N-CSRS 1 file001.txt NUVEEN VIRGINIA 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 811-09469 --------------------- Nuveen Virginia Dividend Advantage Municipal Fund ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: May 31 ------------------ Date of reporting period: November 30, 2005 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. SEMIANNUAL REPORT November 30, 2005 Nuveen Investments Municipal Exchange-Traded Closed-End Funds NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND NMY NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND NFM NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NZR NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NWI NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND NPV NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND NGB NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NNB Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) LOGO: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ---------------------- DELIVERY DIRECT TO YOUR E-MAIL INBOX ---------------------- IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please see the Portfolio Manager's Comments and Performance Overview sections of this report. As we enter a new year, many are trying to determine how to best position their investments to take advantage of the opportunities that may lie ahead. Nobody knows what the market will do in the future or what investments will turn out to be tomorrow's best performers. But from our experience, we do know that a well-balanced portfolio, structured and carefully monitored with the help of a trusted investment professional, can be an important component in helping you achieve your long-term financial goals. In fact, a well-diversified portfolio may actually help to reduce your overall investment risk over the long term. That is one reason why we believe that a municipal bond investment like your Fund can be an important building block in a comprehensive investment program designed to perform well in a variety of market conditions. "IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL INVESTMENT RISK OVER THE LONG TERM." As an added convenience for you, I urge you to consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy - see the inside front cover of this report for instructions. As we noted in our last shareholder report, The St. Paul Travelers Companies, Inc., which had owned 79% of Nuveen Investments, Inc. (the parent of your Fund's investment adviser), had sold a substantial portion of its stake in Nuveen. Since then, St. Paul has sold the balance of its shares to Nuveen Investments or to others. Please be assured that these transactions only affected Nuveen's corporate structure, and they do not have any impact on the investment objectives or management of your Fund. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 17, 2006 Nuveen Investments Maryland and Virginia Municipal Exchange-Traded Closed-End Funds (NMY, NFM, NZR, NWI, NPV, NGB, NNB) Portfolio Manager's COMMENTS Portfolio manager Paul Brennan discusses key investment strategies and the six-month performance of these seven Nuveen Funds. Paul, who has more than 16 years of investment experience, including 14 with Nuveen, has managed NMY and NPV since 1999; NFM, NZR, NGB and NNB since 2001; and NWI since 2002. WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2005? Over this period, shorter-term interest rates rose faster than longer-term rates. As a result, bond valuations generally declined and the yield curve flattened, meaning shorter-term rates approached the levels of longer-term rates. In this environment, one of our key strategies continued to be careful duration management. (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.) To help us maintain the Funds' durations within our preferred range, we selectively sold holdings with shorter durations, including pre-refunded bonds. When we sold these shorter duration bonds, we tried to reinvest the proceeds further out on the yield curve by looking for bonds that mature in 10 to 20 years. We believed that bonds with these maturities generally offered more attractive opportunities and the best values, and these purchases also helped to improve the Funds' overall call protection. During the latter part of this reporting period we also found opportunities to sell some of our holdings that were purchased at relatively low yields and replace them with securities offering higher yields that could help to strengthen the Funds' income streams. While our main focus in redeploying proceeds was on the 10 to 20 year area of the yield curve, we also kept an opportunistic eye out for attractively priced longer-term bonds with maturities between 20 and 30 years. In NFM, NZR, NWI and NNB, our duration management strategies also included the use of forward interest rate swaps, a type of derivative financial instrument. As discussed in our last shareholder report, we began using these swaps in late 2004 in an effort to reduce the interest rate risk in these Funds. These hedges were not an attempt to profit from correctly predicting the timing and direction of interest rate movements. Instead, our sole objective was to reduce the duration (and the resulting price sensitivity) of these Funds without having a negative impact on their income streams or common share dividends over the short term. This hedging strategy was effective in achieving the intended goal of helping to reduce NFM's net asset value (NAV) volatility, and in June 2005, we removed 4 the hedge from this Fund. The hedges on NZR, NWI and NNB remained in place as of November 30, 2005. During this reporting period, the hedges had a positive impact on the performance of these three Funds. As long-term interest rates rose, the value of the hedges increased while valuations of the Funds' holdings generally declined. In addition to duration management, we continued to maintain weightings of bonds rated BBB or lower. These, lower-rated credits generally performed well during this period. However, as a result of higher demand, there were fewer opportunities to purchase additional lower-rated bonds for these Funds at attractive prices. The majority of our new purchases over this time were rated AAA or AA, reflecting the overall high credit quality of new issue supply. The increase in Maryland and Virginia municipal supply during this period helped us further diversify their portfolios with purchases in the public infrastructure and educational and healthcare facilities sectors. HOW DID THE FUNDS PERFORM? Individual results for these, as well as for relevant indexes and group averages, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 11/30/05 MARYLAND FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NMY -0.51% 5.28% 7.91% 6.45% -------------------------------------------------------------------------------- NFM 0.19% 5.47% NA NA -------------------------------------------------------------------------------- NZR -0.09% 5.26% NA NA -------------------------------------------------------------------------------- NWI -0.16% 5.00% NA NA -------------------------------------------------------------------------------- VIRGINIA FUNDS -------------------------------------------------------------------------------- NPV -0.56% 4.69% 7.60% 6.77% -------------------------------------------------------------------------------- NGB 0.20% 6.69% NA NA -------------------------------------------------------------------------------- NNB -0.08% 5.76% NA NA -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index1 0.36% 3.88% 5.93% 5.73% -------------------------------------------------------------------------------- Lipper Other States Municipal Debt Funds Average2 -0.17% 5.49% 7.76% 6.43% -------------------------------------------------------------------------------- *Six-month returns are cumulative; returns for one year, five years, and ten years are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The Lipper Other States Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 6 months, 43 funds; 1 year, 43 funds; 5 years, 18 funds; and 10 years, 18 funds. Fund and Lipper returns assume reinvestment of dividends. It should be noted that the performance of the Lipper Other States category represents the overall average of returns for funds from 10 different states with a wide variety of municipal market conditions, making direct comparisons less meaningful. 5 For the six months ended November 30, 2005, the cumulative returns on NAV for all seven of these Funds underperformed the return on the Lehman Brothers Municipal Bond Index. However, each of these Funds outperformed the index over the most recent 12-month period. NFM, NZR, NWI, NGB and NNB outperformed the average return for the Lipper Other States peer group, while NMY and NPV trailed this Lipper average. Please keep in mind that the Lipper Other States average represents the overall average of returns for funds from 10 different states displaying a variety of economic and municipal market conditions. We believe that makes direct comparisons between the returns of specific state funds with a multi-state group average less meaningful. One of the factors affecting the Funds' six-month performance relative to that of the unleveraged Lehman Brothers index was the Funds' use of financial leverage. While leveraging provides opportunities for additional income and total returns for common shareholders when interest rates fall or remain consistently low (as has been the case over the past several years), this benefit is reduced when interest rates rise. With the increase in both short-term and long-term rates over this six-month period, the decline in value of the bonds in these Funds' portfolios was exacerbated by the effect of leveraging. In addition, the extent of the leverage benefit is tied in part to the short-term rates the Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged Funds generally pay lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. When short-term interest rates rise, as they did during this reporting period, the Funds' borrowing costs also rise, impacting the Funds' expenses, income streams and total returns. However, we remain convinced that leveraging is likely to benefit the performance of these Funds over the long term. During this reporting period, all of the Funds benefited from their allocations of lower-quality credits, as bonds rated BBB or lower generally outperformed higher-rated quality sectors. As of November 30, 2005, the Maryland Funds had weightings in BBB, sub-investment grade, and non-rated bonds ranging from 15% to 18%. The Virginia Funds had allocations between 10% and 14%. NGB's return, in particular, was helped by its holding of B2 rated bonds issued for the Rockbridge County Horse Center. As the fundamentals of this borrower improved, their securities rose in price. 6 Among other lower-rated credits making contributions to the Funds' cumulative returns for this period were tobacco bonds backed by the 1998 master tobacco settlement agreement. Generally, supply/demand dynamics and an improved litigation environment drove tobacco bond prices higher. As of November 30, 2005, all of these Funds had between 1% and 4% of their portfolios in unenhanced, uninsured tobacco bonds. Housing bonds and lower-rated hospital credits also contributed to the Funds' returns, with the housing and healthcare sectors ranking second and third, respectively, in terms of performance among the Lehman Brothers municipal revenue sectors for the period. Housing bonds, particularly those issued for multifamily housing, were among the best performing credits in the Funds' portfolios, as rising interest rates lessened the incidence and impact of prepayments and bond calls on these bonds. Among the Funds' larger holdings that tended to underperform the general municipal market in the rising rate environment of this period were certain older pre-refunded bonds. Non-callable bonds also generally did not perform as well as callable bonds with comparable maturities. NMY also continued to hold approximately 1% (par value) of its portfolio in bonds issued by the Puerto Rico Ports Authority for American Airlines, which did not perform well during this period due to continued turmoil in the airline industry. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF NOVEMBER 30, 2005? As of November 30, 2005, all of these Funds continued to offer excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 68% to 83%. Potential call exposure for the period from December 2005 through the end of 2007 ranged from zero to 4%, except for NMY which had 17%. NMY continued to hold most of these callable bonds during the period, in part due to their performance potential. The number of actual bond calls in all of these Funds depends largely on future market interest rates. 7 Dividend and Share Price INFORMATION As noted, all seven of these Funds use leverage to potentially enhance opportunities for additional income for common shareholders. During periods of rising short-term interest rates, as was the case during this reporting period, leveraging expenses increase. As a result, NMY, NZR and NGB had one monthly common share dividend reduction over the six-month period ended November 30, 2005. The dividends of NFM, NWI, NPV and NNB remained stable throughout this reporting period. (On December 1, 2005, NMY and NPV announced monthly dividend reductions.) All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of November 30, 2005, all of the Funds in this report had positive UNII balances for both financial statement and tax purposes. At the end of the reporting period, the Funds' share prices were trading at premiums or discounts to their NAVs as shown in the accompanying chart: 11/30/05 6-MONTH AVERAGE PREMIUM/DISCOUNT PREMIUM/DISCOUNT -------------------------------------------------------------------------------- NMY -1.30% +4.06% -------------------------------------------------------------------------------- NFM +0.27% +6.07% -------------------------------------------------------------------------------- NZR +4.73% +3.55% -------------------------------------------------------------------------------- NWI -3.19% -1.94% -------------------------------------------------------------------------------- NPV +5.09% +10.05% -------------------------------------------------------------------------------- NGB +2.45% +12.75% -------------------------------------------------------------------------------- NNB +4.65% +8.65% -------------------------------------------------------------------------------- 8 Nuveen Maryland Premium Income Municipal Fund NMY Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 47% AA 24% A 13% BBB 10% BB or Lower 4% NR 2% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.076 Jan 0.076 Feb 0.076 Mar 0.073 Apr 0.073 May 0.073 Jun 0.069 Jul 0.069 Aug 0.069 Sep 0.0655 Oct 0.0655 Nov 0.0655 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 16.18 16.02 16.25 16.49 16.45 16.28 16.1 16.17 16.45 16.3 16.53 16.27 16.28 16.45 16.35 16.56 16.4 16.62 16.46 16.37 16.34 16.48 15.98 16.2 16.53 16.38 16.33 16.16 16.2 16 16 15.85 15.97 15.98 16.2 16.17 16.21 16.68 16.25 16.25 16.07 15.88 15.99 16.04 16.05 16.11 16.15 16.35 16.33 16.1 16.05 16.16 16.04 16 16.04 15.96 15.81 16.2 16.49 16.57 16.59 16.27 16.3 16.1 16.15 16.08 16.01 16 16.1 16.2 15.96 16.25 16.25 16.24 16 15.9 15.75 15.6 15.31 14.79 14.64 14.8 15.17 15.3 15.21 15.3 15.36 15.49 15.62 15.5 15.44 15.24 15.18 15.28 15.09 15.19 15.23 15.26 15.13 15.01 15.07 15.16 15.08 15 15 14.98 15.1 15.17 15.22 15.12 15.33 15.55 15.57 15.45 15.57 15.63 15.85 16 16.01 15.91 15.99 15.97 15.8 15.78 15.77 15.78 15.75 15.76 15.8 15.78 15.62 15.63 15.65 15.65 15.78 15.75 15.65 15.57 15.65 15.53 15.69 15.63 15.68 15.72 15.73 15.84 15.84 15.98 16.1 15.99 15.84 15.85 15.69 15.69 15.69 15.64 15.61 15.57 15.63 15.58 15.64 15.58 15.68 15.58 15.59 15.47 15.59 15.59 15.59 15.6 15.62 15.83 16.01 16.12 15.9 16 16 15.95 15.64 15.7 15.83 15.83 15.8 15.81 15.79 15.9 15.91 16 15.81 15.94 16.01 15.86 16.05 16.13 16.1 15.86 15.94 16.05 16.02 15.93 15.93 15.81 15.93 15.78 15.8 15.68 15.5 15.29 15.26 15.28 15.32 15.38 15.4 15.36 15.58 15.54 15.52 15.4 15.46 15.48 15.39 15.21 15.09 15.05 15.08 15 14.95 15.46 15.3 15.18 14.92 14.99 15.01 14.99 15.05 15.1 15.1 14.92 14.95 15.16 14.85 14.94 14.75 14.69 14.67 14.69 14.36 14.49 14.39 14.28 14.25 14.3 14.52 14.43 11/30/05 14.45 FUND SNAPSHOT ------------------------------------ Common Share Price $14.45 ------------------------------------ Common Share Net Asset Value $14.64 ------------------------------------ Premium/(Discount) to NAV -1.30% ------------------------------------ Market Yield 5.44% ------------------------------------ Taxable-Equivalent Yield1 7.94% ------------------------------------ Net Assets Applicable to Common Shares ($000) $155,477 ------------------------------------ Average Effective Maturity on Securities (Years) 15.82 ------------------------------------ Leverage-Adjusted Duration 8.39 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -6.01% -0.51% ------------------------------------ 1-Year -4.58% 5.28% ------------------------------------ 5-Year 6.26% 7.91% ------------------------------------ 10-Year 6.85% 6.45% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 23.0% ------------------------------------ Healthcare 14.7% ------------------------------------ Education and Civic Organizations 13.2% ------------------------------------ Tax Obligation/Limited 13.1% ------------------------------------ U.S. Guaranteed 11.7% ------------------------------------ Housing/Multifamily 11.7% ------------------------------------ Utilities 6.2% ------------------------------------ Other 6.4% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.5%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 9 Nuveen Maryland Dividend Advantage Municipal Fund NFM Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 45% AA 23% A 14% BBB 12% BB or Lower 1% NR 5% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0785 Jan 0.0785 Feb 0.0785 Mar 0.0755 Apr 0.0755 May 0.0755 Jun 0.0715 Jul 0.0715 Aug 0.0715 Sep 0.0715 Oct 0.0715 Nov 0.0715 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 14.96 14.87 15.1 15.13 14.95 15.05 15.05 15.07 15.07 15 15.12 15.21 15.19 15.18 15.35 15.36 15.45 15.55 15.5 15.5 15.75 15.65 15.62 15.78 15.96 16 16.2 16.2 16.2 16.08 15.98 16.2 16.3 16.26 16.26 16.3 16.14 16.1 16.05 16.08 16.09 16.14 16.15 16.15 15.99 16.11 15.93 16.07 16.1 16.14 16.01 16.2 16.13 16.2 16.24 16.12 15.96 16.03 16.05 16 16.16 16.08 16.51 16.4 16.4 16.3 16.3 16.27 16.15 16.17 16.45 16.5 16.22 16.38 16.25 16.1 15.82 15.64 15.6 