SEMIANNUAL REPORT November 30, 2002
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
MARYLAND
NMY
NFM
NZR
NWI
VIRGINIA
NPV
NGB
NNB
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
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Dear
SHAREHOLDER
Once again, I am pleased to write that during the period covered by this report
your Nuveen Fund continued to meet its objective of providing attractive monthly
income free from federal income taxes and, where applicable, state income taxes.
Detailed information on your Fund's performance can be found in the Portfolio
Manager's Comments and on the Performance Overview pages within this report.
Please take the time to read them.
In addition to providing regular tax-free income, we believe that a municipal
bond investment like your Nuveen Fund also may offer opportunities to reduce the
risk of your overall investment portfolio. This is because the prices of
municipal bonds may move differently than the prices of the common stocks,
mutual funds or other investments you may own. Since one part of your portfolio
may be going up when another is going down, portfolio diversification may reduce
your overall risk. Your financial advisor can explain the advantages of
portfolio diversification in more detail. I urge you to contact him or her soon
for more information on this important investment strategy.
I also urge you to consider receiving future Fund reports and other Fund
information through the Internet and by e-mail rather than in hard copy. Not
only will you be able to receive the information faster, but this also may help
lower your Fund expenses. Sign up is quick and easy - see the inside front cover
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For more than 100 years, Nuveen has specialized in offering quality investments
such as your Nuveen Fund to those seeking to accumulate and preserve wealth. Our
commitment to careful research, constant surveillance and judicious trading by
our seasoned portfolio management team has never been stronger. Our mission
continues to be to assist you and your financial advisor by offering the
investment solutions and services that can help you meet your financial
objectives. We thank you for choosing us as a partner as you work toward that
goal.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
January 15, 2003
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 U.S. and state economic conditions, key
investment strategies, and the recent performance of the Funds. Paul, who has
eleven years of investment experience, assumed portfolio management
responsibility for NMY and NPV in 1999, for NFM, NZR, NGB, and NNB upon their
respective inceptions in 2001,and for NWI upon its inception in September 2002.
WHAT WERE THE MAJOR FACTORS AFFECTING THE U.S. ECONOMY AND THE MUNICIPAL MARKET
DURING THIS REPORTING PERIOD?
In many ways, economic and market conditions did not significantly change since
the last shareholder report dated May 2002. We believe the most influential
factors affecting the U.S. economy and the municipal market continued to be the
slow pace of economic growth and interest rates that remained at 40-year lows.
The ongoing threat of terrorism and continued geopolitical uncertainty also had
an economic impact during this reporting period.
In the municipal market, the sluggish economic recovery and lack of inflationary
pressures helped many bonds perform well during much of 2002. However, during
October and, to a lesser degree, November 2002, the market environment for all
fixed income investments was negatively impacted by a rebound in the equity
markets, which appeared to prompt some investors to sell fixed income products
and purchase common stocks.
During the first eleven months of 2002, new municipal supply nationwide reached
a record $328 billion, a 27% increase over January-November 2001 levels. Demand
for municipal bonds also remained strong over most of this period, as many
individual investors continued to seek investments offering tax-free income and
diversification for their portfolios. Institutional investors, especially
traditional municipal bond purchasers such as property/casualty insurance
companies, also were active buyers.
WHAT ABOUT ECONOMIC AND MARKET CONDITIONS IN MARYLAND AND VIRGINIA?
Maryland remains a state with historically well-managed finances, high per
capita income, and a well-educated workforce. In general, Maryland's economy is
gradually improving, stimulated by the vibrant Washington DC area economy and
increases in federal defense and security spending. As of November 2002,
unemployment in Maryland stood at 4.0%, down from 4.4% a year ago and
substantially below the current national average of 6.0%. Promising developments
within the state include the renewed growth of bioscience firms, where several
new facilities are planned; rapidly appreciating home prices; and population
growth that has accelerated in recent years. Despite revenue shortfalls and
operating deficits that are expected over the next few budgetary cycles,
Maryland retains substantial reserves.
Virginia's economy also appears to be slowly emerging from recession.
Unemployment has declined to 3.9% in November 2002, with local governments and
the services industry leading job growth. The commonwealth's economy is expected
to continue to benefit from increased federal defense spending, especially in
the areas surrounding the Pentagon in northern Virginia and around Norfolk.
However, as the sixth largest state in terms of high-tech employment, Virginia
continues to feel the impact of job losses in the technology and
telecommunications industries. These job losses translated to sharp declines in
revenue from tax collections, particularly in northern Virginia. After
successfully closing a $3.8 billion budget shortfall earlier in 2002, the
commonwealth continues to face a projected $2 billion deficit in its two-year
budget, which took effect July 1, 2002. However, Virginia's long history of
strong financial management and its diverse economy are expected to help it
restore budgetary structural balance.
As in many other states, municipal bond issuance increased in Maryland and
Virginia during 2002. In the first 11 months of the year, Maryland issued $4.7
billion in new municipal supply, up almost 50% from January-November 2001, while
Virginia increased its issuance over the same period by 21%, to $6.3 billion.
Both Maryland and Virginia maintained their credit ratings by Moody's and
Standard & Poor's at Aaa/AAA, respectively,
2
although Moody's revised its outlook for Virginia from stable to negative in
December 2001 to reflect the slowdown in the commonwealth's economy.
HOW DID THESE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED NOVEMBER 30, 2002?
Individual results for the Funds 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
11/30/02 EQUIVALENT3 11/30/02 11/30/02 11/30/02
--------------------------------------------------------------------------------
NMY 5.65% 8.50% 8.37% 6.32% 7.80%
--------------------------------------------------------------------------------
NFM 5.53% 8.32% 8.32% 6.32% 7.80%
--------------------------------------------------------------------------------
NZR 5.40% 8.12% 8.78% 6.32% 7.80%
--------------------------------------------------------------------------------
NWI 5.50% 8.27% NA - -
--------------------------------------------------------------------------------
NPV 5.53% 8.38% 6.82% 6.32% 7.80%
--------------------------------------------------------------------------------
NGB 5.42% 8.21% 8.46% 6.32% 7.80%
--------------------------------------------------------------------------------
NNB 5.44% 8.24% 8.35% 6.32% 7.80%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the twelve months ended November 30, 2002, all of the Funds in this report
having at least one year of performance history outperformed the unleveraged,
unmanaged Lehman Brothers Municipal Bond Index. We believe that much of this
outperformance can be attributed to the leveraged structure of these Funds,
which provides the opportunity for additional income for common shareholders
while adding volatility to the Fund's NAV and share price. We also think it can
be attributed to the relatively long leverage-adjusted durations4 of these
Funds, which ranged from 8.78 to 13.52, compared with 8.04 for the Lehman Index.
A longer duration generally should help a Fund to perform well during periods of
declining interest rates, as has been the case over much of the past year.
(Please see the individual Performance Overview pages for each Fund's duration.)
It is difficult to compare the performance of these Funds with the Lipper
Average shown in the table because Lipper combines the performance of many
different funds from different states into one overall multi-state average.
Looking specifically at the Nuveen Funds, we believe that in addition to
leverage and duration their relative performances were also influenced by
factors including call exposure, portfolio trading activity, and the price
movement of individual holdings. For example, NPV holds industrial development
bonds issued for Nekoosa Packaging Corporation, which is owned by
Georgia-Pacific. These bonds are currently trading at distressed levels,
reflecting GP's difficulties with asbestos-related lawsuits as well as the
general struggle faced by many corporate-backed bonds in tandem with the
problems faced by corporations during the past year. This had a direct impact on
NPV's total return over the twelve months ended November 30, 2002.
In addition, NMY holds bonds issued by the Puerto Rico Port Authority for an
American Airlines project. Over the past year, the market value of most
airline-backed bonds has fallen, in part due to the general decline in passenger
volume and in part due to the market's expectation of a bankruptcy declaration
by United Air Lines. (Subsequent to the end of this reporting period, United did
file for bankruptcy protection.) Over the long term, we believe air travel will
remain a major component of transportation in this country, and we think
airline-backed bonds, at their current depressed levels, are positioned to
appreciate in value if and when the outlook for these companies improves.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As the Federal Reserve continued to keep short-term interest rates relatively
low, the dividend-paying capabilities of all of these Funds benefited from their
use of leverage, a strategy that can potentially enhance the dividends paid to
common shareholders. The amount of this benefit is tied in part to the
short-term rates the Funds pay their MuniPreferred, shareholders. Low short-term
rates, such as those currently in effect, can enable the Funds to reduce the
amount of income they pay preferred shareholders, which can leave more earnings
to support common share dividends.
During the year ended November 30, 2002, the relatively low level of short-term
interest rates enabled us to implement three dividend increases in NMY, two in
NPV, and one in NZR. NFM, NGB, and NNB, which were introduced in 2001, continued
to pay attractive monthly dividends during this period, while NWI, which debuted
in September 2002, paid its first dividend in December 2002.
Over the course of the twelve months ended November 30, 2002, the share prices
of NMY, NPV, NGB, and NNB rose, while that of NFM remained relatively flat. For
NZR and NWI, the general weakening of bond prices during October and November
2002 resulted in share prices that were lower than at the start of the period or
at inception. All of the Funds covered in this report were trading at premiums
to their common share net asset values as of the end of this reporting period
(see charts on individual Performance Overview pages).
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 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 31 funds in the Lipper Other States Municipal Debt Funds
category. Fund and Lipper returns assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Maryland 33.5% and Virginia 34%.
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
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED
NOVEMBER 30, 2002?
Over the period, our strategic focus continued to be on working to diversify
Fund holdings, enhance call protection, and position the Funds more defensively
in anticipation of potential changes in the interest rate environment.
Specifically, that included purchasing a number of bonds on or near the 20-year
part of the yield curve. We believe bonds in this maturity range offered yields
similar to those of longer bonds, but with less inherent volatility. We thought
the addition of these long-intermediate bonds would help to moderate the Funds'
durations over time, making the portfolios less sensitive to interest rate
changes while still allowing the Funds to provide competitive yields and
returns.
Over the past year, the addition of these bonds with maturities at or close to
20 years resulted in a shortening of duration in most of these Funds. The one
exception was NPV, where the reinvestment of proceeds from callable bonds into
this part of the yield curve actually led to a modest lengthening of duration.
In addition to an emphasis on yield curve positioning, we also continued to look
for individual issues that we believed could perform well regardless of the
future direction of interest rates. In both Maryland and Virginia, this included
selected purchases in the healthcare sector, which has been one of the top
performers in 2002. Both of these states have strong healthcare systems and,
during the past year, a number of borrowers came to the market to access capital
and thereby enhanced our opportunities to find attractive issues. As of November
30, 2002, we had increased our exposure to healthcare in each of the older
Maryland and Virginia Funds except NZR, which already had a 17% allocation to
this sector. In addition to healthcare bonds in both states, we also found a
number of opportunities to add general obligation and water and sewer bonds in
Virginia.
In the current geopolitical and economic climate, we believed that maintaining
strong credit quality remained a key requirement. As of November 30, 2002, each
of these Funds continued to offer excellent credit quality, with allocations of
bonds rated AAA/U.S. guaranteed and AA ranging from 68% to 88%.
In September 2002, we introduced the new Nuveen Maryland Dividend Advantage
Municipal Fund 3 (NWI). As of November 30, 2002, this Fund had completed its
initial investment phase and was in the process of investing the proceeds from
its MuniPreferred offering. As mentioned earlier, NWI paid its first dividend in
December 2002.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN
PARTICULAR?
In general, our outlook for the fixed income markets remains positive. We
believe the U.S. economy is headed for an eventual recovery, but one that may be
less robust and slower to arrive than some are predicting. We expect inflation
and interest rates to remain relatively low over the near term, while new
municipal volume nationally should continue to be strong, though probably below
the record levels seen in 2002, as issuers take advantage of the low rate
environment for both new issues and refinancings. Given the continued need for
Maryland and Virginia to address budgetary imbalances, issuance is also expected
to remain relatively heavy in these states. Demand for tax-exempt municipal
bonds should remain solid, as investors continue to look for ways to rebalance
their portfolios and reduce overall investment risk.
Over the next two years, we believe that most Nuveen Maryland and Virginia Funds
generally will offer adequate levels of call protection, with call exposure
ranging from zero in NFM, NZR, NWI, NGB and NNB to 20% in NPV and 29% in NMY
during 2003 and 2004. During the past twelve months, we worked to mitigate the
call risk and improve the positions of all the Funds, particularly NPV and NMY,
which mark their 10-year anniversaries in March 2003. While the number of actual
calls in each Fund will depend largely on market interest rates over this time,
we believe the short-term call exposure of these Funds is manageable.
In the months ahead, specific areas of concentration will include individual
security selection and management of the Funds' durations through additional
purchases of high-quality bonds on or near the 20-year part of the yield curve.
This should help us moderate the durations of these Funds and enhance our
ability to control portfolio volatility. While the projected budget deficits in
Maryland and Virginia could result in heavy issuance and increased trading
opportunities for us, we will continue to monitor this situation for potential
impact on the states' credit ratings and position our portfolios accordingly. In
general, we plan to remain focused on strategies that can add value for our
shareholders and provide support for the Funds' long-term dividend-payment
capabilities.
4
Nuveen Maryland Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2002
NMY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 52%
AA 19%
A 17%
BBB 7%
NR 2%
BB or Lower 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.62
--------------------------------------------------
Common Share Net Asset Value $14.33
--------------------------------------------------
Market Yield 5.65%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.07%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.50%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $151,072
--------------------------------------------------
Average Effective Maturity (Years) 18.79
--------------------------------------------------
Leverage-Adjusted Duration 8.78
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.17% 8.37%
--------------------------------------------------
5-Year 7.00% 5.84%
--------------------------------------------------
Since Inception 5.98% 5.89%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Housing/Multifamily 17%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------\
Bar Chart:
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0695
Jan 0.0695
Feb 0.0695
Mar 0.0715
Apr 0.0715
May 0.0715
Jun 0.0725
Jul 0.0725
Aug 0.0725
Sep 0.0735
Oct 0.0735
Nov 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
WEEKLY CLOSING PRICE
12/1/01 15.38
15.66
15.77
15.60
15.70
15.78
15.90
15.67
15.71
15.89
15.77
15.70
15.92
15.40
15.69
14.63
14.60
15.01
14.73
14.80
14.88
15.59
15.57
15.34
15.47
15.73
15.68
15.60
15.65
16.05
16.15
16.90
16.40
16.80
16.46
16.20
15.85
15.97
16.00
16.14
16.14
16.15
16.42
16.68
16.80
15.85
15.29
15.25
15.36
15.58
15.60
11/30/02 15.62
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 33.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2001 of $0.0024 per share.
5
Nuveen Maryland Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2002
NFM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 43%
AA 25%
A 17%
BBB 9%
NR 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.20
--------------------------------------------------
Common Share Net Asset Value $14.55
--------------------------------------------------
Market Yield 5.53%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.90%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.32%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $60,499
--------------------------------------------------
Average Effective Maturity (Years) 22.44
--------------------------------------------------
Leverage-Adjusted Duration 11.28
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 5.34% 8.32%
--------------------------------------------------
Since Inception 6.03% 6.60%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Housing/Single Family 16%
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Bar chart:
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.07
Jan 0.07
Feb 0.07
Mar 0.07
Apr 0.07
May 0.07
Jun 0.07
Jul 0.07
Aug 0.07
Sep 0.07
Oct 0.07
Nov 0.07
Line chart:
Share Price Performance
Weekly Closing Price
12/1/01 14.95
15.16
15.25
15.20
15.40
15.52
15.55
16.05
16.10
16.00
15.57
15.57
15.70
15.85
15.71
15.30
15.40
15.20
14.79
15.01
15.00
15.40
15.43
15.15
15.40
15.44
15.48
15.70
15.55
15.62
15.93
16.03
15.95
16.25
15.97
15.77
15.93
15.61
15.80
15.79
15.76
15.80
15.65
15.82
15.91
15.63
14.70
14.83
15.06
15.00
15.10
11/30/02 15.20
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 33.5%.
