-----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, A/fEYR4U2J93OyP/74x3dQbL+EGRUS7xR0Q4JWDUAfnlg/dzCqL4kNp5ES1UQfMO XACG2RiK96qVOfpCLlxzqQ== 0000891804-04-000294.txt : 20040204 0000891804-04-000294.hdr.sgml : 20040204 20040204085736 ACCESSION NUMBER: 0000891804-04-000294 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20031130 FILED AS OF DATE: 20040204 EFFECTIVENESS DATE: 20040204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 CENTRAL INDEX KEY: 0001158728 IRS NUMBER: 364472505 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-10523 FILM NUMBER: 04564759 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178146 N-CSRS 1 file001.txt NUVEEN VIRGINIA DIVIDEND ADV MUNICIPAL FUND 2 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 811-10523 --------------------- Nuveen Virginia 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) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: May 31, 2003 ------------------ Date of reporting period: November 30, 2003 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. SEMIANNUAL REPORT November 30, 2003 Nuveen Municipal Closed-End Exchange-Traded Funds NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND NMY NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND NFM NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NZR NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3 NWI NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND NPV NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND NGB NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NNB Photo of: Man holding up small boy. Photo of: 2 women with 2 girls looking at seashells. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments FASTER INFORMATION RECEIVE YOUR NUVEEN FUND REPORT ELECTRONICALLY By registering for electronic delivery, you will receive an e-mail as soon as your Nuveen Fund information is available. Click on the link and you will be taken directly to the report. Your Fund report can be viewed and saved on your computer. Your report will arrive faster via e-mail than by traditional mail. Registering is easy and only takes a few minutes (see instructions at right). - -------------------------------------------------------------------------------- SOME COMMON CONCERNS: WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES? No, your e-mail address is strictly confidential and will not be used for anything other than notification of shareholder information. WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR MAIL DELIVERY AGAIN? If you decide you do not like receiving your reports electronically, it's a simple process to go back to regular mail delivery. - -------------------------------------------------------------------------------- IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using the address sheet that accompanied this report as a guide. 2 You'll be taken to a page with several options. Select the NEW ENROLLMENT-CREATE screen and follow the simple instructions. 3 Click Submit. Confirm the information you just entered is correct, then click Submit again. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS COME DIRECTLY TO YOU FROM NUVEEN, FOLLOW THE STEPS OUTLINED BELOW: 1 Go to WWW.NUVEEN.COM 2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click on Enrollment Today. 3 You'll be taken to a screen that asks for your Social Security number and e-mail address. Fill in this information, then click Enroll. 4 You should get a confirmation e-mail within 24 hours. If you do not, go back through these steps to make sure all the information is correct. 5 Use this same process if you need to change your registration information or cancel internet viewing. Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Sidebar text: WE THINK YOUR NUVEEN FUND CAN BE AN IMPORTANT BUILDING BLOCK IN A PORTFOLIO DESIGNED TO PERFORM WELL THROUGH A VARIETY OF MARKET CONDITIONS. Dear SHAREHOLDER I am very pleased to report that for the six months ended November 30, 2003, your Nuveen Fund continued to provide you with attractive monthly tax-free income. Your Nuveen Fund is managed with a value investing strategy that puts an emphasis on finding securities that we think are undervalued or underrated. We believe that there are always some municipal bonds that the market is not properly valuing, and that by using a consistent, research-oriented management approach we have the opportunity to find them for your Fund. In this low-rate environment, many have begun to wonder whether interest rates will soon start to rise, and whether that possibility should cause them to adjust their holdings of fixed-income investments. We believe that by constructing a carefully balanced portfolio with the help of a trusted investment professional you may be able to reduce your overall investment risk and give yourself a better chance to meet your financial goals. We think that municipal bond investments like your Nuveen Fund can be important building blocks in a portfolio designed to perform well through a variety of market conditions. Since 1898, Nuveen Investments has offered financial products and solutions that incorporate careful research, diversification, and the application of conservative risk-management principles. We are grateful that you have chosen us as a partner as you pursue your financial goals. We look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board January 15, 2004 1 Nuveen Maryland and Virginia Municipal Closed-End Exchange-Traded Funds (NMY, NFM, NZR, NWI, NPV, NGB, NNB) Portfolio Manager's COMMENTS Portfolio manager Paul Brennan discusses national and state economic and market conditions, key investment strategies, and the recent performance of these seven Nuveen Funds. Paul, who has 12 years of investment experience, has managed NMY and NPV since 1999, NFM, NZR, NGB, and NNB since 2001, and NWI since its inception in 2002. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2003? Over the past six month period, the two greatest influences on the general economy and the municipal market continued to be historically low interest rates and the overall pace of economic improvement. In June 2003, the Federal Reserve reduced the fed funds rate to 1.0%, the lowest level since 1958. The Fed's accommodative monetary policy, coupled with Washington's tax relief measures and increased spending for defense and national security, helped to fuel a jump of 8.2% (annualized) in the third-quarter gross domestic product (GDP), up from 3.3% in the second quarter. At the same time, inflation remained under control. In the municipal market, the slow rate of economic recovery over the majority of this period, low interest rates, and lack of inflationary pressures helped many municipal bonds perform well. During the summer of 2003, however, stronger-than-expected economic data precipitated a spike in bond yields and a corresponding drop in bond prices that impacted results across all fixed-income markets, including the municipal market, for the six-month period ended November 30, 2003. During the first 11 months of 2003, municipal supply nationally remained on a record-setting pace, with $347.1 billion in new bonds, up 5% over the same period in 2002. HOW WERE ECONOMIC AND MARKET CONDITIONS IN MARYLAND AND VIRGINIA? Stimulated by the Washington D.C. economy and increased defense spending by the federal government, Maryland's economy continued to outperform the national average over the six month period. Strong consumer demand benefited employment in the retail sector, although manufacturing and transportation continued to experience job losses. Maryland's highly educated workforce and the large presence of military contractors and private medical research facilities continued to contribute to the state's growth. As of November 2003, unemployment in Maryland was 4.2%, well below the current national average of 5.9%. The state's $10 billion fiscal 2004 budget was balanced using a mix of fee increases, federal funds, budget reductions, and a statewide property tax increase. During the first 11 months of 2003, Maryland issued $6.1 billion in new municipal paper, up 27% over the same period in 2002. Virginia's economy also continued to outperform the nation, as the state benefited from increased defense spending and military activity and above-average growth in federal government employment. Virginia's tourism and service industries also prospered. As of November 2003, unemployment in Virginia was 3.6%, the third lowest in the nation, as the rate continued to decline from 3.9% a year earlier. 2 To balance the fiscal 2002-04 biennial budget ($12.2 billion annually), Virginia relied on spending reductions, fee increases, and nonrecurring measures such as drawing down reserve funds. During the first 11 months of 2003, Virginia issued $6.0 billion in municipal bonds, down 5% from the same period in 2002. HOW DID THESE NUVEEN FUNDS PERFORM OVER THE 12-MONTHS ENDED NOVEMBER 30, 2003? Individual results for these Funds, as well as for relevant benchmarks, are presented in the accompanying table. TOTAL RETURN LEHMAN LIPPER MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2 - ------------------------------------------------------------------------ 1 YEAR 1 YEAR 1 YEAR TAXABLE- ENDED ENDED ENDED 11/30/03 EQUIVALENT3 11/30/03 11/30/03 11/30/03 - ------------------------------------------------------------------------ NMY 5.94% 8.67% 9.17% 6.65% 10.28% - ------------------------------------------------------------------------ NFM 5.80% 8.47% 9.26% 6.65% 10.28% - ------------------------------------------------------------------------ NZR 5.80% 8.47% 11.05% 6.65% 10.28% - ------------------------------------------------------------------------ NWI 5.82% 8.50% 11.66% 6.65% 10.28% - ------------------------------------------------------------------------ NPV 5.33% 7.84% 10.22% 6.65% 10.28% - ------------------------------------------------------------------------ NGB 5.69% 8.37% 10.00% 6.65% 10.28% - ------------------------------------------------------------------------ NNB 5.42% 7.97% 10.99% 6.65% 10.28% - ------------------------------------------------------------------------ Past performance is not predictive of future results. For additional information, see the individual Performance Overview for your Fund in this report. For the 12-months ended November 30, 2003, the total return of all seven of the Funds in this report outperformed the unleveraged Lehman Brothers Municipal Bond Index. Four of the Funds also outperformed or performed in line with their Lipper peer group average, while NMY, NFM and NGB trailed this measure. The use of leverage was one of the factors that influenced the total return performances of these Funds relative to the Lehman index over the past 12-month period. While leveraging creates increased volatility, this strategy can also provide opportunities for additional income for common shareholders, especially during periods of low short-term interest rates, and income is an important component of total return for any bond investment. In general, the Funds benefited from their duration4 positioning during this period. As of November 30, 2003, the durations of the five newer Funds (NFM, NZR, NWI, NGB and NNB) ranged from 9.19 to 11.41, compared with 8.10 for the Lehman index. However, the older NMY and NPV, continued to have the shortest durations (8.72 and 8.86, respectively) as of the end of November 2003. This kept these two Funds from fully benefiting from the decline in interest rates during much of the past twelve month period. Investments with shorter durations generally would be expected to underperform those with longer durations during periods of generally declining long-term municipal interest rates, all other factors being equal. In addition to leverage and duration, factors such as call exposure, portfolio trading activity, and the price movement of specific sectors and holdings also had an impact on the Funds' relative total return performances during this period. For example, during the initial investment period for NFM and NGB at the beginning of 2001, we purchased some higher-yielding bonds backed by Northwest Airlines. In the aftermath of September 11, 2001, these non-rated holdings declined significantly, and we made the decision to sell the bonds during the first quarter of 2003. Although these bonds are no longer in our portfolio, their depreciation impacted the 12-month total returns for both NFM and NGB. HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES? With short-term interest rates remaining at historically low levels, the dividend-paying capabilities of all of these Funds benefited from their use of leverage. During the 12-months ended November 2003, continued low short-term rates enabled us to implement three dividend increases in NFM, NGB, and NNB, two in NZR, and one in NMY and NPV. As of November 30, 2003, NWI, 1 The total annual returns on common share net asset value (NAV) for these Nuveen Funds are compared with the total annual return of the Lehman Brothers Municipal Bond Index, an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The total returns of these Funds are compared with the average annualized return of the 43 funds in the Lipper Other States Municipal Debt Funds category. Fund and Lipper returns assume reinvestment of dividends. It should be noted that the performance of the Lipper Other States category represents the overall average of annual returns for funds from 10 different states with a wide variety of economic and municipal market conditions and investment guidelines, making direct comparisons less applicable. 3 The taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28% plus the applicable state income tax rate. The combined federal and state tax rates used in this report are as follows: Maryland 31.5% and Virginia 32%. The yields shown highlight the added value of owning shares that are exempt from state as well as federal income taxes. 4 Duration is a measure of a fund's NAV volatility in reaction to interest rate movements. Fund duration, also known as leverage-adjusted duration, takes into account the leveraging process for a fund and therefore is generally longer than the duration of the actual portfolio of individual bonds that make up the fund. References to duration in this commentary are intended to indicate fund duration unless otherwise noted. 3 which was introduced in September 2002, had provided shareholders with 13 consecutive months of stable, attractive dividends. Even at these dividend levels, each Fund's common share net investment income during the period exceeded the amount of dividends paid to common shareholders. This excess net investment income, along with any excess net investment income from prior fiscal periods, was held in reserve by the funds as undistributed net investment income (UNII) and is part of the Funds' net asset value. Over time, the Funds will pay out all their net investment income to common shareholders. However, UNII reserves may help the Funds maintain more stable common share dividend levels over time in the event that the short-term rates the Funds pay on their MuniPreferred shares rise or net common share earnings otherwise decline. Despite the increased volatility in the fixed-income markets during the summer of 2003, the share prices and net asset values of these Funds ended the 12-month period higher than they had been at the beginning. The two exceptions were NMY and NWI, which saw their share price decline over the 12-month period. As of November 30, 2003, NMY, NFM, NPV, NGB, and NNB were trading at premiums to their common share NAVs, while NZR and NWI were trading at discounts (see individual Performance Overview pages). WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12-MONTHS ENDED NOVEMBER 30, 2003? For this 12-month period, we continued to place strong emphasis on keeping the Funds fully invested and well diversified, improving call protection, and enhancing dividend-payment capabilities. A major focus continued to be management of the Funds' durations as a way of enhancing our ability to control interest rate risk and produce potentially more consistent returns over time. Interest rate risk is the risk that the value of a Fund's portfolio will decline when market interest rates rise (since bond prices move in the opposite direction of interest rates). The longer the duration of a Fund's portfolio, the greater its interest rate risk. Over the 12-month period, the durations of the four newer Funds (NFM, NZR, NWI, NGB and NNB) were all shortened significantly. However, the duration of NWI (11.41) was slightly longer than the other Funds to provide additional support for this newer Fund's income stream in the current market environment. In keeping with the steepness of the municipal yield curve, the majority of our purchase activity over the past year focused on value opportunities in the long intermediate part of the yield curve (i.e., bonds that mature in 15 to 20 years). In many cases, bonds in this part of the curve offered yields similar to those of longer-term bonds, but had less inherent interest rate risk. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF NOVEMBER 30, 2003? We believe that, given the current geopolitical and economic climate, maintaining strong credit quality remains a vital requirement. As of November 30, 2003, these Nuveen Funds offered excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 68% to 82%. Despite some recent economic weaknesses, Maryland and Virginia continued to rank as very high quality states and were among the nine states to retain their AAA ratings from Standard & Poor's over the past two years. Looking at bond calls, these Funds generally offer good levels of call protection over the next two years, with potential call exposure (as of November 30, 2003) ranging from 1% in NZR, NWI, and NNB to 23% in NMY during 2004 and 2005. Both NMY and NPV have increased call 4 exposure. In coming months, the number of actual bond calls in all of these Funds will depend largely on market interest rates. In general, we believe that these Nuveen Funds can continue to serve as attractive sources of tax-free income, while simultaneously offering the potential for portfolio diversification. In our opinion, the Funds represent a quality component of a well-balanced core investment portfolio that can continue to benefit shareholders over time. 5 Nuveen Maryland Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2003 NMY Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 48% AA 23% A 14% BBB 9% NR 2% BB or Lower 4% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $15.36 - -------------------------------------------------- Common Share Net Asset Value $14.70 - -------------------------------------------------- Premium/(Discount) to NAV 4.49% - -------------------------------------------------- Market Yield 5.94% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.25% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.67% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $155,455 - -------------------------------------------------- Average Effective Maturity (Years) 18.30 - -------------------------------------------------- Leverage-Adjusted Duration 8.72 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 4.10% 9.17% - -------------------------------------------------- 5-Year 4.46% 5.91% - -------------------------------------------------- 10-Year 6.60% 6.24% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Healthcare 17% - -------------------------------------------------- Tax Obligation/General 16% - -------------------------------------------------- Tax Obligation/Limited 15% - -------------------------------------------------- Education and Civic Organizations 14% - -------------------------------------------------- Housing/Multifamily 14% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.076 Apr 0.076 May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.076 Oct 0.076 Nov 0.076 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 15.6 15.63 15.88 16 16.3 15.88 16.05 15.85 15.66 15.67 15.81 15.95 16.01 16.29 16.5 16.4 16.3 16.29 16.35 16.35 16.2 16.19 16.25 17.15 16.92 17 16.7 16.32 16.75 16.88 16.41 15.4 15.19 15.45 15 15.25 15.4 15.45 15.69 15.6 15.77 15.45 15.48 15.6 15.7 16.08 15.59 11/30/03 15.36 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 31.5%. 2 The Fund also paid shareholders a net ordinary income distribution in December 2002 of $0.0032 per share. 6 Nuveen Maryland Dividend Advantage Municipal Fund Performance OVERVIEW As of November 30, 2003 NFM Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 43% AA 25% A 15% BBB 12% NR 5% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $16.24 - -------------------------------------------------- Common Share Net Asset Value $14.97 - -------------------------------------------------- Premium/(Discount) to NAV 8.48% - -------------------------------------------------- Market Yield 5.80% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.06% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.47% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $62,275 - -------------------------------------------------- Average Effective Maturity (Years) 21.20 - -------------------------------------------------- Leverage-Adjusted Duration 9.19 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 13.11% 9.26% - -------------------------------------------------- Since Inception 8.45% 7.51% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 16% - -------------------------------------------------- Healthcare 15% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Housing/Single Family 12% - -------------------------------------------------- U.S. Guaranteed 11% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.071 Jan 0.071 Feb 0.071 Mar 0.074 Apr 0.074 May 0.074 Jun 0.0755 Jul 0.0755 Aug 0.0755 Sep 0.0785 Oct 0.0785 Nov 0.0785 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 15.3 15.18 15 15 15.45 15.5 15.12 15.13 15.31 15.5 15.45 15.52 15.5 15.63 15.5 15.48 15.75 15.83 15.81 16.15 16.2 16.5 16.1 16.08 16.01 16.3 16.11 16.23 16.35 16.79 16.22 15.55 14.95 14.9 14.54 14.72 14.8 15.09 15.2 15.01 15.43 15.43 15.25 15.76 16.15 16.19 16.15 11/30/03 16.24 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 31.5%. 