SEMIANNUAL REPORT November 30, 2001
[LOGO: NUVEEN Investments]
MUNICIPAL CLOSED-END
EXCHANGE-TRADED FUNDS
Dependable, tax-free income to help you keep more of what you earn.
MARYLAND
NMY
NFM
NZR
NORTH CAROLINA
NNC
NRB
VIRGINIA
NPV
NGB
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
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Photo of: Timothy R. Schwertfeger
Chairman of the Board
Dear
SHAREHOLDER
In the aftermath of September 11, the financial markets have reacted with
volatility and uncertainty as investors attempt to better understand how the
U.S. and world economies are likely to perform in the months ahead. It's too
soon to tell what the long-term impact will be on the markets or your Fund, but
one thing that is increasingly clear to us is that a diversified portfolio that
includes high quality municipal bonds can leave you well positioned to reduce
overall investment volatility.
For example, during the period covered by this report, all of these Nuveen Funds
continued to meet their primary objectives of providing attractive monthly
income from a portfolio of high quality municipal bonds. Detailed information on
your Fund's performance can be found in the Portfolio Managers' Comments and
Performance Overview sections of this report. I urge you to take the time to
read them.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
turbulent times like these, prudent investors
SIDEBAR TEXT: "A DIVERSIFIED PORTFOLIO CAN LEAVE YOU WELL POSITIONED TO REDUCE
OVERALL INVESTMENT RISK."
understand the importance of diversification, balance, and risk management, all
attributes your Nuveen Fund can bring to your portfolio.
For more than 100 years, Nuveen has specialized in offering quality investments
such as these Nuveen Funds to those seeking to accumulate and preserve wealth
and establish a lasting legacy. Our mission continues to be to assist you and
your financial advisor by offering the investment services and products that can
help you invest well and leave your mark for future generations. We thank you
for continuing to choose Nuveen Investments as your partner as you work toward
that goal.
Sincerely,
/s/ TIMOTHY R. SCHWERTFEGER
TIMOTHY R. SCHWERTFEGER
Chairman of the Board
January 15, 2002
SIDEBAR TEXT: "TODAY, PERHAPS MORE THAN EVER, INVESTORS HAVE THE ABILITY TO MAKE
A LASTING IMPACT ON THEIR FAMILIES AND THEIR WORLD FOR GENERATIONS TO COME."
Nuveen Closed-End Exchange-Traded Funds
NMY, NFM, NZR, NNC, NRB, NPV, NGB
Portfolio Managers'
COMMENTS
Portfolio managers Paul Brennan and Tom O'Shaughnessy review economic and market
conditions, key strategies, and recent Fund performance. Paul assumed portfolio
management responsibility for NMY and NPV in 1999, and Tom has managed NNC since
1998. In January 2001, Tom added management responsibility for the new Nuveen
North Carolina Dividend Advantage Municipal Fund (NRB), while Paul assumed
management responsibility for the Nuveen Dividend Advantage Municipal Funds for
Maryland (NFM and NZR) and Virginia (NGB) at their inceptions in 2001.
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The two major forces at work during the twelve months ended November 30, 2001,
were the continued slowdown in economic growth and the Federal Reserve's
aggressive approach to easing short-term interest rates. While these two factors
had an impact over the entire period covered in this report, the events of
September 11, 2001, and their aftermath also had a profound effect on the
economy and the markets.
In January 2001, the Fed embarked on a series of rate cuts designed to stimulate
the sluggish U.S. economy. During the first eleven months of 2001, the Fed
announced ten reductions totaling 450 basis points. (On December 11, following
the end of the period covered in this report, the Fed cut the target rate by an
additional 25 basis points, bringing the federal funds rate to 1.75%, its lowest
level since 1961.) The consensus among market observers is that the Fed could
decide to cut rates yet again if signs of a significant economic slowdown
continue.
The past two years, 2000 and 2001, represented one of the best two-year periods
for total returns in the municipal bond markets since the late 1980s. The Fed's
interest rate cuts also created favorable conditions for both new municipal
issuance and refundings, which together totaled $252.1 billion nationwide during
the first eleven months of 2001, an increase of almost 37% over January-November
2000. On the demand side, municipal bonds continued to be highly sought after by
individual investors looking for diversification, tax-free income, quality, and
an alternative to a volatile stock market. Institutional investors, especially
insurance companies, also have been active buyers in the new issue market. In
general, improved supply and strong demand helped to keep municipal bond prices
higher than they were twelve months ago, while municipal yields have been
correspondingly lower. Nevertheless, we believe the municipal market continues
to represent good value.
PAUL, WHAT WAS THE ECONOMIC ENVIRONMENT IN MARYLAND AND VIRGINIA?
Although the pace of economic growth in Maryland slowed, it has remained steady,
as the state's exposure to federal government and defense spending, which
sometimes acts as a constraint, served to help insulate the state from the
general economic downturn following September 11, 2001. Maryland currently ranks
second only to Washington, D.C. in terms of federal spending as a percentage of
total economic activity. Increased government expenditures on defense and fewer
federal cutbacks are expected to bolster economic growth in the state throughout
the near-term. Over the long term, developments in the aerospace and
distribution sectors should provide additional opportunities for growth.