6
Nuveen Maryland Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2002
NZR
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 47%
AA 31%
A 15%
BBB 5%
NR 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.68
--------------------------------------------------
Common Share Net Asset Value $14.51
--------------------------------------------------
Market Yield 5.40%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.71%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.12%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $60,476
--------------------------------------------------
Average Effective Maturity (Years) 22.30
--------------------------------------------------
Leverage-Adjusted Duration 13.41
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 2.84% 8.78%
--------------------------------------------------
Since Inception 3.14% 6.32%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 29%
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Housing/Multifamily 11%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Bar chart:
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.065
Jan 0.065
Feb 0.065
Mar 0.065
Apr 0.065
May 0.065
Jun 0.065
Jul 0.065
Aug 0.065
Sep 0.066
Oct 0.066
Nov 0.066
Line chart:
Share Price Performance
Weekly Closing Price
12/1/01 15.00
14.29
13.77
13.80
13.48
13.95
14.08
14.42
14.61
14.74
14.59
14.68
14.76
15.00
14.79
14.37
14.15
14.13
13.99
14.16
14.46
14.25
14.56
14.35
14.44
14.61
14.81
14.94
14.91
15.15
14.85
14.90
14.94
14.85
14.94
14.95
14.79
14.75
14.83
15.10
14.60
14.86
15.56
15.08
15.35
14.80
14.60
14.95
14.72
14.91
14.44
11/30/02 14.68
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 33.5%.
7
Nuveen Maryland Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of November 30, 2002
NWI
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 56%
AA 28%
A 14%
BBB 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.30
--------------------------------------------------
Common Share Net Asset Value $13.63
--------------------------------------------------
Market Yield 5.50%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.86%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.27%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $72,881
--------------------------------------------------
Average Effective Maturity (Years) 24.22
--------------------------------------------------
Leverage-Adjusted Duration 19.05
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 9/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception -4.23% -4.43%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 23%
--------------------------------------------------
Tax Obligation/General 20%
--------------------------------------------------
Education and Civic Organizations 16%
--------------------------------------------------
Housing/Multifamily 13%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
THE FUND PAID ITS FIRST REGULAR MONTHLY DIVIDEND OF $0.0655 PER SHARE ON
DECEMBER 2, 2002.
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
9/27/02 15.01
15.02
15.00
15.00
15.00
15.00
15.00
14.73
14.49
11/30/02 14.30
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 33.5%.
8
Nuveen Virginia Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2002
NPV
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 50%
AA 24%
A 17%
BBB 3%
NR 5%
BB or Lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.17
--------------------------------------------------
Common Share Net Asset Value $14.89
--------------------------------------------------
Market Yield 5.53%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.90%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.38%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $130,776
--------------------------------------------------
Average Effective Maturity (Years) 19.45
--------------------------------------------------
Leverage-Adjusted Duration 9.00
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.42% 6.82%
--------------------------------------------------
5-Year 7.36% 6.17%
--------------------------------------------------
Since Inception 6.41% 6.48%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Water and Sewer 13%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Bar chart:
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0725
Jan 0.0725
Feb 0.0725
Mar 0.0725
Apr 0.0725
May 0.0725
Jun 0.0735
Jul 0.0735
Aug 0.0735
Sep 0.0745
Oct 0.0745
Nov 0.0745
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
12/1/01 16.05
15.75
15.65
15.70
15.83
16.07
16.19
16.31
16.06
16.56
16.65
16.57
16.74
16.58
16.31
15.92
15.69
15.40
15.68
15.19
15.33
15.89
15.85
15.97
16.14
16.17
16.47
16.55
17.10
16.80
17.10
17.10
17.20
17.00
17.17
17.32
17.40
17.40
16.98
17.20
16.99
17.33
17.40
17.25
17.00
16.14
16.38
16.65
16.33
16.30
16.48
11/30/02 16.17
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 34%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2001 of $0.0028 per share.
9
Nuveen Virginia Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2002
NGB
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 48%
AA 27%
A 15%
BBB 5%
NR 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.61
--------------------------------------------------
Common Share Net Asset Value $14.46
--------------------------------------------------
Market Yield 5.42%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.74%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.21%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $45,075
--------------------------------------------------
Average Effective Maturity (Years) 20.59
--------------------------------------------------
Leverage-Adjusted Duration 11.59
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.13% 8.46%
--------------------------------------------------
Since Inception 7.70% 6.29%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Education and Civic Organizations 8%
--------------------------------------------------
Bar chart:
2001-2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0705
Jan 0.0705
Feb 0.0705
Mar 0.0705
Apr 0.0705
May 0.0705
Jun 0.0705
Jul 0.0705
Aug 0.0705
Sep 0.0705
Oct 0.0705
Nov 0.0705
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
12/1/01 15.50
15.33
15.00
14.65
15.11
15.31
15.35
15.50
15.90
15.85
15.57
15.60
15.70
15.47
15.30
14.9
14.80
14.25
14.36
14.05
14.18
14.60
14.75
14.69
14.86
15.09
15.10
15.25
15.15
14.71
15.00
15.14
15.29
15.04
15.82
15.92
15.75
15.63
15.60
15.60
15.80
15.65
15.55
16.68
16.53
15.52
15.15
15.22
15.10
15.21
15.10
11/30/02 15.61
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 34%.
10
Nuveen Virginia Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2002
NNB
Pie chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 53%
AA 35%
A 7%
BBB 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.23
--------------------------------------------------
Common Share Net Asset Value $14.70
--------------------------------------------------
Market Yield 5.44%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.77%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.24%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $83,543
--------------------------------------------------
Average Effective Maturity (Years) 22.44
--------------------------------------------------
Leverage-Adjusted Duration 13.52
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.70% 8.35%
--------------------------------------------------
Since Inception 6.84% 8.05%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 20%
--------------------------------------------------
Water and Sewer 19%
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Utilities 7%
--------------------------------------------------
Bar chart:
2002 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.069
Feb 0.069
Mar 0.069
Apr 0.069
May 0.069
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.069
Oct 0.069
Nov 0.069
Line chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
12/1/01 15.07
15.05
14.60
15.00
14.80
14.85
14.85
14.85
14.90
14.95
14.88
14.90
14.99
14.90
14.75
14.60
14.00
14.50
13.70
14.30
14.25
14.55
14.60
14.40
14.72
14.90
14.75
14.60
14.81
14.90
14.98
14.50
14.84
14.70
14.85
15.17
15.25
14.96
15.19
15.45
15.45
15.56
15.50
15.72
15.55
14.99
14.90
15.04
15.10
14.96
15.00
11/30/02 15.23
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%. 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 34%.
11
Shareholder
MEETING REPORT
The Shareholder Meeting was held October 23, 2002 in Chicago at Nuveen's
headquarters.
NMY MFM
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Common Shares
Shares Series-W Series-TH Shares Series-M
====================================================================================================================================
Robert P. Bremner
For 10,063,865 1,369 1,760 4,090,766 1,169
Withhold 55,549 -- -- 22,225 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,119,414 1,369 1,760 4,112,991 1,169
====================================================================================================================================
Lawrence H. Brown
For 10,063,655 1,369 1,760 4,090,766 1,169
Withhold 55,759 -- -- 22,225 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,119,414 1,369 1,760 4,112,991 1,169
====================================================================================================================================
Anne E. Impellizzeri
For 10,062,364 1,369 1,760 4,090,766 1,168
Withhold 57,050 -- -- 22,225 1
------------------------------------------------------------------------------------------------------------------------------------
Total 10,119,414 1,369 1,760 4,112,991 1,169
====================================================================================================================================
Peter R. Sawers
For 10,063,865 1,368 1,760 4,090,766 1,169
Withhold 55,549 1 -- 22,225 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,119,414 1,369 1,760 4,112,991 1,169
====================================================================================================================================
Judith M. Stockdale
For 10,058,598 1,369 1,760 4,089,766 1,169
Withhold 60,816 -- -- 23,225 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,119,414 1,369 1,760 4,112,991 1,169
====================================================================================================================================
William J. Schneider
For -- 1,369 1,760 -- 1,169
Withhold -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,369 1,760 -- 1,169
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,369 1,760 -- 1,168
Withhold -- -- -- -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,369 1,760 -- 1,169
====================================================================================================================================
12
NZR NPV
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Common Shares Shares
Shares Series-F Shares Series-T Series-TH
====================================================================================================================================
Robert P. Bremner
For 4,099,291 1,280 8,198,034 794 1,424
Withhold 28,291 -- 76,128 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total 4,127,582 1,280 8,274,162 794 1,452
====================================================================================================================================
Lawrence H. Brown
For 4,095,314 1,280 8,202,808 794 1,424
Withhold 32,268 -- 71,354 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total 4,127,582 1,280 8,274,162 794 1,452
====================================================================================================================================
Anne E. Impellizzeri
For 4,095,314 1,280 8,201,496 794 1,424
Withhold 32,268 -- 72,666 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total 4,127,582 1,280 8,274,162 794 1,452
====================================================================================================================================
Peter R. Sawers
For 4,095,314 1,280 8,198,237 794 1,424
Withhold 32,268 -- 75,925 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total 4,127,582 1,280 8,274,162 794 1,452
====================================================================================================================================
Judith M. Stockdale
For 4,098,591 1,280 8,198,324 794 1,424
Withhold 28,991 -- 75,838 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total 4,127,582 1,280 8,274,162 794 1,452
====================================================================================================================================
William J. Schneider
For -- 1,280 -- 794 1,424
Withhold -- -- -- -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,280 -- 794 1,452
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,280 -- 794 1,424
Withhold -- -- -- -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,280 -- 794 1,452
====================================================================================================================================
13
Shareholder
MEETING REPORT (continued)
NGB NNB
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred
Common Shares Common Shares
Shares Series-W Shares Series-W
====================================================================================================================================
Robert P. Bremner
For 3,079,781 943 5,590,998 1,664
Withhold 5,144 -- 28,520 8
------------------------------------------------------------------------------------------------------------------------------------
Total 3,084,925 943 5,619,518 1,672
====================================================================================================================================
Lawrence H. Brown
For 3,078,076 943 5,586,119 1,664
Withhold 6,849 -- 33,399 8
------------------------------------------------------------------------------------------------------------------------------------
Total 3,084,925 943 5,619,518 1,672
====================================================================================================================================
Anne E. Impellizzeri
For 3,080,781 943 5,577,338 1,664
Withhold 4,144 -- 42,180 8
------------------------------------------------------------------------------------------------------------------------------------
Total 3,084,925 943 5,619,518 1,672
====================================================================================================================================
Peter R. Sawers
For 3,079,076 943 5,586,119 1,664
Withhold 5,849 -- 33,399 8
------------------------------------------------------------------------------------------------------------------------------------
Total 3,084,925 943 5,619,518 1,672
====================================================================================================================================
Judith M. Stockdale
For 3,079,076 943 5,590,998 1,664
Withhold 5,849 -- 28,520 8
------------------------------------------------------------------------------------------------------------------------------------
Total 3,084,925 943 5,619,518 1,672
====================================================================================================================================
William J. Schneider
For -- 943 -- 1,664
Withhold -- -- -- 8
------------------------------------------------------------------------------------------------------------------------------------
Total -- 943 -- 1,672
====================================================================================================================================
Timothy R. Schwertfeger
For -- 943 -- 1,664
Withhold -- -- -- 8
------------------------------------------------------------------------------------------------------------------------------------
Total -- 943 -- 1,672
====================================================================================================================================
14
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2%
$ 3,440 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 $ 3,329,817
Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.4%
1,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa3 1,049,220
Revenue Bonds (Collegiate Housing Foundation - Salisbury Project),
Series 1999A, 6.000%, 6/01/19
2,250 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa2 2,287,035
Revenue Bonds (Collegiate Housing Foundation - University
Courtyard Project), Series 1999A, 5.750%, 6/01/24
910 Maryland Economic Development Corporation, Utility Infrastructure 7/11 at 100.00 AAA 976,557
