-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UWtg3XPzwWKKNwte+zbtMz28SrMb42jsqFmKbec1fP7NrZRqLkyEg7artbSMsnFL wQ4Th2/4oC4cj2HcmFMLCQ== 0000891804-10-004005.txt : 20100806 0000891804-10-004005.hdr.sgml : 20100806 20100806150940 ACCESSION NUMBER: 0000891804-10-004005 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100531 FILED AS OF DATE: 20100806 DATE AS OF CHANGE: 20100806 EFFECTIVENESS DATE: 20100806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2 CENTRAL INDEX KEY: 0001137885 IRS NUMBER: 364460813 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10349 FILM NUMBER: 10998072 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178146 N-CSR 1 nzr.txt NZR 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 811-10349 --------------------- Nuveen Maryland Dividend Advantage Municipal Fund 2 - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: May 31 ------------------ Date of reporting period: May 31, 2010 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. [LOGO] NUVEEN INVESTMENTS Closed-End Funds - -------------------------------------------------------------------------------- Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report May 31, 2010 - --------------------------------------------------------------------------------
- -------------------------- ------------------------ -------------------------- -------------------------- NUVEEN MARYLAND NUVEEN MARYLAND NUVEEN MARYLAND NUVEEN MARYLAND PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND 3 NMY NFM NZR NWI - -------------------------- ------------------------ -------------------------- NUVEEN VIRGINIA NUVEEN VIRGINIA NUVEEN VIRGINIA PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND MUNICIPAL FUND 2 NPV NGB NNB
May 10 LIFE IS COMPLEX. Nuveen makes things e-simple. It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Fund information is ready. No more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. [LOGO] NUVEEN INVESTMENTS Chairman's Letter to Shareholders [PHOTO OF ROBERT P. BREMNER] DEAR SHAREHOLDER, The economic environment in which your Fund operates reflects continuing but uneven economic recovery. The U.S. and other major industrial countries are experiencing steady but comparatively low levels of economic growth, while emerging market countries are seeing a resumption of relatively strong economic expansion. The potential impact of steps being considered by many governments to counteract the extraordinary governmental spending and credit expansion to deal with the recent financial and economic crisis is injecting uncertainty into global financial markets. The implications for future tax rates, government spending, interest rates and the pace of economic recovery in the U.S. and other leading economies are extremely difficult to predict at the present time. The long term health of the global economy depends on restoring some measure of fiscal discipline around the world, but since all of the corrective steps require economic pain, it is not surprising that governments are reluctant to undertake them. In the near term, governments remain committed to furthering economic recovery and realizing a meaningful reduction in their national unemployment rates. Such an environment should produce continued economic growth and, consequently, attractive investment opportunities. Over the longer term, the larger uncertainty mentioned earlier carries the risk of unexpected potholes in the road to sustained recovery. For this reason, Nuveen's investment management teams are working hard to balance return and risk by building well-diversified portfolios, among other strategies. I encourage you to read the following commentary on the management of your Fund. As always, I also encourage you to contact your financial consultant if you have any questions about your Nuveen Fund investment. Please consult the Nuveen website for the most recent information on your Nuveen Fund at: www.nuveen.com. On behalf of the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner Robert P. Bremner Chairman of the Board July 22, 2010 Nuveen Investments 1 Portfolio Manager's Comments 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) Portfolio manager Cathryn Steeves reviews economic and municipal market conditions at the national and state levels, key investment strategies and the twelve-month performance of the Nuveen Maryland and Virginia funds. Cathryn, who joined Nuveen in 1996, has managed these seven Funds since 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMIC AND MUNICIPAL MARKET ENVIRONMENTS DURING THE TWELVE-MONTH REPORTING PERIOD ENDED MAY 31, 2010? During this reporting period, municipal bond prices generally rose as strong cash flows into municipal bond funds combined with tighter supply of new tax-exempt issuance to provide favorable supply and demand conditions. As the period began, there continued to be considerable downward pressure on the economy, and both the Federal Reserve (Fed) and the federal government continued their efforts to improve the overall economic environment. For its part, the Fed continued to hold the benchmark fed funds rate in a target range of zero to 0.25% since cutting it to this record low level in December 2008. At its June 2010 meeting (following the end of this reporting period), the central bank renewed its pledge to keep the fed funds rate "exceptionally low" for an "extended period." As part of its efforts, the federal government put into place the American Recovery and Reinvestment Act of 2009, a $787 billion economic stimulus package intended to provide job creation, tax relief, fiscal assistance to state and local governments and expansion of unemployment benefits and other federal social welfare programs. In recent months, these and other measures taken by the Fed and the government to ease the economic recession have produced some incipient signs of improvement. In the first quarter of 2010, the U.S. economy, as measured by the U.S. gross domestic product (GDP), grew at an annualized rate of 2.7%. This marked the first time since 2007 that the economy had strung together three consecutive positive quarters. Housing also provided something of a bright spot, as the average home price gained 3.8% for the twelve months ended April 2010, the largest year-over-year increase since September 2006. At the same time, inflation continued to be relatively tame, as the Consumer Price Index (CPI) rose 2.0% year-over-year as of May 2010, driven mainly by increased prices CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. 2 Nuveen Investments for gasoline and fuel oil. The core CPI (which excludes food and energy) rose 0.9% over the year, the lowest pace since 1966 and within the Fed's official objective of 2.0% or lower for this measure. While labor markets remained weak, recent months saw some improvement. As of May 2010, the national unemployment rate was 9.7%, up from 9.4% in May 2009 but below the 26-year high of 10.1% in October 2009. Municipal market conditions began to show general signs of improvement throughout most of the period. This trend was bolstered by the reduced issuance of tax-exempt municipal debt, due in part to the introduction of the Build America Bond program in 2009. Build America Bonds are a new class of taxable municipal debt, created as part of the February 2009 economic stimulus package. These bonds currently offer municipal issuers a federal subsidy equal to 35% of the bonds' interest payments and therefore provide issuers with an attractive alternative to traditional tax-exempt debt. During the twelve months ended May 31, 2010, taxable Build America Bonds issuance totaled $95.9 billion, accounting for over 22% of new bonds issued in the municipal market. Over the twelve months ended May 31, 2010, municipal bond issuance nationwide--both tax-exempt and taxable--totaled $428.1 billion, an increase of 17% compared with the twelve-month period ended May 31, 2009. Although total municipal issuance rose during these twelve months, supply actually would have fallen approximately 9% without the Build America Bonds issuance. Demand for tax-exempt bonds remained strong during this period, supported in part by the prospect of higher tax rates in the future. Combined with the lower supply of tax-exempt bonds, this provided support for municipal bond prices. HOW WERE ECONOMIC AND MARKET CONDITIONS IN MARYLAND AND VIRGINIA DURING THIS PERIOD? Over the past twelve months, Maryland's credit profile remained relatively strong, due to the state's historically sound fiscal management as well as a diverse economy that has fared better than the nation as a whole during the recession. In May 2010, Maryland's jobless rate was 7.2%, up from 7.0% in May 2009, but down from its recent high of 7.7% in early 2010. Like most other states, Maryland's finances have suffered due to declining revenues, which resulted in budget gaps and general fund deficits over the past three years. The state's $31.6 billion fiscal 2010 budget relied on $1 billion of federal stimulus funding, one-time measures, and mid-year reductions totaling more than $1 billion to close a $2.8 billion deficit. In February 2010, Moody's, Standard & Poor's (S&P), and Fitch confirmed their ratings on Maryland general obligation debt at Aaa/AAA/AAA, respectively, with stable outlooks. During the twelve months ended May 31, 2010, municipal issuance in the state totaled $6.9 billion, up almost 25% from the previous twelve-month period. Virginia's proximity to Washington D.C. and a large military presence added some stability to the commonwealth's economy over the twelve-month period, particularly in the northern region. Unemployment in the commonwealth rose from 6.8% in May 2009 to 7.1% in May 2010, below the recent high of 7.3% in March 2010. Virginia was hard hit by the housing recession, especially in the Washington D.C. area, as home sale prices fell to 2002 levels. Recently, however, prices in the area have risen, adding some stability to residential construction. According to the S&P/Case-Shiller home price index, home prices in the Washington D.C. area rose 7.3% over the twelve months ended April 2010, Nuveen Investments 3 compared with a 16.9% loss for the twelve months ended April 2009. For fiscal 2010 and 2011, Virginia faced budget shortfalls of $3.6 billion and $1.3 billion, respectively. As of May 2010, Moody's, S&P and Fitch maintained their ratings on Virginia general obligation debt at Aaa/AAA/AAA, respectively, with stable outlooks. During the twelve months ended May 31, 2010, issuance in Virginia totaled $8.5 billion, a decrease of 2% from the previous twelve months. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD? As previously mentioned, the availability of tax-exempt bonds declined nationally during this period, due in part to the introduction of taxable Build America Bonds in April 2009. This program also had an impact on tax-exempt supply in Maryland and Virginia, both of which ranked among the top 15 states by dollar amount of bonds issued under the Build America Bond program. In Maryland, Build America Bond issuance represented approximately 30% of municipal issuance, while these bonds comprised about 25% of municipal supply in Virginia. Since interest payments from Build America Bonds represent taxable income, we do not view these bonds as good investment opportunities for the Maryland and Virginia Funds. Despite the constrained issuance of tax-exempt municipal bonds, we continued to find attractive value opportunities, taking a bottom-up approach to discovering undervalued sectors and individual credits with the potential to perform well over the long term. In the Maryland Funds, we found value in several areas of the market, primarily in the health care sector, but also in transportation (specifically bonds issued for the Port of Baltimore) and higher education. The Virginia Funds also purchased health care and transportation credits (including zero coupon bonds issued to fund the Dulles Corridor Metrorail project) as well as dedicated tax bonds backed by Puerto Rico sales taxes. Some of our investment activity during this period was driven by opportunities created by the provisions of the Build America Bond program. For example, tax-exempt supply was more plentiful in the health care and higher education sectors because, as 501(c)(3) (non-profit) organizations, hospitals and private universities generally do not qualify for the Build America Bond program and must continue to issue bonds in the tax-exempt municipal market. In addition, health care entities were active issuers during this period, as they sought to replace variable rate issuance with fixed rates. Refunding issues also are not covered by the Build America Bond program, and this resulted in attractive opportunities in various other sectors of the market. The impact of the Build America Bond program was also evident in the area of longer-term issuance, as municipal issuers sought to take full advantage of the attractive financing terms offered by these bonds. Approximately 70% of Build America Bonds were issued with maturities of at least 30 years or more. Even though this significantly reduced the availability of tax-exempt credits with longer maturities, we continued to find good opportunities to purchase attractive longer-term bonds for these Funds. During this period, we generally focused on bonds in the 25-year to 30-year part of the yield curve offering 5% coupons or higher. These bonds helped us to maintain the Funds' durations within our target duration range and also rewarded investors as the yield curve remained steep. 4 Nuveen Investments Cash for new purchases during this period was generated primarily by the proceeds from called and maturing bonds. In NPV, we also trimmed our position in bonds with very short maturities. On the whole, however, selling was relatively limited during this period, as the bonds in our portfolios generally offered higher yields than those available in the current marketplace. As of May 31, 2010, all seven of these Funds continued to use inverse floating rate securities.(1) We employ inverse floaters as a form of leverage for a variety of reasons, including duration management as well as income and total return enhancement. HOW DID THE FUNDS PERFORM? Individual results for the Nuveen Maryland and Virginia Funds, as well as relevant index and peer group information, are presented in the accompanying table. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 5/31/10
1-YEAR 5-YEAR 10-YEAR - --------------------------------------------------------------------------------------- MARYLAND FUNDS NMY 14.44% 4.51% 7.10% NFM 16.68% 4.42% N/A NZR 16.13% 4.20% N/A NWI 15.53% 4.66% N/A Standard & Poor's (S&P) Maryland Municipal Bond Index(2) 8.45% 4.40% 5.69% Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85% Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78% VIRGINIA FUNDS NPV 13.19% 4.14% 6.85% NGB 15.13% 3.82% N/A NNB 15.15% 4.06% N/A Standard & Poor's (S&P) Virginia Municipal Bond Index(2) 8.24% 4.27% 5.69% Standard & Poor's (S&P) National Municipal Bond Index(3) 9.27% 4.31% 5.85% Lipper Other States Municipal Debt Funds Average(4) 14.35% 4.04% 6.78% - ---------------------------------------------------------------------------------------
For the twelve months ended May 31, 2010, the total returns on common share net asset value (NAV) for all of the Maryland and Virginia Funds exceeded the returns for their respective state's (S&P) Municipal Bond Index as well as the S&P National Municipal Bond Index. For the same period, all of the Funds except NPV also outperformed the average return for the Lipper Other States Municipal Debt Funds Average. Key management factors that influenced the Funds' returns during this period included yield curve and duration positioning, credit exposure and sector allocation. In addition, the use of structural leverage was an important positive factor during this period. The impact of structural leverage is discussed in more detail on page seven. 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 An inverse floating rate security, also known as an inverse floater, is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during this reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. 2 The Standard & Poor's (S&P) Municipal Bond Indexes for Maryland and Virginia are unleveraged, market value-weighted indexes designed to measure the performance of the tax-exempt, investment-grade Maryland and Virginia municipal bond markets, respectively. These indexes do not reflect any initial or ongoing expenses and are not available for direct investment. 3 The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged, market value-weighted index designed to measure the performance of the tax-exempt, investment-grade U.S. municipal bond market. This index does not reflect any initial or ongoing expenses and is not available for direct investment. 4 The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. Lipper returns account for the effects of management fees and assume reinvestment of dividends, but do not reflect any applicable sales charges. The Lipper average is not available for direct investment. Nuveen Investments 5 During this period, bonds with longer maturities generally outperformed bonds with shorter maturities, with bonds at the longest end of the yield curve posting the strongest returns. The outperformance of longer term bonds was due in part to the decline in interest rates, particularly at the longer end of the curve. The scarcity of tax-exempt bonds with longer maturities also drove up the prices of these bonds. Overall, yield curve positioning and duration proved positive for the performance of the Virginia Funds and neutral to slightly negative in the Maryland Funds. The Virginia Funds tended to have more exposure to the outperforming longer part of the yield curve, while the Maryland Funds were underweighted in this area of the curve. Credit exposure also played an important role in the performance of these Funds. The demand for municipal bonds increased during this period, driven by a variety of factors, including concerns about potential tax increases, the need to rebalance portfolio allocations and a growing appetite for additional risk. At the same time, the supply of new tax-exempt municipal paper declined, due largely to the Build America Bond program. As investors bid up municipal bond prices, bonds rated BBB or below and non-rated bonds generally outperformed those rated AAA. In this environment, the Funds' performance benefited from their allocations to lower quality credits. This was especially true in NFM, which had the heaviest weighting of lower-rated and non-rated bonds among the seven Funds. NMY and NPV, on the other hand, tended to have higher credit quality positions overall, particularly NMY, which had the highest allocation to AAA-rated bonds among these Funds. The higher credit quality hampered the relative performance of these two Funds during this period. Overall, sector allocations were a positive factor for the Funds' performance during this period. Holdings that generally contributed to the Funds' returns included industrial development revenue (IDR) and health care bonds, both of which exceeded the overall municipal market return by substantial margins. Revenue bonds as a whole performed well, with transportation, housing and special tax among the sectors that outperformed the general municipal market for this period. Zero coupon bonds also were among the strongest performers. All of these Funds benefited from their overweight in health care, housing and other revenue (specifically dedicated tax) credits, while the Maryland Funds also had an overexposure to IDRs. In contrast, pre-refunded bonds, which are often backed by U.S. Treasury securities, performed relatively poorly during this period. The underperformance of these bonds can be attributed primarily to their shorter effective maturities and higher credit quality. Among the revenue sectors, education, electric utilities, water and sewer and resource recovery trailed the overall municipal market by small margins, while many general obligation and other tax-backed bonds also failed to keep pace with the market for the twelve months. All of the Maryland and Virginia Funds were overweighted in pre-refunded bonds, and the Maryland Funds also had heavy exposures to higher education credits, which had a negative influence on comparative performance. On the other hand, these Funds were generally underweighted in tax-backed securities, which lessened the impact of the underperformance of these bonds. 6 Nuveen Investments IMPACT OF THE FUNDS' LEVERAGE STRATEGIES ON PERFORMANCE One important factor impacting the returns of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total return for common shareholders. However, use of leverage also can expose common shareholders to additional volatility. For example, as the prices of securities held by a Fund decline, the negative impact of these valuation changes on common share net asset value and common shareholder total return is magnified by the use of leverage. Conversely, leverage may enhance common share returns during periods when bond prices generally are rising. Leverage made a positive contribution to the performance of these Funds over this reporting period. RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE Shortly after their inceptions, each of the Funds issued auction rate preferred shares (ARPS) to create financial leverage. As noted in past shareholder reports, the ARPS issued by many closed-end funds, including these Funds, have been hampered by a lack of liquidity since February 2008. Since that time, more ARPS have been submitted for sale in each of their regularly scheduled auctions than there have been offers to buy. In fact, offers to buy have been almost completely non-existent since late February 2008. This means that these auctions have "failed to clear," and that many, or all, of the ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. This lack of liquidity in ARPS did not lower the credit quality of these shares, and ARPS shareholders unable to sell their shares continued to receive distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the ARPS. In the recent market, with short-term rates at multigenerational lows, those maximum rates also have been low. One continuing implication for common shareholders from the auction failures is that each Fund's cost of leverage likely has been incrementally higher at times than it otherwise might have been had the auctions continued to be successful. As a result, each Fund's common share earnings likely have been incrementally lower at times than they otherwise might have been. As noted in past shareholder reports, the Nuveen funds' Board of Directors/Trustees authorized several methods to refinance a portion of the Nuveen funds' outstanding ARPS. Some funds have utilized tender option bonds (TOBs), also known as floating rate securities, for leverage purposes. The amount of TOBs that a fund may use varies according to the composition of each fund's portfolio. Some funds have a greater ability to use TOBs than others. Some funds have issued Variable Rate Demand Preferred (VRDP) Shares, but these issuances have been limited since it has been difficult to find liquidity providers on economically viable terms given the constrained credit environment. Some funds have issued MuniFund Term Preferred (MTP) Shares, a fixed rate form of preferred stock with a mandatory redemption period of five years. Nuveen Investments 7 While all these efforts have reduced the total amount of outstanding ARPS issued by the Nuveen funds, the funds cannot provide any assurance on when the remaining outstanding ARPS might be redeemed. At the time this report was prepared, thirty Nuveen leveraged closed-end funds received a demand letter from a law firm on behalf of some common shareholders of each fund, alleging that Nuveen and the fund's officers and Board of Directors/Trustees breached their fiduciary duties related to the redemption at par of the fund's ARPS. After an extensive independent review, on July 14, 2010, the Board of Directors/Trustees announced that each fund had rejected the demands contained in the letters. As a result, the Board of Directors/Trustees has resumed consideration of additional ARPS refinancing. Any future determinations by the Board of Directors/Trustees to refinance a specific fund's ARPS will continue to be based upon a review of the fund's specific circumstances, considering, among other factors, the availability and terms of potential alternative sources of leverage, the receipt of applicable ratings and other necessary approvals for such alternative sources of leverage, and overall market conditions. As of May 31, 2010, the amounts of ARPS redeemed at par by the Funds are as shown in the accompanying table. AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED PREFERRED SHARES - -------------------------------------------------------------------------------- NMY $46,125,000 58.3% NFM $32,000,000 100.0% NZR $32,000,000 100.0% NWI $24,175,000 62.0% NPV $38,250,000 60.0% NGB $24,000,000 100.0% NNB $42,000,000 100.0% - -------------------------------------------------------------------------------- As of May 31, 2010, the Funds have issued and outstanding MTP Shares, at liquidation value, as shown in the accompanying table. (Refer to Notes to Financial Statements, Footnote 1 - General Information and Significant Accounting Policies and Footnote 4 - Fund Shares for further details on MTP Shares.) MTP SHARES FUND AT LIQUIDATION VALUE - -------------------------------------------------------------------------------- NMY $38,775,000 NFM $26,485,000 NZR $27,300,000 NWI $20,700,000 NPV $32,205,000 NGB $22,800,000 NNB $43,200,000 - -------------------------------------------------------------------------------- As of May 31, 2010, 83 out of the 84 Nuveen closed-end municipal funds that had issued ARPS have redeemed at par all or a portion of these shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' ARPS redemptions to approximately $4.4 billion of the approximately $11.0 billion originally outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/arps. 8 Nuveen Investments Common Share Dividend and Share Price Information During the twelve-month reporting period ended May 31, 2010, NZR had three monthly dividend increases, NFM, NWI, and NPV each had two monthly dividend increases and NMY, NGB, and NNB each had one monthly dividend increase. Due to normal portfolio activity, common shareholders of the following Funds received net ordinary income distributions at the end of December 2009 as follows: ORDINARY INCOME FUND (PER SHARE) - -------------------------------------------------------------------------------- NPV $0.0267 NNB $0.0037 - -------------------------------------------------------------------------------- All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of May 31, 2010, all seven Funds in this report had positive UNII balances for both tax and financial reporting purposes. Nuveen Investments 9 COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding common shares. As of May 31, 2010, the Funds' common share prices were trading at (+) premiums or (-) discounts to their common share NAVs as shown in the accompanying table. 5/31/10 TWELVE-MONTH AVERAGE FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT - ------------------------------------------------------------------------------- NMY -2.30% -2.54% NFM -0.56% -1.25% NZR +3.66% -2.34% NWI -2.74% -4.57% NPV +7.60% +4.78% NGB +6.54% +5.14% NNB +4.05% +3.47% - ------------------------------------------------------------------------------- 10 Nuveen Investments NMY Performance OVERVIEW | Nuveen Maryland Premium Income Municipal Fund | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 39% AA 25% A 17% BBB 13% BB or Lower 2% N/R 4% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.058 Jul $ 0.058 Aug $ 0.058 Sep $ 0.062 Oct $ 0.062 Nov $ 0.062 Dec $ 0.062 Jan $ 0.062 Feb $ 0.062 Mar $ 0.062 Apr $ 0.062 May $ 0.062 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 12.71 $ 12.56 $ 12.7624 $ 12.93 $ 13.01 $ 13.4 $ 13.39 $ 13.51 $ 13.52 $ 13.51 $ 13.688 $ 13.72 $ 14.1 $ 14.25 $ 14.4 $ 14.55 $ 14.58 $ 14.58 $ 14.78 $ 14.5599 $ 13.83 $ 13.81 $ 13.67 $ 13.74 $ 13.59 $ 13.59 $ 13.7 $ 14.09 $ 13.78 $ 13.806 $ 13.9119 $ 13.799 $ 14 $ 13.74 $ 13.67 $ 13.82 $ 13.83 $ 13.91 $ 13.79 $ 13.91 $ 14.17 $ 14.07 $ 14.02 $ 14.07 $ 14.15 $ 14.41 $ 14.34 $ 14.32 $ 14.48 $ 14.75 $ 14.43 $ 14.48 $ 14.43 5/31/10 $ 14.43 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 14.43 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.77 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.30% - -------------------------------------------------------------------------------- Market Yield 5.16% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.54% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $157,243 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.61 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.32 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 19.89% 14.44% - -------------------------------------------------------------------------------- 5-Year 3.37% 4.51% - -------------------------------------------------------------------------------- 10-Year 6.38% 7.10% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/General 19.2% - -------------------------------------------------------------------------------- Health Care 17.1% - -------------------------------------------------------------------------------- Education and Civic Organizations 11.3% - -------------------------------------------------------------------------------- U.S. Guaranteed 11.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 10.5% - -------------------------------------------------------------------------------- Housing/Multifamily 8.5% - -------------------------------------------------------------------------------- Housing/Single Family 7.5% - -------------------------------------------------------------------------------- Other 14.8% - -------------------------------------------------------------------------------- 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Nuveen Investments 11 NFM Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 14.30 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.38 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -0.56% - -------------------------------------------------------------------------------- Market Yield 5.45% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.97% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $60,308 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 17.50 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.21 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 15.78% 16.68% - -------------------------------------------------------------------------------- 5-Year 3.60% 4.42% - -------------------------------------------------------------------------------- Since Inception 5.02% 5.80% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 23.5% - -------------------------------------------------------------------------------- U.S. Guaranteed 12.3% - -------------------------------------------------------------------------------- Tax Obligation/General 11.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 10.9% - -------------------------------------------------------------------------------- Housing/Multifamily 9.6% - -------------------------------------------------------------------------------- Education and Civic Organizations 8.7% - -------------------------------------------------------------------------------- Housing/Single Family 6.6% - -------------------------------------------------------------------------------- Consumer Discretionary 3.5% - -------------------------------------------------------------------------------- Other 13.8% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 37% AA 16% A 17% BBB 19% BB or Lower 1% N/R 10% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.06 Jul $ 0.06 Aug $ 0.06 Sep $ 0.063 Oct $ 0.063 Nov $ 0.063 Dec $ 0.065 Jan $ 0.065 Feb $ 0.065 Mar $ 0.065 Apr $ 0.065 May $ 0.065 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 13.05 $ 13.3 $ 12.85 $ 12.85 $ 12.551 $ 12.9799 $ 13.3 $ 12.91 $ 13.4162 $ 13.2 $ 13.79 $ 13.7 $ 14 $ 14.15 $ 13.8899 $ 14.55 $ 13.7815 $ 14.15 $ 14.316 $ 14.3 $ 13.8 $ 13.63 $ 13.4865 $ 13.83 $ 13.6 $ 13.7 $ 13.55 $ 13.38 $ 13.93 $ 13.7 $ 13.76 $ 13.531 $ 13.88 $ 13.97 $ 13.76 $ 13.7 $ 13.59 $ 13.6901 $ 13.39 $ 13.618 $ 13.62 $ 13.5935 $ 13.8 $ 14 $ 14.02 $ 14 $ 14.19 $ 14.35 $ 14.19 $ 14.18 $ 14.85 $ 14.09 $ 14.3 5/31/10 $ 14.3 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 12 Nuveen Investments NZR Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 2 | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 36% AA 25% A 13% BBB 16% BB or Lower 2% N/R 8% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.06 Jul $ 0.06 Aug $ 0.06 Sep $ 0.063 Oct $ 0.063 Nov $ 0.063 Dec $ 0.065 Jan $ 0.065 Feb $ 0.065 Mar $ 0.066 Apr $ 0.066 May $ 0.066 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 12.6089 $ 12.82 $ 13.08 $ 12.83 $ 12.76 $ 12.84 $ 13.5 $ 12.74 $ 13.0405 $ 13.0995 $ 13.27 $ 13.2 $ 13.41 $ 13.25 $ 13.59 $ 13.92 $ 14 $ 14.18 $ 14.27 $ 14.78 $ 14.06 $ 13.61 $ 13.31 $ 13.7 $ 13.53 $ 13.58 $ 13.331 $ 13.96 $ 13.66 $ 13.17 $ 13.28 $ 13.46 $ 13.4848 $ 13.3701 $ 13.45 $ 13.6999 $ 13.96 $ 13.92 $ 13.805 $ 13.8 $ 13.87 $ 13.9145 $ 13.82 $ 13.96 $ 14.25 $ 14.37 $ 14.32 $ 14.74 $ 14.7 $ 14.02 $ 14.3 $ 14.7 $ 15 5/31/10 $ 15 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.00 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.47 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 3.66% - -------------------------------------------------------------------------------- Market Yield 5.28% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.72% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $60,749 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.36 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.67 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 24.89% 16.13% - -------------------------------------------------------------------------------- 5-Year 5.04% 4.20% - -------------------------------------------------------------------------------- Since Inception 5.67% 5.78% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 19.0% - -------------------------------------------------------------------------------- U.S. Guaranteed 14.3% - -------------------------------------------------------------------------------- Tax Obligation/General 14.1% - -------------------------------------------------------------------------------- Tax Obligation/Limited 11.7% - -------------------------------------------------------------------------------- Education and Civic Organizations 10.8% - -------------------------------------------------------------------------------- Housing/Single Family 7.0% - -------------------------------------------------------------------------------- Housing/Multifamily 6.2% - -------------------------------------------------------------------------------- Transportation 3.8% - -------------------------------------------------------------------------------- Other 13.1% - -------------------------------------------------------------------------------- 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. Nuveen Investments 13 NWI Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 3 | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $14.19 - -------------------------------------------------------------------------------- Common Share Net Asset Value $14.59 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -2.74% - -------------------------------------------------------------------------------- Market Yield 5.33% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.79% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $78,266 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.96 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 7.60 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 19.24% 15.53% - -------------------------------------------------------------------------------- 5-Year 4.96% 4.66% - -------------------------------------------------------------------------------- Since Inception 4.59% 5.38% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/Limited 20.7% - -------------------------------------------------------------------------------- Health Care 18.5% - -------------------------------------------------------------------------------- U.S. Guaranteed 14.4% - -------------------------------------------------------------------------------- Tax Obligation/General 11.3% - -------------------------------------------------------------------------------- Education and Civic Organizations 8.8% - -------------------------------------------------------------------------------- Housing/Single Family 5.3% - -------------------------------------------------------------------------------- Housing/Multifamily 5.2% - -------------------------------------------------------------------------------- Water and Sewer 3.6% - -------------------------------------------------------------------------------- Other 12.2% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 36% AA 27% A 15% BBB 14% BB or Lower 2% N/R 6% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.058 May $ 0.058 Jul $ 0.058 Aug $ 0.062 Sep $ 0.062 Oct $ 0.062 Nov $ 0.063 Dec $ 0.063 Jan $ 0.063 Feb $ 0.063 Mar $ 0.063 Apr $ 0.063 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/2009 $ 12.61 $ 12.5 $ 12.0466 $ 12.53 $ 12.63 $ 12.7176 $ 12.94 $ 12.9878 $ 13 $ 13.3 $ 12.79 $ 12.8 $ 13 $ 12.936 $ 13.28 $ 13.23 $ 13.59 $ 13.88 $ 14.11 $ 14.12 $ 13.6 $ 13.4 $ 13.12 $ 13.35 $ 13.4313 $ 13.39 $ 13.58 $ 13.91 $ 13.8483 $ 13.6499 $ 13.81 $ 13.8001 $ 13.7801 $ 13.73 $ 13.58 $ 13.665 $ 13.6246 $ 13.85 $ 13.72 $ 13.66 $ 13.87 $ 13.8 $ 13.88 $ 13.94 $ 13.86 $ 13.8501 $ 14.01 $ 13.97 $ 14.041 $ 13.916 $ 13.97 $ 14.07 $ 14.19 5/31/2010 $ 14.19 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 31.