N-CSR 1 file001.txt NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 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 811-09471 --------------------- Nuveen Maryland 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: May 31, 2009 ------------------ 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. LOGO: NUVEEN Investments Closed-End Funds Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report May 31, 2009 --------------- ------------------ ------------------ ----------------------- NUVEEN MARYLAND NUVEEN MARYLAND NUVEEN MARYLAND NUVEEN MARYLAND PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3 NMY NFM NZR NWI --------------- ------------------ ------------------ NUVEEN VIRGINIA NUVEEN VIRGINIA NUVEEN VIRGINIA PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 NPV NGB NNB May 09 LIFE IS COMPLEX. Nuveen makes things e-simple. It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. LOGO: NUVEEN Investments Chairman's Letter to Shareholders [PHOTO OF ROBERT P. BREMNER] DEAR SHAREHOLDER, The problems in the U.S. financial system and the slowdown in global economic activity continue to create a very difficult environment for the U.S. economy. The administration, the Federal Reserve System and Congress have initiated a variety of programs directed at restoring liquidity to the financial markets, providing financial support for critical financial institutions and stimulating economic activity. There are encouraging signs that these initiatives are beginning to have a constructive impact. It is not possible to predict whether the actions taken to date will be sufficient to restore more normal conditions in the financial markets or enable the economy to stabilize and set a course toward recovery. However, the speed and scope of the government's actions are very encouraging and, more importantly, reflect a commitment to act decisively to meet the economic challenges we face. The performance information in the attached report reflects the impact of many forces at work in the equity and fixed-income markets. The comments by the portfolio manager describe the strategies being used to pursue your Fund's long-term investment goals. Parts of the financial markets continue to experience serious dislocations and thorough research and strong investment disciplines have never been more important in identifying risks and opportunities. I hope you will read this information carefully. Your Board is particularly sensitive to our shareholders' concerns in these uncertain times. We believe that frequent and thorough communication is essential in this regard and encourage you to visit the Nuveen website: www.nuveen.com, for recent developments in all Nuveen funds. We also encourage you to communicate with your financial consultant for answers to your questions and to seek advice on your long-term investment strategy in the current market environment. Nuveen continues to work on resolving the issues related to 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 work through the many issues involved. 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 July 23, 2009 Nuveen Investments 3 Portfolio Manager's Comments Nuveen Investments Municipal Closed-End Funds NMY, NFM, NZR, NWI, NPV, NGB, NNB Portfolio manager Cathryn Steeves reviews economic and municipal market conditions at both the national and state levels, key investment strategies and the twelve-month performance of the Nuveen Maryland and Virginia Funds. Cathryn, who joined Nuveen in 1996, has managed these seven Funds since 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING THE TWELVE-MONTH PERIOD ENDED MAY 31, 2009? During this period, downward pressure on the economy continued. In an effort to improve overall economic conditions, the Federal Reserve (Fed) continued to cut interest rates, lowering the fed funds rate from 2.00% on June 1, 2008, to a target range of zero to 0.25% in December 2008, its lowest level on record. In March 2009, the Fed announced that, in addition to maintaining the current target rate, it would buy $300 billion in long-term Treasury securities in an effort to support private credit markets and up to an additional $750 billion (for a total of $1.25 trillion) in agency mortgage-backed securities to bolster the housing market. (At its June 2009 meeting, subsequent to this reporting period, the Fed kept the target rate and bond purchase program unchanged.) Additionally, the federal government passed a $700 billion financial industry rescue package in October 2008, which was followed by a $787 billion stimulus package approved in February 2009. The Fed's rate-cutting and the stimulus package were in part a response to the decline in U.S. economic growth, as measured by the U.S. gross domestic product (GDP). Since posting an annual growth rate of 2.8% in the second quarter of 2008, the GDP has contracted at annual rates of 0.5% in the third quarter of 2008, 6.3% in the fourth quarter of 2008, and 5.5% in the first quarter of 2009, all of which adds up to the worst recession in 50 years. The ongoing housing slump also continued to trouble the economy, with the average home price falling 18.1% nationally between April 2008 and April 2009, pushing home values to mid-2003 levels. In the labor markets, May 2009 marked the 17th consecutive month of job losses, with a total of 6.0 million jobs lost since the economic recession began in December 2007. The national unemployment rate for May 2009 was 9.4%, its highest point since 1983, up from 5.5% in May 2008. At the same time, inflation remained subdued, as the Consumer Price Index (CPI), reflecting a 27% drop in energy prices, fell 1.3% year-over-year as of May 2009, the largest twelve-month decline since 1950. The core CPI (which excludes food and energy) rose 1.8% over this same period, within the Fed's unofficial objective of 2.0% or lower for this measure. During this period, the nation's financial institutions and markets--including the municipal bond market--experienced significant turmoil and reductions in demand for many types 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 Nuveen Investments of securities, which decreased valuations. In the municipal market, this negative impact was felt across all credit ratings, particularly lower-rated credits, reducing the net asset values of municipal bond funds. In addition, some of the dealer firms that make markets in bonds were unwilling to commit capital to purchase or continue serving as dealers. The reduction in dealer involvement was accompanied by significant selling pressure by investors, predominantly related to lower-rated municipal bonds. This was especially true of institutional investors. Municipal bond prices were further negatively impacted by concerns that a supply overhang (such as a large backlog of new issues that had been postponed) would cause selling pressure to persist. Additionally, greater price volatility, including wider credit spreads (i.e., lower quality bonds fell in price more than higher quality bonds); greatly reduced liquidity (i.e., the ability to sell bonds at prices close to their carrying values), 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) all weighed down the market for much of this period. Market conditions began to show some general signs of improvement in mid-December 2008, and municipal bonds were on an improving trend during the first five months of 2009. Another positive impact was the reduced supply of tax-exempt municipal debt, in part because of the introduction of "Build America" bonds in the final few months of the period. This new class of taxable municipal debt - created as part of the February 2009 economic stimulus package - provides municipal issuers with a 35% annual federal income tax credit on their interest payments. For many borrowers, these bonds provided an attractive alternative to issuing traditional tax-exempt debt. The Build America bond program got off to a quick start and effectively diverted high-grade tax-exempt new-issue supply into the taxable market. Therefore, a combination of lower issuance along with higher demand provided additional support to municipal bond prices. Over the twelve months ended May 31, 2009, municipal bond issuance nationwide totaled $410.3 billion, a drop of 12% compared with the twelve-month period ended May 31, 2008. While market conditions during this period impacted the demand for municipal bonds, investors, especially from the retail sector, continued to be attracted by the high tax-equivalent yields of the municipal bond market relative to taxable bonds. HOW WERE ECONOMIC AND MARKET CONDITIONS IN MARYLAND AND VIRGINIA DURING THIS PERIOD? In 2008, the Maryland economy grew at a rate of 1.3%, ahead of the 0.7% national average, which ranked the state 22nd in the nation in terms of GDP growth by state. Maryland's economy continued to be led by education/health services and professional and business services. With the state's proximity to the District of Columbia, government employment--both military and civilian--exerted a strong influence on the Maryland economy, accounting for 18% of jobs in the state versus the national average of 16%. As a result of the 2005 Base Realignment and Closure (BRAC) Commission recommendations, approximately 45,000 military jobs were expected to be transferred to Maryland beginning in 2009 and Fort George G. Meade continued to rank as the state's largest employer. While Maryland's old-line manufacturing sector continued to shed jobs, employment in this sector was about half the national average. As of May 2009, unemployment in Maryland was 7.2%, up from 4.1% in May 2008. As of May 2009, Moody's, Standard & Poor's (S&P) and Fitch confirmed their ratings on Maryland general Nuveen Investments 5 obligation debt at Aaa/AAA/AAA, respectively, with stable outlooks. During the twelve months ended May 31, 2009, state municipal issuance totaled $6.1 billion, reflecting a year-over-year decrease of 20%. According to Moody's, Maryland's debt levels are higher than the national medians, with tax-supported debt per capital ranking 16th in the nation in 2008 and debt as a percentage of personal income ranking 21st. Virginia's economy continued to be led by the government and professional and business services sectors. As in Maryland, proximity to Washington D.C. and a large military presence added some stability to Virginia's economy. This was especially evident in the area of employment, as Virginia has twice as many federal government jobs as the national average. The commonwealth's manufacturing sector, beleaguered by the disappearance of textile, furniture and apparel factories, remained in decline. Both manufacturing and mining industries in the southern sections continued to be an especially weak spot. In 2008, Virginia's economy grew at a rate of 1.3%, ranking the state 25th in the country according to GDP growth per state. Unemployment in the commonwealth rose from 3.8% in May 2008 to 7.1% in May 2009. As of May 2009, Virginia's general obligation debt was rated Aaa/AAA/AAA by Moody's, Standard & Poor's (S&P) and Fitch, respectively, with stable outlooks. During the twelve months ended May 31, 2009, issuance in Virginia totaled $9.2 billion, representing a year-over-year increase of 14%. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD? During this period, as the municipal market remained under pressure from price volatility, reduced liquidity and fundamental economic concerns, we continued to focus on finding bonds that offered relative value while seeking to manage liquidity and invest for the long-term. Some of our investment activity during this period was driven by opportunities created by recent market conditions. We sought to capitalize on this environment by continuing to take a bottom-up approach to finding undervalued sectors and individual credits with the potential to perform well over the long-term. Among the credits we added, especially in the Maryland Funds, were housing and transportation bonds. We also were able to purchase health care bonds and a non-rated real estate-backed credit at extremely discounted prices as the result of selling by some municipal market participants, particularly during the last part of 2008. To generate cash for new 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 bonds into relatively consistent retail demand. In the Maryland Funds, we also sold some higher quality intermediate securities, while most of the sales in the Virginia Funds involved shorter maturity bonds. During this period, we continued to use inverse floating rate securities(1) in all seven Funds. We also added new inverse floaters to all of these Funds during this time. We employ inverse floaters for a variety of reasons, including duration(2) management, income enhancement and as a form of leverage. As of May 31, 2009, all of the Funds continued to hold positions in inverse floaters. (1) 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 the reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. (2) 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. 6 Nuveen Investments 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 5/31/09 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- MARYLAND FUNDS NMY 0.66% 4.15% 5.06% NFM -2.52% 3.49% N/A NZR -2.43% 3.49% N/A NWI -0.05% 4.13% N/A VIRGINIA FUNDS NPV 0.88% 3.95% 5.03% NGB -2.92% 3.70% N/A NNB -1.78% 3.81% N/A Lipper Other States Municipal Debt Funds Average(3) -0.60% 3.80% 4.66% Barclays Capital Municipal Bond Index(4) 3.57% 4.41% 4.95% Standard & Poor's (S&P) National Municipal Bond Index(5) 2.02% 4.21% 4.81% -------------------------------------------------------------------------------- For the twelve months ended May 31, 2009, the total returns on common share net asset value (NAV) for NMY, NWI, and NPV exceeded the average return for the Lipper Other States Municipal Debt Funds Average, while NFM, NZR, NGB and NNB lagged the Lipper average. All of the Funds underperformed the returns of the national Barclays Capital Municipal Bond Index and the S&P National Municipal Bond Index for the period. The three benchmarks shown in the accompanying table all include bonds from states in addition to Maryland and Virginia, 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, credit exposure and sector allocations, and individual security selection. In addition, the use of leverage was an important factor affecting the Funds' performances over this period. The impact of leverage is discussed in more detail on page 9. Over the course of this twelve-month period, the municipal bond yield curve remained steep. Bonds in the Barclays Capital Municipal Bond Index with maturities of two to twelve years, especially those maturing in four to eight years, benefited the most from the interest rate environment. Because they were less sensitive to interest rate changes, these bonds generally outperformed credits with longer maturities, with bonds having the longest maturities (22 years and longer) posting a loss for the period. In general, all of the Maryland Funds had heavier weightings in the intermediate part of the yield curve 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: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. 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 Barclays Capital 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. Nuveen Investments 7 that performed well. However, the positive impact of those weightings was offset by other aspects of our duration and yield curve positioning, and the net effect was negative across all four of the Maryland Funds. The story was similar in the Virginia Funds, except in NNB. This Fund had the smallest exposure to the longer end of the curve among these Funds, which meant that the net effect of its positioning was slightly positive for performance. As mentioned earlier, all of these Funds used inverse floating rate securities. During this period, the impact of inverse floaters on performance varied, with inverse floaters based on higher credit quality bonds outperforming those that used lower quality credits. All of these inverse floaters benefited the Funds by helping to support their income streams. Given the difficult economic environment and the disruptions in the financial markets during this period, risk-averse investors put a priority on quality investments and bonds with higher credit quality exposure typically performed relatively well over the past twelve months. Bonds rated BBB or below and non-rated bonds generally posted poorer returns. NFM, NZR, NWI, NGB and NNB can invest up to 20% of their assets in below-investment-grade securities (bonds rated BB or below) or in non-rated bonds judged to be in the same credit quality category. The greater exposure of these five Funds to this segment of the market detracted from the performances of these Funds relative to NMY and NPV, which overall represented higher credit quality. As of May 31, 2009, NMY and NPV had allocated approximately 16% and 12%, respectively, to bonds rated BBB or lower and non-rated bonds, while the allocations of the five other Funds ranged from approximately 19% in NNB to 24% in NFM. Pre-refunded(6) bonds, which are backed by U.S. Treasury securities, were one of the top performing segments of the municipal bond market, due primarily to their shorter effective maturities, higher credit quality and perceived safety. Additional sectors of the market that generally made positive contributions to the Funds' returns included general obligation and other tax-supported bonds, water and sewer, education and housing credits. In general, the performances of these seven Funds were boosted by their overexposure to the housing sector. The Maryland Funds also benefited from their overweightings in tax-supported and higher education bonds, while the Virginia Funds were positively impacted by their heavier exposure to water and sewer credits. Holdings that generally detracted from the Funds' performances included industrial development revenue (IDR) and health care bonds, which performed poorly during this period. All of the Funds except NPV were negatively impacted by their exposure to IDRs and their overexposure to health care, especially holdings of bonds issued for long-term care facilities (also known as continuing care retirement centers) in NGB and NNB. Zero coupon bonds also performed poorly, as did lower-rated tobacco bonds. Individual security selection was also a factor in the Funds' performances during this period. In particular, the Funds were impacted to varying degrees by the downgrades of municipal bonds issuers and the subsequent impact on the returns and values of insured bonds. (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. 8 Nuveen Investments IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE In this unusual and volatile investment environment, another factor impacting the returns of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, use of leverage also can expose common shareholders to additional risk--especially when market conditions are unfavorable. For example, as the prices of securities held by a Fund declines, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. During this period, leverage had a mixed impact on the total return performance of these Funds. Generally, leverage was a negative factor in the fall of 2008 and a positive factor in the spring of 2009. RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS As noted in the last shareholder report, beginning in February 2008, more shares were submitted for sale 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, of the Funds' 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 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 auction rate preferred shares. These developments generally have not affected the portfolio management or investment policies of these Funds. However, one continuing implication for common shareholders of these auction failures 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 might have been. As noted in the last shareholder report, the Funds' Board of Trustees authorized a plan to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the Funds' outstanding auction rate preferred shares. The amount of TOBs that a Fund may use varies according to the composition of each Fund's portfolio. Some funds have a greater ability to use TOBs than others. As of May 31, 2009, the amount of auction rate preferred securities redeemed and/or noticed for redemption, at par, by the following Funds are as shown in the accompanying table. Nuveen Investments 9 AUCTION RATE PREFERRED SHARES % OF ORIGINAL REDEEMED AND/OR AUCTION RATE FUND NOTICED FOR REDEMPTION PREFERRED SHARES -------------------------------------------------------------------------------- NMY $ 8,225,000 10.4% NFM $ 6,175,000 19.3% NZR $ 5,375,000 16.8% NWI $ 4,000,000 10.3% NGB $ 4,500,000 18.8% NNB $ 825,000 2.0% -------------------------------------------------------------------------------- Subsequent to the reporting period, the following Funds noticed for redemption additional auction rate preferred securities, at par, as shown in the accompanying table. AUCTION RATE PREFERRED SHARES FUND NOTICED FOR REDEMPTION -------------------------------------------------------------------------------- NPV $ 6,800,000 NNB $ 4,250,000 -------------------------------------------------------------------------------- While the Funds' Board of Trustees and management continue to work to resolve this situation, the Funds cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed. As of May 31, 2009, sixty-eight Nuveen closed-end municipal funds have redeemed and/or noticed for redemption, at par, a portion of their outstanding auction rate preferred shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' auction rate preferred share redemptions to approximately $2.1 billion of the original $11 billion outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. 