Supported by Maryland's well-educated workforce, employment growth continued to
outperform national averages in all sectors except manufacturing and trade. As
of November 2001, the state's unemployment rate was 4.3%, up from 3.8% a year
ago but still substantially below the November national average of 5.7%.
Maryland is one of the nation's wealthiest states, ranking sixth in average per
capita income.
Virginia ranks immediately behind Maryland in terms of federal spending, so the
prospect of increased government expenditures should also benefit the
commonwealth. However, the Virginia economy was also more heavily impacted by
the events of September 11, with the cost
of the closure of Reagan National Airport and the mobil-ization of troops out of
Norfolk estimated to cost $1.8 billion in lost economic activity. This loss was
offset to a degree by Virginia's lower exposure to other sectors affected by the
terrorist attacks. Overall, Virginia's demographic profile (high wealth levels,
steady tax base expansion) bodes well for long-term growth prospects. Despite
the general economic slowdown, the Virginia economy continued to perform well,
fueled by job growth in all sectors except manufacturing, which has been hit by
a nationwide recession. In November 2001, the jobless rate in Virginia was 4.0%,
a substantial increase from 2.1% in November 2000 but well below the 5.7%
national average.
Both Maryland and Virginia have recently seen a significant increase in
municipal issuance. In the first eleven months of 2001, Maryland issued almost
$3 billion in municipal debt, up 54% over the same period in 2000, while
Virginia's issuance increased 70%, to $5.7 billion.
TOM, WHAT ABOUT NORTH CAROLINA?
Municipal issuance also was up in North Carolina during this period, with $4.6
billion in new bonds, up 29% over 2000. Overall, the state continued to
experience a slowdown in economic activity, due largely to significant job
losses in the manufacturing sector. Unemployment in North Carolina stood at 6.1%
in November 2001, greater than the national average and up from 3.9% in November
2000. The state's fiscal health has generally weakened over the past year, as
personal income taxes and sales tax revenues continued to slow, coming in well
below estimates and leading to an erosion of general fund balances. To help fund
North Carolina's education needs, the governor proposed the creation of a state
lottery, but this proposal faces stiff opposition and has yet to be adopted. As
a result of the state's ongoing budget problems, Moody's revised its outlook for
North Carolina to negative as of July 2001, while maintaining its credit rating
at Aaa. Both Standard & Poor's and Fitch maintained their ratings at AAA/AAA,
respectively, as of November 30, 2001.
HOW DID THE NUVEEN FUNDS FOR THESE STATES PERFORM OVER THE PAST 12 MONTHS?
For the year ended November 30, 2001, the three older Nuveen Closed-End
Exchange-Traded Funds covered in this report produced total annual returns on
net asset value (NAV) as shown in the accompanying table. The annual returns for
the Lehman Brothers Municipal Bond Index1 and relevant Lipper Peer Group2 are
also presented.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
-----------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
11/30/01 EQUIVALENT3 11/30/01 11/30/01 11/30/01
-----------------------------------------------------------------------------
NMY 5.29% 8.02% 10.30% 8.75% 11.18%
-----------------------------------------------------------------------------
NFM 5.51% 8.35% N/A -- --
-----------------------------------------------------------------------------
NZR 5.18% 7.85% N/A -- --
-----------------------------------------------------------------------------
NNC 5.25% 8.20% 10.12% 8.75% 11.18%
-----------------------------------------------------------------------------
NRB 5.43% 8.48% N/A -- --
-----------------------------------------------------------------------------
NPV 5.40% 8.24% 10.40% 8.75% 11.18%
-----------------------------------------------------------------------------
NGB 5.49% 8.38% N/A -- --
-----------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the Fed's change in interest rate policy from
tightening to easing, combined with generally favorable market technicals,
created a positive total return environment for municipal bonds. The three older
Funds' participation in the market's gains is reflected in the total returns on
NAV listed in the previous table. In a market characterized by rising bond
values and falling yields, funds with longer durations would typically be
expected to perform well. As of November 30, 2001, the durations4 of these Funds
ranged from 8.85 to 9.83, compared with 7.68 for the unleveraged Lehman
Municipal Bond Index. The durations of NFM, NRB, and NGB, which were established
in January 2001, ranged from 13.02 to 15.60, and NZR, which was introduced in
September 2001,
1 The Funds' performances are compared with that of the Lehman Brothers
Municipal Bond Index, a national unleveraged index comprising a broad range
of investment-grade municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The Funds' total returns are compared with the average annualized return of
the 19 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 30.5% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Maryland 34%, North Carolina 36%, and
Virginia 34.5%.
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. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
had a duration of 18.78, all of which we believe are typical of newer Funds.