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 14 Nuveen Investments NPV Performance OVERVIEW | Nuveen Virginia Premium Income Municipal Fund | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 32% AA 28% A 27% BBB 8% BB or Lower 1% N/R 4% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3) [BAR CHART] Jun $ 0.0605 Jul $ 0.0605 Aug $ 0.0605 Sep $ 0.065 Oct $ 0.065 Nov $ 0.065 Dec $ 0.067 Jan $ 0.067 Feb $ 0.067 Mar $ 0.067 Apr $ 0.067 May $ 0.067 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 14.306 $ 14.28 $ 13.64 $ 13.79 $ 14 $ 14.47 $ 14 $ 14.12 $ 14.568 $ 14.5 $ 14.48 $ 14.45 $ 14.47 $ 14.4 $ 14.39 $ 14.93 $ 15.1 $ 15.14 $ 15.7 $ 15.14 $ 15.25 $ 15.35 $ 15.98 $ 15.58 $ 14.9 $ 15.07 $ 14.54 $ 14.6 $ 14.99 $ 15 $ 14.83 $ 14.9356 $ 14.86 $ 14.75 $ 14.81 $ 14.8899 $ 14.9899 $ 15.17 $ 15.142 $ 15.2 $ 15.55 $ 15.44 $ 15.53 $ 15.69 $ 15.84 $ 15.95 $ 16 $ 16.13 $ 16.07 $ 15.6 $ 15.92 $ 15.86 $ 15.85 5/31/10 $ 15.85 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.85 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.73 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 7.60% - -------------------------------------------------------------------------------- Market Yield 5.07% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.47% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $132,302 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.45 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.07 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 16.60% 13.19% - -------------------------------------------------------------------------------- 5-Year 3.37% 4.14% - -------------------------------------------------------------------------------- 10-Year 6.69% 6.85% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 20.8% - -------------------------------------------------------------------------------- Tax Obligation/Limited 18.8% - -------------------------------------------------------------------------------- Tax Obligation/General 12.7% - -------------------------------------------------------------------------------- U.S. Guaranteed 10.5% - -------------------------------------------------------------------------------- Transportation 8.2% - -------------------------------------------------------------------------------- Water and Sewer 5.7% - -------------------------------------------------------------------------------- Housing/Single Family 5.5% - -------------------------------------------------------------------------------- Utilities 4.7% - -------------------------------------------------------------------------------- Other 13.1% - -------------------------------------------------------------------------------- 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 3 The Fund paid shareholders a net ordinary income distribution in December 2009 of $0.0267 per share. Nuveen Investments 15 NGB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund | as of May 31, 2010 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.14 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.21 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 6.54% - -------------------------------------------------------------------------------- Market Yield 5.07% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.47% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $44,612 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.69 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.14 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 14.13% 15.13% - -------------------------------------------------------------------------------- 5-Year 3.00% 3.82% - -------------------------------------------------------------------------------- Since Inception 5.59% 5.77% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Transportation 17.8% - -------------------------------------------------------------------------------- U.S. Guaranteed 17.3% - -------------------------------------------------------------------------------- Health Care 16.9% - -------------------------------------------------------------------------------- Tax Obligation/Limited 14.4% - -------------------------------------------------------------------------------- Long-Term Care 7.6% - -------------------------------------------------------------------------------- Tax Obligation/General 7.5% - -------------------------------------------------------------------------------- Housing/Single Family 6.3% - -------------------------------------------------------------------------------- Other 12.2% - -------------------------------------------------------------------------------- CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 36% AA 19% A 21% BBB 12% N/R 12% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE [BAR CHART] Jun $ 0.062 Jul $ 0.062 Aug $ 0.062 Sep $ 0.064 Oct $ 0.064 Nov $ 0.064 Dec $ 0.064 Jan $ 0.064 Feb $ 0.064 Mar $ 0.064 Apr $ 0.064 May $ 0.064 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 14 $ 13.9 $ 13.6 $ 13.15 $ 14.4 $ 14.16 $ 14.1899 $ 13.48 $ 14.7 $ 14.73 $ 14.23 $ 14.08 $ 14 $ 14.18 $ 14 $ 14.25 $ 14.71 $ 14.65 $ 15.37 $ 14.6192 $ 14.42 $ 14.3 $ 14.95 $ 14.4 $ 14.4 $ 14.75 $ 14.25 $ 14.49 $ 14.2 $ 14.66 $ 14.63 $ 14.11 $ 14.72 $ 14.18 $ 14.399 $ 14.52 $ 14.732 $ 14.3 $ 14.5999 $ 14.59 $ 14.75 $ 14.73 $ 14.42 $ 14.68 $ 14.75 $ 14.682 $ 14.9305 $ 15.01 $ 15.5 $ 14.73 $ 14.81 $ 15.25 $ 15.1399 5/31/10 $ 15.1399 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 16 Nuveen Investments NNB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund 2 | as of May 31, 2010 CREDIT QUALITY (as a % of total investments)(2) [PIE CHART] AAA/U.S. Guaranteed 32% AA 25% A 22% BBB 12% N/R 9% 2009-2010 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(3) [BAR CHART] Jun $ 0.062 Jul $ 0.062 Aug $ 0.062 Sep $ 0.066 Oct $ 0.066 Nov $ 0.066 Dec $ 0.066 Jan $ 0.066 Feb $ 0.066 Mar $ 0.066 Apr $ 0.066 May $ 0.066 COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE [LINE GRAPH] 6/1/09 $ 13.93 $ 14.06 $ 13.16 $ 13.0999 $ 13.09 $ 13.39 $ 13.73 $ 13.85 $ 13.8901 $ 13.91 $ 14.03 $ 14.0299 $ 14.12 $ 14.08 $ 14.11 $ 14.37 $ 14.9 $ 14.78 $ 15.28 $ 15.43 $ 14.612 $ 14.86 $ 14.85 $ 14.98 $ 14.77 $ 14.85 $ 14.88 $ 14.67 $ 14.7201 $ 14.95 $ 15.017 $ 14.79 $ 14.8301 $ 14.9 $ 14.84 $ 14.81 $ 14.9376 $ 14.805 $ 14.8 $ 15.0001 $ 15.04 $ 15.38 $ 15.14 $ 14.98 $ 14.96 $ 15.18 $ 15.03 $ 15.16 $ 15.48 $ 14.9999 $ 15.39 $ 15.298 $ 15.15 5/31/10 $ 15.15 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 15.15 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 14.56 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV 4.05% - -------------------------------------------------------------------------------- Market Yield 5.23% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(1) 7.70% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $83,765 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.69 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 8.47 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year 14.48% 15.15% - -------------------------------------------------------------------------------- 5-Year 3.41% 4.06% - -------------------------------------------------------------------------------- Since Inception 5.78% 6.05% - -------------------------------------------------------------------------------- PORTFOLIO COMPOSITION (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 21.5% - -------------------------------------------------------------------------------- Tax Obligation/Limited 14.9% - -------------------------------------------------------------------------------- Tax Obligation/General 14.1% - -------------------------------------------------------------------------------- Water and Sewer 11.0% - -------------------------------------------------------------------------------- U.S. Guaranteed 10.2% - -------------------------------------------------------------------------------- Housing/Single Family 8.1% - -------------------------------------------------------------------------------- Long-Term Care 7.1% - -------------------------------------------------------------------------------- Other 13.1% - -------------------------------------------------------------------------------- 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.1%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 Ratings shown are the highest of Standard & Poor's Group, Moody's Investor Service, Inc. or Fitch, Inc. AAA includes bonds with an implied AAA rating since they are backed by U.S. Government or agency securities. AAA, AA, A and BBB ratings are investment grade; BB, B, CCC, CC, C and D ratings are below-investment grade. Holdings designated N/R are not rated by any of these national rating agencies. 3 The Fund paid shareholders a net ordinary income distribution in December 2009 of $0.0037 per share. Nuveen Investments 17 NMY | Shareholder Meeting Report NFM | NZR | The annual meeting of shareholders was held in the offices of Nuveen Investments on November 30, 2009; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting for NFM, NZR, NWI and NPV was subsequently adjourned to January 12, 2010. NPV was additionally adjourned to March 23, 2010.
NMY NFM NZR - -------------------------------------------------------------------- ----------------------------- ----------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For -- -- 1,965,394 639 1,983,699 709 Against -- -- 122,788 1 151,609 16 Abstain -- -- 71,462 4 52,585 -- Broker Non-Votes -- -- 481,265 -- 557,918 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 2,640,909 644 2,745,811 725 ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For -- -- 1,988,505 639 1,999,267 716 Against -- -- 107,428 1 134,928 9 Abstain -- -- 63,711 4 53,698 -- Broker Non-Votes -- -- 481,265 -- 557,918 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 2,640,909 644 2,745,811 725 ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- -- -- Against -- -- -- -- -- -- Abstain -- -- -- -- -- -- Broker Non-Votes -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- -- -- -- -- ====================================================================================================================================
18 Nuveen Investments
NMY NFM NZR - -------------------------------------------------------------------- ----------------------------- ----------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 8,767,034 -- 2,522,131 -- 2,647,784 -- Withhold 140,799 -- 118,778 -- 98,027 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,907,833 -- 2,640,909 -- 2,745,811 -- ==================================================================================================================================== Jack B. Evans For 8,751,611 -- 2,524,202 -- 2,658,861 -- Withhold 156,222 -- 116,707 -- 86,950 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 8,907,833 -- 2,640,909 -- 2,745,811 -- ==================================================================================================================================== William C. Hunter For -- 1,582 -- 605 -- 666 Withhold -- 190 -- 39 -- 59 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,772 -- 644 -- 725 ==================================================================================================================================== William J. Schneider For -- 1,582 -- 605 -- 666 Withhold -- 190 -- 39 -- 59 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,772 -- 644 -- 725 ====================================================================================================================================
Nuveen Investments 19 NWI NGB NPV | Shareholder Meeting Report (continued)
NWI NPV NGB - -------------------------------------------------------------------- ----------------------------- ----------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 2,444,885 884 4,661,554 1,453 -- -- Against 114,510 19 318,427 82 -- -- Abstain 86,133 1 185,106 448 -- -- Broker Non-Votes 893,042 -- 1,354,950 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,538,570 904 6,520,037 1,983 -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 2,454,038 892 4,704,960 1,455 -- -- Against 113,840 11 291,053 80 -- -- Abstain 77,650 1 169,074 448 -- -- Broker Non-Votes 893,042 -- 1,354,950 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,538,570 904 6,520,037 1,983 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- 4,612,617 1,453 -- -- Against -- -- 359,873 82 -- -- Abstain -- -- 192,597 448 -- -- Broker Non-Votes -- -- 1,354,950 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 6,520,037 1,983 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- 4,607,762 1,445 -- -- Against -- -- 346,718 90 -- -- Abstain -- -- 210,607 448 -- -- Broker Non-Votes -- -- 1,354,950 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 6,520,037 1,983 -- -- ==================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 4,631,417 1,442 -- -- Against -- -- 331,998 78 -- -- Abstain -- -- 201,672 463 -- -- Broker Non-Votes -- -- 1,354,950 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 6,520,037 1,983 -- -- ==================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 4,641,713 1,442 -- -- Against -- -- 325,766 78 -- -- Abstain -- -- 197,608 463 -- -- Broker Non-Votes -- -- 1,354,950 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- -- 6,520,037 1,983 -- -- ====================================================================================================================================
20 Nuveen Investments
NWI NPV NGB - -------------------------------------------------------------------- ----------------------------- ----------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred 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 - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 3,400,428 -- 6,276,015 -- 2,469,009 -- Withhold 138,142 -- 220,519 -- 55,969 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,538,570 -- 6,496,534 -- 2,524,978 -- ==================================================================================================================================== Jack B. Evans For 3,406,097 -- 6,271,787 -- 2,472,380 -- Withhold 132,473 -- 224,747 -- 52,598 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,538,570 -- 6,496,534 -- 2,524,978 -- ==================================================================================================================================== William C. Hunter For -- 841 -- 815 -- 275 Withhold -- 63 -- 249 -- 47 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 904 -- 1,064 -- 322 ==================================================================================================================================== William J. Schneider For -- 841 -- 815 -- 275 Withhold -- 63 -- 249 -- 47 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 904 -- 1,064 -- 322 ====================================================================================================================================
Nuveen Investments 21 NNB | Shareholder Meeting Report (continued)
NNB - ------------------------------------------------------------------------------------ Common and Preferred Preferred shares voting shares voting together together as a class as a class - ------------------------------------------------------------------------------------ TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ------------------------------------------------------------------------------------ Total -- -- ==================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ------------------------------------------------------------------------------------ Total -- -- ==================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ------------------------------------------------------------------------------------ Total -- -- ==================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ------------------------------------------------------------------------------------ Total -- -- ==================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ------------------------------------------------------------------------------------ Total -- -- ==================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- Against -- -- Abstain -- -- Broker Non-Votes -- -- - ------------------------------------------------------------------------------------ Total -- -- ====================================================================================
22 Nuveen Investments
NNB - ------------------------------------------------------------------------------------ Common and Preferred Preferred shares voting shares voting together together as a class as a class - ------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Robert P. Bremner For 4,564,389 -- Withhold 124,597 -- - ------------------------------------------------------------------------------------ Total 4,688,986 -- ==================================================================================== Jack B. Evans For 4,566,389 -- Withhold 122,597 -- - ------------------------------------------------------------------------------------ Total 4,688,986 -- ==================================================================================== William C. Hunter For -- 528 Withhold -- 116 - ------------------------------------------------------------------------------------ Total -- 644 ==================================================================================== William J. Schneider For -- 528 Withhold -- 116 - ------------------------------------------------------------------------------------ Total -- 644 ====================================================================================
Nuveen Investments 23 Report of Independent Registered Public Accounting Firm THE BOARD TRUSTEES AND SHAREHOLDERS NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Maryland Premium Income Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund 2, Nuveen Maryland Dividend Advantage Municipal Fund 3, Nuveen Virginia Premium Income Municipal Fund, Nuveen Virginia Dividend Advantage Municipal Fund, and Nuveen Virginia Dividend Advantage Municipal Fund 2 (the "Funds"), as of May 31, 2010, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of May 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Maryland Premium Income Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund 2, Nuveen Maryland Dividend Advantage Municipal Fund 3, Nuveen Virginia Premium Income Municipal Fund, Nuveen Virginia Dividend Advantage Municipal Fund, and Nuveen Virginia Dividend Advantage Municipal Fund 2 at May 31, 2010, the results of their operations and cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois July 27, 2010 24 Nuveen Investments NMY | Nuveen Maryland Premium Income Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY - 2.5% (1.7% OF TOTAL INVESTMENTS) Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A: $ 25 5.250%, 9/01/25 - SYNCORA GTY Insured 9/16 at 100.00 Baa3 $ 22,782 4,825 5.250%, 9/01/39 - SYNCORA GTY Insured 9/16 at 100.00 Baa3 3,938,937 - ----------------------------------------------------------------------------------------------------------------------------------- 4,850 Total Consumer Discretionary 3,961,719 - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 1.6% (1.1% OF TOTAL INVESTMENTS) 2,615 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,566,910 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 16.9% (11.3% OF TOTAL INVESTMENTS) 1,250 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 1,173,538 Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 1,000 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 1,005,100 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 Maryland Economic Development Corporation, Utility Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001: 980 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 N/R 1,021,444 980 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 N/R 1,021,444 330 Maryland Health and Higher Educational Facilities Authority, 7/20 at 100.00 BBB- 334,825 Revenue Bonds, Patterson Park Public Charter School Issue, Series 2010, 6.000%, 7/01/40 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Bullis School, Series 2000: 750 5.250%, 7/01/25 - AGM Insured 1/11 at 101.00 AAA 762,330 500 5.250%, 7/01/30 - AGM Insured 1/11 at 101.00 AAA 507,305 1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,256,113 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,430 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,599,326 Revenue Bonds, Johns Hopkins University, Series 2004, Inverse 1003, 13.395%, 7/01/33 (IF) 1,825 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 1,795,526 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 1,365 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 Aa3 1,474,159 Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/19 9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call Aa3 11,137,638 Revenue Refunding Bonds, Academic Fees and Auxiliary Facilities, Series 1993, 6.100%, 7/01/20 - NPFG Insured 1,685 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 1,867,974 Bonds, Series 2006A, 5.000%, 10/01/22 Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel College, Series 2006: 910 5.000%, 11/01/31 11/16 at 100.00 BBB+ 890,062 850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 732,267 - ----------------------------------------------------------------------------------------------------------------------------------- 24,550 Total Education and Civic Organizations 26,579,051 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 25.6% (17.1% OF TOTAL INVESTMENTS) 2,990 Maryland Health and Higher Education Facilities Authority, 7/19 at 100.00 A 3,043,132 Revenue Bonds, University of Maryland Medical System Issue, Series 2010, 5.125%, 7/01/39 1,500 Maryland Health and Higher Educational Facilities Authority, 7/19 at 100.00 A- 1,499,925 Revenue Bonds, Anne Arundel Health System, Series 2010, 5.000%, 7/01/40 1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,564,726 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,305,380 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A3 390,256 Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%, 7/01/40 1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 N/R 1,357,641 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured
Nuveen Investments 25 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 1,740 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 $ 1,631,998 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,325,296 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,500,240 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 A 1,000,560 Revenue Bonds, Johns Hopkins Hospital, Howard County General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - NPFG Insured 2,000 Maryland Health and Higher Educational Facilities Authority, 6/10 at 101.00 A3 2,023,820 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 3,717,160 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 1,175 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 1,224,773 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 1,799,263 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 3,310 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AA+ 3,363,920 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 1,010 5.000%, 7/01/37 7/17 at 100.00 BBB 925,968 670 5.500%, 7/01/42 7/17 at 100.00 BBB 651,287 1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,723,970 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,289,065 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 A 1,008,780 Revenue Bonds, University of Maryland Medical System, Series 2004B, 5.000%, 7/01/24 - AMBAC Insured 3,395 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 3,405,151 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 Prince George's County, Maryland, Revenue Bonds, Dimensions Health Corporation, Series 1994: 360 5.375%, 7/01/14 (5) 7/10 at 100.00 B3 328,734 295 5.300%, 7/01/24 (5) 7/10 at 100.00 B3 204,229 - ----------------------------------------------------------------------------------------------------------------------------------- 40,685 Total Health Care 40,285,274 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 12.7% (8.5% OF TOTAL INVESTMENTS) 2,065 Anne Arundel County, Maryland, FNMA Multifamily Housing Revenue 1/20 at 102.00 AAA 2,099,465 Bonds, Glenview Gardens Apartments Project, Series 2009, 5.000%, 1/01/28 (Mandatory put 1/01/27) 1,450 Maryland Community Development Administration, FNMA Multifamily 2/11 at 101.00 Aaa 1,478,464 Development Revenue Bonds, Edgewater Village Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative Minimum Tax) 2,500 Maryland Community Development Administration, Housing Revenue 7/10 at 100.50 Aa2 2,503,900 Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax) 880 Maryland Community Development Administration, Housing Revenue 7/10 at 100.00 Aa2 880,862 Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax) 1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B3 756,650 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 1,000 Maryland Economic Development Corporation, Student Housing 6/10 at 101.90 Baa3 1,019,040 Revenue Bonds, Collegiate Housing Foundation - Salisbury State University, Series 1999A, 6.000%, 6/01/19 1,145 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 1,086,513 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 3,830 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 3,832,030 FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30
26 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY (continued) $ 360 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aa2 $ 360,871 GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series 1995A, 5.900%, 7/01/15 2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,002,220 Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30 540 Prince George's County Housing Authority, Maryland, GNMA 9/10 at 101.00 AAA 549,115 Collateralized Mortgage Revenue Bonds, University Landing Apartments, Series 1999, 6.100%, 3/20/41 (Alternative Minimum Tax) Prince George's County Housing Authority, Maryland, GNMA Collateralized Mortgage Revenue Refunding Bonds, Overlook Apartments, Series 1995A: 1,645 5.700%, 12/20/15 6/10 at 100.00 AA+ 1,648,932 1,670 5.750%, 12/20/19 6/10 at 100.00 AA+ 1,672,639 - ----------------------------------------------------------------------------------------------------------------------------------- 20,085 Total Housing/Multifamily 19,890,701 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 11.2% (7.5% OF TOTAL INVESTMENTS) 2,510 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 2,638,688 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 3,000 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 3,022,230 Housing and Community Development, Residential Revenue Bonds, Series 2009B, 4.750%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 603,288 1,195 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 1,204,441 4,100 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 4,133,498 1,630 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 1,643,872 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 650 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 658,880 1,200 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 1,196,316 2,330 Maryland Community Development Administration, Department of 9/14 at 100.00 Aa2 2,288,270 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) 5 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 5,015 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax) 290 Puerto Rico Housing Finance Authority, Mortgage-Backed Securities 6/13 at 100.00 AAA 285,760 Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 17,510 Total Housing/Single Family 17,680,258 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 2.7% (1.8% OF TOTAL INVESTMENTS) 2,150 Maryland Economic Development Corporation, Economic Development 6/20 at 100.00 Baa3 2,202,568 Revenue Bonds, Transportation Facilities Project, Series 2010A, 5.750%, 6/01/35 2,010 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 2,027,306 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 4,160 Total Industrials 4,229,874 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 3.2% (2.2% OF TOTAL INVESTMENTS) 2,455 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 2,205,572 Series 2007A, 5.000%, 1/01/37 1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA Obligated 7/10 at 100.50 BB- 877,300 Group, Series 1999A, 5.625%, 1/01/25 - RAAI Insured 995 Gaithersburg, Maryland, Economic Development Revenue Bonds, 1/20 at 100.00 N/R 1,024,910 Asbury Methodist Homes Inc., Series 2009B, 6.000%, 1/01/23 1,065 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 966,935 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ----------------------------------------------------------------------------------------------------------------------------------- 5,515 Total Long-Term Care 5,074,717 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 27 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 28.6% (19.2% OF TOTAL INVESTMENTS) $ 2,030 Anne Arundel County, Maryland, General Obligation Bonds, Series 4/14 at 100.00 AAA $ 2,260,040 2004, 5.000%, 4/01/16 1,000 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 1,110,700 2006, 5.000%, 3/01/21 685 Anne Arundel County, Maryland, Water and Sewer Revenue Bonds, 3/16 at 100.00 AAA 788,017 Series 2006, 5.000%, 3/01/17 Baltimore County, Maryland, Metropolitan District Special Assessment Bonds, 67th Issue: 2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,566,875 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,590,440 1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 Aa2 1,655,284 Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured 700 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 807,870 Series 2005A, 5.000%, 12/01/16 Charles County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2006: 2,185 5.000%, 3/01/14 No Opt. Call Aa1 2,488,497 820 5.000%, 3/01/16 No Opt. Call Aa1 955,046 Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2004B: 1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,847,024 1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,341,223 1,725 Howard County, Maryland, Metropolitan District Refunding Bonds, 2/12 at 100.00 AAA 1,805,523 Series 2002A, 5.250%, 8/15/18 1,190 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,325,672 George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 3,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 3,500,820 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 Montgomery County, Maryland, Consolidated General Obligation Public Improvement Refunding Bonds, Series 2001: 1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,877,470 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,092,360 2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AAA 2,081,560 Consolidated Public Improvement Bonds, Series 2002, 4.100%, 9/15/19 5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AAA 6,413,124 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/18 Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005: 2,000 5.000%, 6/01/16 6/15 at 100.00 AAA 2,328,120 1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,437,614 1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,437,614 1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,437,614 - ----------------------------------------------------------------------------------------------------------------------------------- 40,905 Total Tax Obligation/General 45,148,507 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 15.8% (10.5% OF TOTAL INVESTMENTS) 300 Baltimore, Maryland, Special Obligation Bonds, North Locust 9/15 at 101.00 N/R 276,264 Point Project, Series 2005, 5.500%, 9/01/34 340 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R 326,614 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 900 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 800,370 Center Project, Series 2004, 5.750%, 7/01/34 Maryland Department of Transportation, Certificates of Participation, Mass Transit Administration Project, Series 2000: 875 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 886,314 925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 937,950 4,250 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,044,368 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,875 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AAA 2,029,950 Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 1,700 Maryland Stadium Authority, Lease Revenue Bonds, Montgomery 6/13 at 100.00 AA+ 1,844,772 County Conference Center Facilities, Series 2003, 5.000%, 6/15/24 1,000 Montgomery County, Maryland, Lease Revenue Bonds, Metrorail 6/12 at 100.00 AA 1,068,330 Garage, Series 2002, 5.000%, 6/01/21