15.39 15.3 15.55 15.6 15.84 16 16.1 16.1 15.96 15.92 15.87 15.85 15.77 15.65 15.72 15.72 15.97 15.7 15.55 15.52 15.52 15.34 15.38 15.38 15.44 15.44 15.31 15.44 15.5 15.62 15.42 15.32 15.38 15.38 15.56 15.56 15.6 15.7 15.96 15.99 15.73 15.77 15.83 15.85 15.75 15.79 15.63 15.71 15.95 15.96 15.8 15.86 15.87 15.77 15.54 15.51 15.71 15.85 15.57 15.8 15.8 16.07 16.15 16.4 16.29 16.29 16.35 16.3 16.08 16.1 15.79 15.9 15.9 15.85 15.94 15.74 15.85 15.94 16.02 16.1 15.79 15.85 15.78 15.78 15.7 15.75 15.6 15.76 15.81 15.81 15.84 15.72 15.8 15.78 15.72 15.72 15.81 15.92 15.93 16.05 15.95 16.23 16.3 16.4 16.5 16.75 16.69 16.46 16.57 16.5 16.73 16.63 16.6 16.58 16.69 16.8 17.2 16.6 16.6 16.64 16.3 16.3 16.2 16.25 16.35 16.23 15.99 15.84 15.75 15.78 15.66 15.73 15.7 15.61 15.92 15.99 15.9 15.93 15.95 15.99 15.99 15.71 15.6 15.6 15.89 15.75 15.9 15.75 15.75 15.76 15.9 15.8 15.83 15.6 15.58 15.65 15.6 15.65 15.33 15.25 15.53 15.5 15.5 15.41 15.36 15.2 15.06 14.9 14.75 14.7 14.84 14.61 14.74 14.67 14.91 11/30/05 14.77 FUND SNAPSHOT ------------------------------------ Common Share Price $14.77 ------------------------------------ Common Share Net Asset Value $14.73 ------------------------------------ Premium/(Discount) to NAV 0.27% ------------------------------------ Market Yield 5.81% ------------------------------------ Taxable-Equivalent Yield1 8.48% ------------------------------------ Net Assets Applicable to Common Shares ($000) $61,387 ------------------------------------ Average Effective Maturity on Securities (Years) 18.47 ------------------------------------ Leverage-Adjusted Duration 7.80 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -2.91% 0.19% ------------------------------------ 1-Year 3.75% 5.47% ------------------------------------ Since Inception 5.33% 6.65% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 26.5% ------------------------------------ Healthcare 17.0% ------------------------------------ Tax Obligation/Limited 12.4% ------------------------------------ Housing/Multifamily 12.3% ------------------------------------ U.S. Guaranteed 12.2% ------------------------------------ Education and Civic Organizations 8.7% ------------------------------------ Other 10.9% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.5%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 10 Nuveen Maryland Dividend Advantage Municipal Fund 2 NZR Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 50% AA 26% A 9% BBB 10% BB or Lower 1% NR 4% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.073 Jan 0.073 Feb 0.073 Mar 0.073 Apr 0.073 May 0.073 Jun 0.073 Jul 0.073 Aug 0.073 Sep 0.0695 Oct 0.0695 Nov 0.0695 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 15.25 15.25 15.22 15.32 15.27 15.29 15.38 15.19 15.02 15.14 15.17 15.3 15.3 15.35 15.29 15.1 15.3 15.3 15.6 15.75 15.98 16.09 15.95 16.12 15.9 15.82 15.99 15.96 15.96 15.95 15.75 15.42 15.51 15.35 15.37 15.38 15.31 15.25 15.35 15.41 15.37 15.4 15.45 15.9 15.88 16 15.74 15.83 15.84 15.73 15.65 15.75 15.45 15.35 15.3 15.01 15.01 15.03 15.01 15.01 15.22 15.25 15.31 15.28 15.28 15.24 15.41 15.41 15.07 15.09 14.9 14.94 14.87 15.13 15.12 15.13 15.46 15.06 15.06 15.2 15.1 15.1 15.38 15.6 15.48 15.38 15.65 15.75 15.75 15.74 15.31 15.2 15.35 15.29 15.4 15.25 15.23 14.73 14.89 14.83 14.55 14.67 14.73 14.74 14.74 14.7 14.78 14.84 15.01 15.06 15.18 15.28 15.3 15.22 15.21 15.35 15.35 15.37 15.36 15.52 15.45 15.18 15.26 15.29 15.2 15.41 15.51 15.42 15.55 15.5 15.47 15.6 15.46 15.41 15.3 15.43 15.38 15.53 15.87 15.52 15.53 15.73 15.94 15.93 16.11 15.8 15.98 15.89 16.39 16.6 16.45 16 15.93 15.96 16.07 16.23 15.88 16.04 15.96 16.19 16.1 16.23 16.02 15.76 15.54 15.68 15.69 15.61 15.61 15.47 15.4 15.35 15.49 15.5 15.64 15.75 15.86 15.8 15.85 15.88 16.2 16.17 16.17 15.85 15.86 15.85 15.93 15.77 15.8 16.18 16.14 16.14 16 15.96 16.07 16.13 16.05 16 16.07 15.79 15.99 15.99 15.8 16.11 16.19 16.3 16.11 16 15.95 16.09 15.91 15.93 15.9 15.98 16.05 16.05 16 16.12 15.93 15.89 15.7 15.78 15.65 15.59 15.6 15.3 15.23 15.55 15.45 15.35 15.08 15.3 15.46 15.55 15.49 15.54 15.65 15.8 15.8 16 16.1 16.1 15.95 15.9 15.7 15.78 15.51 15.6 15.47 15.45 15.4 15.4 15.49 15.32 11/30/05 15.72 FUND SNAPSHOT ------------------------------------ Common Share Price $15.72 ------------------------------------ Common Share Net Asset Value $15.01 ------------------------------------ Premium/(Discount) to NAV 4.73% ------------------------------------ Market Yield 5.31% ------------------------------------ Taxable-Equivalent Yield1 7.75% ------------------------------------ Net Assets Applicable to Common Shares ($000) $62,707 ------------------------------------ Average Effective Maturity on Securities (Years) 16.95 ------------------------------------ Leverage-Adjusted Duration 8.05 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) 4.80% -0.09% ------------------------------------ 1-Year 10.08% 5.26% ------------------------------------ Since Inception 6.91% 6.96% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 27.9% ------------------------------------ U.S. Guaranteed 15.1% ------------------------------------ Healthcare 14.2% ------------------------------------ Tax Obligation/Limited 12.7% ------------------------------------ Education and Civic Organizations 10.5% ------------------------------------ Housing/Multifamily 9.2% ------------------------------------ Other 10.4% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.5%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0616 per share. 11 Nuveen Maryland Dividend Advantage Municipal Fund 3 NWI Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 39% AA 37% A 7% BBB 12% BB or Lower 1% NR 4% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.0655 Jan 0.0655 Feb 0.0655 Mar 0.0625 Apr 0.0625 May 0.0625 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0595 Oct 0.0595 Nov 0.0595 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 13.55 13.47 13.55 13.55 13.8 13.68 13.68 13.85 13.72 13.61 13.6 13.69 13.41 13.5 13.57 13.66 13.67 13.4 13.58 13.46 13.71 13.66 14 14.18 14.28 14.42 14.52 14.4 14.33 14.28 14.2 14.3 14.28 14.15 13.87 14.2 14.2 14.05 14.15 14.2 14.2 14.29 14.63 14.65 14.62 14.71 14.55 14.54 14.51 14.47 14.42 14.6 14.6 14.5 14.5 14.17 14.19 14.65 14.5 14.6 14.59 14.65 14.7 14.6 14.57 14.55 14.57 14.22 14.25 14.16 14.55 14.37 13.99 13.76 13.8 13.75 13.93 13.71 13.93 13.72 13.89 13.78 13.98 14.15 14.03 14.14 14.15 14.2 14.2 14.02 14.13 14.18 14.1 13.94 14.21 14.06 14.04 14.04 13.84 13.89 13.81 14.19 14.16 14.06 14.06 14.13 14.07 14.13 14.35 14.14 14.35 14.21 14.5 14.4 14.4 14.55 14.7 14.65 14.5 14.45 14.25 14.53 14.37 14.43 14.36 14.4 14.38 14.47 14.54 14.2 14.31 14.2 14.26 14.23 14.16 14.08 14.14 14.25 14.41 14.45 14.42 14.48 14.69 14.61 14.55 14.55 14.65 14.56 14.67 14.76 14.5 14.66 14.63 14.51 14.53 14.4 14.27 14.35 14.11 14.03 14.02 14.1 14.15 14.44 14.36 14.4 14.39 14.45 14.45 14.5 14.4 14.5 14.49 14.41 14.32 14.55 14.32 14.27 14.54 14.46 14.55 14.42 14.29 14.55 14.31 14.36 14.57 14.67 14.8 14.59 14.52 14.52 14.5 14.49 14.48 14.55 14.56 14.55 14.54 14.67 14.49 14.4 14.12 14.3 14.53 14.75 14.81 14.82 14.68 14.64 14.63 14.37 14.66 14.66 14.62 14.62 14.55 14.5 14.44 14.41 14.24 14.17 14.1 14.19 14.12 14.04 14.01 14.12 14.25 14.31 14.35 14.1 14.1 14.27 14.41 14.4 14.04 14.26 14.32 14.48 14.14 14 14.01 14 14.29 14.07 14.3 14.1 14.1 14.06 13.97 14 14.04 14.09 11/30/05 13.98 FUND SNAPSHOT ------------------------------------ Common Share Price $13.98 ------------------------------------ Common Share Net Asset Value $14.44 ------------------------------------ Premium/(Discount) to NAV -3.19% ------------------------------------ Market Yield 5.11% ------------------------------------ Taxable-Equivalent Yield1 7.46% ------------------------------------ Net Assets Applicable to Common Shares ($000) $77,409 ------------------------------------ Average Effective Maturity on Securities (Years) 17.58 ------------------------------------ Leverage-Adjusted Duration 8.27 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -0.49% -0.16% ------------------------------------ 1-Year 8.36% 5.00% ------------------------------------ Since Inception 3.13% 5.59% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 22.4% ------------------------------------ Tax Obligation/General 21.5% ------------------------------------ U.S. Guaranteed 13.6% ------------------------------------ Healthcare 12.0% ------------------------------------ Housing/Multifamily 9.6% ------------------------------------ Education and Civic Organizations 8.3% ------------------------------------ Other 12.6% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.5%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.0076 per share. 12 Nuveen Virginia Premium Income Municipal Fund NPV Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 52% AA 31% A 7% BBB 6% BB or Lower 1% NR 3% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.076 Jan 0.076 Feb 0.076 Mar 0.073 Apr 0.073 May 0.073 Jun 0.069 Jul 0.069 Aug 0.069 Sep 0.069 Oct 0.069 Nov 0.069 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 17.52 17.5 17.5 17.69 17.82 17.72 17.68 17.99 17.9 17.95 17.81 17.5 17.7 17.92 17.89 17.78 17.7 17.4 17.32 17.7 17.42 17.57 17.75 17.65 17.7 17.73 17.67 17.72 17.75 17.81 17.53 17.6 17.9 17.91 17.75 17.65 17.61 17.55 17.5 17.51 17.42 17.55 17.8 17.75 17.78 17.9 18.2 17.9 18.01 17.85 18 18.37 17.92 17.82 17.65 17.55 17.67 17.39 17.58 17.56 17.62 17.55 17.7 17.77 17.64 17.64 17.58 17.51 17.73 17.83 17.52 17.64 17.53 17.25 17.23 17.15 17.15 16.76 16.6 16.6 16.75 16.6 16.57 16.5 16.32 16.5 16.5 16.54 16.55 16.46 16.5 16.55 16.5 16.37 16.55 16.65 16.5 16.49 16.51 16.52 16.32 16.52 16.45 16.51 16.51 16.62 16.66 16.7 16.96 16.79 16.56 16.97 17.15 17.18 17.18 17.32 17.54 17.63 17.77 17.76 17.76 18 17.45 17.29 17.4 17.65 17.68 17.88 18 18.02 18.02 18.03 18.07 18.07 17.95 17.95 17.81 17.4 17.39 17.28 17.4 17.47 17.33 17.34 17.44 17.39 17.4 17.51 17.91 17.85 17.87 17.69 17.95 18.1 17.91 17.45 17.3 17.12 17.13 17.02 17.06 16.85 16.75 16.72 16.8 16.78 16.94 17.09 17.09 16.95 16.92 16.81 16.87 16.93 16.94 16.92 16.96 16.78 16.86 16.85 16.89 16.59 16.75 16.66 16.65 16.7 16.85 16.94 17.19 17.49 17.23 17.29 17.22 17.44 17.4 17.26 17.56 17.42 17.53 17.49 17.53 17.57 17.5 17.35 17.3 17.2 17.05 16.79 16.63 16.62 16.98 17 17.1 17.45 17.35 17.52 17.55 17.7 17.55 17.9 17.88 17.6 17.6 17.58 17.7 17.53 17.07 17.18 17.09 17.25 17 17.12 17.1 16.98 16.95 16.65 16.99 16.8 16.96 16.82 16.82 16.73 16.85 16.65 16.5 16.43 16.47 16.45 16.14 16.1 16 16.12 16.11 16.19 11/30/05 16.1 FUND SNAPSHOT ------------------------------------ Common Share Price $16.10 ------------------------------------ Common Share Net Asset Value $15.32 ------------------------------------ Premium/(Discount) to NAV 5.09% ------------------------------------ Market Yield 5.14% ------------------------------------ Taxable-Equivalent Yield1 7.56% ------------------------------------ Net Assets Applicable to Common Shares ($000) $136,113 ------------------------------------ Average Effective Maturity on Securities (Years) 15.81 ------------------------------------ Leverage-Adjusted Duration 8.31 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -6.55% -0.56% ------------------------------------ 1-Year -4.10% 4.69% ------------------------------------ 5-Year 7.75% 7.60% ------------------------------------ 10-Year 7.62% 6.77% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 22.7% ------------------------------------ Tax Obligation/General 18.5% ------------------------------------ Healthcare 11.7% ------------------------------------ U.S. Guaranteed 9.4% ------------------------------------ Transportation 8.4% ------------------------------------ Utilities 8.0% ------------------------------------ Education and Civic Organizations 6.7% ------------------------------------ Water and Sewer 5.7% ------------------------------------ Other 8.9% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 13 Nuveen Virginia Dividend Advantage Municipal Fund NGB Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 50% AA 28% A 8% BBB 5% BB or Lower 4% NR 5% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0785 Jan 0.0785 Feb 0.0785 Mar 0.0755 Apr 0.0755 May 0.0755 Jun 0.0755 Jul 0.0755 Aug 0.0755 Sep 0.072 Oct 0.072 Nov 0.072 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 17.34 17.06 17.1 16.95 17.1 17.26 17.56 17.64 17.43 17.49 17.25 17.26 17.26 17.15 17.15 17.15 17.19 17.27 17.21 17.15 17.99 17.83 17.75 17.9 17.84 17.85 18 17.67 17.51 17.17 16.97 17.1 17.2 18.15 18.1 18 18.01 17.75 17.47 17.55 17.5 17.48 17.4 17.42 17.4 17.59 18.15 18.14 17.94 17.9 18.2 18.1 18 17.93 17.75 17.7 17.25 17.22 17.25 17.45 17.66 17.58 17.32 17.32 17.8 18.1 18 17.92 17.87 17.87 17.74 17.21 17.21 17 17.36 17.59 17.85 17.5 17.4 17.55 17.56 17.56 17.56 17.48 17.53 17.4 17.39 17.43 17.43 17.36 17.5 17.5 17.39 17.2 17.2 17.11 17.04 17.15 17.15 17.35 17.12 17.05 17.05 16.88 16.88 16.96 16.86 16.86 17.34 17.34 17.44 17.43 17.51 17.44 17.35 17.37 17.37 17.37 17.37 17.42 18 17.59 17.29 17.4 17.2 16.99 17.05 17.15 17.25 17.2 17.15 17.2 17.2 17 17.01 17.1 17.18 17.18 17.3 17.24 17.15 17.47 17.47 17.47 17.4 17.36 17.35 17.22 17.34 17.94 17.6 17.72 17.93 17.98 17.98 17.89 17.99 17.99 18.13 18.2 18.2 18.06 18.51 18.42 18.4 18.6 18.76 18.8 18.8 19 18.98 18.85 18.56 18.72 18.82 18.93 18.7 17.77 17.8 17.31 17.51 17.6 17.63 17.63 17.71 17.57 17.53 17.83 18.05 18 18.05 18.15 18.2 18.25 18.25 18.17 18.41 18.41 18.41 18.41 18.38 18.09 18 17.72 17.69 17.67 17.47 17.46 17.31 17.31 17.25 17.25 17.61 17.77 17.85 17.55 17.55 17.55 17.64 17.32 17.23 17.34 17.34 17.4 17.22 17.37 16.62 16.75 16.79 16.75 16.71 16.51 16.45 16.3 16.41 16.29 16.25 16.04 15.81 15.6 15.86 15.33 15.4 15.36 15.4 15.68 15.33 15.34 15.41 15.1 15.15 15.15 15.24 15.35 11/30/05 15.48 FUND SNAPSHOT ------------------------------------ Common Share Price $15.48 ------------------------------------ Common Share Net Asset Value $15.11 ------------------------------------ Premium/(Discount) to NAV 2.45% ------------------------------------ Market Yield 5.58% ------------------------------------ Taxable-Equivalent Yield1 8.21% ------------------------------------ Net Assets Applicable to Common Shares ($000) $47,222 ------------------------------------ Average Effective Maturity on Securities (Years) 15.76 ------------------------------------ Leverage-Adjusted Duration 8.11 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -6.53% 0.20% ------------------------------------ 1-Year -6.02% 6.69% ------------------------------------ Since Inception 6.23% 7.24% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 20.8% ------------------------------------ Tax Obligation/Limited 15.4% ------------------------------------ Transportation 15.2% ------------------------------------ U.S. Guaranteed 15.0% ------------------------------------ Education and Civic Organizations 9.4% ------------------------------------ Healthcare 7.2% ------------------------------------ Consumer Staples 3.2% ------------------------------------ Other 13.8% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 14 Nuveen Virginia Dividend Advantage Municipal Fund 2 NNB Performance OVERVIEW As of November 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 48% AA 34% A 7% BBB 5% BB or Lower 2% NR 4% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.0715 Apr 0.0715 May 0.0715 Jun 0.0715 Jul 0.0715 Aug 0.0715 Sep 0.0715 Oct 0.0715 Nov 0.0715 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/04 15.8 15.77 16 16.03 16.12 16.45 16.44 16.43 16.03 16.25 16.28 16.28 16.45 16.5 16.55 16.7 16.7 16.85 17.04 17.24 17.03 17.14 17.01 17.25 17.1 17 16.57 16.53 16.65 16.61 16.32 16.55 16.8 17 17 16.92 16.75 16.35 16.36 16.44 16.44 16.44 16.47 16.65 16.54 16.71 16.93 16.8 16.79 17 17.3 17.1 16.7 16.69 16.73 16.5 16.6 16.31 16.36 16.34 16.6 17.03 16.8 16.7 16.7 17 17.1 17.08 16.72 16.64 16.39 16.15 16.04 16.09 16.2 16.11 15.86 16 15.8 15.9 16.01 15.88 16.11 16.45 16.47 16.35 16 16 16.06 16.4 16.3 16.16 16.05 15.93 16.25 16.4 16.28 16.35 16.39 16.4 16.15 16.5 16.74 16.75 16.75 16.9 16.89 16.89 16.72 16.79 16.88 16.83 16.7 16.43 16.42 16.8 16.64 16.6 16.65 16.65 16.85 16.8 16.65 16.87 16.74 16.74 16.96 16.59 16.64 16.65 16.63 16.7 16.66 16.6 16.71 16.69 16.89 16.85 16.78 16.82 16.81 17 16.99 17 17.03 17 17.3 17.4 16.95 17.11 17.32 17.15 17.2 17.3 17.16 17.2 17.15 17.2 17.2 17.15 17.08 17.11 17.2 17.25 17.39 17.38 17.2 17.28 17.28 17.32 17.11 16.84 16.95 17.17 17.31 17.31 17.36 17.15 17.2 17.4 17.6 17.3 17.32 17.2 17.1 17.11 17.12 17.15 17.32 17.49 17.21 17.13 17.22 17.38 17.5 17.5 17.45 17.44 17.19 17.14 17.14 16.95 16.97 17 16.75 16.8 16.65 16.2 16.25 16.3 16.67 17 17.2 17.08 17.07 17.07 17.09 16.98 16.84 17 16.8 16.77 16.71 16.81 16.51 16.4 16.5 16.63 16.65 16.6 16.65 16.45 16.65 16.52 16.58 16.6 16.63 16.63 16.55 16.3 16.3 16.17 16.22 16.19 15.95 15.95 15.88 15.96 16 15.95 15.89 15.89 15.95 15.97 11/30/05 15.97 FUND SNAPSHOT ------------------------------------ Common Share Price $15.97 ------------------------------------ Common Share Net Asset Value $15.26 ------------------------------------ Premium/(Discount) to NAV 4.65% ------------------------------------ Market Yield 5.37% ------------------------------------ Taxable-Equivalent Yield1 7.90% ------------------------------------ Net Assets Applicable to Common Shares ($000) $87,169 ------------------------------------ Average Effective Maturity on Securities (Years) 16.88 ------------------------------------ Leverage-Adjusted Duration 8.24 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 6-Month (Cumulative) -2.14% -0.08% ------------------------------------ 1-Year 7.85% 5.76% ------------------------------------ Since Inception 7.46% 7.75% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/General 26.5% ------------------------------------ Tax Obligation/Limited 18.1% ------------------------------------ Healthcare 11.9% ------------------------------------ Water and Sewer 10.4% ------------------------------------ U.S. Guaranteed 8.3% ------------------------------------ Housing/Single Family 6.1% ------------------------------------ Education and Civic Organizations 6.0% ------------------------------------ Other 12.7% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32%. When comparing this Fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.1878 per share. 15 Shareholder MEETING REPORT Approval of the new investment management agreement was the proposal voted upon at the July 26, 2005 shareholder meeting held at The Northern Trust Bank. Approval of the Board Members was the proposal voted upon at the November 15, 2005 shareholder meeting held at the offices of Nuveen Investments.