Over time, we plan to bring these durations more closely in line with the other
Nuveen Closed-End Exchange-Traded Funds. Since our last report in May, in fact,
the durations of NFM, NRB, and NGB have all shortened significantly.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With the Fed's move to a policy of interest rate easing as of January 2001, the
dividend-payment capabilities of these Funds benefited from the use of leverage,
a strategy that can potentially enhance the dividends paid to common
shareholders. This benefit is tied in part to the short-term rates the leveraged
Funds pay their MuniPreferred(R) shareholders. For example, declining short-term
rates 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, 2001, steady or falling short-term interest
rates enabled us to implement three dividend increases in both NMY and NPV and
two in NNC. NFM, NRB, and NGB, which were introduced in January 2001, began
paying regular monthly dividends in April and are currently providing very
attractive levels of tax-free income to shareholders. NZR, established in
September 2001, paid its first dividend on schedule in December 2001.
In coming months, the lower rates offered by municipal securities with shorter
maturities could potentially continue to benefit the dividends of these Funds by
further reducing the amount paid to MuniPreferred shareholders. However, this
trend could be offset by the effect of bond calls on higher-yielding securities
held by the three older Funds, especially if refundings increase as the result
of lower rates. The level of short-term rates, the number of bond calls, and the
interest rates at which we can reinvest the proceeds of any calls will all
influence the dividends of these Nuveen Funds over the next twelve months.
Over the past year, as the stock market remained volatile and the bond market
continued to perform well, many investors turned to tax-free fixed-income
investments as a way to add balance to their portfolios and reduce overall risk.
As a result, the share prices of the three older Funds improved (see the charts
on the individual Performance Overview pages). As investors recognized this
opportunity, increased demand caused the premiums on these Funds (share price
above NAV) to widen significantly over the past 12 months. The four newer Funds
- NFM, NZR, NRB, and NGB - have also benefited from strong demand since their
introductions earlier in 2001 and finished November with share prices trading
above their initial offering prices.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE YEAR ENDED
NOVEMBER 30, 2001?
In view of recent world events, maintaining strong credit quality is a primary
concern. All of these Nuveen Funds continued to offer excellent credit quality,
with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 71% in
NPV to 87% in NZR as of November 30, 2001. Each of these Funds also had a
portion of its assets invested in BBB and non-rated bonds, which serve to
enhance the Funds' income streams. The allocations to this credit sector ranged
from 3% in NZR to 19% in NRB.
All of these Funds also offer good levels of call protection through 2002 and
2003, with no scheduled calls in NFM, NZR, and NRB and only 3% in NGB over this
two-year period. The three older Funds, which mark the 10-year anniversary of
their inceptions in 2003, will begin to see the increased call exposure normally
associated with this segment of the bond market cycle. Over the next two years,
calls could affect up to 20% of NMY's portfolio, 26% of NPV, and 28% of NNC.
The number of actual calls experienced by these Funds will depend largely on
market interest rates over this time. In general, we believe this call exposure
is very manageable, and we foresee no problems in working through it. Given the
current level of rates, our general approach has been to hold higher-yielding
bonds as long as possible to help support the Funds' dividends, while we look
for attractive replacement opportunities.
In investing new cash and bond call proceeds over the past twelve months, we
focused on finding attractive bonds with the potential to support the Funds'
long-term dividend-payment capabilities, enhance total return potential, and add
value and diversification. Among the sectors where we found value were those
regarded as providers of essential services, such as healthcare and education.
As of November 30, 2001, all of these Funds listed healthcare and/or education
among their top five sectors.
Looking specifically at the Maryland Funds, the municipal market there recently
offered a series of hospital issues with attractive yields and credit ratings
ranging from AA to BBB. We participated in nearly all of these issues, in the
process raising NFM's healthcare allocation to 11% from 6% in May. Both NMY and
NFM have a number of multifamily housing bonds that serve as core holdings,
offering good levels of income and positioning the funds more defensively in the
current economic environment. Overall, the increase in Maryland issuance during
2001 provided us with opportunities to further diversify the Funds and replace
some of NFM's Puerto Rico holdings with in-state securities.
In September 2001, Nuveen introduced the Nuveen Maryland Dividend Advantage
Municipal Fund 2 (NZR). As of November 2001, NZR was fully invested and, in our
opinion, performing well for shareholders. As mentioned earlier, the Fund paid
its first dividend on schedule in December 2001, and its holdings place NZR in
an excellent position to pay attractive dividends on a monthly basis going
forward. In assembling NZR's portfolio, we focused on purchasing a diversified
mix of high-quality securities, as reflected in the Fund's 87% allocation of
bonds rated AAA and AA. Many of the hospital issues added to NFM were also
purchased for NZR, including University of Maryland Medical Systems as well as
Trinity Healthcare, an AA- rated hospital in Montgomery County. We also bought
selected housing bonds at attractive prices that should help to enhance the
Fund's income stream. Like NFM, NZR holds some Puerto Rican bonds that we plan
to replace with Maryland securities as we find attractive in-state
opportunities. As of November 30, 2001, the Fund's three largest sector
weightings were healthcare and general and limited tax obligation bonds.