10 Nuveen Investments Common Share Dividend and Share Price Information During the twelve-month reporting period ended May 31, 2009, NMY and NPV each had three monthly dividend increases, NWI and NGB each had two increases and NFM, NZR and NNB each had one increase. Due to normal portfolio activity, common shareholders of the following Funds received capital gains and net ordinary income distributions at the end of December 2008 as follows: SHORT-TERM CAPITAL GAINS LONG-TERM CAPITAL GAINS AND/OR ORDINARY INCOME FUND (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NMY $ 0.0216 $ 0.0052 NZR $ 0.0223 $ 0.0125 NWI $ 0.0169 -- NPV $ 0.0388 $ 0.0091 NGB $ 0.0133 -- NNB $ 0.0073 $ 0.0024 -------------------------------------------------------------------------------- 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 May 31, 2009, all of the Funds in this report had positive UNII balances for both tax and financial statement purposes. COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION The Funds' Board of Trustees approved an open-market share repurchase program on July 30, 2008, under which each Fund may repurchase an aggregate of up to 10% of its outstanding common shares. Since the inception of this program, the Funds have not repurchased any of their outstanding common shares. Nuveen Investments 11 As of May 31, 2009, the Funds' common share prices were trading at premiums or discounts to their common share NAVs as shown in the accompanying table: 5/31/09 TWELVE-MONTH AVERAGE FUND +PREMIUM/-DISCOUNT +PREMIUM/-DISCOUNT -------------------------------------------------------------------------------- NMY -6.63% -12.88% NFM +0.31% -4.87% NZR -3.50% -5.41% NWI -5.56% -11.22% NPV +4.36% -2.35% NGB +7.36% +1.27% NNB +4.64% +1.73% -------------------------------------------------------------------------------- 12 Nuveen Investments NMY Performance OVERVIEW | Nuveen Maryland Premium Income Municipal Fund as of May 31, 2009 Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 46% AA 27% A 11% BBB 14% BB or Lower 1% N/R 1% 2008-2009 Monthly Tax-Free Dividends Per Common Share(2) [BAR CHART] Jun $ 0.0495 Jul 0.0495 Aug 0.0495 Sep 0.0515 Oct 0.0515 Nov 0.0515 Dec 0.0515 Jan 0.0515 Feb 0.0515 Mar 0.056 Apr 0.056 May 0.058 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 13.06 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 9.43 9.3 8.55 9.1 9.49 10 11.04 11.541 10.9 11.36 11.55 11.7 10.68 11.14 10.976 11.3 11.5 11.5 11.85 12.1 12.2 12.25 12.55 12.48 12.98 12.48 5/31/09 12.68 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.68 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.58 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -6.63% -------------------------------------------------------------------------------- Market Yield 5.49% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.03% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 144,504 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.19 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.72 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 2.57% 0.66% -------------------------------------------------------------------------------- 5-Year 2.63% 4.15% -------------------------------------------------------------------------------- 10-Year 3.68% 5.06% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/General 21.0% -------------------------------------------------------------------------------- Health Care 15.2% -------------------------------------------------------------------------------- U.S. Guaranteed 13.9% -------------------------------------------------------------------------------- Education and Civic Organizations 11.8% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.2% -------------------------------------------------------------------------------- Housing/Multifamily 8.3% -------------------------------------------------------------------------------- Housing/Single Family 6.5% -------------------------------------------------------------------------------- Other 13.1% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0268 per share. Nuveen Investments 13 NFM Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund as of May 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 13.05 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.01 -------------------------------------------------------------------------------- Premium/(Discount) to NAV 0.31% -------------------------------------------------------------------------------- Market Yield 5.52% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.07% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 54,507 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.83 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.73 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year -2.48% -2.52% -------------------------------------------------------------------------------- 5-Year 1.82% 3.49% -------------------------------------------------------------------------------- Since Inception 3.80% 4.57% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Health Care 22.3% -------------------------------------------------------------------------------- U.S. Guaranteed 14.4% -------------------------------------------------------------------------------- Tax Obligation/General 13.2% -------------------------------------------------------------------------------- Housing/Multifamily 11.8% -------------------------------------------------------------------------------- Tax Obligation/Limited 10.9% -------------------------------------------------------------------------------- Education and Civic Organizations 8.0% -------------------------------------------------------------------------------- Housing/Single Family 6.7% -------------------------------------------------------------------------------- Other 12.7% -------------------------------------------------------------------------------- Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 41% AA 17% A 18% BBB 17% BB or Lower 1% N/R 6% 2008-2009 Monthly Tax-Free Dividends Per Common Share [BAR CHART] Jun $ 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0585 Nov 0.0585 Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0585 Apr 0.0585 May 0.06 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 14.1 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 9.95 10 8.73 9.02 9.08 9.6 10.99 11.29 11.6 12.3 11.9 12.27 12.53 12.26 10.7101 11.3 11.64 12.17 11.95 12.12 12.335 12.044 12.5912 12.25 12.42 12.66 5/31/09 13.05 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 Nuveen Investments NZR Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 2 as of May 31, 2009 Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 40% AA 26% A 12% BBB 16% BB or Lower 2% N/R 4% 2008-2009 Monthly Tax-Free Dividends Per Common Share(2) [BAR CHART] Jun $ 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0585 Oct 0.0585 Nov 0.0585 Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0585 Apr 0.0585 May 0.06 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 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 9.87 9.63 8.4699 10.9056 9.75 10.24 11.04 11.75 11.04 12.06 13 12.3 11.5984 11.02 11.0801 11.86 11.926 12.46 11.95 12.68 12.3 12.074 12.46 12.49 12.37 12.6587 5/31/09 $ 12.6935 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.69 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.15 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -3.50% -------------------------------------------------------------------------------- Market Yield 5.67% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.29% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 55,185 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.57 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.01 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year -5.21% -2.43% -------------------------------------------------------------------------------- 5-Year 3.27% 3.49% -------------------------------------------------------------------------------- Since Inception 3.39% 4.50% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Health Care 17.9% -------------------------------------------------------------------------------- U.S. Guaranteed 16.0% -------------------------------------------------------------------------------- Tax Obligation/General 16.0% -------------------------------------------------------------------------------- Tax Obligation/Limited 11.9% -------------------------------------------------------------------------------- Education and Civic Organizations 10.6% -------------------------------------------------------------------------------- Housing/Single Family 7.0% -------------------------------------------------------------------------------- Housing/Multifamily 6.3% -------------------------------------------------------------------------------- Other 14.3% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0348 per share. Nuveen Investments 15 NWI Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 3 as of May 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 12.56 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.30 -------------------------------------------------------------------------------- Premium/(Discount) to NAV -5.56% -------------------------------------------------------------------------------- Market Yield 5.54% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 8.10% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 71,332 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.29 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.38 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 2.35% -0.05% -------------------------------------------------------------------------------- 5-Year 4.19% 4.13% -------------------------------------------------------------------------------- Since Inception 2.56% 3.93% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 21.2% -------------------------------------------------------------------------------- Health Care 17.6% -------------------------------------------------------------------------------- U.S. Guaranteed 16.2% -------------------------------------------------------------------------------- Tax Obligation/General 12.1% -------------------------------------------------------------------------------- Education and Civic Organizations 8.7% -------------------------------------------------------------------------------- Housing/Single Family 5.3% -------------------------------------------------------------------------------- Housing/Multifamily 5.1% -------------------------------------------------------------------------------- Other 13.8% -------------------------------------------------------------------------------- Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 38% AA 28% A 12% BBB 16% BB or Lower 2% N/R 4% 2008-2009 Monthly Tax-Free Dividends Per Common Share(2) [BAR CHART] Jun $ 0.0525 Jul 0.0525 Aug 0.0525 Sep 0.0535 Oct 0.0535 Nov 0.0535 Dec 0.0535 Jan 0.0535 Feb 0.0535 Mar 0.0535 Apr 0.0535 May 0.058 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 13.16 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 10.25 9.0899 8.58 9.045 9.2325 9.88 10.98 11.15 10.75 11.4 11.4 11.6 10.82 11.3261 11.08 11.3505 11.19 11.25 11.52 12.2329 11.95 11.756 12.26 11.92 12.22 12.42 5/31/09 12.56 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders a capital gains distribution in December 2008 of $0.0169 per share. 16 Nuveen Investments NPV Performance OVERVIEW | Nuveen Virginia Premium Income Municipal Fund as of May 31, 2009 Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 34% AA 43% A 11% BBB 7% BB or Lower 1% N/R 4% 2008-2009 Monthly Tax-Free Dividends Per Common Share(2) [BAR CHART] Jun $ 0.053 Jul 0.053 Aug 0.053 Sep 0.054 Oct 0.054 Nov 0.054 Dec 0.054 Jan 0.054 Feb 0.054 Mar 0.0555 Apr 0.0555 May 0.0605 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 14.08 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 11.49 11.62 10.78 11 11.15 11.58 13.14 12.64 12.51 13.15 13.814 13.75 13.09 13.4 12.83 13.47 13.25 13.82 13.39 13.6 13.57 13.7589 14.08 14.47 14.3 14.2111 5/31/09 14.3599 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $ 14.36 -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.76 -------------------------------------------------------------------------------- Premium/(Discount) to NAV 4.36% -------------------------------------------------------------------------------- Market Yield 5.06% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.45% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 123,119 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.23 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.96 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 8.05% 0.88% -------------------------------------------------------------------------------- 5-Year 4.74% 3.95% -------------------------------------------------------------------------------- 10-Year 4.41% 5.03% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Tax Obligation/Limited 18.8% -------------------------------------------------------------------------------- Health Care 18.8% -------------------------------------------------------------------------------- Tax Obligation/General 13.2% -------------------------------------------------------------------------------- U.S. Guaranteed 13.1% -------------------------------------------------------------------------------- Transportation 7.1% -------------------------------------------------------------------------------- Water and Sewer 5.8% -------------------------------------------------------------------------------- Housing/Single Family 5.5% -------------------------------------------------------------------------------- Utilities 4.9% -------------------------------------------------------------------------------- Other 12.8% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0479 per share. Nuveen Investments 17 NGB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund as of May 31, 2009 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $14.00 -------------------------------------------------------------------------------- Common Share Net Asset Value $13.04 -------------------------------------------------------------------------------- Premium/(Discount) to NAV 7.36% -------------------------------------------------------------------------------- Market Yield 5.31% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.82% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $40,881 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.49 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.59 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year -0.01% -2.92% -------------------------------------------------------------------------------- 5-Year 3.88% 3.70% -------------------------------------------------------------------------------- Since Inception 4.60% 4.70% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- U.S. Guaranteed 18.9% -------------------------------------------------------------------------------- Transportation 17.7% -------------------------------------------------------------------------------- Tax Obligation/Limited 13.6% -------------------------------------------------------------------------------- Health Care 13.2% -------------------------------------------------------------------------------- Tax Obligation/General 9.2% -------------------------------------------------------------------------------- Long-Term Care 7.1% -------------------------------------------------------------------------------- Housing/Single Family 6.8% -------------------------------------------------------------------------------- Other 13.5% -------------------------------------------------------------------------------- Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 39% AA 28% A 11% BBB 13% N/R 9% 2008-2009 Monthly Tax-Free Dividends Per Common Share(2) [BAR CHART] Jun $ 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0575 Oct 0.0575 Nov 0.0575 Dec 0.0575 Jan 0.0575 Feb 0.0575 Mar 0.0575 Apr 0.0575 May 0.062 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 15 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 11.81 10.76 9.1 10.219 10.69 10.56 12.19 11.74 11.78 12.45 12.9 13.55 12.36 12.5899 12.6 13.21 14.03 12.94 13.4 13.51 13.09 13.4753 13.67 14.28 13.83 13.8001 5/31/09 14 (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders a capital gains distribution in December 2008 of $0.0133 per share. 18 Nuveen Investments NNB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund 2 as of May 31, 2009 Credit Quality (as a % of total investments) [PIE CHART] AAA/U.S. Guaranteed 35% AA 30% A 16% BBB 11% N/R 8% 2008-2009 Monthly Tax-Free Dividends Per Common Share(2) [BAR CHART] Jun $ 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0595 Oct 0.0595 Nov 0.0595 Dec 0.0595 Jan 0.0595 Feb 0.0595 Mar 0.0595 Apr 0.0595 May 0.062 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 6/01/08 $ 14.5 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 12.52 10.7501 9.4 10.2 10.16 10.984 12.97 12.25 12.598 12.82 13 13.6 13 12.98 12.9688 13.79 13.855 13.8 13.79 13.66 13.99 13.99 13.938 13.98 13.964 14.28 5/31/09 13.98 FUND SNAPSHOT -------------------------------------------------------------------------------- Common Share Price $13.98 -------------------------------------------------------------------------------- Common Share Net Asset Value $13.36 -------------------------------------------------------------------------------- Premium/(Discount) to NAV 4.64% -------------------------------------------------------------------------------- Market Yield 5.32% -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.84% -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $76,726 -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.51 -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.67 -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV -------------------------------------------------------------------------------- 1-Year 0.96% -1.78% -------------------------------------------------------------------------------- 5-Year 4.72% 3.81% -------------------------------------------------------------------------------- Since Inception 4.68% 4.90% -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) -------------------------------------------------------------------------------- Health Care 18.4% -------------------------------------------------------------------------------- Tax Obligation/General 15.4% -------------------------------------------------------------------------------- Tax Obligation/Limited 14.8% -------------------------------------------------------------------------------- Water and Sewer 12.0% -------------------------------------------------------------------------------- U.S. Guaranteed 11.6% -------------------------------------------------------------------------------- Housing/Single Family 9.7% -------------------------------------------------------------------------------- Long-Term Care 6.6% -------------------------------------------------------------------------------- Other 11.5% -------------------------------------------------------------------------------- (1) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (2) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0097 per share. Nuveen Investments 19 NMY | Shareholder MEETING REPORT NFM | The annual meeting of shareholders was held in the offices of Nuveen Investments on November 18, 2008; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting was subsequently adjourned to January 13, 2009, and additionally adjourned to March 17, 2009, for NFM, NZR, NWI, NPV and NGB.