NMY NFM NZR ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting together together together as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 9,902,065 3,936,993 4,053,632 Against 102,803 54,099 44,514 Abstain 108,945 40,341 43,726 ------------------------------------------------------------------------------------------------------------------------------------ Total 10,113,813 4,031,433 4,141,872 ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner For 9,954,427 -- 3,985,338 -- 4,062,754 -- Withhold 72,622 -- 35,446 -- 66,868 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ==================================================================================================================================== Lawrence H. Brown For 9,955,477 -- 3,982,388 -- 4,057,496 -- Withhold 71,572 -- 38,396 -- 72,126 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ==================================================================================================================================== Jack B. Evans For 9,954,291 -- 3,985,738 -- 4,066,653 -- Withhold 72,758 -- 35,046 -- 62,969 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ==================================================================================================================================== William C. Hunter For 9,955,477 -- 3,985,738 -- 4,067,253 -- Withhold 71,572 -- 35,046 -- 62,369 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ==================================================================================================================================== David J. Kundert For 9,955,477 -- 3,985,738 -- 4,066,953 -- Withhold 71,572 -- 35,046 -- 62,669 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ==================================================================================================================================== William J. Schneider For -- 3,051 -- 1,210 -- 1,263 Withhold -- 2 -- 6 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,053 -- 1,216 -- 1,263 ==================================================================================================================================== Timothy R. Schwertfeger For -- 3,051 -- 1,210 -- 1,263 Withhold -- 2 -- 6 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,053 -- 1,216 -- 1,263 ==================================================================================================================================== Judith M. Stockdale For 9,949,441 -- 3,984,621 -- 4,063,353 -- Withhold 77,608 -- 36,163 -- 66,269 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ==================================================================================================================================== Eugene S. Sunshine For 9,948,285 -- 3,985,738 -- 4,066,853 -- Withhold 78,764 -- 35,046 -- 62,769 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 10,027,049 -- 4,020,784 -- 4,129,622 -- ====================================================================================================================================
16
NWI NPV NGB ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting together together together as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 5,250,246 8,207,985 3,036,353 Against 31,607 72,829 31,828 Abstain 45,160 76,077 21,285 ------------------------------------------------------------------------------------------------------------------------------------ Total 5,327,013 8,356,891 3,089,466 ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner For 5,268,877 -- 8,273,602 -- 3,042,550 -- Withhold 31,934 -- 73,234 -- 32,381 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ==================================================================================================================================== Lawrence H. Brown For 5,269,258 -- 8,266,606 -- 3,039,884 -- Withhold 31,553 -- 80,230 -- 35,047 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ==================================================================================================================================== Jack B. Evans For 5,272,214 -- 8,272,035 -- 3,042,561 -- Withhold 28,597 -- 74,801 -- 32,370 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ==================================================================================================================================== William C. Hunter For 5,273,714 -- 8,272,488 -- 3,040,767 -- Withhold 27,097 -- 74,348 -- 34,164 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ==================================================================================================================================== David J. Kundert For 5,273,714 -- 8,270,625 -- 3,042,550 -- Withhold 27,097 -- 76,211 -- 32,381 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ==================================================================================================================================== William J. Schneider For -- 1,523 -- 2,211 -- 837 Withhold -- -- -- 6 -- 2 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,523 -- 2,217 -- 839 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,523 -- 2,211 -- 837 Withhold -- -- -- 6 -- 2 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,523 -- 2,217 -- 839 ==================================================================================================================================== Judith M. Stockdale For 5,270,914 -- 8,268,876 -- 3,040,767 -- Withhold 29,897 -- 77,960 -- 34,164 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ==================================================================================================================================== Eugene S. Sunshine For 5,272,214 -- 8,268,128 -- 3,040,767 -- Withhold 28,597 -- 78,708 -- 34,164 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,300,811 -- 8,346,836 -- 3,074,931 -- ====================================================================================================================================
17
Shareholder MEETING REPORT (continued) NNB ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and MuniPreferred shares voting together as a class ------------------------------------------------------------------------------------------------------------------------------------ For 5,547,715 Against 28,297 Abstain 47,318 ------------------------------------------------------------------------------------------------------------------------------------ Total 5,623,330 ==================================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner For 5,590,811 -- Withhold 41,225 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ==================================================================================================================================== Lawrence H. Brown For 5,592,411 -- Withhold 39,625 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans For 5,588,411 -- Withhold 43,625 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ==================================================================================================================================== William C. Hunter For 5,592,411 -- Withhold 39,625 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ==================================================================================================================================== David J. Kundert For 5,590,241 -- Withhold 41,795 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ==================================================================================================================================== William J. Schneider For -- 1,642 Withhold -- 13 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,655 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,642 Withhold -- 13 ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,655 ==================================================================================================================================== Judith M. Stockdale For 5,592,411 -- Withhold 39,625 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ==================================================================================================================================== Eugene S. Sunshine For 5,592,411 -- Withhold 39,625 -- ------------------------------------------------------------------------------------------------------------------------------------ Total 5,632,036 -- ====================================================================================================================================
18 Nuveen Maryland Premium Income Municipal Fund (NMY) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.0% (1.4% OF TOTAL INVESTMENTS) $ 3,135 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 3,177,385 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 19.7% (13.2% OF TOTAL INVESTMENTS) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 200 5.750%, 9/01/25 3/10 at 101.00 BBB- 207,584 200 5.800%, 9/01/30 3/10 at 101.00 BBB- 207,108 1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 1,036,460 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,050,080 Housing Revenue Bonds, Collegiate Housing Foundation - Salisbury State University, Series 1999A, 6.000%, 6/01/19 Maryland Economic Development Corporation, Utility Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001: 1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,081,700 1,000 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,079,870 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 798,150 500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 530,490 1,500 Maryland Health and Higher Educational Facilities Authority, 7/07 at 102.00 AA 1,573,410 Revenue Refunding Bonds, Johns Hopkins University, Series 1997, 5.625%, 7/01/27 1,460 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,524,459 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.625%, 6/01/36 1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,275,175 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call AAA 11,330,789 Revenue Refunding Bonds, Academic Fees and Auxiliary Facilities, Series 1993, 6.100%, 7/01/20 - MBIA Insured University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A: 5,645 5.000%, 4/01/15 4/13 at 100.00 AA 6,019,038 2,680 5.000%, 4/01/19 4/13 at 100.00 AA 2,845,302 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 21.9% (14.7% OF TOTAL INVESTMENTS) 2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,100,100 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,040,140 Revenue Bonds, Johns Hopkins Hospital, Howard County General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - MBIA Insured 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,515,585 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A+ 1,633,635 Revenue Bonds, University of Maryland Medical System, Series 2002, 6.000%, 7/01/22 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 3,396,250 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,422,610 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,417,505 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 19 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 $ 3,898,040 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,052,210 Revenue Bonds, University of Maryland Medical System, Series 2004B, 5.000%, 7/01/24 - AMBAC Insured 1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 1,826,493 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,540 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 1,571,016 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,602,058 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,682,066 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 3,080 5.375%, 7/01/14 1/06 at 101.00 B3 2,768,212 6,000 5.300%, 7/01/24 1/06 at 101.00 B3 4,969,800 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 17.4% (11.7% OF TOTAL INVESTMENTS) Howard County, Maryland, FHA-Insured Mortgage Revenue Refunding Bonds, Normandy Woods III Apartments, Series 1996A: 700 6.000%, 7/01/17 7/06 at 102.00 AAA 719,117 2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,053,580 2,500 Maryland Community Development Administration, Housing 1/09 at 101.00 Aa2 2,538,750 Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 919,327 Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax) 1,450 Maryland Community Development Administration, FNMA 2/11 at 101.00 Aaa 1,531,084 Multifamily Development Revenue Bonds, Edgewater Village Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative Minimum Tax) 2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 2,329,763 Housing Revenue Bonds, Collegiate Housing Foundation - College Park, Series 1999A, 5.750%, 6/01/24 1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,059,310 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 2,000 Montgomery County Housing Opportunities Commission, 1/06 at 102.00 Aa2 2,042,380 Maryland, GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series 1995A, 5.900%, 7/01/15 1,500 Montgomery County Housing Opportunities Commission, 7/06 at 102.00 Aaa 1,539,705 Maryland, Multifamily Housing Development Bonds, Series 1996B, 5.900%, 7/01/26 3,830 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 3,896,336 Maryland, FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30 2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,085,740 Maryland, Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30 Prince George's County Housing Authority, Maryland, GNMA Collateralized Mortgage Revenue Refunding Bonds, Overlook Apartments, Series 1995A: 2,000 5.700%, 12/20/15 12/05 at 102.00 AAA 2,042,060 1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,704,836 935 Prince George's County Housing Authority, Maryland, 5/06 at 100.00 AAA 935,645 GNMA Collateralized Mortgage Revenue Refunding Bonds, Foxglenn Apartments, Series 1998A, 5.450%, 11/20/14 (Alternative Minimum Tax) 540 Prince George's County Housing Authority, Maryland, 9/09 at 102.00 AAA 567,292 GNMA Collateralized Mortgage Revenue Bonds, University Landing Apartments, Series 1999, 6.100%, 3/20/41 (Alternative Minimum Tax) 1,000 Salisbury, Maryland, FHA-Insured Mortgage Revenue 12/05 at 101.00 AAA 1,011,230 Refunding Bonds, College Lane Apartments, Series 1995A, 6.600%, 12/01/26 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS) $ 45 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA $ 46,773 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax) 330 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 331,709 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.8% (1.1% OF TOTAL INVESTMENTS) 1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/09 at 101.00 AA 1,054,210 EMA Obligated Group, Series 1999A, 5.625%, 1/01/25 - RAAI Insured 1,695 Maryland Economic Development Corporation, Health and 4/11 at 102.00 N/R 1,803,700 Mental Hygiene Providers Revenue Bonds, Series 1996A, 7.625%, 4/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 34.2% (23.0% OF TOTAL INVESTMENTS) 4,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 4,330,280 Series 2003, 5.000%, 3/01/13 2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AA+ 2,182,270 Series 2004, 5.000%, 4/01/16 Baltimore County, Maryland, Metropolitan District Special Assessment Bonds, 67th Issue: 2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,637,425 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,652,740 1,000 Baltimore, Maryland, Consolidated General Obligation Public No Opt. Call A+ 1,098,260 Improvement Bonds, Series 1989B, 7.150%, 10/15/08 1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 1,629,828 Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured 1,000 Charles County, Maryland, Consolidated General Obligation No Opt. Call AA 1,078,580 Public Improvement Bonds, Series 2005, 5.000%, 3/01/12 Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: 1,000 5.000%, 11/01/21 11/12 at 101.00 AA 1,064,620 1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,062,440 615 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 662,404 Villages of Lake Linganore Community Development Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2004B: 735 5.000%, 8/15/16 2/14 at 100.00 AAA 790,478 1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,741,773 1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,256,275 1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 1,856,635 Bonds, Series 2002A, 5.250%, 8/15/18 1,190 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,273,086 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 2,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 2,708,100 5.000%, 8/01/17 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 1,908,428 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,163,740 3,520 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 3,840,355 Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 925 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 973,479 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,078,950 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 - FGIC Insured 2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 1,965,340 Consolidated Public Improvement Bonds, Series 2002, 4.100%, 9/15/19 5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 6,146,550 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/18 21 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) 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 $ 2,172,480 1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,313,250 1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,311,261 1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,309,273 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.4% (13.1% OF TOTAL INVESTMENTS) Baltimore Board of School Commissioners, Maryland, Revenue Bonds, City Public School System, Series 2003A: 1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ 1,597,410 1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,062,300 300 Baltimore, Maryland, Special Obligation Bonds, North 9/15 at 101.00 N/R 298,899 Locust Point Project, Series 2005, 5.500%, 9/01/34 900 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 921,816 Town Center Project, Series 2004, 5.750%, 7/01/34 4,250 Maryland Department of Transportation, Consolidated No Opt. Call AA 4,802,755 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 2,164,320 Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13 1,875 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,038,106 Bonds, Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 Maryland Department of Transportation, Certificates of Participation, Mass Transit Administration Project, Series 2000: 875 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 931,577 925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 984,810 1,700 Maryland Stadium Authority, Lease Revenue Bonds, 6/13 at 100.00 AA+ 1,788,553 Montgomery County Conference Center Facilities, Series 2003, 5.000%, 6/15/24 2,455 Maryland Stadium Authority, Lease Revenue Bonds, Sports 3/06 at 101.00 AAA 2,494,550 Facilities, Series 1996, 5.750%, 3/01/18 - AMBAC Insured 1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,050,800 Metrorail Garage, Series 2002, 5.000%, 6/01/21 1,365 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 1,443,733 College of Arts Center Project, Series 2005A, 5.000%, 5/01/19 675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 712,753 West Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 635 New Baltimore City Board of School Commissioners, 11/10 at 100.00 AA+ 678,193 Maryland, School System Revenue Bonds, Series 2000, 5.125%, 11/01/15 1,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 1,054,460 Transportation Authority, Series 1996Y, 5.500%, 7/01/36 1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,709,460 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,264,451 5.250%, 8/01/21 - FSA Insured 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 2,219,820 Loan Note, Series 1999A, 6.500%, 10/01/24 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.3% (2.9% OF TOTAL INVESTMENTS) 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,169,954 System Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds, Johns Hopkins Medical Institution, Series 2004B: 355 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 382,956 380 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 410,670 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102.00 CCC $ 1,435,215 American Airlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) 3,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 3,230,190 Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 17.4% (11.7% OF TOTAL INVESTMENTS) 2,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,698,375 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded to 8/01/12) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AAA 2,116,500 Series 1998A, 5.000%, 7/01/28 - FGIC Insured 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,171,140 System Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 745 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 789,246 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,212,910 Bonds, Series 1999, 5.250%, 7/01/18 (Pre-refunded to 7/01/09) 2,550 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 2,852,915 and Improvement Bonds, Shady Grove Adventist Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured 575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 626,831 Refunding Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded to 2/15/12) Howard County, Maryland, Consolidated Public Improvement Refunding Bonds, Series 2003A: 1,720 5.000%, 8/15/17 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,856,964 1,000 5.000%, 8/15/22 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,079,630 145 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 158,070 Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded to 2/15/12) 760 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 A3*** 868,361 Revenue Bonds, University of Maryland Medical System, Series 2000, 6.750%, 7/01/30 (Pre-refunded to 7/01/10) 3,125 Maryland Health and Higher Educational Facilities Authority, 1/06 at 100.00 Aaa 3,238,781 Revenue Bonds, Howard County General Hospital, Series 1993, 5.500%, 7/01/25 3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,431,808 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC Insured 145 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA*** 167,967 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (DD, settling 12/01/05) 635 Prince George's County Housing Authority, Maryland, 2/06 at 100.00 AA*** 637,102 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1997A, 5.625%, 8/01/17 (Alternative Minimum Tax) (Pre-refunded to 2/01/06) 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,089,450 Obligation Bonds, Series 2000A, 5.500%, 10/01/20 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.1% (6.2% OF TOTAL INVESTMENTS) 6,500 Calvert County, Maryland, Pollution Control Revenue 1/06 at 101.00 A2 6,604,845 Refunding Bonds, Baltimore Gas and Electric Company, Series 1993, 5.550%, 7/15/14 2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 2,537,675 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 5,000 Prince George's County, Maryland, Pollution Control Revenue No Opt. Call A- 5,083,000 Refunding Bonds, Potomac Electric Power Company, Series 1993, 6.375%, 1/15/23 23 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.3% (0.8% OF TOTAL INVESTMENTS) $ 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA $ 1,134,421 Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 860 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 938,412 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ $ 220,090 Total Long-Term Investments (cost $224,153,204) - 148.7% 231,195,721 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 3,381,563 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.9)% (79,100,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 155,477,284 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varyingprices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (DD) Portion of security purchased on a delayed delivery basis. See accompanying notes to financial statements. 