In North Carolina, we also took advantage of increased issuance in the
healthcare sector to add a number of high-quality issues and boost the
healthcare exposure of both NNC and NRB. Among the issues purchased were insured
bonds from the North Carolina Medical Care Commission for the WakeMed project
and a Mission St. Joseph issue rated Aa3/AA. At the time we were assembling
NRB's portfolio in early 2001, North Carolina issuance was more sporadic. As a
result, we invested some of the Fund's assets in Texas credits. As issuance has
improved in the North Carolina market, we have been replacing these credits with
in-state bonds, with the goal of selling all of NRB's Texas holdings by early
2002.
Our focus in the Virginia market over the past twelve months has been on
essential services issues, buying attractively priced bonds across a variety of
sectors to keep the Funds well diversified and defensively positioned. Both NPV
and NGB hold substantial allocations of water and sewer bonds, which - along
with health-
care and education - were among the top performers over the past year. The
increase in issuance in the Virginia market also gave us an opportunity to trade
out of most of NGB's Puerto Rico holdings and purchase Virginia credits.
The Maryland, North Carolina, and Virginia Funds also had some exposure to bonds
and sectors affected by the events of September 11, including issues such as
American Airlines, Raleigh-Durham Airport, and Metropolitan Washington Airports
Authority, which owns Reagan National Airport and Dulles International. Although
the majority of these bonds experienced a decline immediately after the
terrorist attacks, their valuations have since improved. Many of these holdings
were insured and, in general, have not impacted the Funds' performance. While
Standard & Poor's placed major air carriers and North American airports on
credit watch following September 11, Moody's current median rating for airports
is A2, which is solidly investment grade. The federal government's commitment to
the air transportation sector was demonstrated by the approval of a $15 billion
airline aid package of grants and loan guarantees. Overall, airline traffic
appears to be improving, and we continue to be positive about the long-term
prospects of this sector.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS
IN PARTICULAR?
In general, our outlook for the fixed-income markets over the next twelve months
remains positive. While the long-term economic effects of September 11 are still
to be determined, we believe the U.S. economy is headed for a recovery, but one
characterized by a slower pace of growth, with inflation and interest rates
remaining low over the near term. We expect new municipal issuance to continue
at current strong levels, with annual totals for 2001 now anticipated to be the
largest since 1998. In 2002, declining tax revenues could cause many states and
municipalities to access the debt markets to finance budget deficits. At the
same time, demand for tax-exempt municipal bonds is expected to remain strong,
as investors continue to look for ways to rebalance their portfolios and reduce
risk.
The federal government's recent decision to discontinue the 30-year Treasury
bond removed one of the pricing benchmarks for the municipal market, which could
result in some pricing uncertainty and create additional opportunities. Overall,
we continue to watch the fixed-income markets carefully, especially those
sectors that were directly impacted by the events of September 11 or that would
be affected by any further deceleration in the economy. We believe that the
Nuveen Funds covered in this report are currently well diversified and well
positioned for the market environment ahead, and we will continue to respond to
events as appropriate.
Over the next six months, we plan to remain focused on strategies that add value
for our shareholders, provide support for the Funds' dividends, and fully
utilize Nuveen's experience and research expertise to adjust to any shifts in
market conditions. Strong issuance could present us with a number of
opportunities to implement such strategies. One of our priorities will be
managing port-folio structure, including duration and credit quality, to
strategically position the Funds for a potential economic recovery. Our emphasis
will continue to be on research-intensive credits that have the potential to
increase the Funds' income stream. Overall, we believe these Nuveen Funds will
continue to play an important role in investors' long-range financial programs,
providing balance and diversification, dependable tax-free income, quality
investments, and a measure of security in uncertain times such as these.
NMY
Nuveen Maryland Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
Pie Chart:
AAA/U.S. Guaranteed 59%
AA 17%
A 13%
BBB 5%
NR 3%
Other 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.55
--------------------------------------------------
Net Asset Value $14.05
--------------------------------------------------
Market Yield 5.29%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.61%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.02%
--------------------------------------------------
Fund Net Assets ($000) $226,729
--------------------------------------------------
Average Effective Maturity (Years) 17.72
--------------------------------------------------
Leverage-Adjusted Duration 8.85
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 3/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 16.54% 10.30%
--------------------------------------------------
5-Year 8.93% 5.80%
--------------------------------------------------
Since Inception 5.96% 5.61%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Utilities 21%
--------------------------------------------------
Housing/Multifamily 18%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
BAR CHART:
Dec 0.0650
Jan 0.0650
Feb 0.0650
Mar 0.0665
Apr 0.0665
May 0.0665
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0685
Oct 0.0685
Nov 0.0685
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
12/1/00 14.13
14.06
14.19
14.56
15.00
15.00
15.13
14.94
14.81
15.31
15.29
15.10
15.15
15.37
15.47
15.50
15.00
15.10
15.60
15.48
15.38
15.40
15.55
15.72
15.66
15.72
15.80
15.65
15.45
15.30
15.42
15.40
15.12
15.32
15.49
15.65
15.81
16.02
15.81
15.86
15.87
16.00
15.00
15.20
15.50
15.20
15.32
15.66
15.85
15.89
15.51
15.40
11/30/01 15.55
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 30.5%. 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 2000 of $0.0024 per share.