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 675 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A2 $ 661,061 Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 635 New Baltimore City Board of School Commissioners, Maryland, 11/10 at 100.00 AA+ 647,903 School System Revenue Bonds, Series 2000, 5.125%, 11/01/15 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, Series 2007N: 1,000 5.500%, 7/01/29 - AMBAC Insured No Opt. Call A3 1,082,900 2,500 5.250%, 7/01/31 - AMBAC Insured No Opt. Call A3 2,584,075 1,000 5.250%, 7/01/33 - NPFG Insured No Opt. Call A 1,039,560 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,213,799 8/01/21 - AGM Insured Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 2010A: 1,425 5.375%, 8/01/39 2/20 at 100.00 A+ 1,479,891 200 5.500%, 8/01/42 2/20 at 100.00 A+ 209,300 1,500 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 1,627,740 Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 23,200 Total Tax Obligation/Limited 24,761,161 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.8% (3.2% OF TOTAL INVESTMENTS) 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking System No Opt. Call A1 1,188,790 Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured 4,335 Maryland Transportation Authority, Revenue Bonds, 7/17 at 100.00 AAA 4,645,820 Transportation Facilities Projects, Series 2007, 5.000%, 7/01/30 - AGM Insured (UB) 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/10 at 100.00 CCC+ 1,643,130 AmericanAirlines Inc., Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,470 Total Transportation 7,477,740 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.5% (11.1% OF TOTAL INVESTMENTS) (4) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 2,288,620 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA (4) 2,359,560 Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured (ETM) 1,245 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 1,455,467 2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured 275 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R (4) 281,864 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 1,440 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 1,542,456 and Improvement Bonds, Shady Grove Adventist Hospital, Series 1995, 6.500%, 9/01/12 - AGM Insured (ETM) 575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 620,776 Refunding Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded 2/15/12) Maryland Economic Development Corporation, Health and Mental Hygiene Providers Revenue Bonds, Series 1996A: 810 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 871,058 585 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 629,097 3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call N/R (4) 3,697,344 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC Insured (ETM) 3,125 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 Aaa 3,505,094 Revenue Bonds, Howard County General Hospital, Series 1993, 5.500%, 7/01/25 (ETM) 2,040 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 2,334,576 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A (4) 1,663,290 Revenue Bonds, University of Maryland Medical System, Series 2002, 6.000%, 7/01/22 (Pre-refunded 7/01/12) 175 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 203,676 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,027,710 Obligation Bonds, Series 2000A, 5.500%, 10/01/20 (Pre-refunded 10/01/10)
Nuveen Investments 29 NMY | Nuveen Maryland Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa $ 1,200,729 Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16) 235 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 236,158 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ (4) 2,060,539 Taxes Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 23,205 Total U.S. Guaranteed 25,978,014 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.9% (2.6% OF TOTAL INVESTMENTS) 2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/10 at 100.00 N/R 2,501,000 AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/14 at 100.00 A 3,588,900 Series 2004PP, 5.000%, 7/01/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,000 Total Utilities 6,089,900 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.4% (2.2% OF TOTAL INVESTMENTS) 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA 1,194,341 Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 1,655 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 1,756,037 2006C, 5.000%, 7/01/31 - AMBAC Insured 1,260 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 1,311,810 2007D, 5.000%, 7/01/32 - AMBAC Insured 860 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 1,005,650 Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 4,820 Total Water and Sewer 5,267,838 - ------------------------------------------------------------------------------------------------------------------------------------ $ 225,570 Total Investments (cost $226,022,758) - 149.4% 234,991,664 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (6.3)% (9,962,000) -------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (24.7)% (6) (38,775,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 3,963,040 -------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (21.0)% (6) (32,975,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 157,242,704 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value Measurements for more information. (6) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 16.5% and 14.0%, respectively. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 30 Nuveen Investments NFM | Nuveen Maryland Dividend Advantage Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY - 5.0% (3.5% OF TOTAL INVESTMENTS) Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue Bonds, Series 2006A: $ 540 5.000%, 9/01/16 - SYNCORA GTY Insured No Opt. Call Baa3 $ 535,388 2,115 5.250%, 9/01/39 - SYNCORA GTY Insured 9/16 at 100.00 Baa3 1,726,601 310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 253,695 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 476,255 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ----------------------------------------------------------------------------------------------------------------------------------- 3,615 Total Consumer Discretionary 2,991,939 - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS) 1,340 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,315,357 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 12.4% (8.7% OF TOTAL INVESTMENTS) 645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 648,290 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 980 Maryland Economic Development Corporation, Utility 7/11 at 100.00 N/R 995,680 Infrastructure Revenue Bonds, University of Maryland - College Park, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 125 Maryland Health and Higher Educational Facilities Authority, 7/20 at 100.00 BBB- 126,828 Revenue Bonds, Patterson Park Public Charter School Issue, Series 2010, 6.000%, 7/01/40 1,500 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 BBB- 1,499,895 Educational Facilities Leasehold Mortgage Revenue Bonds, McLean School, Series 2001, 6.000%, 7/01/31 500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 502,445 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 654,270 Revenue Bonds, Johns Hopkins University, Series 2004, Inverse 1003, 13.395%, 7/01/33 (IF) 565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 536,637 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 458,328 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 615 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 Aa3 660,793 Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/20 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 215 5.375%, 2/01/19 8/10 at 100.50 BBB- 215,159 410 5.375%, 2/01/29 8/10 at 100.50 BBB- 389,352 900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 775,341 McDaniel College, Series 2006, 4.500%, 11/01/36 - ----------------------------------------------------------------------------------------------------------------------------------- 7,515 Total Education and Civic Organizations 7,463,018 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 33.5% (23.5% OF TOTAL INVESTMENTS) 225 Maryland Health and Higher Education Facilities Authority, 7/19 at 100.00 A 228,998 Revenue Bonds, University of Maryland Medical System Issue, Series 2010, 5.125%, 7/01/39 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A 1,333,931 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/36 330 Maryland Health and Higher Educational Facilities Authority, 7/19 at 100.00 A- 329,984 Revenue Bonds, Anne Arundel Health System, Series 2010, 5.000%, 7/01/40 1,000 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 AAA 1,000,930 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/28 - AGM Insured 1,000 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 A2 1,000,140 Revenue Bonds, Calvert Memorial Hospital, Series 1998, 5.000%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,024,760 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26
Nuveen Investments 31 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A3 $ 390,256 Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%, 7/01/40 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 N/R 631,935 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 710 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 665,930 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 473,320 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 650,104 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 Aa3 1,263,450 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 2,225 Maryland Health and Higher Educational Facilities Authority, 6/10 at 101.00 A3 2,251,500 Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%, 7/01/15 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 978,200 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 485 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 505,545 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 719,705 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,360 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AA+ 1,382,154 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 415 5.000%, 7/01/37 7/17 at 100.00 BBB 380,472 270 5.500%, 7/01/42 7/17 at 100.00 BBB 262,459 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 1,000,830 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 709,870 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 7/15 at 100.00 A3 1,001,290 Revenue Bonds, Union Hospital of Cecil County, Series 2005, 5.000%, 7/01/35 980 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 982,930 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 570 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 A3 570,342 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/10 at 100.00 B3 484,610 Health Corporation, Series 1994, 5.300%, 7/01/24 (5) - ----------------------------------------------------------------------------------------------------------------------------------- 20,570 Total Health Care 20,223,645 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 13.6% (9.6% OF TOTAL INVESTMENTS) 1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,006,890 Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) Maryland Economic Development Corporation, Senior Lien Student Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A: 215 4.250%, 10/01/10 No Opt. Call B3 213,001 50 5.000%, 10/01/15 10/13 at 100.00 B3 43,380 210 5.625%, 10/01/23 10/13 at 100.00 B3 158,897 1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 N/R 1,573,002 Revenue Bonds, Sheppard Pratt University Village, Series 2001, 6.000%, 7/01/33 - ACA Insured 475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 450,737 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured 750 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 750,218 FNMA/FHA-Insured Multifamily Housing Development Bonds, Series 1998A, 5.250%, 7/01/29 (Alternative Minimum Tax) 2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,002,200 Multifamily Housing Development Bonds, Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY (continued) $ 2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/11 at 100.00 Aaa $ 2,010,800 Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 8,500 Total Housing/Multifamily 8,209,125 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 9.4% (6.6% OF TOTAL INVESTMENTS) 985 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 1,035,501 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 603,288 300 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 302,370 1,200 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 1,209,804 815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 821,936 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 250 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 253,416 500 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 498,466 970 Maryland Community Development Administration, Department of 9/14 at 100.00 Aa2 952,628 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) - ----------------------------------------------------------------------------------------------------------------------------------- 5,620 Total Housing/Single Family 5,677,409 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 3.7% (2.6% OF TOTAL INVESTMENTS) 810 Maryland Economic Development Corporation, Economic Development 6/20 at 100.00 Baa3 829,805 Revenue Bonds, Transportation Facilities Project, Series 2010A, 5.750%, 6/01/35 410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 413,530 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 7/10 at 100.00 BBB 1,001,710 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 2,220 Total Industrials 2,245,045 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 3.9% (2.7% OF TOTAL INVESTMENTS) 850 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 763,640 Series 2007A, 5.000%, 1/01/37 295 Gaithersburg, Maryland, Economic Development Revenue Bonds, 1/20 at 100.00 N/R 303,868 Asbury Methodist Homes Inc., Series 2009B, 6.000%, 1/01/23 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 283,602 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 720 Maryland Health and Higher Educational Facilities Authority, 1/17 at 100.00 N/R 599,904 Revenue Bonds, King Farm Presbyterian Community, Series 2007A, 5.250%, 1/01/27 440 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 399,485 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ----------------------------------------------------------------------------------------------------------------------------------- 2,605 Total Long-Term Care 2,350,499 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 15.8% (11.1% OF TOTAL INVESTMENTS) 565 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 627,546 2006, 5.000%, 3/01/21 3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,587,640 Assessment Bonds, 67th Issue, 5.000%, 6/01/27 300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 346,230 Series 2005A, 5.000%, 12/01/16 600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 687,678 5.000%, 8/01/16 - NPFG Insured 1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,114,010 George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,360 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,593,675 Public Improvement Bonds, Series 2006A, 5.000%, 5/01/16 740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 Aa2 772,937 4.875%, 3/01/19 - FGIC Insured 700 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 814,842 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 - ----------------------------------------------------------------------------------------------------------------------------------- 8,765 Total Tax Obligation/General 9,544,558 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33 NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 15.5% (10.9% OF TOTAL INVESTMENTS) $ 250 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R $ 253,855 Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 350 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 311,255 Center Project, Series 2004, 5.750%, 7/01/34 1,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,780,365 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AAA 1,521,109 Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 370 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 403,948 Montgomery County Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13 740 Prince George's County, Maryland, Lease Revenue Bonds, Upper 6/13 at 100.00 AA+ 818,381 Marlboro Justice Center, Series 2003A, 5.000%, 6/30/14 - NPFG Insured 895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 780,530 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 366,093 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 1,033,630 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 759,612 Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured 1,290 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,312,330 Loan Note, Series 1999A, 6.375%, 10/01/19 - ----------------------------------------------------------------------------------------------------------------------------------- 8,950 Total Tax Obligation/Limited 9,341,108 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 4.4% (3.1% OF TOTAL INVESTMENTS) 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 N/R 632,496 Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 7/01/27 - AMBAC Insured 1,785 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,912,985 Facilities Projects, Series 2007, 5.000%, 7/01/30 - AGM Insured (UB) Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997: 20 5.750%, 12/01/22 - NPFG Insured (Alternative Minimum Tax) 6/10 at 100.00 A 20,015 70 5.750%, 12/01/25 - NPFG Insured (Alternative Minimum Tax) 6/10 at 100.00 A 69,994 - ----------------------------------------------------------------------------------------------------------------------------------- 2,525 Total Transportation 2,635,490 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 17.5% (12.3% OF TOTAL INVESTMENTS) (4) 1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 1,161,475 Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM) 500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 531,390 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 669,474 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 656,425 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 (Pre-refunded 6/01/11) 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) 2,104,760 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 640 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 744,870 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 2,300 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 2,363,733 1,700 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,747,107 590 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 592,909 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) - ----------------------------------------------------------------------------------------------------------------------------------- 9,955 Total U.S. Guaranteed 10,572,143 - -----------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.4% (2.4% OF TOTAL INVESTMENTS) $ 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 9/10 at 100.00 N/R $ 1,000,400 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 1,040 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/20 at 100.00 A3 1,052,956 Series 2010XX, 5.250%, 7/01/40 - ------------------------------------------------------------------------------------------------------------------------------------ 2,040 Total Utilities 2,053,356 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.1% (1.5% OF TOTAL INVESTMENTS) 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 302,398 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 562,204 2007D, 5.000%, 7/01/32 - AMBAC Insured 355 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 415,122 Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 1,180 Total Water and Sewer 1,279,724 - ------------------------------------------------------------------------------------------------------------------------------------ $ 85,400 Total Investments (cost $84,939,848) - 142.4% 85,902,416 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (6.6)% (3,973,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (43.9)% (6) (26,485,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 8.1% 4,863,985 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 60,308,401 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value Measurements for more information. (6) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 35 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY - 4.3% (2.9% OF TOTAL INVESTMENTS) $ 2,320 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,893,955 Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured 310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 253,695 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 476,255 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ----------------------------------------------------------------------------------------------------------------------------------- 3,280 Total Consumer Discretionary 2,623,905 - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS) 660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 647,863 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Tobacco Settlement Financing Corporation, Virgin Islands, Tobacco 5/11 at 100.00 Baa3 682,352 Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 - ----------------------------------------------------------------------------------------------------------------------------------- 1,460 Total Consumer Staples 1,330,215 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 16.0% (10.8% OF TOTAL INVESTMENTS) 1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A2 1,135,332 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 500 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 469,415 Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 648,290 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 125 Maryland Health and Higher Educational Facilities Authority, 7/20 at 100.00 BBB- 126,828 Revenue Bonds, Patterson Park Public Charter School Issue, Series 2010, 6.000%, 7/01/40 250 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 BBB- 249,983 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 421,063 Revenue Bonds, Bullis School, Series 2000, 5.250%, 7/01/30 - AGM Insured 500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 502,445 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 654,270 Revenue Bonds, Johns Hopkins University, Series 2004, Inverse 1003, 13.395%, 7/01/33 (IF) 750 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 737,888 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 536,637 Revenue Bonds, Maryland Institute College of Art, Series 2007, 5.000%, 6/01/36 500 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 482,450 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 590 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 Aa3 640,457 Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/18 500 Morgan State University, Maryland, Student Tuition and Fee 7/12 at 100.00 Aa3 510,640 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 Revenue 7/13 at 100.00 Aa3 536,045 Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/20 - FGIC Insured 1,140 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA+ 1,180,367 Bonds, Series 2001B, 4.500%, 4/01/19 650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 720,584 Bonds, Series 2006A, 5.000%, 10/01/22 200 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 195,618 McDaniel College, Series 2006, 5.000%, 11/01/31 - ----------------------------------------------------------------------------------------------------------------------------------- 9,515 Total Education and Civic Organizations 9,748,312 - -----------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 28.2% (19.0% OF TOTAL INVESTMENTS) $ 445 Maryland Health and Higher Education Facilities Authority, 7/19 at 100.00 A $ 452,908 Revenue Bonds, University of Maryland Medical System Issue, Series 2010, 5.125%, 7/01/39 335 Maryland Health and Higher Educational Facilities Authority, 7/19 at 100.00 A- 334,983 Revenue Bonds, Anne Arundel Health System, Series 2010, 5.000%, 7/01/40 1,000 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 AAA 1,000,660 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/33 - AGM Insured 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 795,189 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,024,760 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 N/R 611,550 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 715 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 670,620 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 473,320 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 650,104 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 978,200 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 480 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 500,333 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 719,705 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,360 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AA+ 1,382,154 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 415 5.000%, 7/01/37 7/17 at 100.00 BBB 380,472 280 5.500%, 7/01/42 7/17 at 100.00 BBB 272,180 1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 1,501,245 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 709,870 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 1,500 Maryland Health and Higher Educational Facilities Authority, 7/15 at 100.00 A3 1,495,305 Revenue Bonds, Union Hospital of Cecil County, Series 2005, 5.000%, 7/01/40 980 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 982,930 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 1,610 Montgomery County, Maryland, Economic Development Revenue Bonds, 12/11 at 100.00 AA 1,631,542 Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22 700 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/10 at 100.00 B3 484,610 Health Corporation, Series 1994, 5.300%, 7/01/24 (5) - ----------------------------------------------------------------------------------------------------------------------------------- 17,395 Total Health Care 17,052,640 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 9.1% (6.2% OF TOTAL INVESTMENTS) 3,145 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 3,166,669 Development Revenue Bonds, Waters Towers Senior Apartments, Series 2001F, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,117,648 Housing Revenue Bonds, Princess Anne Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B3 756,650 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 520 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 493,438 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,775 Total Housing/Multifamily 5,534,405 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 37 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 10.4% (7.0% OF TOTAL INVESTMENTS) $ 1,030 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 $ 1,082,808 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 603,288 300 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 302,370 1,000 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 1,008,169 815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 821,936 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 250 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 253,415 500 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 498,465 970 Maryland Community Development Administration, Department of 9/14 at 100.00 Aa2 952,627 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) 785 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 785,691 Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 6,250 Total Housing/Single Family 6,308,769 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 4.0% (2.7% OF TOTAL INVESTMENTS) 845 Maryland Economic Development Corporation, Economic Development 6/20 at 100.00 Baa3 865,660 Revenue Bonds, Transportation Facilities Project, Series 2010A, 5.750%, 6/01/35 410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 413,530 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,150 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 7/10 at 100.00 BBB 1,151,967 Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 2,405 Total Industrials 2,431,157 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 4.1% (2.8% OF TOTAL INVESTMENTS) 860 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 772,624 Series 2007A, 5.000%, 1/01/37 380 Gaithersburg, Maryland, Economic Development Revenue Bonds, 1/20 at 100.00 N/R 391,423 Asbury Methodist Homes Inc., Series 2009B, 6.000%, 1/01/23 300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 283,602 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm Presbyterian Community, Series 2007A: 500 5.000%, 1/01/17 No Opt. Call N/R 462,040 220 5.250%, 1/01/27 1/17 at 100.00 N/R 183,304 435 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 394,945 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ----------------------------------------------------------------------------------------------------------------------------------- 2,695 Total Long-Term Care 2,487,938 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 20.8% (14.1% OF TOTAL INVESTMENTS) 300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 346,230 Series 2005A, 5.000%, 12/01/16 Cecil County, Maryland, Consolidated General Obligation Public Improvement Bonds, Series 2001B: 975 4.600%, 8/01/18 8/11 at 101.00 AA 1,032,515 1,020 4.600%, 8/01/19 8/11 at 101.00 AA 1,080,170 600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 687,678 5.000%, 8/01/16 - NPFG Insured 510 Frederick, Maryland, General Obligation Refunding and Improvement 12/11 at 101.00 AA 542,446 Bonds, Series 2001, 4.750%, 12/01/19 1,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,166,940 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15 4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 4,948,431 Public Improvement Refunding Bonds, Series 2001, 5.250%, 10/01/18
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 770 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA $ 774,597 Series 2001, 5.000%, 7/01/24 - AGM Insured 800 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 931,248 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,164,060 George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ----------------------------------------------------------------------------------------------------------------------------------- 11,705 Total Tax Obligation/General 12,674,315 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 17.4% (11.7% OF TOTAL INVESTMENTS) 250 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 253,855 Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 530 Baltimore Board of School Commissioners, Maryland, Revenue Bonds, 5/13 at 100.00 AA+ 590,924 City Public School System, Series 2003A, 5.000%, 5/01/15 Baltimore County, Maryland, Certificates of Participation, Health and Social Services Building Project, Series 2001: 1,580 5.000%, 8/01/20 8/11 at 101.00 AA+ 1,657,531 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,741,456 110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R 105,669 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 350 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 311,255 Center Project, Series 2004, 5.750%, 7/01/34 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,186,910 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AAA 1,521,109 Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 1,000 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A2 979,350 Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 780,530 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 386,432 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 1,033,630 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 10,255 Total Tax Obligation/Limited 10,548,651 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 5.7% (3.8% OF TOTAL INVESTMENTS) Maryland Health and Higher Educational Facilities Authority, Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series 2001: 650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 N/R 632,496 1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 N/R 913,730 1,780 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,907,626 Facilities Projects, Series 2007, 5.000%, 7/01/30 - AGM Insured (UB) - ----------------------------------------------------------------------------------------------------------------------------------- 3,430 Total Transportation 3,453,852 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 21.2% (14.3% OF TOTAL INVESTMENTS) (4) 1,000 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,092,830 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12) 90 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R (4) 92,246 Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded 7/01/10) - RAAI Insured 25 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 26,570 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call N/R (4) 1,424,682 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM)
Nuveen Investments 39 NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) $ 600,810 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 1,312,850 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 (Pre-refunded 6/01/11) 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) 2,104,760 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11) 900 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,047,474 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 1,000 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101.00 AAA 1,081,500 Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 (Pre-refunded 12/01/11) - FGIC Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,083,130 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded 10/01/10) 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,005,160 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 12,050 Total U.S. Guaranteed 12,872,012 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.2% (2.2% OF TOTAL INVESTMENTS) 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/10 at 100.00 A 965,170 10/01/34 - NPFG Insured 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 9/10 at 100.00 N/R 1,000,400 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,000 Total Utilities 1,965,570 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.4% (1.0% OF TOTAL INVESTMENTS) 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 302,399 2006C, 5.000%, 7/01/31 - AMBAC Insured 540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 562,205 2007D, 5.000%, 7/01/32 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 825 Total Water and Sewer 864,604 - ------------------------------------------------------------------------------------------------------------------------------------ $ 89,040 Total Investments (cost $88,596,455) - 148.0% 89,896,345 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (6.3)% (3,840,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (44.9)% (6) (27,300,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.2% 1,992,776 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 60,749,121 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value Measurements for more information. (6) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.4%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 40 Nuveen Investments NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER DISCRETIONARY - 3.5% (2.4% OF TOTAL INVESTMENTS) $ 2,385 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,947,019 Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured 380 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 310,981 Revenue Bonds, Series 2006B, 5.875%, 9/01/39 700 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 512,890 Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31 - ----------------------------------------------------------------------------------------------------------------------------------- 3,465 Total Consumer Discretionary 2,770,890 - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 2.9% (1.9% OF TOTAL INVESTMENTS) 2,280 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,238,071 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 13.1% (8.8% OF TOTAL INVESTMENTS) 225 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A2 232,227 Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 625 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 586,769 Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38 690 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 693,519 Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34 165 Maryland Health and Higher Educational Facilities Authority, 7/20 at 100.00 BBB- 167,412 Revenue Bonds, Patterson Park Public Charter School Issue, Series 2010, 6.000%, 7/01/40 625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 628,056 Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,034,550 Revenue Bonds, Johns Hopkins University, Series 2002A, 5.000%, 7/01/32 735 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 822,031 Revenue Bonds, Johns Hopkins University, Series 2004, Inverse 1003, 13.395%, 7/01/33 (IF) 925 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 910,061 Revenue Bonds, Maryland Institute College of Art, Series 2006, 5.000%, 6/01/30 625 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 603,063 Bonds, Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35 710 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 Aa3 770,719 Bonds, Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/18 1,000 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 Aa3 1,015,110 Revenue Bonds, Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%, 7/01/32 - FGIC Insured 985 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA+ 1,020,913 Bonds, Series 2001B, 4.625%, 4/01/21 800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 886,872 Bonds, Series 2006A, 5.000%, 10/01/22 890 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 870,500 McDaniel College, Series 2006, 5.000%, 11/01/31 - ----------------------------------------------------------------------------------------------------------------------------------- 10,000 Total Education and Civic Organizations 10,241,802 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 27.5% (18.5% OF TOTAL INVESTMENTS) 445 Maryland Health and Higher Education Facilities Authority, 7/19 at 100.00 A 452,908 Revenue Bonds, University of Maryland Medical System Issue, Series 2010, 5.125%, 7/01/39 700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A 703,983 Revenue Bonds, University of Maryland Medical System, Series 2006, 5.000%, 7/01/31 335 Maryland Health and Higher Educational Facilities Authority, 7/19 at 100.00 A- 334,983 Revenue Bonds, Anne Arundel Health System, Series 2010, 5.000%, 7/01/40 1,000 Maryland Health and Higher Educational Facilities Authority, 7/10 at 100.00 AAA 1,000,660 Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%, 7/01/33 - AGM Insured 775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 795,189 Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%, 7/01/36 1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,271,300 Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32