24 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.3% OF TOTAL INVESTMENTS) $ 180 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call BB $ 169,342 Motors Corporation, Series 1993, 5.350%, 4/01/08 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.6% (1.7% OF TOTAL INVESTMENTS) 1,565 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,586,159 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.0% (8.7% OF TOTAL INVESTMENTS) Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 465 5.700%, 9/01/20 3/10 at 101.00 BBB- 484,670 500 5.750%, 9/01/25 3/10 at 101.00 BBB- 518,960 645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 668,517 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,058,560 Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 1,555,440 Educational Facilities Leasehold Mortgage Revenue Bonds, McLean School, Series 2001, 6.000%, 7/01/31 625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 648,538 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 510,070 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 300 Maryland Industrial Development Financing Authority, 5/15 at 100.00 N/R 306,648 Revenue Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 215 5.375%, 2/01/19 2/09 at 101.00 BBB- 219,205 410 5.375%, 2/01/29 2/09 at 101.00 BBB- 412,079 University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A: 1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,066,260 500 5.000%, 4/01/19 4/13 at 100.00 AA 530,840 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 25.3% (17.0% OF TOTAL INVESTMENTS) 2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,336,361 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 1,009,950 Revenue Bonds, Calvert Memorial Hospital, Series 1998, 5.000%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,041,890 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/28 - FSA Insured 570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 579,582 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,290,000 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,030,330 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 656,754 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 25 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ $ 2,047,980 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,063,260 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 508,075 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,025,800 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 730,597 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 596,782 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 757,688 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 290 5.375%, 7/01/14 1/06 at 101.00 B3 260,643 700 5.300%, 7/01/24 1/06 at 101.00 B3 579,810 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 18.3% (12.3% OF TOTAL INVESTMENTS) 750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA 764,183 Refunding Bonds, Cross Creek Apartments, Series 1998A, 5.250%, 10/20/33 2,000 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,047,620 Revenue Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax) 520 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 534,108 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,028,810 Multifamily Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,800 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 1,922,562 Housing Revenue Bonds, Sheppard Pratt University Village, Series 2001, 6.000%, 7/01/33 - ACA Insured 750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 762,323 Maryland, FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.250%, 7/01/29 (Alternative Minimum Tax) 2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,089,920 Maryland, Multifamily Housing Development Bonds, Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax) 2,000 Montgomery County Housing Opportunities Commission, 7/11 at 100.00 Aaa 2,060,700 Maryland, Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.5% (3.0% OF TOTAL INVESTMENTS) 115 Maryland Community Development Administration, 9/09 at 100.00 Aa2 117,773 Residential Revenue Bonds, Series 1999E, 5.700%, 9/01/17 590 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 597,629 Revenue Bonds, Series 2000H, 5.800%, 9/01/32 (Alternative Minimum Tax) 415 Maryland Community Development Administration, Single 10/10 at 100.00 Aa2 418,233 Family Program Bonds, First Series 2001, 5.000%, 4/01/17 585 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 595,395 Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax) 1,000 Maryland Community Development Administration, Residential 3/11 at 100.00 Aa2 1,032,320 Revenue Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.6% (1.1% OF TOTAL INVESTMENTS) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,011,060 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS) $ 1,000 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R $ 905,710 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 39.5% (26.5% OF TOTAL INVESTMENTS) Anne Arundel County, Maryland, Various Purpose General Obligation Bonds, Series 2001: 580 4.800%, 2/15/18 2/11 at 101.00 AA+ 604,778 500 5.000%, 2/15/28 2/11 at 101.00 AA+ 519,320 1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,082,570 Series 2003, 5.000%, 3/01/13 3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,649,240 Assessment Bonds, 67th Issue, 5.000%, 6/01/27 1,000 Charles County, Maryland, Consolidated General Obligation No Opt. Call AA 1,078,580 Public Improvement Bonds, Series 2005, 5.000%, 3/01/12 1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA 1,062,440 Bonds, Series 2002, 5.000%, 11/01/22 Frederick, Maryland, General Obligation Bonds, Series 2005: 600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 649,944 500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 539,535 1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,386,398 Bonds, Series 2001A, 4.750%, 2/15/21 1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,069,820 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,000 Maryland, General Obligation Bonds, Series 2005, 5.000%, 8/01/17 8/15 at 100.00 AAA 1,083,240 1,360 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,483,774 Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 430 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 452,536 Series 2000A, 6.000%, 6/01/20 - ACA Insured 740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AAA 774,329 4.875%, 3/01/19 - FGIC Insured 1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,618,425 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 - FGIC Insured 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,066,650 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, General Obligation Construction Bonds, Series 2001: 895 5.000%, 6/01/22 6/11 at 100.00 AAA 936,967 935 5.000%, 6/01/23 6/11 at 100.00 AAA 976,449 985 5.000%, 6/01/24 6/11 at 100.00 AAA 1,027,188 1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,083,583 1,290 Washington Suburban Sanitary District, Montgomery and 6/11 at 100.00 AAA 1,326,765 Prince George's Counties, Maryland, Water Supply Bonds, Series 2001, 4.750%, 6/01/20 700 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 760,368 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 18.4% (12.4% OF TOTAL INVESTMENTS) 625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 627,144 Project, Series 2005A, 5.350%, 7/01/34 675 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 689,972 Revenue Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 500 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 531,150 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/18 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 358,484 Town Center Project, Series 2004, 5.750%, 7/01/34 1,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,695,090 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,082,160 Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13 27 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ $ 1,527,221 Revenue Bonds, Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 370 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 397,413 Bonds, Montgomery County Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13 615 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 648,524 College of Arts Center Project, Series 2005A, 5.000%, 5/01/20 740 Prince George's County, Maryland, Lease Revenue Bonds, 6/13 at 100.00 AAA 793,724 Upper Marlboro Justice Center, Series 2003A, 5.000%, 6/30/14 - MBIA Insured 270 Prince Georges County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 268,990 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 453,479 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 797,748 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 1,290 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,437,383 Taxes Loan Note, Series 1999A, 6.375%, 10/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS) 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 AAA 668,616 Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 7/01/27 - AMBAC Insured Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds, Johns Hopkins Medical Institution, Series 2004B: 150 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 161,813 135 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 145,896 1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,076,730 Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 18.1% (12.2% OF TOTAL INVESTMENTS) 1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,619,025 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded to 8/01/12) 1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 1,074,124 Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured 1,865 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,975,762 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 500 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 539,815 Refunding Bonds, Series 2003A, 5.000%, 8/15/15 (Pre-refunded to 8/15/12) 895 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,036,759 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 585 Prince George's County Housing Authority, Maryland, 2/06 at 100.00 AA*** 587,059 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/30 (Alternative Minimum Tax) (Pre-refunded to 2/01/06) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,476,019 1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,830,101 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.7% (1.1% OF TOTAL INVESTMENTS) $ 1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R $ 1,015,066 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.6% (0.5% OF TOTAL INVESTMENTS) 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 387,364 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ $ 87,200 Total Long-Term Investments (cost $88,673,116) - 148.7% 91,274,666 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.4% 2,112,230 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.1)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 61,386,896 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 29 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS) $ 190 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call BB $ 178,750 Motors Corporation, Series 1993, 5.350%, 4/01/08 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.5% (1.7% OF TOTAL INVESTMENTS) 785 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 795,613 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 784,736 Tobacco Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.5% (10.5% OF TOTAL INVESTMENTS) 1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,146,783 Revenue Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 3/10 at 101.00 BBB- 103,792 100 5.800%, 9/01/30 3/10 at 101.00 BBB- 103,554 645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 668,517 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 259,240 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 440,307 Revenue Bonds, Bullis School, Series 2000, 5.250%, 7/01/30 - FSA Insured 1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,297,075 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 510,070 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 315 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 321,980 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 500 Morgan State University, Maryland, Student Tuition and Fee 7/12 at 100.00 AAA 532,605 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2001, 4.900%, 7/01/21 - FGIC Insured 500 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 531,580 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/20 - FGIC Insured University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2001B: 1,580 4.375%, 4/01/17 4/11 at 100.00 AA 1,603,210 1,140 4.500%, 4/01/19 4/11 at 100.00 AA 1,156,416 1,000 University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A, 4/13 at 100.00 AA 1,061,680 5.000%, 4/01/19 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 21.1% (14.2% OF TOTAL INVESTMENTS) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,041,890 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/33 - FSA Insured 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,545,495 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 656,754 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 2,047,980 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 $ 1,063,260 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 508,075 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,025,800 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 730,597 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 535,574 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 814,161 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 757,688 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 1,610 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA- 1,659,862 Revenue Bonds, Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22 Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 300 5.375%, 7/01/14 1/06 at 101.00 B3 269,631 700 5.300%, 7/01/24 1/06 at 101.00 B3 579,810 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 13.7% (9.2% OF TOTAL INVESTMENTS) 55 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 56,015 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001A, 5.100%, 5/15/28 2,595 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 2,665,402 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax) 1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,141,979 Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 3,145 Maryland Community Development Administration, 12/11 at 100.00 Aaa 3,235,607 Multifamily Development Revenue Bonds, Waters Towers Senior Apartments, Series 2001F, 5.450%, 12/15/33 (Alternative Minimum Tax) 435 Maryland Community Development Administration, Insured 5/12 at 100.00 Aa2 453,218 Multifamily Housing Mortgage Loan Revenue Bonds, Series 2002A, 5.300%, 5/15/22 1,000 Maryland Economic Development Corporation, Student Housing 10/13 at 100.00 Baa3 1,059,310 Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS) 915 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 931,067 Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.9% (1.2% OF TOTAL INVESTMENTS) 1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,162,719 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.5% (0.4% OF TOTAL INVESTMENTS) Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A: 31 6.750%, 4/01/20 4/09 at 100.00 N/R 27,954 25 6.750%, 4/01/23 4/11 at 101.00 N/R 22,643 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001B: 25 8.000%, 4/01/22 (Optional put 4/01/07) 10/06 at 100.00 N/R 24,999 5 6.400%, 4/01/23 (Mandatory put 4/01/07) No Opt. Call N/R 4,603 31 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) Prince George's County, Maryland, Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 1994A: $ 20 5.625%, 4/01/09 4/06 at 100.00 N/R $ 18,231 175 6.000%, 4/01/13 4/06 at 100.00 N/R 158,848 50 Prince George's County, Maryland, Revenue Bonds, Collington No Opt. Call N/R 50,000 Episcopal Life Care Community Inc., Series 1994B, 8.000%, 4/01/16 (Optional put 4/01/06) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 41.4% (27.9% OF TOTAL INVESTMENTS) 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 762,533 Consolidated Water and Sewerage, Series 1999, 4.500%, 8/01/19 1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,082,570 Series 2003, 5.000%, 3/01/13 750 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 793,748 Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured Cecil County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2001B: 975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,003,714 1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,045,990 1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA 1,066,310 Bonds, Series 2002, 5.000%, 11/01/20 510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 531,619 Improvement Bonds, Series 2001, 4.750%, 12/01/19 Frederick, Maryland, General Obligation Bonds, Series 2005: 600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 649,944 500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 539,535 1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,075,480 Bonds, Series 2004B, 5.000%, 8/15/16 Maryland, General Obligation Bonds, State and Local Facilities Loan, First Series 2001: 2,445 5.500%, 3/01/11 No Opt. Call AAA 2,679,476 1,500 5.500%, 3/01/12 No Opt. Call AAA 1,661,310 1,000 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,083,240 5.000%, 8/01/17 4,730 Montgomery County, Maryland, Consolidated General 10/11 at 101.00 AAA 5,117,245 Obligation Public Improvement Refunding Bonds, Series 2001, 5.250%, 10/01/18 Prince George's County, Maryland, General Obligation Consolidated Public Improvement Bonds, Series 2001: 1,000 5.250%, 12/01/20 - FGIC Insured 12/11 at 101.00 AAA 1,078,950 2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,042,639 770 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 808,970 Series 2001, 5.000%, 7/01/24 - FSA Insured 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,086,240 Prince George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 800 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 868,992 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 18.8% (12.7% OF TOTAL INVESTMENTS) 625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 627,144 Project, Series 2005A, 5.350%, 7/01/34 675 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 689,972 Revenue Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 Baltimore County, Maryland, Certificates of Participation, Health and Social Services Building Project, Series 2001: 1,580 5.000%, 8/01/20 8/11 at 101.00 AA+ 1,650,278 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,730,434 530 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 565,473 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R $ 358,484 Town Center Project, Series 2004, 5.750%, 7/01/34 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,130,060 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,082,160 Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13 1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,527,221 Bonds, Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 590 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 626,385 College of Arts Center Project, Series 2005A, 5.000%, 5/01/18 1,000 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 1,055,930 West Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 270 Prince Georges County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 268,990 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 478,672 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.9% (3.3% OF TOTAL INVESTMENTS) Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001: 650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 668,616 1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 1,023,670 Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds, Johns Hopkins Medical Institution, Series 2004B: 155 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 167,206 135 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 145,896 1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,076,730 Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 22.5% (15.1% OF TOTAL INVESTMENTS) 1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,619,025 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded to 8/01/12) 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,103,930 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded to 7/01/10) 3,000 Frederick County, Maryland, General Obligation Public 12/10 at 101.00 AAA 3,259,140 Facilities Bonds, Series 2000, 5.200%, 12/01/19 (Pre-refunded to 12/01/10) 750 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 809,722 Refunding Bonds, Series 2003A, 5.000%, 8/15/15 (Pre-refunded to 8/15/12) 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,340,363 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured 1,220 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,413,236 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 1,230 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,318,007 Series 2001, 5.000%, 7/01/24 (Pre-refunded to 7/01/11) - FSA Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,229,590 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.3% (2.2% OF TOTAL INVESTMENTS) 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 1,052,800 5.250%, 10/01/34 - MBIA Insured 1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,015,070 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 33 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS) $ 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA $ 387,364 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ $ 88,501 Total Long-Term Investments (cost $90,097,608) - 148.5% 93,145,153 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.5% 1,562,048 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.0)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 62,707,201 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE APPRECIATION ==================================================================================================================================== Citigroup $300,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $19,292 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. N/R Investment is not rated. See accompanying notes to financial statements. 