NFM
Nuveen Maryland Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
PIE CHART:
AAA/U.S. Guaranteed 47%
AA 25%
A 16%
BBB 7%
NR 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.24
--------------------------------------------------
Net Asset Value $14.24
--------------------------------------------------
Market Yield 5.51%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.93%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.35%
--------------------------------------------------
Fund Net Assets ($000) $91,146
--------------------------------------------------
Average Effective Maturity (Years) 23.91
--------------------------------------------------
Leverage-Adjusted Duration 13.02
--------------------------------------------------
TOTAL RETURN (Inception 1/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 5.76% 3.87%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Housing/Single Family 17%
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Housing/Multifamily 10%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
BAR CHART:
Mar 0.0700
Apr 0.0700
May 0.0700
Jun 0.0700
Jul 0.0700
Aug 0.0700
Sep 0.0700
Oct 0.0700
Nov 0.0700
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
1/26/01 16.14999962
16.10000038
16.00000000
16.06999969
15.40999985
15.75000000
15.52999973
15.30000019
15.72999954
15.78999996
15.97999954
15.69999981
15.89000034
16.07999992
15.69999981
15.39999962
16.00000000
16.25000000
15.85999966
15.69999981
15.26000023
15.30000019
15.85000038
15.69999981
15.75000000
15.89999962
15.92000008
16.18000031
16.13999939
16.10000038
16.00000000
15.77000046
15.89000034
15.10000038
15.18000031
15.78999996
15.43999958
15.39999962
15.35000038
16.14999962
15.35999966
15.19999981
15.19999981
11/30/01 15.23999977
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 30.5%. 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%.
NZR
Nuveen Maryland Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
PIE CHART:
AAA/U.S. Guaranteed 69%
AA 18%
A 10%
BBB 2%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.06
--------------------------------------------------
Net Asset Value $14.09
--------------------------------------------------
Market Yield 5.18%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.45%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.85%
--------------------------------------------------
Fund Net Assets ($000) $90,655
--------------------------------------------------
Average Effective Maturity (Years) 24.40
--------------------------------------------------
Leverage-Adjusted Duration 18.78
--------------------------------------------------
TOTAL RETURN (Inception 9/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception .83% -1.22%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 26%
--------------------------------------------------
Healthcare 18%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Education and Civic Organizations 9%
--------------------------------------------------
Housing/Multifamily 9%
--------------------------------------------------
THE FUND PAID ITS FIRST REGULAR MONTHLY DIVIDEND OF $0.065 PER SHARE ON
DECEMBER 3, 2001.
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
9/28/01 15.00
15.05
15.01
15.18
15.11
15.70
15.40
15.50
15.08
11/30/01 15.06
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 30.5%. 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%.
NNC
Nuveen North Carolina Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
PIE CHART:
AAA/U.S. Guaranteed 30%
AA 45%
A 13%
BBB 12%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.09
--------------------------------------------------
Net Asset Value $14.20
--------------------------------------------------
Market Yield 5.25%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.55%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.20%
--------------------------------------------------
Fund Net Assets ($000) $136,111
--------------------------------------------------
Average Effective Maturity (Years) 20.07
--------------------------------------------------
Leverage-Adjusted Duration 9.83
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 5/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 16.06% 10.12%
--------------------------------------------------
5-Year 8.02% 6.51%
--------------------------------------------------
Since Inception 5.51% 5.79%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 21%
--------------------------------------------------
Housing/Single Family 15%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
BAR CHART:
Dec 0.0625
Jan 0.0625
Feb 0.0625
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.0645
Jul 0.0645
Aug 0.0645
Sep 0.0660
Oct 0.0660
Nov 0.0660
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
12/1/00 13.69
13.75
13.75
13.75
14.13
14.50
14.88
14.69
14.69
14.92
15.05
14.94
14.70
14.59
14.75
14.70
14.45
14.40
14.68
14.50
14.81
14.83
14.89
14.80
14.80
14.80
14.85
14.95
14.95
15.08
15.21
15.44
15.45
15.51
15.52
15.44
15.46
15.50
15.52
15.76
15.65
15.70
14.85
14.73
15.35
15.36
15.36
15.42
15.67
15.53
14.95
14.88
11/30/01 15.09
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 30.5%. 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 36%.