Revenue Bonds, (University of Maryland - College Park Project),
Series 2001, 5.375%, 7/01/16
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Bulls School Issue, Series 2000:
750 5.250%, 7/01/25 1/11 at 101.00 AAA 772,170
500 5.250%, 7/01/30 1/11 at 101.00 AAA 513,175
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 1,096,760
1,500 5.625%, 7/01/27 7/07 at 102.00 AA 1,573,440
1,400 Maryland Health and Higher Educational Facilities Authority, Revenue 6/11 at 100.00 Baa1 1,411,088
Bonds, Maryland Institute College of Art, Series 2001,
5.625%, 6/01/36
9,445 Morgan State University, Maryland, Academic Fees and Auxiliary No Opt. Call AAA 11,021,465
Facilities Fees, Revenue Refunding Bonds, Series 1993,
6.100%, 7/01/20
4,000 University of Puerto Rico, University System Revenue Bonds,
Series O, 5.375%, 6/01/30 6/05 at 101.00 AAA 4,134,640
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.9%
City of Gaithersburg, Maryland, Hospital Facilities Refunding
and Improvement Revenue Bonds (Shady Grove Adventist Hospital),
Series 1995:
2,550 6.500%, 9/01/12 No Opt. Call AAA 3,061,709
3,015 5.500%, 9/01/15 9/05 at 102.00 AAA 3,141,901
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 6/09 at 101.00 A 2,077,720
Bonds, Kaiser Permanente, Series 1998A, 5.375%, 7/01/15
750 Maryland Health and Higher Educational Facilities Authority, Revenue 7/10 at 101.00 Baa1 809,303
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 7/08 at 101.00 AAA 1,017,070
1,250 5.000%, 7/01/29 7/08 at 101.00 AAA 1,250,288
1,500 Maryland Health and Higher Educational Facilities Authority, Revenue 1/08 at 101.00 Aaa 1,506,390
Bonds, Upper Chesapeake Hospitals Issue, Series 1998A,
5.125%, 1/01/38
1,500 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A+ 1,425,345
Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
1,500 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 A 1,578,630
Bonds, University of Maryland Medical System, Series 2002,
6.000%, 7/01/22
4,500 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 Baa1 4,538,250
Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
3,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 A3 2,855,460
Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35
15
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 3,250 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 A3 $ 3,266,543
Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32
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 588,704
3,080 5.375%, 7/01/14 7/04 at 102.00 B3 2,044,566
6,000 5.300%, 7/01/24 7/04 at 102.00 B3 3,953,340
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 26.3%
4,000 Anne Arundel County, Maryland, Multifamily Housing Revenue Bonds No Opt. Call BBB- 4,100,480
(Woodside Apartments Project), Series 1994, 7.450%, 12/01/24
(Alternative Minimum Tax) (Mandatory put 12/01/03)
1,795 County Commissioners of Charles County, Maryland, Mortgage 5/05 at 102.00 AAA 1,878,270
Revenue Refunding Bonds (Holly Station IV Townhouses
Project - FHA-Insured Mortgage Loan), Series 1995A,
6.450%, 5/01/26
Howard County, Maryland, Mortgage Revenue Refunding Bonds
(FHA-Insured Mortgage Loan - Normandy Woods III Apartments
Project), Series 1996A:
700 6.000%, 7/01/17 7/06 at 102.00 AAA 723,394
2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,054,040
1,130 Community Development Administration, Maryland, Department of 5/03 at 102.00 Aa2 1,159,199
Housing and Community Development, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series B,
6.625%, 5/15/23
2,500 Community Development Administration, Maryland, Department of 1/09 at 101.00 Aa2 2,518,800
Housing and Community Development, Housing Revenue Bonds,
1999 Series A, 5.350%, 7/01/41 (Alternative Minimum Tax)
880 Community Development Administration, Maryland, Department of 1/10 at 100.00 Aa2 929,350
Housing and Community Development, Housing Revenue Bonds,
Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax)
1,450 Community Development Administration, Maryland, Department of 2/11 at 101.00 Aaa 1,531,606
Housing and Community Development, Multifamily Development
Revenue Bonds, Edgewater Village Apartments Project, Series
2000B, 5.800%, 8/01/20 (Alternative Minimum Tax)
3,075 Community Development Administration, Maryland, Department of 5/03 at 102.00 Aa3 3,132,226
Housing and Community Development, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), Series 1993D,
6.050%, 5/15/24
2,000 Housing Opportunities Commission of Montgomery County, Maryland, 7/05 at 102.00 Aa2 2,087,300
Multifamily Housing Revenue Bonds, 1995 Series A.,
5.900%, 7/01/15
1,500 Housing Opportunities Commission of Montgomery County, Maryland, 7/06 at 102.00 Aaa 1,558,605
Multifamily Housing Revenue Bonds, 1996 Series B,
5.900%, 7/01/26
3,830 Housing Opportunities Commission of Montgomery County, Maryland, 7/08 at 101.00 Aaa 3,858,687
Multifamily Housing Development Bonds, 1998 Series A,
5.200%, 7/01/30
2,000 Housing Opportunities Commission of Montgomery County, Maryland, 7/10 at 100.00 Aaa 2,122,760
Multifamily Housing Development Bonds, Series 2000A,
6.100%, 7/01/30
1,000 Housing Authority of Prince George's County, Maryland, Mortgage 1/03 at 102.00 AAA 1,021,510
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 9/03 at 102.00 AAA 1,122,624
1,930 6.000%, 9/20/15 9/03 at 102.00 AAA 1,984,426
1,500 Housing Authority of Prince George's County, Maryland, Mortgage 12/04 at 102.00 AAA 1,571,070
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 2,081,840
1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,729,452
1,000 Housing Authority of Prince George's County, Maryland, Mortgage 5/03 at 100.00 AAA 1,000,410
Revenue Refunding Bonds (GNMA Collateralized - Foxglenn
Apartments Project), Series 1998A, 5.450%, 11/20/14 (Alternative
Minimum Tax)
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 540 Housing Authority of Prince George's County, Maryland, Mortgage 9/09 at 102.00 AAA $ 569,263
Revenue Bonds (GNMA Collateralized - University Landing at
Langley Apartments Project), Series 1999, 6.100%, 3/20/41
(Alternative Minimum Tax)
1,000 City of Salisbury, Maryland, Mortgage Revenue Refunding Bonds 12/04 at 102.00 AAA 1,038,750
(FHA-Insured Mortgage Loan - College Lane Apartments Project),
Series 1995A, 6.600%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.9%
370 Community Development Administration, Department of Housing and 4/04 at 102.00 Aa2 376,897
Community Development, State of Maryland, Single Family
Program, 1994 First Series, 5.900%, 4/01/11
1,000 Community Development Administration, Department of Housing and 4/04 at 102.00 Aa2 1,038,450
Community Development, State of Maryland, Single Family
Program Bonds, 1994 Fourth Series, 6.450%, 4/01/14
2,100 Community Development Administration, Department of Housing and 4/04 at 102.00 Aa2 2,173,122
Community Development, State of Maryland, Single Family Program
Bonds, 1994 Fifth Series, 6.750%, 4/01/26 (Alternative Minimum Tax)
950 Community Development Administration, Department of Housing and 9/09 at 100.00 Aa2 976,980
Community Development, State of Maryland, Residential Revenue
Bonds, 1999 Series H, 6.250%, 3/01/31 (Alternative Minimum Tax)
1,810 Community Development Administration, Department of Housing and 9/09 at 100.00 Aa2 1,899,378
Community Development, State of Maryland, Residential Revenue
Bonds, 2000 Series B, 6.150%, 9/01/32 (Alternative Minimum Tax)
1,800 Community Development Administration, Department of Housing and 3/10 at 100.00 Aa2 1,902,816
Community Development, State of Maryland, Residential Revenue
Bonds, 2000 Series D, 6.250%, 9/01/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing and 4/06 at 102.00 Aa2 1,044,310
Community Development, State of Maryland, Single Family Program
Bonds, 1996 Sixth Series, 6.200%, 4/01/22 (Alternative
Minimum Tax)
1,095 Housing Opportunities Commission of Montgomery County, Maryland, 7/04 at 102.00 Aa2 1,141,888
Single Family Mortgage Revenue Bonds, 1994 Series A,
6.600%, 7/01/14
620 Housing Authority of Prince George's County, Maryland, GNMA/FNMA 6/04 at 102.00 AAA 635,605
Collateralized Single Family Mortgage Revenue Bonds, Series 1994A,
6.350%, 6/01/11 (Alternative Minimum Tax)
1,665 Housing Authority of Prince George's County, Maryland, 8/07 at 102.00 AAA 1,730,468
FHLMC/FNMA/GNMA Collateralized, Single Family Mortgage
Revenue Bonds, Series 1997, 5.625%, 8/01/17
(Alternative Minimum Tax)
465 Housing Authority of Prince George's County, Maryland, 8/10 at 100.00 AAA 488,682
FHLMC/FNMA/GNMA Collateralized, Single Family Mortgage
Revenue Bonds, Series 2000A, 6.150%, 8/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.9%
1,000 Carroll County, Maryland, Revenue Bonds, EMA Obligated Group Issue 1/09 at 101.00 AA 1,041,150
(Fairhaven and Copper Ridge), Refunding Revenue Bonds,
Series 1999A, 5.625%, 1/01/25
1,830 Maryland Economic Development Corporation (Health and Mental 4/11 at 102.00 N/R 1,859,115
Hygiene Providers Facilities Acquisition Program), Revenue Bonds,
Series 1996A, 7.625%, 4/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.6%
Baltimore County Metropolitan District, Maryland, General Obligation
Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,523,400
2,000 5.000%, 6/01/26 6/11 at 101.00 AAA 2,017,080
2,500 Baltimore County, Maryland, General Obligation Consolidated Public 8/12 at 100.00 AAA 2,601,975
Improvement Bonds, Series 2002, 5.000%, 8/01/18
1,000 City of Baltimore, Maryland, General Obligation Consolidated Public No Opt. Call A+ 1,198,800
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 1,021,150
1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,014,780
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AA 3,171,300
Bonds of 1999, 5.250%, 7/01/18
500 Frederick County, Maryland, Special Obligation Bonds, Villages 7/10 at 102.00 AA 520,850
of Lake Linganore Community Development Authority, Series 2001A,
5.700%, 7/01/29
575 Howard County, Maryland, General Obligation Public Improvement 2/12 at 100.00 AAA 609,632
Project and Refunding Bonds, Series 2002A, 5.250%, 8/15/18
17
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Montgomery County, Maryland, General Obligation Consolidated Public 10/11 at 101.00 AAA $ 2,131,580
Improvement Bonds, Series 2001 Refunding, 5.250%, 10/01/18
925 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 960,899
Series 2000A, 6.000%, 6/01/20
1,000 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101.00 AAA 1,050,720
Public Improvement Bonds, Series 2001, 5.250%, 12/01/20
3,000 Prince George's County, Maryland, General Obligation Consolidated 9/12 at 101.00 AA 2,756,640
Public Improvement Bonds, Series 2002, 4.100%, 9/15/19
460 Wicomico County, Maryland, General Obligation Public Improvement 12/09 at 101.00 AAA 506,469
Bonds of 1999, 5.750%, 12/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.5%
1,870 Howard County, Maryland, Metropolitan District General Obligation 2/12 at 100.00 AAA 1,982,630
Project and Refunding Bonds, 2002 Series A, 5.250%, 8/15/18
1,465 Maryland Department of Housing and Community Development, 6/08 at 101.00 Aaa 1,488,088
Community Development Administration, Infrastructure Financing
Bonds (MBIA Insured), 1998 Series B, 5.200%, 6/01/28
4,250 Department of Transportation, State of Maryland, County No Opt. Call AA 4,742,660
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,875 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,989,731
Maryland Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
Department of Transportation, State of Maryland, 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+ 912,138
930 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 958,579
4,455 Maryland Stadium Authority, Sports Facilities Lease Revenue Bonds, 3/06 at 101.00 AAA 4,828,374
Series 1996, 5.750%, 3/01/18
1,000 Montgomery County, Maryland, Lease Revenue Bonds, Metrorail 6/12 at 100.00 AA 1,017,790
Garage Projects, Series 2002, 5.000%, 6/01/21
675 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 AA 695,311
Germantown Development District, Senior Series 2002A,
5.500%, 7/01/27
635 New Baltimore City Board of School Commissioners, Maryland, School 11/10 at 100.00 AA+ 677,964
System Revenue Bonds, Series 2000, 5.125%, 11/01/15
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/16 at 100.00 A 1,047,320
Bonds, Series Y of 1996, 5.500%, 7/01/36
2,200 Puerto Rico Public Building Authority, Public Education and Health 7/03 at 101.50 A- 2,275,790
Facilities Refunding Bonds, Series M, Guaranteed by the
Commonwealth of Puerto Rico, 5.750%, 7/01/15
2,100 Puerto Rico Municipal Finance Agency, General Obligation Bonds, 8/12 at 100.00 AAA 2,189,628
2002 Series A, 5.250%, 8/01/21 (WI, settling 12/05/02)
2,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 2,220,420
Islands Gross Receipts Tax Loan Note), 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 1,129,680
1,205 5.250%, 6/01/21 6/10 at 100.00 AAA 1,243,813
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.8%
1,060 City of Baltimore, Maryland, Refunding Revenue Bonds, Parking No Opt. Call AAA 1,152,029
System Facilities, Series 1998A, 5.250%, 7/01/17
5,500 Maryland Transportation Authority, Special Obligation Revenue Bonds, 7/04 at 102.00 AAA 5,918,165
Qualified Airport Bonds, Baltimore/Washington International Airport
Projects, Series 1994-A, 6.250%, 7/01/14 (Alternative Minimum Tax)
2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 1996 6/06 at 102.00 BB- 913,228
Series A (American Airlines, Inc. Project), 6.250%, 6/01/26
(Alternative Minimum Tax)
2,000 Washington Metropolitan Area Transit Authority, District of Columbia, No Opt. Call AAA 2,274,220
Gross Revenue Transit Refunding Bonds, Series 1993,
6.000%, 7/01/07
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.2%
$ 2,000 City of Baltimore, Maryland, Water Projects and Refunding Revenue 7/08 at 101.00 AAA $ 2,018,680
Bonds, Series 1998A, 5.000%, 7/01/28
2,000 City of Baltimore, Maryland, Water Projects and Refunding Revenue No Opt. Call AAA 2,038,440
Bonds, Series 1994A, 5.000%, 7/01/24
1,000 City of Baltimore, Maryland, Project and Refunding Revenue Bonds, 7/12 at 100.00 AAA 1,130,790
Water Projects, Series 1996A, 5.500%, 7/01/26
(Pre-refunded to 7/01/12)
1,500 City of Baltimore, Maryland, Project and Refunding Revenue Bonds, 7/10 at 100.00 AAA 1,702,755
Wastewater Projects, Series 2000A, 5.625%, 7/01/30
(Pre-refunded to 7/01/10)
1,130 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 1,244,390
Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10)
1,875 Maryland Health and Higher Educational Facilities Authority, Revenue 7/03 at 102.00 AAA 1,956,038
Bonds, Good Samaritan Hospital Issue, Series 1993, 5.750%, 7/01/19
3,125 Maryland Health and Higher Educational Facilities Authority, Revenue 7/03 at 102.00 Aaa 3,171,813
Bonds, Howard County General Hospital Issue, Series 1993,
5.500%, 7/01/25
2,560 Maryland Health and Higher Educational Facilities Authority, Revenue No Opt. Call AAA 2,598,065
Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/27
1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,053,180
Bonds, 2000 Series A, 5.500%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 20.5%
6,000 Anne Arundel County, Maryland, Pollution Control Revenue Refunding 4/04 at 102.00 A2 6,192,180
Bonds (Baltimore Gas and Electric Company Project), Series 1994,
6.000%, 4/01/24
6,500 Calvert County, Maryland, Pollution Control Revenue Refunding Bonds 7/04 at 102.00 A2 6,716,710
(Baltimore Gas and Electric Company Project), Series 1993,
5.550%, 7/15/14
3,000 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102.00 N/R 3,017,220
Cogeneration Revenue Bonds, AES Warrior Run Project, Series
1995, 7.400%, 9/01/19 (Alternative Minimum Tax)
9,600 Montgomery County, Maryland, Solid Waste System Revenue Bonds, 6/03 at 102.00 AAA 9,949,920
1993 Series A, 5.875%, 6/01/13 (Alternative Minimum Tax)
5,000 Prince George's County, Maryland, Pollution Control Revenue Refunding 1/03 at 102.00 A1 5,109,900
Bonds (Potomac Electric Project), 1993 Series, 6.375%, 1/15/23
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.7%
1,000 City of Baltimore, Maryland, Water Projects and Refunding Revenue No Opt. Call AAA 1,009,860
Bonds, Series 1994A, 5.000%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 223,220 Total Long-Term Investments (cost $222,137,193) - 150.9% 228,016,283
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 2,155,301
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (79,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 151,071,584
====================================================================================================================
(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.