Nuveen Investments 41 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 1,750 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A3 $ 1,707,370 Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%, 7/01/40 1,070 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 N/R 872,478 Revenue Bonds, Civista Medical Center, Series 2005, 5.000%, 7/01/37 - RAAI Insured 885 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 830,068 Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%, 7/01/29 700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 662,648 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 800 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 800,128 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 Aa3 1,010,760 Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%, 5/15/21 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 978,200 Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%, 7/01/33 595 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 620,204 Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%, 7/01/28 - AGC Insured 900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A2 925,335 Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24 1,690 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AA+ 1,717,530 Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 - BHAC Insured Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Mercy Medical Center Project, Series 2007A: 525 5.000%, 7/01/37 7/17 at 100.00 BBB 481,320 340 5.500%, 7/01/42 7/17 at 100.00 BBB 330,504 650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 650,540 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 850 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 861,985 Revenue Bonds, Peninsula Regional Medical Center, Series 2006, 5.000%, 7/01/36 1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,867,177 Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 1,220 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 1,223,648 Revenue Bonds, Washington County Hospital, Series 2008, 5.750%, 1/01/38 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 785,718 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 900 Prince George's County, Maryland, Revenue Bonds, Dimensions 7/10 at 100.00 B3 623,070 Health Corporation, Series 1994, 5.300%, 7/01/24 (5) - ----------------------------------------------------------------------------------------------------------------------------------- 22,000 Total Health Care 21,507,706 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 7.7% (5.2% OF TOTAL INVESTMENTS) 980 Maryland Community Development Administration, Housing Revenue 7/12 at 100.00 Aa2 980,245 Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative Minimum Tax) 1,250 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B3 945,813 Housing Revenue Bonds, University of Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23 Maryland Economic Development Corporation, Student Housing Revenue Bonds, Sheppard Pratt University Village, Series 2001: 20 5.875%, 7/01/21 - ACA Insured 7/11 at 101.00 N/R 18,886 150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 N/R 131,084 475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 450,737 Revenue Refunding Bonds, University of Maryland College Park Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured Montgomery County Housing Opportunities Commission, Maryland, Multifamily Housing Development Bonds, Series 2002B: 515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 516,241 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,005,730 - ----------------------------------------------------------------------------------------------------------------------------------- 6,390 Total Housing/Multifamily 6,048,736 - -----------------------------------------------------------------------------------------------------------------------------------
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 7.8% (5.3% OF TOTAL INVESTMENTS) $ 1,280 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 $ 1,345,626 Housing and Community Development, Residential Revenue Bonds, Series 2008C, 5.375%, 9/01/39 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2006: 595 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 599,701 1,200 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 1,209,804 815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 821,936 Maryland Community Development Administration, Department of Housing and Community Development, Residential Revenue Bonds, Series 2007: 350 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 354,781 620 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 618,097 1,160 Maryland Community Development Administration, Department of 9/14 at 100.00 Aa2 1,139,220 Housing and Community Development, Residential Revenue Bonds, Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB) - ----------------------------------------------------------------------------------------------------------------------------------- 6,020 Total Housing/Single Family 6,089,165 - ----------------------------------------------------------------------------------------------------------------------------------- INDUSTRIALS - 3.4% (2.3% OF TOTAL INVESTMENTS) 1,090 Maryland Economic Development Corporation, Economic Development 6/20 at 100.00 Baa3 1,116,651 Revenue Bonds, Transportation Facilities Project, Series 2010A, 5.750%, 6/01/35 510 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 514,391 Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax) 1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 7/10 at 100.00 BBB 1,001,710 Resource Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 2,600 Total Industrials 2,632,752 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 3.7% (2.5% OF TOTAL INVESTMENTS) 1,050 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 943,320 Series 2007A, 5.000%, 1/01/37 380 Gaithersburg, Maryland, Economic Development Revenue Bonds, 1/20 at 100.00 N/R 391,423 Asbury Methodist Homes Inc., Series 2009B, 6.000%, 1/01/23 400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 378,136 Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, King Farm Presbyterian Community, Series 2007A: 280 5.000%, 1/01/17 No Opt. Call N/R 258,742 520 5.250%, 1/01/27 1/17 at 100.00 N/R 433,264 540 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 490,277 Revenue Bonds, Mercy Ridge Retirement Community, Series 2007, 4.750%, 7/01/34 - ----------------------------------------------------------------------------------------------------------------------------------- 3,170 Total Long-Term Care 2,895,162 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 16.7% (11.3% OF TOTAL INVESTMENTS) 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 Aa1 1,047,420 Refunding Bonds, Series 2002, 4.375%, 4/01/17 380 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA+ 438,558 Bonds, Series 2005A, 5.000%, 12/01/16 1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 Aa1 1,350,518 Public Improvement Bonds, Series 2002, 4.400%, 1/15/16 710 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 813,752 5.000%, 8/01/16 - NPFG Insured 1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,114,010 George's County, General Obligation Bonds, Park Acquisition and Development, Series 2004EE-2, 5.000%, 1/15/17 1,850 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 2,158,839 Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15
Nuveen Investments 43 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL (continued) $ 1,440 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA $ 1,687,421 Public Improvement Bonds, Series 2006A, 5.000%, 5/01/16 1,000 Prince George's County, Maryland, General Obligation No Opt. Call AAA 1,069,140 Consolidated Public Improvement Bonds, Series 2004C, 5.000%, 12/01/11 1,000 St. Mary's County, Maryland, General Obligation Hospital Bonds, No Opt. Call AA 1,102,400 Series 2002, 5.000%, 10/01/12 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,164,060 George's Counties, Maryland, Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16 1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,164,060 George's Counties, Maryland, Water Supply Bonds, Series 2005, 5.000%, 6/01/16 - ----------------------------------------------------------------------------------------------------------------------------------- 11,640 Total Tax Obligation/General 13,110,178 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 30.7% (20.7% OF TOTAL INVESTMENTS) 1,000 Baltimore Board of School Commissioners, Maryland, Revenue Bonds, 5/13 at 100.00 AA+ 1,114,950 City Public School System, Series 2003A, 5.000%, 5/01/15 135 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R 135,072 Development Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 - RAAI Insured 450 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 400,185 Town Center Project, Series 2004, 5.750%, 7/01/34 5,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,934,550 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,200 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AAA 2,293,390 Department of Transportation Headquarters Building, Series 2002, 4.750%, 6/01/22 450 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 491,288 Montgomery County Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13 2,935 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 3,188,056 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+ 1,600,234 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,757,959 1,210 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 1,055,241 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 467,786 Victoria Falls Project, Series 2005, 5.250%, 7/01/35 1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 1,240,356 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Bonds, Series 2002G: 1,000 5.250%, 7/01/17 7/12 at 100.00 A3 1,025,510 1,205 5.250%, 7/01/20 7/12 at 100.00 A3 1,225,328 1,275 5.250%, 7/01/21 7/12 at 100.00 A3 1,293,322 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 759,612 Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 22,420 Total Tax Obligation/Limited 23,982,839 - -----------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 3.0% (2.0% OF TOTAL INVESTMENTS) $ 2,210 Maryland Transportation Authority, Revenue Bonds, 7/17 at 100.00 AAA $ 2,368,457 Transportation Facilities Projects, Series 2007, 5.000%, 7/01/30 - AGM Insured (UB) - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 21.4% (14.4% OF TOTAL INVESTMENTS) (4) 255 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 298,108 2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured 110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R (4) 112,736 Development Special Obligation Bonds, Series 2001A, 5.600%, 7/01/20 (Pre-refunded 7/01/10) - RAAI Insured 280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 297,578 Revenue Bonds, Collington Episcopal Life Care Community Inc., Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11) 285 Maryland Health and Higher Educational Facilities Authority, No Opt. Call N/R (4) 322,250 Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM) 725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 829,690 Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14) 770 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 896,172 Transportation Facilities Projects, First Series 1978, 6.800%, 7/01/16 (ETM) 4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 5,279,126 Collateralized Mortgage Revenue Bonds, Fairview and Hillside Projects, Series 2002A, 4.700%, 11/20/22 (Pre-refunded 11/20/12) 1,525 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,547,189 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - AGM Insured 3,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,596,985 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded 10/01/10) 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,133,220 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured (ETM) 235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 253,711 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA+ (4) 2,164,520 Bonds, Series 2002A, 5.125%, 4/01/22 (Pre-refunded 4/01/12) 25 Washington Suburban Sanitary District, Montgomery and Prince 6/11 at 101.00 AAA 26,425 George's Counties, Maryland, General Obligation Construction Bonds, Second Series 2001, 5.000%, 6/01/17 (Pre-refunded 6/01/11) - ----------------------------------------------------------------------------------------------------------------------------------- 15,570 Total U.S. Guaranteed 16,757,710 - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 1.6% (1.1% OF TOTAL INVESTMENTS) 1,250 Maryland Energy Financing Administration, Revenue Bonds, AES 9/10 at 100.00 N/R 1,250,500 Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- WATER AND SEWER - 5.3% (3.6% OF TOTAL INVESTMENTS) 2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AA 2,600,583 Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured 345 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 366,062 2006C, 5.000%, 7/01/31 - AMBAC Insured 660 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 687,139 2007D, 5.000%, 7/01/32 - AMBAC Insured
Nuveen Investments 45 NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 430 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA $ 502,824 Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ 4,005 Total Water and Sewer 4,156,608 - ------------------------------------------------------------------------------------------------------------------------------------ $ 113,020 Total Investments (cost $113,411,699) - 148.3% 116,050,576 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (5.4)% (4,255,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (26.4)% (6) (20,700,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 1,995,517 --------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (18.9)% (6) (14,825,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 78,266,093 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) For fair value measurement disclosure purposes, investment categorized as Level 3. See Notes to Financial Statements, Footnote 2 - Fair Value Measurements for more information. (6) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 17.8% and 12.8%, respectively. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 46 Nuveen Investments NPV | Nuveen Virginia Premium Income Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 3.3% (2.3% OF TOTAL INVESTMENTS) $ 6,640 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 4,430,806 Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 6.6% (4.5% OF TOTAL INVESTMENTS) 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A2 1,014,160 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 700 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 696,143 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 2,815 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 2,937,058 Revenue Bonds, Series 2005, 5.000%, 6/01/37 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, Series 2004A, 5/14 at 101.00 Aa2 1,844,509 5.000%, 5/01/17 - AMBAC Insured - ----------------------------------------------------------------------------------------------------------------------------------- 8,270 Total Education and Civic Organizations 8,677,378 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 30.2% (20.8% OF TOTAL INVESTMENTS) 2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 2,005,960 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 1,500 Arlington County Industrial Development Authority, Virginia, 7/20 at 100.00 A2 1,529,730 Hospital Revenue Bonds, Virginia Hospital Center Arlington Health System, Refunding Series 2010, 5.000%, 7/01/31 650 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 656,253 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27 1,705 Fairfax County Industrial Development Authority, Virginia, 5/19 at 100.00 AA+ 2,032,292 Healthcare Revenue Bonds, Inova Health System, Series 2009, Trust 11733, 14.518%, 5/15/35 (IF) 4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,295,230 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,000 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 1,085,640 Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2007, 5.250%, 6/15/23 1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,252,725 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call A 1,118,310 Hospital Revenue Bonds, Memorial Regional Medical Center, Series 1995, 6.375%, 8/15/18 - NPFG Insured 2,300 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 Baa1 2,151,397 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 1,440 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A- 1,460,434 Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,500 Henrico County Industrial Development Authority, Virginia, No Opt. Call A 1,692,870 Healthcare Revenue Bonds, Bon Secours Health System, Series 1996, 6.250%, 8/15/20 - NPFG Insured 1,500 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A3 1,504,995 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 4,750 Medical College of Virginia Hospital Authority, General Revenue 7/10 at 100.00 A+ 4,751,425 Bonds, Series 1998, 5.125%, 7/01/23 - NPFG Insured 3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 A+ 3,115,590 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - NPFG Insured Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2006: 2,000 5.250%, 6/15/26 6/16 at 100.00 A3 2,039,440 1,010 5.250%, 6/15/31 6/16 at 100.00 A3 1,019,343 1,695 5.250%, 6/15/37 6/16 at 100.00 A3 1,700,170 850 Virginia Small Business Finance Authority, Healthcare Facilities 5/20 at 100.00 AA 868,658 Revenue Bonds, Refunding Sentara Healthcare, Series 2010, 5.000%, 11/01/40 2,210 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 2,067,234 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37
Nuveen Investments 47 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 540 Winchester Industrial Development Authority, Virginia, Hospital 1/19 at 100.00 A+ $ 557,221 Revenue Bonds Valley Health System Obligated Group, Series 2009E, 5.625%, 1/01/44 1,425 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 A+ 1,475,260 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 500 Wisconsin Health and Educational Facilities Authority, Revenue 4/20 at 100.00 A3 506,585 Bonds, Aurora Health Care, Inc., Series 2010A, 5.625%, 4/15/39 - ----------------------------------------------------------------------------------------------------------------------------------- 38,675 Total Health Care 39,886,762 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 3.3% (2.3% OF TOTAL INVESTMENTS) 1,340 Arlington County Industrial Development Authority, Virginia, 11/10 at 100.00 Aaa 1,352,864 Multifamily Housing Revenue Bonds, Patrick Henry Apartments, Series 2000, 6.050%, 11/01/32 (Mandatory put 11/01/20) (Alternative Minimum Tax) Danville Industrial Development Authority, Virginia, Student Housing Revenue Bonds, Collegiate Housing Foundation, Averett College, Series 1999A: 500 6.875%, 6/01/20 6/10 at 101.00 N/R 502,265 1,500 7.000%, 6/01/30 6/10 at 101.00 N/R 1,496,790 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, Vistas 10/10 at 102.00 AAA 1,020,890 GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 4,340 Total Housing/Multifamily 4,372,809 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 7.9% (5.5% OF TOTAL INVESTMENTS) 300 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 295,614 Securities Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) 850 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 858,211 Bonds, Series 2001H-1, 5.350%, 7/01/31 - NPFG Insured 1,500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 1,465,575 Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 2,740 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 2,747,234 Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative Minimum Tax) 1,340 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 1,334,962 Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 3,900 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 3,811,119 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 10,630 Total Housing/Single Family 10,512,715 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 4.7% (3.3% OF TOTAL INVESTMENTS) 2,765 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 2,703,147 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37 800 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB+ 682,480 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.875%, 10/01/36 1,495 Henrico County Economic Development Authority, Virginia, GNMA 7/10 at 101.00 AAA 1,517,051 Mortgage-Backed Securities Program Assisted Living Revenue Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29 Henrico County Economic Development Authority, Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006: 100 5.000%, 10/01/27 10/11 at 103.00 BBB- 97,950 1,345 5.000%, 10/01/35 No Opt. Call BBB- 1,274,643 - ----------------------------------------------------------------------------------------------------------------------------------- 6,505 Total Long-Term Care 6,275,271 - ----------------------------------------------------------------------------------------------------------------------------------- MATERIALS - 1.1% (0.7% OF TOTAL INVESTMENTS) 500 Bedford County Industrial Development Authority, Virginia, 8/10 at 100.00 Ba3 470,380 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 1,000 Goochland County Industrial Development Authority, Virginia, 6/10 at 100.50 Ba3 929,980 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 1,500 Total Materials 1,400,360 - -----------------------------------------------------------------------------------------------------------------------------------
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 18.4% (12.7% OF TOTAL INVESTMENTS) Chesapeake, Virginia, General Obligation Bonds, Water and Sewerage Series 2003B: $ 1,880 5.000%, 6/01/21 6/13 at 100.00 AA+ $ 1,986,107 2,060 5.000%, 6/01/23 6/13 at 100.00 AA+ 2,163,536 1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 Aa2 1,454,281 and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured 105 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 109,460 Bonds, Series 2002A, 5.250%, 5/01/22 1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,315,623 5.000%, 6/01/21 1,300 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 Aa1 1,457,053 5.000%, 5/01/16 1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call Aa2 1,465,562 5.000%, 4/01/15 - NPFG Insured 1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,647,432 5.000%, 7/15/21 - AGM Insured 1,430 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,585,026 Series 2002A, 5.000%, 10/01/17 1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 1,324,647 5.000%, 12/01/15 2,000 Virginia Beach, Virginia, General Obligation Bonds, Series 5/13 at 100.00 AAA 2,194,440 2003B, 5.000%, 5/01/15 1,100 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 1,280,103 5.000%, 1/15/20 4,500 Virginia Beach, Virginia, General Obligation Bonds, Series 2008, 10/17 at 100.00 AAA 4,898,516 5.000%, 10/01/27 (UB) 1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,506,453 Bonds, Series 2001, 5.000%, 6/01/20 - ----------------------------------------------------------------------------------------------------------------------------------- 22,235 Total Tax Obligation/General 24,388,239 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 27.2% (18.8% OF TOTAL INVESTMENTS) Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 335 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 311,637 260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 239,179 1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 Aa3 1,425,706 Revenue Bonds, School Facilities Project, Series 2005, 5.000%, 1/01/20 - NPFG Insured Cumberland County, Virginia, Certificates of Participation, Series 1997: 685 6.200%, 7/15/12 No Opt. Call N/R 706,762 1,375 6.375%, 7/15/17 No Opt. Call N/R 1,434,373 1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 A 1,078,970 Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 - NPFG Insured 1,000 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 1,117,610 Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 Fairfax County Economic Development Authority, Virginia, Lease Revenue Bonds, Laurel Hill Public Facilities Projects, Series 2003: 2,210 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,473,962 1,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 1,239,315 1,660 Front Royal and Warren County Industrial Development Authority, 4/14 at 100.00 AAA 1,784,865 Virginia, Lease Revenue Bonds, Series 2004B, 5.000%, 4/01/18 - AGM Insured 1,270 James City County Economic Development Authority, Virginia, 7/15 at 100.00 AA 1,386,561 Revenue Bonds, County Government Projects, Series 2005, 5.000%, 7/15/19 445 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 470,516 Public Facility Lease Revenue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 1,185 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,189,847 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - AGM Insured 2,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 2,067,260 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 519,350 Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured 5,875 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 1,897,684 Revenue Bonds, Series 2005C, 0.000%, 7/01/28 - AMBAC Insured
Nuveen Investments 49 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED (continued) Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds, Series 2002D: $ 265 5.250%, 7/01/27 7/12 at 100.00 A3 $ 266,916 320 5.250%, 7/01/36 7/12 at 100.00 A3 321,238 1,300 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 1,360,450 Bonds, First Subordinate Series 2010A, 5.500%, 8/01/42 1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 N/R 1,131,567 Lease Revenue Bonds, School Facilities, Series 2003B, 4.375%, 8/01/20 - AMBAC Insured 1,600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 A+ 1,694,592 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - NPFG Insured 2,500 Stafford County Economic Development Authority, Virginia, Lease 4/18 at 100.00 AAA 2,610,225 Revenue Bonds, Public Facility Projects, Series 2008, 5.000%, 4/01/33 - AGC Insured (UB) 1,400 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 1,529,556 Bonds, Series 2005A, 5.000%, 5/01/22 850 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 1,104,890 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-3B, 12.968%, 2/01/27 (IF) 850 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 1,089,012 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-4B, 12.884%, 2/01/28 (IF) 1,625 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 1,856,449 Resolution, Series 2005C, 5.000%, 8/01/17 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2000B: 95 5.500%, 5/01/20 - AGM Insured 11/10 at 100.00 AAA 96,322 550 5.500%, 5/01/30 - AGM Insured 11/10 at 100.00 AAA 556,749 775 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 808,418 Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,257,780 U.S. Route 58 Corridor Development Program, Series 2004B, 5.000%, 5/15/15 - ----------------------------------------------------------------------------------------------------------------------------------- 42,045 Total Tax Obligation/Limited 36,027,761 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 11.9% (8.2% OF TOTAL INVESTMENTS) 2,500 Metropolitan Washington D.C. Airports Authority, System Revenue 10/17 at 100.00 AA- 2,508,975 Bonds, Series 2007B, 5.000%, 10/01/35 - AMBAC Insured (Alternative Minimum Tax) 3,200 Metropolitan Washington D.C. Airports Authority, Virginia, 10/28 at 100.00 BBB+ 1,895,520 Dulles Toll Road Revenue Bonds, Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44 4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 A 4,023,200 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 1,000 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 A 1,005,230 5.000%, 2/01/23 - NPFG Insured 2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call A 2,714,900 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 285 Virginia Port Authority, Port Facilities Revenue Refunding Bonds 7/19 at 100.00 Aa3 297,255 Series 2010, 5.000%, 7/01/40 1,260 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 Aa3 1,218,937 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) 2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,051,660 Bonds, Series 2001A, 5.250%, 8/01/23 - ----------------------------------------------------------------------------------------------------------------------------------- 16,745 Total Transportation 15,715,677 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 15.2% (10.5% OF TOTAL INVESTMENTS) (4) 3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 N/R (4) 3,598,805 Rate Revenue Bonds, Institute for Defense Analyses, Series 2000A, 5.900%, 10/01/30 (Pre-refunded 10/01/10) - AMBAC Insured
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED (4) (continued) $ 750 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA $ 867,593 Bonds, Series 2002, 5.000%, 11/01/24 - AGM Insured (ETM) 925 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,003,181 Refunding Bonds, Series 2002, 5.375%, 4/01/19 (Pre-refunded 4/01/12) 60 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A3 (4) 66,934 Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: 375 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 N/R (4) 416,359 800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 N/R (4) 889,816 815 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 888,798 Revenue Bonds, Series 2002D, 5.000%, 7/01/32 (Pre-refunded 7/01/12) - AGM Insured 2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,569,275 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded 10/01/10) Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds, Series 2002D: 735 5.250%, 7/01/27 (Pre-refunded 7/01/12) 7/12 at 100.00 A3 (4) 800,533 880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 A3 (4) 958,461 385 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 386,898 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10) 440 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 (4) 466,862 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: 790 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 814,079 3,850 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 4,307,804 1,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 1,030,270 Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) 965 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA (4) 1,016,666 Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 (Pre-refunded 5/01/11) - ----------------------------------------------------------------------------------------------------------------------------------- 18,770 Total U.S. Guaranteed 20,082,334 - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES - 6.9% (4.7% OF TOTAL INVESTMENTS) Bristol, Virginia, Utility System Revenue Refunding Bonds, Series 2003: 1,705 5.250%, 7/15/14 - NPFG Insured 7/13 at 100.00 A 1,802,901 1,800 5.250%, 7/15/15 - NPFG Insured 7/13 at 100.00 A 1,889,730 2,775 5.250%, 7/15/23 - NPFG Insured 7/13 at 100.00 A 2,852,867 2,500 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 2,530,175 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 8,780 Total Utilities 9,075,673 - ----------------------------------------------------------------------------------------------------------------------------------- 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 112,491 800 5.000%, 4/01/27 4/12 at 100.00 AAA 833,368 1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AAA 1,062,430 Sewerage System Revenue Bonds, Series 2004, 5.000%, 1/01/26
