959 155,004,134 59,099,643 61,261,429 59,920,820 62,064,405 - --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 128,284,023 $ 150,993,959 $ 47,600,772 $ 59,099,643 $ 48,739,352 $ 59,920,820 ================================================================================================================================= Undistributed (Over-distribution of) net investment income at the end of period $ 298,065 $ 199,876 $ (62,751) $ (27,384) $ (95,426) $ (42,143) ================================================================================================================================= See accompanying notes to financial statements. 65 | Statement of | CHANGES in NET ASSETS (continued) 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 11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08 - --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,404,065 $ 4,770,568 $ 4,022,380 $ 7,845,477 $ 1,482,346 $ 2,980,096 Net realized gain (loss) from: Investments (769,003) 203,469 (323,515) 831,194 (167,245) 60,379 Forward swaps -- -- -- 109,060 -- -- Change in net unrealized appreciation (depreciation) of: Investments (11,881,856) (2,833,522) (19,188,015) (4,632,677) (8,457,224) (2,198,596) Forward swaps -- -- -- 39,197 -- -- Distributions to Preferred Shareholders: From net investment income (702,343) (1,213,876) (1,158,650) (1,939,555) (437,488) (678,177) From accumulated net realized gains -- -- -- (258,821) -- (97,853) - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (10,949,137) 926,639 (16,647,800) 1,993,875 (7,579,611) 65,849 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,705,723) (3,379,332) (2,867,816) (5,687,847) (1,071,719) (2,183,084) From accumulated net realized gains -- -- -- (770,964) -- (306,068) - --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,705,723) (3,379,332) (2,867,816) (6,458,811) (1,071,719) (2,489,152) - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 17,895 34,673 77,205 13,938 27,521 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 17,895 34,673 77,205 13,938 27,521 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (12,654,860) (2,434,798) (19,480,943) (4,387,731) (8,637,392) (2,395,782) Net assets applicable to Common shares at the beginning of period 75,204,887 77,639,685 128,512,305 132,900,036 44,512,104 46,907,886 - --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 62,550,027 $ 75,204,887 $ 109,031,362 $ 128,512,305 $ 35,874,712 $ 44,512,104 ================================================================================================================================= Undistributed (Over-distribution of) net investment income at the end of period $ 34,422 $ 38,423 $ 259,161 $ 263,247 $ 10,495 $ 37,356 ================================================================================================================================= See accompanying notes to financial statements. 66 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------------------- SIX MONTHS YEAR ENDED ENDED 11/30/08 5/31/08 - --------------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 2,832,779 $ 5,485,024 Net realized gain (loss) from: Investments (113,377) 66,158 Forward swaps -- -- Change in net unrealized appreciation (depreciation) of: Investments (14,405,051) (3,628,537) Forward Swaps -- -- Distributions to Preferred Shareholders: From net investment income (764,357) (1,366,380) From accumulated net realized gains -- (102,026) - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (12,450,006) 454,239 - --------------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,046,995) (4,107,601) From accumulated net realized gains -- (326,601) - --------------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,046,995) (4,434,202) - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 61,481 69,440 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions 61,481 69,440 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (14,435,520) (3,910,523) Net assets applicable to Common shares at the beginning of period 82,471,570 86,382,093 - --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of period $ 68,036,050 $ 82,471,570 ================================================================================================================================= Undistributed (Over-distribution of) net investment income at the end of period $ (85,834) $ (107,261) ================================================================================================================================= See accompanying notes to financial statements. 67 | Notes to | FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES 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) (collectively, the "Funds"). 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 an investment or derivative instrument, each Fund may use market quotes provided by major broker/dealers in such investments. If it is determined that the market price for an investment or derivative instrument is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish fair value in accordance with procedures established in good faith by the Board of Trustees. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates 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, 2008, 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. Interest income also includes paydown gains and losses, if any. 68 Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its 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. 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 affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether it is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold may result in a tax expense in the current year. Implementation of FIN 48 required management of the Funds to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which includes federal and certain states. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). The Funds have no examinations in progress. For all open tax years and all major taxing jurisdictions through the end of the reporting period, management of the Funds has reviewed all tax positions taken or expected to be taken in the preparation of the Funds' tax returns and concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets or results of operations as of and during the six months ended November 30, 2008. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. 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 at least 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. As of November 30, 2008, 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 ===================================================================================================================== 69 | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) 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 ===================================================================================================================== Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the Preferred shares. These developments have generally not affected the portfolio management or investment policies of these Funds. However, one implication of these auction failures for Common shareholders is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may be lower than they otherwise would have been. On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's approval of plans to use tender option bonds (TOBs), also known as "floaters" or floating rate obligations, to refinance a portion of the municipal funds' outstanding Preferred shares, whose auctions have been failing for several months. The plan included an initial phase of approximately $1 billion in forty-one funds. As of November 30, 2008, the Funds have not redeem any of their outstanding Preferred shares. Inverse Floating Rate Securities Each Fund is authorized to 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"). 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 70 rate investment". An investment in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards No. 140 (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 the related interest paid to the holders of the short-term floating rate certificates is included as "Interest expense on floating rate obligations" on the Statement of Operations. During the six months ended November 30, 2008, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") 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 issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is included as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At November 30, 2008, none of the Funds had exposure to externally-deposited Recourse Trusts. 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, 2008, 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 $ 3,007,361 $ 1,238,301 $ 1,235,301 $ 1,533,328 Average annual interest rate and fees 2.65% 2.65% 2.65% 2.65% ===================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------- Average floating rate obligations $ 5,194,590 $ 1,844,754 $ 3,348,770 Average annual interest rate and fees 2.58% 2.58% 2.58% ===================================================================================================================== Forward Swap Transactions Each Fund is 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. None of the Funds invested in forward interest rate swap transactions during the six months ended November 30, 2008. 71 | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) Zero Coupon Securities Each Fund is authorized to 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 Portfolios 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. 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 a 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. 2. FAIR VALUE MEASUREMENTS During the current fiscal period, the Funds adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value Measurements." SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of each Fund's investments various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of November 30, 2008: MARYLAND PREMIUM INCOME (NMY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 199,985,241 $ -- $ 199,985,241 ===================================================================================================================== MARYLAND DIVIDEND ADVANTAGE (NFM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 77,309,457 $ -- $ 77,309,457 ===================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 78,790,984 $ -- $ 78,790,984 ===================================================================================================================== 72 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 99,714,583 $ -- $ 99,714,583 ===================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 173,350,925 $ -- $ 173,350,925 ===================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE (NGB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 57,516,809 $ -- $ 57,516,809 ===================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - --------------------------------------------------------------------------------------------------------------------- Investments $ -- $ 108,530,268 $ -- $ 108,530,268 ===================================================================================================================== 3. 