19
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.5%
$ 1,000 Northeast Maryland Waste Disposal Authority, Resource Recovery 1/09 at 101.00 BBB $ 935,980
Revenue Bonds, Baltimore RESCO Retrofit Project, Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.8%
1,720 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 1,664,908
Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.7%
Frederick County, Maryland, Educational Facilities Revenue Bonds,
Mount Saint Mary's College, Series 2001A:
465 5.700%, 9/01/20 3/10 at 101.00 BBB 471,092
1,000 5.750%, 9/01/25 3/10 at 101.00 BBB 1,004,790
500 5.800%, 9/01/30 3/10 at 101.00 BBB 503,960
1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 A 1,880,316
Revenue Bonds, University Village at Sheppard Pratt,
Series 2001, 6.000%, 7/01/33
1,000 Maryland Economic Development Corporation, Utility Infrastructure 7/11 at 100.00 AAA 1,021,310
Revenue Bonds, University of Maryland, College Park Project,
Series 2001, 5.000%, 7/01/19
1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 1,531,395
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School Issue, 6.000%, 7/01/31
625 Maryland Health and Higher Educational Facilities Authority, Revenue 6/11 at 100.00 Baa1 625,206
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 216,395
410 5.375%, 2/01/29 2/09 at 101.00 BBB 400,955
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.0%
2,725 Maryland Health and Higher Educational Facilities Authority, Revenue 6/09 at 101.00 A 2,830,894
Bonds, Kaiser Permanente, Series 1998A, 5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/08 at 102.00 A2 952,140
Bonds, Calvert Memorial Hospital Issue, Series 1998,
5.000%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/08 at 101.00 AAA 1,005,450
Bonds, Anne Arundel Medical Center Issue, Series 1998,
5.125%, 7/01/28
570 Maryland Health and Higher Educational Facilities Authority, Revenue 7/08 at 101.00 A3 546,465
Bonds, Union Hospital of Cecil County, Series 1998 Refunding,
5.100%, 7/01/22
1,250 Maryland Health and Higher Educational Facilities Authority, Revenue 5/11 at 100.00 AA- 1,234,400
Bonds, Johns Hopkins Hospital Issue, Series 2001, 5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A- 988,730
Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A+ 950,230
Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A 1,968,080
Bonds, University of Maryland Medical System, Series 2001,
5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 Baa1 1,025,950
Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
1,250 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 A3 1,189,775
Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35
20 Prince George's County, Maryland, Project and Refunding Revenue 7/04 at 102.00 B3 13,178
Bonds, Dimensions Health Corporation Issue, Series 1994,
5.300%, 7/01/24
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.9%
$ 750 Baltimore County, Maryland, Mortgage Revenue Refunding Bonds 10/08 at 102.00 AAA $ 754,050
(GNMA Collateralized - Cross Creek Apartments Project),
Series 1998A, 5.250%, 10/20/33
2,000 Community Development Administration, Department of Housing and 7/08 at 101.00 Aa2 2,046,980
Community Development, State of Maryland Housing Revenue
Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax)
850 Community Development Administration, Department of Housing and 5/11 at 100.00 Aa3 858,390
Community Development, State of Maryland, Multifamily Housing
Revenue Bonds, Insured Mortgage Loan, Series 2001B, 5.350%,
5/15/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing and 12/11 at 100.00 Aaa 1,020,290
Community Development, State of Maryland, Multifamily Housing
Revenue Bonds, Princess Anne Apartments Project, Series 2001D,
5.450%, 12/15/33 (Alternative Minimum Tax)
750 Housing Opportunities Commission of Montgomery County, Maryland, 7/08 at 101.00 Aaa 753,690
Multifamily Housing Development Bonds, Series 1998A, 5.250%,
7/01/29 (Alternative Minimum Tax)
2,000 Housing Opportunities Commission of Montgomery County, Maryland, 7/10 at 100.00 Aaa 2,113,720
Multifamily Housing Development Bonds, Series 2000B, 6.200%,
7/01/30 (Alternative Minimum Tax)
2,000 Housing Opportunities Commission of Montgomery County, Maryland, 7/11 at 100.00 Aaa 2,051,400
Multifamily Housing Development Bonds, Series 2001A, 5.600%,
7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 24.7%
195 Community Development Administration, Department of Housing and 9/09 at 100.00 Aa2 204,446
Community Development, State of Maryland, Residential Housing
Revenue Bonds, 1997 Series E, 5.700%, 9/01/17
3,000 Community Development Administration, Department of Housing and 9/09 at 100.00 Aa2 3,126,870
Community Development, State of Maryland, Residential Revenue
Bonds, 2000 Series G, 5.950%, 9/01/29 (Alternative Minimum Tax)
1,650 Community Development Administration, Department of Housing and 9/10 at 100.00 Aa2 1,713,228
Community Development, State of Maryland, Residential Revenue
Bonds, Series H, 5.800%, 9/01/32 (Alternative Minimum Tax)
3,125 Community Development Administration, Department of Housing and 10/10 at 100.00 Aa2 3,194,938
Community Development, State of Maryland, Single Family Program
Bonds, First Series 2001, 5.000%, 4/01/17
1,000 Community Development Administration, Department of Housing and 9/10 at 100.00 Aa2 1,017,230
Community Development, State of Maryland, Residential Revenue
Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing and 3/11 at 100.00 Aa2 1,027,560
Community Development, State of Maryland, Residential Revenue
Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative Minimum Tax)
3,000 Housing Opportunities Commission of Montgomery County, Maryland, 7/07 at 102.00 Aa2 3,185,340
Single Family Mortgage Revenue Bonds, 1997 Series A,
5.750%, 7/01/13
1,500 Housing Authority of Prince George's County, Maryland, 8/07 at 102.00 AAA 1,548,450
FHLMC/FNMA/GNMA Collateralized, Single Family Mortgage
Revenue Bonds, Series 1997, 5.750%, 8/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 4/11 at 101.00 N/R 1,013,460
Bonds, Collington Episcopal Life, Series 2001A, 6.750%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.9%
Anne Arundel County, Maryland, Various Purpose General Obligation
Bonds, Series 2001:
580 4.800%, 2/15/18 2/11 at 101.00 AA+ 591,936
900 5.000%, 2/15/28 2/11 at 101.00 AA+ 905,229
Baltimore County Metropolitan District, Maryland, General Obligation
Bonds, 67th Issue:
1,500 5.000%, 6/01/26 6/11 at 101.00 AAA 1,512,810
3,500 5.000%, 6/01/27 6/11 at 101.00 AAA 3,528,735
1,500 Baltimore County, Maryland, General Obligation Consolidated Public 8/12 at 100.00 AAA 1,561,185
Improvement Bonds, Series 2002, 5.000%, 8/01/18
1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA 1,014,780
Bonds, Series 2002, 5.000%, 11/01/22
Howard County, Maryland, Consolidated Public Improvement Bonds,
Series 2001A:
1,220 4.750%, 2/15/20 2/09 at 101.00 AAA 1,227,698
1,360 4.750%, 2/15/21 2/09 at 101.00 AAA 1,361,142
21
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 430 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A $ 446,688
Series 2000A, 6.000%, 6/01/20
740 Mayor and City Council of Ocean City, Maryland, General Obligation 3/11 at 101.00 AAA 752,499
Municipal Purpose Bonds, Series 2001, 4.875%, 3/01/19
1,500 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101.00 AAA 1,576,080
Public Improvement Bonds, Series 2001, 5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.7%
885 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 889,310
Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12
1,500 Department of Transportation, Maryland, County Transportation No Opt. Call AA 1,673,880
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,490,972
Maryland Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
1,290 Virgin Islands Public Finance Authority, Revenue Bonds 10/10 at 101.00 BBB- 1,435,138
(Virgin Islands Gross Receipts Tax Loan Note), 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 905,821
935 5.000%, 6/01/23 6/11 at 100.00 AAA 943,705
985 5.000%, 6/01/24 6/11 at 100.00 AAA 993,491
1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,043,197
1,290 Washington Suburban Sanitary District, Montgomery and Prince 6/11 at 100.00 AAA 1,303,042
George's Counties, Maryland, Water Supply Bonds of 2001,
4.750%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.4%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, The Johns Hopkins Medical Institutions,
Issue of 2001:
650 5.000%, 7/01/27 7/11 at 100.00 AAA 650,871
750 5.000%, 7/01/34 7/11 at 100.00 AAA 745,838
1,750 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 4/11 at 101.00 N/R 1,287,808
Special Facilities Revenue Bonds, Northwest Airlines, Inc. Project,
Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.0%
1,015 City of Baltimore, Maryland, Water Projects and Refunding Revenue 7/08 at 101.00 AAA 1,024,480
Bonds, Series 1998A, 5.000%, 7/01/28
670 City of Baltimore, Maryland, Water Projects and Refunding Revenue No Opt. Call AAA 682,877
Bonds, Series 1994A, 5.000%, 7/01/24
2,825 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 3,110,975
Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10)
1,000 Maryland Transportation Authority, Transportation Facilities Project No Opt. Call AAA 1,188,060
Revenue Bonds, First Series (Refunding), 6.800%, 7/01/16
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, 2000 Series A:
2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,458,263
1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,813,152
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2%
2,500 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102.00 N/R 2,514,350
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 Refunding Bonds, 7/05 at 100.00 A- 1,846,512
Series Z, 5.250%, 7/01/21
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6%
$ 330 City of Baltimore, Maryland, Water Projects and Refunding Revenue No Opt. Call AAA $ 333,252
Bonds, Series 1994A, 5.000%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 89,610 Total Long-Term Investments (cost $90,164,411) - 151.1% 91,405,417
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 1,093,261
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 60,498,678
====================================================================================================================
(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.
23
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 3.5%
$ 2,250 Northeast Maryland Waste Disposal Authority, Resource Recovery 1/09 at 101.00 BBB $ 2,105,955
Revenue Bonds, Baltimore RESCO Retrofit Project, Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6%
860 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 832,454
Bonds, Series 2002 Refunding, 5.375%, 5/15/33
800 Tobacco Settlement Financing Corporation of the Virgin Islands, 5/11 at 100.00 A3 750,968
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.9%
1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 1,091,816
Bonds, Community College Project, Series 2002, 5.125%, 9/01/22
250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 255,233
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School Issue, 6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AAA 425,935
Bonds, Bullis School Issue, Series 2000, 5.250%, 7/01/30
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 AA 1,094,160
Refunding Revenue Bonds, Johns Hopkins University Issue,
Series 1998, 5.125%, 7/01/12
1,400 Maryland Health and Higher Educational Facilities Authority, Revenue 10/08 at 101.00 AAA 1,344,812
Bonds, College of Notre Dame of Maryland Issue, Series 1998,
4.650%, 10/01/23
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 979,020
Bonds, Johns Hopkins University Issue, Series 2001B,
5.000%, 7/01/41
1,250 Maryland Health and Higher Educational Facilities Authority, Revenue 6/11 at 100.00 Baa1 1,250,413
Bonds, Maryland Institute College of Art, Series 2001,
5.500%, 6/01/32
500 Morgan State University, Maryland, Academic and Auxiliary Fees 7/12 at 100.00 AAA 509,135
Revenue Bonds, Series 2001, 4.900%, 7/01/21
University of Maryland System Auxiliary, Facility and Tuition
Revenue Bonds, 2001 Series B:
1,580 4.375%, 4/01/17 4/11 at 100.00 AA+ 1,563,331
1,140 4.500%, 4/01/19 4/11 at 100.00 AA+ 1,121,156
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.1%
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/08 at 101.00 AAA 2,005,260
Bonds, Anne Arundel Medical Center Issue, Series 1998,
5.125%, 7/01/33
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 1/08 at 101.00 Aaa 2,008,520
Bonds, Upper Chesapeake Hospitals Issue, Series 1998A,
5.125%, 1/01/38
1,470 Maryland Health and Higher Educational Facilities Authority, Revenue 5/11 at 100.00 AA- 1,431,560
Bonds, Johns Hopkins Hospital Issue, Series 2001, 5.000%, 5/15/34
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A- 1,977,460
Bonds, Mercy Medical Center, Series 2001, 5.625%, 7/01/31
1,500 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A+ 1,425,345
Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A 1,968,080
Bonds, University of Maryland Medical System, Series 2001,
5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 Baa1 1,025,950
Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
1,250 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 A3 1,189,775
Bonds, Frederick Memorial Hospital, Series 2002, 5.125%, 7/01/35
2,160 Montgomery County, Maryland, Economic Development Revenue 12/11 at 100.00 AA- 2,143,973
Bonds, Trinity Health Care Group, Series 2001, 5.125%, 12/01/22
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 16.4%
$ 280 Community Development Administration, Department of Housing and 5/11 at 100.00 Aa3 $ 281,579
Community Development, State of Maryland, Multifamily Housing
Insured Mortgage Loans, Series 2001A, 5.100%, 5/15/28
4,255 Community Development Administration, Department of Housing and 5/11 at 100.00 Aa3 4,296,997
Community Development, State of Maryland, Multifamily Housing
Revenue Bonds, Insured Mortgage Loan, 2001 Series B, 5.350%,
5/15/32 (Alternative Minimum Tax)
1,110 Community Development Administration, Department of Housing and 12/11 at 100.00 Aaa 1,132,522
Community Development, State of 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 of Housing and 12/11 at 100.00 Aaa 3,208,812
Community Development, State of 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 of Housing and 5/12 at 100.00 Aa3 1,024,870
Community Development, State of Maryland, Multifamily Housing
Insured Mortgage Revenue Bonds, Series 2002A, 5.300%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.5%
500 Community Development Administration, Department of Housing and 3/07 at 101.50 Aa2 518,455
Community Development, State of Maryland, Residential Revenue
Bonds, Series 1997B, 5.875%, 9/01/25 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing and 9/10 at 100.00 Aa2 1,011,040
Community Development, State of Maryland, Residential Revenue
Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 44.3%
755 Anne Arundel County, Maryland, General Obligation Bonds, 3/12 at 100.00 AA+ 757,997
Series 2002, 5.000%, 3/01/31
1,500 Baltimore County, Maryland, General Obligation Consolidated Public 8/12 at 100.00 AAA 1,561,185
Improvement Bonds, Series 2002, 5.000%, 8/01/18
Cecil County, Maryland, General Obligation Consolidated Public
Improvement Bonds, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 A+ 978,617
1,020 4.600%, 8/01/19 8/11 at 101.00 A+ 1,014,655
300 4.625%, 8/01/20 8/11 at 101.00 A+ 296,697
335 4.750%, 8/01/21 8/11 at 101.00 A+ 333,951
1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA 1,027,570
Bonds, Series 2002, 5.000%, 11/01/20
3,000 Frederick County, Maryland, General Obligation Public Facilities 12/10 at 101.00 AA 3,144,990
Bonds, Series 2000, 5.200%, 12/01/19
510 City of Frederick, Maryland, General Obligation Bonds, General 12/11 at 101.00 AA- 517,206
Improvements Refunding Series 2001, 4.750%, 12/01/19
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 2,749,011
1,500 5.500%, 3/01/12 No Opt. Call AAA 1,692,945
4,730 Montgomery County, Maryland, General Obligation Consolidated Public 10/11 at 101.00 AAA 5,041,187
Improvement Bonds, Series 2001 Refunding, 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 12/11 at 101.00 AAA 1,050,720
2,820 5.250%, 12/01/21 12/11 at 101.00 AAA 2,952,427
2,000 Commonwealth of Puerto Rico, Public Improvement General Obligation 7/11 at 100.00 AAA 2,017,280
Bonds, Refunding Series of 2001, 5.000%, 7/01/24
1,500 Commonwealth of Puerto Rico, Public Improvement General Obligation No Opt. Call A- 1,578,855
Bonds, Series of 2002A, 5.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.4%
750 Anne Arundel County, Maryland, Consolidated Water and Sewer 8/09 at 101.00 AA+ 737,430
General Obligation Bonds, Series 1999, 4.500%, 8/01/19
885 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 889,310
Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12
25
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
County of Baltimore, 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+ $ 1,618,647
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,688,054
1,000 Department of Transportation, Maryland, County Transportation No Opt. Call AA 1,115,920
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,490,972
Maryland Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
1,000 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 AA 1,030,090
Germantown Development District, Senior Series 2002A,
5.500%, 7/01/27
1,100 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue 1/08 at 101.00 AAA 1,116,676
Bonds, Series 1997A, 5.000%, 7/01/21
800 Puerto Rico Public Finance Corporation, Series 2001A, Commonwealth 8/11 at 100.00 AAA 814,312
Appropriation Bonds, 5.000%, 8/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.6%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, The Johns Hopkins Medical Institutions
Issue of 2001:
650 5.000%, 7/01/27 7/11 at 100.00 AAA 650,871
2,775 5.000%, 7/01/34 7/11 at 100.00 AAA 2,759,599
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.9%
1,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 1,165,680
Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded to 7/01/10)
1,250 Maryland Health and Higher Educational Facilities Authority, Revenue No Opt. Call AAA 1,333,550
Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/17
1,365 Maryland Transportation Authority, Transportation Facilities Project No Opt. Call AAA 1,621,702
Revenue Bonds, First Series Refunding, 6.800%, 7/01/16
4,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 4,266,240
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3%
1,000 Guam Power Authority, Revenue Bonds, 1999 Series A, 10/09 at 101.00 AAA 1,020,070
5.250%, 10/01/34
1,000 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102.00 N/R 1,005,740
Cogeneration Revenue Bonds, AES WarriorRun Project, Series 1995,
7.400%, 9/01/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 88,825 Total Long-Term Investments (cost $89,923,216) - 150.5% 91,014,742
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 1,460,896
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 60,475,638
====================================================================================================================
(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.