NRB
Nuveen North Carolina Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
PIE CHART:
AAA/U.S. Guaranteed 44%
AA 29%
A 8%
BBB 15%
NR 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.04
--------------------------------------------------
Net Asset Value $14.39
--------------------------------------------------
Market Yield 5.43%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.81%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.48%
--------------------------------------------------
Fund Net Assets ($000) $49,102
--------------------------------------------------
Average Effective Maturity (Years) 25.35
--------------------------------------------------
Leverage-Adjusted Duration 15.60
--------------------------------------------------
TOTAL RETURN (Inception 1/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 4.42% 4.80%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 21%
--------------------------------------------------
Water and Sewer 19%
--------------------------------------------------
Housing/Single Family 10%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
BAR CHART:
Mar 0.068
Apr 0.068
May 0.068
Jun 0.068
Jul 0.068
Aug 0.068
Sep 0.068
Oct 0.068
Nov 0.068
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
2/2/01 15.05
15.00
15.00
15.01
15.10
15.04
14.20
14.75
14.06
14.35
14.28
14.32
14.24
14.95
14.83
14.94
14.85
15.15
15.50
15.40
15.30
15.46
15.70
15.80
15.54
15.55
15.48
15.65
15.74
15.75
16.16
15.60
15.59
15.10
15.01
15.50
15.35
15.68
15.24
15.30
15.27
15.12
15.13
11/30/01 15.04
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 30.5%. 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 36%.
NPV
Nuveen Virginia Premium Income Municipal Fund
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
PIE CHART:
AAA/U.S. Guaranteed 41%
AA 30%
A 19%
BBB 4%
NR 6%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.89
--------------------------------------------------
Net Asset Value $14.79
--------------------------------------------------
Market Yield 5.40%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.77%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.24%
--------------------------------------------------
Fund Net Assets ($000) $193,041
--------------------------------------------------
Average Effective Maturity (Years) 18.13
--------------------------------------------------
Leverage-Adjusted Duration 8.87
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 3/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.90% 10.40%
--------------------------------------------------
5-Year 8.64% 6.63%
--------------------------------------------------
Since Inception 6.30% 6.45%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S.Guaranteed 15%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
2000-2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
BAR CHART:
Dec 0.0670
Jan 0.0670
Feb 0.0670
Mar 0.0685
Apr 0.0685
May 0.0685
Jun 0.0695
Jul 0.0695
Aug 0.0695
Sep 0.0715
Oct 0.0715
Nov 0.0715
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
12/1/00 14.56
14.63
14.56
15.06
15.25
15.44
15.56
15.63
15.75
15.92
16.00
15.82
15.88
15.88
15.92
15.84
16.05
15.90
15.69
15.91
15.94
15.94
15.93
15.98
15.95
16.08
16.04
16.15
16.07
16.16
16.11
16.16
16.41
16.46
16.79
17.10
17.10
16.89
16.96
16.95
16.82
16.85
16.18
15.84
16.15
16.20
16.36
16.17
16.19
16.30
15.65
15.78
11/30/01 15.89
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 30.5%. 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 34.5%.
NGB
Nuveen Virginia Dividend Advantage Municipal Fund
Performance
OVERVIEW As of November 30, 2001
CREDIT QUALITY
PIE CHART:
AAA/U.S. Guaranteed 44%
AA 30%
A 17%
BBB 4%
NR 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.41
--------------------------------------------------
Net Asset Value $14.14
--------------------------------------------------
Market Yield 5.49%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.90%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.38%
--------------------------------------------------
Fund Net Assets ($000) $68,018
--------------------------------------------------
Average Effective Maturity (Years) 21.95
--------------------------------------------------
Leverage-Adjusted Duration 13.26
--------------------------------------------------
TOTAL RETURN (Inception 1/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 7.04% 3.19%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 20%
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Education and Civic Organizations 8%
--------------------------------------------------
2001 MONTHLY TAX-FREE DIVIDENDS PER SHARE
BAR CHART:
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
SHARE PRICE PERFORMANCE
LINE CHART:
Weekly Closing Price
1/26/01 15.32
15.59
15.58
15.45
15.25
15.15
15.50
15.75
15.75
15.30
15.23
15.07
14.35
15.30
15.15
14.97
15.00
15.25
15.00
14.98
15.05
15.05
15.21
15.28
15.14
15.45
15.55
16.00
15.94
16.16
16.00
15.97
15.80
15.28
15.30
15.74
15.80
15.78
15.70
15.41
15.40
15.35
15.50
11/30/01 15.41
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 30.5%. 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 34.5%.
Shareholder
MEETING REPORT
The Shareholder Meeting was held October 24, 2001 in Chicago
at Nuveen's headquarters.