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 11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08 - ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 2,122 2,589 3,983 1,872 863 ==================================================================================================================================== 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 11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08 - ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 1,239 2,798 5,228 1,038 1,821 ==================================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ------------------------------- SIX MONTHS YEAR ENDED ENDED 11/30/08 5/31/08 - ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 4,497 4,680 ==================================================================================================================================== 4. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the six months ended November 30, 2008, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Purchases $ 10,481,779 $ 4,209,228 $ 5,011,782 $ 5,870,659 Sales and maturities 14,003,104 5,609,433 6,188,823 7,263,498 ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Purchases $ 4,516,217 $ 1,615,699 $ 2,925,546 Sales and maturities 3,739,057 3,567,895 5,749,078 ==================================================================================================================================== 73 | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) 5. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At November 30, 2008, the cost of investments was as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND IVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Cost of investments $ 216,896,945 $ 87,416,036 $ 88,008,755 $ 111,169,149 ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Cost of investments $ 185,356,428 $ 64,240,889 $ 118,551,173 ==================================================================================================================================== Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2008, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $ 3,702,049 $ 823,635 $ 1,134,890 $ 1,296,750 Depreciation (22,780,784) (11,823,184) (11,242,661) (13,856,316) - ------------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $ (19,078,735) $ (10,999,549) $ (10,107,771) $ (12,559,566) ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Gross unrealized: Appreciation $ 2,825,123 $ 677,743 $ 1,412,943 Depreciation (19,818,682) (9,172,355) (14,647,625) - ------------------------------------------------------------------------------------------------------------------------------------ Net unrealized appreciation (depreciation) of investments $ (16,993,559) $ (8,494,612) $ (13,234,682) ==================================================================================================================================== 74 The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2008, 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 * $ 603,666 $ 170,872 $ 157,399 $ 283,959 Undistributed net ordinary income ** 77,161 8,237 73,371 7,997 Undistributed net long-term capital gains 320,091 -- 125,752 122,752 ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Undistributed net tax-exempt income * $ 380,781 $ 206,494 $ 177,008 Undistributed net ordinary income ** 109,298 -- 18,227 Undistributed net long-term capital gains 465,316 54,477 56,020 ==================================================================================================================================== * Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 1, 2008, paid on June 2, 2008. ** 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, 2008, 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 $ 9,009,735 $ 3,953,181 $ 3,960,918 $ 4,602,748 Distributions from net ordinary income ** 106,313 -- 8,769 3,541 Distributions from net long-term capital gains -- -- 179,208 -- ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income $ 7,666,828 $ 2,850,082 $ 5,465,830 Distributions from net ordinary income ** 8,291 28,583 21,724 Distributions from net long-term capital gains 1,029,785 403,921 428,627 ==================================================================================================================================== ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At May 31, 2008, the Funds' last tax year end, Maryland Dividend Advantage (NFM) had unused capital loss carryforwards of $183,719 available for federal income tax purposes to be applied against future capital gains, if any. If not applied, $106,052, $15,613 and $62,504 of the carryforward will expire in the years ended May 31, 2012, 2013 and 2014, respectively. Virginia Dividend Advantage 2 (NNB) elected to defer net realized losses from investments incurred from November 1, 2007 through May 31, 2008, the Fund's last tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses of $6,148 were treated as having arisen on the first day of the current fiscal year. 6. 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, 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. 75 | 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: MARYLAND PREMIUM INCOME (NMY) VIRGINIA PREMIUM INCOME (NPV) AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS 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) VIRGINIA DIVIDEND ADVANTAGE (NGB) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS 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 following table. As of November 30, 2008, the complex-level fee rate was .2000%. 76 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 ==================================================================================================================================== (1) The complex-level component of the management fee for the funds is calculated based upon the aggregate daily net assets of all Nuveen funds, with such daily net assets to include assets attributable to preferred stock issued by or borrowings by such funds but to exclude assets attributable to investments in other Nuveen funds. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, - ------------------------------------------------------------------------------------------------------------------------------------ 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ==================================================================================================================================== * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and Virginia Dividend Advantage (NGB) for any portion of 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. 77 | Notes to | FINANCIAL STATEMENTS (continued) (Unaudited) The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - ------------------------------------------------------------------------------------------------------------------------------------ 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ==================================================================================================================================== * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for any portion of its fees and expenses beyond September 30, 2010. For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, - ------------------------------------------------------------------------------------------------------------------------------------ 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ==================================================================================================================================== * From the commencement of operations. The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for any portion of its fees and expenses beyond November 30, 2011. 7. NEW ACCOUNTING PRONOUNCEMENT Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161 (SFAS No. 161) In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge items are accounted for, and c) how derivative instruments and related hedge items affect a fund's financial position, results of operations and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. As of November 30, 2008, management does not believe the adoption of SFAS No. 161 will impact the financial statement amounts; however, additional footnote disclosures may be required about the use of derivative instruments and hedging items. 78 8. 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, 2008, to shareholders of record on December 15, 2008, as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Dividend per share $ .0515 $ .0585 $ .0585 $ .0535 ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Dividend per share $ .0540 $ .0575 $ .0595 ==================================================================================================================================== At the same time, the following Funds declared capital gains and/or ordinary income distributions as follows: MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE 2 ADVANTAGE 3 (NMY) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Capital gains distribution per share $ .0216 $ .0223 $ .0169 Net ordinary income distribution per share* .0052 .0125 -- ==================================================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Capital gains distribution per share $ .0388 $ .0133 $ .0073 Net ordinary income distribution per share* .0091 -- .0024 ==================================================================================================================================== * Net ordinary income consists of taxable market discount income and net short-term capital gains, if any Preferred Shares On January 8, 2009, Maryland Premium Income (NMY), Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR) and Maryland Dividend Advantage 3 (NWI) noticed for redemption $0.5 million, $3.125 million, $2.45 million and $0.875 million of their outstanding Preferred shares, respectively, at liquidation value, using the proceeds from the issuance of TOBs and portfolio sales. 79 | Financial | HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period: INVESTMENT OPERATIONS ----------------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) $ 14.19 $ .45 $ (2.14) $ (.14) $ -- $ (1.83) 2008 14.57 .88 (.41) (.24) -- .23 2007 14.47 .88 .12 (.23) -- .77 2006 15.12 .89 (.56) (.18) -- .15 2005 14.28 .92 .92 (.10) -- 1.74 2004 15.10 .96 (.81) (.06) -- .09 MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) 14.12 .48 (2.74) (.14) -- (2.40) 2008 14.65 .95 (.54) (.24) -- .17 2007 14.57 .95 .12 (.24) -- .83 2006 15.13 .95 (.47) (.19) -- .29 2005 14.43 .98 .75 (.10) -- 1.63 2004 15.47 1.01 (1.07) (.05) -- (.11) ==================================================================================================================================== LESS DISTRIBUTIONS ---------------------------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE - -------------------------------------------------------------------------------------------------------------------- MARYLAND PREMIUM INCOME (NMY) - -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ (.30) $ -- $ (.30) $ 12.06 $ 9.43 2008 (.61) -- (.61) 14.19 13.10 2007 (.67) -- (.67) 14.57 14.84 2006 (.78) (.02) (.80) 14.47 14.52 2005 (.90) -- (.90) 15.12 15.78 2004 (.91) -- (.91) 14.28 14.45 MARYLAND DIVIDEND ADVANTAGE (NFM) - -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) (.35) -- (.35) 11.37 9.95 2008 (.70) -- (.70) 14.12 14.19 2007 (.75) -- (.75) 14.65 15.28 2006 (.85) -- (.85) 14.57 15.19 2005 (.93) -- (.93) 15.13 15.63 2004 (.93) -- (.93) 14.43 15.62 ==================================================================================================================== RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT ----------------------------- ---------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++ - ------------------------------------------------------------------------------------------------------------------------------------ MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) (26.03)% (13.01)% $ 