26
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 2.4%
$ 1,900 Northeast Maryland Waste Disposal Authority, Resource Recovery 1/09 at 101.00 BBB $ 1,778,362
Revenue Bonds, Baltimore RESCO Retrofit Project, Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.0%
3,000 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 2,903,910
Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.3%
2,540 Maryland Health and Higher Educational Facilities Authority, Revenue 10/09 at 101.00 A 2,501,976
Bonds, Loyola College Issue, Series 1999, 5.000%, 10/01/39
2,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,958,040
Bonds, Johns Hopkins University, Series 2001B, 5.000%, 7/01/41
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 AA 996,130
Bonds, Johns Hopkins University, Series 2002A, 5.000%, 7/01/32
985 University of Maryland System, Auxiliary Facilities and Tuition 4/11 at 100.00 AA+ 965,842
Revenue Bonds, 2001 Series B, 4.625%, 4/01/21
1,000 University of Maryland System, Auxiliary Facilities and Tuition No Opt. Call AA+ 1,092,290
Revenue Bonds, 2002 Series A, 5.000%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.3%
3,000 Maryland Health and Higher Educational Facilities Authority, Revenue No Opt. Call AAA 3,065,910
Bonds, Medlantic/Helix Issue, Series 1998B, 5.250%, 8/15/38
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/08 at 101.00 AAA 1,002,630
Bonds, Anne Arundel Medical Center Issue, Series 1998,
5.125%, 7/01/33
1,000 Maryland Health and Higher Educational Facilities Authority, Revenue 5/11 at 100.00 AA- 987,520
Bonds, The Johns Hopkins Hospital Issue, Series 2001,
5.000%, 5/15/21
3,000 Maryland Health and Higher Educational Facilities Authority, Revenue 7/11 at 100.00 A+ 2,850,690
Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Frederick Memorial Hospital, Series 2002:
1,000 5.000%, 7/01/27 7/12 at 100.00 A3 941,330
2,000 5.125%, 7/01/35 7/12 at 100.00 A3 1,903,640
1,845 Maryland Health and Higher Educational Facilities Authority, Revenue 7/12 at 100.00 A3 1,854,391
Bonds, Union Hospital of Cecil County, Series 2002, 5.625%, 7/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 21.8%
5,000 Community Development Administration, Department of Housing and 7/12 at 100.00 Aa2 4,832,500
Community Development, State of Maryland, Housing Revenue
Bonds, 2002 Series B, 4.950%, 7/01/32 (Alternative Minimum Tax)
Housing Opportunities Commission of Montgomery County, Maryland,
Multifamily Housing Development Bonds, Series B:
515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 502,511
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 2,943,750
3,000 Housing Authority of Prince George's County, Maryland, Mortgage 2/13 at 102.00 AAA 2,940,780
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, Mortgage 11/12 at 100.00 AAA 4,690,775
Revenue Bonds, GNMA Collateralized Fairfield and Hillside Projects,
Series 2002A, 4.700%, 11/20/22
27
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.2%
$ 2,115 Baltimore County, Maryland, General Obligation Consolidated Public 8/12 at 100.00 AAA $ 2,271,637
Improvement Bonds, Series 2002, 5.250%, 8/01/17
Frederick County, Maryland, General Obligation Public Facilities Bonds,
Series 2002:
1,830 5.000%, 11/01/20 11/12 at 101.00 AA 1,880,453
2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,078,040
2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,536,950
1,210 Howard County, Maryland, Consolidated Public Improvement Bonds, 2/09 at 101.00 AAA 1,222,064
Series 2001A, 4.750%, 2/15/19
2,000 State of Maryland, General Obligation Bonds, State and Local No Opt. Call AAA 2,212,580
Facilities Loan, 2002 Series B, 5.250%, 2/01/10
2,000 Montgomery County, Maryland, General Obligation Consolidated Public 2/12 at 101.00 AAA 2,059,460
Improvement Bonds, Series 2002A, 5.000%, 2/01/20
5,000 Prince George's County, Maryland, General Obligation Consolidated 9/12 at 101.00 AA 4,641,500
Public Improvement Bonds, Series 2002, 4.300%, 9/15/21
3,430 Commonwealth of Puerto Rico, General Obligation Public Improvement 7/11 at 100.00 AAA 3,477,883
Refunding Bonds, Series of 2001, 5.125%, 7/01/30
1,000 St. Mary's County, Maryland, General Obligation Hospital Bonds of No Opt. Call AA- 1,093,820
2002, 5.000%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 36.9%
500 Mayor and City Council of Baltimore, Maryland, Convention Center 9/08 at 102.00 AAA 509,130
Refunding Revenue Bonds, Series 1998, 5.000%, 9/01/19
5,000 Department of Transportation, State of Maryland, County Transportation No Opt. Call AA 5,579,600
Revenue Bonds, Series 2002,5.500%, 2/01/16
2,000 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,958,900
Maryland Department of Transportation Headquarters Building,
Series 2002, 4.750%, 6/01/22
2,935 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 3,140,010
Montgomery County Wayne Avenue Parking Project, Series 2002A,
5.250%, 9/15/16
2,500 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 AAA 2,512,175
Revenue Bonds, Series D, 5.000%, 7/01/32
3,500 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue 1/08 at 101.00 AAA 3,518,515
Bonds, Series 1997A, 5.000%, 7/01/28
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- 1,050,290
1,205 5.250%, 7/01/20 7/12 at 100.00 A- 1,242,018
1,275 5.250%, 7/01/21 7/12 at 100.00 A-
2,000 Puerto Rico Municipal Finance Agency, General Obligation Bonds, 8/12 at 100.00 AAA 2,013,440
2002 Series A, 5.000%, 8/01/27 (WI, settling 12/05/02)
1,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation No Opt. Call AAA 1,035,790
Bonds, 1998 Series A, 5.125%, 6/01/24
2,000 Puerto Rico Public Finance Corporation, Commonwealth Appropriation 8/11 at 100.00 AAA 2,008,940
Bonds, 2001 Series A, 5.000%, 8/01/31
935 Puerto Rico Public Finance Corporation, Commonwealth Appropriation 2/12 at 100.00 BBB+ 969,333
Bonds, 2002 Series E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.7%
4,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series HH, 7/10 at 101.00 AAA 4,135,405
5.250%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.5%
2,570 City of Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/12 at 100.00 AAA 2,575,860
Series 2002A Refunding, 5.125%, 7/01/42
------------------------------------------------------------------------------------------------------------------------------------
$ 97,210 Total Long-Term Investments (cost $100,154,134) - 134.1% 97,743,084
=============-----------------------------------------------------------------------------------------------------------------------
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 29.5%
$ 4,800 Chester County Industrial Development Authority, Pennsylvania, VMIG-1 $ 4,800,000
Revenue Bonds, Archdiocese of Philadelphia, Variable Rate Demand
Bonds, Series 2001, 1.200%, 7/01/31+
1,100 Maryland Economic Development Corporation, Economic Development VMIG-1 1,100,000
Revenue Bonds, The Federation of American Societies, Variable Rate
Demand Obligations, Series 2002A, 1.250%, 7/01/30+
4,000 Multnomah County, Oregon, Higher Education Revenue Bonds, Series VMIG-1 4,000,000
1999, Concordia University of Portland Project, Variable Rate
Demand Bonds, 1.300%, 12/01/29+
5,000 Ohio Air Quality Development Authority, State of Ohio, Pollution VMIG-1 5,000,000
Control Revenue Refunding Bonds, Series 2000A, Variable Rate
Demand Bonds, The Toledo Edison Company Project,
1.300%, 4/01/24+
5,000 Schuylkill County Industrial Development Authority, Pennsylvania, A-1+ 5,000,000
Resource Recovery Refunding Revenue Bonds (Northeastern
Power Company Project), Variable Rate Demand Bonds,
Series 1997A, 1.300%, 12/01/22+
1,600 University of Toledo, Ohio, General Receipts Variable Rate Demand VMIG-1 1,600,000
Bonds, Series 2002, 1.300%, 6/01/32+
------------------------------------------------------------------------------------------------------------------------------------
$ 21,500 Total Short-Term Investments (cost $21,500,000) 21,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (10.1)% (7,362,360)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.5)% (39,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 72,880,724
====================================================================================================================
(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.
(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.
29
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.0%
$ 500 Industrial Development Authority of the County of Bedford, Virginia, 2/08 at 102.00 Ba1 $ 337,280
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 of Bedford, Virginia, 12/09 at 101.00 Ba1 1,478,884
Industrial Development Refunding Revenue Bonds (Nekoosa
Packaging Corporation), Series 1999A, 6.550%, 12/01/25
(Alternative Minimum Tax)
1,000 Industrial Development Authority of Goochland County, Virginia, 12/08 at 101.00 Ba1 675,820
Industrial Development Refunding Revenue Bonds (Nekoosa
Packaging Corporation Project), Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax)
1,784 Virginia Small Business Financing Authority, Industrial Development 1/03 at 102.00 N/R 1,464,827
Revenue Bonds (Albion Enterprises, LLC Project), Series 1998A,
6.400%, 1/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.5%
2,000 Industrial Development Authority of the County of Charles City, No Opt. Call BBB 1,954,580
Virginia, Solid Waste Disposal Facility Revenue Refunding Bonds
(USA Waste of Virginia, Inc. Project), Series 1999, 4.875%,
2/01/09 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.3%
1,720 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 1,664,908
Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0%
3,500 Industrial Development Authority of the City of Alexandria, 10/10 at 101.00 AAA 3,807,615
Virginia, Fixed Rate Revenue Bonds (Institute for Defense
Analyses), Series 2000A, 5.900%, 10/01/30
Industrial Development Authority of Danville, 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 479,420
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,430,745
Industrial Development Authority of Lynchburg, Virginia,
Educational Facilities Revenue Bonds (Randolph-Macon Women's
College), Series 1993:
2,940 5.875%, 9/01/13 9/03 at 102.00 A- 3,021,997
2,500 5.875%, 9/01/23 9/03 at 102.00 A- 2,535,200
500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 521,500
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
500 Industrial Development Authority of Rockbridge County, Virginia, 7/11 at 100.00 Baa3 517,635
Series 2001C, Virginia Horse Center, Revenue and Refunding
Bonds, 6.850%, 7/15/21
2,000 Virginia College Building Authority, Educational Facilities Revenue 9/11 at 100.00 AA+ 2,001,960
Bonds, Public Higher Education Financing Program, Series 2001A,
5.000%, 9/01/26
3,000 Virginia College Building Authority, Educational Facilities Revenue 11/04 at 100.00 Aa1 3,205,200
Bonds, University of Richmond Project, Series of 1994, 5.550%,
11/01/19 (Optional put 11/01/04)
1,000 Virginia College Building Authority, Educational Facilities Revenue No Opt. Call AAA 1,047,550
Bonds, The Washington and Lee University Project, Series 1998,
5.250%, 1/01/31
1,000 Virginia College Building Authority, Educational Facilities Revenue 4/10 at 101.00 A+ 1,089,870
Bonds, Hampton University Project, Series 2000, 6.000%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.8%
2,000 Albemarle County Industrial Development Authority, Virginia, Hospital 10/12 at 100.00 A2 1,964,820
Revenue Bonds, Martha Jefferson Hospital, Series 2002,
5.250%, 10/01/35
4,850 Industrial Development Authority of Fairfax County, Virginia, Hospital No Opt. Call AA 4,840,349
Revenue Refunding Bonds (Inova Health System Hospitals Project),
Series 1993A, 5.000%, 8/15/23
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,200 Fredericksburg Industrial Development Authority, Virginia, Revenue 6/12 at 100.00 A3 $ 1,146,540
Bonds, Medicorp Health System, Series 2002B, 5.125%, 6/15/33
4,650 Industrial Development Authority of Hanover County, Virginia, Bon 8/05 at 102.00 AAA 4,741,233
Secours Health System Obligated Group Hospital Revenue Bonds
(Bon Secours Health System Projects), Series 1995,
5.500%, 8/15/25
1,500 Industrial Development Authority of the County of Henrico, Virginia, No Opt. Call AAA 1,764,315
Healthcare Revenue Bonds (Bon Secours Health), Series 1996,
6.250%, 8/15/20
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- 375,431
800 6.100%, 6/01/32 6/12 at 101.00 BBB- 799,448
2,260 Manassas Industrial Development Authority, Virginia, Hospital Revenue 4/13 at 100.00 A2 2,194,754
Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33
4,750 Medical College of Virginia Hospitals Authority, General Revenue 7/08 at 102.00 AAA 4,771,138
Bonds, Series 1998, 5.125%, 7/01/23
2,500 Industrial Development Authority of the City of Norfolk, Virginia, 11/04 at 102.00 AA 2,722,250
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, Virginia, 7/12 at 100.00 AAA 3,168,000
Hospital Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/19
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.0%
570 Industrial Development Authority of Arlington County, Virginia, 7/05 at 102.00 A 605,255
Multifamily Housing Mortgage Revenue Bonds (Arlington
Housing Corporation), 1995 Series, 5.700%, 7/01/07
1,515 Industrial Development Authority of Arlington County, Virginia, 5/10 at 100.00 Aaa 1,585,326
Multifamily Housing Revenue Bonds (Patrick Henry Apartments
Project), 2000 Series, 6.050%, 11/01/32 (Alternative Minimum Tax)
(Mandatory put 11/01/20)
4,445 Hampton Redevelopment and Housing Authority, Virginia, Multifamily 1/03 at 103.00 A-1+ 4,639,469
Housing Revenue Refunding Bonds (Chase Hampton II Apartments),
Series 1994, 7.000%, 7/01/24 (Mandatory put 7/01/04)
1,495 Economic Development Authority of Henrico County, Virginia, Beth 7/09 at 102.00 AAA 1,601,698
Shalom Assisted Living Revenue Bonds, GNMA Mortgage-Backed
Securities Financing, Series 1999A, 5.900%, 7/20/29
1,000 Lynchburg Redevelopment and Housing Authority, Virginia, Vistas 4/10 at 102.00 AAA 1,039,590
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, Mortgage 1/03 at 100.00 AAA 2,356,578
Revenue Refunding Bonds (FHA-Insured Mortgage Loan - Wilson
Pines Apartments - Section 8 Assisted Project), Series 1993,
6.125%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.5%
940 Virginia Housing Development Authority, Commonwealth Mortgage 1/08 at 102.00 AA+ 947,793
Bonds, 1996 Series G (Subseries G-1), 5.300%, 1/01/22
(Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 1,018,630
Bonds, 2001 Series H (Subseries H-1), 5.350%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
Industrial Development Authority of the City of Winchester,
Virginia, Residential Care Facility First Mortgage Revenue Bonds
(Westminster-Canterbury of Winchester, Inc.), Series 1998:
1,350 5.750%, 1/01/18 1/03 at 102.00 N/R 1,290,924
1,000 5.750%, 1/01/27 1/03 at 102.00 N/R 919,490
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.2%
City of Hampton, Virginia, General Obligation Public Improvement
Bonds of 2000:
890 5.750%, 2/01/17 2/10 at 102.00 AA 972,432
2,000 6.000%, 2/01/20 2/10 at 102.00 AA 2,252,500
1,355 Harrisonburg, Virginia, General Obligation Bonds, Series 2002A, 7/12 at 101.00 AAA 1,390,406
Public Safety and Steam Plant, 5.000%, 7/15/19
585 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AA+ 605,867
Bonds, Series 2002A, 5.250%, 5/01/22
31
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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 $ 2,844,402
1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,022,660
1,400 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 1,454,334
Series 2000A, 6.000%, 6/01/20
4,200 Commonwealth of Puerto Rico, General Obligation Public Improvement 7/06 at 101.50 A- 4,283,076
Bonds of 1996, 5.400%, 7/01/25
1,430 City of Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,493,835
Bonds, Series 2002A, 5.000%, 10/01/17
1,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,457,148
Improvement Bonds, Series 2001, 5.000%, 6/01/20
2,000 City of Winchester, Virginia, General Obligation Public Improvement 1/04 at 102.00 AA 2,100,880