NMY NFM -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class -------------------------------------------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 4,804,861 1,701 1,987,081 223 Against 309,925 257 117,173 72 Abstain 162,645 6 67,165 3 Broker Non-Votes 1,272,135 871 646,892 905 -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 2,835 2,818,311 1,203 ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 4,808,849 1,702 2,004,464 224 Against 308,368 256 106,636 73 Abstain 160,214 6 60,319 1 Broker Non-Votes 1,272,135 871 646,892 905 -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 2,835 2,818,311 1,203 ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 4,735,689 1,699 -- -- Against 364,961 261 -- -- Abstain 176,781 4 -- -- Broker Non-Votes 1,272,135 871 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 2,835 -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 4,754,339 1,703 -- -- Against 346,253 255 -- -- Abstain 176,839 6 -- -- Broker Non-Votes 1,272,135 871 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 2,835 -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 4,752,454 1,700 -- -- Against 341,059 256 -- -- Abstain 183,918 8 -- -- Broker Non-Votes 1,272,135 871 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 2,835 -- -- ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 4,760,170 1,697 -- -- Against 337,548 259 -- -- Abstain 179,713 8 -- -- Broker Non-Votes 1,272,135 871 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 2,835 -- -- ==========================================================================================================================
20 Nuveen Investments
NMY NFM -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class -------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 6,260,872 -- 2,711,978 -- Withhold 288,694 -- 102,035 -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 -- 2,814,013 -- ========================================================================================================================== William C. Hunter For -- 2,617 -- 1,106 Withhold -- 218 -- 94 -------------------------------------------------------------------------------------------------------------------------- Total -- 2,835 -- 1,200 ========================================================================================================================== David J. Kundert For 6,260,543 -- 2,707,809 -- Withhold 289,023 -- 106,204 -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 -- 2,814,013 -- ========================================================================================================================== William J. Schneider For -- 2,617 -- 1,106 Withhold -- 218 -- 94 -------------------------------------------------------------------------------------------------------------------------- Total -- 2,835 -- 1,200 ========================================================================================================================== Terence J. Toth For 6,260,398 -- 2,711,978 -- Withhold 289,168 -- 102,035 -- -------------------------------------------------------------------------------------------------------------------------- Total 6,549,566 -- 2,814,013 -- ==========================================================================================================================
Nuveen Investments 21 NZR | Shareholder MEETING REPORT (continued) NWI |
NZR NWI -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class -------------------------------------------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 2,001,599 267 2,599,994 384 Against 196,787 80 151,171 40 Abstain 95,921 5 89,909 7 Broker Non-Votes 643,798 789 827,973 1,035 -------------------------------------------------------------------------------------------------------------------------- Total 2,938,105 1,141 3,669,047 1,466 ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 2,023,862 266 2,628,677 384 Against 188,432 80 128,152 40 Abstain 82,013 6 84,245 7 Broker Non-Votes 643,798 789 827,973 1,035 -------------------------------------------------------------------------------------------------------------------------- Total 2,938,105 1,141 3,669,047 1,466 ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- ==========================================================================================================================
22 Nuveen Investments
NZR NWI -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class -------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 2,780,494 -- 3,531,114 -- Withhold 157,611 -- 134,878 -- -------------------------------------------------------------------------------------------------------------------------- Total 2,938,105 -- 3,665,992 -- ========================================================================================================================== William C. Hunter For -- 1,122 -- 1,396 Withhold -- 19 -- 65 -------------------------------------------------------------------------------------------------------------------------- Total -- 1,141 -- 1,461 ========================================================================================================================== David J. Kundert For 2,776,939 -- 3,542,322 -- Withhold 161,166 -- 123,670 -- -------------------------------------------------------------------------------------------------------------------------- Total 2,938,105 -- 3,665,992 -- ========================================================================================================================== William J. Schneider For -- 1,122 -- 1,396 Withhold -- 19 -- 65 -------------------------------------------------------------------------------------------------------------------------- Total -- 1,141 -- 1,461 ========================================================================================================================== Terence J. Toth For 2,783,094 -- 3,543,322 -- Withhold 155,011 -- 122,670 -- -------------------------------------------------------------------------------------------------------------------------- Total 2,938,105 -- 3,665,992 -- ==========================================================================================================================
Nuveen Investments 23 NPV | Shareholder MEETING REPORT (continued) NGB |
NPV NGB -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class -------------------------------------------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 4,099,884 891 1,521,941 643 Against 257,767 161 77,126 148 Abstain 149,776 53 55,989 12 Broker Non-Votes 1,258,548 714 314,654 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,765,975 1,819 1,969,710 803 ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 4,124,117 907 1,540,866 643 Against 243,551 145 59,265 135 Abstain 139,759 53 54,925 25 Broker Non-Votes 1,258,548 714 314,654 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,765,975 1,819 1,969,710 803 ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 4,094,626 869 -- -- Against 275,348 209 -- -- Abstain 137,453 27 -- -- Broker Non-Votes 1,258,548 714 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,765,975 1,819 -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 4,084,945 917 -- -- Against 258,662 166 -- -- Abstain 163,820 22 -- -- Broker Non-Votes 1,258,548 714 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,765,975 1,819 -- -- ========================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 4,093,553 925 -- -- Against 267,354 159 -- -- Abstain 146,520 21 -- -- Broker Non-Votes 1,258,548 714 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,765,975 1,819 -- -- ========================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 4,084,124 935 -- -- Against 271,553 144 -- -- Abstain 151,750 26 -- -- Broker Non-Votes 1,258,548 714 -- -- -------------------------------------------------------------------------------------------------------------------------- Total 5,765,975 1,819 -- -- ==========================================================================================================================
24 Nuveen Investments
NPV NGB -------------------------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class -------------------------------------------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 5,579,902 -- 1,917,843 -- Withhold 171,078 -- 51,802 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,750,980 -- 1,969,645 -- ========================================================================================================================== William C. Hunter For -- 1,586 -- 658 Withhold -- 141 -- 80 -------------------------------------------------------------------------------------------------------------------------- Total -- 1,727 -- 738 ========================================================================================================================== David J. Kundert For 5,579,906 -- 1,917,184 -- Withhold 171,074 -- 52,461 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,750,980 -- 1,969,645 -- ========================================================================================================================== William J. Schneider For -- 1,586 -- 658 Withhold -- 141 -- 80 -------------------------------------------------------------------------------------------------------------------------- Total -- 1,727 -- 738 ========================================================================================================================== Terence J. Toth For 5,581,465 -- 1,908,196 -- Withhold 169,515 -- 61,449 -- -------------------------------------------------------------------------------------------------------------------------- Total 5,750,980 -- 1,969,645 -- ==========================================================================================================================
Nuveen Investments 25 NNB | Shareholder MEETING REPORT (continued)
NNB -------------------------------------------------------------------------------------- Common and Preferred Preferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------------- TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 2,537,942 866 Against 110,227 303 Abstain 107,939 181 Broker Non-Votes 918,828 -- -------------------------------------------------------------------------------------- Total 3,674,936 1,350 ====================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 2,560,228 856 Against 87,377 313 Abstain 108,503 181 Broker Non-Votes 918,828 -- -------------------------------------------------------------------------------------- Total 3,674,936 1,350 ====================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- -------------------------------------------------------------------------------------- Total -- -- ====================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- -------------------------------------------------------------------------------------- Total -- -- ====================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- -------------------------------------------------------------------------------------- Total -- -- ====================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- -------------------------------------------------------------------------------------- Total -- -- ======================================================================================
26 Nuveen Investments
NNB -------------------------------------------------------------------------------------- Common and Preferred Preferred shares voting shares voting together together as a class as a class -------------------------------------------------------------------------------------- APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 3,525,767 -- Withhold 149,169 -- -------------------------------------------------------------------------------------- Total 3,674,936 -- ====================================================================================== William C. Hunter For -- 1,137 Withhold -- 213 -------------------------------------------------------------------------------------- Total -- 1,350 ====================================================================================== David J. Kundert For 3,526,865 -- Withhold 148,071 -- -------------------------------------------------------------------------------------- Total 3,674,936 -- ====================================================================================== William J. Schneider For -- 1,137 Withhold -- 213 -------------------------------------------------------------------------------------- Total -- 1,350 ====================================================================================== Terence J. Toth For 3,524,767 -- Withhold 150,169 -- -------------------------------------------------------------------------------------- Total 3,674,936 -- ======================================================================================
Nuveen Investments 27 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF TRUSTEES AND SHAREHOLDERS NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Maryland Premium Income Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund 2, Nuveen Maryland Dividend Advantage Municipal Fund 3, Nuveen Virginia Premium Income Municipal Fund, Nuveen Virginia Dividend Advantage Municipal Fund and Nuveen Virginia Dividend Advantage Municipal Fund 2 (the Funds) as of May 31, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Maryland Premium Income Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund 2, Nuveen Maryland Dividend Advantage Municipal Fund 3, Nuveen Virginia Premium Income Municipal Fund, Nuveen Virginia Dividend Advantage Municipal Fund and Nuveen Virginia Dividend Advantage Municipal Fund 2 at May 31, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended in conformity with US generally accepted accounting principles. Ernst & Young LLP /s/ Chicago, Illinois Chicago, Illinois July 23, 2009 28 Nuveen Investments NMY | Nuveen Maryland Premium Income Municipal Fund | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 2.0% (1.4% OF TOTAL INVESTMENTS) $ 4,825 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 2,964,335 Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS) 2,705 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,253,914 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.4% (11.8% OF TOTAL INVESTMENTS) 1,250 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 952,825 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+ 943,050 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 BBB 1,037,075 980 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 BBB 1,037,075 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 753,855 500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 488,755 1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,173,638 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,430 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,464,291 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 14.058%, 7/01/33 (IF) 1,825 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 1,499,256 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 1,365 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 1,443,460 Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/19 9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call AA- 11,091,263 Revenue 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+ 1,850,113 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+ 796,550 850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 646,927 ------------------------------------------------------------------------------------------------------------------------------------ 24,220 Total Education and Civic Organizations 25,178,133 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 22.3% (15.2% OF TOTAL INVESTMENTS) 1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,440,957 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 A3 3,249,805 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32
NUVEEN INVESTMENTS 29 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A3 $ 347,952 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 BBB- 1,207,225 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 1,740 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 1,274,080 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 1,094,128 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+ 1,335,075 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 - MBIA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 7/09 at 100.00 AA- 989,430 Revenue Bonds, Johns Hopkins Hospital, Howard County General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - MBIA Insured 2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,021,860 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 3,206,516 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 1,201,614 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- 1,775,638 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 3,321,022 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 822,170 670 5.500%, 7/01/42 7/17 at 100.00 BBB 580,106 1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,634,108 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,141,873 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 960,020 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- 2,068,969 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 7/09 at 100.00 B3 366,437 295 5.300%, 7/01/24 7/09 at 100.00 B3 186,062 ------------------------------------------------------------------------------------------------------------------------------------ 35,255 Total Health Care 32,225,047 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 12.2% (8.3% OF TOTAL INVESTMENTS) 1,450 Maryland Community Development Administration, FNMA Multifamily 2/11 at 101.00 Aaa 1,487,773 Development Revenue Bonds, Edgewater Village Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative Minimum Tax) 2,500 Maryland Community Development Administration, Housing Revenue 7/09 at 101.00 Aa2 2,396,475 Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Housing Revenue 1/10 at 100.00 Aa2 883,520 Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 $ 703,100 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 1,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa3 935,380 Revenue Bonds, Collegiate Housing Foundation - Salisbury State University, Series 1999A, 6.000%, 6/01/19 1,145 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 903,909 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, 7/09 at 100.50 Aaa 3,841,069 FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30 360 Montgomery County Housing Opportunities Commission, Maryland, 7/09 at 100.00 Aa2 360,749 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 2,021,440 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 549,455 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: 1,890 5.700%, 12/20/15 6/09 at 100.00 AAA 1,894,007 1,670 5.750%, 12/20/19 6/09 at 100.00 AAA 1,672,488 ------------------------------------------------------------------------------------------------------------------------------------ 18,265 Total Housing/Multifamily 17,649,365 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 9.4% (6.5% OF TOTAL INVESTMENTS) 2,510 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 2,588,237 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 566,166 1,195 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 1,137,783 4,100 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 AA2 3,895,328 1,630 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 AA2 1,461,654 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 650 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 628,056 1,200 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 1,065,492 2,330 Maryland Community Development Administration, Department of 9/14 at 100.00 AA2 2,093,318 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) 5 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 5,078 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax) 315 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 286,275 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 14,535 Total Housing/Single Family 13,727,387 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS) 2,010 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 1,851,230 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.6% (1.7% OF TOTAL INVESTMENTS) 2,455 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 1,977,355 Series 2007A, 5.000%, 1/01/37 1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA Obligated 7/09 at 101.00 BBB- 903,190 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- 811,147 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 4,520 Total Long-Term Care 3,691,692 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 31 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 31.0% (21.0% OF TOTAL INVESTMENTS) $ 2,030 Anne Arundel County, Maryland, General Obligation Bonds, Series 4/14 at 100.00 AAA $ 2,271,672 2004, 5.000%, 4/01/16 1,000 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 1,105,270 2006, 5.000%, 3/01/21 685 Anne Arundel County, Maryland, Water and Sewer Revenue Bonds, 3/16 at 100.00 AAA 787,551 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 2,587,750 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,615,570 1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AA- 1,611,056 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+ 807,695 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 2,487,273 820 5.000%, 3/01/16 No Opt. Call AA 952,200 Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2004B: 1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,793,480 1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,284,430 1,725 Howard County, Maryland, Metropolitan District Refunding Bonds, 2/12 at 100.00 AAA 1,834,158 Series 2002A, 5.250%, 8/15/18 1,190 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,303,883 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 3,479,880 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 Montgomery County, Maryland, Consolidated General Obligation Public Improvement Refunding Bonds, Series 2001: 1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,912,120 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,127,820 2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AAA 2,081,400 Consolidated Public Improvement Bonds, Series 2002, 4.100%, 9/15/19 5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AAA 6,265,355 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/18 Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005: 2,000 5.000%, 6/01/16 6/15 at 100.00 AAA 2,294,040 1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,336,505 1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,327,773 1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,320,474 ------------------------------------------------------------------------------------------------------------------------------------ 40,905 Total Tax Obligation/General 44,587,355 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 15.1% (10.2% OF TOTAL INVESTMENTS) 300 Baltimore, Maryland, Special Obligation Bonds, North Locust 9/15 at 101.00 N/R 185,853 Point Project, Series 2005, 5.500%, 9/01/34 340 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB- 291,706 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 591,795 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+ 875,271 925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 930,208 4,250 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,034,635 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
32 Nuveen Investments
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+ $ 2,016,806 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+ 1,775,140 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 1,058,280 Garage, Series 2002, 5.000%, 6/01/21 675 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A3 576,902 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+ 667,309 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 BBB 954,360 2,500 5.250%, 7/01/31 - AMBAC Insured No Opt. Call A 2,294,900 1,000 5.250%, 7/01/33 - MBIA Insured No Opt. Call AA- 914,530 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,118,816 8/01/21 - FSA Insured 1,500 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA- 1,503,945 Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,575 Total Tax Obligation/Limited 21,790,456 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.6% (3.1% OF TOTAL INVESTMENTS) 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking System No Opt. Call AA- 1,165,131 Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured 4,335 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 4,525,263 Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB) 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/09 at 100.00 CCC+ 959,771 American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 7,470 Total Transportation 6,650,165 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.5% (13.9% OF TOTAL INVESTMENTS) (4) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 2,173,600 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA (4) 2,227,500 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) 1,454,384 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) 209,882 200 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 209,958 3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,043,080 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) 296,057 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 1,860 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 2,024,424 and Improvement Bonds, Shady Grove Adventist Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured (ETM) 575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 635,622 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: 840 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 947,965 625 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 705,331
Nuveen Investments 33 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call BBB (4) $ 3,563,904 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC Insured (ETM) 3,125 Maryland Health and Higher Educational Facilities Authority, 7/09 at 100.00 AAA 3,205,500 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) 2,337,922 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) 1,699,815 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 227,945 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 1,050,530 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 1,203,480 Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 235 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 243,761 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) 2,175,380 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) ------------------------------------------------------------------------------------------------------------------------------------ 27,115 Total U.S. Guaranteed 29,636,040 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.7% (2.5% OF TOTAL INVESTMENTS) 2,500 Maryland Energy Financing Administration, Revenue Bonds, AES 9/09 at 100.00 N/R 1,929,825 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/14 at 100.00 AA- 3,411,275 Series 2004PP, 5.000%, 7/01/22 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total Utilities 5,341,100 ------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.5% (2.4% OF TOTAL INVESTMENTS) $ 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA $ 1,124,347 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 1,711,783 2006C, 5.000%, 7/01/31 - AMBAC Insured 1,260 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 1,270,786 2007D, 5.000%, 7/01/32 - AMBAC Insured 860 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 999,053 Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ 4,820 Total Water and Sewer 5,105,969 ------------------------------------------------------------------------------------------------------------------------------------ $ 214,220 Total Investments (cost $215,404,337) - 147.2% 212,652,188 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (6.9)% (9,962,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 8.7% 12,689,256 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.0)% (5) (70,875,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 144,504,444 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 peri-odic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): 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. (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 33.3%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. NUVEEN INVESTMENTS 35 NFM | Nuveen Maryland Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.4% (2.2% OF TOTAL INVESTMENTS) $ 2,115 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,299,393 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 196,401 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 339,463 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 3,075 Total Consumer Discretionary 1,835,257 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.1% (1.4% OF TOTAL INVESTMENTS) 1,350 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,124,874 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.0% (8.0% OF TOTAL INVESTMENTS) 645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 608,267 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 980 Maryland Economic Development Corporation, Utility 7/11 at 100.00 A 998,238 Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 1,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 BBB- 1,253,940 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- 469,455 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 599,028 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 14.058%, 7/01/33 (IF) 565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 445,819 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 356,720 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 647,454 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 8/09 at 101.00 BBB- 184,543 410 5.375%, 2/01/29 8/09 at 101.00 BBB- 299,189 900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 684,981 McDaniel College, Series 2006, 4.500%, 11/01/36 ------------------------------------------------------------------------------------------------------------------------------------ 7,390 Total Education and Civic Organizations 6,547,634 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 33.6% (22.3% OF TOTAL INVESTMENTS) 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A 1,163,032 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 7/09 at 100.50 AAA 1,003,050 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/28 - FSA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 A2 942,440 Revenue Bonds, Calvert Memorial Hospital, Series 1998, 5.000%, 7/01/28
36 NUVEEN INVESTMENTS