NMY NNC
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred Preferred
Common Shares Shares Common Shares
Shares Series-W Series-TH Shares Series-TH
====================================================================================================================================
Robert P. Bremner
For 9,945,569 1,371 1,702 5,953,029 1,799
Withhold 47,267 1 -- 31,416 13
------------------------------------------------------------------------------------------------------------------------------------
Total 9,992,836 1,372 1,702 5,984,445 1,812
====================================================================================================================================
Lawrence H. Brown
For 9,945,376 1,371 1,702 5,953,029 1,799
Withhold 47,460 1 -- 31,416 13
------------------------------------------------------------------------------------------------------------------------------------
Total 9,992,836 1,372 1,702 5,984,445 1,812
====================================================================================================================================
Anne E. Impellizzeri
For 9,944,187 1,371 1,702 5,949,394 1,799
Withhold 48,649 1 -- 35,051 13
------------------------------------------------------------------------------------------------------------------------------------
Total 9,992,836 1,372 1,702 5,984,445 1,812
====================================================================================================================================
Peter R. Sawers
For 9,944,209 1,371 1,702 5,953,029 1,799
Withhold 48,627 1 -- 31,416 13
------------------------------------------------------------------------------------------------------------------------------------
Total 9,992,836 1,372 1,702 5,984,445 1,812
====================================================================================================================================
Judith M. Stockdale
For 9,936,870 1,371 1,702 5,953,029 1,799
Withhold 55,966 1 -- 31,416 13
------------------------------------------------------------------------------------------------------------------------------------
Total 9,992,836 1,372 1,702 5,984,445 1,812
====================================================================================================================================
William J. Schneider
For -- 1,371 1,702 -- 1,799
Withhold -- 1 -- -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,372 1,702 -- 1,812
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,371 1,702 -- 1,799
Withhold -- 1 -- -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,372 1,702 -- 1,812
====================================================================================================================================
Shareholder
MEETING REPORT (continued)
NPV
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Preferred Preferred
Common Shares Shares
Shares Series-T Series-TH
====================================================================================================================================
Robert P. Bremner
For 8,231,411 807 1,467
Withhold 55,486 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 8,286,897 807 1,469
====================================================================================================================================
Lawrence H. Brown
For 8,231,126 807 1,467
Withhold 55,771 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 8,286,897 807 1,469
====================================================================================================================================
Anne E. Impellizzeri
For 8,230,790 807 1,467
Withhold 56,107 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 8,286,897 807 1,469
====================================================================================================================================
Peter R. Sawers
For 8,227,305 807 1,467
Withhold 59,592 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 8,286,897 807 1,469
====================================================================================================================================
Judith M. Stockdale
For 8,227,472 807 1,467
Withhold 59,425 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total 8,286,897 807 1,469
====================================================================================================================================
William J. Schneider
For -- 807 1,467
Withhold -- -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 807 1,469
====================================================================================================================================
Timothy R. Schwertfeger
For -- 807 1,467
Withhold -- -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 807 1,469
====================================================================================================================================
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.5%
$ 1,130 The Children's Trust Fund, Puerto Rico, Tobacco Settlement Asset-Backed 7/10 at 100 Aa3 $ 1,189,732
Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.2%
1,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102 Baa3 1,020,150
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 Baa3 2,240,145
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 AAA 956,574
Revenue Bonds (University of Maryland - College Park Project),
2001 Series, 5.375%, 7/01/16
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Bullis School Issue, Series 2000:
750 5.250%, 7/01/25 1/11 at 101 AAA 765,458
500 5.250%, 7/01/30 1/11 at 101 AAA 509,025
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 AA 1,062,010
1,500 5.625%, 7/01/27 7/07 at 102 AA 1,571,040
9,445 Morgan State University, Maryland, Academic Fees and Auxiliary No Opt. Call AAA 10,924,087
Facilities Fees Revenue Refunding Bonds, 1993 Series,
6.100%, 7/01/20
4,000 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101 AAA 4,071,880