128,284 1.33%*** 1.28%*** 6.70%*** 2008 (7.55) 1.63 150,994 1.25 1.24 6.13 2007 6.96 5.35 155,004 1.27 1.23 5.95 2006 (2.94) 1.08 153,834 1.23 1.23 6.05 2005 15.64 12.52 160,496 1.24 1.24 6.22 2004 (10.77) .64 151,107 1.24 1.24 6.54 MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) (27.80) (17.23) 47,601 1.43*** 1.37*** 7.13*** 2008 (2.31) 1.25 59,100 1.30 1.28 6.39 2007 5.51 5.74 61,261 1.30 1.26 6.06 2006 2.51 1.95 60,762 1.26 1.26 5.99 2005 6.22 11.60 63,051 1.26 1.26 6.11 2004 2.99 (.69) 60,041 1.24 1.24 6.34 ==================================================================================================================================== RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ----------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE - ---------------------------------------------------------------------------------------------------- MARYLAND PREMIUM INCOME (NMY) - ---------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.31%*** 1.25%*** 6.72%*** 5% 2008 1.23 1.22 6.15 14 2007 1.26 1.22 5.96 13 2006 1.21 1.21 6.07 13 2005 1.23 1.23 6.22 10 2004 1.23 1.23 6.55 16 MARYLAND DIVIDEND ADVANTAGE (NFM) - ---------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.19*** 1.13*** 7.37*** 5 2008 .99 .98 6.69 12 2007 .93 .89 6.43 12 2006 .81 .81 6.44 14 2005 .79 .79 6.57 11 2004 .78 .78 6.80 10 ==================================================================================================== PREFERRED SHARES AT END OF PERIOD ---------------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE - -------------------------------------------------------------------------------- MARYLAND PREMIUM INCOME (NMY) - -------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ 79,100 $ 25,000 $ 65,545 2008 79,100 25,000 72,722 2007 79,100 25,000 73,990 2006 79,100 25,000 73,620 2005 79,100 25,000 75,726 2004 79,100 25,000 72,758 MARYLAND DIVIDEND ADVANTAGE (NFM) - -------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 32,000 25,000 62,188 2008 32,000 25,000 71,172 2007 32,000 25,000 72,860 2006 32,000 25,000 72,470 2005 32,000 25,000 74,259 2004 32,000 25,000 71,907 ================================================================================ * Total Return Based 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 may take 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 Based 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 the 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, 2008. See accompanying notes to financial statements. 80-81 spread | Financial | HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period: INVESTMENT OPERATIONS -------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL - ------------------------------------------------------------------------------------------------------------------ MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) $ 14.29 $ .48 $ (2.66) (.14) $ -- $ (2.32) 2008 14.81 .94 (.48) (.24) (.01) .21 2007 14.76 .94 .10 (.23) -- .81 2006 15.45 .94 (.59) (.18) -- .17 2005 14.64 .94 .90 (.09) -- 1.75 2004 15.71 .96 (1.08) (.06) -- (.18) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) 14.02 .45 (2.36) (.13) -- (2.04) 2008 14.48 .89 (.49) (.23) -- .17 2007 14.33 .88 .16 (.22) -- .82 2006 14.82 .86 (.46) (.18) -- .22 2005 13.88 .86 .97 (.10) -- 1.73 2004 14.89 .87 (1.03) (.06) -- (.22) ================================================================================================================== LESS DISTRIBUTIONS ------------------------------ NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE - ------------------------------------------------------------------------------------------ MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) $ (.35) $ -- $ (.35) $ 11.62 $ 9.87 2008 (.70) (.03) (.73) 14.29 14.25 2007 (.76) -- (.76) 14.81 15.38 2006 (.83) (.03) (.86) 14.76 14.76 2005 (.88) (.06) (.94) 15.45 15.41 2004 (.87) (.02) (.89) 14.64 14.28 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) (.32) -- (.32) 11.66 10.25 2008 (.63) -- (.63) 14.02 13.01 2007 (.67) -- (.67) 14.48 14.74 2006 (.71) -- (.71) 14.33 13.85 2005 (.78) (.01) (.79) 14.82 14.40 2004 (.79) -- (.79) 13.88 13.24 ========================================================================================== RATIOS/SUPPLEMENTAL DATA --------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT -------------------- ---------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++ - ---------------------------------------------------------------------------------------------------------------------------------- MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) (28.70)% (16.45)% $ 48,739 1.42%*** 1.36%*** 6.90%*** 2008 (2.30) 1.54 59,921 1.29 1.28 6.18 2007 9.32 5.56 62,064 1.32 1.28 5.86 2006 1.13 1.14 61,726 1.25 1.25 5.76 2005 14.71 12.22 64,500 1.23 1.23 5.74 2004 (2.90) (1.16) 61,064 1.24 1.24 5.90 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ---------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) (18.99) (14.74) 62,550 1.40*** 1.34*** 6.52*** 2008 (7.38) 1.24 75,205 1.26 1.25 5.86 2007 11.47 5.75 77,640 1.28 1.24 5.52 2006 1.09 1.55 76,809 1.23 1.23 5.41 2005 14.98 12.67 79,443 1.23 1.23 5.40 2004 (5.97) (1.51) 74,369 1.22 1.22 5.59 ================================================================================================================================== RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ---------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE - --------------------------------------------------------------------------------------------------- MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - --------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.12%*** 1.06%*** 7.20%*** 6% 2008 .94 .92 6.53 13 2007 .90 .86 6.28 10 2006 .77 .77 6.23 15 2005 .77 .77 6.20 10 2004 .78 .78 6.36 11 