34 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS) $ 220 Baltimore, Maryland, Pollution Control Revenue Bonds, No Opt. Call BB $ 206,974 General Motors Corporation, Series 1993, 5.350%, 4/01/08 ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.6% (2.4% OF TOTAL INVESTMENTS) 2,730 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,766,910 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.3% (8.3% OF TOTAL INVESTMENTS) 225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 234,569 Revenue Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 100 5.750%, 9/01/25 3/10 at 101.00 BBB- 103,792 100 5.800%, 9/01/30 3/10 at 101.00 BBB- 103,554 690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 715,157 Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,026,180 Revenue Bonds, Johns Hopkins University, Series 2002A, 5.000%, 7/01/32 625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 637,588 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 385 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 393,532 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 1,000 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 1,039,290 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/32 - FGIC Insured 985 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA 999,361 Bonds, Series 2001B, 4.625%, 4/01/21 2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA 2,119,220 Bonds, Series 2002A, 5.125%, 4/01/22 University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A: 1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,066,260 1,000 5.000%, 4/01/19 4/13 at 100.00 AA 1,061,680 ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 17.8% (12.0% OF TOTAL INVESTMENTS) 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,041,890 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/33 - FSA Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,032,000 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 669,715 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 800 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 808,312 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,306,250 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 711,305 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,940,091 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 35 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 $ 814,548 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,025,800 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 939,339 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 739,602 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 814,161 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 870 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 878,918 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 350 5.375%, 7/01/14 1/06 at 101.00 B3 314,570 900 5.300%, 7/01/24 1/06 at 101.00 B3 745,470 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 14.2% (9.6% OF TOTAL INVESTMENTS) 980 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 981,872 Revenue Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative Minimum Tax) Maryland Economic Development Corporation, Student Housing Revenue Bonds, Sheppard Pratt University Village, Series 2001: 20 5.875%, 7/01/21 - ACA Insured 7/11 at 101.00 A 21,413 150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 A 160,214 1,250 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,324,138 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 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 519,877 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,028,980 4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 4,932,074 Collateralized Mortgage Revenue Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,011,060 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.6% (0.3% OF TOTAL INVESTMENTS) 280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 253,599 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 Prince George's County, Maryland, Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 1994A: 40 5.625%, 4/01/09 4/06 at 100.00 N/R 36,463 115 6.000%, 4/01/13 4/06 at 100.00 N/R 104,386 38 Prince George's County, Maryland, Revenue Bonds, Collington No Opt. Call N/R 38,000 Episcopal Life Care Community Inc., Series 1994B, 8.000%, 4/01/16 (Optional put 4/01/06) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 31.9% (21.5% OF TOTAL INVESTMENTS) 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,020,980 Refunding Bonds, Series 2002, 4.375%, 4/01/17 1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,082,570 Series 2003, 5.000%, 3/01/13 1,000 Calvert County, Maryland, General Obligation Public 1/12 at 101.00 AA 1,037,070 Improvement Bonds, Series 2002, 4.500%, 1/01/16 1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,298,594 Public Improvement Bonds, Series 2002, 4.400%, 1/15/16 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: $ 1,830 5.000%, 11/01/20 11/12 at 101.00 AA $ 1,951,347 2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,166,502 2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,656,100 245 Frederick County, Maryland, Special Obligation Bonds, Villages 7/10 at 102.00 AA 264,228 of Lake Linganore Community Development Authority, Series 2001A, 5.600%, 7/01/20 - RAAI Insured Frederick, Maryland, General Obligation Bonds, Series 2005: 710 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 769,100 535 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 577,302 1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,069,820 Prince George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,000 Maryland, General Obligation Bonds, State and Local Facilities No Opt. Call AAA 1,070,980 Loan, Series 2002B, 5.250%, 2/01/10 1,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,624,860 5.000%, 8/01/17 1,440 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,571,054 Obligation Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,066,650 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 1,000 Prince George's County, Maryland, General Obligation No Opt. Call AA 1,077,770 Consolidated Public Improvement Bonds, Series 2004C, 5.000%, 12/01/11 1,000 St. Mary's County, Maryland, General Obligation Hospital No Opt. Call AA- 1,080,980 Bonds, Series 2002, 5.000%, 10/01/12 25 Washington Suburban Sanitary District, Montgomery and 6/11 at 101.00 AAA 26,678 Prince George's Counties, Maryland, General Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17 1,000 Washington Suburban Sanitary District, Montgomery and No Opt. Call AAA 1,085,380 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2004, 5.000%, 6/01/13 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,086,240 Prince George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,086,240 Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 33.1% (22.4% OF TOTAL INVESTMENTS) 750 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 752,573 Project, Series 2005A, 5.350%, 7/01/34 1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,066,930 Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15 450 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 460,908 Town Center Project, Series 2004, 5.750%, 7/01/34 5,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 5,650,300 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,082,160 Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13 2,200 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,250,864 Revenue Bonds, Department of Transportation Headquarters Building, Series 2002, 4.750%, 6/01/22 450 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 483,341 Bonds, Montgomery County Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13 2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,172,882 Bonds, Montgomery County Wayne Avenue Parking Project, Series 2002A, 5.250%, 9/15/16 Maryland Stadium Authority, Lease Revenue Bonds, Montgomery County Conference Center Facilities, Series 2003: 1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ 1,551,523 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,707,496 710 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 753,786 College of Arts Center Project, Series 2005A, 5.000%, 5/01/18 37 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 460 Prince Georges County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R $ 458,280 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 579,445 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 797,748 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: 1,000 5.250%, 7/01/17 7/12 at 100.00 BBB 1,041,720 1,205 5.250%, 7/01/20 7/12 at 100.00 BBB 1,249,718 1,275 5.250%, 7/01/21 7/12 at 100.00 BBB 1,321,576 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,097,130 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured 235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 244,059 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.9% (1.3% OF TOTAL INVESTMENTS) Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds, Johns Hopkins Medical Institution, Series 2004B: 190 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 204,963 175 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 189,124 1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,076,730 Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 20.1% (13.6% OF TOTAL INVESTMENTS) 10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AA+*** 10,612 Consolidated General Improvements, Series 1999, 5.000%, 5/15/19 (Pre-refunded to 5/15/09) 2,115 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,313,873 Public Improvement Bonds, Series 2002, 5.250%, 8/01/17 (Pre-refunded to 8/01/12) 100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 107,097 Bonds, Series 1999, 5.250%, 7/01/17 (Pre-refunded to 7/01/09) 1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,272,134 Bonds, Series 2001A, 4.750%, 2/15/19 (Pre-refunded to 2/15/09) 1,215 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,311,750 Refunding Bonds, Series 2003A, 5.000%, 8/15/15 (Pre-refunded to 8/15/12) 50 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 53,189 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured 1,080 Maryland Transportation Authority, Revenue Refunding No Opt. Call AAA 1,251,061 Bonds, Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 2,000 Montgomery County, Maryland, Consolidated General 2/12 at 101.00 AAA 2,168,240 Obligation Public Improvement Bonds, Series 2002A, 5.000%, 2/01/20 (Pre-refunded to 2/01/12) 880 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 948,490 Bonds, Series 2001, 5.125%, 7/01/30 (Pre-refunded to 7/01/11) - FSA Insured 5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,382,650 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 700 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 767,200 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded to 2/01/12) 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.2% (4.8% OF TOTAL INVESTMENTS) $ 1,250 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R $ 1,268,838 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 4,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 4,286,300 Series 2000HH, 5.250%, 7/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.0% (2.7% OF TOTAL INVESTMENTS) 2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,647,280 Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured 430 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 469,204 Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 ------------------------------------------------------------------------------------------------------------------------------------ $ 108,958 Total Long-Term Investments (cost $112,903,634) - 148.3% 114,789,733 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 1,619,123 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.4)% (39,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 77,408,856 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE APPRECIATION ==================================================================================================================================== Citigroup $ 500,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $ 32,153 JPMorgan 2,000,000 4.833% Semi-annually 3-month USD-LIBOR Quarterly 2/09/06 2/09/36 125,362 ------------------------------------------------------------------------------------------------------------------------------------ $157,515 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. See accompanying notes to financial statements. 39 Nuveen Virginia Premium Income Municipal Fund (NPV) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.0% (2.8% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: $ 1,575 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,592,026 3,850 5.500%, 6/01/26 6/15 at 100.00 BBB 3,891,157 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.7% (6.7% OF TOTAL INVESTMENTS) 3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 AAA 3,847,795 Rate Revenue Bonds, Institute for Defense Analyses, Series 2000A, 5.900%, 10/01/30 - AMBAC Insured 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,034,200 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 537,125 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- 721,329 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 500 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 500,405 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 475 The Rector and Visitors of the University of Virginia, 6/15 at 100.00 AAA 509,718 General Revenue Bonds, Series 2005, 5.000%, 6/01/18 2,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 2,160,440 Revenue Bonds, Public Higher Education Financing Program, Series 2004B, 5.000%, 9/01/13 2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,185,508 Revenue Bonds, Public Higher Education Financing Program, Series 2001A, 5.000%, 9/01/26 1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,744,365 Series 2004A, 5.000%, 5/01/17 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 16.9% (11.7% OF TOTAL INVESTMENTS) 2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 2,040,220 Virginia, Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,110,057 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,265,900 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,171,190 Hospital Revenue Bonds, Memorial Regional Medical Center, Series 1995, 6.375%, 8/15/18 - MBIA Insured 1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,563,300 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,500 Henrico County Industrial Development Authority, Virginia, No Opt. Call AAA 1,813,530 Healthcare Revenue Bonds, Bon Secours Health System, Series 1996, 6.250%, 8/15/20 - MBIA Insured 1,950 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 2,000,564 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 4,750 Medical College of Virginia Hospital Authority, General 7/08 at 102.00 AAA 4,893,213 Revenue Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured 3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,212,460 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - MBIA Insured 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.5% (3.1% OF TOTAL INVESTMENTS) $ 1,445 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa $ 1,512,005 Multifamily Housing Revenue Bonds, Patrick Henry Apartments, Series 2000, 6.050%, 11/01/32 (Alternative Minimum Tax) (Mandatory put 11/01/20) 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 494,140 1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,481,835 1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,616,902 GNMA Mortgage-Backed Securities Program Assisted Living Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,034,490 Vistas GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 1.0% (0.8% OF TOTAL INVESTMENTS) 345 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 346,787 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) 1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,027,510 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS) 2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,043,900 Solid Waste Disposal Facility Revenue Refunding Bonds, USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS) 500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba2 471,885 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (a) 1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba2 941,150 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (a) 1,000 Isle of Wight County Industrial Development Authority, 5/07 at 102.00 BBB 1,023,410 Virginia, Solid Waste Disposal Facilities Revenue Bonds, Union Camp Corporation, Series 1997, 6.100%, 5/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.9% (18.5% OF TOTAL INVESTMENTS) 900 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 976,311 5.000%, 6/15/13 900 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 971,298 5.000%, 12/15/11 1,400 Arlington County, Virginia, General Obligation Bonds, 5/15 at 100.00 AAA 1,519,084 Series 2005, 5.000%, 5/15/16 Chesapeake, Virginia, General Obligation Water and Sewerage Bonds, Series 2003B: 1,880 5.000%, 6/01/21 6/13 at 100.00 AA 1,969,150 2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,146,953 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public 7/12 at 101.00 AAA 1,430,162 Safety and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured 1,390 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 1,509,915 Series 2005, 5.000%, 7/15/16 1,920 Loudoun County, Virginia, General Obligation Public No Opt. Call Aaa 2,086,656 Improvement Bonds, Series 2005A, 5.000%, 7/01/14 105 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 113,059 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 1,435 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 Aaa 1,542,238 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,252,628 5.000%, 6/01/21 Newport News, Virginia, General Obligation Bonds, General Improvement and Water Projects, Series 2002A: 2,770 5.000%, 7/01/19 7/13 at 100.00 AA 2,936,394 1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,056,530 41 Nuveen Virginia Premium Income Municipal Fund (NPV) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,350 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA $ 1,455,597 Series 2004C, 5.000%, 5/01/16 1,400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,473,374 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,000 Portsmouth, Virginia, General Obligation Bonds, No Opt. Call AAA 1,078,670 Series 2003, 5.000%, 7/01/12 - FSA Insured 1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AAA 1,388,710 5.000%, 4/01/15 - MBIA Insured 1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,565,411 5.000%, 7/15/21 - FSA Insured Richmond, Virginia, General Obligation Bonds, Series 2005A: 1,500 5.000%, 7/15/17 - FSA Insured 7/15 at 100.00 AAA 1,613,205 1,715 5.000%, 7/15/20 - FSA Insured 7/15 at 100.00 AAA 1,826,115 1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,524,809 Bonds, Series 2002A, 5.000%, 10/01/17 1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 1,232,394 5.000%, 12/01/15 1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,504,843 Bonds, Series 2001, 5.000%, 6/01/20 2,155 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,299,234 Series 2003B, 5.000%, 5/01/15 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 32.9% (22.7% OF TOTAL INVESTMENTS) Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 335 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 347,144 260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 271,092 1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,415,563 Revenue Bonds, School Facilities Project, Series 2005, 5.000%, 1/01/20 - MBIA Insured Cumberland County, Virginia, Certificates of Participation, Series 1997: 1,075 6.200%, 7/15/12 No Opt. Call N/R 1,146,724 1,350 6.375%, 7/15/17 No Opt. Call N/R 1,493,208 500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102.00 N/R 516,540 Lease Revenue Bonds, Dinwiddie County School Facilities, Series 1997A, 6.000%, 2/01/18 1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AAA 1,074,010 Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 - MBIA Insured Fairfax County Economic Development Authority, Virginia, Lease Revenue Bonds, Laurel Hill Public Facilities Projects, Series 2003: 2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,436,981 2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,277,753 1,660 Front Royal and Warren County Industrial Development 4/14 at 100.00 AAA 1,756,695 Authority, Virginia, Lease Revenue Bonds, Series 2004B, 5.000%, 4/01/18 - FSA Insured 1,270 James City County Economic Development Authority, Virginia, 7/15 at 100.00 AA- 1,348,143 Revenue Bonds, County Government Projects, Series 2005, 5.000%, 7/15/19 1,930 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 2,055,411 County Facilities, Series 2005, 5.000%, 6/01/18 - AMBAC Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 2,059,240 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds, Series 2002D: 265 5.250%, 7/01/27 7/12 at 100.00 BBB 271,204 320 5.250%, 7/01/36 7/12 at 100.00 BBB 326,173 1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,110,655 Virginia, Lease Revenue Bonds, School Facilities, Series 2003B, 4.375%, 8/01/20 - AMBAC Insured 2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 2,219,820 Loan Note, Series 1999A, 6.500%, 10/01/24 1,400 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 1,507,226 Revenue Bonds, Series 2005A, 5.000%, 5/01/16 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,855 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ $ 1,980,917 Revenue Bonds, 21st Century College Program, Series 2004A, 5.000%, 2/01/11 2,000 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 2,092,580 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 2,400 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 2,599,416 Highway Reimbursement Anticipation Notes, Series 2005, 5.000%, 9/28/15 2,000 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 2,144,460 Bonds, Series 2004B, 5.000%, 8/01/11 1,950 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 2,105,669 1997 Resolution, Series 2004C, 5.000%, 8/01/13 1,625 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 1,748,078 1997 Resolution, Series 2005C, 5.000%, 8/01/17 2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,113,720 1997 Resolution, Series 2000B, 5.000%,8/01/18 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2000B: 1,120 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 1,207,662 3,060 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 3,280,504 1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,834,778 Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.2% (8.4% OF TOTAL INVESTMENTS) 755 Metropolitan District of Columbia Airports Authority, Virginia, 10/07 at 101.00 Aa3 784,785 Airport System Revenue Bonds, Series 1997A, 5.375%, 10/01/23 4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,114,160 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 530 Pocahontas Parkway Association, Virginia, Senior Lien 8/08 at 102.00 BB- 546,552 Revenue Bonds, Route 895 Connector Toll Road, Series 1998A, 5.500%, 8/15/28 2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 2,784,650 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 6,065 Virginia Port Authority, Revenue Bonds, Port Authority 7/07 at 101.00 AAA 6,274,667 Facilities, Series 1997, 5.600%, 7/01/27 (Alternative Minimum Tax) - MBIA Insured 2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,109,960 Bonds, Series 2001A, 5.250%, 8/01/23 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 13.6% (9.4% OF TOTAL INVESTMENTS) 750 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 811,485 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured 1,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,287,159 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) Fairfax County Water Authority, Virginia, Water Revenue Refunding Bonds, Series 2002: 1,925 5.375%, 4/01/19 (Pre-refunded to 4/01/12) 4/12 at 100.00 AAA 2,107,240 200 5.000%, 4/01/27 (Pre-refunded to 4/01/12) 4/12 at 100.00 AAA 214,732 Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Convention Center Expansion Project, Series 2000: 600 6.125%, 6/15/25 (Pre-refunded to 6/15/10) 6/10 at 101.00 AAA 668,658 2,000 6.125%, 6/15/29 (Pre-refunded to 6/15/10) 6/10 at 101.00 AAA 2,228,860 Hampton, Virginia, General Obligation Public Improvement Bonds, Series 2000: 890 5.750%, 2/01/17 (Pre-refunded to 2/01/10) 2/10 at 102.00 AA*** 983,806 2,000 6.000%, 2/01/20 (Pre-refunded to 2/01/10) 2/10 at 102.00 AA*** 2,229,220 480 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 522,955 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 (Pre-refunded to 5/01/12) 43 Nuveen Virginia Premium Income Municipal Fund (NPV) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** (continued) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: $ 375 6.000%, 6/01/22 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** $ 421,661 800 6.100%, 6/01/32 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** 904,096 2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,691,325 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 to 7/01/12) 7/12 at 100.00 BBB*** 793,668 880 5.250%, 7/01/36 (Pre-refunded to 7/01/12) 7/12 at 100.00 BBB*** 950,242 1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+*** 1,104,700 Revenue Bonds, Hampton University, Series 2000, 6.000%, 4/01/20 (Pre-refunded to 4/01/10) 500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 547,685 Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22 (Pre-refunded to 10/01/10) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.6% (8.0% OF TOTAL INVESTMENTS) Bristol, Virginia, Utility System Revenue Refunding Bonds, Series 2003: 1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA 1,859,354 1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,952,694 2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,991,450 2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 2,799,750 Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) 3,500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/08 at 101.00 AAA 3,625,230 Series 1998A, 5.125%, 1/15/28 - FGIC Insured Richmond, Virginia, Public Utility Revenue Refunding Bonds, Series 2002: 750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 772,875 1,700 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,740,868 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.2% (5.7% OF TOTAL INVESTMENTS) Fairfax County Water Authority, Virginia, Water Revenue Refunding Bonds, Series 2002: 105 5.375%, 4/01/19 4/12 at 100.00 AAA 113,829 800 5.000%, 4/01/27 4/12 at 100.00 AAA 828,256 1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,829,791 Refunding Bonds, Series 1999, 5.000%, 5/01/28 1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,045,640 Sewerage System Revenue Bonds, Series 2004, 5.000%, 1/01/26 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** 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 AAA $ 1,377,620 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,445,821 1,955 Rivanna Water and Sewerage Authority, Virginia, Regional 10/09 at 101.00 AA 2,096,601 Water and Sewerage System Revenue Bonds, Series 1999, 5.625%, 10/01/29 2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,490,323 Series 2000, 6.000%, 9/01/24 ------------------------------------------------------------------------------------------------------------------------------------ $ 185,600 Total Long-Term Investments (cost $189,148,005) - 144.8% 197,054,990 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 2,857,840 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.9)% (63,800,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 136,112,830 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (a) The issuer has received a preliminary adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. See accompanying notes to financial statements. 45 Nuveen Virginia Dividend Advantage Municipal Fund (NGB) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.7% (3.2% OF TOTAL INVESTMENTS) Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: $ 85 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 85,932 850 5.400%, 5/15/31 5/11 at 100.00 Baa3 859,775 Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: 550 5.250%, 6/01/19 6/15 at 100.00 BBB 555,946 725 5.500%, 6/01/26 6/15 at 100.00 BBB 732,750 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 13.9% (9.4% OF TOTAL INVESTMENTS) 500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 507,160 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 517,100 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 913,113 Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 160 5.375%, 2/01/19 2/09 at 101.00 BBB- 163,130 320 5.375%, 2/01/29 2/09 at 101.00 BBB- 321,622 330 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 327,515 Horse Center Revenue Refunding Bonds, Series 2001B, 6.125%, 7/15/11 1,000 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 1,000,810 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 160 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 171,694 Revenue Bonds, Series 2005, 5.000%, 6/01/18 700 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 756,154 Revenue Bonds, Public Higher Education Financing Program, Series 2004B, 5.000%, 9/01/13 1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,394,947 Revenue Bonds, Public Higher Education Financing Program, Series 2000A, 5.000%, 9/01/17 500 Virginia College Building Authority, Educational Facilities 7/08 at 101.00 AA 512,175 Revenue Refunding Bonds, Marymount University, Series 1998, 5.100%, 7/01/18 - RAAI Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 10.8% (7.2% OF TOTAL INVESTMENTS) 1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 1,045,220 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 1,500 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 1,566,105 Hospital Facilities Revenue Refunding Bonds, MediCorp Health System Obligated Group, Series 1996, 5.250%, 6/15/16 - AMBAC Insured 500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 506,360 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 521,100 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 575 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 589,910 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 860,768 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured 46 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.4% (2.9% OF TOTAL INVESTMENTS) $ 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA $ 1,027,100 Multifamily Housing Mortgage Revenue Bonds, Arlington View Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Alternative Minimum Tax) (Mandatory put 11/01/19) 1,000 Virginia Housing Development Authority, Rental Housing Bonds, 10/10 at 100.00 AA+ 1,037,560 Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS) 1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,027,510 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.1% (0.1% OF TOTAL INVESTMENTS) 50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 51,097 Solid Waste Disposal Facility Revenue Refunding Bonds, USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.4% (3.0% OF TOTAL INVESTMENTS) 500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R 517,945 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 350 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 346,595 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 690,495 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 350 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 347,617 Care Facility Mortgage Revenue Bonds, Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22 175 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 175,886 Residential Care Facility Revenue Bonds, Westminster- Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.7% (1.0% OF TOTAL INVESTMENTS) 100 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba2 94,377 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (a) 20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 Ba2 20,457 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1999A, 6.550%, 12/01/25 (Alternative Minimum Tax) 220 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba2 207,053 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (a) 500 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 481,255 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 30.9% (20.8% OF TOTAL INVESTMENTS) 330 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 357,981 5.000%, 6/15/13 300 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 323,766 5.000%, 12/15/11 500 Arlington County, Virginia, General Obligation Bonds, 5/15 at 100.00 AAA 542,530 Series 2005, 5.000%, 5/15/16 2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,095,540 Improvement Bonds, Series 2001, 5.000%, 1/15/21 500 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 543,135 Series 2005, 5.000%, 7/15/16 3,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,508,037 Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured 660 Loudoun County, Virginia, General Obligation Public No Opt. Call Aaa 717,288 Improvement Bonds, Series 2005A, 5.000%, 7/01/14 500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 Aaa 537,365 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 845 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 911,096 Series 2004C, 5.000%, 5/01/16 320 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 336,771 Series 2000A, 6.000%, 6/01/20 - ACA Insured 47 Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 500 Portsmouth, Virginia, General Obligation Bonds, Series 2003, No Opt. Call AAA $ 539,335 5.000%, 7/01/12 - FSA Insured Richmond, Virginia, General Obligation Bonds, Series 2005A: 620 5.000%, 7/15/17 - FSA Insured 7/15 at 100.00 AAA 666,791 500 5.000%, 7/15/20 - FSA Insured 7/15 at 100.00 AAA 532,395 400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 434,324 5.000%, 12/01/15 2,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,556,217 Improvement Bonds, Series 2001, 5.000%, 6/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 22.9% (15.4% OF TOTAL INVESTMENTS) 271 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 286,390 Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 554,565 Revenue Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 124,350 95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 99,053 580 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 613,953 County Facilities, Series 2005, 5.000%, 6/01/20 - AMBAC Insured 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,065,590 Virginia, Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,069,680 Taxes Loan Note, Series 1999A, 6.375%, 10/01/19 500 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 538,295 Revenue Bonds, Series 2005A, 5.000%, 5/01/16 500 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 533,940 Revenue Bonds, 21st Century College Program, Series 2004A, 5.000%, 2/01/11 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 523,145 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 800 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 866,472 Highway Reimbursement Anticipation Notes, Series 2005, 5.000%, 9/28/15 350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 382,939 Prince William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 750 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 804,173 Bonds, Series 2004B, 5.000%, 8/01/11 800 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 863,864 1997 Resolution, Series 2004C, 5.000%, 8/01/13 345 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 371,130 1997 Resolution, Series 2005C, 5.000%, 8/01/17 2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,110,060 1997 Resolution, Series 2001A, 5.000%, 8/01/19 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 22.6% (15.2% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Richmond, Virginia, 7/15 at 100.00 AAA 1,061,340 Revenue Bonds, Richmond International Airport, Series 2005A, 5.000%, 7/01/18 - FSA Insured 1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,154,120 General Resolution Revenue Refunding Bonds, Series 1998, 5.500%, 7/01/25 - MBIA Insured 3,000 Metropolitan Washington D.C. Airports Authority, 10/11 at 101.00 AAA 3,165,270 Airport System Revenue Bonds, Series 2001A, 5.500%, 10/01/27 (Alternative Minimum Tax) - MBIA Insured 250 Metropolitan Washington D.C. Airports Authority, 10/11 at 101.00 AAA 259,730 Airport System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 - MBIA Insured 1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,542,810 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 48 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) Pocahontas Parkway Association, Virginia, Senior Lien Revenue Bonds, Route 895 Connector Toll Road, Series 1998A: $ 200 5.250%, 8/15/07 No Opt. Call BB- $ 204,060 200 5.500%, 8/15/28 8/08 at 102.00 BB- 206,246 500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 556,930 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,292,351 Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,271,925 Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 22.3% (15.0% OF TOTAL INVESTMENTS) 1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102.00 AAA 1,065,250 Series 2001, 5.000%, 7/15/21 - FSA Insured 485 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 513,804 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 1,540 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 Aaa 1,677,060 Improvement Bonds, Series 2001B, 5.250%, 1/01/20 (Pre-refunded to 1/01/11) 425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB*** 477,883 Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A, 6.000%, 6/01/22 (Pre-refunded to 6/01/12) 1,000 Newport News, Virginia, General Obligation Bonds, 5/10 at 102.00 AA*** 1,104,650 Series 2000A, 5.625%, 5/01/16 (Pre-refunded to 5/01/10) 1,000 Norfolk Industrial Development Authority, Virginia, Healthcare 8/07 at 102.00 AAA 1,049,970 Revenue Bonds, Bon Secours Health System, Series 1997, 5.250%, 8/15/26 (Pre-refunded to 8/15/07) - MBIA Insured Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,614,795 1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,614,795 1,300 Richmond, Virginia, General Obligation Refunding and 1/10 at 101.00 AAA 1,393,870 Public Improvement Bonds, Series 1999A, 5.125%, 1/15/24 (Pre-refunded to 1/15/10) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.5% (2.3% OF TOTAL INVESTMENTS) 1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 1,119,900 Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) 500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/12 at 100.00 AAA 515,250 Series 2002, 5.000%, 1/15/27 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 4.4% (3.0% OF TOTAL INVESTMENTS) 2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,083,940 Refunding Bonds, Series 1999, 5.000%, 5/01/22 ------------------------------------------------------------------------------------------------------------------------------------ $ 66,501 Total Long-Term Investments (cost $67,547,386) - 148.8% 70,290,352 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 932,031 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.8)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 47,222,383 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (a) The issuer has received a preliminary adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. See accompanying notes to financial statements. 49 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.3% (3.0% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: $ 1,050 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,061,351 2,700 5.500%, 6/01/26 6/15 at 100.00 BBB 2,728,863 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 8.7% (6.0% OF TOTAL INVESTMENTS) 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,059,940 Revenue Bonds, National Wildlife Federation, Series 1999, 5.375%, 9/01/29 - MBIA Insured 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,034,200 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 1,545,705 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 500 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 500,405 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 275 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 295,100 Revenue Bonds, Series 2005, 5.000%, 6/01/18 1,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 1,080,220 Revenue Bonds, Public Higher Education Financing Program, Series 2004B, 5.000%, 9/01/13 2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,110,400 Educational Facilities First Mortgage Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 17.4% (11.9% OF TOTAL INVESTMENTS) 1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,530,165 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,135,660 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 683,586 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,042,200 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,155 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 1,184,949 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 1,000 Medical College of Virginia Hospital Authority, General 7/08 at 102.00 AAA 1,059,500 Revenue Bonds, Series 1998, 5.250%, 7/01/14 - MBIA Insured 1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,291,152 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured 1,000 Prince William County Industrial Development Authority, 10/08 at 102.00 Aaa 1,041,470 Virginia, Hospital Facility Revenue Refunding Bonds, Potomac Hospital Corporation of Prince William, Series 1998, 5.000%, 10/01/18 - FSA Insured 3,915 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 4,194,570 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.8% (6.1% OF TOTAL INVESTMENTS) 7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,690,912 Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured 50 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.7% (2.5% OF TOTAL INVESTMENTS) $ 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R $ 170,922 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 650 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 643,676 Mortgage Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,434,105 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 650 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 645,574 Care Facility Mortgage Revenue Bonds, Westminster Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22 325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 326,645 Residential Care Facility Revenue Bonds, Westminster- Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS) 165 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba2 155,722 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) (a) 460 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba2 432,929 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) (a) 1,000 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 962,510 Environmental Improvement Revenue Bonds, Smurfit Stone Container Corporation, Series 2005, 5.250%, 6/01/15 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 38.5% (26.5% OF TOTAL INVESTMENTS) 600 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 650,874 5.000%, 6/15/13 540 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 582,779 5.000%, 12/15/11 1,000 Arlington County, Virginia, General Obligation Bonds, 5/15 at 100.00 AAA 1,085,060 Series 2005, 5.000%, 5/15/16 1,750 Chesapeake, Virginia, General Obligation Bonds, 12/11 at 100.00 AA 1,918,665 Series 2001, 5.500%, 12/01/16 1,200 Loudoun County, Virginia, General Obligation Public No Opt. Call Aaa 1,304,160 Improvement Bonds, Series 2005A, 5.000%, 7/01/14 95 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 102,291 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 1,000 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 Aaa 1,074,730 Improvement Bonds, Series 2005B, 5.000%, 6/01/18 1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 Aaa 1,776,001 Improvement Bonds, Series 2001C, 4.500%, 11/01/17 1,840 Newport News, Virginia, General Obligation Bonds, General 7/13 at 100.00 AA 1,944,015 Improvement and Water Projects, Series 2002A, 5.000%, 7/01/20 1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA 1,054,080 Series 2003B, 5.000%, 11/01/22 565 Portsmouth, Virginia, General Obligation Public Utility 6/08 at 100.00 AAA 581,860 Refunding Bonds, Series 2001B, 5.000%, 6/01/21 - FGIC Insured 1,500 Portsmouth, Virginia, General Obligation Bonds, No Opt. Call AAA 1,618,005 Series 2003, 5.000%, 7/01/12 - FSA Insured Powhatan County, Virginia, General Obligation Bonds, Series 2001: 660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 688,552 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,029,420 1,000 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,057,710 5.000%, 7/15/21 - FSA Insured 1,000 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 1,064,790 5.000%, 7/15/20 - FSA Insured Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002A: 2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,556,144 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,589,209 1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,360,435 Bonds, Series 2002B, 5.000%, 10/01/15 (Alternative Minimum Tax) - FGIC Insured 51 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Salem, Virginia, General Obligation Public Improvement Bonds, Series 2002: $ 1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 $ 1,229,902 1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,288,980 1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,353,429 1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,423,249 