and Refunding Bonds, Series 1994, 5.500%, 1/15/14
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.2%
750 City of Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 752,310
Bonds, Series of 2002, 5.000%, 11/01/24
County of Cumberland, Virginia, Certificates of Participation,
Series 1997:
1,075 6.200%, 7/15/12 No Opt. Call N/R 1,168,353
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,480,397
500 Industrial Development Authority of Dinwiddie County, Virginia, 2/07 at 102.00 N/R 520,175
Lease Revenue Bonds (Dinwiddie County School Facilities Project),
Series 1997A, 6.000%, 2/01/18
1,000 Fairfax County Economic Development Authority, Virginia, Parking 9/09 at 102.00 AA 1,125,940
Revenue Bonds (Vienna II Metrorail Station Project), 1999 First
Series, 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- 655,794
2,000 6.125%, 6/15/29 6/10 at 101.00 A- 2,183,320
3,000 Hampton Roads, Virginia, Regional Jail Authority, Regional Jail 7/06 at 102.00 AAA 3,135,360
Facility Revenue Bonds, Series 1996A, 5.500%, 7/01/24
1,230 Middlesex County, Virginia, Industrial Development Authority, Lease 8/09 at 102.00 AAA 1,337,514
Revenue Bonds (School Facilities Project), Series 1999,
6.000%, 8/01/24
2,000 Puerto Rico Highway and Transportation Authority, Transportation 7/12 at 100.00 AAA 2,009,740
Revenue Bonds, Series D, 5.000%, 7/01/32
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002D Refunding:
1,000 5.250%, 7/01/27 7/12 at 100.00 A- 1,015,770
1,200 5.250%, 7/01/36 7/12 at 100.00 A- 1,215,732
2,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 2,220,420
Islands Gross Receipts Tax Loan Note), Series 1999A,
6.500%, 10/01/24
2,250 Virginia College Building Authority, Educational Facilities Revenue 2/09 at 101.00 AA+ 2,478,353
Bonds, 21st Century College Program, Series 2000,
6.000%, 2/01/20
2,000 Virginia College Building Authority, Educational Facilities Revenue 2/12 at 100.00 AA+ 2,013,760
Bonds, 21st Century College and Equipments Program,
Series 2002A, 5.000%, 2/01/22
2,000 Virginia Public School Authority, School Financing Bonds, 1997 8/10 at 101.00 AA+ 2,051,560
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 5/10 at 101.00 AAA 1,177,310
3,060 5.500%, 5/01/30 5/10 at 101.00 AAA 3,186,409
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, Pooled 5/11 at 101.00 AA 1,778,645
Loan Bond Program, Series 2002A, 5.000%, 5/01/19
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.7%
$ 1,400 Metropolitan Washington Airports Authority, Virginia, Airport System 10/07 at 101.00 Aa3 $ 1,411,844
Revenue Bonds, Series 1997A, 5.375%, 10/01/23
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,025,480
Series 2001A, 5.125%, 7/01/31
1,500 Richmond Metropolitan Authority, Virginia, Expressway Revenue No Opt. Call AAA 1,578,255
Bonds, Series 2002 Refunding, 5.250%, 7/15/22
6,065 Virginia Port Authority, Port Facilities Revenue Bonds, Series 1997, 7/07 at 101.00 AAA 6,264,417
5.600%, 7/01/27 (Alternative Minimum Tax)
2,000 Virginia Resources Authority, Airport Revolving Fund Revenue Bonds, 2/11 at 100.00 Aa2 2,049,920
Series 2001A, 5.250%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.1%
1,840 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 2,026,263
Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10)
2,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,666,400
Bonds, 2000 Series A, 5.500%, 10/01/40
1,205 City of Richmond, Virginia, General Obligation Public Improvement 7/03 at 102.00 AA*** 1,260,394
Bonds, Series 1993B, 5.500%, 7/15/23 (Pre-refunded to 7/15/03)
3,955 Virginia Resources Authority, Water and Sewer System Revenue Bonds 10/07 at 100.00 AA*** 4,461,319
(Sussex County Project), 1995 Series A, 5.600%, 10/01/25
(Pre-refunded to 10/01/07)
5,035 Virginia Commonwealth Transportation Board, Transportation Revenue 5/04 at 101.00 AA+*** 5,416,804
Bonds, Northern Virginia Transportation District Program,
Series 1995A, 6.250%, 5/15/17 (Pre-refunded to 5/15/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.2%
3,500 City of Richmond, Virginia, Public Utility Revenue Bonds, 1/08 at 101.00 AAA 3,521,175
Series 1998A Refunding, 5.125%, 1/15/28
City of Richmond, Virginia, Public Utility Revenue Bonds,
Series 2002 Refunding:
750 5.000%, 1/15/27 1/12 at 100.00 AAA 748,395
1,600 5.000%, 1/15/33 1/12 at 100.00 AAA 1,583,920
6,150 Southeastern Public Service Authority of Virginia, Senior Revenue 7/03 at 102.00 A- 6,226,568
Bonds (Regional Solid Waste System), Series 1993,
6.000%, 7/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.8%
2,000 Fairfax County, Virginia, Sewer Revenue Bonds, Series 1996, 7/06 at 102.00 AAA 2,168,860
5.875%, 7/15/28
2,000 Fairfax County Water Authority, Virginia, Water Revenue Bonds, 4/10 at 101.00 AAA 2,111,860
Series 2000, 5.625%, 4/01/25
Fairfax County Water Authority, Virginia, Water Revenue Bonds,
Series 2002 Refunding:
2,030 5.375%, 4/01/19 4/12 at 100.00 AAA 2,152,165
1,000 5.000%, 4/01/27 4/12 at 100.00 AAA 1,005,350
1,650 Henrico County, Virginia, Water and Sewer System Revenue and 5/09 at 102.00 AA+ 1,650,165
Refunding Revenue 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 6,746,344
5.875%, 11/01/20
City of Norfolk, Virginia, Water Revenue and Refunding Bonds,
Series 2001:
1,310 5.000%, 11/01/21 11/11 at 100.00 AAA 1,318,856
1,380 5.000%, 11/01/22 11/11 at 100.00 AAA 1,385,368
1,955 Rivanna Water and Sewer Authority, Virginia, Regional Water and 10/09 at 101.00 Aa3 2,052,162
Sewer System Revenue Bonds, Series 1999, 5.625%, 10/01/29
1,000 Upper Occoquan Sewage Authority, Virginia, Regional Sewerage 1/04 at 102.00 AAA 1,002,650
System Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/21
33
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,250 City of Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 $ 2,463,750
Series 2000, 6.000%, 9/01/24
500 Virginia Resources Authority, Clean Water State Revolving Fund, 10/10 at 100.00 AAA 530,170
Revenue Bonds, Series 1999, 5.625%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 185,104 Total Long-Term Investments (cost $182,986,608) - 146.0% 190,941,278
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 3,635,032
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.8)% (63,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 130,776,310
====================================================================================================================
(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.
See accompanying notes to financial statements.
34
Nuveen Virginia Dividend Advantage Municipal (NGB)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.4%
Guam Economic Development Authority, Asset-Backed Bonds,
Series 2001A:
$ 210 5.000%, 5/15/22 5/11 at 100.00 A2 $ 210,643
850 5.400%, 5/15/31 5/11 at 100.00 A2 864,119
1,400 Guam Economic Development Authority, Asset-Backed Bonds, 5/11 at 100.00 A2 1,342,838
Series 2001B, 5.500%, 5/15/41
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.6%
500 Industrial Development Authority of the City of Danville, Virginia, 3/11 at 102.00 N/R 491,265
Educational Facilities Revenue Bonds, Averett University Project,
Series 2001, 6.000%, 3/15/22
850 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 886,550
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 161,038
320 5.375%, 2/01/29 2/09 at 101.00 BBB 312,941
465 Industrial Development Authority of Rockbridge County, Virginia, No Opt. Call Baa3 479,722
Virginia Horse Center Revenue and Refunding Bonds,
Series 2001B, 6.125%, 7/15/11
1,000 Industrial Development Authority of Rockbridge County, Virginia, 7/11 at 100.00 Baa3 1,035,270
Virginia Horse Center Revenue and Refunding Bonds,
Series 2001C, 6.850%, 7/15/21
1,325 Virginia College Building Authority, Educational Facilities Revenue 9/10 at 100.00 AA+ 1,363,067
Bonds, Public Higher Education Financing Program,
Series 2000A, 5.000%, 9/01/17
500 Virginia College Building Authority, Educational Facilities Revenue 7/08 at 101.00 AA 508,850
and Refunding Bonds (Marymount University Project),
Series 1998, 5.100%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.1%
Industrial Development Authority of Albemarle County, Virginia,
Hospital Refunding Revenue Bonds, Martha Jefferson Hospital,
Series 1993:
1,000 5.500%, 10/01/15 10/03 at 102.00 A2 1,018,170
1,000 5.500%, 10/01/20 10/03 at 102.00 A2 1,006,570
1,000 Industrial Development Authority of Fauquier County, Virginia, 10/12 at 102.00 AA 1,003,870
Hospital Revenue Bonds, Fauquier Hospital,
Series 2002, 5.250%, 10/01/25
2,000 Industrial Development Authority of the City of Fredericksburg, 6/07 at 102.00 AAA 2,079,000
Virginia, Hospital Facilities Revenue Refunding Bonds, MediCorp
Health System Obligated Group, Series 1996, 5.250%, 6/15/16
500 Fredericksburg Industrial Development Authority, Virginia, Revenue 6/12 at 100.00 A3 477,725
Bonds, Medicorp Health System, Series 2002B, 5.125%, 6/15/33
425 Loudoun County Industrial Development Authority, Virginia, Loudoun 6/12 at 101.00 BBB- 425,489
Hospital Center Revenue Bonds, Series 2002A, 6.000%, 6/01/22
1,000 Industrial Development Authority of the City of Lynchburg, Virginia, 1/08 at 101.00 A+ 987,070
Healthcare Facilities Revenue and Refunding Bonds, Centra Health,
Series 1998, 5.200%, 1/01/23
675 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 655,513
Revenue Bonds, Prince William Hospital, Series 2002,
5.250%, 4/01/33
1,000 Industrial Development Authority of the City of Norfolk, Virginia, 8/07 at 102.00 AAA 1,009,770
Healthcare Revenue Bonds, Bon Secours Health System,
Series 1997, 5.250%, 8/15/26
800 Industrial Development Authority of the City of Norton, Virginia, 12/11 at 101.00 A 837,952
Hospital Revenue Bonds, Norton Community Hospital Refunding
and Improvement, Series 2001, 6.000%, 12/01/22
35
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5%
$ 1,000 Industrial Development Authority of Arlington County, Virginia, 11/11 at 102.00 AAA $ 999,400
Multifamily Housing Mortgage Revenue Bonds, Arlington View
Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Alternative
Minimum Tax) (Mandatory put 11/01/19)
1,000 Virginia Housing Development Authority, Rental Housing Bonds, 2000 10/10 at 100.00 AA+ 1,033,500
Series G, 5.625%, 10/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.2%
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 1,018,630
Bonds, 2001 Series H (Subseries H-1), 5.350%, 7/01/31
2,075 Virginia Housing Development Authority, Commonwealth Mortgage 7/10 at 100.00 AA+ 2,207,925
Bonds, 2000 Series B (Subseries B-2), 5.875%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.5%
2,000 Industrial Development Authority of Albemarle County, Virginia, 1/12 at 100.00 N/R 2,007,720
Residential Care Facility Revenue Bonds, Westminster Canterbury
of the Blue Ridge (First Mortgage), Series 2001, 6.200%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.1%
2,000 County of Chesterfield, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,032,600
Improvement Bonds, Series of 2001, 5.000%, 1/15/21
3,310 Town of Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,395,199
Bonds, Series 2000, 5.125%, 1/15/21
1,540 Loudoun County, Virginia, General Obligation Public Improvement 1/11 at 101.00 AA+ 1,607,206
Bonds, Series 2001B, 5.250%, 1/01/20
1,000 City of Newport News, Virginia, General Obligation General 5/10 at 102.00 AA 1,108,040
Improvement Bonds, Series A of 2000, 5.625%, 5/01/16
320 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100.00 A 332,419
Series 2000A, 6.000%, 6/01/20
1,300 City of Richmond, Virginia, General Obligation Public Improvement 1/10 at 101.00 AAA 1,316,471
and Refunding Bonds, Series 1999A, 5.125%, 1/15/24
2,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,463,655
Improvement Bonds, Series 2001, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.0%
960 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101.00 BBB- 1,068,010
Islands Gross Receipts Tax Loan Note), Series 1999A,
6.375%, 10/01/19
500 Virginia College Building Authority, Educational Facilities Revenue 2/12 at 100.00 AA+ 503,440
Bonds, 21st Century College and Equipment Program,
Series 2002A, 5.000%, 2/01/22
430 Virginia Commonwealth Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 440,698
Bonds, Northern Virginia Transportation District Program,
Series 1997B Refunding, 5.125%, 5/15/19
2,000 Virginia Public School Authority, School Financing Bonds, 1997 8/11 at 101.00 AA+ 2,043,880
Resolution, Series 2001A, 5.000%, 8/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.9%
1,750 Capital Region Airport Commission, Richmond, Virginia, International 7/05 at 102.00 AAA 1,820,805
Airport Projects, Airport Revenue Bonds, Series 1995A,
5.625%, 7/01/20
1,000 Chesapeake Bay and Bridge Tunnel Commission, Virginia, District No Opt. Call AAA 1,076,380
Revenue Bonds, General Resolution Refunding, Series 1998,
5.500%, 7/01/25
3,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AAA 3,084,930
Revenue Bonds, Series 2001A, 5.500%, 10/01/27
(Alternative Minimum Tax)
250 Metropolitan Washington D.C. Airports Authority, Airport System 10/11 at 101.00 AAA 248,925
Revenue Bonds, Series 2001B, 5.000%, 10/01/21
1,250 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 4/11 at 101.00 N/R 919,863
Special Facilities Revenue Bonds, Northwest Airlines, Inc. Project,
Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax)
1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, Series 7/11 at 100.00 AAA 1,509,555
2001A, 5.125%, 7/01/31
500 Richmond Metropolitan Authority, Virginia, Expressway Revenue No Opt. Call AAA 526,085
Bonds, Series 2002 Refunding, 5.250%, 7/15/22
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 1,225 Virginia Resources Authority, Airport Revolving Fund Revenue Bonds, 2/11 at 100.00 Aa2 $ 1,255,576
Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund Revenue Bonds, 2/11 at 100.00 Aa2 1,225,388
Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 11.4%
730 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100.00 AAA 803,898
Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded to 7/01/10)
1,000 Industrial Development Authority of Henry County, Virginia, Hospital 1/07 at 101.00 A2*** 1,136,920
Revenue Bonds (Memorial Hospital of Martinsville and Henry
County), Series 1997, 6.000%, 1/01/27 (Pre-refunded to 1/01/07)
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, 2000 Series A:
1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,603,215
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,599,840
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.9%
1,000 City of Bristol, Virginia, Utility System Revenue and Refunding 7/11 at 102.00 AAA 1,007,740
Bonds, Series 2001, 5.000%, 7/15/21
1,725 Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, 7/05 at 100.00 A- 1,769,574
Series Z, 5.250%, 7/01/21
City of Richmond, Virginia, Public Utility Revenue Bonds,
Series 2002 Refunding:
500 5.000%, 1/15/27 1/12 at 100.00 AAA 498,930
1,200 5.000%, 1/15/33 1/12 at 100.00 AAA 1,187,940
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.1%
2,000 Fairfax County Water Authority, Virginia, Water Refunding Revenue No Opt. Call AAA 2,047,060
Bonds, Series 1997, 5.000%, 4/01/21
2,000 Henrico County, Virginia, Water and Sewer System Revenue and 5/09 at 102.00 AA+ 2,012,900
Refunding Revenue Bonds, Series 1999, 5.000%, 5/01/22
520 Prince William County Service Authority, Virginia, Water and Sewer 7/09 at 101.00 AAA 548,506
System Revenue Bonds, Series 1999, 5.500%, 7/01/19
1,680 Virginia Resources Authority, Clean Water State Revolving Fund 10/10 at 100.00 AAA 1,755,245
Revenue Bonds, Series 2000, 5.400%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 66,920 Total Long-Term Investments (cost $67,313,803) - 151.7% 68,375,500
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 699,492
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.2)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 45,074,992
====================================================================================================================
(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.
See accompanying notes to financial statements.