Nuveen Investments 51 NPV | Nuveen Virginia Premium Income Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: $ 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AA+ $ 1,372,395 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AA+ 1,445,384 2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa2 2,302,403 Series 2000, 6.000%, 9/01/24 1,800 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AAA 1,924,182 Series 2005, 5.000%, 10/01/30 1,515 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 1,825,499 Series 2007, Trust 3036, 13.137%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 10,160 Total Water and Sewer 10,878,152 - ------------------------------------------------------------------------------------------------------------------------------------ $ 195,295 Total Investments (cost $187,559,056) - 144.9% 191,723,937 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.5)% (4,630,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (24.3)% (5) (32,205,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.2% 2,963,484 --------------------------------------------------------------------------------------------------------------------- Auction Rate Preferred Shares, at Liquidation Value - (19.3)% (5) (25,550,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 132,302,421 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments are 16.8% and 13.3%, respectively. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 52 Nuveen Investments NGB | Nuveen Virginia Dividend Advantage Municipal Fund | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 3.5% (2.3% OF TOTAL INVESTMENTS) $ 1,660 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 1,107,701 Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 715 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 440,583 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 - ----------------------------------------------------------------------------------------------------------------------------------- 2,375 Total Consumer Staples 1,548,284 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 4.4% (2.9% OF TOTAL INVESTMENTS) 500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 472,875 Facilities Revenue Bonds, Averett University, Series 2001, 6.000%, 3/15/22 500 Prince William County Industrial Development Authority, 10/13 at 101.00 A2 507,080 Virginia, Educational Facilities Revenue Bonds, Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999: 160 5.375%, 2/01/19 8/10 at 100.50 BBB- 160,118 320 5.375%, 2/01/29 8/10 at 100.50 BBB- 303,885 500 Virginia College Building Authority, Educational Facilities 7/10 at 100.00 N/R 500,325 Revenue Refunding Bonds, Marymount University, Series 1998, 5.100%, 7/01/18 - RAAI Insured - ----------------------------------------------------------------------------------------------------------------------------------- 1,980 Total Education and Civic Organizations 1,944,283 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 25.6% (16.9% OF TOTAL INVESTMENTS) 1,500 Arlington County Industrial Development Authority, Virginia, 7/20 at 100.00 A2 1,529,730 Hospital Revenue Bonds, Virginia Hospital Center Arlington Health System, Refunding Series 2010, 5.000%, 7/01/31 250 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 247,775 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/37 565 Fairfax County Industrial Development Authority, Virginia, 5/19 at 100.00 AA+ 673,457 Healthcare Revenue Bonds, Inova Health System, Series 2009, Trust 11733, 14.518%, 5/15/35 (IF) 100 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 109,180 Hospital Revenue Refunding Bonds, Inova Health System, Series 1993A, 5.000%, 8/15/23 1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 BBB+ 1,015,620 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 500 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 542,820 Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2007, 5.250%, 6/15/23 500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 501,090 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 820 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 Baa1 767,020 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 480 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A- 486,811 Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 525 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A3 526,748 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 N/R 801,168 Revenue Refunding and Improvement Bonds, Norton Community Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2006: 750 5.250%, 6/15/25 6/16 at 100.00 A3 773,108 360 5.250%, 6/15/31 6/16 at 100.00 A3 363,330 605 5.250%, 6/15/37 6/16 at 100.00 A3 606,845 450 Virginia Small Business Finance Authority, Healthcare Facilities 5/20 at 100.00 AA 459,878 Revenue Bonds, Refunding Sentara Healthcare, Series 2010, 5.000%, 11/01/40 785 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 734,289 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 360 Winchester Industrial Development Authority, Virginia, Hospital 1/19 at 100.00 A+ 371,480 Revenue Bonds Valley Health System Obligated Group, Series 2009E, 5.625%, 1/01/44
Nuveen Investments 53 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 715 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 A+ $ 740,218 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 180 Wisconsin Health and Educational Facilities Authority, Revenue 4/20 at 100.00 A3 182,371 Bonds, Aurora Health Care, Inc., Series 2010A, 5.625%, 4/15/39 - ----------------------------------------------------------------------------------------------------------------------------------- 11,245 Total Health Care 11,432,938 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 5.0% (3.3% OF TOTAL INVESTMENTS) 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 1,038,400 Multifamily Housing Mortgage Revenue Bonds, Arlington View Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Mandatory put 11/01/19) (Alternative Minimum Tax) 1,000 Virginia Housing Development Authority, Rental Housing Bonds, 10/10 at 100.00 AA+ 1,004,000 Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) 200 Virginia Housing Development Authority, Rental Housing Bonds, 10/19 at 100.00 AA+ 201,920 Series 2010F, 5.000%, 4/01/45 - ----------------------------------------------------------------------------------------------------------------------------------- 2,200 Total Housing/Multifamily 2,244,320 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 9.5% (6.3% OF TOTAL INVESTMENTS) 850 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 858,211 Bonds, Series 2001H-1, 5.350%, 7/01/31 - NPFG Insured 600 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 586,230 Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 960 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 962,534 Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative Minimum Tax) 480 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 478,195 Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 1,400 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 1,368,094 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 4,290 Total Housing/Single Family 4,253,264 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 11.5% (7.6% OF TOTAL INVESTMENTS) 700 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 633,941 Residential Care Facilities Mortgage Revenue Bonds, Westminster-Cantebury of the Blue Ridge, Series 2007, 5.000%, 1/01/31 350 Chesterfield County Health Center Commission, Virginia, Mortgage 12/15 at 100.00 N/R 304,280 Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 1,005 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 982,518 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37 500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB+ 448,175 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 540 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 511,753 Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 700 Industrial Development Authority of the County of Prince 1/17 at 100.00 N/R 424,459 William, Virginia, Residential Care Facility Revenue Bonds, Westminster at Lake, First Mortgage, Series 2006, 5.125%, 1/01/26 650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 657,319 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 530 Roanoke Industrial Development Authority, Virginia, Residential 12/16 at 100.00 N/R 375,834 Revenue Bonds, Virginia Lutheran Homes Incorporated, Series 2006, 5.000%, 12/01/39 350 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 305,571 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 350 Virginia Beach Development Authority, Virginia, Residential Care 11/15 at 100.00 N/R 337,740 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 167,673 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ----------------------------------------------------------------------------------------------------------------------------------- 5,850 Total Long-Term Care 5,149,263 - -----------------------------------------------------------------------------------------------------------------------------------
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS) $ 100 Bedford County Industrial Development Authority, Virginia, 8/10 at 100.00 Ba3 $ 94,076 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 20 Bedford County Industrial Development Authority, Virginia, 6/10 at 101.00 Ba3 20,057 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, 6/10 at 100.50 Ba3 204,596 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 340 Total Materials 318,729 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 11.5% (7.5% OF TOTAL INVESTMENTS) 700 Loudoun County, Virginia, General Obligation Bonds, Series 12/16 at 100.00 AAA 770,693 2006B, 5.000%, 12/01/25 845 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 Aa1 947,084 5.000%, 5/01/16 620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 712,603 5.000%, 7/15/17 - AGM Insured 400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 466,836 5.000%, 12/01/15 400 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 465,492 5.000%, 1/15/20 1,600 Virginia Beach, Virginia, General Obligation Bonds, Series 2008, 10/17 at 100.00 AAA 1,750,336 5.000%, 10/01/26 (UB) - ----------------------------------------------------------------------------------------------------------------------------------- 4,565 Total Tax Obligation/General 5,113,044 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 21.9% (14.4% OF TOTAL INVESTMENTS) 100 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 92,794 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, Revenue 6/13 at 102.00 N/R 444,800 Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 111,631 95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 87,392 500 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 558,805 Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 160 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 169,174 Public Facility Lease Revenue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 580 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aa1 623,314 County Facilities, Series 2005, 5.000%, 6/01/20 - AMBAC Insured 700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 723,541 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 3,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 901,800 Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured 780 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 816,270 Bonds, First Subordinate Series 2010A, 5.500%, 8/01/42 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 N/R 1,033,300 Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 A+ 635,472 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - NPFG Insured 890 Stafford County Economic Development Authority, Virginia, Lease 4/18 at 100.00 AAA 929,240 Revenue Bonds, Public Facility Projects, Series 2008, 5.000%, 4/01/33 - AGC Insured (UB) 960 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 976,618 Loan Note, Series 1999A, 6.375%, 10/01/19 195 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 213,045 Bonds, Series 2005A, 5.000%, 5/01/22 280 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 363,964 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-3B, 12.968%, 2/01/27 (IF)
Nuveen Investments 55 NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED (continued) $ 280 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ $ 358,733 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-4B, 12.884%, 2/01/28 (IF) 345 Virginia Gateway Community Development Authority, Prince William 3/13 at 102.00 N/R 333,870 County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 345 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 394,138 Resolution, Series 2005C, 5.000%, 8/01/17 - ----------------------------------------------------------------------------------------------------------------------------------- 11,430 Total Tax Obligation/Limited 9,767,901 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 27.0% (17.8% OF TOTAL INVESTMENTS) 1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,084,910 Bonds, Richmond International Airport, Series 2005A, 5.000%, 7/01/18 - AGM Insured 1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, General No Opt. Call A 1,081,220 Resolution Revenue Refunding Bonds, Series 1998, 5.500%, 7/01/25 - NPFG Insured 3,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AA- 3,059,100 Revenue Bonds, Series 2001A, 5.500%, 10/01/27 - NPFG Insured (Alternative Minimum Tax) 250 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AA- 257,298 Revenue Bonds, Series 2001B, 5.000%, 10/01/21 - NPFG Insured 1,300 Metropolitan Washington D.C. Airports Authority, Virginia, 10/28 at 100.00 BBB+ 770,055 Dulles Toll Road Revenue Bonds, Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44 1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 A 1,508,700 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 A 502,615 5.000%, 2/01/23 - NPFG Insured 500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call A 542,980 Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 - FGIC Insured 285 Virginia Port Authority, Port Facilities Revenue Refunding Bonds 7/19 at 100.00 Aa3 297,255 Series 2010, 5.000%, 7/01/40 455 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 Aa3 440,172 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) 1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,256,642 Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,250,275 Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 12,265 Total Transportation 12,051,222 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 26.3% (17.3% OF TOTAL INVESTMENTS) (4) 500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (4) 542,820 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 (Pre-refunded 1/01/12) 1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,139,540 Series 2001, 5.000%, 7/15/21 - AGM Insured (ETM) Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: 30 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 31,283 850 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (4) 886,678 20 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A3 (4) 22,311 Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12) 2,310 Leesburg, Virginia, General Obligation Public Improvement Bonds, 1/11 at 101.00 AA+ (4) 2,404,063 Series 2000, 5.125%, 1/15/21 (Pre-refunded 1/15/11) - FGIC Insured 425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 N/R (4) 471,873 Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A, 6.000%, 6/01/22 (Pre-refunded 6/01/12) 500 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 582,635 Bonds, Series 2005B, 5.000%, 6/01/18 (Pre-refunded 6/01/15) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,500 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,541,565 1,500 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,541,565 155 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 155,764 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10)
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 120 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 (4) $ 124,018 Horse Center Revenue Refunding Bonds, Series 2001B, 6.125%, 7/15/11 (ETM) 880 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 (4) 933,724 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) 725 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/15 at 100.00 AAA 811,210 Settlement Asset-Backed Bonds, Series 2005, 5.500%, 6/01/26 (Pre-refunded 6/01/15) 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ (4) 535,890 Revenue Bonds, 21st Century College Program, Series 2002A, 5.000%, 2/01/22 (Pre-refunded 2/01/12) - ------------------------------------------------------------------------------------------------------------------------------------ 11,015 Total U.S. Guaranteed 11,724,939 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.3% (1.5% OF TOTAL INVESTMENTS) 1,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 1,012,070 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.7% (1.7% OF TOTAL INVESTMENTS) 500 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AAA 534,495 Series 2005, 5.000%, 10/01/30 545 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 656,698 Series 2007, Trust 3036, 13.137%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 1,045 Total Water and Sewer 1,191,193 - ------------------------------------------------------------------------------------------------------------------------------------ $ 69,600 Total Investments (cost $67,631,798) - 151.9% 67,751,450 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.7)% (1,640,000) -------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (51.1)% (5) (22,800,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.9% 1,300,858 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 44,612,308 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.7%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 57 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- CONSUMER STAPLES - 3.5% (2.3% OF TOTAL INVESTMENTS) $ 3,100 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 2,068,599 Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 1,430 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 881,166 Settlement Asset-Backed Bonds, Series 2007B2, 0.000%, 6/01/46 - ----------------------------------------------------------------------------------------------------------------------------------- 4,530 Total Consumer Staples 2,949,765 - ----------------------------------------------------------------------------------------------------------------------------------- EDUCATION AND CIVIC ORGANIZATIONS - 6.6% (4.3% OF TOTAL INVESTMENTS) 1,000 Fairfax County Economic Development Authority, Virginia, Revenue 9/10 at 100.00 A3 1,006,690 Bonds, National Wildlife Federation, Series 1999, 5.375%, 9/01/29 - NPFG Insured 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A2 1,014,160 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- 1,491,735 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.375%, 12/01/21 2,000 Winchester Industrial Development Authority, Virginia, 10/10 at 100.00 A 2,011,780 Educational Facilities First Mortgage Revenue Bonds, Shenandoah University, Series 1998, 5.250%, 10/01/28 - NPFG Insured - ----------------------------------------------------------------------------------------------------------------------------------- 5,500 Total Education and Civic Organizations 5,524,365 - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE - 32.7% (21.5% OF TOTAL INVESTMENTS) 1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,504,470 Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 2,000 Arlington County Industrial Development Authority, Virginia, 7/20 at 100.00 A2 2,039,640 Hospital Revenue Bonds, Virginia Hospital Center Arlington Health System, Refunding Series 2010, 5.000%, 7/01/31 450 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 454,329 Hospital Revenue Bonds, Halifax Regional Hospital Incorporated, Series 2007, 5.000%, 9/01/27 1,070 Fairfax County Industrial Development Authority, Virginia, 5/19 at 100.00 AA+ 1,275,397 Healthcare Revenue Bonds, Inova Health System, Series 2009, Trust 11733, 14.518%, 5/15/35 (IF) 3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 BBB+ 3,046,860 Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 1,000 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 1,085,640 Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2007, 5.250%, 6/15/23 675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 676,472 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,500 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 Baa1 1,403,085 Hospital Facilities Revenue Bonds, Rockingham Memorial Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured 960 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A- 973,622 Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,155 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A3 1,158,846 Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 N/R 1,201,752 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, 10/10 at 100.00 Aa3 1,004,780 Virginia, Hospital Facility Revenue Refunding Bonds, Potomac Hospital Corporation of Prince William, Series 1998, 5.000%, 10/01/18 - AGM Insured 3,915 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 A+ 4,054,648 Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/20 - NPFG Insured Stafford County Economic Development Authority, Virginia, Hospital Facilities Revenue Bonds, MediCorp Health System, Series 2006: 1,250 5.250%, 6/15/25 6/16 at 100.00 A3 1,288,513 655 5.250%, 6/15/31 6/16 at 100.00 A3 661,059 1,095 5.250%, 6/15/37 6/16 at 100.00 A3 1,098,340 1,250 Virginia Small Business Finance Authority, Healthcare Facilities 5/20 at 100.00 AA 1,277,438 Revenue Bonds, Refunding Sentara Healthcare, Series 2010, 5.000%, 11/01/40
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- HEALTH CARE (continued) $ 1,430 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ $ 1,337,622 System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37 720 Winchester Industrial Development Authority, Virginia, Hospital 1/19 at 100.00 A+ 742,961 Revenue Bonds Valley Health System Obligated Group, Series 2009E, 5.625%, 1/01/44 715 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 A+ 740,218 Revenue Bonds, Winchester Medical Center, Series 2007, 5.125%, 1/01/31 340 Wisconsin Health and Educational Facilities Authority, Revenue 4/20 at 100.00 A3 344,478 Bonds, Aurora Health Care, Inc., Series 2010A, 5.625%, 4/15/39 - ----------------------------------------------------------------------------------------------------------------------------------- 26,880 Total Health Care 27,370,170 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/MULTIFAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS) 200 Virginia Housing Development Authority, Rental Housing Bonds, 10/19 at 100.00 AA+ 201,920 Series 2010F, 5.000%, 4/01/45 - ----------------------------------------------------------------------------------------------------------------------------------- HOUSING/SINGLE FAMILY - 12.3% (8.1% OF TOTAL INVESTMENTS) 6,350 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 6,411,341 Bonds, Series 2001H-1, 5.350%, 7/01/31 - NPFG Insured 500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 488,525 Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative Minimum Tax) 870 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 866,729 Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax) 2,600 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 2,540,746 Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 10,320 Total Housing/Single Family 10,307,341 - ----------------------------------------------------------------------------------------------------------------------------------- LONG-TERM CARE - 10.9% (7.1% OF TOTAL INVESTMENTS) 1,300 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 1,177,319 Residential Care Facilities Mortgage Revenue Bonds, Westminster-Cantebury of the Blue Ridge, Series 2007, 5.000%, 1/01/31 650 Chesterfield County Health Center Commission, Virginia, Mortgage 12/15 at 100.00 N/R 565,091 Revenue Bonds, Lucy Corr Village, Series 2005, 5.625%, 12/01/39 1,815 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,774,398 Residential Care Facilities Mortgage Revenue Bonds, Goodwin House, Inc., Series 2007A, 5.125%, 10/01/37 500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB+ 448,175 Retirement Center Revenue Bonds, Greenspring Village, Series 2006A, 4.750%, 10/01/26 855 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 810,275 Residential Care Facility Revenue Bonds, Westminster Canterbury of Richmond, Series 2006, 5.000%, 10/01/35 1,300 Industrial Development Authority of the County of Prince 1/17 at 100.00 N/R 788,281 William, Virginia, Residential Care Facility Revenue Bonds, Westminster at Lake, First Mortgage, Series 2006, 5.125%, 1/01/26 1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,365,201 Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%, 3/01/23 970 Roanoke Industrial Development Authority, Virginia, Residential 12/16 at 100.00 N/R 687,846 Revenue Bonds, Virginia Lutheran Homes Incorporated, Series 2006, 5.000%, 12/01/39 650 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 567,489 Facilities First Mortgage Revenue Bonds, Lake Prince Center, Series 2006, 5.300%, 9/01/31 650 Virginia Beach Development Authority, Virginia, Residential Care 11/15 at 100.00 N/R 627,231 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 311,392 Residential Care Facility Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27 - ----------------------------------------------------------------------------------------------------------------------------------- 10,365 Total Long-Term Care 9,122,698 - ----------------------------------------------------------------------------------------------------------------------------------- MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS) 165 Bedford County Industrial Development Authority, Virginia, 8/10 at 100.00 Ba3 155,225 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 460 Goochland County Industrial Development Authority, Virginia, 6/10 at 100.50 Ba3 427,791 Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 625 Total Materials 583,016 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/GENERAL - 21.5% (14.1% OF TOTAL INVESTMENTS) $ 1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA+ $ 1,881,233 5.500%, 12/01/16 1,000 Loudoun County, Virginia, General Obligation Bonds, Series 12/16 at 100.00 AAA 1,100,990 2006B, 5.000%, 12/01/25 95 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 99,036 Bonds, Series 2002A, 5.250%, 5/01/22 Powhatan County, Virginia, General Obligation Bonds, Series 2001: 660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 Aa2 686,143 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 Aa2 1,039,610 Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002A: 1,950 5.000%, 10/01/18 10/12 at 101.00 AA 2,161,400 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,698,978 1,280 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,348,314 Series 2002B, 5.000%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 600 Virginia Beach, Virginia, General Obligation Bonds, Series 2005, 1/16 at 100.00 AAA 698,238 5.000%, 1/15/20 2,900 Virginia Beach, Virginia, General Obligation Bonds, Series 2008, 10/17 at 100.00 AAA 3,172,484 5.000%, 10/01/26 (UB) 1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,585,740 Bonds, Series 2001, 5.000%, 6/01/19 1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AAA 1,528,644 Public Improvement Bonds, Series 2002, 5.000%, 3/01/21 - ----------------------------------------------------------------------------------------------------------------------------------- 16,590 Total Tax Obligation/General 18,000,810 - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED - 22.7% (14.9% OF TOTAL INVESTMENTS) 107 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 99,290 Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Broad Street Community Development Authority, Virginia, Revenue 6/13 at 102.00 N/R 889,600 Bonds, Series 2003, 7.500%, 6/01/33 Buena Vista Public Recreational Facilities Authority, Virginia, Lease Revenue Bonds, Golf Course Project, Series 2005A: 210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 195,355 165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 151,787 800 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 894,088 Revenue Bonds, Joint Public Uses Community Project, Series 2006, 5.000%, 5/15/18 1,800 Loudoun County Industrial Development Authority, Virginia, Lease 3/13 at 100.00 AA+ 1,951,038 Revenue Refunding Bonds, Public Facility Project, Series 2003, 5.000%, 3/01/19 285 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 301,342 Public Facility Lease Revenue Bonds, Public Projects Series 2008, 5.000%, 2/01/29 1,300 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A3 1,343,719 Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured 2,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A3 601,200 Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured 400 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 A3 402,892 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 1,625 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue 2/20 at 100.00 A+ 1,700,563 Bonds, First Subordinate Series 2010A, 5.500%, 8/01/42 1,000 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 N/R 1,033,300 Lease Revenue Bonds, School Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 1,000 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 A+ 1,059,120 Virginia, Revenue Bonds, Virginia Municipal League and Virginia Association of Counties Finance Program, Series 2006A, 5.000%, 8/01/23 - NPFG Insured 1,610 Stafford County Economic Development Authority, Virginia, Lease 4/18 at 100.00 AAA 1,680,985 Revenue Bonds, Public Facility Projects, Series 2008, 5.000%, 4/01/33 - AGC Insured (UB) 700 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 764,778 Bonds, Series 2005A, 5.000%, 5/01/22 535 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 695,430 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-3B, 12.968%, 2/01/27 (IF)
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ----------------------------------------------------------------------------------------------------------------------------------- TAX OBLIGATION/LIMITED (continued) $ 535 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ $ 685,437 Revenue Bonds, 21st Century College Program, Series 2009, Trust 09-4B, 12.884%, 2/01/28 (IF) 673 Virginia Gateway Community Development Authority, Prince William 3/13 at 102.00 N/R 651,289 County, Special Assessment Bonds, Series 2003, 6.375%, 3/01/30 2,540 Virginia Public School Authority, School Financing Bonds, 1997 8/11 at 101.00 AA+ 2,702,763 Resolution, Series 2001B, 5.000%, 8/01/19 570 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 651,185 Resolution, Series 2005C, 5.000%, 8/01/17 540 Virginia Resources Authority, Infrastructure Revenue Bonds, No Opt. Call AA 545,983 Prerefunded-Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26 - ----------------------------------------------------------------------------------------------------------------------------------- 19,395 Total Tax Obligation/Limited 19,001,144 - ----------------------------------------------------------------------------------------------------------------------------------- TRANSPORTATION - 6.5% (4.2% OF TOTAL INVESTMENTS) 1,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/12 at 100.00 AA- 1,010,580 Revenue Bonds, Series 2002A, 5.125%, 10/01/26 - FGIC Insured (Alternative Minimum Tax) 2,200 Metropolitan Washington D.C. Airports Authority, Virginia, Dulles 10/28 at 100.00 BBB+ 1,303,170 Toll Road Revenue Bonds, Dulles Metrorail Capital Appreciation, Series 2010B, 0.000%, 10/01/44 1,500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 A 1,507,845 5.000%, 2/01/23 - NPFG Insured 745 Virginia Port Authority, Port Facilities Revenue Refunding Bonds 7/19 at 100.00 Aa3 777,035 Series 2010, 5.000%, 7/01/40 825 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 Aa3 798,113 Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured (Alternative Minimum Tax) - ----------------------------------------------------------------------------------------------------------------------------------- 6,270 Total Transportation 5,396,743 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. GUARANTEED - 15.5% (10.2% OF TOTAL INVESTMENTS) (4) 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (4) 179,131 Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 (Pre-refunded 1/01/12) 1,000 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 1,156,790 Bonds, Series 2002, 5.000%, 11/01/24 - AGM Insured (ETM) 40 Henrico County Economic Development Authority, Virginia, Revenue 11/12 at 100.00 A3 (4) 44,623 Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12) Loudoun County Industrial Development Authority, Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A: 250 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 N/R (4) 277,573 600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 N/R (4) 667,362 1,000 Newport News, Virginia, General Obligation Bonds, Series 2003B, 11/13 at 100.00 Aa1 (4) 1,130,440 5.000%, 11/01/22 (Pre-refunded 11/01/13) 2,750 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,826,203 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (Pre-refunded 10/01/10) 1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 A3 (4) 1,198,076 Facilities Revenue Refunding Bonds, Series 2002D, 5.250%, 7/01/27 (Pre-refunded 7/01/12) 455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 491,227 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 445 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 (4) 472,167 Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%, 7/15/21 (Pre-refunded 7/15/11) 1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 Aa2 (4) 1,192,570 6.250%, 2/01/25 (Pre-refunded 2/01/14) - AMBAC Insured Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset-Backed Bonds, Series 2005: 300 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 309,144 2,700 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 3,021,057 - ----------------------------------------------------------------------------------------------------------------------------------- 11,805 Total U.S. Guaranteed 12,966,363 - -----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 61 NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued) | Portfolio of Investments May 31, 2010
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 2.4% (1.6% OF TOTAL INVESTMENTS) $ 2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 $ 2,024,140 Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 16.8% (11.0% OF TOTAL INVESTMENTS) 805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 838,575 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 - AGM Insured No Opt. Call AAA 1,178,570 3,000 5.500%, 11/15/19 - AGM Insured No Opt. Call AAA 3,540,720 Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001: 1,080 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AA+ 1,131,440 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AA+ 1,246,680 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AA+ 1,597,253 1,000 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AAA 1,068,990 Series 2005, 5.000%, 10/01/30 2,250 Virginia Resources Authority, Water and Sewerage System Revenue 5/11 at 101.00 AA 2,291,533 Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 990 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 1,192,900 Series 2007, Trust 3036, 13.137%, 10/01/29 (IF) - ------------------------------------------------------------------------------------------------------------------------------------ 12,840 Total Water and Sewer 14,086,661 - ------------------------------------------------------------------------------------------------------------------------------------ $ 127,320 Total Investments (cost $125,444,371) - 152.3% 127,535,136 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (3.6)% (2,980,000) --------------------------------------------------------------------------------------------------------------------- MuniFund Term Preferred Shares, at Liquidation Value - (51.6)% (5) (43,200,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.9% 2,409,507 --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 83,764,643 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the highest of Standard & Poor's Group ("Standard & Poor's"), Moody's Investor Service, Inc. ("Moody's") or Fitch, Inc. ("Fitch") rating. Ratings below BBB by Standard & Poor's, Baa by Moody's or BBB by Fitch are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) MuniFund Term Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.9%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction. See Notes to Financial Statements, Footnote 1 - Inverse Floating Rate Securities for more information. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 62 Nuveen Investments | Statement of | Assets & Liabilites May 31, 2010