1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,174,500 6.250%, 2/01/25 - AMBAC Insured 1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,581,840 Bonds, Series 2001, 5.000%, 6/01/19 1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AA+ 1,501,977 Public Improvement Bonds, Series 2002, 5.000%, 3/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 26.4% (18.1% OF TOTAL INVESTMENTS) 501 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 529,452 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 1,109,130 Revenue Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 217,613 165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 172,039 1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA 1,906,074 Lease Revenue Refunding Bonds, Public Facility Project, Series 2003, 5.000%, 3/01/19 400 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 BBB 409,364 Government Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 472,540 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,065,590 Virginia, Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 800 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 861,272 Revenue Bonds, Series 2005A, 5.000%, 5/01/16 1,000 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 1,067,880 Revenue Bonds, 21st Century College Program, Series 2004A, 5.000%, 2/01/11 1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,872,859 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 800 Commonwealth Transportation Board of Virginia, No Opt. Call AA 866,472 Federal Highway Reimbursement Anticipation Notes, Series 2005, 5.000%, 9/28/15 1,710 Virginia Transportation Board, Transportation Revenue 5/11 at 100.00 AA+ 1,754,682 Bonds, Northern Virginia Transportation District Program, Series 2001A, 5.000%, 5/15/26 Virginia Transportation Board, Transportation Revenue Bonds, U.S. Route 58 Corridor Development Program, Series 2001B: 1,705 5.000%, 5/15/22 5/11 at 100.00 AA+ 1,784,777 1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,738,593 690 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 754,936 Prince William County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 1,000 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 1,072,230 Bonds, Series 2004B, 5.000%, 8/01/11 700 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 755,881 1997 Resolution, Series 2004C, 5.000%, 8/01/13 570 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 613,172 1997 Resolution, Series 2005C, 5.000%, 8/01/17 2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,679,776 1997 Resolution, Series 2001B, 5.000%, 8/01/19 1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,300,888 Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26 52 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 2.3% (1.6% OF TOTAL INVESTMENTS) $ 1,000 Metropolitan Washington D.C. Airports Authority, 10/12 at 100.00 AAA $ 1,025,300 Airport System Revenue Bonds, Series 2002A, 5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured Pocahontas Parkway Association, Virginia, Senior Lien Revenue Bonds, Route 895 Connector Toll Road, Series 1998A: 300 5.250%, 8/15/07 No Opt. Call BB- 306,090 325 5.500%, 8/15/28 8/08 at 102.00 BB- 335,150 300 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 318,708 Bonds, Series 2001A, 5.250%, 8/01/17 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED*** - 12.1% (8.3% OF TOTAL INVESTMENTS) 1,000 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 1,081,980 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured 1,000 Fairfax County, Virginia, General Obligation Refunding and 6/10 at 101.00 AAA 1,072,790 Improvement Bonds, Series 2002, 5.000%, 6/01/20 (Pre-refunded to 6/01/10) 195 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 209,364 Refunding Bonds, Series 2002, 5.000%, 4/01/27 (Pre-refunded to 4/01/12) 445 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 484,823 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 (Pre-refunded to 5/01/12) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: 250 6.000%, 6/01/22 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** 281,108 600 6.100%, 6/01/32 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** 678,072 2,750 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,960,458 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 1,100 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 BBB*** 1,187,802 Government Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 (Pre-refunded to 7/01/12) 1,345 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 1,474,120 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded to 2/01/12) 500 Virginia Beach, Virginia, Water and Sewerage System 8/10 at 100.00 AA*** 535,320 Revenue Bonds, Series 2000, 5.125%, 8/01/14 (Pre-refunded to 8/01/10) 500 Virginia Public Building Authority, Public Facilities Revenue 8/10 at 100.00 AA+*** 548,680 Bonds, Series 2000A, 5.750%, 8/01/20 (Pre-refunded to 8/01/10) ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.4% (4.4% OF TOTAL INVESTMENTS) 2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 2,239,800 Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) 3,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,327,875 Series 2000HH, 5.250%, 7/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 15.2% (10.4% OF TOTAL INVESTMENTS) 805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 833,433 Refunding Bonds, Series 2002, 5.000%, 4/01/27 Henry County Public Service Authority, Virginia, Water and Sewerage Revenue Refunding Bonds, Series 2001: 1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,126,730 3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,413,820 Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,195,472 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,256,364 1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,515,990 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,591,307 53 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued) Portfolio of INVESTMENTS November 30, 2005 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA $ 2,305,234 Revenue Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 ------------------------------------------------------------------------------------------------------------------------------------ $ 120,016 Total Long-Term Investments (cost $121,539,165) - 145.6% 126,946,098 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 2,223,119 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.2)% (42,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 87,169,217 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE APPRECIATION ==================================================================================================================================== Citigroup $700,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $45,014 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (a) The issuer has received a preliminary adverse determination from the Internal Revenue Service (the "IRS") regarding the tax-exempt status of the bonds' coupon payments. The Fund will continue to treat coupon payments as tax-exempt income until such time that it is formally determined that the interest on the bonds should be treated as taxable. See accompanying notes to financial statements. 54 Statement of ASSETS AND LIABILITIES November 30, 2005 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $224,153,204, $88,673,116, $90,097,608 and $112,903,634, respectively) $231,195,721 $91,274,666 $93,145,153 $114,789,733 Cash -- -- -- -- Receivables: Interest 4,224,811 1,608,986 1,525,110 1,729,296 Investments sold -- 614,526 233,650 -- Unrealized appreciation on forward swaps -- -- 19,292 157,515 Other assets 13,452 3,228 762 881 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 235,433,984 93,501,406 94,923,967 116,677,425 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 534,527 62,337 157,668 206,295 Payable for investments purchased 96,470 -- -- -- Accrued expenses: Management fees 122,034 26,069 26,435 30,572 Other 63,465 21,177 24,773 28,550 Preferred share dividends payable 40,204 4,927 7,890 3,152 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 856,700 114,510 216,766 268,569 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000 ==================================================================================================================================== Net assets applicable to Common shares $155,477,284 $61,386,896 $62,707,201 $ 77,408,856 ==================================================================================================================================== Common shares outstanding 10,623,525 4,168,560 4,177,476 5,359,275 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.64 $ 14.73 $ 15.01 $ 14.44 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 106,235 $ 41,686 $ 41,775 $ 53,593 Paid-in surplus 147,548,696 59,134,773 59,265,488 75,640,534 Undistributed (Over-distribution of) net investment income 609,429 275,254 367,547 70,854 Accumulated net realized gain (loss) from investments and forward swaps 170,407 (666,367) (34,446) (399,739) Net unrealized appreciation (depreciation) of investments and forward swaps 7,042,517 2,601,550 3,066,837 2,043,614 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $155,477,284 $61,386,896 $62,707,201 $ 77,408,856 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 55 Statement of ASSETS AND LIABILITIES (Unaudited) (continued)
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $189,148,005, $67,547,386 and $121,539,165, respectively) $197,054,990 $70,290,352 $126,946,098 Cash -- -- 409,397 Receivables: Interest 3,095,060 1,083,439 1,833,738 Investments sold 5,000 -- -- Unrealized appreciation on forward swaps -- -- 45,014 Other assets 15,151 3,153 1,732 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 200,170,201 71,376,944 129,235,979 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 84,387 100,849 -- Payable for investments purchased -- -- -- Accrued expenses: Management fees 104,233 19,880 35,996 Other 54,613 19,634 30,766 Preferred share dividends payable 14,138 14,198 -- ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 257,371 154,561 66,762 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000 ==================================================================================================================================== Net assets applicable to Common shares $136,112,830 $47,222,383 $ 87,169,217 ==================================================================================================================================== Common shares outstanding 8,886,034 3,124,944 5,712,678 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.32 $ 15.11 $ 15.26 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 88,860 $ 31,249 $ 57,127 Paid-in surplus 125,054,114 44,307,018 81,126,384 Undistributed (Over-distribution of) net investment income 700,321 279,771 406,566 Accumulated net realized gain (loss) from investments and forward swaps 2,362,550 (138,621) 127,193 Net unrealized appreciation (depreciation) of investments and forward swaps 7,906,985 2,742,966 5,451,947 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $136,112,830 $47,222,383 $ 87,169,217 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 56 Statement of OPERATIONS Six Months Ended November 30, 2005 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 5,707,652 $ 2,241,403 $ 2,207,805 $ 2,585,015 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 754,235 302,741 307,134 377,356 Preferred shares - auction fees 99,146 40,110 40,110 48,884 Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 5,014 Shareholders' servicing agent fees and expenses 14,008 1,211 799 675 Custodian's fees and expenses 32,922 15,590 14,686 17,499 Trustees' fees and expenses 2,268 1,118 1,049 1,247 Professional fees 8,915 6,101 6,174 6,547 Shareholders' reports - printing and mailing expenses 21,604 8,156 8,711 10,562 Stock exchange listing fees 5,252 178 178 229 Investor relations expense 16,201 6,222 6,360 8,000 Other expenses 9,368 6,865 6,787 7,336 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 973,946 393,306 397,002 483,349 Custodian fee credit (8,806) (4,299) (4,367) (5,942) Expense reimbursement -- (141,893) (143,952) (188,655) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 965,140 247,114 248,683 288,752 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 4,742,512 1,994,289 1,959,122 2,296,263 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 287,700 54,903 10,384 156,553 Net realized gain (loss) from forward swaps -- (62,612) (92,720) (192,334) Change in net unrealized appreciation (depreciation) of investments (5,103,115) (1,637,594) (1,730,896) (2,310,905) Change in net unrealized appreciation (depreciation) of forward swaps -- 64,747 118,054 352,391 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (4,815,415) (1,580,556) (1,695,178) (1,994,295) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (837,513) (326,782) (322,457) (422,682) From accumulated net realized gains from investments -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (837,513) (326,782) (322,457) (422,682) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ (910,416) $ 86,951 $ (58,513) $ (120,714) ====================================================================================================================================
See accompanying notes to financial statements. 57 Statement of OPERATIONS (Unaudited) (continued)
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 4,779,587 $ 1,712,681 $ 3,037,633 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 644,732 231,165 419,014 Preferred shares - auction fees 79,968 30,082 52,644 Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 Shareholders' servicing agent fees and expenses 12,099 808 1,029 Custodian's fees and expenses 33,642 14,527 21,918 Trustees' fees and expenses 2,256 711 1,575 Professional fees 8,861 6,218 6,860 Shareholders' reports - printing and mailing expenses 17,309 6,717 10,328 Stock exchange listing fees 5,268 133 243 Investor relations expense 13,577 4,709 8,355 Other expenses 7,726 6,705 7,539 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 835,465 306,789 534,519 Custodian fee credit (14,029) (5,019) (10,357) Expense reimbursement -- (108,346) (196,556) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 821,436 193,424 327,606 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 3,958,151 1,519,257 2,710,027 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 1,408,665 189,248 216,727 Net realized gain (loss) from forward swaps -- -- (197,186) Change in net unrealized appreciation (depreciation) of investments (5,539,533) (1,373,461) (2,639,351) Change in net unrealized appreciation (depreciation) of forward swaps -- -- 261,242 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (4,130,868) (1,184,213) (2,358,568) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (628,859) (227,645) (445,817) From accumulated net realized gains from investments -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (628,859) (227,645) (445,817) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ (801,576) $ 107,399 $ (94,358) ====================================================================================================================================
See accompanying notes to financial statements. 58 Statement of CHANGES IN NET ASSETS (Unaudited)
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) ---------------------------- ----------------------------- ---------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,742,512 $ 9,757,516 $ 1,994,289 $ 4,077,418 $ 1,959,122 $ 3,931,942 Net realized gain (loss) from investments 287,700 795,306 54,903 114,678 10,384 274,944 Net realized gain (loss) from forward swaps -- -- (62,612) (186,945) (92,720) (171,422) Change in net unrealized appreciation (depreciation) of investments (5,103,115) 9,023,910 (1,637,594) 3,306,967 (1,730,896) 3,746,058 Change in net unrealized appreciation (depreciation) of forward swaps -- -- 64,747 (64,747) 118,054 (98,762) Distributions to Preferred Shareholders: From net investment income (837,513) (1,044,071) (326,782) (417,536) (322,457) (392,360) From accumulated net realized gains from investments -- -- -- -- -- (15,798) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (910,416) 18,532,661 86,951 6,829,835 (58,513) 7,274,602 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,284,699) (9,572,060) (1,787,907) (3,885,205) (1,785,174) (3,655,367) From accumulated net realized gains from investments -- -- -- -- -- (256,385) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,284,699) (9,572,060) (1,787,907) (3,885,205) (1,785,174) (3,911,752) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 175,963 429,038 36,358 65,542 51,209 56,507 Preferred shares offering costs -- -- -- -- -- 16,302 ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 175,963 429,038 36,358 65,542 51,209 72,809 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (5,019,152) 9,389,639 (1,664,598) 3,010,172 (1,792,478) 3,435,659 Net assets applicable to Common shares at the beginning of period 160,496,436 151,106,797 63,051,494 60,041,322 64,499,679 61,064,020 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $155,477,284 $160,496,436 $61,386,896 $63,051,494 $62,707,201 $64,499,679 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 609,429 $ 989,129 $ 275,254 $ 395,654 $ 367,547 $ 516,056 ====================================================================================================================================
59 See accompanying notes to financial statements. Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) ---------------------------- ----------------------------- ---------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,296,263 $ 4,588,042 $ 3,958,151 $ 8,242,308 $ 1,519,257 $ 3,106,588 Net realized gain (loss) from investments 156,553 94,606 1,408,665 1,338,639 189,248 277,377 Net realized gain (loss) from forward swaps (192,334) (447,668) -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (2,310,905) 5,755,731 (5,539,533) 6,847,395 (1,373,461) 3,250,753 Change in net unrealized appreciation (depreciation) of forward swaps 352,391 (194,876) -- -- -- -- Distributions to Preferred Shareholders: From net investment income (422,682) (514,154) (628,859) (765,695) (227,645) (282,554) From accumulated net realized gains from investments -- (2,976) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (120,714) 9,278,705 (801,576) 15,662,647 107,399 6,352,164 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,913,262) (4,164,157) (3,676,326) (7,997,824) (1,382,532) (2,913,141) From accumulated net realized gains from investments -- (40,734) -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,913,262) (4,204,891) (3,676,326) (7,997,824) (1,382,532) (2,913,141) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 250,336 553,214 23,902 46,268 Preferred shares offering costs -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions -- -- 250,336 553,214 23,902 46,268 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (2,033,976) 5,073,814 (4,227,566) 8,218,037 (1,251,231) 3,485,291 Net assets applicable to Common shares at the beginning of period 79,442,832 74,369,018 140,340,396 132,122,359 48,473,614 44,988,323 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $77,408,856 $79,442,832 $136,112,830 $140,340,396 $47,222,383 $48,473,614 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 70,854 $ 110,535 $ 700,321 $ 1,047,355 $ 279,771 $ 370,691 ====================================================================================================================================
See accompanying notes to financial statements. 60 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ---------------------------- SIX MONTHS ENDED YEAR ENDED 11/30/05 5/31/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,710,027 $ 5,449,338 Net realized gain (loss) from investments 216,727 886,193 Net realized gain (loss) from forward swaps (197,186) (378,231) Change in net unrealized appreciation (depreciation) of investments (2,639,351) 6,118,300 Change in net unrealized appreciation (depreciation) of forward swaps 261,242 (216,228) Distributions to Preferred Shareholders: From net investment income (445,817) (505,130) From accumulated net realized gains from investments -- (60,997) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (94,358) 11,293,245 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,450,068) (5,047,084) From accumulated net realized gains from investments -- (1,070,956) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,450,068) (6,118,040) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 77,542 202,523 Preferred shares offering costs 10,038 -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 87,580 202,523 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (2,456,846) 5,377,728 Net assets applicable to Common shares at the beginning of period 89,626,063 84,248,335 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $87,169,217 $89,626,063 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ 406,566 $ 592,424 ====================================================================================================================================