37
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
Portfolio of
INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.5%
$ 1,290 Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 5/12 at 100.00 A1 $ 1,248,681
Bonds, Series 2002 Refunding, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.2%
1,000 Fairfax County Economic Development Authority, Virginia, Revenue 9/09 at 101.00 Aaa 1,031,240
Bonds (National Wildlife Federation Project), Series 1999,
5.375%, 9/01/29
3,000 Puerto Rico Industrial, Tourist, Educational, Medical, and 12/12 at 101.00 BBB 2,978,820
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Series 2002, Ana G. Mendez University
System Project Refunding, 5.375%, 12/01/21
2,000 Virginia College Building Authority, Educational Facilities Revenue 9/11 at 100.00 AA+ 2,001,960
Bonds, Public Higher Education Financing Program,
Series 2001A, 5.000%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.5%
1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,473,615
Hospital Revenue Bonds, Martha Jefferson Hospital, Series 2002,
5.250%, 10/01/35
3,000 Industrial Development Authority of Fauquier County, Virginia, 10/12 at 102.00 AA 3,011,610
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25
800 Fredericksburg Industrial Development Authority, Virginia, Revenue 6/12 at 100.00 A3 764,360
Bonds, Medicorp Health System, Series 2002B, 5.125%, 6/15/33
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- 250,288
600 6.100%, 6/01/32 6/12 at 101.00 BBB- 599,586
1,355 Manassas Industrial Development Authority, Virginia, Hospital Revenue 4/13 at 100.00 A2 1,315,881
Bonds, Prince William Hospital, Series 2002, 5.250%, 4/01/33
1,200 Industrial Development Authority of the City of Norton, Virginia, 12/11 at 101.00 A 1,256,928
Hospital Revenue Bonds, Norton Community Hospital, Refunding
and Improvement Series 2001, 6.000%, 12/01/22
1,000 Industrial Development Authority of the County of Prince William, 10/08 at 102.00 Aaa 1,013,850
Virginia, Hospital Facility Refunding Revenue Bonds (Potomac
Hospital Corporation of Prince William), Series 1998,
5.000%, 10/01/18
3,915 Industrial Development Authority of the County of Roanoke, Virginia, 7/12 at 100.00 AAA 4,112,708
Hospital Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.7%
500 Virginia Housing Development Authority, Commonwealth Mortgage 1/08 at 102.00 AA+ 515,600
Bonds, 1996 Series H (Subseries H-2), 5.200%, 7/01/17
7,485 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 7,624,446
Bonds, 2001 Series H (Subseries H-1), 5.350%, 7/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.3%
1,750 City of Chesapeake, Virginia, General Obligation Public Improvement 12/11 at 100.00 AA 1,896,598
Bonds, Series 2001 Refunding, 5.500%, 12/01/16
1,730 Loudoun County, Virginia, General Obligation Public Improvement 11/11 at 101.00 AA+ 1,734,758
Bonds, Series 2001C, 4.500%, 11/01/17
540 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AA+ 559,262
Bonds, Series 2002A, 5.250%, 5/01/22
1,840 Newport News, Virginia, General Obligation Bonds, General 7/13 at 100.00 AA 1,881,694
Improvement and Water Projects, Series 2002A, 5.000%, 7/01/20
525 City of Portsmouth, Virginia, General Obligation Public Utility 6/08 at 100.00 AAA 527,882
Bonds, Series 2001B Refunding, 5.000%, 6/01/21
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Powhatan County, Virginia, General Obligation Bonds, Series 2001:
$ 660 5.000%, 1/15/23 1/11 at 101.00 AAA $ 662,119
2,000 5.000%, 1/15/27 1/11 at 101.00 AAA 2,002,060
City of Roanoke, Virginia, General Obligation Public Improvement
Bonds, Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,486,256
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,501,549
1,280 City of Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,314,982
Bonds, Series 2002B, 5.000%, 10/01/15 (Alternative Minimum Tax)
City of Salem, Virginia, General Obligation Public Improvement
Bonds, Series 2002:
1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,199,422
1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,250,736
1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,309,505
1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,376,079
1,500 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,540,095
Improvement Bonds, Series 2001, 5.000%, 6/01/19
1,420 City of Virginia Beach, Virginia, General Obligation Public 3/12 at 100.00 AA+ 1,440,391
Improvement Bonds, Series 2002 Refunding, 5.000%, 3/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.8%
1,000 City of Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 1,003,080
Bonds, Series of 2002, 5.000%, 11/01/24
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue 1/08 at 101.00 AAA 1,005,290
Bonds, Series 1997A, 5.000%, 7/01/28
1,150 Puerto Rico Public Buildings Authority, Guaranteed Government 7/07 at 101.50 AAA 1,156,360
Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/27
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002D Refunding:
1,500 5.250%, 7/01/27 7/12 at 100.00 A- 1,523,655
500 5.250%, 7/01/36 7/12 at 100.00 A- 506,555
1,800 Puerto Rico Public Finance Corporation, Commonwealth Appropriation 2/12 at 100.00 BBB+ 1,866,096
Bonds, 2002 Series E, 5.500%, 8/01/29
1,790 Virginia College Building Authority, Educational Facilities Revenue 2/12 at 100.00 AA+ 1,802,315
Bonds, 21st Century College and Equipments Program,
Series 2002A, 5.000%, 2/01/22
2,710 Virginia Commonwealth Transportation Board, Transportation Revenue 5/11 at 100.00 AA+ 2,712,710
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+ 1,716,065
1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,670,095
1,710 Virginia Public Building Authority, Public Facilities Revenue Bonds, 8/08 at 100.00 AAA 1,731,358
Series 1999A, 5.000%, 8/01/19
2,540 Virginia Public School Authority, School Financing Bonds, 1997 8/11 at 101.00 AA+ 2,595,728
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 1,257,182
4,330 5.000%, 5/01/31 5/10 at 101.00 AA 4,274,793
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.3%
2,500 Chesapeake Bay Bridge and Tunnel Commission, Virginia, District No Opt. Call AAA 2,733,500
Revenue Bonds, General Resolution Junior Lien, Series 2001B
Refunding, 5.000%, 7/01/09
1,000 Metropolitan Washington D.C. Airports Authority, Airport System 10/12 at 100.00 AAA 994,480
Revenue Bonds, 2002 Series A, 5.125%, 10/01/26
(Alternative Minimum Tax)
Richmond Metropolitan Authority, Virginia, Expressway Revenue and
Refunding Bonds, Series 1998:
1,000 5.250%, 7/15/12 No Opt. Call AAA 1,103,650
1,980 5.250%, 7/15/22 No Opt. Call AAA 2,083,297
39
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2002 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 8.0%
$ 6,250 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA $ 6,666,000
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.4%
3,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,210,719
Series HH, 5.250%, 7/01/29
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 2002 7/12 at 101.00 AAA 1,018,950
Series II, 5.125%, 7/01/26
City of Richmond, Virginia, Public Utility Revenue Bonds,
Series 2002 Refunding:
1,000 5.000%, 1/15/27 1/12 at 100.00 AAA 997,860
2,400 5.000%, 1/15/33 1/12 at 100.00 AAA 2,375,880
1,110 Industrial Development Authority of Russell County, Virginia, 11/08 at 101.00 AAA 1,118,258
Pollution Control Revenue Bonds, Appalachian Power Company Project,
Series 1998H, 5.000%, 11/01/21
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 28.5%
3,800 Fairfax County Water Authority, Virginia, Water Refunding Revenue No Opt. Call AAA 3,889,414
Bonds, Series 1997, 5.000%, 4/01/21
1,500 Fairfax County Water Authority, Virginia, Water Revenue Bonds, 4/12 at 100.00 AAA 1,508,025
Series 2002 Refunding, 5.000%, 4/01/27
Henry County Public Service Authority, Virginia, Water and Sewer
Revenue Bonds, Series 2001 Refunding:
1,000 5.500%, 11/15/17 No Opt. Call AAA 1,114,370
3,000 5.500%, 11/15/19 No Opt. Call AAA 3,302,430
City of Norfolk, Virginia, Water Revenue and Refunding Bonds,
Series 2001:
1,130 5.000%, 11/01/18 11/11 at 100.00 AAA 1,158,160
1,190 5.000%, 11/01/19 11/11 at 100.00 AAA 1,211,825
1,450 5.000%, 11/01/23 11/11 at 100.00 AAA 1,451,494
1,525 5.000%, 11/01/24 11/11 at 100.00 AAA 1,525,488
1,750 5.000%, 11/01/31 11/11 at 100.00 AAA 1,735,388
2,610 County of Spotsylvania, Virginia, Water and Sewer System Revenue 6/11 at 100.00 AAA 2,592,617
Bonds, Series 2001, 5.000%, 6/01/30
2,000 Upper Occoquan Sewage Authority, Virginia, Regional Sewerage No Opt. Call AAA 2,103,140
System Revenue Bonds, Series of 1995A, 5.150%, 7/01/20
2,250 Virginia Resources Authority, Water and Sewer System Revenue 5/11 at 101.00 AA 2,241,311
Bonds, Caroline County Public Improvements Project,
Series 2001, 5.000%, 5/01/32
------------------------------------------------------------------------------------------------------------------------------------
$ 121,140 Total Long-Term Investments (cost $121,434,287) - 148.2% 123,840,499
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,702,083
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (42,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 83,542,582
====================================================================================================================
(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.
See accompanying notes to financial statements.
40
Statement of
ASSETS AND LIABILITIES November 30, 2002 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $228,016,283 $91,405,417 $91,014,742 $ 97,743,084
Temporary investments in short-term securities,
at amortized cost, which approximates market value -- -- -- 21,500,000
Cash -- -- -- --
Receivables:
Interest 4,571,955 1,699,611 1,534,591 1,317,529
Investments sold 80,000 -- 525,795 --
Other assets 23,146 5,848 1,924 160
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 232,691,384 93,110,876 93,077,052 120,560,773
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 129,870 497,077 485,929 5,795,291
Payable for investments purchased 2,196,544 -- -- 2,542,007
Accrued expenses:
Management fees 122,442 26,730 26,797 24,379
Organization and offering costs -- 7,713 3,709 171,700
Other 63,416 76,298 79,724 141,118
Preferred share dividends payable 7,528 4,380 5,255 5,554
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,519,800 612,198 601,414 8,680,049
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000
===================================================================================================================================
Net assets applicable to Common shares $151,071,584 $60,498,678 $60,475,638 $ 72,880,724
===================================================================================================================================
Common shares outstanding 10,542,277 4,157,038 4,166,977 5,347,000
===================================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 14.33 $ 14.55 $ 14.51 $ 13.63
===================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 105,423 $ 41,570 $ 41,670 $ 53,470
Paid-in surplus 146,253,347 58,917,098 59,036,446 75,476,105
Undistributed net investment income 1,750,747 313,584 390,572 84,088
Accumulated net realized gain (loss) from investments (2,917,023) (14,580) (84,576) (321,889)
Net unrealized appreciation (depreciation) of investments 5,879,090 1,241,006 1,091,526 (2,411,050)
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $151,071,584 $60,498,678 $60,475,638 $ 72,880,724
===================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
41
Statement of
ASSETS AND LIABILITIES (Unaudited) (continued)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $190,941,278 $68,375,500 $123,840,499
Temporary investments in short-term securities,
at amortized cost, which approximates market value -- -- --
Cash -- -- 74,716
Receivables:
Interest 3,363,129 1,090,091 1,707,232
Investments sold 5,589,260 947,643 --
Other assets 14,173 4,824 4,155
-----------------------------------------------------------------------------------------------------------------------------------
Total assets 199,907,840 70,418,058 125,626,602
-----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 5,165,280 1,247,598 --
Payable for investments purchased -- -- --
Accrued expenses:
Management fees 103,752 19,983 36,357
Organization and offering costs -- 7,713 4,862
Other 59,486 65,799 37,209
Preferred share dividends payable 3,012 1,973 5,592
-----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,331,530 1,343,066 84,020
-----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
===================================================================================================================================
Net assets applicable to Common shares $130,776,310 $45,074,992 $ 83,542,582
===================================================================================================================================
Common shares outstanding 8,779,958 3,116,537 5,682,666
===================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 14.89 $ 14.46 $ 14.70
===================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 87,800 $ 31,165 $ 56,827
Paid-in surplus 123,849,557 44,134,758 80,607,130
Undistributed net investment income 1,372,083 214,343 260,226
Accumulated net realized gain (loss) from investments (2,487,800) (366,971) 212,187
Net unrealized appreciation (depreciation) of investments 7,954,670 1,061,697 2,406,212
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $130,776,310 $45,074,992 $ 83,542,582
===================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
===================================================================================================================================
See accompanying notes to financial statements.
42
Statement of
OPERATIONS Six Months Ended November 30, 2002 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)*
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $6,362,259 $2,406,519 $2,268,963 $ 523,724
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 745,485 302,413 302,743 94,679
Preferred shares - auction fees 99,146 43,465 40,110 4,274
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 438
Shareholders' servicing agent fees and expenses 20,688 2,291 920 720
Custodian's fees and expenses 34,030 22,165 20,519 7,598
Trustees' fees and expenses 1,404 602 4,326 200
Professional fees 6,264 5,382 6,394 3,163
Shareholders' reports - printing and mailing expenses 23,775 9,260 7,860 6,279
Stock exchange listing fees 8,489 304 306 --
Investor relations expense 14,701 6,300 2,285 --
Other expenses 6,051 4,379 3,167 254
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 970,060 401,575 393,644 117,605
Custodian fee credit (4,082) (2,154) (1,240) (3,161)
Expense reimbursement -- (139,576) (139,727) (46,611)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 965,978 259,845 252,677 67,833
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,396,281 2,146,674 2,016,286 455,891
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,987,641 101,680 119,791 (321,889)
Change in net unrealized appreciation (depreciation)
of investments 655,098 1,220,584 1,771,983 (2,411,050)
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 2,642,739 1,322,264 1,891,774 (2,732,939)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (397,343) (167,858) (189,499) (21,575)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $7,641,677 $3,301,080 $3,718,561 $(2,298,623)
===================================================================================================================================
* For the period September 25, 2002 (commencement of operations) through
November 30, 2002.
See accompanying notes to financial statements.
43
Statement of
OPERATIONS (Unaudited) (continued)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,297,084 $1,776,870 $3,076,681
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 633,079 226,780 411,859
Preferred shares - auction fees 79,968 32,598 52,644
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014
Shareholders' servicing agent fees and expenses 19,638 1,638 1,393
Custodian's fees and expenses 29,986 17,514 20,642
Trustees' fees and expenses 1,052 501 501
Professional fees 31,980 4,685 5,689
Shareholders' reports - printing and mailing expenses 18,421 6,961 9,371
Stock exchange listing fees 6,065 229 417
Investor relations expense 12,201 4,529 3,567
Other expenses 7,996 4,151 3,375
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 850,413 304,600 514,472
Custodian fee credit (7,274) (5,145) (7,018)
Expense reimbursement -- (104,668) (190,136)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 843,139 194,787 317,318
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,453,945 1,582,083 2,759,363
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,025,374 (56,182) 315,564
Change in net unrealized appreciation (depreciation)
of investments 539,614 665,589 1,780,595
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 1,564,988 609,407 2,096,159
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (348,434) (133,893) (293,640)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $5,670,499 $2,057,597 $4,561,882
===================================================================================================================================
See accompanying notes to financial statements.