7 Nuveen Maryland Dividend Advantage Municipal Fund 2 Performance OVERVIEW As of November 30, 2003 NZR Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 46% AA 33% A 9% BBB 9% NR 3% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $14.89 - -------------------------------------------------- Common Share Net Asset Value $15.23 - -------------------------------------------------- Premium/(Discount) to NAV (2.23%) - -------------------------------------------------- Market Yield 5.80% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.06% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.47% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $63,471 - -------------------------------------------------- Average Effective Maturity (Years) 20.19 - -------------------------------------------------- Leverage-Adjusted Duration 10.06 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 7.36% 11.05% - -------------------------------------------------- Since Inception 5.05% 8.44% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 30% - -------------------------------------------------- Tax Obligation/Limited 13% - -------------------------------------------------- Healthcare 12% - -------------------------------------------------- Education and Civic Organizations 12% - -------------------------------------------------- Housing/Multifamily 11% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.068 Jan 0.068 Feb 0.068 Mar 0.071 Apr 0.071 May 0.071 Jun 0.072 Jul 0.072 Aug 0.072 Sep 0.072 Oct 0.072 Nov 0.072 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 14.79 14.74 14.65 14.98 14.95 14.8 14.54 14.68 14.5 14.6 14.41 14.6 14.66 14.74 14.85 14.96 15 14.97 14.95 15.17 15.18 15.31 15.35 15.6 15.72 15.7 15.47 15.7 15.9 15.9 15.27 14.56 14.25 14.31 14.25 14.3 14.23 14.22 14.27 14.46 14.67 14.95 14.97 14.87 14.89 14.81 14.87 11/30/03 14.89 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 31.5%. 8 Nuveen Maryland Dividend Advantage Municipal Fund 3 Performance OVERVIEW As of November 30, 2003 NWI Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 41% AA 40% A 9% BBB 8% NR 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $13.51 - -------------------------------------------------- Common Share Net Asset Value $14.40 - -------------------------------------------------- Premium/(Discount) to NAV (6.18%) - -------------------------------------------------- Market Yield 5.82% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 8.08% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.50% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $77,156 - -------------------------------------------------- Average Effective Maturity (Years) 21.68 - -------------------------------------------------- Leverage-Adjusted Duration 11.41 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year -0.13% 11.66% - -------------------------------------------------- Since Inception -3.70% 5.66% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 25% - -------------------------------------------------- Tax Obligation/Limited 23% - -------------------------------------------------- Housing/Multifamily 14% - -------------------------------------------------- Education and Civic Organizations 11% - -------------------------------------------------- Healthcare 10% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0655 Jan 0.0655 Feb 0.0655 Mar 0.0655 Apr 0.0655 May 0.0655 Jun 0.0655 Jul 0.0655 Aug 0.0655 Sep 0.0655 Oct 0.0655 Nov 0.0655 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 14.4 14.31 13.9 13.9 14.13 14.15 14.31 14.43 14.66 14.8 14.7 14.45 14.4 14.37 14.19 14 14 14.09 13.75 14.27 14.49 14.5 14.65 14.9 14.84 15.05 14.81 14.96 15.05 15.12 14.57 13.8 13.7 13.67 13.19 13.42 13.55 13.38 13.29 13.32 13.21 13.08 13.29 13.31 13.46 13.25 13.31 11/30/03 13.51 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 31.5%. 9 Nuveen Virginia Premium Income Municipal Fund Performance OVERVIEW As of November 30, 2003 NPV Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 53% AA 28% A 8% BBB 5% NR 4% BB or Lower 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $17.12 - -------------------------------------------------- Common Share Net Asset Value $15.47 - -------------------------------------------------- Premium/(Discount) to NAV 10.67% - -------------------------------------------------- Market Yield 5.33% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.40% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 7.84% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $136,450 - -------------------------------------------------- Average Effective Maturity (Years) 19.26 - -------------------------------------------------- Leverage-Adjusted Duration 8.86 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 11.75% 10.22% - -------------------------------------------------- 5-Year 6.34% 6.30% - -------------------------------------------------- 10-Year 7.77% 6.86% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/Limited 20% - -------------------------------------------------- Healthcare 17% - -------------------------------------------------- Water and Sewer 13% - -------------------------------------------------- Tax Obligation/General 10% - -------------------------------------------------- Transportation 9% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.076 Apr 0.076 May 0.076 Jun 0.076 Jul 0.076 Aug 0.076 Sep 0.076 Oct 0.076 Nov 0.076 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 16.5 16.28 16.85 16.9 17.5 17.5 17.27 17.32 17.36 17.18 16.92 16.95 17.36 17.24 16.65 16.44 16.32 16.35 16.63 16.5 16.3 16.57 16.68 17.67 18.05 18.07 18.17 17.57 17.78 17.89 17.8 16.95 16.83 15.99 16.62 16.48 16.6 16.9 16.75 16.5 16.92 16.71 16.67 16.92 17.24 17.45 17.6 11/30/03 17.12 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 32%. 10 Nuveen Virginia Dividend Advantage Municipal Fund Performance OVERVIEW As of November 30, 2003 NGB Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 51% AA 24% A 10% BBB 8% NR 5% BB or Lower 2% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $16.55 - -------------------------------------------------- Common Share Net Asset Value $14.97 - -------------------------------------------------- Premium/(Discount) to NAV 10.55% - -------------------------------------------------- Market Yield 5.69% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.90% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 8.37% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $46,697 - -------------------------------------------------- Average Effective Maturity (Years) 20.02 - -------------------------------------------------- Leverage-Adjusted Duration 9.90 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 12.07% 10.00% - -------------------------------------------------- Since Inception 9.23% 7.59% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/General 19% - -------------------------------------------------- Transportation 16% - -------------------------------------------------- Healthcare 13% - -------------------------------------------------- Water and Sewer 10% - -------------------------------------------------- Tax Obligation/Limited 10% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE Dec 0.0715 Jan 0.0715 Feb 0.0715 Mar 0.0745 Apr 0.0745 May 0.0745 Jun 0.0755 Jul 0.0755 Aug 0.0755 Sep 0.0785 Oct 0.0785 Nov 0.0785 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 15.71 15.6 15.72 16.07 16 15.85 15.79 15.55 15.26 15.53 15.23 15.38 15.5 15.47 15.51 15.39 15.57 15.59 15.96 15.92 15.98 16.26 16.33 17.35 17.56 17.5 17.5 17.24 17.25 17.1 16.87 15.79 16.38 16.35 16.02 16.1 16.19 16.02 16.25 15.9 16.56 16.75 16.6 16.8 17.15 17.15 16.25 11/30/03 16.55 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 32%. 11 Nuveen Virginia Dividend Advantage Municipal Fund 2 Performance OVERVIEW As of November 30, 2003 NNB Pie Chart: CREDIT QUALITY AAA/U.S. Guaranteed 48% AA 34% A 7% BBB 8% NR 3% PORTFOLIO STATISTICS - -------------------------------------------------- Share Price $16.49 - -------------------------------------------------- Common Share Net Asset Value $15.39 - -------------------------------------------------- Premium/(Discount) to NAV 7.15% - -------------------------------------------------- Market Yield 5.42% - -------------------------------------------------- Taxable-Equivalent Yield (Federal Income Tax Rate)1 7.53% - -------------------------------------------------- Taxable-Equivalent Yield (Federal and State Income Tax Rate)1 7.97% - -------------------------------------------------- Net Assets Applicable to Common Shares ($000) $87,607 - -------------------------------------------------- Average Effective Maturity (Years) 20.92 - -------------------------------------------------- Leverage-Adjusted Duration 10.76 - -------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01) - -------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------- 1-Year 14.55% 10.99% - -------------------------------------------------- Since Inception 10.39% 9.30% - -------------------------------------------------- TOP FIVE SECTORS (as a % of total investments) - -------------------------------------------------- Tax Obligation/Limited 21% - -------------------------------------------------- Tax Obligation/General 19% - -------------------------------------------------- Water and Sewer 16% - -------------------------------------------------- Healthcare 14% - -------------------------------------------------- Utilities 7% - -------------------------------------------------- Bar Chart: 2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Dec 0.069 Jan 0.069 Feb 0.069 Mar 0.072 Apr 0.072 May 0.072 Jun 0.073 Jul 0.073 Aug 0.073 Sep 0.0745 Oct 0.0745 Nov 0.0745 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 12/1/02 15.59 15.27 15.45 15.51 15.65 15.42 14.98 15.1 15.03 15 14.8 15.05 15.22 14.97 15.45 15.25 15.15 15.4 15.61 15.58 15.61 16.05 16.05 16.14 16.2 16.76 16.5 16.6 16.8 16.65 16.4 15.1 15.49 15.5 15.52 15.5 15.42 15.61 15.99 15.7 16 15.97 16.12 16.23 16.25 16.53 16.18 11/30/03 16.49 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Nuveen Fund on an after-tax basis. With respect to investments that generate qualified dividend income that is taxable at a maximum rate of 15%, the taxable-equivalent yield is lower. The taxable-equivalent yield is calculated using the current market yield and a federal income tax rate of 28%. The rate shown for federal and state highlights the added value of owning shares that are also exempt from state income taxes. It is based on a combined federal and state income tax rate of 32%. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2002 of $0.0257 per share. 12 Shareholder MEETING REPORT The Shareholder Meeting was held October 22, 2003 in Chicago at Nuveen's headquarters.
NMY NFM NZR - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== William E. Bennett For 10,366,976 -- 4,003,938 -- 4,017,714 -- Withhold 77,132 -- 15,415 -- 8,862 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Robert P. Bremner For 10,366,968 -- 3,994,205 -- 4,018,714 -- Withhold 77,140 -- 25,148 -- 7,862 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Lawrence H. Brown For 10,367,185 -- 4,003,605 -- 4,019,214 -- Withhold 76,923 -- 15,748 -- 7,362 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Jack B. Evans For 10,367,168 -- 4,003,938 -- 4,019,214 -- Withhold 76,940 -- 15,415 -- 7,362 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Anne E. Impellizzeri For 10,366,196 -- 3,993,405 -- 4,018,714 -- Withhold 77,912 -- 25,948 -- 7,862 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== William L. Kissick For 10,365,374 -- 4,003,138 -- 4,018,714 -- Withhold 78,734 -- 16,215 -- 7,862 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Thomas E. Leafstrand For 10,366,199 -- 4,003,138 -- 4,019,214 -- Withhold 77,909 -- 16,215 -- 7,362 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Peter R. Sawers For 10,366,216 -- 4,003,205 -- 4,019,214 -- Withhold 77,892 -- 16,148 -- 7,362 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== William J. Schneider For -- 3,035 -- 1,213 -- 1,166 Withhold -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,035 -- 1,213 -- 1,166 ====================================================================================================================================
13
Shareholder MEETING REPORT (continued) NMY NFM NZR - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Timothy R. Schwertfeger For -- 3,035 -- 1,213 -- 1,166 Withhold -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 3,035 -- 1,213 -- 1,166 ==================================================================================================================================== Judith M. Stockdale For 10,366,533 -- 3,994,205 -- 4,019,214 -- Withhold 77,575 -- 25,148 -- 7,362 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ==================================================================================================================================== Sheila W. Wellington For 10,365,581 -- 4,003,138 -- 4,019,214 -- Withhold 78,527 -- 16,215 -- 7,362 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 10,444,108 -- 4,019,353 -- 4,026,576 -- ====================================================================================================================================
14 NWI NPV NGB - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== William E. Bennett For 5,260,990 -- 7,999,826 -- 3,007,834 -- Withhold 2,608 -- 43,311 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Robert P. Bremner For 5,260,990 -- 7,995,226 -- 3,007,834 -- Withhold 2,608 -- 47,911 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Lawrence H. Brown For 5,260,680 -- 8,003,826 -- 3,006,033 -- Withhold 2,918 -- 39,311 -- 1,801 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Jack B. Evans For 5,260,990 -- 8,005,426 -- 3,007,834 -- Withhold 2,608 -- 37,711 -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Anne E. Impellizzeri For 5,260,680 -- 7,993,626 -- 3,006,033 -- Withhold 2,918 -- 49,511 -- 1,801 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== William L. Kissick For 5,260,680 -- 7,999,726 -- 3,006,033 -- Withhold 2,918 -- 43,411 -- 1,801 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Thomas E. Leafstrand For 5,260,680 -- 8,003,826 -- 3,006,033 -- Withhold 2,918 -- 39,311 -- 1,801 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Peter R. Sawers For 5,260,680 -- 8,002,226 -- 3,006,033 -- Withhold 2,918 -- 40,911 -- 1,801 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== William J. Schneider For -- 1,532 -- 2,201 -- 943 Withhold -- -- -- 3 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,532 -- 2,204 -- 943 ====================================================================================================================================
15
Shareholder MEETING REPORT (continued) NWI NPV NGB - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,532 -- 2,201 -- 943 Withhold -- -- -- 3 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,532 -- 2,204 -- 943 ==================================================================================================================================== Judith M. Stockdale For 5,260,990 -- 8,004,426 -- 3,007,184 -- Withhold 2,608 -- 38,711 -- 650 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ==================================================================================================================================== Sheila W. Wellington For 5,260,680 -- 8,002,826 -- 3,005,383 -- Withhold 2,918 -- 40,311 -- 2,451 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,263,598 -- 8,043,137 -- 3,007,834 -- ====================================================================================================================================
16
NNB - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class ==================================================================================================================================== William E. Bennett For 5,471,338 -- Withhold 8,631 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Robert P. Bremner For 5,471,338 -- Withhold 8,631 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Lawrence H. Brown For 5,469,880 -- Withhold 10,089 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Jack B. Evans For 5,471,338 -- Withhold 8,631 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Anne E. Impellizzeri For 5,469,880 -- Withhold 10,089 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== William L. Kissick For 5,469,880 -- Withhold 10,089 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Thomas E. Leafstrand For 5,469,880 -- Withhold 10,089 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Peter R. Sawers For 5,469,880 -- Withhold 10,089 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== William J. Schneider For -- 1,530 Withhold -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,530 ====================================================================================================================================
17
Shareholder MEETING REPORT (continued) NNB - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and MuniPreferred MuniPreferred shares voting shares voting together together as a class as a class ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,530 Withhold -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,530 ==================================================================================================================================== Judith M. Stockdale For 5,471,338 -- Withhold 8,631 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ==================================================================================================================================== Sheila W. Wellington For 5,469,880 -- Withhold 10,089 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 5,479,969 -- ====================================================================================================================================