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - --------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.06*** 1.00*** 6.86*** 5 2008 .84 .83 6.29 13 2007 .79 .75 6.01 11 2006 .73 .73 5.91 14 2005 .74 .74 5.89 12 2004 .73 .73 6.08 15 =================================================================================================== PREFERRED SHARES AT END OF PERIOD ------------------------------------ AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE - -------------------------------------------------------------------------- MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - -------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ 32,000 $ 25,000 $ 63,078 2008 32,000 25,000 71,813 2007 32,000 25,000 73,488 2006 32,000 25,000 73,224 2005 32,000 25,000 75,390 2004 32,000 25,000 72,706 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - -------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 39,000 25,000 65,096 2008 39,000 25,000 73,208 2007 39,000 25,000 74,769 2006 39,000 25,000 74,237 2005 39,000 25,000 75,925 2004 39,000 25,000 72,672 ========================================================================== * Total Return Based 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 may take 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 Based 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 the 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, 2008. See accompanying notes to financial statements. 82-83 spread | Financial | HIGHLIGHTS (continued) (Unaudited) Selected data for a Common share outstanding throughout each period: INVESTMENT OPERATIONS -------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL - -------------------------------------------------------------------------------------------------------------- VIRGINIA PREMIUM INCOME (NPV) - -------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ 14.39 $ .45 $ (2.19) $ (.13) $ -- $ (1.87) 2008 $ 14.89 .88 (.40) (.22) (.03) .23 2007 14.89 .88 .07 (.23) --* .72 2006 15.82 .88 (.59) (.15) (.03) .11 2005 14.95 .93 .93 (.09) -- 1.77 2004 15.93 .97 (.99) (.05) -- (.07) VIRGINIA DIVIDEND ADVANTAGE (NGB) - -------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 14.21 .47 (2.75) (.14) -- (2.42) 2008 14.98 .95 (.67) (.22) (.03) .03 2007 14.91 .96 .14 (.24) -- .86 2006 15.52 .97 (.54) (.17) -- .26 2005 14.42 .99 1.13 (.09) -- 2.03 2004 15.43 1.02 (1.05) (.05) -- (.08) ============================================================================================================== LESS DISTRIBUTIONS ------------------------------ NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE - ---------------------------------------------------------------------------------------- VIRGINIA PREMIUM INCOME (NPV) - ---------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ (.32) $ -- $ (.32) $ 12.20 $ 11.49 2008 (.64) (.09) (.73) 14.39 14.04 2007 (.70) (.02) (.72) 14.89 15.24 2006 (.80) (.24) (1.04) 14.89 14.91 2005 (.90) -- (.90) 15.82 17.65 2004 (.91) -- (.91) 14.95 14.95 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ---------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) (.34) -- (.34) 11.45 11.81 2008 (.70) (.10) (.80) 14.21 14.81 2007 (.79) -- (.79) 14.98 17.51 2006 (.87) -- (.87) 14.91 17.10 2005 (.93) -- (.93) 15.52 16.99 2004 (.93) -- (.93) 14.42 15.07 ======================================================================================== RATIOS/SUPPLEMENTAL DATA ------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT ---------------------- ------------------------------------------------ BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE** VALUE** SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++ - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) (16.07)% (13.14)% $ 109,031 1.37%**** 1.26%**** 6.65%**** 2008 (2.94) 1.56 128,512 1.25 1.23 6.02 2007 7.18 4.89 132,900 1.20 1.20 5.80 2006 (9.98) 0.71 132,626 1.19 1.19 5.75 2005 24.54 12.13 140,340 1.20 1.20 5.98 2004 (10.70) (.42) 132,122 1.20 1.20 6.33 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) (18.12) (17.24) 35,875 1.48**** 1.37**** 6.94**** 2008 (10.58) .23 44,512 1.30 1.28 6.28 2007 7.24 5.82 46,908 1.27 1.27 5.99 2006 5.86 1.74 46,626 1.26 1.26 5.93 2005 19.11 14.46 48,474 1.28 1.28 6.13 2004 (8.11) (.50) 44,988 1.24 1.24 6.39 ==================================================================================================================================== RATIOS/SUPPLEMENTAL DATA ------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT*** ------------------------------------------------ EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE - ------------------------------------------------------------------------------------------------------- VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.35%**** 1.24%**** 6.68%**** 2% 2008 1.24 1.22 6.03 14 2007 1.19 1.19 5.82 16 2006 1.17 1.17 5.77 16 2005 1.19 1.19 5.99 17 2004 1.19 1.19 6.34 14 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.22**** 1.10**** 7.20**** 3 2008 1.00 .98 6.59 10 2007 .90 .90 6.36 23 2006 .82 .82 6.38 16 2005 .81 .81 6.59 15 2004 .77 .77 6.86 7 ======================================================================================================= PREFERRED SHARES AT END OF PERIOD ------------------------------------ AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE - ------------------------------------------------------------------------ VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) $ 63,800 $ 25,000 $ 67,724 2008 63,800 25,000 75,357 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) 24,000 25,000 62,369 2008 24,000 25,000 71,367 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 ======================================================================== * Rounds to less than $.01 per share. ** Total Return Based 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 may take 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 Based 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 the 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, 2008. 