44
Statement of
CHANGES IN NET ASSETS (Unaudited)
MARYLAND DIVIDEND MARYLAND DIVIDEND
MARYLAND PREMIUM INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
--------------------------------- --------------------------------- --------------------------------
FOR THE
PERIOD 9/25/01
(COMMENCEMENT
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED OF OPERATIONS)
11/30/02 5/31/02 11/30/02 5/31/02 11/30/02 THROUGH 5/31/02
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,396,281 $ 10,807,188 $ 2,146,674 $ 4,321,839 $ 2,016,286 $ 2,351,555
Net realized gain (loss) from
investments 1,987,641 1,246,503 101,680 (51,148) 119,791 (204,367)
Change in net unrealized
appreciation (depreciation)
of investments 655,098 145,991 1,220,584 941,869 1,771,983 (678,321)
Distributions to Preferred
Shareholders from
net investment income (397,343) (1,325,949) (167,858) (577,614) (189,499) (257,677)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 7,641,677 10,873,733 3,301,080 4,634,946 3,718,561 1,211,190
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,614,643) (8,760,619) (1,745,717) (3,489,426) (1,637,352) (1,894,877)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares -- -- -- -- -- 59,424,315
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 249,284 481,491 18,438 39,474 24,683 18,843
Preferred shares offering cost -- -- -- -- -- (490,000)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 249,284 481,491 18,438 39,474 24,683 58,953,158
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares 3,276,318 2,594,605 1,573,801 1,184,994 2,105,892 58,269,471
Net assets applicable to Common
shares at the beginning
of period 147,795,266 145,200,661 58,924,877 57,739,883 58,369,746 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $151,071,584 $147,795,266 $60,498,678 $58,924,877 $60,475,638 $58,369,746
===================================================================================================================================
Undistributed net investment
income at the end of period $ 1,750,747 $ 1,467,113 $ 313,584 $ 78,110 $ 390,572 $ 199,001
===================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
----------------- ------------------------------ -----------------------------
FOR THE
PERIOD 9/25/02
(COMMENCEMENT SIX MONTHS SIX MONTHS
OF OPERATIONS) ENDED YEAR ENDED ENDED YEAR ENDED
THROUGH 11/30/02 11/30/02 5/31/02 11/30/02 5/31/02
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 455,891 $ 4,453,945 $ 9,051,106 $ 1,582,083 $ 3,172,126
Net realized gain (loss) from
investments (321,889) 1,025,374 727,999 (56,182) (124,637)
Change in net unrealized appreciation
(depreciation) of investments (2,411,050) 539,614 (499,466) 665,589 1,095,723
Distributions to Preferred Shareholders
from net investment income (21,575) (348,434) (952,624) (133,893) (394,239)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (2,298,623) 5,670,499 8,327,015 2,057,597 3,748,973
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (350,228) (3,894,545) (7,522,358) (1,317,953) (2,633,474)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares 76,335,300 -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 345,776 704,912 27,191 37,832
Preferred shares offering cost (906,000) -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 75,429,300 345,776 704,912 27,191 37,832
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares 72,780,449 2,121,730 1,509,569 766,835 1,153,331
Net assets applicable to Common
shares at the beginning of period 100,275 128,654,580 127,145,011 44,308,157 43,154,826
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $72,880,724 $130,776,310 $128,654,580 $45,074,992 $44,308,157
===================================================================================================================================
Undistributed net investment
income at the end of period $ 84,088 $ 1,372,083 $ 1,119,659 $ 214,343 $ 83,355
===================================================================================================================================
See accompanying notes to financial statements.
46
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
----------------------------------
FOR THE
PERIOD 11/15/01
(COMMENCEMENT
SIX MONTHS ENDED OF OPERATIONS)
11/30/02 THROUGH 5/31/02
---------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,759,363 $ 2,341,899
Net realized gain (loss) from
investments 315,564 (103,377)
Change in net unrealized appreciation
(depreciation) of investments 1,780,595 625,853
Distributions to Preferred Shareholders
from net investment income (293,640) (234,802)
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,561,882 2,629,573
---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,352,527) (1,960,304)
---------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares -- 81,124,125
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 8,282 1,614
Preferred shares offering cost -- (570,338)
---------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 8,282 80,555,401
---------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares 2,217,637 81,224,670
Net assets applicable to Common
shares at the beginning of period 81,324,945 100,275
---------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $83,542,582 $81,324,945
===================================================================================================
Undistributed net investment
income at the end of period $ 260,226 $ 146,793
===================================================================================================
See accompanying notes to financial statements.
47
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). Maryland Premium Income
(NMY) and Virginia Premium Income (NPV) are traded on the New York Stock
Exchange while 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.
Prior to the commencement of operations of Maryland Dividend Advantage 2 (NZR),
Maryland Dividend Advantage 3 (NWI) and Virginia Dividend Advantage 2 (NNB),
each 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 The John Nuveen Company, and the
recording of the organizational expenses ($11,500 per Fund) and their
reimbursement by Nuveen Investments, also a wholly owned subsidiary of The John
Nuveen Company.
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 Funds are registered under the Investment Company Act of
1940 as closed-end management investment companies.
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 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 in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At
November 30, 2002, Maryland Premium Income (NMY) and Maryland Dividend Advantage
3 (NWI), had outstanding when-issued purchase commitments of $2,196,544 and
$2,016,211, respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
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.
48
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid 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. Accordingly, temporary
over-distributions as a result of these differences may occur and will be
classified as either distributions in excess of net investment income,
distributions in excess of net realized gains and/or distributions in excess of
net ordinary taxable income from investment transactions, where applicable.
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 of the Funds 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.
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 period ended November 30, 2002.
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 has agreed to pay all offering costs (other than the sales
load) that exceed $.03 per Common share for Maryland Dividend Advantage 2 (NZR),
Maryland Dividend Advantage 3 (NWI) and Virginia Dividend Advantage 2 (NNB).
Maryland Dividend Advantage 2's (NZR), Maryland Dividend Advantage 3's (NWI) and
Virginia Dividend Advantage 2's (NNB) share of offering costs ($124,710,
$160,200 and $170,250, respectively) were recorded as a reduction of the
proceeds from the sale of Common shares.
49
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Costs incurred by Maryland Dividend Advantage 2 (NZR), Maryland Dividend
Advantage 3 (NWI) and Virginia Dividend Advantage 2 (NNB) in connection with
their offering of Preferred shares ($490,000, $906,000 and $570,338,
respectively) 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 MARYLAND DIVIDEND MARYLAND DIVIDEND
PREMIUM INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
----------------------- ----------------------- ---------------------------
FOR THE
PERIOD 9/25/01
SIX MONTHS SIX MONTHS SIX MONTHS (COMMENCEMENT
ENDED YEAR ENDED ENDED YEAR ENDED ENDED OF OPERATIONS)
11/30/02 5/31/02 11/30/02 5/31/02 11/30/02 THROUGH 5/31/02
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 4,157,000
Shares issued to shareholders
due to reinvestment of
distributions 15,665 31,382 1,396 2,584 1,657 1,320
-------------------------------------------------------------------------------------------------------------
15,665 31,382 1,396 2,584 1,657 4,158,320
=============================================================================================================
Preferred shares sold -- -- -- -- -- 1,280
=============================================================================================================
MARYLAND DIVIDEND VIRGINIA VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) PREMIUM INCOME (NPV) ADVANTAGE (NGB)
----------------- ----------------------- ------------------------
FOR THE
PERIOD 9/25/02
(COMMENCEMENT SIX MONTHS SIX MONTHS
OF OPERATIONS) ENDED YEAR ENDED ENDED YEAR ENDED
THROUGH 11/30/02 11/30/02 5/31/02 11/30/02 5/31/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold 5,340,000 -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions -- 20,553 44,124 1,998 2,529
---------------------------------------------------------------------------------------------------------
5,340,000 20,553 44,124 1,998 2,529
=========================================================================================================
Preferred shares sold 1,560 -- -- -- --
=========================================================================================================
50
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
---------------------------
FOR THE
PERIOD 11/15/01
SIX MONTHS (COMMENCEMENT
ENDED OF OPERATIONS)
11/30/02 THROUGH 5/31/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 5,675,000
Shares issued to shareholders
due to reinvestment of
distributions 553 113
---------------------------------------------------------------------------------------------------------
553 5,675,113
=========================================================================================================
Preferred shares sold -- 1,680
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term securities for the six months ended November 30, 2002,
were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)*
----------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $25,599,093 $7,812,499 $6,991,694 $106,068,049
Short-term securities -- -- -- 34,800,000
Sales and maturities:
Long-term municipal securities 25,579,758 7,373,330 7,743,787 5,561,870
Short-term securities -- -- -- 11,700,000
==========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $22,998,888 $3,750,229 $11,427,824
Short-term securities -- -- 500,000
Sales and maturities:
Long-term municipal securities 23,553,868 2,474,725 11,757,340
Short-term securities -- 500,000 500,000
=========================================================================================================
* For the period September 25, 2002 (commencement of operations) through
November 30, 2002.
51
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to 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, 2002, 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 $222,001,150 $90,156,663 $89,915,273 $121,653,422
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------
Cost of investments $182,810,746 $67,312,752 $121,428,534
===========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments
at November 30, 2002, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,620,920 $1,761,270 $1,336,006 $ 198,647
Depreciation (3,605,787) (512,516) (236,537) (2,608,985)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
on investments $ 6,015,133 $1,248,754 $1,099,469 $(2,410,338)
==========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 9,609,429 $1,432,270 $2,493,526
Depreciation (1,478,897) (369,522) (81,561)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) on investments $ 8,130,532 $1,062,748 $2,411,965
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2002, the Funds' last fiscal year end, were as follows:
MARYLAND MARYLAND MARYLAND VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2
(NMY) (NFM) (NZR) (NPV) (NGB) (NNB)
----------------------------------------------------------------------------------------------------------------------
Undistributed tax-exempt income $1,840,297 $370,622 $470,930 $1,612,447 $304,968 $542,955
Undistributed ordinary income * 3,157 -- -- 3,675 -- --
Undistributed net long-term capital gains -- -- -- -- -- --
======================================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
52
The tax character of distributions paid during the period ended May 31, 2002,
the Funds' last fiscal year end, were designated for purposes of the dividends
paid deduction as follows:
MARYLAND MARYLAND MARYLAND VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE ADVANTAGE 2
(NMY) (NFM) (NZR) (NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------
Distributions from tax-exempt income $10,022,067 $4,070,762 $1,878,301 $8,429,395 $3,027,568 $1,795,677
Distributions from ordinary income * 33,073 -- -- 32,064 -- --
Distributions from net long-term
capital gains -- -- -- -- -- --
=======================================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2002, 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 VIRGINIA VIRGINIA
PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NPV) (NGB)
--------------------------------------------------------------------------------
Expiration year:
2003 $1,019,930 $ -- $1,542,314 $ --
2004 2,660,424 -- 1,579,895 --
2005 454,351 -- 140,749 --
2006 -- -- -- --
2007 -- -- -- --
2008 332,069 -- 250,767 --
2009 317,048 65,111 -- 186,152
2010 -- 37,159 -- 104,197
--------------------------------------------------------------------------------
Total $4,783,822 $102,270 $3,513,725 $290,349
================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2001 through May 31, 2002 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen in the following year:
MARYLAND MARYLAND VIRGINIA VIRGINIA
DIVIDEND DIVIDEND DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 ADVANTAGE ADVANTAGE 2
(NFM) (NZR) (NGB) (NNB)
--------------------------------------------------------------------------------
$13,989 $204,367 $20,440 $103,377
================================================================================
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
================================================================================
53
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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
================================================================================
For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia
Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the
Funds, as a percentage of average daily net assets (including net assets
attributable to Preferred shares), for fees and expenses in the amounts, and for
the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and
Virginia Dividend Advantage (NGB) for any portion of its fees and expenses
beyond January 31, 2011.
For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts, and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for
any portion of its fees and expenses beyond September 30, 2011.
54
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.
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.
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.
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, 2002, to shareholders of
record on December 15, 2002, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------
Dividend per share $.0745 $.0710 $.0680 $.0655
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------
Dividend per share $.0745 $.0715 $.0690
================================================================================
At the same time, Maryland Premium Income (NMY) and Virginia Dividend Advantage
2 (NNB) declared ordinary income distributions of $.0032 and $.0257 per share,
respectively.
55
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:
2003(d) $14.04 $ .51 $ .26 $(.04) $-- $ .73 $(.44) $-- $(.44)
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)
1998 13.76 .99 .80 (.24) -- 1.55 (.77) -- (.77)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(d) 14.18 .52 .31 (.04) -- .79 (.42) -- (.42)
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:
2003(d) 14.01 .48 .46 (.05) -- .89 (.39) -- (.39)
2002(b) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46)
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) 14.33 .09 (.51) -- -- (.42) (.07) -- (.07)
==================================================================================================================================
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:
2003(d) $-- $14.33 $15.6200 2.06% 5.20%
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
1998 -- 14.54 15.0625 16.54 11.47
MARYLAND DIVIDEND
ADVANTAGE (NFM)
----------------------------------------------------------------------------
Year Ended 5/31:
2003(d) -- 14.55 15.2000 1.13 5.59
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:
2003(d) -- 14.51 14.6800 3.15 6.38
2002(b) (.15) 14.01 14.6100 .52 1.01
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
----------------------------------------------------------------------------
Year Ended 5/31:
2003(c) (.21) 13.63 14.3000 (4.23) (4.43)
============================================================================
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:
2003(d) $151,072 1.27%* 7.09%* 1.27%* 7.09%* 11%
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
1998 151,088 1.29 6.93 1.29 6.93 6
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(d) 60,499 1.32* 6.57* .85* 7.04* 8
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:
2003(d) 60,476 1.29* 6.14* .83* 6.60* 8
2002(b) 58,370 1.22* 5.55* .79* 5.99* 21
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) 72,881 .92* 3.16* .53* 3.55* 8
============================================================================================================
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:
2003(d) $79,100 $25,000 $72,747
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
1998 79,100 25,000 72,752
MARYLAND DIVIDEND
ADVANTAGE (NFM)
-------------------------------------------------------
Year Ended 5/31:
2003(d) 32,000 25,000 72,265
2002 32,000 25,000 71,035
2001(a) 32,000 25,000 70,109
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
-------------------------------------------------------
Year Ended 5/31:
2003(d) 32,000 25,000 72,247
2002(b) 32,000 25,000 70,601
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
-------------------------------------------------------
Year Ended 5/31:
2003(c) 39,000 25,000 71,718
=======================================================
* 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, reinvested capital
gains distributions, 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 25, 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
November 30, 2002.
(d) For the six months ended November 30, 2002.
See accompanying notes to financial statements.
56-57 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -----------------------------------
Distributions Distributions
from Net from Net
Beginning 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:
2003(c) $14.69 $ .51 $ .17 $(.04) $-- $ .64 $(.44) $-- $(.44)
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)
1998 14.04 1.06 .92 (.24) -- 1.74 (.82) -- (.82)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) 14.23 .51 .18 (.04) -- .65 (.42) -- (.42)
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:
2003(c) 14.31 .49 .36 (.05) -- .80 (.41) -- (.41)
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:
2003(c) $-- $14.89 $16.1700 2.67% 4.39%
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
1998 -- 14.96 16.1250 17.30 12.66
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
----------------------------------------------------------------------------
Year Ended 5/31:
2003(c) -- 14.46 15.6100 6.32 4.59
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:
2003(c) -- 14.70 15.2300 5.05 5.62
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:
2003(c) $130,776 1.29%* 6.72%* 1.28%* 6.74%* 12%
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
1998 128,122 1.27 7.20 1.27 7.20 19
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
-------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2003(c) 45,075 1.33* 6.44* .85* 6.92* 4
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:
2003(c) 83,543 1.21* 6.05* .75* 6.51* 9
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:
2003(c) $63,800 $25,000 $76,245
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
1998 63,800 25,000 75,205
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
-------------------------------------------------------
Year Ended 5/31:
2003(c) 24,000 25,000 71,953
2002 24,000 25,000 71,154
2001(a) 24,000 25,000 69,953
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------------------------------------
Year Ended 5/31:
2003(c) 42,000 25,000 74,728
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, reinvested capital
gains distributions, 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, 2002.
See accompanying notes to financial statements.
58-59 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.
60
Fund
INFORMATION
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
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
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
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 period ended November 30, 2002. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
61
Serving Investors
FOR GENERATIONS
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com ESA-B-1102D