18 Nuveen Maryland Premium Income Municipal Fund (NMY) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.0% $ 3,320 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 3,169,040 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.9% 1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,044,390 Housing Revenue Bonds, Collegiate Housing Foundation - Salisbury Project, Series 1999A, 6.000%, 6/01/19 2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 2,291,827 Housing Revenue Bonds, Collegiate Housing Foundation - University Courtyard Project, Series 1999A, 5.750%, 6/01/24 1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,009,320 Housing Revenue Bonds, University of Maryland at Baltimore, Series 2003A, 5.625%, 10/01/23 Maryland Economic Development Corporation, Utility Infrastructure Revenue Bonds, University of Maryland, College Park Project, Series 2001: 1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,114,150 910 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,013,877 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Bullis School Issue, Series 2000: 750 5.250%, 7/01/25 - FSA Insured 1/11 at 101.00 AAA 791,842 500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 525,400 Maryland Health and Higher Educational Facilities Authority, Refunding Revenue Bonds, Johns Hopkins University Issue, Series 1997: 1,000 5.625%, 7/01/17 7/07 at 102.00 AA 1,121,290 1,500 5.625%, 7/01/27 7/07 at 102.00 AA 1,645,440 1,400 Maryland Health and Higher Educational Facilities 6/11 at 100.00 Baa1 1,438,430 Authority, Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.625%, 6/01/36 9,445 Morgan State University, Maryland, Academic Fees and No Opt. Call AAA 11,498,249 Auxiliary Facilities Fees, Revenue Refunding Bonds, Series 1993, 6.100%, 7/01/20 - MBIA Insured University of Maryland System, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A: 5,645 5.000%, 4/01/15 4/13 at 100.00 AA+ 6,175,517 2,680 5.000%, 4/01/19 4/13 at 100.00 AA+ 2,849,430 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 24.4% Gaithersburg, Maryland, Hospital Facilities Refunding and Improvement Revenue Bonds, Shady Grove Adventist Hospital, Series 1995: 2,550 6.500%, 9/01/12 - FSA Insured No Opt. Call AAA 3,110,108 3,015 5.500%, 9/01/15 - FSA Insured 9/05 at 102.00 AAA 3,262,803 2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,124,820 Revenue Bonds, Kaiser Permanente, Series 1998A, 5.375%, 7/01/15 750 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 Baa1 825,428 Revenue Bonds, University of Maryland Medical System Issue, Series 2000, 6.750%, 7/01/30 Maryland Health and Higher Educational Facilities Authority, Revenue Bonds, Johns Hopkins Medicine, Howard County General Hospital Acquisition Issue, Series 1998: 1,000 5.000%, 7/01/19 - MBIA Insured 7/08 at 101.00 AAA 1,047,430 1,250 5.000%, 7/01/29 - MBIA Insured 7/08 at 101.00 AAA 1,266,663 1,500 Maryland Health and Higher Educational Facilities 1/08 at 101.00 Aaa 1,524,300 Authority, Revenue Bonds Upper Chesapeake Hospitals Issue, Series 1998A, 5.125%, 1/01/38 - FSA Insured 1,500 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 1,501,815 Authority, Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,500 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A 1,617,225 Authority, Revenue Bonds, University of Maryland Medical System, Series 2002, 6.000%, 7/01/22 19 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 4,500 Maryland Health and Higher Educational Facilities 7/12 at 100.00 Baa1 $ 4,684,635 Authority, Revenue Bonds, Carroll County General Hospital, Series 2002, 5.800%, 7/01/32 3,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 3,015,390 Authority, Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 3,250 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 3,352,505 Authority, Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 3,800 Maryland Health and Higher Educational Facilities 7/13 at 100.00 Baa2 3,843,548 Authority, Revenue Bonds, Kennedy Krieger Issue, Series 2003, 5.500%, 7/01/33 Prince George's County, Maryland, Project and Refunding Revenue Bonds, Dimensions Health Corporation Issue, Series 1994: 825 5.000%, 7/01/05 7/04 at 102.00 B3 699,270 3,080 5.375%, 7/01/14 7/04 at 102.00 B3 2,118,670 6,000 5.300%, 7/01/24 7/04 at 102.00 B3 4,056,840 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 20.3% 1,795 Charles County, Maryland, FHA-Insured Mortgage Revenue 5/05 at 102.00 AAA 1,864,933 Refunding Bonds, Holly Station IV Townhouses Project, Series 1995A, 6.450%, 5/01/26 Howard County, Maryland, FHA-Insured Mortgage Revenue Refunding Bonds, Normandy Woods III Apartments Project, Series 1996A: 700 6.000%, 7/01/17 7/06 at 102.00 AAA 736,358 2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,090,580 2,500 Community Development Administration, Maryland 1/09 at 101.00 Aa2 2,556,075 Department of Housing and Community Development, Housing Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax) 880 Community Development Administration, Maryland 1/10 at 100.00 Aa2 935,211 Department of Housing and Community Development, Housing Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax) 1,450 Community Development Administration, Maryland, 2/11 at 101.00 Aaa 1,552,443 Department of Housing and Community Development, Multifamily Development Revenue Bonds, Edgewater Village Apartments Project, Series 2000B, 5.800%, 8/01/20 Minimum Tax) 2,000 Housing Opportunities Commission of Montgomery County, 7/05 at 102.00 Aa2 2,084,600 Maryland, Multifamily Housing Revenue Bonds, Series 1995A, 5.900%, 7/01/15 1,500 Housing Opportunities Commission of Montgomery 7/06 at 102.00 Aaa 1,565,580 County, Maryland, Multifamily Housing Revenue Bonds, Series 1996B, 5.900%, 7/01/26 3,830 Housing Opportunities Commission of Montgomery County, 7/08 at 101.00 Aaa 3,915,294 Maryland, Multifamily Housing Development Bonds, Series 1998A, 5.200%, 7/01/30 2,000 Housing Opportunities Commission of Montgomery 7/10 at 100.00 Aaa 2,110,540 County, Maryland, Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30 1,000 Housing Authority of Prince George's County, Maryland, 1/04 at 101.00 AAA 1,017,710 Mortgage Revenue Refunding Bonds, GNMA Collateralized - Stevenson Apartments Project, Series 1993A, 6.350%, 7/20/20 Housing Authority of Prince George's County, Maryland, Mortgage Revenue Refunding Bonds, Cherry Hill Apartments Project, Series 1993A: 1,090 5.900%, 9/20/10 - FSA Insured 3/04 at 102.00 AAA 1,113,315 1,930 6.000%, 9/20/15 - FSA Insured 3/04 at 102.00 AAA 1,970,858 1,500 Housing Authority of Prince George's County, Maryland, 12/04 at 102.00 AAA 1,556,580 Mortgage Revenue Refunding Bonds, GNMA Collateralized - Riverview Terrace Apartments Project, Series 1995A, 6.700%, 6/20/20 Housing Authority of Prince George's County, Maryland, Mortgage Revenue Refunding Bonds, GNMA Collateralized - Overlook Apartments Project, Series 1995A: 2,000 5.700%, 12/20/15 12/05 at 102.00 AAA 2,092,660 1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,739,222 1,000 Housing Authority of Prince George's County, Maryland, 5/04 at 100.00 AAA 1,000,850 Mortgage Revenue Refunding Bonds, GNMA Collateralized, Foxglenn Apartments Project, Series 1998A, 5.450%, 11/20/14 (Alternative Minimum Tax) 540 Housing Authority of Prince George's County, Maryland, 9/09 at 102.00 AAA 574,852 Mortgage Revenue Bonds, GNMA Collateralized - University Landing at Langley Apartments Project, Series 1999, 6.100%, 3/20/41 (Alternative Minimum Tax) 20 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 1,000 City of Salisbury, Maryland, Mortgage Revenue Refunding 12/04 at 102.00 AAA $ 1,025,390 Bonds, FHA-Insured Mortgage Loan - College Lane Apartments Project, Series 1995A, 6.600%, 12/01/26 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.3% 1,000 Community Development Administration, Department 4/04 at 102.00 Aa2 1,025,770 of Housing and Community Development, State of Maryland, Single Family Program Bonds, Fourth Series 1994, 6.450%, 4/01/14 920 Community Development Administration, Department of 4/04 at 102.00 Aa2 942,696 Housing and Community Development, State of Maryland, Single Family Program Bonds, Fifth Series 1994, 6.750%, 4/01/26 (Alternative Minimum Tax) 115 Community Development Administration, Maryland 9/09 at 100.00 Aa2 116,536 Department of Housing and Community Development, Residential Revenue Bonds, Series 1999H, 6.250%, 3/01/31 (Alternative Minimum Tax) 1,145 Community Development Administration, Maryland 9/09 at 100.00 Aa2 1,195,414 Department of Housing and Community Development, Residential Revenue Bonds, Series 2000B, 6.150%, 9/01/32 (Alternative Minimum Tax) 680 Community Development Administration, Maryland 4/06 at 102.00 Aa2 710,804 Department of Housing and Community Development, Single Family Program Bonds, Sixth Series 1996, 6.200%, 4/01/22 (Alternative Minimum Tax) 1,325 Housing Authority of Prince George's County, Maryland, 8/07 at 102.00 AAA 1,396,232 FHLMC/FNMA/GNMA Collateralized, Single Family Mortgage Revenue Bonds, Series 1997, 5.625%, 8/01/17 (Alternative Minimum Tax) 230 Housing Authority of Prince George's County, Maryland, 8/10 at 100.00 AAA 242,275 FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax) 1,000 Puerto Rico Housing Finance Authority, Home Mortgage 6/13 at 100.00 AAA 1,006,810 Revenue Bonds, Mortgage-Backed Securities Program, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.8% 1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/09 at 101.00 AA 1,053,710 EMA Obligated Group, Series 1999A, 5.625%, 1/01/25 - RAAI Insured 1,790 Maryland Economic Development Corporation, Revenue 4/11 at 102.00 N/R 1,805,752 Bonds, Health and Mental Hygiene Providers Facilities Acquisition Program, Series 1996A, 7.625%, 4/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 22.9% Baltimore County, Maryland, Metropolitan District General Obligation Bonds, 67th Issue: 2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,588,975 3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,616,375 2,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 2,692,025 Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 1,000 Baltimore, Maryland, General Obligation Consolidated No Opt. Call A+ 1,206,640 Public Improvement Bonds, Series 1989B, 7.150%, 10/15/08 Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: 1,000 5.000%, 11/01/21 11/12 at 101.00 AA 1,058,620 1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,052,530 3,000 Frederick County, Maryland, General Obligation Public 7/09 at 101.00 AA 3,295,890 Facilities Bonds, Series 1999, 5.250%, 7/01/18 500 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 535,605 Villages of Lake Linganore Community Development Authority, Series 2001A, 5.700%, 7/01/29 - RAAI Insured 575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 628,860 Refunding Bonds, Series 2002A, 5.250%, 8/15/18 Howard County, Maryland, Consolidated Public Improvement Refunding Bonds, Series 2003A: 1,720 5.000%, 8/15/17 8/12 at 100.00 AAA 1,863,173 1,000 5.000%, 8/15/22 8/12 at 100.00 AAA 1,048,510 Montgomery County, Maryland, General Obligation Refunding Bonds, Consolidated Public Improvement, Series 2001: 1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,975,663 2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,218,900 925 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 981,906 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,084,700 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 - FGIC Insured 21 Nuveen Maryland Premium Income Municipal Fund (NMY) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 3,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA $ 2,955,570 Consolidated Public Improvement Bonds, Series 2002, 4.100%, 9/15/19 5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 6,213,425 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/18 460 Wicomico County, Maryland, General Obligation Public 12/09 at 101.00 AAA 529,087 Improvement Bonds, Series 1999, 5.750%, 12/01/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.9% Baltimore Board of School Commissioners, Maryland, City Public School System Revenue Bonds, Series 2003A: 1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ 1,632,135 1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,072,570 1,870 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 2,045,163 Bonds, Series 2002A, 5.250%, 8/15/18 1,465 Community Development Administration, Maryland 6/08 at 101.00 Aaa 1,512,539 Department of Housing and Community Development, Infrastructure Financing Bonds, Series 1998B, 5.200%, 6/01/28 - MBIA Insured 4,250 Department of Transportation, State of Maryland, County No Opt. Call AA 4,924,007 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,875 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,049,769 Revenue Bonds, Maryland Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 Maryland Department of Transportation, Project Certificates of Participation, Mass Transit Administration Project, Series 2000: 880 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 940,975 930 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 988,860 1,700 Maryland Stadium Authority, Montgomery County 6/13 at 100.00 AA+ 1,754,009 Conference Center Facilities Lease Revenue Bonds, Series 2003, 5.000%, 6/15/24 4,455 Maryland Stadium Authority, Sports Facilities Lease 3/06 at 101.00 AAA 4,837,595 Revenue Bonds, Series 1996, 5.750%, 3/01/18 - AMBAC Insured 1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,046,900 Metrorail Garage Projects, Series 2002, 5.000%, 6/01/21 675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 712,240 West Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 635 New Baltimore City Board of School Commissioners, 11/10 at 100.00 AA+ 699,840 Maryland, School System Revenue Bonds, Series2000, 5.125%, 11/01/15 1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100.00 A 1,065,240 Revenue Bonds, Series 1996Y, 5.500%, 7/01/36 1,500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,739,160 Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,265,921 5.250%, 8/01/21 - FSA Insured 2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,213,680 Taxes Loan Bonds, Series 1999A, 6.500%, 10/01/24 Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, General Construction Bonds of 2000: 1,085 5.250%, 6/01/20 6/10 at 100.00 AAA 1,189,692 1,205 5.250%, 6/01/21 6/10 at 100.00 AAA 1,313,607 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 3.8% 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,199,634 System Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured 2,075 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 1,371,036 Bonds, American Airlines, Inc. Project, Series 1996A, 6.250%, 6/01/26 (Alternative Minimum Tax) 3,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 3,351,600 of Columbia, Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured 22 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 10.2% $ 2,000 City of Baltimore, Maryland, Water Projects and Refunding 7/08 at 101.00 AAA $ 2,088,340 Revenue Bonds, Series 1998A, 5.000%, 7/01/28 - FGIC Insured 2,000 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 2,109,760 Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 1,500 Baltimore, Maryland, Project and Revenue Refunding 7/10 at 100.00 AAA 1,745,070 Bonds, Wastewater Projects, Series 2000A, 5.625%, 7/01/30 (Pre-refunded to 7/01/10) - FSA Insured 940 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,057,096 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 1,875 Maryland Health and Higher Educational Facilities 1/04 at 102.00 AAA 1,919,963 Authority, Revenue Bonds, Good Samaritan Hospital Issue, Series 1993, 5.750%, 7/01/19 - AMBAC Insured 3,125 Maryland Health and Higher Educational Facilities 1/04 at 102.00 Aaa 3,166,844 Authority, Revenue Bonds, Howard County General Hospital Issue, Series 1993, 5.500%, 7/01/25 2,560 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 2,685,542 Revenue Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/27 - AMBAC Insured 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,100,040 Obligation Bonds, Series 2000A, 5.500%, 10/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 13.5% 6,000 Anne Arundel County, Maryland, Pollution Control Revenue 4/04 at 102.00 A2 6,146,040 Refunding Bonds, Baltimore Gas and Electric Company Project, Series 1994, 6.000%, 4/01/24 6,500 Calvert County, Maryland, Pollution Control Revenue 7/04 at 102.00 A2 6,684,661 Refunding Bonds, Baltimore Gas and Electric Company Project, Series 1993, 5.550%, 7/15/14 3,000 Maryland Energy Financing Administration Limited 9/05 at 102.00 N/R 3,049,140 Obligation Cogeneration Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 5,000 Prince George's County, Maryland, Pollution Control 1/04 at 101.00 A- 5,063,350 Revenue Refunding Bonds, Potomac Electric Project, Series 1993, 6.375%, 1/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.7% 1,000 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 1,054,880 Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 218,470 Total Long-Term Investments (cost $220,007,927) - 146.7% 228,082,054 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.3% 500 Puerto Rico Government Development Bank, Adjustable A-1 500,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 1.010%, 12/01/15 - MBIA Insured+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 500 Total Short-Term Investments (cost $500,000) 500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $220,507,927) - 147.0% 228,582,054 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.9% 5,973,244 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.9)% (79,100,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $155,455,298 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 23
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.5% $ 1,660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,584,520 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.1% Frederick County, Maryland, Educational Facilities Revenue Bonds, Mount St. Mary's College, Series 2001A: 465 5.700%, 9/01/20 3/10 at 101.00 BBB 484,428 1,000 5.750%, 9/01/25 3/10 at 101.00 BBB 1,028,250 500 5.800%, 9/01/30 3/10 at 101.00 BBB 514,220 1,800 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 1,912,518 Housing Revenue Bonds, University Village at Sheppard Pratt, Series 2001, 6.000%, 7/01/33 - ACA Insured 1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,062,660 Infrastructure Revenue Bonds, University of Maryland, College Park Project, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 1,500 Maryland Health and Higher Educational Facilities 7/08 at 102.00 BBB- 1,528,050 Authority, Educational Facilities Leasehold Mortgage Revenue Bonds, McLean School Issue, 6.000%, 7/01/31 625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 638,669 Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System Project, Series 1999: 215 5.375%, 2/01/19 2/09 at 101.00 BBB 222,323 410 5.375%, 2/01/29 2/09 at 101.00 BBB 414,588 University of Maryland System, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A: 1,000 5.000%, 4/01/15 4/13 at 100.00 AA+ 1,093,980 500 5.000%, 4/01/19 4/13 at 100.00 AA+ 531,610 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 22.0% 2,725 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,895,067 Revenue Bonds, Kaiser Permanente, Series 1998A, 5.375%, 7/01/15 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 1,001,340 Revenue Bonds, Calvert Memorial Hospital Issue, Series 1998, 5.000%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,024,150 Revenue Bonds, Anne Arundel Medical Center Issue, Series 1998, 5.125%, 7/01/28 - FSA Insured 570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 577,353 Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998, 5.100%, 7/01/22 1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,278,488 Revenue Bonds, The Johns Hopkins Hospital Issue, Series 2001, 5.000%, 5/15/21 1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,014,120 Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 750 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 750,908 Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 2,020,480 Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,063,000 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,005,130 Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,011,460 Revenue Bonds, Kennedy Krieger Issue, Series 2003, 5.500%, 7/01/33 85 Prince George's County, Maryland, Project and Refunding 7/04 at 102.00 B3 57,472 Revenue Bonds, Dimensions Health Corporation Issue, Series 1994, 5.300%, 7/01/24 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 15.6% $ 750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA $ 765,383 Refunding Bonds, Cross Creek Apartments Project, Series 1998A, 5.250%, 10/20/33 2,000 Community Development Administration, Maryland 7/08 at 101.00 Aa2 2,068,060 Department of Housing and Community Development, Housing Revenue Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax) 850 Community Development Administration, Maryland 5/11 at 100.00 Aa2 871,947 Department of Housing and Community Development, Multifamily Housing Revenue Bonds, Insured Mortgage Loan, Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax) 1,000 Community Development Administration, Maryland 12/11 at 100.00 Aaa 1,035,920 Department of Housing and Community Development, Multifamily Housing Revenue Bonds, Princess Anne Apartments Project, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 750 Housing Opportunities Commission of Montgomery 7/08 at 101.00 Aaa 766,718 County, Maryland, Multifamily Housing Development Bonds, Series 1998A, 5.250%, 7/01/29 (Alternative Minimum Tax) 2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,119,220 Maryland, Multifamily Housing Development Bonds, Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax) 2,000 Housing Opportunities Commission of Montgomery County, 7/11 at 100.00 Aaa 2,074,940 Maryland, Multifamily Housing Development Bonds, Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 18.2% 195 Community Development Administration, Maryland 9/09 at 100.00 Aa2 207,176 Department of Housing and Community Development, Residential Revenue Bonds, Series 1997E, 5.700%, 9/01/17 3,000 Community Development Administration, Maryland 9/09 at 100.00 Aa2 3,150,600 Department of Housing and Community Development, Residential Revenue Bonds, Series 2000G, 5.950%, 9/01/29 (Alternative Minimum Tax) 1,145 Community Development Administration, Maryland 9/10 at 100.00 Aa2 1,200,636 Department of Housing and Community Development, Residential Revenue Bonds, Series H, 5.800%, 9/01/32 (Alternative Minimum Tax) 1,040 Community Development Administration, Department 10/10 at 100.00 Aa2 1,079,260 of Housing and Community Development, State of Maryland, Single Family Program Bonds, First Series 2001, 5.000%, 4/01/17 700 Community Development Administration, Department 9/10 at 100.00 Aa2 716,450 of Housing and Community Development, State of Maryland, Residential Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax) 1,000 Community Development Administration, Department 3/11 at 100.00 Aa2 1,041,740 of Housing and Community Development, State of Maryland, Residential Revenue Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative Minimum Tax) 2,510 Housing Opportunities Commission of Montgomery 7/07 at 102.00 Aa2 2,683,767 County, Maryland, Single Family Mortgage Revenue Bonds, Series 1997A, 5.750%, 7/01/13 1,205 Housing Authority of Prince George's County, Maryland, 8/07 at 102.00 AAA 1,254,513 FHLMC/FNMA/GNMA Collateralized, Single Family Mortgage Revenue Bonds, Series 1997, 5.750%, 8/01/30 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.6% 1,000 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,007,900 Recovery Revenue Bonds, Baltimore RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.2% 1,000 Maryland Health and Higher Educational Facilities 4/11 at 101.00 N/R 820,000 Authority, Revenue Bonds, Collington Episcopal Life, Series 2001A, 6.750%, 4/01/23 540 Maryland Health and Higher Educational Facilities 4/13 at 101.00 