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 $ 1,017,370 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 A3 347,952 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 BBB- 543,795 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 519,883 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 390,760 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+ 578,533 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+ 1,265,463 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,249,319 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 843,820 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 495,985 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- 710,255 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 1,364,529 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 337,822 270 5.500%, 7/01/42 7/17 at 100.00 BBB 233,774 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 906,770 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 672,868 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 890,600 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- 846,593 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 570 Maryland Health and Higher Educational Facilities Authority, 7/09 at 100.00 A3 569,966 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/09 at 100.00 B3 441,504 Health Corporation, Series 1994, 5.300%, 7/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 19,990 Total Health Care 18,336,083 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 17.7% (11.8% OF TOTAL INVESTMENTS) 2,000 Maryland Community Development Administration, Housing Revenue 7/09 at 100.50 Aa2 1,999,980 Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 984,020 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 206,065 50 5.000%, 10/01/15 10/13 at 100.00 B2 41,135 210 5.625%, 10/01/23 10/13 at 100.00 B2 147,651
Nuveen Investments 37 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 N/R $ 1,185,120 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 374,984 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, 7/09 at 100.50 Aaa 736,275 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 2,015,100 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 1,987,960 Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,500 Total Housing/Multifamily 9,678,290 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.1% (6.7% OF TOTAL INVESTMENTS) 985 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 1,015,702 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 566,166 300 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 285,636 1,200 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 AA2 1,140,096 815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 AA2 730,827 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 250 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 241,560 500 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 443,956 970 Maryland Community Development Administration, Department of 9/14 at 100.00 AA2 871,466 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) 225 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 222,350 Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 5,845 Total Housing/Single Family 5,517,759 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.5% (1.6% OF TOTAL INVESTMENTS) 410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 377,614 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 7/09 at 101.00 BBB 976,800 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,410 Total Industrials 1,354,414 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.1% (2.1% OF TOTAL INVESTMENTS) 850 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 684,624 Series 2007A, 5.000%, 1/01/37 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 207,027 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 720 Maryland Health and Higher Educational Facilities Authority, 1/17 at 100.00 N/R 464,573 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- 335,122 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 2,310 Total Long-Term Care 1,691,346 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 20.0% (13.2% OF TOTAL INVESTMENTS) 565 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 624,478 2006, 5.000%, 3/01/21 3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,608,708 Assessment Bonds, 67th Issue, 5.000%, 6/01/27
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ $ 346,155 Series 2005A, 5.000%, 12/01/16 600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 687,054 5.000%, 8/01/16 - MBIA Insured 1,360 Howard County, Maryland, Consolidated Public Improvement Bonds, 8/09 at 101.00 AAA 1,373,600 Series 2001A, 4.750%, 2/15/21 1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,095,700 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 1,588,983 Public Improvement Bonds, Series 2006, 5.000%, 5/01/16 740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AA- 757,982 4.875%, 3/01/19 - FGIC Insured 700 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 802,914 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 10,125 Total Tax Obligation/General 10,885,574 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.4% (10.9% OF TOTAL INVESTMENTS) 465 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 455,556 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 230,143 Center Project, Series 2004, 5.750%, 7/01/34 1,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,776,930 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+ 1,511,260 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+ 408,861 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+ 816,264 Marlboro Justice Center, Series 2003A, 5.000%, 6/30/14 - MBIA Insured 895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 555,804 National Harbor Project, Series 2005, 5.200%, 7/01/34 450 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 240,183 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 917,960 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA- 701,841 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+ 1,313,207 Loan Note, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ 9,165 Total Tax Obligation/Limited 8,928,009 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.5% (3.0% OF TOTAL INVESTMENTS) 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 573,580 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 1,863,344 Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 2,435 Total Transportation 2,436,924 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.7% (14.4% OF TOTAL INVESTMENTS) (4) 1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 1,103,102 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 465 5.700%, 9/01/20 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 487,799 500 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 524,705
Nuveen Investments 39 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) $ 555,350 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) 670,433 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) 678,031 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) 2,165,940 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 829,955 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 2,416,219 1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,785,901 590 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 611,995 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) ------------------------------------------------------------------------------------------------------------------------------------ 10,990 Total U.S. Guaranteed 11,829,430 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.4% (0.9% OF TOTAL INVESTMENTS) 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 9/09 at 100.00 N/R 771,930 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.3% (1.5% OF TOTAL INVESTMENTS) 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 294,778 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 544,623 2007D, 5.000%, 7/01/32 - AMBAC Insured 355 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 412,400 Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ 1,180 Total Water and Sewer 1,251,801 ------------------------------------------------------------------------------------------------------------------------------------ $ 86,765 Total Investments (cost $86,511,674) - 150.8% 82,189,325 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (7.3)% (3,973,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.9% 2,115,509 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.4)% (5) (25,825,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 54,506,834 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 peri-odic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): 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. (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 31.4%. 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 notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 40 Nuveen Investments NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 3.6% (2.3% OF TOTAL INVESTMENTS) $ 2,320 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 $ 1,425,338 Revenue 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 196,401 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 339,463 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 3,280 Total Consumer Discretionary 1,961,202 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.2% (1.4% OF TOTAL INVESTMENTS) 680 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 566,603 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 624,832 Tobacco Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 ------------------------------------------------------------------------------------------------------------------------------------ 1,480 Total Consumer Staples 1,191,435 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 16.2% (10.6% OF TOTAL INVESTMENTS) 1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 1,123,012 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 500 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 381,130 Bonds, 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+ 608,267 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 250 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 BBB- 208,990 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 405,667 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- 469,455 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 599,028 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 14.058%, 7/01/33 (IF) 750 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 616,133 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 445,819 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 375,495 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 628,728 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- 509,890 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- 517,145 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/20 - FGIC Insured
Nuveen Investments 41 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS May 31, 2009
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+ $ 1,169,401 Bonds, Series 2001B, 4.500%, 4/01/19 650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 713,694 Bonds, Series 2006A, 5.000%, 10/01/22 200 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 175,066 McDaniel College, Series 2006, 5.000%, 11/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 9,390 Total Education and Civic Organizations 8,946,920 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 27.2% (17.9% OF TOTAL INVESTMENTS) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/09 at 100.50 AAA 1,001,160 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 732,290 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 A3 1,017,370 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 BBB- 543,795 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 523,544 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 390,760 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+ 578,533 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 - MBIA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 843,820 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 490,872 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- 710,255 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 1,364,529 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 337,822 280 5.500%, 7/01/42 7/17 at 100.00 BBB 242,432 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 1,360,155 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 672,868 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 1,310,550 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- 846,593 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 1,610 Montgomery County, Maryland, Economic Development Revenue 12/11 at 100.00 AA 1,628,644 Bonds, Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/09 at 100.00 B3 441,504 Health Corporation, Series 1994, 5.300%, 7/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 16,615 Total Health Care 15,037,496 ------------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 9.6% (6.3% OF TOTAL INVESTMENTS) $ 10 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 $ 10,029 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001A, 5.100%, 5/15/28 3,145 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 3,094,743 Development Revenue Bonds, Waters Towers Senior Apartments, Series 2001F, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,092,262 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 703,100 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 410,509 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,785 Total Housing/Multifamily 5,310,643 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.8% (7.0% OF TOTAL INVESTMENTS) 1,030 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 1,062,105 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 566,166 300 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 285,636 1,000 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 AA2 950,080 815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 AA2 730,827 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 250 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 241,560 500 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 443,956 970 Maryland Community Development Administration, Department of 9/14 at 100.00 AA2 871,468 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) 810 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 789,944 Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 6,275 Total Housing/Single Family 5,941,742 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.7% (1.8% OF TOTAL INVESTMENTS) 410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 377,614 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 7/09 at 101.00 BBB 1,123,320 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,560 Total Industrials 1,500,934 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.2% (2.1% OF TOTAL INVESTMENTS) 860 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 692,678 Series 2007A, 5.000%, 1/01/37 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 207,027 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm Presbyterian Community, Series 2007A: 500 5.000%, 1/01/17 No Opt. Call N/R 392,255 220 5.250%, 1/01/27 1/17 at 100.00 N/R 141,953 435 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 331,313 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 2,315 Total Long-Term Care 1,765,226 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 24.4% (16.0% OF TOTAL INVESTMENTS) $ 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AAA $ 759,255 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+ 346,155 Series 2005A, 5.000%, 12/01/16 Cecil County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2001B: 975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,018,651 1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,061,575 600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 687,054 5.000%, 8/01/16 - MBIA Insured 510 Frederick, Maryland, General Obligation Refunding and Improvement 12/11 at 101.00 AA 542,237 Bonds, Series 2001, 4.750%, 12/01/19 1,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,159,960 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 5,032,293 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 770,416 Series 2001, 5.000%, 7/01/24 - FSA Insured 800 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 917,616 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 1,147,020 George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 12,455 Total Tax Obligation/General 13,442,232 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 18.1% (11.9% OF TOTAL INVESTMENTS) 465 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 455,556 Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 530 Baltimore Board of School Commissioners, Maryland, Revenue Bonds, 5/13 at 100.00 AA+ 580,801 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+ 1,642,157 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,720,208 110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB- 94,376 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 230,143 Center Project, Series 2004, 5.750%, 7/01/34 1,000 Maryland Department of Transportation, Consolidated Transportation No Opt. Call AAA 1,184,620 Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,511,260 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 854,670 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 555,804 National Harbor Project, Series 2005, 5.200%, 7/01/34 475 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 253,527 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 917,960 Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,470 Total Tax Obligation/Limited 10,001,082 ------------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.9% (3.9% 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 BBB $ 573,580 1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 BBB 815,540 1,780 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,858,124 Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ 3,430 Total Transportation 3,247,244 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.4% (16.0% OF TOTAL INVESTMENTS) (4) 1,000 Baltimore County, Maryland, Consolidated General Obligation Public 8/12 at 100.00 AAA 1,113,450 Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 104,941 100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 104,979 90 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB- (4) 96,891 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 25 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 27,768 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call BBB (4) 1,420,574 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) 601,671 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) 1,356,063 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) 2,165,940 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 1,000 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,168,950 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101.00 AAA 1,114,340 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 Obligation 10/10 at 101.00 AAA 3,151,590 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 1,057,330 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) ------------------------------------------------------------------------------------------------------------------------------------ 12,350 Total U.S. Guaranteed 13,484,487 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.8% (1.8% OF TOTAL INVESTMENTS) 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/09 at 101.00 AA- 762,390 10/01/34 - MBIA Insured 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 9/09 at 100.00 N/R 771,930 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 1,534,320 ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 45 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.5% (1.0% OF TOTAL INVESTMENTS) $ 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA $ 294,778 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 544,621 2007D, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 825 Total Water and Sewer 839,399 ------------------------------------------------------------------------------------------------------------------------------------ $ 88,230 Total Investments (cost $87,970,712) - 152.6% 84,204,362 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (7.0)% (3,840,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 1,446,052 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.2)% (5) (26,625,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 55,185,414 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 peri-odic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): 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. (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 31.6%. 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 notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 46 Nuveen Investments NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 2.9% (1.9% OF TOTAL INVESTMENTS) $ 2,385 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,465,272 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 240,749 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 700 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 365,575 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 3,465 Total Consumer Discretionary 2,071,596 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.8% (1.8% OF TOTAL INVESTMENTS) 2,360 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,966,446 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.1% (8.7% OF TOTAL INVESTMENTS) 225 Anne Arundel County, Maryland, Economic Development Revenue Bonds, 9/12 at 102.00 A3 229,707 Community College Project, Series 2002, 5.125%, 9/01/22 625 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 476,413 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+ 650,705 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 586,819 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 735 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 752,625 Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003, 14.058%, 7/01/33 (IF) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,001,650 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 759,897 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 469,369 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 756,604 Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/18 1,000 Morgan State University, Maryland, Student Tuition and Fee Revenue 7/13 at 100.00 AA- 987,810 Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/32 - FGIC Insured 985 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA+ 1,006,030 Bonds, Series 2001B, 4.625%, 4/01/21 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 878,392 Bonds, Series 2006A, 5.000%, 10/01/22 890 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 779,044 McDaniel College, Series 2006, 5.000%, 11/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 9,835 Total Education and Civic Organizations 9,335,065 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 26.6% (17.6% OF TOTAL INVESTMENTS) 700 Maryland Health and Higher Education Facilities Authority, Revenue 7/16 at 100.00 A 630,721 Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/31
Nuveen Investments 47 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Maryland Health and Higher Educational Facilities Authority, 7/09 at 100.50 AAA $ 1,001,160 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 732,290 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 A3 1,249,925 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 A3 1,522,290 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 BBB- 630,802 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 648,024 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 547,064 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+ 712,040 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+ 1,012,370 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 843,820 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 608,477 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- 913,185 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 1,695,628 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 427,366 340 5.500%, 7/01/42 7/17 at 100.00 BBB 294,382 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 589,401 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 817,054 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 1,783,617 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- 1,053,921 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 691,323 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 900 Prince George's County, Maryland, Revenue Bonds, Dimensions Health 7/09 at 100.00 B3 567,648 Corporation, Series 1994, 5.300%, 7/01/24 ------------------------------------------------------------------------------------------------------------------------------------ 21,020 Total Health Care 18,972,508 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 7.8% (5.1% OF TOTAL INVESTMENTS) 980 Maryland Community Development Administration, Housing Revenue 7/12 at 100.00 Aa2 905,138 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 878,875 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) 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 $ 14,916 150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 N/R 98,760 475 Maryland Economic Development Corporation, Student Housing Revenue 6/16 at 100.00 Baa2 374,984 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 483,085 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 2,786,129 ------------------------------------------------------------------------------------------------------------------------------------ 6,390 Total Housing/Multifamily 5,541,887 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.0% (5.3% OF TOTAL INVESTMENTS) 1,280 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 1,319,898 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 595 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 AA2 566,511 1,200 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 AA2 1,140,096 815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 AA2 730,827 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 350 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 338,184 620 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 AA2 550,504 1,160 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) 9/14 at 100.00 AA2 1,042,168 ------------------------------------------------------------------------------------------------------------------------------------ 6,020 Total Housing/Single Family 5,688,188 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.0% (1.4% OF TOTAL INVESTMENTS) 510 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 469,715 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 7/09 at 101.00 BBB 976,800 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 1,510 Total Industrials 1,446,515 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.9% (1.9% OF TOTAL INVESTMENTS) 1,050 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 845,712 Series 2007A, 5.000%, 1/01/37 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 276,036 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm Presbyterian Community, Series 2007A: 280 5.000%, 1/01/17 No Opt. Call N/R 219,663 520 5.250%, 1/01/27 1/17 at 100.00 N/R 335,525 540 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 411,286 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 ------------------------------------------------------------------------------------------------------------------------------------ 2,790 Total Long-Term Care 2,088,222 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 18.3% (12.1% OF TOTAL INVESTMENTS) 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,057,200 Refunding Bonds, Series 2002, 4.375%, 4/01/17 380 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 438,463 Series 2005A, 5.000%, 12/01/16 1,260 Charles County, Maryland, Consolidated General Obligation Public 1/12 at 101.00 AA 1,336,104 Improvement Bonds, Series 2002, 4.400%, 1/15/16
Nuveen Investments 49 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 710 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA $ 813,014 5.000%, 8/01/16 - MBIA Insured 1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,095,700 George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,850 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 2,145,926 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 1,440 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,682,453 Public Improvement Bonds, Series 2006, 5.000%, 5/01/16 1,000 Prince George's County, Maryland, General Obligation Consolidated No Opt. Call AAA 1,096,120 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 1,118,060 Series 2002, 5.000%, 10/01/12 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,147,020 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 1,147,020 George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ 11,640 Total Tax Obligation/General 13,077,080 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 32.0% (21.2% OF TOTAL INVESTMENTS) 1,000 Baltimore Board of School Commissioners, Maryland, Revenue Bonds, 5/13 at 100.00 AA+ 1,095,850 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- 124,393 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 295,898 Center Project, Series 2004, 5.750%, 7/01/34 5,000 Maryland Department of Transportation, Consolidated Transportation No Opt. Call AAA 5,923,097 Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,200 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 2,259,510 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+ 497,264 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+ 3,197,447 Montgomery County Wayne Avenue Parking Project, Series 2002A, 5.250%, 9/15/16 Maryland Stadium Authority, Lease Revenue Bonds, Montgomery County Conference Center Facilities, Series 2003: 1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ 1,550,981 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,703,381 1,210 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 751,422 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 306,901 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,200 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 1,101,552 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- 971,740 1,205 5.250%, 7/01/20 7/12 at 100.00 BBB- 1,151,751 1,275 5.250%, 7/01/21 7/12 at 100.00 BBB- 1,207,706 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA- 701,841 Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,420 Total Tax Obligation/Limited 22,840,734 ------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.2% (2.1% OF TOTAL INVESTMENTS) $ 2,210 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA $ 2,306,997 Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.5% (16.2% OF TOTAL INVESTMENTS) (4) 255 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 297,886 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) 104,941 100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 104,979 100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 101,436 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) 118,304 Development Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 310,996 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 BBB (4) 321,320 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) 830,879 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 999,452 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 5,344,590 Collateralized Mortgage Revenue Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 (Pre-refunded 11/20/12) 1,525 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/10 at 101.00 AAA 1,616,561 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 3,676,854 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,118,320 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 257,999 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) 2,212,200 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 27,255 George's Counties, Maryland, General Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17 (Pre-refunded 6/01/11) ------------------------------------------------------------------------------------------------------------------------------------ 15,955 Total U.S. Guaranteed 17,443,972 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.4% (0.9% OF TOTAL INVESTMENTS) 1,250 Maryland Energy Financing Administration, Revenue Bonds, AES 9/09 at 100.00 N/R 964,913 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.7% (3.8% OF TOTAL INVESTMENTS) 2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AA 2,573,135 Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured 345 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 356,837 2006C, 5.000%, 7/01/31 - AMBAC Insured