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $226,022,758, $84,939,848,$88,596,455 and $113,411,699, respectively) $ 234,991,664 $ 85,902,416 $ 89,896,345 $ 116,050,576 Cash 4,331 3,204,136 291,491 262,718 Receivables: Interest 4,183,794 1,566,358 1,616,007 1,901,869 Investments sold 140,000 110,000 105,000 -- Deferred offering costs 794,385 639,819 650,309 497,404 Other assets 32,993 10,476 10,501 17,065 - ------------------------------------------------------------------------------------------------------------------ Total assets 240,147,167 91,433,205 92,569,653 118,729,632 - ------------------------------------------------------------------------------------------------------------------ LIABILITIES Floating rate obligations 9,962,000 3,973,000 3,840,000 4,255,000 Cash overdraft -- -- -- -- Payables: Auction Rate Preferred share dividends 3,524 -- -- 2,549 Common share dividends 611,401 255,633 260,774 318,618 Interest 85,628 91,815 102,527 45,713 Offering costs 254,775 234,400 234,400 199,676 MuniFund Term Preferred shares, at liquidation value 38,775,000 26,485,000 27,300,000 20,700,000 Accrued expenses: Management fees 126,116 44,589 41,278 55,014 Other 111,019 40,367 41,553 61,969 - ------------------------------------------------------------------------------------------------------------------ Total liabilities 49,929,463 31,124,804 31,820,532 25,638,539 - ------------------------------------------------------------------------------------------------------------------ Auction Rate Preferred shares, at liquidation value 32,975,000 -- -- 14,825,000 ================================================================================================================== Net assets applicable to Common shares $ 157,242,704 $ 60,308,401 $ 60,749,121 $ 78,266,093 ================================================================================================================== Common shares outstanding 10,643,624 4,193,517 4,197,272 5,363,909 ================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.77 $ 14.38 $ 14.47 $ 14.59 ================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 106,436 $ 41,935 $ 41,973 $ 53,639 Paid-in surplus 147,789,740 59,490,323 59,538,503 75,694,554 Undistributed (Over-distribution of) net investment income 2,175,745 760,002 759,614 939,416 Accumulated net realized gain (loss) from investments (1,798,123) (946,427) (890,859) (1,060,393) Net unrealized appreciation (depreciation) of investments 8,968,906 962,568 1,299,890 2,638,877 - ------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $ 157,242,704 $ 60,308,401 $ 60,749,121 $ 78,266,093 ================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited MuniFund Term Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 63 | Statement of | Assets & Liabilites (continued) May 31, 2010
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $187,559,056, $67,631,798 and $125,444,371, respectively) $ 191,723,937 $ 67,751,450 $ 127,535,136 Cash -- 270,150 437,936 Receivables: Interest 3,059,583 1,047,487 1,866,043 Investments sold 1,121,000 -- 190,000 Deferred offering costs 691,996 524,791 726,231 Other assets 29,827 7,873 13,871 - -------------------------------------------------------------------------------------------------- Total assets 196,626,343 69,601,751 130,769,217 - -------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations 4,630,000 1,640,000 2,980,000 Cash overdraft 895,110 -- -- Payables: Auction Rate Preferred share dividends 2,067 -- -- Common share dividends 535,309 193,191 363,640 Interest 71,120 53,200 100,800 Offering costs 243,125 235,858 248,791 MuniFund Term Preferred shares, at liquidation value 32,205,000 22,800,000 43,200,000 Accrued expenses: Management fees 105,319 34,618 59,581 Other 86,872 32,576 51,762 - -------------------------------------------------------------------------------------------------- Total liabilities 38,773,922 24,989,443 47,004,574 - -------------------------------------------------------------------------------------------------- Auction Rate Preferred shares, at liquidation value 25,550,000 -- -- ================================================================================================== Net assets applicable to Common shares $ 132,302,421 $ 44,612,308 $ 83,764,643 ================================================================================================== Common shares outstanding 8,982,270 3,139,973 5,751,134 ================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.73 $ 14.21 $ 14.56 ================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - -------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 89,823 $ 31,400 $ 57,511 Paid-in surplus 126,425,231 44,472,299 81,540,239 Undistributed (Over-distribution of) net investment income 1,637,438 516,157 735,883 Accumulated net realized gain (loss) from investments (14,952) (527,200) (659,755) Net unrealized appreciation (depreciation) of investments 4,164,881 119,652 2,090,765 - -------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 132,302,421 $ 44,612,308 $ 83,764,643 ================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Auction Rate Preferred Unlimited Unlimited Unlimited MuniFund Term Preferred Unlimited Unlimited Unlimited ==================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 64 Nuveen Investments | Statement of | Operations Year Ended May 31, 2010
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 11,197,103 $ 4,495,325 $ 4,518,214 $ 5,503,635 - ------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,466,683 558,911 566,542 736,693 Auction fees 91,206 26,998 28,348 46,691 Dividend disbursing agent fees 20,000 7,479 14,192 10,000 Shareholders' servicing agent fees and expenses 16,417 1,422 986 1,158 Interest expense and amortization of offering costs 491,329 144,219 155,414 211,790 Custodian's fees and expenses 47,449 24,030 24,150 28,622 Trustees' fees and expenses 6,327 2,339 2,376 3,290 Professional fees 24,394 13,105 13,213 15,759 Shareholders' reports - printing and mailing expenses 46,630 24,839 26,332 31,298 Stock exchange listing fees 9,168 591 592 757 Investor relations expense 19,549 7,519 7,793 9,738 Other expenses 22,089 23,879 24,030 17,086 - ------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 2,261,241 835,331 863,968 1,112,882 Custodian fee credit (2,302) (1,246) (390) (489) Expense reimbursement -- (72,667) (102,857) (121,745) - ------------------------------------------------------------------------------------------------------------------ Net expenses 2,258,939 761,418 760,721 990,648 - ------------------------------------------------------------------------------------------------------------------ Net investment income 8,938,164 3,733,907 3,757,493 4,512,987 - ------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 81,032 26,955 17,339 (9,894) Change in net unrealized appreciation (depreciation) of investments 11,721,055 5,284,917 5,066,240 6,524,642 - ------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 11,802,087 5,311,872 5,083,579 6,514,748 - ------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income (263,268) (103,621) (105,170) (135,013) - ------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders (263,268) (103,621) (105,170) (135,013) - ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 20,476,983 $ 8,942,158 $ 8,735,902 $ 10,892,722 ==================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 65 | Statement of | Operations (continued) Year Ended May 31, 2010
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 9,765,166 $ 3,517,795 $ 6,429,432 - -------------------------------------------------------------------------------------------------- EXPENSES Management fees 1,224,208 430,492 804,132 Auction fees 73,008 14,169 24,062 Dividend disbursing agent fees 20,000 7,479 5,863 Shareholders' servicing agent fees and expenses 13,867 940 1,199 Interest expense and amortization of offering costs 372,770 412,213 797,818 Custodian's fees and expenses 42,269 19,905 28,876 Trustees' fees and expenses 5,450 1,845 3,512 Professional fees 21,401 11,716 15,910 Shareholders' reports - printing and mailing expenses 48,899 18,549 29,208 Stock exchange listing fees 9,215 442 810 Investor relations expense 16,772 5,537 9,837 Other expenses 19,507 23,677 25,479 - -------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 1,867,366 946,964 1,746,706 Custodian fee credit (462) (1,229) (1,932) Expense reimbursement -- (56,080) (155,961) - -------------------------------------------------------------------------------------------------- Net expenses 1,866,904 889,655 1,588,813 - -------------------------------------------------------------------------------------------------- Net investment income 7,898,262 2,628,140 4,840,619 - -------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 71,327 146 14,297 Change in net unrealized appreciation (depreciation) of investments 8,157,368 3,488,158 6,627,764 - -------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) 8,228,695 3,488,304 6,642,061 - -------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS From net investment income (233,784) (49,195) (85,539) - -------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Auction Rate Preferred shareholders (233,784) (49,195) (85,539) - -------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ 15,893,173 $ 6,067,249 $ 11,397,141 ==================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 66 Nuveen Investments | Statement of | Changes in Net Assets
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) --------------------------- --------------------------- ---------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 8,938,164 $ 9,449,559 $ 3,733,907 $ 3,990,112 $ 3,757,493 $ 3,972,583 Net realized gain (loss) from investments 81,032 (1,683,796) 26,955 (792,574) 17,339 (904,510) Change in net unrealized appreciation (depreciation) of investments 11,721,055 (5,452,149) 5,284,917 (4,198,728) 5,066,240 (4,008,113) Distributions to Auction Rate Preferred Shareholders: From net investment income (263,268) (1,728,826) (103,621) (710,514) (105,170) (687,710) From accumulated net realized gains -- (112,500) -- -- -- (49,933) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 20,476,983 472,288 8,942,158 (1,711,704) 8,735,902 (1,677,683) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (7,789,618) (6,676,649) (3,182,569) (2,946,556) (3,197,580) (2,950,782) From accumulated net realized gains -- (285,154) -- -- -- (145,966) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (7,789,618) (6,961,803) (3,182,569) (2,946,556) (3,197,580) (3,096,748) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 50,895 -- 41,978 65,451 25,385 39,025 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions 50,895 -- 41,978 65,451 25,385 39,025 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 12,738,260 (6,489,515) 5,801,567 (4,592,809) 5,563,707 (4,735,406) Net assets applicable to Common shares at the beginning of year 144,504,444 150,993,959 54,506,834 59,099,643 55,185,414 59,920,820 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $157,242,704 $144,504,444 $ 60,308,401 $ 54,506,834 $ 60,749,121 $ 55,185,414 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 2,175,745 $ 1,235,082 $ 760,002 $ 295,908 $ 759,614 $ 287,921 ====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 67 | Statement of | Changes in Net Assets (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) --------------------------- --------------------------- ---------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 4,512,987 $ 4,774,513 $ 7,898,262 $ 8,077,037 $ 2,628,140 $ 2,929,798 Net realized gain (loss) from investments (9,894) (1,006,050) 71,327 (88,740) 146 (527,444) Change in net unrealized appreciation (depreciation) of investments 6,524,642 (3,207,766) 8,157,368 (5,786,157) 3,488,158 (3,315,707) Distributions to Auction Rate Preferred Shareholders: From net investment income (135,013) (858,983) (233,784) (1,346,825) (49,195) (533,312) From accumulated net realized gains -- (32,339) -- (146,513) -- (12,768) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 10,892,722 (330,625) 15,893,173 708,802 6,067,249 (1,459,433) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (3,958,565) (3,451,676) (7,219,765) (5,849,607) (2,391,296) (2,167,450) From accumulated net realized gains -- (90,650) -- (428,050) -- (41,689) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (3,958,565) (3,542,326) (7,219,765) (6,277,657) (2,391,296) (2,209,139) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- -- 509,839 175,724 55,701 37,122 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 509,839 175,724 55,701 37,122 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 6,934,157 (3,872,951) 9,183,247 (5,393,131) 3,731,654 (3,631,450) Net assets applicable to Common shares at the beginning of year 71,331,936 75,204,887 123,119,174 128,512,305 40,880,654 44,512,104 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $ 78,266,093 $ 71,331,936 $132,302,421 $123,119,174 $ 44,612,308 $ 40,880,654 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 939,416 $ 492,853 $ 1,637,438 $ 1,141,646 $ 516,157 $ 266,298 ====================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 68 Nuveen Investments
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ---------------------------- YEAR YEAR ENDED ENDED 5/31/10 5/31/09 - -------------------------------------------------------------------------------- OPERATIONS Net investment income $ 4,840,619 $ 5,570,292 Net realized gain (loss) from investments 14,297 (661,202) Change in net unrealized appreciation (depreciation) of investments 6,627,764 (5,657,242) Distributions to Auction Rate Preferred Shareholders: From net investment income (85,539) (940,842) From accumulated net realized gains -- (13,944) - -------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations 11,397,141 (1,702,938) - -------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,503,540) (4,123,820) From accumulated net realized gains -- (41,880) - -------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,503,540) (4,165,700) - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 144,710 123,400 - -------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions 144,710 123,400 - -------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares 7,038,311 (5,745,238) Net assets applicable to Common shares at the beginning of year 76,726,332 82,471,570 - -------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of year $ 83,764,643 $ 76,726,332 ================================================================================ Undistributed (Over-distribution of) net investment income at the end of year $ 735,883 $ 396,944 ================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 69 | Statement of | Cash Flows Year Ended May 31, 2010
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ---------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 20,476,983 $ 8,942,158 $ 8,735,902 $ 10,892,722 Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: Purchases of investments (15,391,910) (3,446,319) (2,083,423) (2,515,457) Proceeds from sales and maturities of investments 4,364,000 4,889,650 1,329,500 468,000 Amortization (Accretion) of premiums and discounts, net 490,799 155,612 145,850 351,044 (Increase) Decrease in receivable for interest (141,129) 39,523 (26,278) (48,539) (Increase) Decrease in receivable for investments sold 2,420,000 260,000 (105,000) -- (Increase) Decrease in other assets (5,036) 5,849 2,537 (2,075) Increase (Decrease) in payable for Auction Rate Preferred share dividends (13) (2,463) (2,535) (231) Increase (Decrease) in payable for interest 85,628 91,815 102,527 45,713 Increase (Decrease) in accrued management fees 8,806 7,364 6,809 11,046 Increase (Decrease) in accrued other liabilities 27,998 1,271 3,604 16,314 Net realized (gain) loss from investments (81,032) (26,955) (17,339) 9,894 Change in net unrealized (appreciation) depreciation of investments (11,721,055) (5,284,917) (5,066,240) (6,524,642) Taxes paid on undistributed capital gains (278) (162) (331) (141) - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 533,761 5,632,426 3,025,583 2,703,648 - ---------------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in cash overdraft balance -- -- -- -- Cash distributions paid to Common shareholders (7,695,919) (3,119,123) (3,147,873) (3,932,265) Increase (Decrease) in Auction Rate Preferred shares noticed for redemption, at liquidation value -- -- -- -- (Increase) Decrease in deferred offering costs (794,385) (639,819) (650,309) (497,404) Increase (Decrease) in payable for offering costs 254,775 234,400 234,400 199,676 Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value 38,775,000 26,485,000 27,300,000 20,700,000 Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (37,900,000) (25,825,000) (26,625,000) (20,175,000) - ---------------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (7,360,529) (2,864,542) (2,888,782) (3,704,993) - ---------------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH (6,826,768) 2,767,884 136,801 (1,001,345) Cash at the beginning of year 6,831,099 436,252 154,690 1,264,063 - ---------------------------------------------------------------------------------------------------------------------------------- CASH AT THE END OF YEAR $ 4,331 $ 3,204,136 $ 291,491 $ 262,718 ==================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ---------------------------------------------------------------------------------------------------------------------------------- $ 50,895 $ 41,978 $ 25,385 $ -- ==================================================================================================================================
Cash paid for interest (excluding amortization of offering costs) was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ---------------------------------------------------------------------------------------------------------------------------------- $ 348,461 $ 34,948 $ 33,696 $ 137,982 ==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 70 Nuveen Investments
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 15,893,173 $ 6,067,249 $ 11,397,141 Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: Purchases of investments (6,822,978) (4,510,055) (8,149,684) Proceeds from sales and maturities of investments 5,132,130 1,098,500 2,089,250 Amortization (Accretion) of premiums and discounts, net 189,631 (49,193) 57,371 (Increase) Decrease in receivable for interest (29,406) (40,205) (67,233) (Increase) Decrease in receivable for investments sold (586,000) 95,000 (39,950) (Increase) Decrease in other assets (4,184) 6,252 3,610 Increase (Decrease) in payable for Auction Rate Preferred share dividends (1,335) (1,342) (3,925) Increase (Decrease) in payable for interest 71,120 53,200 100,800 Increase (Decrease) in accrued management fees 3,096 5,513 9,800 Increase (Decrease) in accrued other liabilities 22,902 7,309 11,182 Net realized (gain) loss from investments (71,327) (146) (14,297) Change in net unrealized (appreciation) depreciation of investments (8,157,368) (3,488,158) (6,627,764) Taxes paid on undistributed capital gains -- -- (767) - -------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 5,639,454 (756,076) (1,234,466) - -------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in cash overdraft balance 895,110 -- -- Cash distributions paid to Common shareholders (6,650,812) (2,328,339) (4,336,070) Increase (Decrease) in Auction Rate Preferred shares noticed for redemption, at liquidation value -- (2,250,000) -- (Increase) Decrease in deferred offering costs (691,996) (524,791) (726,231) Increase (Decrease) in payable for offering costs 243,125 235,858 248,791 Increase (Decrease) in MuniFund Term Preferred shares, at liquidation value 32,205,000 22,800,000 43,200,000 Increase (Decrease) in Auction Rate Preferred shares, at liquidation value (38,250,000) (19,500,000) (41,175,000) - -------------------------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (12,249,573) (1,567,272) (2,788,510) - -------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH (6,610,119) (2,323,348) (4,022,976) Cash at the beginning of year 6,610,119 2,593,498 4,460,912 - -------------------------------------------------------------------------------------------------------------------------- CASH AT THE END OF YEAR $ -- $ 270,150 $ 437,936 ==========================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Non-cash financing activities not included herein consist of reinvestments of Common share distributions as follows:
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------------------- $ 509,839 $ 55,701 $ 144,710 ==========================================================================================================================
Cash paid for interest (excluding amortization of offering costs) was as follows:
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------------------------------- $ 250,571 $ 296,803 $ 604,749 ==========================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 71 | Notes to | Financial Statements 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen Maryland Premium Income Municipal Fund (NMY), Nuveen Maryland Dividend Advantage Municipal Fund (NFM), Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR), Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI), Nuveen Virginia Premium Income Municipal Fund (NPV), Nuveen Virginia Dividend Advantage Municipal Fund (NGB) and Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (collectively, the "Funds"). Common shares of Maryland Premium Income (NMY) and Virginia Premium Income (NPV) are traded on the New York Stock Exchange ("NYSE") while Common shares of Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI), Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) are traded on the NYSE Amex. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. In June 2009, the Financial Accounting Standards Board ("FASB") established the FASB Accounting Standards Codification(TM) (the "Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"). The Codification supersedes existing non-grandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The Codification did not have a material effect on the Funds' financial statements. 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 ("U.S. GAAP"). 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 or, in the absence of a pricing service for a particular investment, the Board of Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates value. INVESTMENT TRANSACTIONS Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At May 31, 2010, there were no such outstanding purchase commitments in any of the Funds. INVESTMENT INCOME Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also includes paydown gains and losses, if any. INCOME TAXES Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions that 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. 72 Nuveen Investments For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. AUCTION RATE PREFERRED SHARES The following Funds have issued and outstanding Auction Rate Preferred Shares ("ARPS"), $25,000 stated value per share, which approximates market value, as a means of effecting financial leverage. Each Fund's ARPS are issued in one or more Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of May 31, 2010, the number of ARPS outstanding, by Series and in total, for each Fund is as follows:
MARYLAND MARYLAND VIRGINIA PREMIUM DIVIDEND PREMIUM INCOME ADVANTAGE 3 INCOME (NMY) (NWI) (NPV) - -------------------------------------------------------------------------------------------------- Number of shares: Series T -- 593 333 Series W 585 -- -- Series TH 734 -- 689 - -------------------------------------------------------------------------------------------------- Total 1,319 593 1,022 ==================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the ARPS issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many ARPS shareholders who wanted to sell their shares in these auctions were unable to do so. ARPS shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the ARPS. As of May 31, 2010, the aggregate amount of outstanding ARPS redeemed by each Fund is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------------------------- ARPS redeemed, at liquidation value $46,125,000 $32,000,000 $32,000,000 $24,175,000 ==================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------------------------- ARPS redeemed, at liquidation value $38,250,000 $24,000,000 $42,000,000 ==================================================================================================
MUNIFUND TERM PREFERRED SHARES The Funds have issued and outstanding MuniFund Term Preferred ("MTP") Shares, with a $10 stated value per share. Proceeds from the issuance of MTP Shares, net of offering expenses, were used to redeem all, or a portion of, each Fund's outstanding ARPS. Each Fund's MTP Shares are issued in one Series. Dividends, which are recognized as interest expense for financial reporting purposes, are paid monthly at a fixed annual rate, subject to adjustments in certain circumstances. The MTP Shares trade on the NYSE. As of May 31, 2010, the number of MTP Shares outstanding, annual interest rate and the NYSE "ticker" symbol for each Fund are as follows:
MARYLAND PREMIUM INCOME (NMY) MARYLAND DIVIDEND ADVANTAGE (NFM) --------------------------------- ---------------------------------- ANNUAL ANNUAL SHARES INTEREST NYSE SHARES INTEREST NYSE OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER - -------------------------------------------------------------------------------------------------- Series 2015 3,877,500 2.65% NMY Pr C 2,648,500 2.60% NFM Pr C ==================================================================================================
Nuveen Investments 73 | Notes to | Financial Statements (continued)
MARYLAND DIVIDEND ADVANTAGE 2 (NZR) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) ----------------------------------- ------------------------------------ ANNUAL ANNUAL SHARES INTEREST NYSE SHARES INTEREST NYSE OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------ Series 2015 2,730,000 2.60% NZR Pr C 2,070,000 2.65% NWI Pr C ======================================================================================================
VIRGINIA PREMIUM INCOME (NPV) VIRGINIA DIVIDEND ADVANTAGE (NGB) ----------------------------------- ------------------------------------ ANNUAL ANNUAL SHARES INTEREST NYSE SHARES INTEREST NYSE OUTSTANDING RATE TICKER OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------ Series: 2014 -- --% -- 2,280,000 2.80% NGB Pr C 2015 3,220,500 2.65 NPV Pr C -- -- -- ======================================================================================================
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ------------------------------------ ANNUAL SHARES INTEREST NYSE OUTSTANDING RATE TICKER - ------------------------------------------------------------------------------------------------------ Series 2014 4,320,000 2.80% NNB Pr C ======================================================================================================
Each Fund is obligated to redeem its MTP Shares by the date as specified in its offering document ("Term Redemption Date"), unless earlier redeemed or repurchased by the Fund. MTP Shares are subject to optional and mandatory redemption in certain circumstances. MTP Shares will be subject to redemption at the option of each Fund ("Optional Redemption Date"), subject to a payment of premium for one year following the Optional Redemption Date ("Premium Expiration Date"), and at par thereafter. MTP Shares also will be subject to redemption, at the option of each Fund, at par in the event of certain changes in the credit rating of the MTP Shares. Each Fund may be obligated to redeem certain of the MTP Shares if the Fund fails to maintain certain asset coverage and leverage ratio requirements and such failures are not cured by the applicable cure date. The redemption price per share is equal to the sum of the liquidation value per share plus any accumulated but unpaid dividends. The Term Redemption Date, Optional Redemption Date and Premium Expiration Date for each Fund's MTP Shares are as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) SERIES 2015 SERIES 2015 SERIES 2015 SERIES 2015 - ------------------------------------------------------------------------------------------------------ Term Redemption Date February 1, 2015 May 1, 2015 May 1, 2015 March 1, 2015 Optional Redemption Date February 1, 2011 May 1, 2011 May 1, 2011 March 1, 2011 Premium Expiration Date January 31, 2012 April 30, 2012 April 30, 2012 February 29, 2012 ======================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) SERIES 2015 SERIES 2014 SERIES 2014 - ------------------------------------------------------------------------------------------------------ Term Redemption Date February 1, 2015 December 1, 2014 December 1, 2014 Optional Redemption Date February 1, 2011 December 1, 2010 December 1, 2010 Premium Expiration Date January 31, 2012 November 30, 2011 November 30, 2011 ======================================================================================================
The average liquidation value of MTP Shares outstanding for each Fund during the fiscal year ended May 31, 2010, was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY)* (NFM)** (NZR)*** (NWI)**** - ------------------------------------------------------------------------------------------------------------------------ Average liquidation value of MTP Shares outstanding $38,551,423 $26,485,000 $27,300,000 $20,341,837 ========================================================================================================================
* For the period January 29, 2010 (first issuance date of shares) through May 31, 2010. ** For the period April 13, 2010 (first issuance date of shares) through May 31, 2010. *** For the period April 9, 2010 (first issuance date of shares) through May 31, 2010. **** For the period February 23, 2010 (first issuance date of shares) through May 31, 2010. 74 Nuveen Investments
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV)***** (NGB)****** (NNB)******* - ----------------------------------------------------------------------------------------------------------------- Average liquidation value of MTP Shares outstanding $32,133,571 $22,703,077 $42,786,603 =================================================================================================================
***** For the period January 26, 2010 (first issuance date of shares) through May 31, 2010. ****** For the period November 18, 2009 (first issuance date of shares) through May 31, 2010. ******* For the period November 4, 2009 (first issuance date of shares) through May 31, 2010. For financial reporting purposes only, the liquidation value of MTP Shares is recorded as a liability on the Statement of Assets and Liabilities. Unpaid dividends on MTP Shares are recognized as "Interest payable" on the Statement of Assets and Liabilities. Dividends paid on MTP Shares are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Net amounts earned by Nuveen Investments, Inc. ("Nuveen") as underwriter of each Fund's MTP Share offering were recorded as reductions of offering costs recognized by the Funds. For the fiscal year ended May 31, 2010, the net amounts earned by Nuveen for each Fund were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------ Net amounts earned by Nuveen $2,336 $ -- $ -- $1,069 ==================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------ Net amounts earned by Nuveen $1,707 $109 $1,166 ==================================================================================================================
INVERSE FLOATING RATE SECURITIES Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction. In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust reflected as a financing transaction," with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and recognizes the related interest paid to the holders of the short-term floating rate certificates as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Nuveen Investments 75 | Notes to | Financial Statements (continued) During the fiscal year ended May 31, 2010, each Fund invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is included as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At May 31, 2010, each Fund's maximum exposure to externally-deposited Recourse Trusts is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- ====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Maximum exposure to Recourse Trusts $6,810,000 $2,255,000 $4,265,000 ====================================================================================================================================
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended May 31, 2010, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Average floating rate obligations outstanding $9,962,000 $3,973,000 $3,840,000 $4,255,000 Average annual interest rate and fees 0.88% 0.88% 0.88% 0.87% ====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Average floating rate obligations outstanding $4,630,000 $1,640,000 $2,980,000 Average annual interest rate and fees 0.56% 0.56% 0.56% ====================================================================================================================================
DERIVATIVE FINANCIAL INSTRUMENTS Each Fund is authorized to invest in certain derivative instruments, including foreign currency forwards, futures, options and swap contracts. Although each Fund is authorized to invest in such derivative instruments, and may do so in the future, they did make any such investments during the fiscal year ended May 31, 2010. MARKET AND COUNTERPARTY CREDIT RISK In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund's exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange's clearinghouse, which is counterparty to all exchange traded futures, guarantees the futures contracts against default. Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned subsidiary of Nuveen, believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount. 76 Nuveen Investments ZERO COUPON SECURITIES Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. OFFERING COSTS Costs incurred by the Funds in connection with their offerings of MTP Shares were recorded as a deferred charge which will be amortized over the 5-year life of the shares. Each Fund's amortized deferred charges are recognized as a component of "Interest expense and amortization of offering costs" on the Statement of Operations. Each Fund's offering costs incurred were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ MTP Shares offering costs $849,289 $657,275 $669,500 $524,431 ====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ MTP Shares offering costs $741,368 $586,891 $736,334 ====================================================================================================================================
CUSTODIAN FEE CREDIT Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. INDEMNIFICATIONS Under the Funds' organizational documents, their officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FAIR VALUE MEASUREMENTS In determining the value of each Fund's investments, various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of May 31, 2010:
MARYLAND PREMIUM INCOME (NMY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $234,458,701 $532,963 $234,991,664 ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE (NFM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $85,417,806 $484,610 $85,902,416 ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $89,411,735 $484,610 $89,896,345 ====================================================================================================================================
Nuveen Investments 77 | Notes to | Financial Statements (continued)
MARYLAND DIVIDEND ADVANTAGE 3 (NWI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $115,427,506 $623,070 $116,050,576 ==================================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $191,723,937 $-- $191,723,937 ==================================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE (NGB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $67,751,450 $-- $67,751,450 ==================================================================================================================================== VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ Investments: Municipal Bonds $-- $127,535,136 $-- $127,535,136 ====================================================================================================================================
The following is a reconciliation of each Fund's Level 3 investments held at the beginning and end of the measurement period:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) LEVEL 3 LEVEL 3 LEVEL 3 LEVEL 3 INVESTMENTS INVESTMENTS INVESTMENTS INVESTMENTS - ------------------------------------------------------------------------------------------------------------------------------------ Balance at the beginning of year $ -- $ -- $ -- $ -- Gains (losses): Net realized gains (losses) -- -- -- -- Net change in unrealized appreciation (depreciation) -- -- -- -- Net purchases at cost (sales at proceeds) -- -- -- -- Net discounts (premiums) -- -- -- -- Net transfers in to (out of) at end of period fair value 532,963 484,610 484,610 623,070 - ------------------------------------------------------------------------------------------------------------------------------------ Balance at the end of year $532,963 $484,610 $484,610 $623,070 ====================================================================================================================================