N/R 537,829 Authority, Revenue Bonds, Mercy Ridge Retirement Community, Series 2003A, 6.000%, 4/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.4% Anne Arundel County, Maryland, General Obligation Bonds, Various Purpose, Series 2001: 580 4.800%, 2/15/18 2/11 at 101.00 AA+ 609,986 500 5.000%, 2/15/28 2/11 at 101.00 AA+ 514,430 3,500 Baltimore County, Maryland, Metropolitan District General 6/11 at 101.00 AAA 3,614,730 Obligation Bonds, 67th Issue, 5.000%, 6/01/27 1,500 Baltimore County, Maryland, General Obligation 8/12 at 100.00 AAA 1,615,215 Consolidated Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,052,530 Facilities Bonds, Series 2002, 5.000%, 11/01/22 25 Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Howard County, Maryland, Consolidated Public Improvement Bonds, Series 2001A: $ 1,220 4.750%, 2/15/20 2/09 at 101.00 AAA $ 1,255,953 1,360 4.750%, 2/15/21 2/09 at 101.00 AAA 1,394,095 500 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 548,990 Refunding Bonds, Series 2003A, 5.000%, 8/15/15 430 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 456,454 Series 2000A, 6.000%, 6/01/20 - ACA Insured 740 Mayor and City Council of Ocean City, Maryland, General 3/11 at 101.00 AAA 776,637 Obligation Municipal Purpose Bonds, Series 2001, 4.875%, 3/01/19 - FGIC Insured 1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,627,050 Consolidated Public Improvement Bonds, Series 2001, 5.250%, 12/01/20 - FGIC Insured 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,085,310 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.6% 815 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 820,909 Revenue Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 500 Baltimore Board of School Commissioners, Maryland, 5/13 at 100.00 AA+ 536,285 City Public School System Revenue Bonds, Series 2003A, 5.000%, 5/01/18 1,500 Department of Transportation, State of Maryland, County No Opt. Call AA 1,737,885 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,535,960 Revenue Bonds, Maryland Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 811,608 Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 1,290 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,434,454 Taxes Loan Bonds, Series 1999A, 6.375%, 10/01/19 Washington Suburban Sanitary District, Montgomery and Prince George's Counties, Maryland, General Construction Bonds of 2001: 895 5.000%, 6/01/22 6/11 at 100.00 AAA 933,378 935 5.000%, 6/01/23 6/11 at 100.00 AAA 969,632 985 5.000%, 6/01/24 6/11 at 100.00 AAA 1,017,032 1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,065,336 1,290 Washington Suburban Sanitary District, Montgomery 6/11 at 100.00 AAA 1,338,220 and Prince George's Counties, Maryland, Water Supply Bonds of 2001, 4.750%, 6/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 4.1% Maryland Health and Higher Educational Facilities Authority, Parking Revenue Bonds, The Johns Hopkins Medical Institutions, Issue of 2001: 650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 662,552 750 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 760,373 1,000 Washington Metropolitan Area Transit Authority, No Opt. Call AAA 1,117,200 District of Columbia, Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.0% 1,015 City of Baltimore, Maryland, Water Projects and Refunding 7/08 at 101.00 AAA 1,059,833 Revenue Bonds, Series 1998A, 5.000%, 7/01/28 - FGIC Insured 670 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 706,770 Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured 2,350 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,642,739 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 1,000 Maryland Transportation Authority, Transportation Facilities No Opt. Call AAA 1,212,420 Project Revenue Refunding Bonds, First Series, 6.800%, 7/01/16 Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,512,727 1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,854,054 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.1% $ 2,500 Maryland Energy Financing Administration, Limited 9/05 at 102.00 N/R $ 2,540,950 Obligation Cogeneration Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 1,800 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,877,868 Refunding Bonds, Series Z, 5.250%, 7/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 0.6% 330 Baltimore, Maryland, Water Projects and Revenue Refunding No Opt. Call AAA 348,107 Bonds, Series 1994A, 5.000%, 7/01/24 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 87,985 Total Long-Term Investments (cost $89,064,939) - 148.0% 92,164,515 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.4% 2,110,232 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.4)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $62,274,747 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 27
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.4% $ 830 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 792,260 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 800 Virgin Islands Tobacco Settlement Financing Corporation, 5/11 at 100.00 Baa2 709,088 Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.5% 1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,132,945 Revenue Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,009,320 Housing Revenue Bonds, University of Maryland at Baltimore, Series 2003A, 5.625%, 10/01/23 250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 254,675 Educational Facilities Leasehold Mortgage Revenue Bonds, McLean School Issue, 6.000%, 7/01/31 415 Maryland Health and Higher Educational Facilities Authority, 1/11 at 101.00 AAA 436,082 Revenue Bonds, Bullis School Issue, Series 2000, 5.250%, 7/01/30 - FSA Insured 1,000 Maryland Health and Higher Educational Facilities 7/08 at 102.00 AA 1,103,380 Authority, Refunding Revenue Bonds, The Johns Hopkins University Issue, Series 1998, 5.125%, 7/01/12 1,000 Maryland Health and Higher Educational Facilities 10/08 at 101.00 AAA 1,000,910 Authority, Revenue Bonds, College of Notre Dame of Maryland Issue, Series 1998, 4.650%, 10/01/23 - MBIA Insured 1,250 Maryland Health and Higher Educational Facilities 6/11 at 100.00 Baa1 1,277,338 Authority, Revenue Bonds, Maryland Institute College of Art, Series 2001, 5.500%, 6/01/32 500 Morgan State University, Maryland, Academic and Auxiliary 7/12 at 100.00 AAA 520,065 Fees Revenue Bonds, Series 2001, 4.900%, 7/01/21 - FGIC Insured 500 Morgan State University, Maryland, Academic and 7/13 at 100.00 AAA 532,715 Auxiliary Fees Revenue Bonds, Series 2003A, 5.000%, 7/01/20 - FGIC Insured University of Maryland System, Auxiliary Facility and Tuition Revenue Bonds, Series 2001B: 1,580 4.375%, 4/01/17 4/11 at 100.00 AA+ 1,609,736 1,140 4.500%, 4/01/19 4/11 at 100.00 AA+ 1,155,242 1,000 University of Maryland System, Auxiliary Facility and 4/13 at 100.00 AA+ 1,063,220 Tuition Revenue Bonds, Series 2003A, 5.000%, 4/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 17.5% 1,000 Maryland Health and Higher Educational Facilities 7/08 at 101.00 AAA 1,020,290 Authority, Revenue Bonds, Anne Arundel Medical Center Issue, Series 1998, 5.125%, 7/01/33 - FSA Insured 2,000 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A- 2,028,240 Authority, Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31 750 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 750,908 Authority, Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 2,000 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A 2,020,480 Authority, Revenue Bonds, University of Maryland Medical System, Series 2001, 5.250%, 7/01/28 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,063,000 Revenue Bonds, Carroll County General Hospital, Series 2002, 6.000%, 7/01/26 1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,005,130 Authority, Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,011,460 Revenue Bonds, Kennedy Krieger Issue, Series 2003, 5.500%, 7/01/33 2,160 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA- 2,211,257 Revenue Bonds, Trinity Health Care Group, Series 2001, 5.125%, 12/01/22 28 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 15.6% $ 55 Community Development Administration, Department 5/11 at 100.00 Aa2 $ 56,082 of Housing and Community Development, Maryland, Multifamily Housing Insured Mortgage Loans, Series 2001A, 5.100%, 5/15/28 4,255 Community Development Administration, Department 5/11 at 100.00 Aa2 4,364,864 of Housing and Community Development, Maryland, Multifamily Housing Revenue Bonds, Insured Mortgage Loan, Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax) 1,110 Community Development Administration, Department 12/11 at 100.00 Aaa 1,149,871 of Housing and Community Development, Maryland, Multifamily Housing Revenue Bonds, Princess Anne Apartments Project, Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax) 3,145 Community Development Administration, Department 12/11 at 100.00 Aaa 3,257,968 of Housing and Community Development, Maryland, Multifamily Development Revenue Bonds, Waters Towers Senior Apartments, Series 2001F, 5.450%, 12/15/33 (Alternative Minimum Tax) 1,000 Community Development Administration, Department 5/12 at 100.00 Aa2 1,043,110 of Housing and Community Development, Maryland, Multifamily Housing Insured Mortgage Revenue Bonds, Series 2002A, 5.300%, 5/15/22 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.4% 500 Community Development Administration, Department 3/07 at 101.50 Aa2 520,725 of Housing and Community Development, Maryland, Residential Revenue Bonds, Series 1997B, 5.875%, 9/01/25 (Alternative Minimum Tax) 1,000 Community Development Administration, Department 9/10 at 100.00 Aa2 1,025,430 of Housing and Community Development, Maryland, Residential Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 3.6% 2,250 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 2,267,775 Recovery Revenue Bonds, Baltimore RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.1% 730 Maryland Health and Higher Educational Facilities 4/13 at 101.00 N/R 727,065 Authority, Revenue Bonds, Mercy Ridge Retirement Community, Series 2003A, 6.000%, 4/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 44.8% 755 Anne Arundel County, Maryland, General Obligation 3/12 at 100.00 AA+ 771,595 Bonds, Series 2002, 5.000%, 3/01/31 1,500 Baltimore County, Maryland, General Obligation 8/12 at 100.00 AAA 1,615,215 Consolidated Public Improvement Bonds, Series 2002, 5.000%, 8/01/18 Cecil County, Maryland, General Obligation Bonds, Consolidated Public Improvement, Series 2001B: 975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,008,199 1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,046,071 300 4.625%, 8/01/20 8/11 at 101.00 AA- 306,324 335 4.750%, 8/01/21 8/11 at 101.00 AA- 344,112 1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,064,750 Facilities Bonds, Series 2002, 5.000%, 11/01/20 3,000 Frederick County, Maryland, General Obligation Public 12/10 at 101.00 AA 3,276,030 Facilities Bonds, Series 2000, 5.200%, 12/01/19 510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 532,741 Improvement Bonds, Series 2001, 4.750%, 12/01/19 750 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 823,485 Refunding Bonds, Series 2003A, 5.000%, 8/15/15 State of Maryland, General Obligation Bonds, State and Local Facilities Loan of 2001, First Series: 2,445 5.500%, 3/01/11 No Opt. Call AAA 2,832,264 1,500 5.500%, 3/01/12 No Opt. Call AAA 1,737,000 4,730 Montgomery County, Maryland, General Obligation Refunding 10/11 at 101.00 AAA 5,247,698 Bonds, Consolidated Public Improvement, Series 2001, 5.250%, 10/01/18 Prince George's County, Maryland, General Obligation Consolidated Public Improvement Bonds, Series 2001: 1,000 5.250%, 12/01/20 - FGIC Insured 12/11 at 101.00 AAA 1,084,700 2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,042,808 29 Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,000 Puerto Rico, Public Improvement General Obligation 7/11 at 100.00 AAA $ 2,065,580 Refunding Bonds, Series 2001, 5.000%, 7/01/24 - FSA Insured 1,500 Puerto Rico, Public Improvement General Obligation No Opt. Call A- 1,629,240 Bonds, Series 2002A, 5.500%, 7/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 19.1% 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 765,825 Consolidated Water and Sewer, Series 1999, 4.500%, 8/01/19 815 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 820,909 Revenue Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12 Baltimore County, Maryland, Certificates of Participation, Health and Social Services Building Project, Series 2001: 1,580 5.000%, 8/01/20 8/11 at 101.00 AA+ 1,671,988 1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,747,714 530 Baltimore Board of School Commissioners, Maryland, 5/13 at 100.00 AA+ 581,076 City Public School System Revenue Bonds, Series 2003A, 5.000%, 5/01/15 1,000 Department of Transportation, State of Maryland, No Opt. Call AA 1,158,590 County Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,535,960 Revenue Bonds, Maryland Department of Transportation Headquarters Building, Series 2002, 5.375%, 6/01/19 1,000 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 1,055,170 West Germantown Development District, Senior Series 2002A, 5.500%, 7/01/27 - RAAI Insured 700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 811,608 Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 1,100 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 1,167,188 Revenue Bonds, Series 1997A, 5.000%, 7/01/21 - AMBAC Insured 800 Puerto Rico Public Finance Corporation, Commonwealth 8/11 at 100.00 AAA 838,632 Appropriation Bonds, Series 2001A, 5.000%, 8/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.2% Maryland Health and Higher Educational Facilities Authority, Parking Revenue Bonds, The Johns Hopkins Medical Institutions Issue of 2001: 650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 662,552 2,775 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 2,813,378 1,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 1,117,200 of Columbia, Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 13.5% 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,188,380 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded to 7/01/10) 1,260 Maryland Health and Higher Educational Facilities No Opt. Call AAA 1,387,600 Authority, Revenue Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/17 - AMBAC Insured 1,365 Maryland Transportation Authority, Transportation No Opt. Call AAA 1,654,953 Facilities Project Revenue Refunding Bonds, First Series, 6.800%, 7/01/16 4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,362,480 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.3% $ 1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA $ 1,057,190 5.250%, 10/01/34 - MBIA Insured 1,000 Maryland Energy Financing Administration, Limited 9/05 at 102.00 N/R 1,016,380 Obligation Cogeneration Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ $ 88,850 Total Long-Term Investments (cost $90,310,383) - 148.0% 93,963,216 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 1,507,714 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.4)% (32,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $63,470,930 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 31
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.6% $ 2,895 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,763,364 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 16.2% 225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 231,739 Revenue Bonds, Community College Project, Series 2002, 5.125%, 9/01/22 1,250 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,261,650 Housing Revenue Bonds, University of Maryland at Baltimore, Series 2003A, 5.625%, 10/01/23 2,040 Maryland Health and Higher Educational Facilities 10/09 at 101.00 A 2,060,808 Authority, Revenue Bonds, Loyola College Issue, Series 1999, 5.000%, 10/01/39 1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 AA 1,018,130 Authority, Revenue Bonds, The Johns Hopkins University, Series 2002A, 5.000%, 7/01/32 1,500 Morgan State University, Maryland, Academic and 7/13 at 100.00 AAA 1,541,940 Auxiliary Fees Revenue Bonds, Series 2003A, 5.000%, 7/01/32 - FGIC Insured 985 University of Maryland System, Auxiliary Facility and 4/11 at 100.00 AA+ 997,184 Tuition Revenue Bonds, Series 2001B, 4.625%, 4/01/21 University of Maryland System, Auxiliary Facility and Tuition Revenue Bonds, Series 2002A: 1,000 5.000%, 4/01/09 No Opt. Call AA+ 1,119,630 2,000 5.125%, 4/01/22 4/12 at 100.00 AA+ 2,102,780 University of Maryland System, Auxiliary Facility and Tuition Revenue Bonds, Series 2003A: 1,000 5.000%, 4/01/15 4/13 at 100.00 AA+ 1,093,980 1,000 5.000%, 4/01/19 4/13 at 100.00 AA+ 1,063,220 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 14.7% 3,000 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,245,580 Revenue Bonds, Medlantic/Helix Issue, Series 1998B, 5.250%, 8/15/38 - AMBAC Insured 1,000 Maryland Health and Higher Educational Facilities 7/08 at 101.00 AAA 1,020,290 Authority, Revenue Bonds, Anne Arundel Medical Center Issue, Series 1998, 5.125%, 7/01/33 - FSA Insured 1,000 Maryland Health and Higher Educational Facilities 5/11 at 100.00 AA- 1,022,790 Authority, Revenue Bonds, The Johns Hopkins Hospital Issue, Series 2001, 5.000%, 5/15/21 1,000 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 1,001,210 Authority, Revenue Bonds, Greater Baltimore Medical Center, Series 2001, 5.000%, 7/01/34 1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,005,130 Authority, Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35 1,845 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,903,191 Authority, Revenue Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa1 782,928 Revenue Refunding Bonds, Adventist Healthcare, Series 2003A, 5.750%, 1/01/25 1,355 Maryland Health and Higher Educational Facilities 7/13 at 100.00 Baa2 1,370,528 Authority, Revenue Bonds, Kennedy Krieger Issue, Series 2003, 5.500%, 7/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 20.3% 4,000 Community Development Administration, Maryland 7/12 at 100.00 Aa2 4,034,360 Department of Housing and Community Development, Housing Revenue Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative Minimum Tax) Housing Opportunities Commission of Montgomery County, Maryland, Multifamily Housing Development Bonds: 515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 522,128 3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,041,130 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 3,000 Housing Authority of Prince George's County, Maryland, 2/13 at 102.00 AAA $ 3,048,390 Mortgage Revenue Bonds, Series 2002A, GNMA Collateralized Windsor Crossing Apartments Project, 5.150%, 8/20/33 4,860 Housing Authority of Prince George's County, Maryland, 11/12 at 100.00 AAA 4,984,513 Mortgage Revenue Bonds, Fairfield and Hillside Projects, GNMA Collateralized, Series 2002A, 4.700%, 11/20/22 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 2.5% 1,900 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,915,010 Recovery Revenue Bonds, Baltimore RESCO Retrofit Project, Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.2% 265 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 217,300 Revenue Bonds, Collington Episcopal Life, Series 2001A, 6.750%, 4/01/23 730 Maryland Health and Higher Educational Facilities Authority, 4/13 at 101.00 N/R 727,065 Revenue Bonds, Mercy Ridge Retirement Community, Series 2003A, 6.000%, 4/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 36.4% 1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,031,890 Refunding Bonds, Series 2002, 4.375%, 4/01/17 2,115 Baltimore County, Maryland, General Obligation 8/12 at 100.00 AAA 2,343,843 Consolidated Public Improvement Bonds, Series 2002, 5.250%, 8/01/17 1,000 Calvert County, Maryland, General Obligation Public 1/12 at 101.00 AA 1,048,930 Improvement Bonds, Series 2002, 4.500%, 1/01/16 1,260 Charles County, Maryland, General Obligation Consolidated 1/12 at 101.00 AA 1,324,852 Public Improvement Bonds, Series 2002, 4.400%, 1/15/16 Frederick County, Maryland, General Obligation Public Facilities Bonds, Series 2002: 1,830 5.000%, 11/01/20 11/12 at 101.00 AA 1,948,492 2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,154,292 2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,631,325 1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,248,333 Bonds, Series 2001A, 4.750%, 2/15/19 1,215 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,334,046 Refunding Bonds, Series 2003A, 5.000%, 8/15/15 2,000 State of Maryland, General Obligation Bonds, State and No Opt. Call AAA 2,276,860 Local Facilities Loan, Series 2002B, 5.250%, 2/01/10 2,000 Montgomery County, Maryland, General Obligation 2/12 at 101.00 AAA 2,128,860 Consolidated Public Improvements Bonds, Series 2002A, 5.000%, 2/01/20 5,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 4,938,450 Consolidated Public Improvement Bonds, Series 2002, 4.300%, 9/15/21 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,085,310 Consolidated Public Improvement Bonds, Series 2003A, 5.000%, 10/01/17 1,430 Puerto Rico, Public Improvement General Obligation 7/11 at 100.00 AAA 1,482,038 Refunding Bonds, Series 2001, 5.125%, 7/01/30 - FSA Insured 1,000 St. Mary's County, Maryland, General Obligation No Opt. Call AA- 1,117,610 Hospital Bonds of 2002, 5.000%, 10/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 34.0% 500 Baltimore, Maryland, Convention Center Revenue Refunding 9/08 at 102.00 AAA 533,095 Bonds, Series 1998, 5.000%, 9/01/19 - MBIA Insured 1,000 Baltimore Board of School Commissioners, Maryland, City 5/13 at 100.00 AA+ 1,096,370 Public School System Revenue Bonds, Series 2003A, 5.000%, 5/01/15 5,000 Department of Transportation, State of Maryland, County No Opt. Call AA 5,792,950 Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16 2,200 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,236,190 Revenue Bonds, Maryland Department of Transportation Headquarters Building, Series 2002, 4.750%, 6/01/22 2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,230,936 Bonds, Montgomery County Wayne Avenue Parking Project, Series 2002A, 5.250%, 9/15/16 33 Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Maryland Stadium Authority, Montgomery County Conference Center Facilities Lease Revenue Bonds, Series 2003: $ 1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ $ 1,540,477 1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,680,361 700 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 811,608 Highway Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 3,500 Puerto Rico Infrastructure Financing Authority, Special 1/08 at 101.00 AAA 3,575,740 Tax Revenue Bonds, Series 1997A, 5.000%, 7/01/28 - 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 A- 1,072,430 1,205 5.250%, 7/01/20 7/12 at 100.00 A- 1,267,443 1,275 5.250%, 7/01/21 7/12 at 100.00 A- 1,333,676 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,085,230 Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC Insured 935 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 979,721 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 1.4% 1,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 1,117,200 of Columbia, Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 7.7% 385 Maryland Transportation Authority, Transportation Facilities No Opt. Call AAA 466,782 Project Revenue Refunding Bonds, First Series, 6.800%, 7/01/16 5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,453,100 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 7.1% 1,250 Maryland Energy Financing Administration Limited Obligation 9/05 at 102.00 N/R 1,270,475 Cogeneration Revenue Bonds, AES Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax) 4,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 4,226,371 Series 2000HH, 5.250%, 7/01/29 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.4% 2,570 City of Baltimore, Maryland, Wastewater Project Revenue 7/12 at 100.00 AAA 2,631,218 Refunding Bonds, Series 2002A, 5.125%, 7/01/42 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ $ 109,300 Total Long-Term Investments (cost $113,136,778) - 148.5% 114,592,472 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 1,563,344 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.5)% (39,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $77,155,816 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. See accompanying notes to financial statements. 34