Nuveen Investments 51 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 660 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA $ 665,650 2007D, 5.000%, 7/01/32 - AMBAC Insured 430 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 499,529 Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ 4,005 Total Water and Sewer 4,095,151 ------------------------------------------------------------------------------------------------------------------------------------ $ 110,870 Total Investments (cost $111,725,039) - 151.2% 107,839,274 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (6.0)% (4,255,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.9% 2,747,662 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.1)% (5) (35,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 71,331,936 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 peri- odic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): 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. (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 32.5%. 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 notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 52 Nuveen Investments NPV | Nuveen Virginia Premium Income Municipal Fund | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.2% (2.2% OF TOTAL INVESTMENTS) $ 6,640 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 3,936,257 Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 7.2% (4.9% OF TOTAL INVESTMENTS) 1,000 Prince William County Industrial Development Authority, Virginia, 10/13 at 101.00 A3 972,480 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 503,695 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- 571,039 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 2,815 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 2,888,331 Revenue Bonds, Series 2005, 5.000%, 6/01/37 2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,162,866 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- 1,790,832 5.000%, 5/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,770 Total Education and Civic Organizations 8,889,243 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 27.8% (18.8% OF TOTAL INVESTMENTS) 2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,807,400 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- 600,119 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27 1,705 Fairfax County Industrial Development Authority, Virginia, 5/19 at 100.00 AA+ 1,803,106 Healthcare Revenue Bonds, Inova Health System, Series 2009, Trust 11733, 14.339%, 5/15/35 (IF) 4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,162,677 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,000 Fredericksburg Economic Development Authority, Virginia, Hospital No Opt. Call A3 1,016,900 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 1,173,600 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AA- 1,114,640 Hospital Revenue Bonds, Memorial Regional Medical Center, Series 1995, 6.375%, 8/15/18 - MBIA Insured 2,300 Harrisonburg Industrial Development Authority, Virginia, Hospital 8/16 at 100.00 A 1,957,024 Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 1,440 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A- 1,449,850 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- 1,747,725 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 A3 1,354,665 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 4,750 Medical College of Virginia Hospital Authority, General Revenue 7/09 at 101.00 AA- 4,529,647 Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured
Nuveen Investments 53 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 A+ $ 3,119,700 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - MBIA Insured 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 1,962,420 1,010 5.250%, 6/15/31 6/16 at 100.00 A3 955,753 1,695 5.250%, 6/15/37 6/16 at 100.00 A3 1,525,551 2,210 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 1,483,551 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- 1,437,854 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 35,285 Total Health Care 34,202,182 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS) 1,375 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 AAA 1,395,309 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 467,365 1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,272,990 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, Vistas 4/10 at 102.00 AAA 1,018,940 GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,375 Total Housing/Multifamily 4,154,604 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.1% (5.5% OF TOTAL INVESTMENTS) 325 Puerto Rico Housing Finance Authority, Mortgage-Backed Securities 6/13 at 100.00 AAA 295,363 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 1,008,790 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 1,342,125 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 2,560,777 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 1,237,771 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 3,538,899 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,805 Total Housing/Single Family 9,983,725 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.2% (2.8% OF TOTAL INVESTMENTS) 2,765 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 2,054,119 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+ 571,600 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 1,514,031 Mortgage-Backed Securities Program Assisted Living Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29 Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006: 100 5.000%, 10/01/27 10/11 at 103.00 BBB- 80,302 1,345 5.000%, 10/01/35 No Opt. Call BBB- 986,450 ------------------------------------------------------------------------------------------------------------------------------------ 6,505 Total Long-Term Care 5,206,502 ------------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.8% (0.6% OF TOTAL INVESTMENTS) $ 500 Bedford County Industrial Development Authority, Virginia, 8/09 at 101.00 B2 $ 355,750 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, 6/09 at 101.00 B2 688,330 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) ------------------------------------------------------------------------------------------------------------------------------------ 1,500 Total Materials 1,044,080 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 19.6% (13.2% 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+ 1,992,123 2,060 5.000%, 6/01/23 6/13 at 100.00 AA+ 2,163,391 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 AA- 1,407,181 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 110,507 Bonds, Series 2002A, 5.250%, 5/01/22 1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,276,506 5.000%, 6/01/21 1,300 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 AA 1,459,198 5.000%, 5/01/16 1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AA- 1,446,861 5.000%, 4/01/15 - MBIA Insured 1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,605,445 5.000%, 7/15/21 - FSA Insured 1,430 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,568,796 Series 2002A, 5.000%, 10/01/17 1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, 5.000%, No Opt. Call AA 1,307,702 12/01/15 2,000 Virginia Beach, Virginia, General Obligation Bonds, Series 2003B, 5/13 at 100.00 AAA 2,209,300 5.000%, 5/01/15 1,100 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 1,224,102 5.000%, 1/15/20 4,500 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 4,789,935 10/01/27 (UB) 1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,510,415 Bonds, Series 2001, 5.000%, 6/01/20 ------------------------------------------------------------------------------------------------------------------------------------ 22,235 Total Tax Obligation/General 24,071,462 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 27.8% (18.8% 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 222,229 260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 146,492 1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AA- 1,401,694 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 918,507 1,375 6.375%, 7/15/17 No Opt. Call N/R 1,313,675 1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AA- 1,078,210 Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 - MBIA Insured 1,000 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 1,109,940 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: 2,210 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,469,874 1,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 1,234,760 1,660 Front Royal and Warren County Industrial Development Authority, 4/14 at 100.00 AAA 1,776,748 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 1,379,741 Revenue Bonds, County Government Projects, Series 2005, 5.000%, 7/15/19
Nuveen Investments 55 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 445 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- $ 451,221 Public Facility Lease Revenue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 1,185 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 AAA 1,148,656 Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 1,835,920 Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 387,850 Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured 5,875 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 1,500,945 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- 235,985 320 5.250%, 7/01/36 7/12 at 100.00 BBB- 274,010 1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 BBB 1,113,807 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- 1,646,496 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, Public 4/18 at 100.00 AAA 2,521,175 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+ 1,488,298 Bonds, Series 2005A, 5.000%, 5/01/22 850 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 1,035,819 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-3B, 12.784%, 2/01/27 (IF) 850 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 1,019,006 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-4B, 12.710%, 2/01/28 (IF) 1,625 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 1,795,918 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 98,800 550 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 553,256 1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,828,949 Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 2,000 Virginia Transportation Board, Transportation Revenue Bonds, U.S. 5/14 at 100.00 AA+ 2,253,400 Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 ------------------------------------------------------------------------------------------------------------------------------------ 41,915 Total Tax Obligation/Limited 34,241,381 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 10.5% (7.1% OF TOTAL INVESTMENTS) 2,500 Metropolitan Washington D.C. Airports Authority, System Revenue 10/17 at 100.00 AA- 2,225,300 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- 3,883,999 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- 1,019,710 5.000%, 2/01/23 - MBIA Insured 2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AA- 2,676,275 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- 1,078,812 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 2,066,480 Bonds, Series 2001A, 5.250%, 8/01/23 ------------------------------------------------------------------------------------------------------------------------------------ 13,260 Total Transportation 12,950,576 ------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.4% (13.1% OF TOTAL INVESTMENTS) (5) $ 3,500 Alexandria Industrial Development Authority, Virginia, Fixed Rate 10/10 at 101.00 BBB (5) $ 3,778,495 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 839,910 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) 925 Fairfax County Water Authority, Virginia, Water Revenue Refunding 4/12 at 100.00 AAA 1,028,748 Bonds, Series 2002, 5.375%, 4/01/19 (Pre-refunded 4/01/12) 600 Greater Richmond Convention Center Authority, Virginia, Hotel Tax 6/10 at 101.00 AAA 640,254 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, Revenue 11/12 at 100.00 A3 (5) 68,441 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) 429,131 800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 917,832 815 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/12 at 100.00 AAA 906,133 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 2,626,325 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) 809,566 880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB- (5) 969,276 385 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 399,353 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) 505,186 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: 1,290 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,352,926 3,850 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 4,306,917 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (5) 2,175,380 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) 2,000 Virginia Public School Authority, School Financing Bonds, 1997 8/10 at 101.00 AA+ (5) 2,123,160 Resolution, Series 2000B, 5.000%, 8/01/18 (Pre-refunded 8/01/10) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,925 Total U.S. Guaranteed 23,877,033 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.3% (4.9% OF TOTAL INVESTMENTS) Bristol, Virginia, Utility System Revenue Refunding Bonds, Series 2003: 1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AA- 1,842,849 1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AA- 1,941,984 2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AA- 2,797,339 2,500 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 2,349,975 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 8,780 Total Utilities 8,932,147 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.5% (5.8% 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 111,484 800 5.000%, 4/01/27 4/12 at 100.00 AAA 812,888 1,000 Loudoun County Sanitation Authority, Virginia, Water and Sewerage 1/15 at 100.00 AAA 1,053,190 System Revenue Bonds, Series 2004, 5.000%, 1/01/26
Nuveen Investments 57 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: $ 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AA+ $ 1,340,104 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AA+ 1,429,266 2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,357,550 Series 2000, 6.000%, 9/01/24 1,800 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AA 1,834,128 Series 2005, 5.000%, 10/01/30 1,515 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 Aaa 1,566,222 Series 2007, Trust 3036, 13.070%, 10/01/29 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 10,160 Total Water and Sewer 10,504,832 ------------------------------------------------------------------------------------------------------------------------------------ $ 192,155 Total Investments (cost $185,986,511) - 147.8% 181,994,024 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (3.8)% (4,630,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 7.8% 9,555,150 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.8)% (6) (63,800,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 123,119,174 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 peri- odic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): 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. (4) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bond's 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 35.1%. 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 notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 58 Nuveen Investments NGB | Nuveen Virginia Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.2% (2.1% OF TOTAL INVESTMENTS) $ 1,660 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 984,065 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 325,597 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------------ 2,375 Total Consumer Staples 1,309,662 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.4% (4.3% OF TOTAL INVESTMENTS) 500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 419,160 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 486,240 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 850 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 856,282 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 8/09 at 101.00 BBB- 137,334 320 5.375%, 2/01/29 8/09 at 101.00 BBB- 233,514 500 Virginia College Building Authority, Educational Facilities 7/09 at 100.50 BBB- 481,320 Revenue Refunding Bonds, Marymount University, Series 1998, 5.100%, 7/01/18 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ 2,830 Total Education and Civic Organizations 2,613,850 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 19.6% (13.2% OF TOTAL INVESTMENTS) 250 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 214,043 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/37 565 Fairfax County Industrial Development Authority, Virginia, 5/19 at 100.00 AA+ 597,510 Healthcare Revenue Bonds, Inova Health System, Series 2009, Trust 11733, 14.339%, 5/15/35 (IF) 100 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 106,447 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+ 908,920 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 500 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 508,450 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 469,440 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 820 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 A 697,722 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 480 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A- 483,283 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 A3 474,133 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 N/R 665,000 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured
Nuveen Investments 59 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
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: $ 750 5.250%, 6/15/25 6/16 at 100.00 A3 $ 745,163 360 5.250%, 6/15/31 6/16 at 100.00 A3 340,664 605 5.250%, 6/15/37 6/16 at 100.00 A3 544,518 785 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 526,963 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 715 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 AA- 721,449 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 8,755 Total Health Care 8,003,705 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.0% (3.4% OF TOTAL INVESTMENTS) 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 1,031,270 Multifamily Housing Mortgage Revenue Bonds, Arlington View Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Mandatory put 11/01/19) (Alternative Minimum Tax) 1,000 Virginia Housing Development Authority, Rental Housing Bonds, 10/10 at 100.00 AA+ 1,010,830 Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Housing/Multifamily 2,042,100 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.2% (6.8% OF TOTAL INVESTMENTS) 1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 1,008,790 Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 600 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 536,850 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 897,206 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 443,381 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 1,270,374 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,440 Total Housing/Single Family 4,156,601 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 10.5% (7.1% OF TOTAL INVESTMENTS) 700 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 519,316 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, Mortgage 12/15 at 100.00 N/R 226,940 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 746,615 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+ 395,210 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 540 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 396,047 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 499,926 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 519,331 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 530 Roanoke Industrial Development Authority, Virginia, Residential 12/16 at 100.00 N/R 334,298 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 255,448 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 350 Virginia Beach Development Authority, Virginia, Residential Care 11/15 at 100.00 N/R $ 288,708 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 134,495 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 ------------------------------------------------------------------------------------------------------------------------------------ 5,850 Total Long-Term Care 4,316,334 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.6% (0.4% OF TOTAL INVESTMENTS) 100 Bedford County Industrial Development Authority, Virginia, 8/09 at 101.00 B2 71,150 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 15,260 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, 6/09 at 101.00 B2 151,433 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) ------------------------------------------------------------------------------------------------------------------------------------ 340 Total Materials 237,843 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 13.7% (9.2% OF TOTAL INVESTMENTS) 700 Loudoun County, Virginia, General Obligation Bonds, Series 2006, 12/16 at 100.00 AAA 758,254 5.000%, 12/01/25 500 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 579,945 Bonds, Series 2005B, 5.000%, 6/01/18 845 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 AA 948,479 5.000%, 5/01/16 620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 690,717 5.000%, 7/15/17 - FSA Insured 400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 460,864 5.000%, 12/01/15 400 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 445,128 5.000%, 1/15/20 1,600 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 1,715,952 10/01/26 (UB) ------------------------------------------------------------------------------------------------------------------------------------ 5,065 Total Tax Obligation/General 5,599,339 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 20.2% (13.6% OF TOTAL INVESTMENTS) 100 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 79,831 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, Revenue 6/13 at 102.00 N/R 386,455 Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 79,604 95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 53,526 500 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 554,970 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- 162,237 Public Facility Lease Revenue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 580 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aa2 607,318 County Facilities, Series 2005, 5.000%, 6/01/20 - AMBAC Insured 700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 642,572 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 694,740 Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 BBB 1,003,460 Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
Nuveen Investments 61 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AA- $ 617,436 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, Public 4/18 at 100.00 AAA 897,538 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+ 977,270 Loan Note, Series 1999A, 6.375%, 10/01/19 195 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 207,299 Bonds, Series 2005A, 5.000%, 5/01/22 280 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 341,211 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-3B, 12.784%, 2/01/27 (IF) 280 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 335,672 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-4B, 12.710%, 2/01/28 (IF) 345 Virginia Gateway Community Development Authority, Prince William 3/13 at 102.00 N/R 248,224 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+ 381,287 Resolution, Series 2005C, 5.000%, 8/01/17 ------------------------------------------------------------------------------------------------------------------------------------ 10,650 Total Tax Obligation/Limited 8,270,650 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 26.3% (17.7% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,085,010 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- 1,077,800 Resolution Revenue Refunding Bonds, Series 1998, 5.500%, 7/01/25 - MBIA Insured 3,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AA- 2,982,627 Revenue Bonds, Series 2001A, 5.500%, 10/01/27 - MBIA Insured (Alternative Minimum Tax) 250 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AA- 255,860 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- 1,456,500 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AA- 509,855 5.000%, 2/01/23 - MBIA Insured 500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AA- 535,255 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 455 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA- 389,571 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 1,265,719 Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,181,375 Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 10,680 Total Transportation 10,739,572 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 28.1% (18.9% OF TOTAL INVESTMENTS) (5) 500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) 559,515 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 1,129,520 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 N/R (5) 32,124 850 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (5) 916,742 20 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A3 (5) 22,814 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 Bonds, 1/11 at 101.00 AA (5) 2,491,520 Series 2000, 5.125%, 1/15/21 (Pre-refunded 1/15/11) - FGIC Insured
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (5) (continued) $ 425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB (5) $ 486,349 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 1,575,795 1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,575,795 155 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 160,778 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) 184,756 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) 1,004,880 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 811,043 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) 548,215 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 (Pre-refunded 2/01/12) ------------------------------------------------------------------------------------------------------------------------------------ 10,605 Total U.S. Guaranteed 11,499,846 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.3% (1.5% OF TOTAL INVESTMENTS) 1,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 939,990 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.6% (1.8% OF TOTAL INVESTMENTS) 500 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AA 509,480 Series 2005, 5.000%, 10/01/30 545 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 Aaa 563,426 Series 2007, Trust 3036, 13.070%, 10/01/29 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 1,045 Total Water and Sewer 1,072,906 ------------------------------------------------------------------------------------------------------------------------------------ $ 65,635 Total Investments (cost $64,170,904) - 148.7% 60,802,398 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (4.0)% (1,640,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.0% 1,218,256 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.7)% (6) (19,500,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 40,880,654 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 peri- odic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): 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. (4) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bond's 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 32.1%. 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 notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 63 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.2% (2.2% OF TOTAL INVESTMENTS) $ 3,100 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 1,837,711 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 651,193 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 ------------------------------------------------------------------------------------------------------------------------------------ 4,530 Total Consumer Staples 2,488,904 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 6.7% (4.5% OF TOTAL INVESTMENTS) 1,000 Fairfax County Economic Development Authority, Virginia, Revenue 9/09 at 101.00 A3 1,003,340 Bonds, National Wildlife Federation, Series 1999, 5.375%, 9/01/29 - MBIA Insured 1,000 Prince William County Industrial Development Authority, Virginia, 10/13 at 101.00 A3 972,480 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- 1,223,655 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- 1,961,760 Educational Facilities First Mortgage Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,500 Total Education and Civic Organizations 5,161,235 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 27.5% (18.4% OF TOTAL INVESTMENTS) 1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,355,550 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- 415,467 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27 1,070 Fairfax County Industrial Development Authority, Virginia, 5/19 at 100.00 AA+ 1,131,568 Healthcare Revenue Bonds, Inova Health System, Series 2009, Trust 11733, 14.339%, 5/15/35 (IF) 3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 BBB+ 2,726,760 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 1,000 Fredericksburg Economic Development Authority, Virginia, Hospital No Opt. Call A3 1,016,900 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 633,744 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,500 Harrisonburg Industrial Development Authority, Virginia, Hospital 8/16 at 100.00 A 1,276,320 Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 960 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A- 966,566 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 A3 1,043,092 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 997,500 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured 1,000 Prince William County Industrial Development Authority, Virginia, 10/09 at 101.00 Aa3 1,009,540 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 A+ 4,053,942 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/20 - MBIA Insured