See accompanying notes to financial statements. 61 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Maryland Premium Income Municipal Fund (NMY), Nuveen Maryland Dividend Advantage Municipal Fund (NFM), Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR), Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI), Nuveen Virginia Premium Income Municipal Fund (NPV), Nuveen Virginia Dividend Advantage Municipal Fund (NGB) and Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB). Common shares of Maryland Premium Income (NMY) and Virginia Premium Income (NPV) are traded on the New York Stock Exchange while Common shares of Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI), Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Trustees. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. Prices of derivative investments are also provided by an independent pricing service approved by each Fund's Board of Trustees. If the pricing service is unable to supply a price for a municipal bond or derivative investment, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment is unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2005, Maryland Premium Income (NMY) had an outstanding delayed delivery purchase commitment of $47,260. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. 62 Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) -------------------------------------------------------------------------------- Number of shares: Series M -- 1,280 -- -- Series T -- -- -- 1,560 Series W 1,404 -- -- -- Series TH 1,760 -- -- -- Series F -- -- 1,280 -- -------------------------------------------------------------------------------- Total 3,164 1,280 1,280 1,560 ================================================================================ VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) -------------------------------------------------------------------------------- Number of shares: Series M -- -- 1,680 Series T 832 -- -- Series W -- 960 -- Series TH 1,720 -- -- Series F -- -- -- -------------------------------------------------------------------------------- Total 2,552 960 1,680 ================================================================================ 63 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Forward Swap Transactions The Funds are authorized to invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to mitigate the negative impact that an increase in long-term interest rates could have on Common share net asset value. Forward interest rate swap transactions involve each Fund's agreement with the counterparty to pay, in the future, a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment, the 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 would increase or decrease in value based primarily on the extent to which long-term interest rates for bonds having a maturity of the swaps' termination date were to increase or decrease. The Funds may close out a contract prior to the effective date, at which point a realized gain or loss would be recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To minimize such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, their Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 64 2. FUND SHARES Transactions in Common shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) ----------------------- ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05 --------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 11,243 27,491 2,279 4,162 3,229 3,606 =============================================================================================================== MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) ----------------------- ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05 --------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- 14,423 33,307 1,358 2,761 =============================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------------- SIX MONTHS ENDED YEAR ENDED 11/30/05 5/31/05 --------------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions 3,952 12,458 ===============================================================================================================
3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the six months ended November 30, 2005, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) --------------------------------------------------------------------------------------------------------- Purchases $11,921,367 $7,132,685 $6,807,020 $10,232,768 Sales and maturities 11,196,873 7,362,606 7,115,270 9,257,165 ========================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) --------------------------------------------------------------------------------------------------------- Purchases $22,970,694 $6,570,504 $7,000,024 Sales and maturities 22,512,309 6,503,566 8,561,790 =========================================================================================================
65 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions. At November 30, 2005, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ----------------------------------------------------------------------------------------------------------- Cost of investments $223,946,165 $88,771,204 $90,140,143 $113,128,120 =========================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ----------------------------------------------------------------------------------------------------------- Cost of investments $188,909,132 $67,522,532 $121,797,988 ===========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2005, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ----------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 8,924,917 $2,963,183 $3,300,128 $2,466,270 Depreciation (1,675,361) (459,721) (295,118) (804,657) ----------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 7,249,556 $2,503,462 $3,005,010 $1,661,613 =========================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ----------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $8,784,930 $2,955,444 $5,758,814 Depreciation (639,072) (187,624) (610,704) ----------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $8,145,858 $2,767,820 $5,148,110 ===========================================================================================================
66 The tax components of undistributed net investment income and net realized gains at May 31, 2005, the Funds' last fiscal year end, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ----------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $1,385,615 $691,669 $794,023 $446,690 Undistributed net ordinary income ** -- -- 106 -- Undistributed net long-term capital gains 2,980 -- 126,916 -- =========================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ----------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $1,474,901 $591,228 $954,043 Undistributed net ordinary income ** -- -- -- Undistributed net long-term capital gains 953,885 -- 422,949 ===========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared May 2, 2005, paid on June 1, 2005. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal year ended May 31, 2005, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) ----------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $10,630,390 $4,316,846 $4,052,176 $4,686,785 Distributions from net ordinary income ** -- -- 17,820 108 Distributions from net long-term capital gains -- -- 254,971 43,198 =========================================================================================================== VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) ----------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $8,771,875 $3,200,407 $5,574,792 Distributions from net ordinary income ** -- -- -- Distributions from net long-term capital gains -- -- 1,131,953 ===========================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 67 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) At May 31, 2005, the Funds' last fiscal year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: MARYLAND VIRGINIA DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE (NFM) (NGB) -------------------------------------------------------------------------------- Expiration year: 2009 $ 7,580 $ -- 2010 37,159 12,972 2011 -- 32,605 2012 430,282 282,292 -------------------------------------------------------------------------------- Total $475,021 $327,869 ================================================================================ At May 31, 2005, the Funds' last fiscal year end, the following Funds elected to defer net realized losses from investments incurred from November 1, 2004 through May 31, 2005 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses were treated as having arisen on the first day of the current fiscal year: MARYLAND MARYLAND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 3 (NFM) (NWI) -------------------------------------------------------------------------------- $59,987 $119,983 ================================================================================ 68 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS MARYLAND PREMIUM INCOME (NMY) (INCLUDING NET ASSETS VIRGINIA PREMIUM INCOME (NPV) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ MARYLAND DIVIDEND ADVANTAGE (NFM) MARYLAND DIVIDEND ADVANTAGE 2 (NZR) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) AVERAGE DAILY NET ASSETS VIRGINIA DIVIDEND ADVANTAGE (NGB) (INCLUDING NET ASSETS VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ 69 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of November 30, 2005, the complex-level fee rate was .1898%. COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion (2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. 70 The management fee compensates the Adviser for overall investment advisory and administrative services and general Office facilities. The Funds pay no compensation directly to those of its Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and Virginia Dividend Advantage (NGB) for any portion of its fees and expenses beyond January 31, 2011. For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for any portion of its fees and expenses beyond September 30, 2010. 71 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for any portion of its fees and expenses beyond November 30, 2011. 6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an additional $400 million of its Nuveen shares on a "forward" basis with payment for and settlement of these shares delayed for several months, and (D) entered into agreements with two unaffiliated investment banking firms to sell an amount equal to most or all of its remaining Nuveen shares for current payment but for future settlement. Transactions (C) and (D) above were settled in late July, which effectively reduced St. Paul Travelers' controlling stake in Nuveen and was deemed an "assignment" (as defined in the 1940 Act) of the investment management agreements between the Funds and the Adviser, which resulted in the automatic termination of each agreement under the 1940 Act. In anticipation of such deemed assignment, the Board of Trustees had approved new ongoing investment management agreements for each Fund and the submission of those agreements for approval by each respective Fund's shareholders, which shareholder approval was received prior to the settlement of transactions (C) and (D). The new ongoing management agreements took effect upon such settlement. 72 7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 30, 2005, to shareholders of record on December 15, 2005, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) --------------------------------------------------------------------------------------------------------- Dividend per share $.0620 $.0715 $.0695 $.0595 ========================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) --------------------------------------------------------------------------------------------------------- Dividend per share $.0655 $.0720 $.0715 =========================================================================================================
At the same time, the following Funds declared capital gains and/or ordinary income distributions as follows:
MARYLAND MARYLAND VIRGINIA VIRGINIA PREMIUM DIVIDEND PREMIUM DIVIDEND INCOME ADVANTAGE 2 INCOME ADVANTAGE 2 (NMY) (NZR) (NPV) (NNB) --------------------------------------------------------------------------------------------------------- Capital gains distributions per share .0245 .0275 .2431 .0666 Ordinary income distributions per share* .0069 .0001 -- -- =========================================================================================================
* Ordinary income consists of taxable market discount income and net short-term capital gains, if any. 73 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) $15.12 $ .45 $ (.45) $(.08) $ -- $ (.08) $(.40) $ -- $(.40) 2005 14.28 .92 .92 (.10) -- 1.74 (.90) -- (.90) 2004 15.10 .96 (.81) (.06) -- .09 (.91) -- (.91) 2003 14.04 1.02 1.00 (.07) -- 1.95 (.89) -- (.89) 2002 13.83 1.03 .14 (.13) -- 1.04 (.83) -- (.83) 2001 12.83 1.03 1.01 (.25) -- 1.79 (.79) -- (.79) MARYLAND DIVIDEND ADVANTAGE (NFM) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) 15.13 .48 (.37) (.08) -- .03 (.43) -- (.43) 2005 14.43 .98 .75 (.10) -- 1.63 (.93) -- (.93) 2004 15.47 1.01 (1.07) (.05) -- (.11) (.93) -- (.93) 2003 14.18 1.04 1.18 (.08) -- 2.14 (.86) -- (.86) 2002 13.90 1.04 .22 (.14) -- 1.12 (.84) -- (.84) 2001(b) 14.33 .22 (.25) (.05) -- (.08) (.21) -- (.21) MARYLAND DIVIDEND ADVANTAGE 2 (NZR) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) 15.45 .47 (.40) (.08) -- (.01) (.43) -- (.43) 2005 14.64 .94 .90 (.09) -- 1.75 (.88) (.06) (.94) 2004 15.71 .96 (1.08) (.06) -- (.18) (.87) (.02) (.89) 2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81) 2002(c) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) 14.82 .43 (.37) (.08) -- (.02) (.36) -- (.36) 2005 13.88 .86 .97 (.10) -- 1.73 (.78) (.01) (.79) 2004 14.89 .87 (1.03) (.06) -- (.22) (.79) -- (.79) 2003(d) 14.33 .52 .75 (.05) -- 1.22 (.46) -- (.46) ==================================================================================================================================== Total Returns ------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** =========================================================================================== MARYLAND PREMIUM INCOME (NMY) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) $ -- $14.64 $14.45 (6.01)% (0.51)% 2005 -- 15.12 15.78 15.64 12.52 2004 -- 14.28 14.45 (10.77) .64 2003 -- 15.10 17.15 15.22 14.33 2002 -- 14.04 15.73 4.77 7.71 2001 -- 13.83 15.85 26.24 14.18 MARYLAND DIVIDEND ADVANTAGE (NFM) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) -- 14.73 14.77 (2.91) 0.19 2005 -- 15.13 15.63 6.22 11.60 2004 -- 14.43 15.62 2.99 (.69) 2003 .01 15.47 16.08 9.98 15.55 2002 -- 14.18 15.44 1.98 8.21 2001(b) (.14) 13.90 15.99 8.02 (1.53) MARYLAND DIVIDEND ADVANTAGE 2 (NZR) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) -- 15.01 15.72 4.80 (0.09) 2005 -- 15.45 15.41 14.71 12.22 2004 -- 14.64 14.28 (2.90) (1.16) 2003 .01 15.71 15.60 12.71 18.39 2002(c) (.15) 14.01 14.61 .52 1.01 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) -- 14.44 13.98 (0.49) (0.16) 2005 -- 14.82 14.40 14.98 12.67 2004 -- 13.88 13.24 (5.97) (1.51) 2003(d) (.20) 14.89 14.90 2.53 7.31 =========================================================================================== Ratios/Supplemental Data ---------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ============================================================================================================================= MARYLAND PREMIUM INCOME (NMY) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) $155,477 1.23%* 5.97%* 1.22%* 5.98%* 5% 2005 160,496 1.24 6.22 1.23 6.22 10 2004 151,107 1.24 6.54 1.23 6.55 16 2003 159,415 1.26 7.00 1.25 7.01 16 2002 147,795 1.32 7.33 1.31 7.34 13 2001 145,201 1.31 7.58 1.31 7.58 8 MARYLAND DIVIDEND ADVANTAGE (NFM) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 61,387 1.26* 5.92* .79* 6.38* 8 2005 63,051 1.26 6.11 .79 6.57 11 2004 60,041 1.24 6.34 .78 6.80 10 2003 64,338 1.26 6.54 .79 7.01 12 2002 58,925 1.35 6.81 .82 7.34 36 2001(b) 57,740 1.17* 4.33* .75* 4.75* 10 MARYLAND DIVIDEND ADVANTAGE 2 (NZR) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 62,707 1.24* 5.67* .78* 6.14* 7 2005 64,500 1.23 5.74 .77 6.20 10 2004 61,064 1.24 5.90 .78 6.36 11 2003 65,490 1.26 6.07 .80 6.53 12 2002(c) 58,370 1.22* 5.55* .79* 5.99* 21 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 77,409 1.23* 5.34* .73* 5.83* 8 2005 79,443 1.23 5.40 .74 5.89 12 2004 74,369 1.22 5.59 .73 6.08 15 2003(d) 79,700 1.18* 5.01* .70* 5.50* 13 ============================================================================================================================= Preferred Shares at End of Period ------------------------------------------ Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ========================================================================= MARYLAND PREMIUM INCOME (NMY) ------------------------------------------------------------------------- Year Ended 5/31: 2006(a) $79,100 $25,000 $74,139 2005 79,100 25,000 75,726 2004 79,100 25,000 72,758 2003 79,100 25,000 75,384 2002 79,100 25,000 71,712 2001 79,100 25,000 70,891 MARYLAND DIVIDEND ADVANTAGE (NFM) ------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 32,000 25,000 72,959 2005 32,000 25,000 74,259 2004 32,000 25,000 71,907 2003 32,000 25,000 75,264 2002 32,000 25,000 71,035 2001(b) 32,000 25,000 70,109 MARYLAND DIVIDEND ADVANTAGE 2 (NZR) ------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 32,000 25,000 73,990 2005 32,000 25,000 75,390 2004 32,000 25,000 72,706 2003 32,000 25,000 76,164 2002(c) 32,000 25,000 70,601 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 39,000 25,000 74,621 2005 39,000 25,000 75,925 2004 39,000 25,000 72,672 2003(d) 39,000 25,000 76,090 =========================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the six months ended November 30, 2005. (b) For the period January 23, 2001 (commencement of operations) through May 31, 2001. (c) For the period September 25, 2001 (commencement of operations) through May 31, 2002. (d) For the period September 25, 2002 (commencement of operations) through May 31, 2003. See accompanying notes to financial statements. 74-75 SPREAD FINANCIAL HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) $15.82 $.45 $ (.47) $(.07) $ -- $ (.09) $(.41) $ -- $ (.41) 2005 14.95 .93 .93 (.09) -- 1.77 (.90) -- (.90) 2004 15.93 .97 (.99) (.05) -- (.07) (.91) -- (.91) 2003 14.69 1.00 1.21 (.07) -- 2.14 (.90) -- (.90) 2002 14.59 1.04 .03 (.11) -- .96 (.86) -- (.86) 2001 13.36 1.08 1.21 (.25) -- 2.04 (.81) -- (.81) VIRGINIA DIVIDEND ADVANTAGE (NGB) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) 15.52 .49 (.39) (.07) -- .03 (.44) -- (.44) 2005 14.42 .99 1.13 (.09) -- 2.03 (.93) -- (.93) 2004 15.43 1.02 (1.05) (.05) -- (.08) (.93) -- (.93) 2003 14.23 1.02 1.10 (.07) -- 2.05 (.86) -- (.86) 2002 13.87 1.02 .32 (.13) -- 1.21 (.85) -- (.85) 2001(b) 14.33 .24 (.28) (.05) -- (.09) (.21) -- (.21) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2006(a) 15.70 .47 (.40) (.08) -- (.01) (.43) -- (.43) 2005 14.79 .96 1.13 (.09) (.01) 1.99 (.89) (.19) (1.08) 2004 16.02 .99 (1.22) (.06) -- (.29) (.89) (.05) (.94) 2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87) 2002(c) 14.33 .41 .09 (.04) -- .46 (.35) -- (.35) ==================================================================================================================================== Total Returns ------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** =========================================================================================== VIRGINIA PREMIUM INCOME (NPV) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) $ -- $15.32 $16.10 (6.55)% (0.56)% 2005 -- 15.82 17.65 24.54 12.13 2004 -- 14.95 14.95 (10.70) (.42) 2003 -- 15.93 17.67 15.27 14.99 2002 -- 14.69 16.17 6.64 6.71 2001 -- 14.59 16.00 18.45 15.53 VIRGINIA DIVIDEND ADVANTAGE (NGB) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) -- 15.11 15.48 (6.53) 0.20 2005 -- 15.52 16.99 19.11 14.46 2004 -- 14.42 15.07 (8.11) (.50) 2003 .01 15.43 17.35 21.45 14.92 2002 -- 14.23 15.09 5.10 8.89 2001(b) (.16) 13.87 15.18 2.61 (1.73) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) -- 15.26 15.97 (2.14) (0.08) 2005 -- 15.70 16.74 21.96 13.75 2004 -- 14.79 14.65 (3.81) (1.84) 2003 -- 16.02 16.14 14.58 18.51 2002(c) (.13) 14.31 14.90 1.71 2.30 =========================================================================================== Ratios/Supplemental Data ---------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ========================================================================================================================= VIRGINIA PREMIUM INCOME (NPV) ------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) $136,113 1.20%* 5.68%* 1.18%* 5.70%* 11% 2005 140,340 1.20 5.98 1.19 5.99 17 2004 132,122 1.20 6.33 1.19 6.34 14 2003 140,223 1.25 6.61 1.24 6.62 17 2002 128,655 1.28 7.01 1.27 7.02 14 2001 127,145 1.23 7.51 1.21 7.53 7 VIRGINIA DIVIDEND ADVANTAGE (NGB) ------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 47,222 1.27* 5.84* .80* 6.31* 9 2005 48,474 1.28 6.13 .81 6.59 15 2004 44,988 1.24 6.39 .77 6.86 7 2003 48,102 1.28 6.45 .81 6.92 10 2002 44,308 1.37 6.68 .84 7.21 21 2001(b) 43,155 1.27* 4.76* .80* 5.23* 20 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2006(a) 87,169 1.20* 5.63* .74* 6.10* 5 2005 89,626 1.19 5.74 .74 6.19 13 2004 84,248 1.20 5.99 .74 6.44 16 2003 91,065 1.21 6.01 .75 6.47 15 2002(c) 81,325 1.14* 5.00* .70* 5.44* 12 ========================================================================================================================= Preferred Shares at End of Period ------------------------------------------ Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ==================================================================== VIRGINIA PREMIUM INCOME (NPV) -------------------------------------------------------------------- Year Ended 5/31: 2006(a) $63,800 $25,000 $78,336 2005 63,800 25,000 79,992 2004 63,800 25,000 76,772 2003 63,800 25,000 79,946 2002 63,800 25,000 75,413 2001 63,800 25,000 74,822 VIRGINIA DIVIDEND ADVANTAGE (NGB) -------------------------------------------------------------------- Year Ended 5/31: 2006(a) 24,000 25,000 74,190 2005 24,000 25,000 75,493 2004 24,000 25,000 71,863 2003 24,000 25,000 75,106 2002 24,000 25,000 71,154 2001(b) 24,000 25,000 69,953 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) -------------------------------------------------------------------- Year Ended 5/31: 2006(a) 42,000 25,000 76,886 2005 42,000 25,000 78,349 2004 42,000 25,000 75,148 2003 42,000 25,000 79,206 2002(c) 42,000 25,000 73,408 ====================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the six months ended November 30, 2005. (b) For the period January 26, 2001 (commencement of operations) through May 31, 2001. (c) For the period November 15, 2001 (commencement of operations) through May 31, 2002. See accompanying notes to financial statements. 76-77 SPREAD Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 78 Other Useful INFORMATION In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers") sold the majority of its controlling equity interest in Nuveen Investments, Inc. ("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset Management ("NAM"), which is each Fund's investment manager. This sale was deemed to be an "assignment" of the investment management agreement between each Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and the Fund's sub-adviser. As required by law, the shareholders of each Fund were asked to approve a new investment management agreement and, if applicable, a new subadvisory agreement that reflected this change in ownership. The shareholders of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005. There were no changes to the investment objectives or management of any Fund as a result of these actions. QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2005, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a Fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 79 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing more than $130 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices o Fund details Learn more o Daily financial news about Nuveen Funds at o Investor education WWW.NUVEEN.COM/ETF o Interactive planning tools Logo: NUVEEN Investments ESA-A-1105D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable at this time. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Virginia Dividend Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: February 3, 2006 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: February 3, 2006 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: February 3, 2006 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.