Nuveen Virginia Premium Income Municipal Fund (NPV) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.2% $ 1,660 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,584,520 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 11.1% 3,500 Alexandria Industrial Development Authority, Virginia, 10/10 at 101.00 AAA 3,974,845 Fixed Rate Revenue Bonds, Institute for Defense Analyses, Series 2000A, 5.900%, 10/01/30 - AMBAC Insured Danville Industrial Development Authority, Virginia, Student Housing Revenue Bonds, Collegiate Housing Foundation, Averett College Project, Series 1999A: 500 6.875%, 6/01/20 6/09 at 102.00 N/R 477,265 1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,419,945 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 994,840 Virginia, Educational Facilities Revenue Bonds, The Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 (WI, Settling 12/10/03) 500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 527,995 Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 500 Industrial Development Authority of Rockbridge County, 7/11 at 100.00 B2 446,045 Virginia, Virginia Horse Center Revenue and Refunding Bonds, Series 2001C, 6.850%, 7/15/21 2,000 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,040,440 Revenue Bonds, Public Higher Education Financing Program, Series 2001A, 5.000%, 9/01/26 3,000 Virginia College Building Authority, Educational Facilities 11/04 at 100.00 Aa1 3,113,370 Revenue Bonds, University of Richmond Project, Series 1994, 5.550%, 11/01/19 (Optional put 11/01/04) 1,000 Virginia College Building Authority, Educational Facilities No Opt. Call AAA 1,099,220 Revenue Bonds, Washington and Lee University Project, Series 1998, 5.250%, 1/01/31 - MBIA Insured 1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+ 1,109,570 Revenue Bonds, Hampton University Project, Series 2000, 6.000%, 4/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 24.3% 2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 1,983,940 Virginia, Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 2,000 Danville Industrial Development Authority, Virginia, No Opt. Call AAA 2,235,580 Hospital Revenue Bonds, Danville Regional Medical Center, Series 1998, 5.200%, 10/01/18 - AMBAC Insured 4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA 5,057,629 Hospital Revenue Refunding Bonds, Inova Health System Hospitals Project, Series 1993A, 5.000%, 8/15/23 1,200 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,200,792 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 4,650 Hanover County Industrial Development Authority, 8/05 at 102.00 AAA 4,925,280 Virginia, Hospital Revenue Bonds, Bon Secours Health System Projects, Series 1995, 5.500%, 8/15/25 - MBIA Insured 1,500 Henrico County Economic Development Authority, 11/12 at 100.00 A- 1,541,985 Virginia, Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,500 Henrico County Industrial Development Authority, No Opt. Call AAA 1,820,850 Virginia, Healthcare Revenue Bonds, Bon Secours Health System Inc., Series 1996, 6.250%, 8/15/20 - MBIA Insured Loudoun County Industrial Development Authority, Virginia, Loudoun Hospital Center Revenue Bonds, Series 2002A: 375 6.000%, 6/01/22 6/12 at 101.00 BBB- 386,918 800 6.100%, 6/01/32 6/12 at 101.00 BBB- 819,288 2,260 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 2,283,956 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 35 Nuveen Virginia Premium Income Municipal Fund (NPV) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 4,750 Medical College of Virginia Hospitals Authority, General 7/08 at 102.00 AAA $ 4,876,350 Revenue Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured 2,500 Industrial Development Authority of the City of Norfolk, 11/04 at 102.00 AA 2,664,650 Virginia, Hospital Revenue and Refunding Bonds, Sentara Hospitals-Norfolk, Series 1994A, 6.500%, 11/01/13 3,000 Industrial Development Authority of the County of Roanoke, 7/12 at 100.00 AAA 3,275,340 Virginia, Hospital Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 8.5% 455 Arlington County Industrial Development Authority, Virginia, 7/05 at 102.00 A 476,749 Multifamily Housing Mortgage Revenue Bonds, Arlington Housing Corporation, Series 1995, 5.700%, 7/01/07 1,495 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,589,992 Multifamily Housing Revenue Bonds, Patrick Henry Apartments Project, Series 2000, 6.050%, 11/01/32 (Alternative Minimum Tax) (Mandatory put 11/01/20) 4,445 Hampton Redevelopment and Housing Authority, Virginia, 1/04 at 101.00 A-1 4,553,814 Multifamily Housing Revenue Refunding Bonds, Chase Hampton II Apartments, Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04) 1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,639,701 GNMA Mortgage-Backed Securities Beth Sholom Assisted Living Revenue Bonds, Series 1999A, 5.900%, 7/20/29 1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,024,210 Vistas Revenue Bonds - GNMA Mortgage-Backed Securities Financing, Series 2000A, 6.200%, 1/20/40 (Alternative Minimum Tax) 2,355 Suffolk Redevelopment and Housing Authority, Virginia, 1/04 at 100.00 AAA 2,356,225 Mortgage Revenue Refunding Bonds, FHA-Insured Mortgage Loan - Wilson Pines Apartments Section 8 Assisted Project, Series 1993, 6.125%, 1/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 1.5% 1,000 Puerto Rico Housing Finance Authority, Home Mortgage 6/13 at 100.00 AAA 1,006,810 Revenue Bonds, Mortgage-Backed Securities Program, Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax) 1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,019,500 Mortgage Bonds, Series 2001H, Subseries H-1, 5.350%, 7/01/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.5% 2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,071,040 Solid Waste Disposal Facility Revenue Refunding Bonds, USA Waste of Virginia, Inc. Project, Series 1999, 4.875%, 2/01/09 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.6% Winchester Industrial Development Authority, Virginia, Residential Care Facility First Mortgage Revenue Bonds, Westminster-Canterbury of Winchester Inc., Series 1998: 1,350 5.750%, 1/01/18 1/04 at 101.00 N/R 1,281,231 1,000 5.750%, 1/01/27 1/04 at 101.00 N/R 908,670 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 2.2% 500 Industrial Development Authority of the County of Bedford, 2/08 at 102.00 Ba3 416,625 Virginia, Industrial Development Refunding Revenue Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 1,900 Industrial Development Authority of the County 12/09 at 101.00 Ba3 1,782,485 of Bedford, Virginia, Industrial Development Refunding Revenue Bonds, Nekoosa Packaging Corporation, Series 1999A, 6.550%, 12/01/25 (Alternative Minimum Tax) 1,000 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 838,770 Virginia, Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 15.0% Chesapeake, Virginia, General Obligation Water and Sewer Bonds, Series 2003B: $ 1,880 5.000%, 6/01/21 6/13 at 100.00 AA $ 1,979,565 2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,141,391 Hampton, Virginia, General Obligation Public Improvement Bonds, Series 2000: 890 5.750%, 2/01/17 2/10 at 102.00 AA 1,016,692 2,000 6.000%, 2/01/20 2/10 at 102.00 AA 2,322,000 1,355 Harrisonburg, Virginia, General Obligation Bonds, 7/12 at 101.00 AAA 1,444,728 Public Safety and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured 585 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AA+ 624,979 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 Newport News, Virginia, General Obligation Bonds, Series 2002A, General Improvement and Water Projects: 2,770 5.000%, 7/01/19 7/13 at 100.00 AA 2,953,513 1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,058,130 1,400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,486,128 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,430 City of Roanoke, Virginia, General Obligation Public 10/12 at 101.00 AA 1,552,851 Improvement Bonds, Series 2002A, 5.000%, 10/01/17 1,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,504,885 Improvement Bonds, Series 2001, 5.000%, 6/01/20 2,155 City of Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,368,043 Series 2003B, 5.000%, 5/01/15 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 29.1% 750 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 792,608 Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured Cumberland County, Virginia, Certificates of Participation, Series 1997: 1,075 6.200%, 7/15/12 No Opt. Call N/R 1,170,826 1,350 6.375%, 7/15/17 No Opt. Call N/R 1,497,825 500 Dinwiddie County Industrial Development Authority, 2/07 at 102.00 N/R 521,005 Virginia, Lease Revenue Bonds, Dinwiddie County School Facilities Project, Series 1997A, 6.000%, 2/01/18 Fairfax County Economic Development Authority, Virginia, Lease Revenue Bonds, Laurel Hill Public Facilities Project, Series 2003: 2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,506,769 2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,266,365 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 102.00 AA 1,169,660 Parking Revenue Bonds, Vienna II Metrorail Station Project, First Series 1999, 6.000%, 9/01/18 Greater Richmond Convention Center Authority, Virginia, Hotel Tax Revenue Bonds, Convention Center Expansion Project, Series 2000: 600 6.125%, 6/15/25 6/10 at 101.00 A- 668,796 2,000 6.125%, 6/15/29 6/10 at 101.00 A- 2,229,320 3,000 Hampton Roads Regional Jail Authority, Virginia, Regional 7/06 at 102.00 AAA 3,240,330 Jail Facility Revenue Bonds, Series 1996A, 5.500%, 7/01/24 - MBIA Insured 1,230 Middlesex County Industrial Development Authority, 8/09 at 102.00 AAA 1,398,953 Virginia, Lease Revenue Bonds, School Facilities Project, Series 1999, 6.000%, 8/01/24 - MBIA Insured 1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,391,328 Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 2,000 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 AAA 2,052,600 Highway Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds, Series 2002D: 1,000 5.250%, 7/01/27 7/12 at 100.00 A- 1,030,130 1,200 5.250%, 7/01/36 7/12 at 100.00 A- 1,232,244 37 Nuveen Virginia Premium Income Municipal Fund (NPV) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA $ 1,106,037 Virginia, Industrial Development Lease Revenue Bonds, School Facilities Project, Series 2003B, 4.375%, 8/01/20 - AMBAC Insured 2,000 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 2,213,680 Taxes Loan Bonds, Series 1999A, 6.500%, 10/01/24 2,250 Virginia College Building Authority, Educational Facilities 2/09 at 101.00 AA+ 2,560,320 Revenue Bonds, 21st Century College Program, Series 2000, 6.000%, 2/01/20 2,000 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 2,075,260 Revenue Bonds, 21st Century College and Equipment Program, Series 2002A, 5.000%, 2/01/22 2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,112,720 1997 Resolution, Series 2000B, 5.000%, 8/01/18 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2000B: 1,120 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 1,242,080 3,060 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 3,314,837 1,740 Virginia Resources Authority, Infrastructure Revenue 5/11 at 101.00 AA 1,841,024 Bonds, Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.6% 1,400 Metropolitan Washington Airports Authority, Virginia, 10/07 at 101.00 Aa3 1,439,256 Airport System Revenue Bonds, Series 1997A, 5.375%, 10/01/23 4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,104,240 Series 2001A, 5.125%, 7/01/31 - FGIC Insured 530 Pocahontas Parkway Association, Virginia, Route 895 8/08 at 102.00 Baa3 409,123 Connector Toll Road Senior Lien Revenue Bonds, Series 1998A, 5.500%, 8/15/28 2,500 Richmond Metropolitan Authority, Virginia, Expressway No Opt. Call AAA 2,773,225 Revenue Refunding Bonds, Series 2002, 5.250%, 7/15/22 - FGIC Insured 6,065 Virginia Port Authority, Port Facilities Revenue Bonds, 7/07 at 101.00 AAA 6,420,227 Series 1997, 5.600%, 7/01/27 (Alternative Minimum Tax) - MBIA Insured 2,000 Virginia Resources Authority, Airport Revolving Fund 2/11 at 100.00 Aa2 2,101,620 Revenue Bonds, Series 2001A, 5.250%, 8/01/23 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 6.5% 1,530 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,720,592 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) 2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,726,550 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 3,955 Virginia Resources Authority, Water and Sewer System 10/07 at 100.00 AA*** 4,481,213 Revenue Bonds, Sussex County Project, Series 1995A, 5.600%, 10/01/25 (Pre-refunded to 10/01/07) - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.3% Bristol, Virginia, Utility System Revenue Refunding Bonds, Series 2003: 1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA 1,912,260 1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 2,008,008 2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,950,546 2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 2,546,825 Virginia, Exempt Facility Revenue Refunding Bonds, UAE LP Project, Series 2002, 6.500%, 10/15/17 3,500 City of Richmond, Virginia, Public Utility Revenue Refunding 1/08 at 101.00 AAA 3,580,465 Bonds, Series 1998A, 5.125%, 1/15/28 - FGIC Insured City of Richmond, Virginia, Public Utility Revenue Refunding Bonds, Series 2002: 750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 765,727 1,600 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,625,008 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 18.4% $ 2,000 Fairfax County, Virginia, Sewer Revenue Bonds, Series 1996, 7/06 at 102.00 AAA $ 2,200,640 5.875%, 7/15/28 - MBIA Insured 2,000 Fairfax County Water Authority, Virginia, Water Revenue 4/10 at 101.00 AAA 2,190,020 Bonds, Series 2000, 5.625%, 4/01/25 Fairfax County Water Authority, Virginia, Water Revenue Refunding Bonds, Series 2002: 2,030 5.375%, 4/01/19 4/12 at 100.00 AAA 2,220,942 1,000 5.000%, 4/01/27 4/12 at 100.00 AAA 1,024,680 1,650 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,680,146 Refunding Bonds, Series 1999, 5.000%, 5/01/28 6,200 City of Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA 6,791,852 5.875%, 11/01/20 - MBIA Insured City of Norfolk, Virginia, Water Revenue and Refunding Bonds, Series 2001: 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,359,846 1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,425,057 1,955 Rivanna Water and Sewer Authority, Virginia, Regional 10/09 at 101.00 Aa3 2,082,349 Water and Sewer System Revenue Bonds, Series 1999, 5.625%, 10/01/29 1,000 Upper Occoquan Sewage Authority, Virginia, Regional 1/04 at 102.00 AAA 1,022,640 Sewerage System Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/21 - FGIC Insured 2,250 City of Virginia Beach, Virginia, Storm Water Utility 9/10 at 101.00 Aa3 2,569,722 Revenue Bonds, Series 2000, 6.000%, 9/01/24 500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 564,060 Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22 - ------------------------------------------------------------------------------------------------------------------------------------ $ 186,485 Total Long-Term Investments (cost $185,968,498) - 144.8% 197,610,896 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 2,638,714 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.8)% (63,800,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $136,449,610 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 39