"Change in net unrealized appreciation (depreciation) of investments" presented on the Statement of Operations includes net unrealized appreciation (depreciation) related to securities classified as Level 3 at year end as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Level 3 net appreciation (depreciation) $33,626 $42,179 $42,179 $54,230 ====================================================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Funds record derivative instruments at fair value with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds' investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. The Funds did not invest in derivative instruments during the fiscal year ended May 31, 2010. 4. FUND SHARES COMMON SHARES Since the inception of the Funds' repurchase program, the Funds have not repurchased any of their outstanding Common Shares. Transactions in Common shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) ----------------------- -------------------------- --------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 3,548 -- 3,167 5,006 1,829 2,892 ====================================================================================================================================
78 Nuveen Investments
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) ----------------------- -------------------------- --------------------------- YEAR YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- -- 35,258 13,477 3,987 2,924 ====================================================================================================================================
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) --------------------------- YEAR YEAR ENDED ENDED 5/31/10 5/31/09 - ------------------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 10,255 9,369 ====================================================================================================================================
PREFERRED SHARES Transactions in ARPS were as follows:
MARYLAND MARYLAND PREMIUM INCOME (NMY) DIVIDEND ADVANTAGE (NFM) ----------------------------------------------- ----------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series M -- $ -- -- $ -- 1,033 $ 25,825,000 247 $ 6,175,000 Series W 673 16,825,000 146 3,650,000 -- -- -- -- Series TH 843 21,075,000 183 4,575,000 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,516 $37,900,000 329 $ 8,225,000 1,033 $ 25,825,000 247 $ 6,175,000 ====================================================================================================================================
MARYLAND MARYLAND DIVIDEND ADVANTAGE 2 (NZR) DIVIDEND ADVANTAGE 3 (NWI) ----------------------------------------------- ----------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series T -- $ -- -- $ -- 807 $ 20,175,000 160 $ 4,000,000 Series F 1,065 26,625,000 215 5,375,000 -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,065 $26,625,000 215 $ 5,375,000 807 $ 20,175,000 160 $ 4,000,000 ====================================================================================================================================
VIRGINIA VIRGINIA PREMIUM INCOME (NPV) DIVIDEND ADVANTAGE (NGB) ----------------------------------------------- ----------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ------------------------------------------------------------------------------------------------------------------------------------ ARPS redeemed and/or noticed for redemption: Series T 499 $12,475,000 -- $ -- -- $ -- -- $ -- Series W -- -- -- -- 780 19,500,000 180 4,500,000 Series TH 1,031 25,775,000 -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 1,530 $38,250,000 -- $ -- 780 $ 19,500,000 180 $ 4,500,000 ====================================================================================================================================
Nuveen Investments 79 | Notes to | Financial Statements (continued)
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) -------------------------------------------- YEAR YEAR ENDED ENDED 5/31/10 5/31/09 -------------------------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------------- ARPS redeemed and/or noticed for redemption: Series M 1,647 $41,175,000 33 $825,000 ================================================================================================================================
Transactions in MTP shares were as follows:
MARYLAND MARYLAND PREMIUM INCOME (NMY) DIVIDEND ADVANTAGE (NFM) ------------------------------------------ -------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ----------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2015 3,877,500 $38,775,000 -- -- 2,648,500 $26,485,000 -- -- ================================================================================================================================
MARYLAND MARYLAND DIVIDEND ADVANTAGE 2 (NZR) DIVIDEND ADVANTAGE 3 (NWI) ------------------------------------------ -------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ----------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2015 2,730,000 $27,300,000 -- -- 2,070,000 $20,700,000 -- -- ================================================================================================================================
VIRGINIA PREMIUM INCOME (NPV) -------------------------------------------- YEAR YEAR ENDED ENDED 5/31/10 5/31/09 -------------------------------------------- SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2015 3,220,500 $32,205,000 -- -- ================================================================================================================================
VIRGINIA VIRGINIA DIVIDEND ADVANTAGE (NGB) DIVIDEND ADVANTAGE 2 (NNB) ------------------------------------------ -------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 5/31/10 5/31/09 5/31/10 5/31/09 ----------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - -------------------------------------------------------------------------------------------------------------------------------- MTP Shares issued: Series 2014 2,280,000 $22,800,000 -- -- 4,320,000 $43,200,000 -- -- ================================================================================================================================
5. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments) during the fiscal year ended May 31, 2010, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Purchases $15,391,910 $3,446,319 $ 2,083,423 $ 2,515,457 Sales and maturities 4,364,000 4,889,650 1,329,500 468,000 =================================================================================================================================
80 Nuveen Investments
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Purchases $6,822,978 $4,510,055 $8,149,684 Sales and maturities 5,132,130 1,098,500 2,089,250 =================================================================================================================================
6. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At May 31, 2010, the cost and unrealized appreciation (depreciation) of investments as determined on a federal income tax basis, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Cost of investments $217,023,979 $ 81,247,992 $85,010,967 $109,482,828 - --------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 12,851,251 $ 3,015,747 $ 3,503,967 $ 4,888,916 Depreciation (4,845,863) (2,334,609) (2,458,590) (2,576,425) - --------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 8,005,388 $ 681,138 $ 1,045,377 $ 2,312,491 =================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Cost of investments $182,844,400 $65,968,138 $122,424,107 - --------------------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 8,416,211 $ 2,302,591 $ 5,611,350 Depreciation (4,167,115) (2,158,838) (3,480,321) - --------------------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ 4,249,096 $ 143,753 $ 2,131,029 =================================================================================================================================
Permanent differences, primarily due to federal taxes paid, taxable market discount and distribution character reclassifications, resulted in reclassifications among the Funds' components of Common share net assets at May 31, 2010, the Funds' tax year end, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Paid-in-surplus $(55,663) $(16,539) $(17,318) $(27,295) Undistributed (Over-distribution of) net investment income 55,385 16,377 16,950 27,154 Accumulated net realized gain (loss) 278 162 368 141 =================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Paid-in-surplus $(51,079) $(62,210) $ (88,172) Undistributed (Over-distribution of) net investment income 51,079 62,210 87,399 Accumulated net realized gain (loss) -- -- 773 =================================================================================================================================
Nuveen Investments 81 | Notes to | Financial Statements (continued) The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at May 31, 2010, the Funds' tax year end, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $2,722,629 $1,035,434 $1,044,375 $1,242,347 Undistributed net ordinary income ** 4,946 -- -- 931 Undistributed net long-term capital gains -- -- -- -- =================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $2,226,953 $ 746,121 $1,165,996 Undistributed net ordinary income ** 1,269 94 1,025 Undistributed net long-term capital gains -- -- -- =================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on May 3, 2010, paid on June 1, 2010. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the Funds' tax years ended May 31, 2010 and May 31, 2009, 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 2010 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income *** $8,270,687 $3,267,495 $3,279,991 $4,168,021 Distributions from net ordinary income ** -- -- -- -- Distributions from net long-term capital gains **** -- -- -- -- =================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 2010 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income *** $7,324,752 $2,722,885 $5,136,012 Distributions from net ordinary income ** 294,161 -- 21,344 Distributions from net long-term capital gains **** -- -- -- =================================================================================================================================
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2009 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $8,324,864 $3,659,376 $3,640,847 $4,289,441 Distributions from net ordinary income ** 77,563 -- 70,350 237 Distributions from net long-term capital gains 320,091 -- 125,548 122,752 =================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 2009 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $7,136,962 $2,687,055 $5,042,415 Distributions from net ordinary income ** 109,247 -- 18,305 Distributions from net long-term capital gains 465,316 54,457 55,824 =================================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended May 31, 2010, as Exempt Interest Dividends. **** The Funds designate as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended May 31, 2010. 82 Nuveen Investments At May 31, 2010, the Funds' tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------------------------------- Expiration: May 31, 2012 $ -- $ 78,935 $ -- $ -- May 31, 2013 -- 15,613 -- -- May 31, 2014 -- 62,054 -- -- May 31, 2017 637,381 419,436 541,561 641,931 May 31, 2018 -- -- -- 9,753 - --------------------------------------------------------------------------------------------------------------------------------- Total $637,381 $576,038 $541,561 $651,684 =================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------------------------------- Expiration: May 31, 2012 $ -- $ -- $ -- May 31, 2013 -- -- -- May 31, 2014 -- -- -- May 31, 2017 14,953 167,151 118,100 May 31, 2018 -- 360,046 532,686 - --------------------------------------------------------------------------------------------------------------------------------- Total $ 14,953 $527,197 $650,786 =================================================================================================================================
During the tax year ended May 31, 2010, the following Funds utilized capital loss carryforwards as follows:
MARYLAND MARYLAND MARYLAND VIRGINIA PREMIUM DIVIDEND DIVIDEND PREMIUM INCOME ADVANTAGE ADVANTAGE 2 INCOME (NMY) (NFM) (NZR) (NPV) - --------------------------------------------------------------------------------------------------------------------------------- $81,310 $27,117 $17,707 $71,326 =================================================================================================================================
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a fund-level fee, based only on the amount of assets within each individual Fund, and a complex-level fee, based on the aggregate amount of all fund assets managed by the Adviser. This pricing structure enables each Fund's shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule: MARYLAND PREMIUM INCOME (NMY) VIRGINIA PREMIUM INCOME (NPV) AVERAGE DAILY NET ASSETS* 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 ================================================================================ Nuveen Investments 83 | Notes to | Financial Statements (continued) MARYLAND DIVIDEND ADVANTAGE (NFM) MARYLAND DIVIDEND ADVANTAGE 2 (NZR) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) VIRGINIA DIVIDEND ADVANTAGE (NGB) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) AVERAGE DAILY NET ASSETS* FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ The annual complex-level for each Fund, payable monthly, is calculated according to the following schedule:
EFFECTIVE RATE AT COMPLEX-LEVEL MANAGED NET ASSET BREAKPOINT LEVEL* BREAKPOINT LEVEL - -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================
* The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds, with such daily managed assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fees, daily net assets and managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed assets in certain circumstances. As of May 31, 2010, the complex-level fee rate was .1855%. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its trustees who are affiliated with the Adviser or to its officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and Virginia Dividend Advantage (NGB) for any portion of their fees and expenses beyond January 31, 2011. 84 Nuveen Investments For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for any portion of its fees and expenses beyond September 30, 2010. For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets, for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for any portion of its fees and expenses beyond November 30, 2011. 8. NEW ACCOUNTING STANDARDS FAIR VALUE MEASUREMENTS On January 21, 2010, FASB issued changes to the authoritative guidance under U.S. GAAP for fair value measurements. The objective of this guidance is to provide guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements, for both Level 2 and Level 3 positions, ii) transfers between all levels (including Level 1 and Level 2) on a gross basis (i.e., transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer and iii) purchases, sales, issuances and settlements in the Level 3 rollforward must be shown on a gross basis rather than as one net number. The effective date of the amendment is for interim and annual periods beginning after December 15, 2009, however, the requirement to provide the Level 3 activity for purchases, sales, issuances and settlements on a gross basis will be effective for interim and annual periods beginning after December 15, 2010. At this time, management is evaluating the implications of this guidance and the impact it will have to the financial statement amounts and footnote disclosures, if any. Nuveen Investments 85 | Financial | Highlights Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ---------------------------------------------------------------- --------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $13.58 $.84 $1.10 $(.02) $ -- $1.92 $(.73) $ -- $(.73) $14.77 $14.43 2009 14.19 .89 (.67) (.16) (.01) .05 (.63) (.03) (.66) 13.58 12.68 2008 14.57 .88 (.41) (.24) -- .23 (.61) -- (.61) 14.19 13.10 2007 14.47 .88 .12 (.23) -- .77 (.67) -- (.67) 14.57 14.84 2006 15.12 .89 (.56) (.18) -- .15 (.78) (.02) (.80) 14.47 14.52 MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 13.01 .89 1.26 (.02) -- 2.13 (.76) -- (.76) 14.38 14.30 2009 14.12 .95 (1.19) (.17) -- (.41) (.70) -- (.70) 13.01 13.05 2008 14.65 .95 (.54) (.24) -- .17 (.70) -- (.70) 14.12 14.19 2007 14.57 .95 .12 (.24) -- .83 (.75) -- (.75) 14.65 15.28 2006 15.13 .95 (.47) (.19) -- .29 (.85) -- (.85) 14.57 15.19 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES AND MUNIFUND AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD AT END OF PERIOD ----------------------------------- ----------------------------------------------------------- ----------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE ASSET COVERAGE PER $1 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE LIQUIDATION PREFERENCE ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $32,975 $25,000 $79,788 $38,775 $10.00 $10.00 $10.01* $31.92 $3.19 2009 70,875 25,000 75,972 -- -- -- -- -- -- 2008 79,100 25,000 72,722 -- -- -- -- -- -- 2007 79,100 25,000 73,990 -- -- -- -- -- -- 2006 79,100 25,000 73,620 -- -- -- -- -- -- MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 -- -- -- 26,485 10.00 10.01 10.01** 32.77 -- 2009 25,825 25,000 77,766 -- -- -- -- -- -- 2008 32,000 25,000 71,172 -- -- -- -- -- -- 2007 32,000 25,000 72,860 -- -- -- -- -- -- 2006 32,000 25,000 72,470 -- -- -- -- -- -- ====================================================================================================================================
86 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------------------------------------------------------ RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d) ------------------- ---------------------------------- ---------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 19.89% 14.44% $157,243 1.49% 1.20% 5.88% N/A% N/A% N/A% 2% 2009 2.57 .66 144,504 1.35 1.30 6.80 N/A N/A N/A 5 2008 (7.55) 1.63 150,994 1.25 1.24 6.13 N/A N/A N/A 14 2007 6.96 5.35 155,004 1.27 1.23 5.95 N/A N/A N/A 13 2016 (2.94) 1.08 153,834 1.23 1.23 6.05 N/A N/A N/A 13 MARYLAND DIVIDEND ADVANTAGE - ------------------------------------------------------------------------------------------------------------------------------------ (NFM) Year Ended 5/31: 2010 15.78 16.68 60,308 1.43 1.21 6.27 1.31 1.09 6.39 4 2009 (2.48) (2.52) 54,507 1.42 1.36 7.37 1.20 1.15 7.59 5 2008 (2.31) 1.25 59,100 1.30 1.28 6.39 1.01 1.00 6.67 12 2007 5.51 5.74 61,261 1.30 1.26 6.06 .95 .91 6.41 12 2006 2.51 1.95 60,762 1.26 1.26 5.99 .83 .83 6.42 14 ====================================================================================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios in the above table reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * For the period January 29, 2010 (first issuance date of shares) through May 31, 2010. ** For the period April 13, 2010 (first issuance date of shares) through May 31, 2010. N/A Fund does not have a contractual reimbursement with the Adviser. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 87 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS ---------------------------------------------------------------- --------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $13.15 $.90 $ 1.21 $(.03) $ -- $2.08 $(.76) $ -- $(.76) $14.47 $15.00 2009 14.29 .95 (1.19) (.16) (.01) (.41) (.70) (.03) (.73) 13.15 12.69 2008 14.81 .94 (.48) (.24) (.01) .21 (.70) (.03) (.73) 14.29 14.25 2007 14.76 .94 .10 (.23) -- .81 (.76) -- (.76) 14.81 15.38 2006 15.45 .94 (.59) (.18) -- .17 (.83) (.03) (.86) 14.76 14.76 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 13.30 .84 1.22 (.03) -- 2.03 (.74) -- (.74) 14.59 14.19 2009 14.02 .89 (.78) (.16) (.01) (.06) (.64) (.02) (.66) 13.30 12.56 2008 14.48 .89 (.49) (.23) -- .17 (.63) -- (.63) 14.02 13.01 2007 14.33 .88 .16 (.22) -- .82 (.67) -- (.67) 14.48 14.74 2006 14.82 .86 (.46) (.18) -- .22 (.71) -- (.71) 14.33 13.85 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES AND MUNIFUND AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD AT END OF PERIOD ----------------------------------- ----------------------------------------------------------- ----------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE ASSET COVERAGE PER $1 (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE LIQUIDATION PREFERENCE ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $ -- $ -- $ -- $27,300 $10.00 $9.97 $9.96* $32.25 $-- 2009 26,625 25,000 76,817 -- -- -- -- -- -- 2008 32,000 25,000 71,813 -- -- -- -- -- -- 2007 32,000 25,000 73,488 -- -- -- -- -- -- 2006 32,000 25,000 73,224 -- -- -- -- -- -- MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 14,825 25,000 80,078 20,700 10.00 10.02 10.04** 32.03 3.20 2009 35,000 25,000 75,951 -- -- -- -- -- -- 2008 39,000 25,000 73,208 -- -- -- -- -- -- 2007 39,000 25,000 74,769 -- -- -- -- -- -- 2006 39,000 25,000 74,237 -- -- -- -- -- -- ====================================================================================================================================
88 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d) ------------------- ---------------------------------- ---------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE ==================================================================================================================================== MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 24.89% 16.13% $60,749 1.47% 1.24% 6.21% 1.29% 1.06% 6.38% 2% 2009 (5.21) (2.43) 55,185 1.41 1.36 7.16 1.15 1.10 7.42 6 2008 (2.30) 1.54 59,921 1.29 1.28 6.18 .96 .94 6.51 13 2007 9.32 5.56 62,064 1.32 1.28 5.86 .91 .87 6.27 10 2006 1.13 1.14 61,726 1.25 1.25 5.76 .79 .79 6.21 15 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 19.24 15.53 78,266 1.47 1.22 5.78 1.31 1.06 5.94 --*** 2009 2.35 (.05) 71,332 1.38 1.33 6.70 1.08 1.03 7.00 5 2008 (7.38) 1.24 75,205 1.26 1.25 5.86 .86 .85 6.27 13 2007 11.47 5.75 77,640 1.28 1.24 5.52 .80 .76 6.00 11 2006 1.09 1.55 76,809 1.23 1.23 5.41 .75 .75 5.89 14 ====================================================================================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 -MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * For the period April 9, 2010 (first issuance date of shares) through May 31, 2010. ** For the period February 23, 2010 (first issuance date of shares) through May 31, 2010. *** Rounds to less than 1%. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 89 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS ------------------------------------------------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL BEGINNING INCOME TO GAINS TO COMMON NET AUCTION RATE AUCTION RATE SHARE NET REALIZED/ PREFERRED PREFERRED NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL =================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - --------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 $13.76 $.88 $ .93 $(.03) $ -- $1.78 2009 14.39 .90 (.66) (.15) (.02) .07 2008 14.89 .88 (.40) (.22) (.03) .23 2007 14.89 .88 .07 (.23) --* .72 2006 15.82 .88 (.59) (.15) (.03) .11 VIRGINIA DIVIDEND ADVANTAGE (NGB) - --------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 13.04 .84 1.11 (.02) -- 1.93 2009 14.21 .93 (1.23) (.17) --* (.47) 2008 14.98 .95 (.67) (.22) (.03) .03 2007 14.91 .96 .14 (.24) -- .86 2006 15.52 .97 (.54) (.17) -- .26 ===================================================================================================
LESS DISTRIBUTIONS ----------------------------- NET INVESTMENT CAPITAL ENDING INCOME TO GAINS TO COMMON COMMON COMMON SHARE ENDING SHARE- SHARE- NET ASSET MARKET HOLDERS HOLDERS TOTAL VALUE VALUE =============================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------- Year Ended 5/31: 2010 $(.81) $ -- $(.81) $14.73 $15.85 2009 (.65) (.05) (.70) 13.76 14.36 2008 (.64) (.09) (.73) 14.39 14.04 2007 (.70) (.02) (.72) 14.89 15.24 2006 (.80) (.24) (1.04) 14.89 14.91 VIRGINIA DIVIDEND ADVANT AGE (NGB) - ------------------------------------------------------------------------------- Year Ended 5/31: 2010 (.76) -- (.76) 14.21 15.14 2009 (.69) (.01) (.70) 13.04 14.00 2008 (.70) (.10) (.80) 14.21 14.81 2007 (.79) -- (.79) 14.98 17.51 2006 (.87) -- (.87) 14.91 17.10 ===============================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD ----------------------------------- ------------------------------------------------------------ AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE =========================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 $25,550 $25,000 $82,269 $32,205 $10.00 $10.00 $10.00** $32.91 2009 63,800 25,000 73,244 -- -- -- -- -- 2008 63,800 25,000 75,357 -- -- -- -- -- 2007 63,800 25,000 77,077 -- -- -- -- -- 2006 63,800 25,000 76,970 -- -- -- -- -- VIRGINIA DIVIDEND ADVANTAGE (NGB) - --------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 -- -- -- 22,800 10.00 10.09 10.13*** 29.57 2009 21,750 25,000 71,989 -- -- -- -- -- 2008 24,000 25,000 71,367 -- -- -- -- -- 2007 24,000 25,000 73,862 -- -- -- -- -- 2006 24,000 25,000 73,568 -- -- -- -- -- ===========================================================================================================================
AUCTION RATE PREFERRED SHARES AND MUNIFUND TERM PREFERRED SHARES AT END OF PERIOD ----------------------------------- ASSET COVERAGE PER $1 LIQUIDATION PREFERENCE ============================================================= VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------- Year Ended 5/31: 2010 $3.29 2009 -- 2008 -- 2007 -- 2006 -- VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------- Year Ended 5/31: 2010 -- 2009 -- 2008 -- 2007 -- 2006 -- =============================================================
90 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA --------------------------------------------------- RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) -------------------- ------------------------------------ BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME ===================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - ----------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 16.60% 13.19% $132,302 1.45% 1.20% 6.14% 2009 8.05 .88 123,119 1.36 1.28 6.82 2008 (2.94) 1.56 128,512 1.25 1.23 6.02 2007 7.18 4.89 132,900 1.20 1.20 5.80 2006 (9.98) 0.71 132,626 1.19 1.19 5.75 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ----------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 14.13 15.13 44,612 2.19 1.38 5.94 2009 (.01) (2.92) 40,881 1.47 1.38 7.17 2008 (10.58) .23 44,512 1.30 1.28 6.28 2007 7.24 5.82 46,908 1.27 1.27 5.99 2006 5.86 1.74 46,626 1.26 1.26 5.93 =====================================================================================================
RATIOS/SUPPLEMENTAL DATA ------------------------------------------------ RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES AFTER REIMBURSEMENT(c)(d) ------------------------------------ EXPENSES EXPENSES NET PORTFOLIO INCLUDING EXCLUDING INVESTMENT TURNOVER INTEREST(e) INTEREST INCOME RATE ========================================================================= VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------- Year Ended 5/31: 2010 N/A% N/A% N/A% 3% 2009 N/A N/A N/A 6 2008 N/A N/A N/A 14 2007 N/A N/A N/A 16 2006 N/A N/A N/A 16 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------- Year Ended 5/31: 2010 2.06 1.25 6.07 2 2009 1.26 1.18 7.38 4 2008 1.03 1.01 6.56 10 2007 .92 .92 6.34 23 2006 .84 .84 6.36 16 =========================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 -MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * Rounds to less than $.01 per share. ** For the period January 26, 2010 (first issuance date of shares) through May 31, 2010. *** For the period November 18, 2009 (first issuance date of shares) through May 31, 2010. N/A Fund does not have a contractual reimbursement with the Adviser. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 91 | Financial | Highlights (continued) Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS LESS DISTRIBUTIONS --------------------------------------------------------------- ----------------------------- DISTRIBUTIONS DISTRIBUTIONS FROM NET FROM INVESTMENT CAPITAL NET BEGINNING INCOME TO GAINS TO INVESTMENT CAPITAL ENDING COMMON NET AUCTION RATE AUCTION RATE INCOME TO GAINS TO COMMON SHARE NET REALIZED/ PREFERRED PREFERRED COMMON COMMON SHARE ENDING NET ASSET INVESTMENT UNREALIZED SHARE- SHARE- SHARE- SHARE- NET ASSET MARKET VALUE INCOME GAIN (LOSS) HOLDERS(a) HOLDERS(a) TOTAL HOLDERS HOLDERS TOTAL VALUE VALUE - ------------------------------------------------------------------------------------------------------------------------------------ VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2010 $13.36 $.84 $ 1.15 $(.01) $ -- $1.98 $(.78) $ -- $(.78) $14.56 $15.15 2009 14.39 .97 (1.11) (.16) --* (.30) (.72) (.01) (.73) 13.36 13.98 2008 15.08 .96 (.61) (.24) (.02) .09 (.72) (.06) (.78) 14.39 14.65 2007 15.02 .96 .11 (.24) -- .83 (.77) -- (.77) 15.08 16.73 2006 15.70 .95 (.52) (.18) (.01) .24 (.85) (.07) (.92) 15.02 16.40 ====================================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES AT END OF PERIOD AT END OF PERIOD ------------------------------------- -------------------------------------------------------------- AGGREGATE AGGREGATE ENDING AVERAGE AMOUNT LIQUIDATION ASSET AMOUNT LIQUIDATION MARKET MARKET ASSET OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE VALUE VALUE COVERAGE (000) PER SHARE PER SHARE (000) PER SHARE PER SHARE PER SHARE PER SHARE - ------------------------------------------------------------------------------------------------------------------------- VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 $ -- $ -- $ -- $43,200 $10.00 $10.08 $10.12** $29.39 2009 41,175 25,000 71,586 -- -- -- -- -- 2008 42,000 25,000 74,090 -- -- -- -- -- 2007 42,000 25,000 76,418 -- -- -- -- -- 2006 42,000 25,000 76,123 -- -- -- -- -- =========================================================================================================================
92 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA -------------------------------------------------------------------------------------------------- RATIOS TO AVERAGE NET ASSETS RATIOS TO AVERAGE NET ASSETS APPLICABLE TO COMMON SHARES APPLICABLE TO COMMON SHARES TOTAL RETURNS BEFORE REIMBURSEMENT(c) AFTER REIMBURSEMENT(c)(d) ------------------- ----------------------------------- ----------------------------------- BASED ENDING ON NET BASED COMMON ASSETS ON SHARE NET APPLICABLE EXPENSES EXPENSES NET EXPENSES EXPENSES NET PORTFOLIO MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT INCLUDING EXCLUDING INVESTMENT TURNOVER VALUE(b) VALUE(b) SHARES (000) INTEREST(e) INTEREST INCOME INTEREST(e) INTEREST INCOME RATE - ----------------------------------------------------------------------------------------------------------------------------------- VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2010 14.48% 15.15% $83,765 2.15% 1.28% 5.77% 1.96% 1.09% 5.96% 2% 2009 .96 (1.78) 76,726 1.39 1.31 7.21 1.11 1.03 7.49 4 2008 (7.58) .63 82,472 1.24 1.22 6.21 .91 .89 6.55 10 2007 6.96 5.60 86,382 1.21 1.21 5.89 .80 .80 6.29 19 2006 3.45 1.53 85,887 1.19 1.19 5.75 .75 .75 6.19 10 ===================================================================================================================================
(a) The amounts shown are based on Common share equivalents. (b) Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. (c) Ratios do not reflect the effect of dividend payments to Auction Rate Preferred shareholders; Net Investment Income ratios reflect income earned and expenses incurred on assets attributable to Auction Rate Preferred shares and/or MuniFund Term Preferred shares, where applicable. (d) After expense reimbursement from the Adviser, where applicable. Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash on deposit with the custodian bank, where applicable. (e) The expense ratios reflect, among other things, payments to MuniFund Term Preferred shareholders and/or the interest expense deemed to have been paid by the Fund on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund, where applicable, as described in Footnote 1 -MuniFund Term Preferred Shares and Inverse Floating Rate Securities, respectively. * Rounds to less than $.01 per share. ** For the period November 4, 2009 (first issuance date of shares) through May 31, 2010. SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. Nuveen Investments 93 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: ROBERT P. BREMNER(2) Private Investor and Management Consultant; 8/22/40 Chairman of Treasurer and Director, Humanities Council of 333 W. Wacker Drive the Board 1996 200 Washington, D.C. Chicago, IL 60606 and Board Member JACK B. EVANS President, The Hall-Perrine Foundation, a 10/22/48 private philanthropic corporation (since 1996); 333 W. Wacker Drive Board Member 1999 200 Director and Chairman, United Fire Group, a Chicago, IL 60606 publicly held company; President Pro Tem of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and the Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. WILLIAM C. HUNTER Dean, Tippie College of Business, University of 3/6/48 Iowa (since 2006); Director (since 2004) of 333 W. Wacker Drive Board Member 2004 200 Xerox Corporation; Director (since 2005), Beta Chicago, IL 60606 Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. DAVID J. KUNDERT(2) Director, Northwestern Mutual Wealth Management 10/28/42 Company; retired (since 2004) as Chairman, 333 W. Wacker Drive Board Member 2005 200 JPMorgan Fleming Asset Management, President and Chicago, IL 60606 CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and chair of Investment Committee, Greater Milwaukee Foundation. WILLIAM J. SCHNEIDER(2) Chairman of Miller-Valentine Partners Ltd., a 9/24/44 real estate investment company; formerly, Senior 333 W. Wacker Drive Board Member 1997 200 Partner and Chief Operating Officer (retired, Chicago, IL 60606 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council;member, Mid-America Health System board; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
94 Nuveen Investments
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy 12/29/47 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Board Member 1997 200 thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (1990-1994). CAROLE E. STONE(2) Director, Chicago Board Options Exchange (since 6/28/47 2006); Director, C2 Options Exchange, 333 W. Wacker Drive Board Member 2007 200 Incorporated (since 2009); Commissioner, New Chicago, IL 60606 York State Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). TERENCE J. TOTH(2) 9/29/59 Director, Legal & General Investment Management 333 W. Wacker Drive Board Member 2008 200 America, Inc. (since 2008); Managing Partner, Chicago, IL 60606 Promus Capital (since 2008); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: JOHN P. AMBOIAN(3) Chief Executive Officer (since July 2007), 6/14/61 Director (since 1999) and Chairman (since 2007) 333 W. Wacker Drive Board Member 2008 200 of Nuveen Investments, Inc.; Chief Executive Chicago, IL 60606 Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc.; President (since 2005) of Nuveen Commodities Asset Management, LLC.