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 -------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM BEGINNING INVESTMENT CAPITAL COMMON NET INCOME TO GAINS TO SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL - --------------------------------------------------------------------------------------------------------------------- VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - --------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ 14.39 $ .49 $ (2.53) $ (.13) $ -- $ (2.17) 2008 15.08 .96 (.61) (.24) (.02) .09 2007 15.02 .96 .11 (.24) -- .83 2006 15.70 .95 (.52) (.18) (.01) .24 2005 14.79 .96 1.13 (.09) (.01) 1.99 2004 16.02 .99 (1.22) (.06) -- (.29) ===================================================================================================================== LESS DISTRIBUTIONS ----------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE - ---------------------------------------------------------------------------------------- VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ---------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ (.36) $ -- $ (.36) $ 11.86 $ 12.52 2008 (.72) (.06) (.78) 14.39 14.65 2007 (.77) -- (.77) 15.08 16.73 2006 (.85) (.07) (.92) 15.02 16.40 2005 (.89) (.19) (1.08) 15.70 16.74 2004 (.89) (.05) (.94) 14.79 14.65 ======================================================================================== RATIOS/SUPPLEMENTAL DATA ---------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT -------------------- ----------------------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++(a) - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (b) (12.24)% (15.30)% $ 68,036 1.42%*** 1.31%*** 7.05%*** 2008 (7.58) .63 82,472 1.24 1.22 6.21 2007 6.96 5.60 86,382 1.21 1.21 5.89 2006 3.45 1.53 85,887 1.19 1.19 5.75 2005 21.96 13.75 89,626 1.19 1.19 5.74 2004 (3.81) (1.84) 84,248 1.20 1.20 5.99 ==================================================================================================================================== RATIOS/SUPPLEMENTAL DATA ---------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER CREDIT/REIMBURSEMENT** ---------------------------------------------- EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST++(a) INTEREST++(a) INCOME++ RATE - ---------------------------------------------------------------------------------------------------- VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ---------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) 1.11%*** 0.99%*** 7.37%*** 2% 2008 .90 .88 6.56 10 2007 .78 .78 6.31 19 2006 .73 .73 6.21 10 2005 .74 .74 6.19 13 2004 .74 .74 6.44 16 ==================================================================================================== PREFERRED SHARES AT END OF PERIOD -------------------------------------- AGGREGATE LIQUIDATION AMOUNT AND MARKET ASSET OUTSTANDING VALUE COVERAGE (000) PER SHARE PER SHARE - ----------------------------------------------------------------------------- VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ----------------------------------------------------------------------------- Year Ended 5/31: 2009 (b) $ 42,000 $ 25,000 $ 65,498 2008 42,000 25,000 74.090 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 ============================================================================= * Total Return Based 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 may take 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 Based 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 the 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, 2008. See accompanying notes to financial statements. 86-87 spread 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. 88 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. 89 Glossary of TERMS USED in this REPORT o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed", with current holders receiving a formula-based interest rate until the next scheduled auction. o 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. o 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. o 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. o 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. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. o 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. o 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. 90 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's 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, 2008, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) 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. BOARD OF TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth 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 and/or redeem shares of its own common or auction rate preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased or redeemed during the period covered by this report. Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. 91 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. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara, Symphony and Tradewinds. In total, the Company managed $134 billion of assets on September 30, 2008. 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-1108D 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: See 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: See 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 6, 2009 ------------------------------------------------------------------- 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 6, 2009 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: February 6, 2009 -------------------------------------------------------------------