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.8% Guam Economic Development Authority, Tobacco Settlement Asset-Backed Bonds, Series 2001A: $ 150 5.000%, 5/15/22 5/11 at 100.00 Baa2 $ 150,228 850 5.400%, 5/15/31 5/11 at 100.00 Baa2 807,458 1,400 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa2 1,279,614 Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.0% 500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 498,025 Educational Facilities Revenue Bonds, Averett University Project, Series 2001, 6.000%, 3/15/22 500 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 497,420 Virginia, Educational Facilities Revenue Bonds, The Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 (WI, settling 12/10/03) 850 Prince William County Park Authority, Virginia, Park 10/09 at 101.00 A3 897,592 Facilities Revenue Refunding and Improvement Bonds, Series 1999, 6.000%, 10/15/28 Puerto Rico Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System Project, Series 1999: 160 5.375%, 2/01/19 2/09 at 101.00 BBB 165,450 320 5.375%, 2/01/29 2/09 at 101.00 BBB 323,581 420 Industrial Development Authority of Rockbridge County, No Opt. Call B2 376,879 Virginia, Virginia Horse Center Revenue and Refunding Bonds, Series 2001B, 6.125%, 7/15/11 1,000 Industrial Development Authority of Rockbridge County, 7/11 at 100.00 B2 892,090 Virginia, Virginia Horse Center Revenue and Refunding Bonds, Series 2001C, 6.850%, 7/15/21 1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,417,856 Revenue Bonds, Public Higher Education Financing Program, Series 2000A, 5.000%, 9/01/17 500 Virginia College Building Authority, Educational Facilities 7/08 at 101.00 AA 520,005 Revenue Refunding Bonds, Marymount University Project, Series 1998, 5.100%, 7/01/18 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 18.8% 1,000 Fauquier County Industrial Development Authority, 10/12 at 102.00 AA 1,030,370 Virginia, Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 2,000 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 2,169,980 Hospital Facilities Revenue Refunding Bonds, MediCorp Health System Obligated Group, Series 1996, 5.250%, 6/15/16 - AMBAC Insured 500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 500,330 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 513,995 Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 535 Loudoun County Industrial Development Authority, 6/05 at 102.00 AAA 571,610 Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 1995, 5.800%, 6/01/26 - FSA Insured 425 Loudoun County Industrial Development Authority, 6/12 at 101.00 BBB- 438,507 Virginia, Loudoun Hospital Center Revenue Bonds, Series 2002A, 6.000%, 6/01/22 1,000 Industrial Development Authority of the City of 1/08 at 101.00 A+ 1,010,920 Lynchburg, Virginia, Healthcare Facilities Revenue and Refunding Bonds, Centra Health, Series 1998, 5.200%, 1/01/23 675 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 682,155 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 1,000 Industrial Development Authority of the City of Norfolk, 8/07 at 102.00 AAA 1,025,950 Virginia, Health Care Revenue Bonds, Bon Secours Health System, Series 1997, 5.250%, 8/15/26 - MBIA Insured 800 Industrial Development Authority of the City of Norton, 12/11 at 101.00 A 856,824 Virginia, Hospital Revenue Bonds, Norton Community Hospital Refunding and Improvement, Series 2001, 6.000%, 12/01/22 - ACA Insured 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.5% $ 1,000 Industrial Development Authority of Arlington County, 11/11 at 102.00 AAA $ 1,031,330 Virginia, Multifamily Housing Mortgage Revenue Bonds, Arlington View Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Alternative Minimum Tax) (Mandatory put 11/01/19) 1,000 Virginia Housing Development Authority, Rental Housing 10/10 at 100.00 AA+ 1,047,560 Bonds, Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 2.2% 1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,019,500 Mortgage Bonds, Series 2001H, Subseries H-1, 5.350%, 7/01/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 5.2% 1,000 Albemarle County Industrial Development Authority, 1/12 at 100.00 N/R 1,013,120 Virginia, Residential Care Facility Revenue Bonds, Westminster Canterbury of the Blue Ridge First Mortgage, Series 2001, 6.200%, 1/01/31 James City County Industrial Development Authority, Virginia, Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A: 1,000 6.000%, 3/01/23 3/12 at 101.00 N/R 1,008,720 400 6.125%, 3/01/32 3/12 at 101.00 N/R 403,892 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.5% 25 Industrial Development Authority of the County of 2/08 at 102.00 Ba3 20,831 Bedford, Virginia, Industrial Development Refunding Revenue Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 20 Industrial Development Authority of the County of 12/09 at 101.00 Ba3 18,763 Bedford, Virginia, Industrial Development Refunding Revenue Bonds, Nekoosa Packaging Corporation, Series 1999A, 6.550%, 12/01/25 (Alternative Minimum Tax) 220 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 184,529 Virginia, Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.9% 2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,089,460 Improvement Bonds, Series 2001, 5.000%, 1/15/21 3,310 Town of Leesburg, Virginia, General Obligation Public 1/11 at 101.00 AAA 3,504,396 Improvement Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured 1,540 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 AA+ 1,657,055 Improvement Bonds, Series 2001B, 5.250%, 1/01/20 1,000 Newport News, Virginia, General Obligation Bonds, 5/10 at 102.00 AA 1,132,470 Series 2000A, 5.625%, 5/01/16 320 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 339,686 Series 2000A, 6.000%, 6/01/20 - ACA Insured 1,300 City of Richmond, Virginia, General Obligation Public 1/10 at 101.00 AAA 1,340,144 Improvement and Refunding Bonds, Series 1999A, 5.125%, 1/15/24 - FSA Insured 2,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,548,166 Improvement Bonds, Series 2001, 5.000%, 6/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.2% 350 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 350,592 Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22 500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 489,830 Revenue Bonds, Series 2003, 7.500%, 6/01/33 500 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 579,720 Highway Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,045,250 Virginia, Industrial Development Lease Revenue Bonds, School Facilities Project, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,067,501 Taxes Loan Bonds, Series 1999A, 6.375%, 10/01/19 41 Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ $ 518,815 Revenue Bonds, 21st Century College and Equipment Program, Series 2002A, 5.000%, 2/01/22 430 Virginia Commonwealth Transportation Board, 5/07 at 101.00 AA+ 459,992 Transportation Revenue Refunding Bonds, Northern Virginia Transportation District Program, Series 1997B, 5.125%, 5/15/19 2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,121,860 1997 Resolution, Series 2001A, 5.000%, 8/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 24.4% 1,750 Capital Region Airport Authority, Richmond, Virginia, 7/05 at 102.00 AAA 1,879,308 Airport Revenue Bonds, International Airport Projects, Series 1995A, 5.625%, 7/01/20 - AMBAC Insured 1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,121,580 General Resolution District Revenue Refunding Bonds, Series 1998, 5.500%, 7/01/25 - MBIA Insured 3,000 Metropolitan Washington D.C. Airports Authority, 10/11 at 101.00 AAA 3,149,880 Airport System Revenue Bonds, Series 2001A, 5.500%, 10/01/27 (Alternative Minimum Tax) - MBIA Insured 250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 258,008 System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 - MBIA Insured 1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,539,090 Series 2001A, 5.125%, 7/01/31 - FGIC Insured Pocahontas Parkway Association, Virginia, Senior Lien Revenue Bonds, Route 895 Connector Toll Road, Series 1998A: 25 5.000%, 8/15/05 No Opt. Call Baa3 24,708 200 5.250%, 8/15/07 No Opt. Call Baa3 193,634 200 5.500%, 8/15/28 8/08 at 102.00 Baa3 154,386 500 Richmond Metropolitan Authority, Virginia, Expressway No Opt. Call AAA 554,645 Revenue Refunding Bonds, Series 2002, 5.250%, 7/15/22 - FGIC Insured 1,225 Virginia Resources Authority, Airport Revolving Fund 2/11 at 100.00 Aa2 1,287,242 Revenue Bonds, Series 2001A, 5.250%, 8/01/23 1,250 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 1,263,138 Revenue Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 8.5% 610 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 685,988 Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10) Puerto Rico Infrastructure Financing Authority, Special Obligation Bonds, Series 2000A: 1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,638,735 1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,635,930 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.0% 1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102.00 AAA 1,062,370 Series 2001, 5.000%, 7/15/21 - FSA Insured 1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 1,018,730 Virginia, Exempt Facility Revenue Refunding Bonds, UAE LP Project, Series 2002, 6.500%, 10/15/17 1,725 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,799,623 Refunding Bonds, Series Z, 5.250%, 7/01/21 City of Richmond, Virginia, Public Utility Revenue Refunding Bonds, Series 2002: 500 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 510,485 1,200 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,218,756 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 14.3% 2,000 Fairfax County Water Authority, Virginia, Water Revenue No Opt. Call AAA 2,173,620 Refunding Bonds, Series 1997, 5.000%, 4/01/21 2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,069,480 Refunding Bonds, Series 1999, 5.000%, 5/01/22 520 Prince William County Service Authority, Virginia, Water 7/09 at 101.00 AAA 577,730 and Sewer System Revenue Bonds, Series 1999, 5.500%, 7/01/19 - FGIC Insured 42 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,680 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA $ 1,844,974 Fund Revenue Bonds, Series 2000, 5.400%, 10/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ $ 66,345 Total Long-Term Investments (cost $66,546,419) - 148.3% 69,282,061 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 1.1% 500 Puerto Rico Government Development Bank, Adjustable A-1 500,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 1.010%, 12/01/15 - MBIA Insured+ - ------------------------------------------------------------------------------------------------------------------------------------ $ 500 Total Short-Term Investments (cost $500,000) 500,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $67,046,419) - 149.4% 69,782,061 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 914,795 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.4)% (24,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $46,696,856 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. + Security has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based on market conditions or a specified market index. See accompanying notes to financial statements. 43
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) Portfolio of INVESTMENTS November 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 1.4% $ 1,245 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,188,390 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 5.9% 1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,068,520 Revenue Bonds, National Wildlife Federation Project, Series 1999, 5.375%, 9/01/29 - MBIA Insured 1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 994,840 Virginia, Educational Facilities Revenue Bonds, The Catholic Diocese of Arlington, Series 2003, 5.500%, 10/01/33 (WI, settling 12/10/03) 3,000 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 3,110,460 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System Project, Series 2002, 5.375%, 12/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 20.2% 1,500 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 1,487,955 Virginia, Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002, 5.250%, 10/01/35 1,215 Danville Industrial Development Authority, Virginia, No Opt. Call AAA 1,358,115 Hospital Revenue Bonds, Danville Regional Medical Center, Series 1998, 5.200%, 10/01/18 - AMBAC Insured 3,000 Fauquier County Industrial Development Authority, 10/12 at 102.00 AA 3,091,110 Virginia, Hospital Revenue Bonds, Fauquier Hospital, Series 2002, 5.250%, 10/01/25 - RAAI Insured 800 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 800,528 Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%, 6/15/33 1,000 Henrico County Economic Development Authority, 11/12 at 100.00 A- 1,027,990 Virginia, Revenue Bonds, Bon Secours Health System Inc., Series 2002A, 5.600%, 11/15/30 1,000 Industrial Development Authority of Loudoun County, 6/05 at 102.00 AAA 1,068,430 Virginia, Hospital Revenue Bonds, Loudoun Hospital Center, Series 1995, 5.800%, 6/01/26 - FSA Insured Loudoun County Industrial Development Authority, Virginia, Loudoun Hospital Center Revenue Bonds, Series 2002A: 250 6.000%, 6/01/22 6/12 at 101.00 BBB- 257,945 600 6.100%, 6/01/32 6/12 at 101.00 BBB- 614,466 1,355 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,369,363 Hospital Revenue Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33 1,200 Industrial Development Authority of the City of Norton, 12/11 at 101.00 A 1,285,236 Virginia, Hospital Revenue Bonds, Norton Community Hospital Refunding and Improvement, Series 2001, 6.000%, 12/01/22 - ACA Insured 1,000 Industrial Development Authority of the County of 10/08 at 102.00 Aaa 1,047,150 Prince William, Virginia, Hospital Facility Refunding Revenue Bonds, Potomac Hospital Corporation of Prince William, Series 1998, 5.000%, 10/01/18 - FSA Insured 3,915 Industrial Development Authority of the County of 7/12 at 100.00 AAA 4,256,662 Roanoke, Virginia, Hospital Revenue Bonds, Carilion Health System, Series 2002A, 5.500%, 7/01/20 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.7% 7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,630,958 Mortgage Bonds, 2001 Series H, Subseries H-1, 5.350%, 7/01/31 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% James City County Industrial Development Authority, Virginia, Residential Care Facility First Mortgage Revenue Refunding Bonds, Williamsburg Landing Inc., Series 2003A: 1,500 6.000%, 3/01/23 3/12 at 101.00 N/R 1,513,080 600 6.125%, 3/01/32 3/12 at 101.00 N/R 605,838 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.5% $ 40 Industrial Development Authority of the County of 2/08 at 102.00 Ba3 $ 33,330 Bedford, Virginia, Industrial Development Refunding Revenue Bonds, Nekoosa Packaging Corporation, Series 1998, 5.600%, 12/01/25 (Alternative Minimum Tax) 460 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 385,834 Virginia, Industrial Development Revenue Refunding Bonds, Nekoosa Packaging Corporation Project, Series 1998, 5.650%, 12/01/25 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 28.0% 1,750 Chesapeake, Virginia, General Obligation Public Improvement 12/11 at 100.00 AA 1,975,137 Refunding Bonds, Series 2001, 5.500%, 12/01/16 1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 AA+ 1,792,367 Improvement Bonds, Series 2001C, 4.500%, 11/01/17 540 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AA+ 576,904 Improvement Bonds, Series 2002A, 5.250%, 5/01/22 1,840 Newport News, Virginia, General Obligation Bonds, 7/13 at 100.00 AA 1,946,959 Series 2002A, General Improvement and Water Projects, 5.000%, 7/01/20 1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA 1,046,570 Series 2003B, 5.000%, 11/01/22 525 City of Portsmouth, Virginia, General Obligation Public 6/08 at 100.00 AAA 549,213 Utility Refunding Bonds, Series 2001B, 5.000%, 6/01/21 - FGIC Insured Powhatan County, Virginia, General Obligation Bonds, Series 2001: 660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 680,638 1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,020,970 City of Roanoke, Virginia, General Obligation Public Improvement Bonds, Series 2002A: 2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,584,440 2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,601,724 1,280 City of Roanoke, Virginia, General Obligation Public 10/12 at 101.00 AAA 1,384,845 Improvement Bonds, Series 2002B, 5.000%, 10/01/15 (Alternative Minimum Tax) - FGIC Insured City of Salem, Virginia, General Obligation Public Improvement Bonds, Series 2002: 1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,234,402 1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,287,744 1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,345,037 1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,407,004 1,500 City of Virginia Beach, Virginia, General Obligation 6/11 at 101.00 AA+ 1,593,045 Public Improvement Bonds, Series 2001, 5.000%, 6/01/19 1,420 City of Virginia Beach, Virginia, General Obligation 3/12 at 100.00 AA+ 1,486,882 Public Improvement Bonds, Series 2002 Refunding, 5.000%, 3/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 31.1% 650 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 651,099 Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22 1,000 Bristol, Virginia, General Obligation Utility System 11/12 at 102.00 AAA 1,056,810 Revenue Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured 1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 979,660 Revenue Bonds, Series 2003, 7.500%, 6/01/33 1,800 Loudoun County, Virginia, Industrial Development Authority, 3/13 at 100.00 AA 1,907,280 Public Facility Lease Revenue Refunding Bonds, Series 2003, 5.000%, 3/01/19 700 Puerto Rico Highway and Transportation Authority, No Opt. Call AAA 811,608 Highway Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured Puerto Rico Public Buildings Authority, Guaranteed Government Facilities Revenue Refunding Bonds, Series 2002D: 1,500 5.250%, 7/01/27 7/12 at 100.00 A- 1,545,195 500 5.250%, 7/01/36 7/12 at 100.00 A- 513,435 1,800 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 1,886,094 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 45 Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued) Portfolio of INVESTMENTS November 30, 2003 (Unaudited) PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA $ 1,045,250 Virginia, Industrial Development Lease Revenue Bonds, School Facilities Project, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured 1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,857,358 Revenue Bonds, 21st Century College and Equipment Program, Series 2002A, 5.000%, 2/01/22 1,710 Virginia Commonwealth Transportation Board, 5/11 at 100.00 AA+ 1,743,567 Transportation Revenue Bonds, Northern Virginia Transportation District Program, Series 2001A, 5.000%, 5/15/26 Virginia Commonwealth Transportation Board, Transportation Revenue Bonds, U.S. Route 58 Corridor Development Program, Series 2001B: 1,705 5.000%, 5/15/22 5/11 at 100.00 AA+ 1,764,522 1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,713,535 1,710 Virginia Public Building Authority, Public Facilities Revenue 8/08 at 100.00 AAA 1,806,803 Bonds, Series 1999A, 5.000%, 8/01/19 - MBIA Insured 2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,694,762 1997 Resolution, Series 2001B, 5.000%, 8/01/19 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled Loan Bond Program, Series 2001D: 1,265 5.000%, 5/01/26 5/10 at 101.00 AA 1,284,936 3,930 5.000%, 5/01/31 5/10 at 101.00 AA 3,977,239 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 7.5% 2,500 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 2,806,175 General Resolution District Junior Lien Revenue Refunding Bonds, Series 2001B, 5.000%, 7/01/09 - FGIC Insured 1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AAA 1,017,720 System Revenue Bonds, Series 2002A, 5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured Pocahontas Parkway Association, Virginia, Route 895 Connector Toll Road Senior Lien Revenue Bonds, Series 1998A: 25 5.000%, 8/15/05 No Opt. Call Baa3 24,708 300 5.250%, 8/15/07 No Opt. Call Baa3 290,451 325 5.500%, 8/15/28 8/08 at 102.00 Baa3 250,877 1,980 Richmond Metropolitan Authority, Virginia, Expressway No Opt. Call AAA 2,196,394 Revenue and Refunding Bonds, Series 1998, 5.250%, 7/15/22 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 7.8% 6,250 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 6,816,375 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.7% 2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 2,037,460 Virginia, Exempt Facility Revenue Refunding Bonds, UAE LP Project, Series 2002, 6.500%, 10/15/17 3,125 Puerto Rico Electric Power Authority, Power Revenue 7/10 at 101.00 AAA 3,281,344 Bonds, Series 2000HH, 5.250%, 7/01/29 - FSA Insured City of Richmond, Virginia, Public Utility Revenue Refunding Bonds, Series 2002: 1,000 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 1,020,970 1,000 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,015,630 1,110 Industrial Development Authority of Russell County, 11/08 at 101.00 AAA 1,161,981 Virginia, Pollution Control Revenue Bonds, Appalachian Power Company Project, Series 1998H, 5.000%, 11/01/21 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 23.1% 3,800 Fairfax County Water Authority, Virginia, Water Revenue No Opt. Call AAA 4,129,878 Refunding Bonds, Series 1997, 5.000%, 4/01/21 1,500 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,537,020 Refunding Bonds, Series 2002, 5.000%, 4/01/27 Henry County Public Service Authority, Virginia, Water and Sewer Revenue Refunding Bonds, Series 2001: 1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,152,900 3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,444,600 46 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) City of Norfolk, Virginia, Water Revenue and Refunding Bonds, Series 2001: $ 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA $ 1,202,591 1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,257,354 1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,490,528 1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,558,474 2,000 Upper Occoquan Sewage Authority, Virginia, Regional No Opt. Call AAA 2,203,860 Sewerage System Revenue Bonds, Series 1995A, 5.150%, 7/01/20 - MBIA Insured 2,250 Virginia Resources Authority, Water and Sewer System 5/11 at 101.00 AA 2,292,592 Revenue Bonds, Caroline County Public Improvements Project, Series 2001, 5.000%, 5/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ $ 121,900 Total Long-Term Investments (cost $122,196,636) - 146.3% 128,139,116 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 1,468,184 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (47.9)% (42,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $87,607,300 ==================================================================================================================== (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares. * Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. ** Ratings: Using the higher of Standard & Poor's or Moody's rating. N/R Investment is not rated. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 47
Statement of ASSETS AND LIABILITIES November 30, 2003 (Unaudited) MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $220,507,927, $89,064,939, $90,310,383 and $113,136,778, respectively) $228,582,054 $92,164,515 $93,963,216 $114,592,472 Cash -- 315,214 52,462 -- Receivables: Interest 4,409,271 1,658,094 1,517,126 1,645,041 Investments sold 4,000,000 190,053 -- -- Other assets 24,749 7,146 3,157 963 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 237,016,074 94,335,022 95,535,961 116,238,476 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,125,425 -- -- 14,808 Payable for investments purchased 1,134,336 -- -- -- Accrued expenses: Management fees 123,285 26,900 27,215 31,188 Other 68,463 29,162 37,816 31,059 Preferred share dividends payable 9,267 4,213 -- 5,605 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 2,460,776 60,275 65,031 82,660 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000 ==================================================================================================================================== Net assets applicable to Common shares $155,455,298 $62,274,747 $63,470,930 $ 77,155,816 ==================================================================================================================================== Common shares outstanding 10,572,917 4,160,476 4,168,600 5,357,697 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.70 $ 14.97 $ 15.23 $ 14.40 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 105,729 $ 41,605 $ 41,686 $ 53,577 Paid-in surplus 146,744,423 59,005,430 59,109,236 75,626,322 Undistributed net investment income 2,006,122 613,997 581,517 157,684 Accumulated net realized gain (loss) from investments (1,475,103) (485,861) 85,658 (137,461) Net unrealized appreciation of investments 8,074,127 3,099,576 3,652,833 1,455,694 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $155,455,298 $62,274,747 $63,470,930 $ 77,155,816 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 48