64 Nuveen Investments
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: $ 1,250 5.250%, 6/15/25 6/16 at 100.00 A3 $ 1,241,938 655 5.250%, 6/15/31 6/16 at 100.00 A3 619,820 1,095 5.250%, 6/15/37 6/16 at 100.00 A3 985,533 1,430 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 959,945 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 715 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 AA- 721,449 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 ------------------------------------------------------------------------------------------------------------------------------------ 22,570 Total Health Care 21,155,634 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 14.5% (9.7% OF TOTAL INVESTMENTS) 7,485 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 7,550,790 Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 447,375 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 803,628 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 2,359,266 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 11,455 Total Housing/Single Family 11,161,059 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 10.0% (6.6% OF TOTAL INVESTMENTS) 1,300 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 964,444 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, Mortgage 12/15 at 100.00 N/R 421,460 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 1,348,364 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+ 395,210 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 855 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 627,074 Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 1,300 Industrial Development Authority of the County of Prince William, 1/17 at 100.00 N/R 928,434 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 1,078,610 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 970 Roanoke Industrial Development Authority, Virginia, Residential 12/16 at 100.00 N/R 611,828 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 474,403 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 650 Virginia Beach Development Authority, Virginia, Residential Care 11/15 at 100.00 N/R 536,172 Facility Mortgage Revenue Bonds, Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22 325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 249,776 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 ------------------------------------------------------------------------------------------------------------------------------------ 10,365 Total Long-Term Care 7,635,775 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.6% (0.4% OF TOTAL INVESTMENTS) 165 Bedford County Industrial Development Authority, Virginia, 8/09 at 101.00 B2 117,398 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (4)
Nuveen Investments 65 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS (continued) $ 460 Goochland County Industrial Development Authority, Virginia, 6/09 at 101.00 B2 $ 316,632 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (4) ------------------------------------------------------------------------------------------------------------------------------------ 625 Total Materials 434,030 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.1% (15.4% OF TOTAL INVESTMENTS) 1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA+ 1,913,660 5.500%, 12/01/16 1,000 Loudoun County, Virginia, General Obligation Bonds, Series 2006, 12/16 at 100.00 AAA 1,083,220 5.000%, 12/01/25 95 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 99,983 Bonds, Series 2002A, 5.250%, 5/01/22 Powhatan County, Virginia, General Obligation Bonds, Series 2001: 660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 A+ 673,550 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 A+ 1,003,360 Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002A: 1,950 5.000%, 10/01/18 10/12 at 101.00 AA 2,105,493 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,629,167 1,280 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,331,226 Series 2002B, 5.000%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 600 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 667,692 5.000%, 1/15/20 2,900 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 3,110,163 10/01/26 (UB) 1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,589,910 Bonds, Series 2001, 5.000%, 6/01/19 1,420 Virginia Beach, Virginia, General Obligation Refunding and Public 3/12 at 100.00 AAA 1,490,659 Improvement Bonds, Series 2002, 5.000%, 3/01/21 ------------------------------------------------------------------------------------------------------------------------------------ 16,590 Total Tax Obligation/General 17,698,083 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.2% (14.8% OF TOTAL INVESTMENTS) 124 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 98,990 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Broad Street Community Development Authority, Virginia, Revenue 6/13 at 102.00 N/R 772,910 Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 139,308 165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 92,966 800 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 887,952 Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 1,800 Loudoun County Industrial Development Authority, Virginia, Lease 3/13 at 100.00 AA+ 1,915,686 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- 288,984 Public Facility Lease Revenue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 1,300 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 1,193,348 Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 2,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 463,160 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- 356,204 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 BBB 1,003,460 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- 1,029,060 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - MBIA Insured
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,610 Stafford County Economic Development Authority, Virginia, Public 4/18 at 100.00 AAA $ 1,623,637 Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC Insured (UB) 700 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 744,149 Bonds, Series 2005A, 5.000%, 5/01/22 535 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 651,956 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-3B, 12.784%, 2/01/27 (IF) 535 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 641,374 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-4B, 12.710%, 2/01/28 (IF) 673 Virginia Gateway Community Development Authority, Prince William 3/13 at 102.00 N/R 484,217 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+ 2,702,433 Resolution, Series 2001B, 5.000%, 8/01/19 570 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 629,953 Resolution, Series 2005C, 5.000%, 8/01/17 1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,286,973 Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26 ------------------------------------------------------------------------------------------------------------------------------------ 18,512 Total Tax Obligation/Limited 17,006,720 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.2% (2.8% OF TOTAL INVESTMENTS) 1,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/12 at 100.00 AA- 958,360 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- 1,529,565 5.000%, 2/01/23 - MBIA Insured 825 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA- 706,365 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 3,325 Total Transportation 3,194,290 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 17.4% (11.6% OF TOTAL INVESTMENTS) (5) 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) 184,640 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 1,119,880 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM) 40 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A3 (5) 45,627 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) 286,088 600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 688,374 1,000 Newport News, Virginia, General Obligation Bonds, Series 2003B, 11/13 at 100.00 AA (5) 1,144,170 5.000%, 11/01/22 (Pre-refunded 11/01/13) 2,750 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,888,957 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) 1,211,595 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 499,531 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) 505,186 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) 1,209,020 6.250%, 2/01/25 (Pre-refunded 2/01/14) - AMBAC Insured
Nuveen Investments 67 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS May 31, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (5) (continued) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: $ 490 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA $ 513,902 2,700 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 3,020,435 ------------------------------------------------------------------------------------------------------------------------------------ 12,010 Total U.S. Guaranteed 13,317,405 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.4% (1.6% OF TOTAL INVESTMENTS) 2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 1,879,980 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 17.9% (12.0% OF TOTAL INVESTMENTS) 805 Fairfax County Water Authority, Virginia, Water Revenue Refunding 4/12 at 100.00 AAA 817,969 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 1,170,910 3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,521,189 Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,080 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AA+ 1,126,991 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AA+ 1,235,851 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AA+ 1,557,284 1,000 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AA 1,018,960 Series 2005, 5.000%, 10/01/30 2,250 Virginia Resources Authority, Water and Sewerage System Revenue 5/11 at 101.00 AA 2,283,503 Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 990 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 Aaa 1,023,473 Series 2007, Trust 3036, 13.070%, 10/01/29 (IF) ------------------------------------------------------------------------------------------------------------------------------------ 12,840 Total Water and Sewer 13,756,130 ------------------------------------------------------------------------------------------------------------------------------------ $ 120,322 Total Investments (cost $119,426,244) - 149.7% 114,889,245 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (3.9)% (2,980,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 7.9% 5,992,087 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.7)% (6) (41,175,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 76,726,332 =====================================================================================================================
(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 (not covered by the report of independent registered public accounting firm): 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 (not covered by the report of independent registered public accounting firm): 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. (4) The issuer has received a formal adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bond's 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 35.8%. 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 notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 68 NUVEEN INVESTMENTS | Statement of ASSETS & LIABILITIES May 31, 2009
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $215,404,337, $86,511,674, $87,970,712 and $111,725,039, respectively) $ 212,652,188 $ 82,189,325 $ 84,204,362 $ 107,839,274 Cash 6,831,099 436,252 154,690 1,264,063 Receivables: Interest 4,042,665 1,605,881 1,589,729 1,853,330 Investments sold 2,560,000 370,000 -- -- Other assets 27,957 16,325 13,038 14,990 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 226,113,909 84,617,783 85,961,819 110,971,657 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Floating rate obligations 9,962,000 3,973,000 3,840,000 4,255,000 Payables: Preferred shares noticed for redemption, at liquidation value -- -- -- -- Common share dividends 568,597 234,165 236,452 292,318 Preferred share dividends 3,537 2,463 2,535 2,780 Accrued expenses: Management fees 117,310 37,225 34,469 43,968 Other 83,021 39,096 37,949 45,655 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 10,734,465 4,285,949 4,151,405 4,639,721 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 70,875,000 25,825,000 26,625,000 35,000,000 ==================================================================================================================================== Net assets applicable to Common shares $ 144,504,444 $ 54,506,834 $ 55,185,414 $ 71,331,936 ==================================================================================================================================== Common shares outstanding 10,640,076 4,190,350 4,195,443 5,363,909 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.58 $ 13.01 $ 13.15 $ 13.30 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 106,401 $ 41,904 $ 41,954 $ 53,639 Paid-in surplus 147,794,543 59,464,915 59,530,455 75,721,849 Undistributed (Over-distribution of) net investment income 1,235,082 295,908 287,921 492,853 Accumulated net realized gain (loss) from investments and derivative transactions (1,879,433) (973,544) (908,566) (1,050,640) Net unrealized appreciation (depreciation) of investments (2,752,149) (4,322,349) (3,766,350) (3,885,765) ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 144,504,444 $ 54,506,834 $ 55,185,414 $ 71,331,936 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 69 | Statement of ASSETS & LIABILITIES (continued) May 31, 2009
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $185,986,511, $64,170,904 and $119,426,244, respectively) $ 181,994,024 $ 60,802,398 $ 114,889,245 Cash 6,610,119 2,593,498 4,460,912 Receivables: Interest 3,030,177 1,007,282 1,798,810 Investments sold 535,000 95,000 150,050 Other assets 25,643 14,125 17,481 ----------------------------------------------------------------------------------------------------------------------------------- Total assets 192,194,963 64,512,303 121,316,498 ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations 4,630,000 1,640,000 2,980,000 Payables: Preferred shares noticed for redemption, at liquidation value -- 2,250,000 -- Common share dividends 476,195 185,935 340,880 Preferred share dividends 3,402 1,342 3,925 Accrued expenses: Management fees 102,223 29,105 49,781 Other 63,969 25,267 40,580 ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 5,275,789 4,131,649 3,415,166 ----------------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 63,800,000 19,500,000 41,175,000 ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 123,119,174 $ 40,880,654 $ 76,726,332 =================================================================================================================================== Common shares outstanding 8,947,012 3,135,986 5,740,879 =================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.76 $ 13.04 $ 13.36 =================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ----------------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 89,470 $ 31,360 $ 57,409 Paid-in surplus 125,966,824 44,478,848 81,483,803 Undistributed (Over-distribution of) net investment income 1,141,646 266,298 396,944 Accumulated net realized gain (loss) from investments and derivative transactions (86,279) (527,346) (674,825) Net unrealized appreciation (depreciation) of investments (3,992,487) (3,368,506) (4,536,999) ----------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 123,119,174 $ 40,880,654 $ 76,726,332 =================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited ===================================================================================================================================
See accompanying notes to financial statements. 70 Nuveen Investments | Statement of OPERATIONS Year Ended May 31, 2009
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 11,292,985 $ 4,622,071 $ 4,582,197 $ 5,513,124 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,387,394 537,109 544,082 687,729 Preferred shares - auction fees 189,860 74,637 75,103 93,257 Preferred shares - dividend disbursing agent fees 19,996 10,000 9,989 9,989 Shareholders' servicing agent fees and expenses 18,279 1,548 1,006 1,186 Interest expense on floating rate obligations 69,173 28,174 27,813 33,308 Custodian's fees and expenses 46,437 25,454 25,129 33,050 Trustees' fees and expenses 6,761 2,583 2,526 3,344 Professional fees 24,006 15,544 15,525 17,299 Shareholders' reports - printing and mailing expenses 49,549 23,655 25,372 30,654 Stock exchange listing fees 9,218 591 592 758 Investor relations expense 26,001 10,089 10,365 12,918 Other expenses 19,257 16,606 16,560 17,158 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,865,931 745,990 754,062 940,650 Custodian fee credit (22,505) (2,288) (2,833) (1,436) Expense reimbursement -- (111,743) (141,615) (200,603) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,843,426 631,959 609,614 738,611 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 9,449,559 3,990,112 3,972,583 4,774,513 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (1,683,796) (792,574) (904,510) (1,006,050) Change in net unrealized appreciation (depreciation) of investments (5,452,149) (4,198,728) (4,008,113) (3,207,766) ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (7,135,945) (4,991,302) (4,912,623) (4,213,816) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,728,826) (710,514) (687,710) (858,983) From accumulated net realized gains (112,500) -- (49,933) (32,339) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,841,326) (710,514) (737,643) (891,322) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 472,288 $ (1,711,704) $ (1,677,683) $ (330,625) ====================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 71 | Statement of OPERATIONS (continued) Year Ended May 31, 2009
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) --------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 9,667,256 $ 3,419,441 $ 6,395,902 --------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 1,167,367 405,538 749,131 Preferred shares - auction fees 154,607 56,435 101,174 Preferred shares - dividend disbursing agent fees 19,991 10,000 9,984 Shareholders' servicing agent fees and expenses 15,681 1,003 1,282 Interest expense on floating rate obligations 90,316 32,067 58,216 Custodian's fees and expenses 39,291 18,689 31,933 Trustees' fees and expenses 5,697 1,948 3,456 Professional fees 21,236 13,855 17,941 Shareholders' reports - printing and mailing expenses 44,436 17,689 28,667 Stock exchange listing fees 9,241 442 809 Investor relations expense 21,976 7,453 13,277 Other expenses 18,934 15,420 17,327 --------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,608,773 580,539 1,033,197 Custodian fee credit (18,554) (6,619) (3,628) Expense reimbursement -- (84,277) (203,959) --------------------------------------------------------------------------------------------------------------------- Net expenses 1,590,219 489,643 825,610 --------------------------------------------------------------------------------------------------------------------- Net investment income 8,077,037 2,929,798 5,570,292 --------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (88,740) (527,444) (661,202) Change in net unrealized appreciation (depreciation) of investments (5,786,157) (3,315,707) (5,657,242) --------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (5,874,897) (3,843,151) (6,318,444) --------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,346,825) (533,312) (940,842) From accumulated net realized gains (146,513) (12,768) (13,944) --------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,493,338) (546,080) (954,786) --------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 708,802 $(1,459,433) $(1,702,938) =====================================================================================================================
See accompanying notes to financial statements. 72 Nuveen Investments | Statement of CHANGES in NET ASSETS
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) ---------------------------- --------------------------- --------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 9,449,559 $ 9,368,257 $ 3,990,112 $ 3,995,294 $ 3,972,583 $ 3,958,121 Net realized gain (loss) from: Investments (1,683,796) (16,478) (792,574) 306,804 (904,510) 268,320 Forward swaps -- 363,696 -- 115,883 -- 69,275 Change in net unrealized appreciation (depreciation) of: Investments (5,452,149) (4,721,520) (4,198,728) (2,733,280) (4,008,113) (2,314,193) Forward swaps -- -- -- 39,197 -- -- Distributions to Preferred Shareholders: From net investment income (1,728,826) (2,550,899) (710,514) (1,005,532) (687,710) (1,008,770) From accumulated net realized gains (112,500) -- -- -- (49,933) (42,112) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 472,288 2,443,056 (1,711,704) 718,366 (1,677,683) 930,641 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (6,676,649) (6,484,065) (2,946,556) (2,936,953) (2,950,782) (2,949,879) From accumulated net realized gains (285,154) -- -- -- (145,966) (137,096) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (6,961,803) (6,484,065) (2,946,556) (2,936,953) (3,096,748) (3,086,975) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 30,834 65,451 56,801 39,025 12,749 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 30,834 65,451 56,801 39,025 12,749 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (6,489,515) (4,010,175) (4,592,809) (2,161,786) (4,735,406) (2,143,585) Net assets applicable to Common shares at the beginning of year 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 year $144,504,444 $ 150,993,959 $ 54,506,834 $ 59,099,643 $ 55,185,414 $ 59,920,820 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 1,235,082 $ 199,876 $ 295,908 $ (27,384) $ 287,921 $ (42,143) ====================================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 73 | Statement of CHANGES in NET ASSETS (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) --------------------------- ----------------------------- --------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,774,513 $ 4,770,568 $ 8,077,037 $ 7,845,477 $ 2,929,798 $ 2,980,096 Net realized gain (loss) from: Investments (1,006,050) 203,469 (88,740) 831,194 (527,444) 60,379 Forward swaps -- -- -- 109,060 -- -- Change in net unrealized appreciation (depreciation) of: Investments (3,207,766) (2,833,522) (5,786,157) (4,632,677) (3,315,707) (2,198,596) Forward swaps -- -- -- 39,197 -- -- Distributions to Preferred Shareholders: From net investment income (858,983) (1,213,876) (1,346,825) (1,939,555) (533,312) (678,177) From accumulated net realized gains (32,339) -- (146,513) (258,821) (12,768) (97,853) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (330,625) 926,639 708,802 1,993,875 (1,459,433) 65,849 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,451,676) (3,379,332) (5,849,607) (5,687,847) (2,167,450) (2,183,084) From accumulated net realized gains (90,650) -- (428,050) (770,964) (41,689) (306,068) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,542,326) (3,379,332) (6,277,657) (6,458,811) (2,209,139) (2,489,152) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 17,895 175,724 77,205 37,122 27,521 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 17,895 175,724 77,205 37,122 27,521 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,872,951) (2,434,798) (5,393,131) (4,387,731) (3,631,450) (2,395,782) Net assets applicable to Common shares at the beginning of year 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 year $ 71,331,936 $ 75,204,887 $ 123,119,174 $ 128,512,305 $ 40,880,654 $ 44,512,104 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 492,853 $ 38,423 $ 1,141,646 $ 263,247 $ 266,298 $ 37,356 ====================================================================================================================================
See accompanying notes to financial statements. 74 Nuveen Investments
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ---------------------------- YEAR YEAR ENDED ENDED 5/31/09 5/31/08 ---------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 5,570,292 $ 5,485,024 Net realized gain (loss) from: Investments (661,202) 66,158 Forward swaps -- -- Change in net unrealized appreciation (depreciation) of: Investments (5,657,242) (3,628,537) Forward swaps -- -- Distributions to Preferred Shareholders: From net investment income (940,842) (1,366,380) From accumulated net realized gains (13,944) (102,026) ---------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (1,702,938) 454,239 ---------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,123,820) (4,107,601) From accumulated net realized gains (41,880) (326,601) ---------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,165,700) (4,434,202) ---------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 123,400 69,440 ---------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions 123,400 69,440 ---------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (5,745,238) (3,910,523) Net assets applicable to Common shares at the beginning of year 82,471,570 86,382,093 ---------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of year $ 76,726,332 $ 82,471,570 ======================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 396,944 $ (107,261) ========================================================================================
See accompanying notes to financial statements. Nuveen Investments 75 | Notes to FINANCIAL STATEMENTS 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 NYSE Amex (formerly, 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 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 US 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. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Trustees. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. 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 May 31, 2009, 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. 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. 76 Nuveen Investments For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. 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). Furthermore, management of the Funds is 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 US 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 May 31, 2009, the number of Preferred shares outstanding (excluding Preferred shares noticed for redemption), 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 -- 1,033 -- -- Series T -- -- -- 1,400 Series W 1,258 -- -- -- Series TH 1,577 -- -- -- Series F -- -- 1,065 -- -------------------------------------------------------------------------------- Total 2,835 1,033 1,065 1,400 ================================================================================ VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) -------------------------------------------------------------------------------- Number of shares: Series M -- -- 1,647 Series T 832 -- -- Series W -- 780 -- Series TH 1,720 -- -- Series F -- -- -- -------------------------------------------------------------------------------- Total 2,552 780 1,647 ================================================================================ 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. Nuveen Investments 77 | Notes to FINANCIAL STATEMENTS (continued) 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. As of May 31, 2009, the aggregate amount of outstanding Preferred shares redeemed and/or noticed for redemption by each Fund is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------ Preferred shares redeemed and/or noticed for redemption, at liquidation value $ 8,225,000 $ 6,175,000 $ 5,375,000 $ 4,000,000 ======================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------ Preferred shares redeemed and/or noticed for redemption, at liquidation value $ -- $ 4,500,000 $ 825,000 ======================================================================================================
Effective May 1, 2009, auction participation fees for Nuveen Investments, Inc. ("Nuveen") Preferred shares with respect to auctions that have failed have been reduced from 25 bps (annualized) to 15 bps (annualized). All auction participants have signed new agreements incorporating this change. 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 "(IF) - Inverse floating 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 "(UB) - Underlying bond of an inverse floating rate trust," with the Fund accounting for the short-term 78 Nuveen Investments 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 recognized as "Interest expense on floating rate obligations" on the Statement of Operations. During the fiscal year ended May 31, 2009, 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 May 31, 2009, the Funds were not invested in externally-deposited Recourse Trusts.