Nuveen Investments 95 Board Members & Officers (continued)
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant 9/9/56 Chief Secretary and Associate General Counsel of 333 W. Wacker Drive Administrative 1988 200 Nuveen Investments, LLC; Managing Director, Chicago, IL 60606 Officer Associate General Counsel and Assistant Secretary, of Nuveen Asset Management (since 2002) and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2005) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst. WILLIAM ADAMS IV Executive Vice President of Nuveen Investments, 6/9/55 Inc.; Executive Vice President, U.S. Structured 333 W. Wacker Drive Vice President 2007 125 Products of Nuveen Investments, LLC, (since Chicago, IL 60606 1999),; Executive Vice President (since 2005) of Nuveen Commodities Asset Management, LLC. CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004), previously, 1/11/62 Vice President (1993-2004) of Nuveen 333 W. Wacker Drive Vice President 2007 125 Investments, LLC. Chicago, IL 60606 NIZIDA ARRIAGA Senior Vice President of Nuveen Investments, LLC 6/1/68 (since 2010); formerly, Vice President 333 W. Wacker Drive Vice President 2009 200 (2007-2010); previously, Portfolio Manager, Chicago, IL 60606 Allstate Investments, LLC (1996-2006); Chartered Financial Analyst. MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen 2/3/66 Vice President Investments, LLC.; Vice President of Nuveen 333 W. Wacker Drive and Assistant 2000 200 Asset Management (since 2005). Chicago, IL 60606 Secretary MARGO L. COOK Executive Vice President (since Oct 2008) of 4/11/64 Nuveen Investments, Inc.; previously, Head of 333 W. Wacker Drive Vice President 2009 200 Institutional Asset Management (2007-2008) of Chicago, IL 60606 Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. LORNA C. FERGUSON Managing Director (since 2004) of Nuveen 10/24/45 Investments, LLC and Managing Director (since 333 W. Wacker Drive Vice President 1998 200 2005) of Nuveen Asset Management. Chicago, IL 60606 STEPHEN D. FOY Senior Vice President (since 2010), formerly, 5/31/54 Vice President Vice President (1993-2010) and Funds Controller 333 W. Wacker Drive and Controller 1998 200 (since 1998) of Nuveen Investments, LLC; Vice Chicago, IL 60606 President (2005-2010) of Nuveen Asset Management; Certified Public Accountant. SCOTT S. GRACE Managing Director, Corporate Finance & 8/20/70 Vice President Development, Treasurer (since September 2009) of 333 W. Wacker Drive and Treasurer 2009 200 Nuveen Investments, LLC; Managing Director and Chicago, IL 60606 Treasurer of Nuveen Asset Management (since 2009); formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley's Global Financial Services Group (2000-2003); Chartered Accountant Designation.
96 Nuveen Investments
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed Income 5/7/69 (since 2008) of Nuveen Asset Management; 333 W. Wacker Drive Vice President 2009 136 previously, Chairman, President and Chief Chicago, IL 60606 Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; Certified Public Accountant. WALTER M. KELLY Senior Vice President (since 2008), Vice 2/24/70 Chief Compliance President (2006-2008) formerly, Assistant Vice 333 W. Wacker Drive Officer and 2003 200 President and Assistant General Counsel Chicago, IL 60606 Vice President (2003-2006) of Nuveen Investments, LLC; Senior Vice President (since 2008), formerly, Vice President (2006-2008) and Assistant Secretary (since 2008) of Nuveen Asset Management. DAVID J. LAMB Senior Vice President (since 2009), formerly, 3/22/63 Vice President (2000-2009) of Nuveen 333 W. Wacker Drive Vice President 2000 200 Investments, LLC; Vice President (since 2005) of Chicago, IL 60606 Nuveen Asset Management; Certified Public Accountant. TINA M. LAZAR Senior Vice President (since 2009), formerly, 8/27/61 Vice President of Nuveen Investments, LLC 333 W. Wacker Drive Vice President 2002 200 (1999-2009); Vice President of Nuveen Asset Chicago, IL 60606 Management (since 2005). LARRY W. MARTIN Senior Vice President (since 2010), formerly, 7/27/51 Vice President Vice President (1993-2010), Assistant Secretary 333 W. Wacker Drive and Assistant 1988 200 and Assistant General Counsel of Nuveen Chicago, IL 60606 Secretary Investments, LLC; Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007). KEVIN J. MCCARTHY Managing Director (since 2008), formerly, Vice 3/26/66 Vice President President (2007-2008), Nuveen Investments, LLC; 333 W. Wacker Drive and Secretary 2007 200 Managing Director (since 2008), formerly, Vice Chicago, IL 60606 President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). JOHN V. MILLER Chief Investment Officer and Managing Director 4/10/67 (since 2007), formerly, Vice President 333 W. Wacker Drive Vice President 2007 136 (2002-2007) of Nuveen Asset Management and Chicago, IL 60606 Managing Director (since 2007), formerly Vice President (2002-2007) Nuveen Investments, LLC; Chartered Financial Analyst.
Nuveen Investments 97 Board Members & Officers (continued)
- ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: GREGORY MINO Senior Vice President (since 2010) of Nuveen 1/4/71 Investments, LLC, formerly, Vice President 333 W. Wacker Drive Vice President 2009 200 (2008-2010); previously, Director (2004-2007) Chicago, IL 60606 and Executive Director (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC (since 8/1/71 Vice President 2008); Vice President and Assistant Secretary, 333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior Chicago, IL 60606 Secretary thereto, Associate, Skadden, Arps, Slate, Meagher & Flom LLP (2002-2008). JAMES F. RUANE Vice President, Nuveen Investments, LLC (since 7/3/62 Vice President 2007); prior thereto, Partner, Deloitte & Touche 333 W. Wacker Drive and Assistant 2007 200 USA LLP (2005-2007), formerly, senior tax Chicago, IL 60606 Secretary manager (2002-2005); Certified Public Accountant. MARK L. WINGET Vice President, Nuveen Investments, LLC (since 12/21/68 Vice President 2008); Vice President and Assistant Secretary, 333 W. Wacker Drive and Assistant 2008 200 Nuveen Asset Management (since 2008); prior Chicago, IL 60606 Secretary thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Also serves as a trustee of the Nuveen Diversified Commodity Fund, a Nuveen-sponsored commodity pool that has filed a registration statement on Form S-1 with the SEC for a proposed initial public offering. The S-1 has not been declared effective, and the commodity pool has not commenced operations. (3) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 98 Nuveen Investments Annual Investment Management Agreement Approval Process The Investment Company Act of 1940, as amended (the "1940 ACT"), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund's board members, including by a vote of a majority of the board members who are not parties to the advisory agreement or "interested persons" of any parties (the "INDEPENDENT BOARD MEMBERS"), cast in person at a meeting called for the purpose of considering such approval. In connection with such approvals, the fund's board members must request and evaluate, and the investment adviser is required to furnish, such information as may be reasonably necessary to evaluate the terms of the advisory agreement. Accordingly, at a meeting held on May 25-26, 2010 (the "MAY MEETING"), the Boards of Trustees or Directors (as the case may be) (each a "BOARD" and each Trustee or Director, a "BOARD MEMBER") of the Funds, including a majority of the Independent Board Members, considered and approved the continuation of the advisory agreements (each an "ADVISORY AGREEMENT") between each Fund and Nuveen Asset Management ("NAM") for an additional one-year period. In preparation for their considerations at the May Meeting, the Board also held a separate meeting on April 21-22, 2010 (the "APRIL MEETING"). Accordingly, the factors considered and determinations made regarding the renewals by the Independent Board Members include those made at the April Meeting. In addition, in evaluating the Advisory Agreements, the Independent Board Members reviewed a broad range of information relating to the Funds and NAM, including absolute and comparative performance, fee and expense information for the Funds (as described in more detail below), the profitability of Nuveen for its advisory activities (which includes its wholly owned subsidiaries), and other information regarding the organization, personnel, and services provided by NAM. The Independent Board Members also met quarterly as well as at other times as the need arose during the year and took into account the information provided at such meetings and the knowledge gained therefrom. Prior to approving the renewal of the Advisory Agreements, the Independent Board Members reviewed the foregoing information with their independent legal counsel and with management, reviewed materials from independent legal counsel describing applicable law and their duties in reviewing advisory contracts, and met with independent legal counsel in private sessions without management present. The Independent Board Members considered the legal advice provided by independent legal counsel and relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year and their own business judgment in determining the factors to be considered in evaluating the Advisory Agreements. Each Board Member may have accorded different weight to the various factors in reaching his or her conclusions with respect to a Fund's Advisory Agreement. The Independent Board Members did not identify any single factor as Nuveen Investments 99 Annual Investment Management Agreement Approval Process (continued) all-important or controlling. The Independent Board Members' considerations were instead based on a comprehensive consideration of all the information presented. The principal factors considered by the Board and its conclusions are described below. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering renewal of the Advisory Agreements, the Independent Board Members considered the nature, extent and quality of NAM's services, including advisory services and administrative services. The Independent Board Members reviewed materials outlining, among other things, NAM's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives Nuveen had taken for the applicable fund product line, including continued activities to refinance auction rate preferred securities, manage leverage during periods of market turbulence and implement an enhanced leverage management process, modify investment mandates in light of market conditions and seek shareholder approval as necessary, maintain the fund share repurchase program and maintain shareholder communications to keep shareholders apprised of Nuveen's efforts in refinancing preferred shares. In addition to the foregoing, the Independent Board Members also noted the additional services that NAM or its affiliates provide to closed-end funds, including, in particular, Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include maintaining an investor relations program to provide timely information and education to financial advisers and investors; providing marketing for the closed-end funds; maintaining and enhancing a closed-end fund website; participating in conferences and having direct communications with analysts and financial advisors. As part of their review, the Independent Board Members also evaluated the background, experience and track record of NAM's investment personnel. In this regard, the Independent Board Members considered any changes in the personnel, and the impact on the level of services provided to the Funds, if any. The Independent Board Members also reviewed information regarding portfolio manager compensation arrangements to evaluate NAM's ability to attract and retain high quality investment personnel, preserve stability, and reward performance but not provide an incentive for taking undue risks. In addition to advisory services, the Independent Board Members considered the quality of administrative services provided by NAM and its affiliates including product management, fund administration, oversight of service providers, shareholder services, administration of Board relations, regulatory and portfolio compliance and legal support. Given the importance of compliance, the Independent Board Members also considered NAM's compliance program, including the report of the chief compliance officer regarding the Funds' compliance policies and procedures. Based on their review, the Independent Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Advisory Agreements were satisfactory. 100 Nuveen Investments B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM The Board considered the performance results of each Fund over various time periods. The Board reviewed, among other things, each Fund's historic investment performance as well as information comparing the Fund's performance information with that of other funds (the "PERFORMANCE PEER GROUP") based on data provided by an independent provider of mutual fund data and with recognized and/or customized benchmarks. In this regard, the Board reviewed each Fund's total return information compared to its Performance Peer Group for the quarter, one-, three- and five-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for Funds that did not exist during part of the foregoing time frame). In addition, the Board reviewed each Fund's total return information compared to recognized and/or customized benchmarks for the quarter, one- and three-year periods ending December 31, 2009 and for the same periods ending March 31, 2010 (or for the periods available for Funds that did not exist during part of the foregoing time frame). Moreover, the Board reviewed the peer ranking of the Nuveen municipal funds advised by NAM in the aggregate. The Independent Board Members also reviewed historic premium and discount levels. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. In reviewing peer comparison information, the Independent Board Members recognized that the Performance Peer Group of certain funds may not adequately represent the objectives and strategies of the funds, thereby limiting the usefulness of comparing a fund's performance with that of its Performance Peer Group. In this regard, the Independent Board Members considered that the Performance Peer Groups of certain funds (including the Funds) were classified as having significant differences from such funds based on considerations such as special fund objectives, potential investable universe and the composition of the peer set (E.G., the number and size of competing funds and number of competing managers). Based on their review, the Independent Board Members determined that each Fund's investment performance over time had been satisfactory. The Independent Board Members noted that although each Fund underperformed its respective benchmark in the three-year period, each Fund outperformed the performance of its respective benchmark in the one-year period. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES The Board evaluated the management fees and expenses of each Fund reviewing, among other things, such Fund's gross management fees, net management fees and net expense ratios in absolute terms as well as compared to the fee and expenses of a comparable universe of unaffiliated funds based on data provided by an independent fund data provider (the "PEER UNIVERSE") and in certain cases, to a more focused subset of funds in the Peer Universe (the "PEER GROUP") and any expense limitations. The Independent Board Members further reviewed the methodology regarding the construction of the applicable Peer Universe and/or Peer Group. In reviewing the comparisons of fee and expense information, the Independent Board Members took into account that in certain instances various factors such as: the asset level of a fund Nuveen Investments 101 Annual Investment Management Agreement Approval Process (continued) relative to peers; the limited size and particular composition of the Peer Universe or Peer Group; the investment objectives of the peers; expense anomalies; changes in the funds comprising the Peer Universe or Peer Group from year to year; levels of reimbursement; the timing of information used; the differences in the type and use of leverage; and differences in the states reflected in the Peer Universe or Peer Group may impact the comparative data, thereby limiting the ability to make a meaningful comparison with peers. In reviewing the fee schedule for a Fund, the Independent Board Members also considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain closed-end funds launched since 1999). Except as set forth in the following sentence, the Independent Board Members noted that the Funds had net management fees and/or net expense ratios below, at or near (within 5 basis points or less) the peer averages of their Peer Group or Peer Universe. The Nuveen Maryland Premium Income Municipal Fund and the Nuveen Virginia Premium Income Municipal Fund had net advisory fees above the peer average but net expense ratios below the peer expense ratio average. Based on their review of the fee and expense information provided, the Independent Board Members determined that each Fund's management fees were reasonable in light of the nature, extent and quality of services provided to the Fund. 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS The Independent Board Members further reviewed information regarding the nature of services and fee rates offered by NAM to other clients, including municipal separately managed accounts and passively managed municipal bond exchange traded funds (ETFs) that are sub-advised by NAM. In evaluating the comparisons of fees, the Independent Board Members noted that the fee rates charged to the Funds and other clients vary, among other things, because of the different services involved and the additional regulatory and compliance requirements associated with registered investment companies, such as the Funds. Accordingly, the Independent Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Independent Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Independent Board Members believe such facts justify the different levels of fees. 3. PROFITABILITY OF NUVEEN In conjunction with its review of fees, the Independent Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. The Independent Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last two years, the allocation methodology used in preparing the profitability data and an analysis of the key drivers behind the changes in revenues and expenses that impacted profitability in 2009. The Independent Board Members 102 Nuveen Investments noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Independent Board Members noted that they had also appointed an Independent Board Member as a point person to review and keep them apprised of changes to the profitability analysis and/or methodologies during the year. The Independent Board Members also considered Nuveen's revenues for advisory activities, expenses, and profit margin compared to that of various unaffiliated management firms with similar amounts of assets under management and relatively comparable asset composition prepared by Nuveen. In reviewing profitability, the Independent Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors including the allocation of expenses. Further, the Independent Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In reviewing profitability, the Independent Board Members recognized Nuveen's investment in its fund business. Based on their review, the Independent Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Independent Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Independent Board Members determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Independent Board Members have recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base, although economies of scale are difficult to measure and predict with precision, particularly on a fund-by-fund basis. One method to help ensure the shareholders share in these benefits is to include breakpoints in the advisory fee schedule. Generally, management fees for funds in the Nuveen complex are comprised of a fund-level component and a complex-level component, subject to certain exceptions. Accordingly, the Independent Board Members reviewed and considered the applicable fund-level breakpoints in the advisory fee schedules that reduce advisory fees as asset levels increase. Further, the Independent Board Members noted that although closed-end Nuveen Investments 103 Annual Investment Management Agreement Approval Process (continued) funds may from time-to-time make additional share offerings, the growth of their assets will occur primarily through the appreciation of such funds' investment portfolio. In addition to fund-level advisory fee breakpoints, the Board also considered the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex are generally reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement seeks to provide the benefits of economies of scale to fund shareholders when total fund complex assets increase, even if assets of a particular fund are unchanged or have decreased. The approach reflects the notion that some of Nuveen's costs are attributable to services provided to all its funds in the complex and therefore all funds benefit if these costs are spread over a larger asset base. Based on their review, the Independent Board Members concluded that the breakpoint schedules and complex-wide fee arrangement were acceptable and reflect economies of scale to be shared with shareholders when assets under management increase. E. INDIRECT BENEFITS In evaluating fees, the Independent Board Members received and considered information regarding potential "fall out" or ancillary benefits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Independent Board Members considered any revenues received by affiliates of NAM for serving as agent at Nuveen's trading desk and as co-manager in initial public offerings of new closed-end funds. In addition to the above, the Independent Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. The Independent Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Independent Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Independent Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Advisory Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the Advisory Agreements be renewed. 104 Nuveen Investments Reinvest Automatically Easily and Conveniently NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS AUTOMATIC REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 quarter you'll receive a statement showing your total distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may Nuveen Investments 105 Reinvest Automatically Easily and Conveniently (continued) exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the 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. 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 financial 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 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. 106 Nuveen Investments Glossary of Terms Used in this Report o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed," with current holders receiving a formula-based interest rate until the next scheduled auction. o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse floaters, are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. Nuveen Investments 107 Glossary of Terms Used in this Report (continued) o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond's credit rating and thus its value. o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. 108 Nuveen Investments Other Useful Information BOARD OF TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2009, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange ("NYSE") the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table. COMMON SHARES PREFERRED SHARES FUND REPURCHASED REDEEMED NMY -- 1,516 NFM -- 1,033 NZR -- 1,065 NWI -- 807 NPV -- 1,530 NGB -- 780 NNB -- 1,647 Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 109 Nuveen Investments: Serving Investors for Generations Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, longterm investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio. FOCUSED ON MEETING INVESTOR NEEDS. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $150 billion of assets on March 31, 2010. FIND OUT HOW WE CAN HELP YOU. To learn more about the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain prospectus, which contains this and other relevant information. To obtain a prospectus, please contact your securities representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com EAN-A-0510D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Maryland Dividend Advantage Municipal Fund 2 The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2010 $ 10,163 $ 12,500 $ 0 $ 850 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 10,120 $ 0 $ 0 $ 850 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2010 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2009 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------------ May 31, 2010 $ 850 $ 0 $ 0 $ 850 May 31, 2009 $ 850 $ 0 $ 0 $ 850
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. a) See Portfolio of Investments in Item 1. b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Cathryn P. Steeves Nuveen Maryland Dividend Advantage Municipal Fund 2 Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: TYPE OF ACCOUNT NUMBER OF PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS* - -------------------------------------------------------------------------------- Cathryn P. Steeves Registered Investment Company 44 $8.282 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 0 $0 * Assets are as of May 31, 2010. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of May 31, 2010, the S&P/Investortools Municipal Bond index was comprised of 55,306 securities with an aggregate current market value of $1,205 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors lead by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. In addition, in July 2009, Nuveen Investments created and funded a trust, as part of a newly-established incentive program, which purchased shares of certain Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain employees, including portfolio managers. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of May 31, 2010, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF DOLLAR EQUITY SECURITIES RANGE OF BENEFICIALLY OWNED EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS BENEFICIALLY MANAGED BY NAM'S NAME OF PORTFOLIO OWNED IN MUNICIPAL MANAGER FUND FUND INVESTMENT TEAM - ----------------------------------------------------------------------------------------------------------------------- Cathryn P. Steeves Nuveen Maryland Dividend Advantage Municipal Fund 2 $0 $10,001-$50,000
PORTFOLIO MANAGER BIO: Cathryn P. Steeves, PhD, Senior Vice President of NAM, is currently a portfolio manager for 45 state-specific municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake Forest University as well as an MA, an MPhil and a PhD from Columbia University. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Maryland Dividend Advantage Municipal Fund 2 ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: August 6, 2010 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: August 6, 2010 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: August 6, 2010 ------------------------------------------------------------------- EX-99.CERT 2 ex99cert.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Maryland Dividend Advantage Municipal Fund 2; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 6, 2010 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Maryland Dividend Advantage Municipal Fund 2; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 6, 2010 /s/ Stephen D. Foy ------------------------- -------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) EX-99.906 CERT 3 ex99cert906.txt CERTIFICATION Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen Maryland Dividend Advantage Municipal Fund 2 (the "Fund") certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended May 31, 2010 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: August 6, 2010 ----------------------- /s/ Gifford R. Zimmerman --------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------------------- Stephen D. Foy Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----