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $185,968,498, $67,046,419 and $122,196,636, respectively) $197,610,896 $69,782,061 $128,139,116 Cash 615,110 400,650 844,628 Receivables: Interest 3,114,354 1,060,351 1,684,764 Investments sold 60,000 -- -- Other assets 15,912 5,012 4,700 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 201,416,272 71,248,074 130,673,208 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- -- -- Payable for investments purchased 998,618 499,309 998,618 Accrued expenses: Management fees 105,336 20,166 36,912 Other 57,766 28,389 30,378 Preferred share dividends payable 4,942 3,354 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,166,662 551,218 1,065,908 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000 ==================================================================================================================================== Net assets applicable to Common shares $136,449,610 $46,696,856 $ 87,607,300 ==================================================================================================================================== Common shares outstanding 8,820,007 3,119,428 5,691,053 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.47 $ 14.97 $ 15.39 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 88,200 $ 31,194 $ 56,911 Paid-in surplus 124,078,243 44,213,306 80,748,625 Undistributed net investment income 1,605,688 411,248 597,589 Accumulated net realized gain (loss) from investments (964,919) (694,534) 261,695 Net unrealized appreciation of investments 11,642,398 2,735,642 5,942,480 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $136,449,610 $46,696,856 $ 87,607,300 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited ==================================================================================================================================== See accompanying notes to financial statements. 49
Statement of OPERATIONS Six Months Ended November 30, 2003 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 6,124,659 $ 2,373,289 $ 2,253,480 $ 2,616,639 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 749,726 304,239 307,140 372,835 Preferred shares - auction fees 99,146 40,110 40,110 48,883 Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 5,014 Shareholders' servicing agent fees and expenses 17,158 1,159 955 499 Custodian's fees and expenses 30,095 13,905 11,807 12,383 Trustees' fees and expenses 2,746 1,110 252 1,411 Professional fees 7,761 5,215 5,333 7,411 Shareholders' reports - printing and mailing expenses 15,111 4,385 6,145 6,066 Stock exchange listing fees 7,824 58 59 448 Investor relations expense 16,192 6,227 6,184 7,678 Other expenses 12,547 5,099 9,015 2,681 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 968,333 386,521 392,014 465,309 Custodian fee credit (10,145) (2,341) (6,266) (5,205) Expense reimbursement -- (140,418) (141,757) (183,550) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 958,188 243,762 243,991 276,554 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 5,166,471 2,129,527 2,009,489 2,340,085 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 1,012,188 74,045 113,177 262,626 Change in net unrealized appreciation (depreciation) of investments (5,279,756) (2,270,145) (2,223,804) (2,925,903) - ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (4,267,568) (2,196,100) (2,110,627) (2,663,277) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (284,604) (104,600) (129,732) (160,506) From accumulated net realized gains from investments -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (284,604) (104,600) (129,732) (160,506) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 614,299 $ (171,173) $ (230,870) $ (483,698) ====================================================================================================================================
See accompanying notes to financial statements. 50
VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 5,147,033 $ 1,765,998 $ 3,137,787 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 640,534 227,534 417,198 Preferred shares - auction fees 79,969 30,082 52,644 Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 Shareholders' servicing agent fees and expenses 16,696 797 1,010 Custodian's fees and expenses 26,830 10,602 15,402 Trustees' fees and expenses 2,785 894 1,629 Professional fees 6,994 4,800 5,768 Shareholders' reports - printing and mailing expenses 12,568 3,590 6,437 Stock exchange listing fees 5,621 74 138 Investor relations expense 13,496 4,545 8,073 Other expenses 6,595 5,022 5,989 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 822,115 292,954 519,302 Custodian fee credit (8,031) (3,015) (5,202) Expense reimbursement -- (105,016) (192,653) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 814,084 184,923 321,447 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 4,332,949 1,581,075 2,816,340 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS Net realized gain (loss) from investments 1,004,022 45,587 (31,212) Change in net unrealized appreciation (depreciation) of investments (5,210,738) (1,531,720) (3,667,063) - ------------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) from investments (4,206,716) (1,486,133) (3,698,275) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (215,169) (82,972) (167,522) From accumulated net realized gains from investments -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (215,169) (82,972) (167,522) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ (88,936) $ 11,970 $(1,049,457) ==================================================================================================================================== See accompanying notes to financial statements. 51
Statement of CHANGES IN NET ASSETS (Unaudited)
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) --------------------------------- --------------------------------- -------------------------------- SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 11/30/03 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 5,166,471 $ 10,723,401 $ 2,129,527 $ 4,306,567 $ 2,009,489 $ 4,032,768 Net realized gain (loss) from investments 1,012,188 2,417,190 74,045 (444,217) 113,177 176,840 Change in net unrealized appreciation (depreciation) of investments (5,279,756) 8,129,891 (2,270,145) 5,349,299 (2,223,804) 6,557,094 Distributions to Preferred Shareholders: From net investment income (284,604) (733,384) (104,600) (321,178) (129,732) (356,207) From accumulated net realized gains from investments -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 614,299 20,537,098 (171,173) 8,890,471 (230,870) 10,410,495 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,818,316) (9,412,274) (1,921,779) (3,554,454) (1,800,756) (3,375,174) From accumulated net realized gains from investments -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,818,316) (9,412,274) (1,921,779) (3,554,454) (1,800,756) (3,375,174) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- -- 1,664 -- 3,771 -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 244,241 494,984 28,077 45,521 10,812 34,422 Preferred shares offering costs -- -- -- 31,543 (1,871) 50,355 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 244,241 494,984 29,741 77,064 12,712 84,777 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,959,776) 11,619,808 (2,063,211) 5,413,081 (2,018,914) 7,120,098 Net assets applicable to Common shares at the beginning of period 159,415,074 147,795,266 64,337,958 58,924,877 65,489,844 58,369,746 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $155,455,298 $159,415,074 $62,274,747 $64,337,958 $63,470,930 $65,489,844 ==================================================================================================================================== Undistributed net investment income at the end of period $ 2,006,122 $ 1,942,571 $ 613,997 $ 510,849 $ 581,517 $ 502,516 ====================================================================================================================================
See accompanying notes to financial statements. 52
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) --------------------------------- --------------------------------- ------------------------------- FOR THE PERIOD 9/25/02 (COMMENCEMENT SIX MONTHS ENDED OF OPERATIONS) SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED 11/30/03 THROUGH 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,340,085 $ 2,781,714 $ 4,332,949 $ 8,810,923 $ 1,581,075 $ 3,176,943 Net realized gain (loss) from investments 262,626 (400,087) 1,004,022 1,078,214 45,587 (429,332) Change in net unrealized appreciation (depreciation) of investments (2,925,903) 4,381,597 (5,210,738) 9,438,098 (1,531,720) 3,871,254 Distributions to Preferred Shareholders: From net investment income (160,506) (245,067) (215,169) (582,520) (82,972) (223,605) From accumulated net realized gains from investments -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (483,698) 6,518,157 (88,936) 18,744,715 11,970 6,395,260 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,105,235) (2,453,307) (4,018,149) (7,864,088) (1,440,911) (2,683,388) From accumulated net realized gains from investments -- -- -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,105,235) (2,453,307) (4,018,149) (7,864,088) (1,440,911) (2,683,388) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares -- 76,335,300 -- -- 1,664 -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 49,164 105,659 333,513 687,975 22,623 52,795 Preferred shares offering costs (4,499) (906,000) -- -- -- 28,686 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 44,665 75,534,959 333,513 687,975 24,287 81,481 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (2,544,268) 79,599,809 (3,773,572) 11,568,602 (1,404,654) 3,793,353 Net assets applicable to Common shares at the beginning of period 79,700,084 100,275 140,223,182 128,654,580 48,101,510 44,308,157 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period 77,155,816 79,700,084 136,449,610 140,223,182 46,696,856 48,101,510 ==================================================================================================================================== Undistributed net investment income at the end of period $ 157,684 $ 83,340 $ 1,605,688 $ 1,506,057 $ 411,248 $ 354,056 ==================================================================================================================================== 53 See accompanying notes to financial statements.
Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) -------------------------------- SIX MONTHS ENDED YEAR ENDED 11/30/03 5/31/03 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,816,340 $ 5,532,519 Net realized gain (loss) from investments (31,212) 562,801 Change in net unrealized appreciation (depreciation) of investments (3,667,063) 8,983,926 Distributions to Preferred Shareholders: From net investment income (167,522) (456,477) From accumulated net realized gains from investments -- (21,076) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations (1,049,457) 14,601,693 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,517,095) (4,757,183) From accumulated net realized gains from investments -- (145,463) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,517,095) (4,902,646) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from sale of shares 2,456 -- Net proceeds from shares issued to shareholders due to reinvestment of distributions 106,063 33,189 Preferred shares offering costs -- 8,152 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 108,519 41,341 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,458,033) 9,740,388 Net assets applicable to Common shares at the beginning of period 91,065,333 81,324,945 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $87,607,300 $91,065,333 ==================================================================================================================================== Undistributed net investment income at the end of period $ 597,589 $ 465,866 ==================================================================================================================================== See accompanying notes to financial statements. 54
Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state Funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen Maryland Premium Income Municipal Fund (NMY), Nuveen Maryland Dividend Advantage Municipal Fund (NFM), Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR), Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI), Nuveen Virginia Premium Income Municipal Fund (NPV), Nuveen Virginia Dividend Advantage Municipal Fund (NGB) and Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB). Common shares of Maryland Premium Income (NMY) and Virginia Premium Income (NPV) are traded on the New York Stock Exchange while Common shares of Maryland Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI), Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Prior to the commencement of operations of Maryland Dividend Advantage 3 (NWI), the Fund had no operations other than those related to organizational matters, the initial capital contribution of $100,275 by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and the recording of the organizational expenses ($11,500) and their reimbursement by Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen Investments, Inc. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States. Securities 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 price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. If it is determined that market prices for a security are unavailable or inappropriate, the Board of Trustees of the Funds, or its designee, may establish a fair value for the security. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Securities Transactions Securities transactions are recorded on a trade date basis. Realized gains and losses from such transactions are determined on the specific identification method. Securities purchased or sold on a when-issued or delayed delivery basis may have extended settlement periods. The securities so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At November 30, 2003, Virginia Premium Income (NPV), Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB), had outstanding when-issued purchase commitments of $998,618, $499,309 and $998,618, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. 55 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net investment income to its shareholders. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States. Preferred Shares The Funds have issued and outstanding $25,000 stated value Preferred shares. Each Fund's Preferred shares are issued in one or more Series. The dividend rate on each Series may change every seven days, as set pursuant to a dutch auction process by the auction agent, and is payable at or near the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------- Number of shares: Series M -- 1,280 -- -- Series T -- -- -- 1,560 Series W 1,404 -- -- -- Series TH 1,760 -- -- -- Series F -- -- 1,280 -- - -------------------------------------------------------------------------------- Total 3,164 1,280 1,280 1,560 ================================================================================ VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------- Number of shares: Series M -- -- 1,680 Series T 832 -- -- Series W -- 960 -- Series TH 1,720 -- -- Series F -- -- -- - -------------------------------------------------------------------------------- Total 2,552 960 1,680 ================================================================================ Effective November 15, 2002, Maryland Dividend Advantage 3 (NWI) issued 1,560 Series T, $25,000 stated value Preferred shares. 56 Derivative Financial Instruments The Funds may invest in certain derivative financial instruments including futures, forward, swap and option contracts, and other financial instruments with similar characteristics. Although the Funds are authorized to invest in such financial instruments, and may do so in the future, they did not make any such investments during the six months ended November 30, 2003. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Offering Costs Nuveen Investments, LLC has agreed to pay all Common share offering costs (other than the sales load) that exceed $.03 per Common share for Maryland Dividend Advantage 3 (NWI). Maryland Dividend Advantage 3's (NWI) share of Common share offering costs ($160,200) was recorded as a reduction of the proceeds from the sale of common shares. Costs incurred by Maryland Dividend Advantage 3 (NWI) in connection with its offering of Preferred shares ($910,499) were recorded as a reduction to paid-in surplus. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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. FUND SHARES Transactions in Common and Preferred shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR) ----------------------- ----------------------- ----------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 11/30/03 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03 - --------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- -- -- -- -- -- Shares issued to shareholders due to reinvestment of distributions 15,332 30,973 1,805 3,029 716 2,564 - --------------------------------------------------------------------------------------------------------- 15,332 30,973 1,805 3,029 716 2,564 ========================================================================================================= Preferred shares sold -- -- -- -- -- -- ========================================================================================================= MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB) --------------------------------- ----------------------- ----------------------- FOR THE PERIOD 9/25/02 (COMMENCEMENT SIX MONTHS SIX MONTHS SIX MONTHS ENDED OF OPERATIONS) ENDED YEAR ENDED ENDED YEAR ENDED 11/30/03 THROUGH 5/31/03 11/30/03 5/31/03 11/30/03 5/31/03 - ------------------------------------------------------------------------------------------------------------- Common shares: Shares sold -- 5,340,000 -- -- -- -- Shares issued to shareholders due to reinvestment of distributions 3,414 7,283 19,648 40,954 1,366 3,523 - ------------------------------------------------------------------------------------------------------------- 3,414 5,347,283 19,648 40,954 1,366 3,523 ============================================================================================================= Preferred shares sold -- 1,560 -- -- -- -- =============================================================================================================
57 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) ----------------------------- SIX MONTHS ENDED YEAR ENDED 11/30/03 5/31/03 - -------------------------------------------------------------------------------- Common shares: Shares sold -- -- Shares issued to shareholders due to reinvestment of distributions 6,641 2,299 - -------------------------------------------------------------------------------- 6,641 2,299 ================================================================================ Preferred shares sold -- -- ================================================================================ 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities for the six months ended November 30, 2003, were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------- Purchases $27,299,766 $4,946,910 $4,242,866 $9,588,854 Sales and maturities 24,503,975 4,804,700 4,532,525 9,416,418 ================================================================================ VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------- Purchases $23,052,424 $3,481,870 $9,298,628 Sales and maturities 22,692,458 3,098,750 9,292,290 ================================================================================ 58 4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing income on taxable market discount securities and timing differences in recognizing certain gains and losses on security transactions. At November 30, 2003, the cost of investments were as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------- Cost of investments $220,314,335 $89,053,859 $90,294,531 $113,131,022 ================================================================================ VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------- Cost of investments $185,770,698 $67,038,514 $122,176,326 ================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2003, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $11,165,703 $3,394,740 $3,824,183 $1,839,772 Depreciation (2,897,984) (284,084) (155,498) (378,322) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $ 8,267,719 $3,110,656 $3,668,685 $1,461,450 ========================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $12,497,246 $3,057,227 $5,992,942 Depreciation (657,048) (313,680) (30,152) - --------------------------------------------------------------------------------------------------------- Net unrealized appreciation of investments $11,840,198 $2,743,547 $5,962,790 =========================================================================================================