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------ Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- ======================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------ Maximum exposure to Recourse Trusts $ -- $ -- $ -- ======================================================================================================
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended May 31, 2009, 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 $ 4,168,688 $ 1,690,562 $ 1,661,205 $ 1,958,381 Average annual interest rate and fees 1.66% 1.67% 1.67% 1.70% ======================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------ Average floating rate obligations $ 5,047,205 $ 1,791,096 $ 3,252,452 Average annual interest rate and fees 1.79% 1.79% 1.79% ======================================================================================================
Swap Contracts Each Fund is authorized to enter into swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality). Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. 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. The Funds did not invest in forward interest rate swap transactions during the fiscal year ended May 31, 2009. Nuveen Investments 79 | Notes to FINANCIAL STATEMENTS (continued) Market and Counterparty Credit Risk In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, 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 valuations fluctuate, either up or down, by at least the predetermined threshold amount. 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 US 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. 80 Nuveen Investments 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 May 31, 2009:
MARYLAND PREMIUM INCOME (NMY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 212,652,188 $ -- $ 212,652,188 ===================================================================================================== MARYLAND DIVIDEND ADVANTAGE (NFM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 82,189,325 $ -- $ 82,189,325 ===================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 84,204,362 $ -- $ 84,204,362 ===================================================================================================== MARYLAND DIVIDEND ADVANTAGE 3 (NWI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 107,839,274 $ -- $ 107,839,274 ===================================================================================================== VIRGINIA PREMIUM INCOME (NPV) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 181,944,024 $ -- $ 181,944,024 ===================================================================================================== VIRGINIA DIVIDEND ADVANTAGE (NGB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 60,802,398 $ -- $ 60,802,398 ===================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ----------------------------------------------------------------------------------------------------- Investments $ -- $ 114,889,245 $ -- $ 114,889,245 =====================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES During the current fiscal period, the Funds adopted the provisions of Statement of Financial Accounting Standards No. 161 (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 better understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund's financial position, results of operations and cash flows, if any. The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations. Even though the Funds' investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for SFAS No. 161 disclosure purposes. The Funds did not invest in derivative instruments during the fiscal year ended May 31, 2009. 4. FUND SHARES Common Shares On July 30, 2008, the Funds' Board of Trustees approved an open-market share repurchase program under which each Fund may repurchase an aggregate of up to approximately 10% of its outstanding Common shares. Since the inception of this program, the Funds have not repurchased any of their outstanding Common shares. Transactions in Common shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) -------------------- ------------------ ----------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 2,122 5,006 3,983 2,892 863 =========================================================================================================
Nuveen Investments 81 Notes to FINANCIAL STATEMENTS (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) -------------------- ------------------ ----------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/09 5/31/08 5/31/09 5/31/08 5/31/09 5/31/08 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 1,239 13,477 5,228 2,924 1,821 =========================================================================================================
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------- YEAR YEAR ENDED ENDED 5/31/09 5/31/08 --------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 9,369 4,680 =========================================================================================================
Preferred Shares Transactions in Preferred shares were as follows:
MARYLAND MARYLAND PREMIUM INCOME (NMY) DIVIDEND ADVANTAGE (NFM) --------------------------------------------- -------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/09 5/31/08 5/31/09 5/31/08 --------------------------------------------- -------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ------------------------------------------------------------------------------------------------------------------------------ Preferred shares redeemed and/or noticed for redemption: Series M -- $ -- -- $ -- 247 $ 6,175,000 -- $ -- Series W 146 3,650,000 -- -- -- -- -- -- Series TH 183 4,575,000 -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Total 329 $8,225,000 -- $ -- 247 $ 6,175,000 -- $ -- ==============================================================================================================================
MARYLAND MARYLAND DIVIDEND ADVANTAGE 2 (NZR) DIVIDEND ADVANTAGE 3 (NWI) ------------------------------------------- -------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/09 5/31/08 5/31/09 5/31/08 ------------------------------------------- -------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ---------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed and/ or noticed for redemption: Series T -- $ -- -- $ -- 160 $ 4,000,000 -- $ -- Series F 215 5,375,000 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total 215 $ 5,375,000 -- $ -- 160 $ 4,000,000 -- $ -- ============================================================================================================================
82 Nuveen Investments
VIRGINIA VIRGINIA DIVIDEND ADVANTAGE (NGB) DIVIDEND ADVANTAGE 2 (NNB) -------------------------------------------- -------------------------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 5/31/09 5/31/08 5/31/09 5/31/08 -------------------------------------------- -------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT ----------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed and/or noticed for redemption: Series M -- $ -- -- $ -- 33 $ 825,000 -- $ -- Series W 180 4,500,000 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total 180 $ 4,500,000 -- $ -- 33 $ 825,000 -- $ -- =============================================================================================================================
During the fiscal years ended May 31, 2009 and May 31, 2008, Virginia Premium Income (NPV) did not have any transactions in its Preferred shares. 5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended May 31, 2009, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------- Purchases $ 10,481,777 $ 4,209,227 $ 5,011,781 $ 5,870,658 Sales and maturities 16,788,104 7,175,551 6,959,798 7,413,599 ===============================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------- Purchases $ 10,740,445 $ 2,744,750 $ 5,073,850 Sales and maturities 14,866,649 6,172,627 9,713,306 ===============================================================================================================================
6. 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, if any. 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 May 31, 2009, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------- Cost of investments $ 206,436,836 $ 82,837,303 $ 84,405,489 $ 107,816,551 ===============================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------- Cost of investments $ 181,291,610 $ 62,512,781 $ 116,418,464 ===============================================================================================================================
Nuveen Investments 83 | Notes to FINANCIAL STATEMENTS (continued) Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2009, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 8,816,459 $ 2,113,359 $ 2,572,686 $ 3,472,005 Depreciation (12,571,672) (6,740,823) (6,618,249) (7,710,050) ------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ (3,755,213) $ (4,627,464) $ (4,045,563) $ (4,238,045) ===============================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 6,450,935 $ 1,621,804 $ 3,829,451 Depreciation (10,378,628) (4,972,110) (8,338,685) ------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ (3,927,693) $ (3,350,306) $ (4,509,234) ===============================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2009, the Funds' 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 * $ 1,696,207 $ 483,436 $ 470,204 $ 749,367 Undistributed net ordinary income ** 1,855 1,079 1,893 942 Undistributed net long-term capital gains -- -- -- -- ===============================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 1,327,566 $ 443,872 $ 697,366 Undistributed net ordinary income ** 293,982 -- 22,698 Undistributed net long-term capital gains -- -- -- ===============================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 1, 2009, paid on June 1, 2009. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 84 Nuveen Investments The tax character of distributions paid during the Funds' tax years ended May 31, 2009 and 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 2009 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income *** $ 8,324,864 $ 3,659,376 $ 3,640,847 $ 4,289,441 Distributions from net ordinary income ** 77,563 -- 70,350 237 Distributions from net long-term capital gains **** 320,091 -- 125,548 122,752 ====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 2009 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------------ Distributions from net tax-exempt income *** $ 7,136,962 $ 2,687,055 $ 5,042,415 Distributions from net ordinary income ** 109,247 -- 18,305 Distributions from net long-term capital gains **** 465,316 54,457 55,824 ====================================================================================================================================
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2008 (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 2008 (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. *** The Funds hereby designate these amounts paid during the fiscal year ended May 31, 2009, as Exempt Interest Dividends. **** The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended May 31, 2009. At May 31, 2009, the Funds' tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ Expiration: May 31, 2012 $ -- $ 106,052 $ -- $ -- May 31, 2013 -- 15,613 -- -- May 31, 2014 -- 62,054 -- -- May 31, 2017 718,691 419,436 559,268 641,931 ------------------------------------------------------------------------------------------------------------------------------------ Total $ 718,691 $ 603,155 $ 559,268 $ 641,931 ====================================================================================================================================
Nuveen Investments 85 | Notes to FINANCIAL STATEMENTS (continued)
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------------ Expiration: May 31, 2012 $ -- $ -- $ -- May 31, 2013 -- -- -- May 31, 2014 -- -- -- May 31, 2017 86,279 167,151 118,100 ------------------------------------------------------------------------------------------------------------------------------------ Total $ 86,279 $ 167,151 $ 118,100 ====================================================================================================================================
The following Funds have elected to defer net realized losses from investments incurred from November 1, 2008 through May 31, 2009, the Funds' tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year:
VIRGINIA VIRGINIA DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 2 (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------------ Post-October capital losses $ 360,192 $ 547,756 ====================================================================================================================================
7. 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 the Adviser and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets of each Fund as follows: MARYLAND PREMIUM INCOME (NMY) VIRGINIA PREMIUM INCOME (NPV) AVERAGE DAILY NET ASSETS (1) 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 ================================================================================ 86 Nuveen Investments 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 (1) 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 net assets managed as stated in the following table. As of May 31, 2009, the complex-level fee rate was .1982%. The complex-level fee schedule is as follows: COMPLEX-LEVEL NET 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 fee component of the management fee for the funds is calculated based upon the aggregate daily managed net assets of all Nuveen funds, with such daily managed net assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fee components, daily managed net assets, for funds that use financial leverage, includes assets managed by the Adviser that are attributable to such financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed net assets in certain circumstances. 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, for fees and expenses in the amounts and for the time periods set forth below: Nuveen Investments 87 | Notes to FINANCIAL STATEMENTS (continued) 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, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, 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. 88 Nuveen Investments 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, 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. 8. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4) During April 2009, the Financial Accounting Standards Board issued FSP No. 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly." FSP No. 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and level of activity for the asset or liability have significantly decreased. FSP No. 157-4 also requires additional disaggregation of the current SFAS No. 157 required disclosures. FSP No. 157-4 is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. At this time, management is evaluating the implications of FSP No. 157-4 and the impact it will have on the financial statement disclosures. Financial Accounting Standards Board Statement of Financial Accounting Standards No. 166 (SFAS No. 166) During June 2009, the Financial Accounting Standards Board issued SFAS No. 166, "Accounting for Transfers of Financial Assets -an amendment of SFAS No. 140." The objective of SFAS No. 166 is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor's continuing involvement, if any, in transferred financial assets. SFAS No. 166 is effective as of the beginning of each reporting entity's first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. The recognition and measurement provisions of SFAS No. 166 must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of SFAS No. 166 should be applied to transfers that occurred both before and after the effective date of SFAS No. 166. At this time, management is evaluating the implications of SFAS No. 166 and the impact it will have on the financial statement amounts and disclosures, if any. 9. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on July 1, 2009, to shareholders of record on June 15, 2009, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ Dividend per share $ .0580 $ .0600 $ .0600 $ .0580 ====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------------ Dividend per share $ .0605 $ .0620 $ .0620 ====================================================================================================================================
Preferred Shares On June 2, 2009, Virginia Premium Income (NPV) and Virginia Dividend Advantage 2 (NNB), noticed for redemption $6.8 million and $4.25 million, respectively, of their outstanding Preferred shares, at liquidation value, using TOBs. Nuveen Investments 89 | Financial HIGHLIGHTS 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 $ 14.19 $ .89 $ (.67) $ (.16) $ (.01) $ .05 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 MARYLAND DIVIDEND ADVANTAGE (NFM) ---------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 14.12 .95 (1.19) (.17) -- (.41) 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 ====================================================================================================================== 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 $ (.63) $ (.03) $ (.66) $ 13.58 $ 12.68 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 MARYLAND DIVIDEND ADVANTAGE (NFM) --------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (.70) -- (.70) 13.01 13.05 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 ===================================================================================================
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 $ 70,875 $ 25,000 $ 75,972 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 MARYLAND DIVIDEND ADVANTAGE (NFM) ------------------------------------------------------------------------------------ Year Ended 5/31: 2009 25,825 25,000 77,766 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 ====================================================================================
90 Nuveen Investments
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 2.57% .66% $ 144,504 1.35% 1.30% 6.80% 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 MARYLAND DIVIDEND ADVANTAGE (NFM) -------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (2.48) (2.52) 54,507 1.42 1.36 7.37 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 ========================================================================================================================== 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 1.33% 1.28% 6.81% 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 MARYLAND DIVIDEND ADVANTAGE (NFM) ----------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 1.20 1.15 7.59 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 ===============================================================================================
* 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. + 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. See accompanying notes to financial statements. Nuveen Investments 91 | Financial HIGHLIGHTS (continued) 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 $ 14.29 $ .95 $ (1.19) $ (.16) $ (.01) $ (.41) 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 14.02 .89 (.78) (.16) (.01) (.06) 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 ========================================================================================================================= 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 $ (.70) $ (.03) $(.73) $ 13.15 $ 12.69 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) -------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (.64) (.02) (.66) 13.30 12.56 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 ==================================================================================================
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 $ 26,625 $ 25,000 $ 76,817 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) --------------------------------------------------------------------------------------- Year Ended 5/31: 2009 35,000 25,000 75,951 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 =======================================================================================
92 Nuveen Investments
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 (5.21)% (2.43)% $55,185 1.41% 1.36% 7.16% 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 2.35 (.05) 71,332 1.38 1.33 6.70 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 ============================================================================================================================ 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 1.14% 1.09% 7.43% 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 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) -------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 1.08 1.03 7.00 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 ==================================================================================================
* 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. + 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. See accompanying notes to financial statements. Nuveen Investments 93 | Financial HIGHLIGHTS (continued) 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 $ 14.39 $ .90 $ (.66) $ (.15) $ (.02) $ .07 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) ---------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 14.21 .93 (1.23) (.17) --* (.47) 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 ====================================================================================================================== 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 $ (.65) $ (.05) $ (.70) $ 13.76 $ 14.36 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) -------------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 (.69) (.01) (.70) 13.04 14.00 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 ==================================================================================================
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 $ 63,800 $ 25,000 $ 73,244 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) ----------------------------------------------------------------------------------------- Year Ended 5/31: 2009 21,750 25,000 71,989 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 =========================================================================================
94 Nuveen Investments
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 8.05% .88% $ 123,119 1.36% 1.28% 6.82% 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) ------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2009 (.01) (2.92) 40,881 1.47 1.38 7.17 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 ============================================================================================================================== 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 1.35% 1.27% 6.83% 6% 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 VIRGINIA DIVIDEND ADVANTAGE (NGB) ---------------------------------------------------------------------------------------------- Year Ended 5/31: 2009 1.24 1.16 7.40 4 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 ==============================================================================================