The tax components of undistributed net investment income and net realized gains at May 31, 2003, the Funds' last fiscal year end, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $2,459,589 $812,057 $791,515 $435,499 Undistributed net ordinary income * 3,514 -- -- -- Undistributed net long-term capital gains -- -- -- -- ========================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income $1,964,684 $584,303 $866,410 Undistributed net ordinary income * 16,467 -- 83,460 Undistributed net long-term capital gains -- -- 209,448 =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 59 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The tax character of distributions paid during the fiscal year ended May 31, 2003, the Funds' last fiscal year end, was designated for purposes of the dividends paid deduction as follows:
MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 2003 (NMY) (NFM) (NZR) (NWI) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $10,056,404 $3,859,655 $3,704,764 $2,343,187 Distributions from net ordinary income * 38,307 -- -- -- Distributions from net long-term capital gains -- -- -- -- ========================================================================================================= VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 2003 (NPV) (NGB) (NNB) - --------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $8,413,226 $2,895,125 $5,200,254 Distributions from net ordinary income * -- -- 167,216 Distributions from net long-term capital gains -- -- -- =========================================================================================================
* Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At May 31, 2003, the Funds' last fiscal year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows:
MARYLAND MARYLAND MARYLAND MARYLAND VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND DIVIDEND PREMIUM DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 INCOME ADVANTAGE (NMY) (NFM) (NZR) (NWI) (NPV) (NGB) - --------------------------------------------------------------------------------------------------------- Expiration year: 2004 $1,263,034 $ -- $ -- $ -- $1,579,895 $ -- 2005 454,351 -- -- -- 140,749 -- 2006 -- -- -- -- -- -- 2007 -- -- -- -- -- -- 2008 332,070 -- -- -- 250,767 -- 2009 317,048 9,874 -- -- -- 186,152 2010 -- 37,159 -- -- -- 104,197 2011 -- -- 27,519 240,898 -- 32,604 - --------------------------------------------------------------------------------------------------------- Total $2,366,503 $47,033 $27,519 $240,898 $1,971,411 $322,953 =========================================================================================================
60 The following Funds elected to defer net realized losses from investments incurred from November 1, 2002 through May 31, 2003 ("post-October losses") in accordance with Federal income tax regulations. The following post-October losses are treated as having arisen on the first day of the current fiscal year: MARYLAND MARYLAND VIRGINIA DIVIDEND DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 3 ADVANTAGE (NFM) (NWI) (NGB) - -------------------------------------------------------------------------------- $512,871 $159,189 $417,167 ================================================================================ 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Under Maryland Premium Income's (NMY) and Virginia Premium Income's (NPV) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For the next $3 billion .5875 For net assets over $5 billion .5750 ================================================================================ Under Maryland Dividend Advantage's (NFM), Maryland Dividend Advantage 2's (NZR), Maryland Dividend Advantage 3's (NWI), Virginia Dividend Advantage's (NGB) and Virginia Dividend Advantage 2's (NNB) investment management agreements with the Adviser, each Fund pays an annual management fee, payable monthly, at the rates set forth below, which are based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE - -------------------------------------------------------------------------------- For the first $125 million .6500% For the next $125 million .6375 For the next $250 million .6250 For the next $500 million .6125 For the next $1 billion .6000 For net assets over $2 billion .5750 ================================================================================ The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING JANUARY 31, JANUARY 31, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and Virginia Dividend Advantage (NGB) for any portion of its fees and expenses beyond January 31, 2011. 61 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond September 30, 2011. For the first eight years of Maryland Dividend Advantage 3's (NWI) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING SEPTEMBER 30, SEPTEMBER 30, - -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for any portion of its fees and expenses beyond September 30, 2010. For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for any portion of its fees and expenses beyond November 30, 2011. 62 6. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on December 30, 2003, to shareholders of record on December 15, 2003, as follows: MARYLAND MARYLAND MARYLAND MARYLAND PREMIUM DIVIDEND DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 (NMY) (NFM) (NZR) (NWI) - -------------------------------------------------------------------------------- Dividend per share $.0760 $.0785 $.0730 $.0655 ================================================================================ VIRGINIA VIRGINIA VIRGINIA PREMIUM DIVIDEND DIVIDEND INCOME ADVANTAGE ADVANTAGE 2 (NPV) (NGB) (NNB) - -------------------------------------------------------------------------------- Dividend per share $.0760 $.0785 $.0745 ================================================================================ At the same time, the following Funds declared capital gains and ordinary income distributions as follows: MARYLAND VIRGINIA DIVIDEND DIVIDEND ADVANTAGE 2 ADVANTAGE 2 (NZR) (NNB) - -------------------------------------------------------------------------------- Capital gains distributions per share $.0187 $.0337 Ordinary income distributions per share* -- .0135 ================================================================================ * Ordinary income consists of taxable market discount income and net short-term capital gains, if any. 63 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ----------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(d) $15.10 $ .49 $ (.40) $(.03) $-- $ .06 $(.46) $-- $(.46) 2003 14.04 1.02 1.00 (.07) -- 1.95 (.89) -- (.89) 2002 13.83 1.03 .14 (.13) -- 1.04 (.83) -- (.83) 2001 12.83 1.03 1.01 (.25) -- 1.79 (.79) -- (.79) 2000 14.41 1.02 (1.58) (.24) -- (.80) (.78) -- (.78) 1999 14.54 1.00 (.14) (.22) -- .64 (.77) -- (.77) MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(d) 15.47 .51 (.52) (.03) -- (.04) (.46) -- (.46) 2003 14.18 1.04 1.18 (.08) -- 2.14 (.86) -- (.86) 2002 13.90 1.04 .22 (.14) -- 1.12 (.84) -- (.84) 2001(a) 14.33 .22 (.25) (.05) -- (.08) (.21) -- (.21) MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(d) 15.71 .48 (.50) (.03) -- (.05) (.43) -- (.43) 2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81) 2002(b) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46) MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(d) 14.89 .44 (.51) (.03) -- (.10) (.39) -- (.39) 2003(c) 14.33 .52 .75 (.05) -- 1.22 (.46) -- (.46) ==================================================================================================================================== Total Returns ------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================ MARYLAND PREMIUM INCOME (NMY) - -------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) $-- $14.70 $15.3600 (7.80)% .45% 2003 -- 15.10 17.1500 15.22 14.33 2002 -- 14.04 15.7300 4.77 7.71 2001 -- 13.83 15.8500 26.24 14.18 2000 -- 12.83 13.2500 (7.22) (5.57) 1999 -- 14.41 15.1250 5.47 4.44 MARYLAND DIVIDEND ADVANTAGE (NFM) - -------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) -- 14.97 16.2400 4.02 (.16) 2003 .01 15.47 16.0800 9.98 15.55 2002 -- 14.18 15.4400 1.98 8.21 2001(a) (.14) 13.90 15.9900 8.02 (1.53) MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - -------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) -- 15.23 14.8900 (1.74) (.22) 2003 .01 15.71 15.6000 12.71 18.39 2002(b) (.15) 14.01 14.6100 .52 1.01 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - -------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) -- 14.40 13.5100 (6.72) (.56) 2003(c) (.20) 14.89 14.9000 2.53 7.31 ================================================================================ Ratios/Supplemental Data ----------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ----------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ====================================================================================================================== MARYLAND PREMIUM INCOME (NMY) - ---------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) $155,455 1.26%* 6.69%* 1.24%* 6.71%* 11% 2003 159,415 1.26 7.00 1.25 7.01 16 2002 147,795 1.32 7.33 1.31 7.34 13 2001 145,201 1.31 7.58 1.31 7.58 8 2000 134,299 1.29 7.69 1.28 7.70 13 1999 150,420 1.29 6.78 1.28 6.79 16 MARYLAND DIVIDEND ADVANTAGE (NFM) - ---------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) 62,275 1.25* 6.43* .79* 6.90* 5 2003 64,338 1.26 6.54 .79 7.01 12 2002 58,925 1.35 6.81 .82 7.34 36 2001(a) 57,740 1.17* 4.33* .75* 4.75* 10 MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ---------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) 63,471 1.25* 5.94* .78* 6.41* 5 2003 65,490 1.26 6.07 .80 6.53 12 2002(b) 58,370 1.22* 5.55* .79* 5.99* 21 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ---------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(d) 77,156 1.23* 5.67* .73* 6.17* 8 2003(c) 79,700 1.18* 5.01* .70* 5.50* 13 ====================================================================================================================== Preferred Shares at End of Period -------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================ MARYLAND PREMIUM INCOME (NMY) - ------------------------------------------------------------ Year Ended 5/31: 2004(d) $79,100 $25,000 $74,133 2003 79,100 25,000 75,384 2002 79,100 25,000 71,712 2001 79,100 25,000 70,891 2000 79,100 25,000 67,446 1999 79,100 25,000 72,541 MARYLAND DIVIDEND ADVANTAGE (NFM) - ------------------------------------------------------------ Year Ended 5/31: 2004(d) 32,000 25,000 73,652 2003 32,000 25,000 75,264 2002 32,000 25,000 71,035 2001(a) 32,000 25,000 70,109 MARYLAND DIVIDEND ADVANTAGE 2 (NZR) - ------------------------------------------------------------ Year Ended 5/31: 2004(d) 32,000 25,000 74,587 2003 32,000 25,000 76,164 2002(b) 32,000 25,000 70,601 MARYLAND DIVIDEND ADVANTAGE 3 (NWI) - ------------------------------------------------------------ Year Ended 5/31: 2004(d) 39,000 25,000 74,459 2003(c) 39,000 25,000 76,090 ============================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income at net asset value, reinvested capital gains distributions at net asset value, if any, and changes in Common share net asset value per share. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the period January 23, 2001 (commencement of operations) through May 31, 2001. (b) For the period September 25, 2001 (commencement of operations) through May 31, 2002. (c) For the period September 25, 2002 (commencement of operations) through May 31, 2003. (d) For the six months ended November 30, 2003. See accompanying notes to financial statements. 64-65 Financial HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ----------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Net Investment Capital Investment Capital Common Realized/ Income to Gains to Income to Gains to Share Net Unrealized Preferred Preferred Common Common Net Asset Investment Investment Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(c) $15.93 $ .49 $ (.47) $(.02) $-- $ -- $(.46) $ -- $(.46) 2003 14.69 1.00 1.21 (.07) -- 2.14 (.90) -- (.90) 2002 14.59 1.04 .03 (.11) -- .96 (.86) -- (.86) 2001 13.36 1.08 1.21 (.25) -- 2.04 (.81) -- (.81) 2000 14.89 1.07 (1.52) (.24) -- (.69) (.84) -- (.84) 1999 14.96 1.05 (.08) (.22) -- .75 (.82) -- (.82) VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(c) 15.43 .51 (.48) (.03) -- -- (.46) -- (.46) 2003 14.23 1.02 1.10 (.07) -- 2.05 (.86) -- (.86) 2002 13.87 1.02 .32 (.13) -- 1.21 (.85) -- (.85) 2001(a) 14.33 .24 (.28) (.05) -- (.09) (.21) -- (.21) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 5/31: 2004(c) 16.02 .50 (.66) (.03) -- (.19) (.44) -- (.44) 2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87) 2002(b) 14.33 .41 .09 (.04) -- .46 (.35) -- (.35) ==================================================================================================================================== Total Returns ------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** =============================================================================== VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------------------------- Year Ended 5/31: 2004(c) $-- $15.47 $17.1200 (.46)% .06% 2003 -- 15.93 17.6700 15.27 14.99 2002 -- 14.69 16.1700 6.64 6.71 2001 -- 14.59 16.0000 18.45 15.53 2000 -- 13.36 14.2500 (6.02) (4.64) 1999 -- 14.89 16.0625 4.77 5.09 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------------------------- Year Ended 5/31: 2004(c) -- 14.97 16.5500 (1.90) .11 2003 .01 15.43 17.3500 21.45 14.92 2002 -- 14.23 15.0900 5.10 8.89 2001(a) (.16) 13.87 15.1800 2.61 (1.73) VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------------------------- Year Ended 5/31: 2004(c) -- 15.39 16.4900 5.02 (1.08) 2003 -- 16.02 16.1400 14.58 18.51 2002(b) (.13) 14.31 14.9000 1.71 2.30 =============================================================================== Ratios/Supplemental Data ----------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement*** ----------------------------- ----------------------------- Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ==================================================================================================================== VIRGINIA PREMIUM INCOME (NPV) - -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(c) $136,450 1.22%* 6.41%* 1.21%* 6.42%* 12% 2003 140,223 1.25 6.61 1.24 6.62 17 2002 128,655 1.28 7.01 1.27 7.02 14 2001 127,145 1.23 7.51 1.21 7.53 7 2000 115,760 1.29 7.72 1.28 7.73 20 1999 128,368 1.26 6.94 1.26 6.95 8 VIRGINIA DIVIDEND ADVANTAGE (NGB) - -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(c) 46,697 1.27* 6.39* .80* 6.86* 5 2003 48,102 1.28 6.45 .81 6.92 10 2002 44,308 1.37 6.68 .84 7.21 21 2001(a) 43,155 1.27* 4.76* .80* 5.23* 20 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - -------------------------------------------------------------------------------------------------------------------- Year Ended 5/31: 2004(c) 87,607 1.20* 6.04* .74* 6.50* 7 2003 91,065 1.21 6.01 .75 6.47 15 2002(b) 81,325 1.14* 5.00* .70* 5.44* 12 ==================================================================================================================== Preferred Shares at End of Period -------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================ VIRGINIA PREMIUM INCOME (NPV) - ------------------------------------------------------------ Year Ended 5/31: 2004(c) $63,800 $25,000 $78,468 2003 63,800 25,000 79,946 2002 63,800 25,000 75,413 2001 63,800 25,000 74,822 2000 63,800 25,000 70,361 1999 63,800 25,000 75,301 VIRGINIA DIVIDEND ADVANTAGE (NGB) - ------------------------------------------------------------ Year Ended 5/31: 2004(c) 24,000 25,000 73,643 2003 24,000 25,000 75,106 2002 24,000 25,000 71,154 2001(a) 24,000 25,000 69,953 VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) - ------------------------------------------------------------ Year Ended 5/31: 2004(c) 42,000 25,000 77,147 2003 42,000 25,000 79,206 2002(b) 42,000 25,000 73,408 ============================================================
* Annualized. ** Total Investment Return on Market Value is the combination of reinvested dividend income, reinvested capital gains distributions, if any, and changes in stock price per share. Total Return on Common Share Net Asset Value is the combination of reinvested dividend income at net asset value, reinvested capital gains distributions at net asset value, if any, and changes in Common share net asset value per share. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the period January 26, 2001 (commencement of operations) through May 31, 2001. (b) For the period November 15, 2001 (commencement of operations) through May 31, 2002. (c) For the six months ended November 30, 2003. See accompanying notes to financial statements. 66-67 spread Build Your Wealth AUTOMATICALLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBILITY You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. 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. 68 Fund INFORMATION BOARD OF TRUSTEES William E. Bennett Robert P. Bremner Lawrence H. Brown Jack B. Evans Anne E. Impellizzeri William L. Kissick Thomas E. Leafstrand Peter R. Sawers William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Shelia W. Wellington FUND MANAGER Nuveen Advisory Corp. 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT AUDITORS Ernst & Young LLP Chicago, IL PROXY VOTING POLICIES AND PROCEDURES A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii) on the Commission's website at http://www.sec.gov. GLOSSARY OF TERMS USED IN THIS REPORT Average Annual Total Return: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return (including change in NAV and reinvested dividends) that would have been necessary on an annual basis to equal the investment's actual performance over the time period being considered. Average Effective Maturity: The average of all the maturities of the bonds in a fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual portfolio of individual bonds that make up the Fund. Market Yield (also known as Dividend Yield or Current Yield): An investment's current annualized dividend divided by its current market price. Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities of the fund from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. - --------- Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the six month period ended November 30, 2003. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 69 Serving Investors FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. Managing $90 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. To learn more about the products and services Nuveen Investments offers and for a prospectus, where applicable, talk to your financial advisor, or call us at (800) 257-8787. Please read the information carefully before you invest. Distributed by NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 | www.nuveen.com ESA-A-1103D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES Not applicable to this filing. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS Not applicable at this time. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable to this filing. ITEM 10. 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 registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because posted on registrant's website at www.nuveen.com/etf. (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 at this time. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Virginia Dividend Advantage Municipal Fund 2 ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: February 4, 2004 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (Principal Executive Officer) Date: February 4, 2004 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (Principal Financial Officer) Date: February 4, 2004 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 3 file002.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen Virginia 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) 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) 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 (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: February 4, 2004 /s/ 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 Virginia 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) 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) 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 (c) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: February 4, 2004 /s/ Stephen D. Foy ------------------------- -------------------------------- Vice President and Controller (Principal Financial Officer) EX-99.906CERT 4 file003.txt CERTIFICATIONS 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 Virginia 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 November 30, 2003 (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: February 4, 2004 ----------------------- /s/ Gifford R. Zimmerman --------------------- Chief Administrative Officer (Chief Executive Officer) /s/ Stephen D. Foy --------------------- Vice President, Controller (Chief Financial Officer) -----END PRIVACY-ENHANCED MESSAGE-----