* 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. + 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. See accompanying notes to financial statements. Nuveen Investments 95 | Financial HIGHLIGHTS (continued) 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 $ 14.39 $ .97 $ (1.11) $ (.16) $ --* $ (.30) 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 ============================================================================================================================= 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 $ (.72) $ (.01) $ (.73) $ 13.36 $ 13.98 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 =======================================================================================================
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 $ 41,175 $ 25,000 $ 71,586 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 ====================================================================================
96 Nuveen Investments
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 .96% (1.78)% $ 76,726 1.39% 1.31% 7.21% 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 ================================================================================================================================ 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 1.11% 1.03% 7.49% 4% 2008 .90 .88 6.56 10 2007 .78 .78 6.31 19 2006 .73 .73 6.21 10 2005 .74 .74 6.19 13 ================================================================================================
* 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. + 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. See accompanying notes to financial statements. Nuveen Investments 97 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER Private Investor and Management Consultant; Treasurer 8/22/40 Chairman of and Director, Humanities Council of Washington D.C. 333 W. Wacker Drive the Board 1997 199 Chicago, IL 60606 and Board Member o JACK B. EVANS President, The Hall-Perrine Foundation, a private 10/22/48 philanthropic corporation (since 1996); Director and 333 W. Wacker Drive Board Member 1999 199 Vice Chairman, United Fire Group, a publicly held Chicago, IL 60606 company; Member of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College; Director, Iowa College Foundation; Member of the Advisory Council of the Department of Finance in the Tippie College of Business, University of Iowa; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. o WILLIAM C. HUNTER Dean, Tippie College of Business, University of Iowa 3/6/48 (since 2006); Director (since 2004) of Xerox 333 W. Wacker Drive Board Member 2004 199 Corporation; Director (since 2005), Beta Gamma Sigma Chicago, IL 60606 International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT Director, Northwestern Mutual Wealth Management 10/28/42 Company; retired (since 2004) as Chairman, JPMorgan 333 W. Wacker Drive Board Member 2005 199 Fleming Asset Management, President and CEO, Banc One Chicago, IL 60606 Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd., a real 9/24/44 estate investment company; formerly, Senior Partner 333 W. Wacker Drive Board Member 1997 199 and Chief Operating Officer (retired, 2004) of Chicago, IL 60606 Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
98 Nuveen Investments
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy Donnelley 12/29/47 Foundation (since 1994); prior thereto, Executive 333 W. Wacker Drive Board Member 1997 199 Director, Great Lakes Protection Fund (from 1990 to Chicago, IL 60606 1994). o CAROLE E. STONE Director, Chicago Board Options Exchange (since 6/28/47 2006); Commissioner, New York State Commission on 333 W. Wacker Drive Board Member 2007 199 Public Authority Reform (since 2005); formerly, Chicago, IL 60606 Chair, New York Racing Association Oversight Board (2005-2007). o TERENCE J. TOTH Director, Legal & General Investment Management 9/29/59 America, Inc. (since 2008); Managing Partner, Musso 333 W. Wacker Drive Board Member 2008 199 Capital Management (since 2008); CEO and President, Chicago, IL 60606 Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); prior thereto, various positions with Northern Trust Company (since 1994); Member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, Member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007) and 6/14/61 Director (since 1999) of Nuveen Investments, Inc.; 333 W. Wacker Drive Board Member 2008 199 Chief Executive Officer (since 2007) of Nuveen Asset Chicago, IL 60606 Management, Nuveen Investments Advisors, Inc. formerly, President (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
Nuveen Investments 99
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant Secretary 9/9/56 Chief and Associate General Counsel of Nuveen Investments, 333 W. Wacker Drive Administrative 1988 199 LLC; Managing Director, Associate General Counsel and Chicago, IL 60606 Officer Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; formerly, Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. o WILLIAM ADAMS IV Executive Vice President of Nuveen Investments, Inc.; 6/9/55 Executive Vice President, U.S. Structured Products of 333 W. Wacker Drive Vice President 2007 125 Nuveen Investments, LLC, (since 1999), prior thereto, Chicago, IL 60606 Managing Director of Structured Investments. o MARK J.P. ANSON President and Executive Director of Nuveen 6/10/59 Investments, Inc. (since 2007); President of Nuveen 333 W. Wacker Drive Vice President 2009 199 Investments Institutional Services Group LLC (since Chicago, IL 60606 2007); previously, Chief Executive Officer of the British Telecom Pension Scheme (2006-2007) and Chief Investment Officer of Calpers (1999-2006); PhD, Chartered Financial Analyst, Chartered Alternative Investment Analyst, Certified Public Accountant, Certified Management Accountant and Certified Internal Auditor. o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously, Vice 1/11/62 President (1993-2004) of Nuveen Investments, LLC. 333 W. Wacker Drive Vice President 2007 125 Chicago, IL 60606 o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen Investments, 6/1/68 LLC; previously, Portfolio Manager, Allstate 333 W. Wacker Drive Vice President 2009 199 Investments, LLC (1996-2006); Chartered Financial Chicago, IL 60606 Analyst. o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen Investments, 2/3/66 Vice President LLC.; Vice President of Nuveen Asset Management 333 W. Wacker Drive and Assistant 2000 199 (since 2005). Chicago, IL 60606 Secretary o MARGO L. COOK Executive Vice President (since Oct 2008) of Nuveen 4/11/64 Investments, Inc.; previously, Head of Institutional 333 W. Wacker Drive Vice President 2009 199 Asset Management (2007-2008) of Bear Stearns Asset Chicago, IL 60606 Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen Investments, 10/24/45 LLC; Managing Director (since 2005) of Nuveen Asset 333 W. Wacker Drive Vice President 1998 199 Management; Managing Director (2004-2005), of Nuveen Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
100 Nuveen Investments
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o STEPHEN D. FOY Vice President (since 1993) and Funds Controller 5/31/54 Vice President (since 1998) of Nuveen Investments, LLC; Vice 333 W. Wacker Drive and Controller 1998 199 President (since 2005) of Nuveen Asset Management; Chicago, IL 60606 Certified Public Accountant. o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income 5/7/69 (since 2008) of Nuveen Asset Management; previously, 333 W. Wacker Drive Vice President 2009 199 Chairman, President and Chief Executive Officer (2002 Chicago, IL 60606 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; CPA. o WALTER M. KELLY Senior Vice President (since 2008), Vice President 2/24/70 Chief Compliance (2006-2008) formerly, Assistant Vice President and 333 W. Wacker Drive Officer and 2003 199 Assistant General Counsel (2003-2006) of Nuveen Chicago, IL 60606 Vice President Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB Senior Vice President (since 2009), formerly, Vice 3/22/63 President (2000-2009) of Nuveen Investments, LLC; 333 W. Wacker Drive Vice President 2000 199 Vice President (since 2005) of Nuveen Asset Chicago, IL 60606 Management; Certified Public Accountant. o TINA M. LAZAR Senior Vice President (since 2009), formerly, Vice 8/27/61 President of Nuveen Investments, LLC (1999-2009); 333 W. Wacker Drive Vice President 2002 199 Vice President of Nuveen Asset Management (since Chicago, IL 60606 2005). o LARRY W. MARTIN Vice President, Assistant Secretary and Assistant 7/27/51 Vice President General Counsel of Nuveen Investments, LLC; Vice 333 W. Wacker Drive and Assistant 1988 199 President (since 2005) and Assistant Secretary of Chicago, IL 60606 Secretary Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); formerly, Vice President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) o KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice 3/26/66 Vice President President (2007-2008), Nuveen Investments, LLC; 333 W. Wacker Drive and Secretary 2007 199 Managing Director (since 2008), formerly, Vice Chicago, IL 60606 President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007).
Nuveen Investments 101
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o JOHN V. MILLER Managing Director (since 2007), formerly, Vice 4/10/67 Vice President 2007 199 President (2002-2007) of Nuveen Asset Management and 333 W. Wacker Drive Nuveen Investments, LLC; Chartered Financial Analyst. Chicago, IL 60606 o GREGORY MINO Vice President of Nuveen Investments, LLC (since 1/4/71 Vice President 2009 199 2008); previously, Director (2004-2007) and Executive 333 W. Wacker Drive Director (2007-2008) of UBS Global Asset Management; Chicago, IL 60606 previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since 2008); 8/1/71 Vice President Vice President and Assistant Secretary, Nuveen Asset 333 W. Wacker Drive and Assistant 2008 199 Management (since 2008); prior thereto, Associate, Chicago, IL 60606 Secretary Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). o JAMES F. RUANE Vice President, Nuveen Investments, LLC (since 2007); 7/3/62 Vice President prior thereto, Partner, Deloitte & Touche USA LLP 333 W. Wacker Drive and Assistant 2007 199 (2005-2007), formerly, senior tax manager Chicago, IL 60606 Secretary (2002-2005); Certified Public Accountant. o MARK L. WINGET Vice President, Nuveen Investments, LLC (since 2008); 12/21/68 Vice President Vice President and Assistant Secretary, Nuveen Asset 333 W. Wacker Drive and Assistant 2008 199 Management (since 2008); prior thereto, Counsel, Chicago, IL 60606 Secretary Vedder Price P.C. (1997-2007).
(1) Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Mr. Amboian is an interested trustee because of his position and certain of its subsidiaries, which are affiliates of the with Nuveen Investments, Inc. Nuveen Funds. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 102 Nuveen Investments Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "Independent Board Members"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May Meeting"), the Boards of Trustees or Directors (as the case may be) (each a "Board" and each Trustee or Director, a "Board Member") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "Advisory Agreement") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute performance, fee and expense information for the Funds as well as comparative performance, fee and expense information for a comparable peer group of funds, the performance information of recognized and/or customized benchmarks (as applicable) of the Funds, the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries other than Winslow Capital Management, Inc. ("Winslow Capital") which was recently acquired in December 2008), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own Nuveen Investments 103 Annual Investment Management Agreement Approval Process (continued) business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line. In reviewing the services provided and the initiatives undertaken during the past year, the Independent Board Members recognized the severe market turmoil experienced in the capital markets during recent periods, including sustained periods of high volatility, credit disruption and government intervention. The Independent Board Members considered NAM's efforts, expertise and other actions taken to address matters as they arose that impacted the Funds. The Independent Board Members recognized the role of the Investment Services group which, among other things, monitors the various positions throughout the Nuveen fund complex to identify and address any systematic risks. In addition, the Capital Markets Committee of NAM provides a multi-departmental venue for developing new policies to mitigate any risks. The Independent Board Members further recognized NAM's continuous review of the Funds' investment strategies and mandates in seeking to continue to refine and improve the investment process for the Funds, particularly in light of market conditions. With respect to closed-end funds that issued auction rate preferred shares ("ARPs") or that otherwise utilize leverage, the Independent Board Members noted, in particular, NAM's efforts in refinancing the preferred shares of such funds frozen by the collapse of the auction rate market and managing leverage during a period of rapid market declines, particularly for the non-equity funds. Such efforts included negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs, liquidating portfolio securities during difficult times to meet leverage ratios, and seeking alternative forms of debt and other leverage that may over time reduce financing costs associated with ARPs and enable the funds that have issued ARPs to restore liquidity to ARPs holders. The Independent Board Members also noted Nuveen's continued commitment and efforts to keep investors and financial advisers informed as to its progress with the ARPs through, among other things, conference calls, emails, press releases, information posted on its website, and telephone calls and in-person meetings with financial advisers. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued 104 Nuveen Investments commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to timely provide information and education to financial advisers and investors; providing advertising and marketing for the closed-end funds; maintaining websites; and providing educational seminars. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks. In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the investment performance of each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives (the "Performance Peer Group") based on data provided by an independent provider of mutual fund data as well as recognized and/or customized benchmarks (as applicable). The Independent Board Members reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group and recognized and/or customized benchmarks (as applicable) for the quarter-, one-, three- and five-year periods (as applicable) ending December 31, 2008 and for the same periods (as applicable) ending March 31, 2009. The Independent Board Members also reviewed performance information of the Funds managed by NAM in the aggregate ranked by peer group and the performance of such Funds, in the aggregate, relative to their benchmark. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In comparing a Fund's performance with that of its Performance Peer Group, the Independent Board Members took into account that the closest Performance Peer Group in certain instances may not adequately reflect the respective fund's investment objectives and strategies thereby hindering a meaningful comparison of the fund's performance with that of the Performance Peer Group. The Independent Board Members further considered the performance of the Funds in the context of the volatile Nuveen Investments 105 Annual Investment Management Agreement Approval Process (continued) market conditions during the past year, and their impact on various asset classes and the portfolio management of the Funds. Based on their review and factoring in the severity of market turmoil in 2008, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "Peer Universe") and in certain cases, to a more focused subset of funds in the Peer Universe (the "Peer Group"). The Independent Board Members further reviewed data regarding the construction of the applicable Peer Universe and Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as the asset level of the Fund relative to peers, the size and particular composition of the Peer Universe or Peer Group, the investment objectives of the peers, expense anomalies, changes in the funds comprising the Peer Universe or Peer Group from year to year, levels of reimbursement and the timing of information used may impact the comparative data, thereby limiting the ability to make a meaningful comparison. In addition, the Independent Board Members considered, among other things, the differences in the use and type of leverage compared to the peers. The Independent Board Members also considered the differences in the states reflected in the respective Peer Group. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees and net total expense ratio were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients. Such other clients include NAM's municipal separately managed accounts. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the 106 Nuveen Investments Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. PROFITABILITY OF NUVEEN In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow Capital) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2008. In addition, the Independent Board Members reviewed information regarding the financial results of Nuveen for 2008 based on its Form 8-K filed on March 31, 2009. The Independent Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on its review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. Nuveen Investments 107 Annual Investment Management Agreement Approval Process (continued) In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. In this regard, the Independent Board Members noted that although closed-end funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. While economies of scale result when costs can be spread over a larger asset base, the Independent Board Members recognized that the asset levels generally declined in 2008 due to, among other things, the market downturn. Accordingly, for Funds with a reduction in assets under management, advisory fee levels may have increased as breakpoints in the fee schedule were no longer surpassed. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex generally are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Generally, the complex-wide pricing reduces Nuveen's revenue because total complex fund assets have consistently grown in prior years. As noted, however, total fund assets declined in 2008 resulting in a smaller downward adjustment of revenues due to complex-wide pricing compared to the prior year. 108 Nuveen Investments Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk. In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. Nuveen Investments 109 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 110 Nuveen Investments per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. Nuveen Investments 111 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. 112 Nuveen Investments 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. Nuveen Investments 113 Notes 114 Nuveen Investments Other Useful Information 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 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 SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed/noticed for redemption shares of their common and/or preferred stock as shown in the accompanying table. Preferred Shares Common Shares Redeemed and/or Fund Repurchased Noticed for Redemption NMY -- 329 NFM -- 247 NZR -- 215 NWI -- 160 NPV -- -- NGB -- 180 NNB -- 33 Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. NUVEEN INVESTMENTS 115 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, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $115 billion of assets on March 31, 2009. 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/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Distributed by It's not what you earn, Nuveen Investments, LLC it's what you keep.(R) 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com EAN-A-0509D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Maryland Dividend Advantage Municipal Fund The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 10,090 $ 0 $ 0 $ 850 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2008 $ 9,996 $ 0 $ 500 $ 800 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2008 $ 0 $ 0 $ 0 ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 850 $ 0 $ 0 $ 850 May 31, 2008 $ 1,300 $ 0 $ 0 $ 1,300
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. 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. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Cathryn P. Steeves Nuveen Maryland Dividend Advantage Municipal Fund Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: NUMBER OF PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS -------------------------------------------------------------------------------- Cathryn P. Steeves Registered Investment Company 44 $7.726 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 0 $0 * Assets are as of May 31, 2009. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of May 31, 2009, the S&P/Investortools Municipal Bond index was comprised of 52,924 securities with an aggregate current market value of $1,076 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors led by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of May 31, 2009, the portfolio manager beneficially owned the following dollar range of equity securities issued by the registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF EQUITY SECURITIES DOLLAR RANGE BENEFICIALLY OWNED OF EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED NAME OF BENEFICIALLY BY NAM'S MUNICIPAL PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM ---------------------------------------------------------------------------------------------------------------------------- Cathryn P. Steeves Nuveen Maryland Dividend Advantage Municipal Fund $0 $10,001-$50,000
PORTFOLIO MANAGER BIO: Cathryn P. Steeves, PhD is currently a portfolio manager for 45 state-specific municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake Forest University as well as an MA, an MPhil and a PhD from Columbia University. 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. Letter or number the exhibits in the sequence indicated. (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 because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Maryland Dividend Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: August 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: August 6, 2009 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: August 6, 2009 -------------------------------------------------------------------