Series O, 5.375%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.3%
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 3,001,044
3,015 5.500%, 9/01/15 9/05 at 102 AAA 3,114,405
2,000 Maryland Health and Higher Educational Facilities Authority, Kaiser 6/09 at 101 A 2,025,240
Permanente Revenue Bonds, 1998 Series A, 5.375%, 7/01/15
750 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101 Baa1 822,720
Revenue Bonds, University of Maryland Medical System Issue,
Series 2000, 6.750%, 7/01/30
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds (Johns Hopkins Medicine), Howard County General
Hospital Acquisition Issue, Series 1998:
1,000 5.000%, 7/01/19 7/08 at 101 AAA 1,004,030
1,250 5.000%, 7/01/29 7/08 at 101 AAA 1,237,938
1,500 Maryland Health and Higher Educational Facilities Authority, 1/08 at 101 Aaa 1,490,160
Revenue Bonds, Upper Chesapeake Hospitals Issue, Series 1998A,
5.125%, 1/01/38
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A+ 958,880
Revenue Bonds (Greater Baltimore Medical Center), Series 2001,
5.000%, 7/01/34 (WI, settling 12/06/01)
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 B3 523,751
3,080 5.375%, 7/01/14 7/04 at 102 B3 1,566,303
6,000 5.300%, 7/01/24 7/04 at 102 B3 3,006,360
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 17.8%
$ 4,000 Anne Arundel County, Maryland, Multifamily Housing Revenue No Opt. Call BBB- $ 4,169,880
Bonds (Woodside Apartments Project), Series 1994,
7.450%, 12/01/24 (Alternative Minimum Tax) (Mandatory
put 12/01/03)
1,795 Charles County Commissioners, Maryland, Mortgage Revenue 5/05 at 102 AAA 1,887,784
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
(Normandy Woods III Apartments Project - FHA-Insured Mortgage
Loan), Series 1996A:
700 6.000%, 7/01/17 7/06 at 102 AAA 725,725
2,000 6.100%, 7/01/25 7/06 at 102 AAA 2,056,540
620 Community Development Administration, Department of Housing 5/02 at 102 N/R 635,395
and Community Development, Maryland, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1992 Series A,
6.850%, 5/15/33 (Alternative Minimum Tax)
1,130 Community Development Administration, Department of Housing 5/03 at 102 Aa2 1,168,590
and Community Development, Maryland, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series B,
6.625%, 5/15/23
2,500 Community Development Administration, Department of Housing 1/09 at 101 Aa2 2,475,500
and Community Development, Maryland, Housing Revenue Bonds,
1999 Series A, 5.350%, 7/01/41 (Alternative Minimum Tax)
880 Community Development Administration, Department of Housing 1/10 at 100 Aa2 919,644
and Community Development, Maryland, Housing Revenue Bonds,
Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax)
1,450 Community Development Administration, Department of Housing 2/11 at 101 Aaa 1,511,147
and Community Development, Maryland, Multifamily Development
Revenue Bonds (Edgewater Village Apartments Project),
Series 2000B, 5.800%, 8/01/20 (Alternative Minimum Tax)
3,075 Community Development Administration, Department of Housing 5/03 at 102 Aa3 3,124,631
and Community Development, Maryland, Multifamily Housing
Revenue Bonds (Insured Mortgage Loans), 1993 Series D,
6.050%, 5/15/24
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/05 at 102 Aa2 2,093,820
Multifamily Housing Revenue Bonds, 1995 Series A,
5.900%, 7/01/15
1,500 Montgomery County Housing Opportunities Commission, Maryland, 7/06 at 102 Aaa 1,555,140
Multifamily Housing Revenue Bonds, 1996 Series B,
5.900%, 7/01/26
3,830 Montgomery County Housing Opportunities Commission, Maryland, 7/08 at 101 Aaa 3,802,769
Multifamily Housing Development Bonds, 1998 Series A,
5.200%, 7/01/30
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100 Aaa 2,112,220
Multifamily Housing Development Bonds, Series 2000A,
6.100%, 7/01/30
1,000 Prince George's County Housing Authority, Maryland, Mortgage 1/03 at 102 AAA 1,031,810
Revenue Refunding Bonds (Stevenson Apartments Project -
GNMA Collateralized), Series 1993A, 6.350%, 7/20/20
Prince George's County Housing Authority, Maryland, Mortgage
Revenue Refunding Bonds (Cherry Hill Apartments Project), Series
1993A:
1,090 5.900%, 9/20/10 9/03 at 102 AAA 1,134,047
1,930 6.000%, 9/20/15 9/03 at 102 AAA 1,999,345
1,500 Prince George's County Housing Authority, Maryland, Mortgage 12/04 at 102 AAA 1,585,335
Revenue Refunding Bonds (Riverview Terrace Apartments
Project - GNMA Collateralized), Series 1995A, 6.700%, 6/20/20
Prince George's County Housing Authority, Maryland, Mortgage
Revenue Refunding Bonds (Overlook Apartments Project - GNMA
Collateralized), Series 1995A:
2,000 5.700%, 12/20/15 12/05 at 102 AAA 2,083,320
1,670 5.750%, 12/20/19 12/05 at 102 AAA 1,720,634
1,000 Prince George's County Housing Authority, Maryland, Mortgage 5/02 at 100 AAA 1,000,310
Revenue Refunding Bonds (Foxglenn Apartments Project -
GNMA Collateralized), Series 1998A, 5.450%, 11/20/14
(Alternative Minimum Tax)
540 Prince George's County Housing Authority, Maryland, Mortgage 9/09 at 102 AAA 560,893
Revenue Bonds (University Landing at Langley Apartments
Project - GNMA Collateralized), Series 1999, 6.100%, 3/20/41
(Alternative Minimum Tax)
1,000 City of Salisbury, Maryland, Mortgage Revenue Refunding Bonds 12/04 at 102 AAA 1,046,210
(College Lane Apartments Project - FHA-Insured Mortgage
Loan), Series 1995A, 6.600%, 12/01/26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.4%
$ 595 Community Development Administration, Department of Housing 4/04 at 102 Aa2 $ 607,168
and Community Development, Maryland, Single Family Program
Bonds, 1994 First Series, 5.900%, 4/01/11
1,000 Community Development Administration, Department of Housing 4/04 at 102 Aa2 1,033,000
and Community Development, Maryland, Single Family Program
Bonds, 1994 Fourth Series, 6.450%, 4/01/14
2,480 Community Development Administration, Department of Housing 4/04 at 102 Aa2 2,557,450
and Community Development, Maryland, Single Family Program
Bonds, 1994 Fifth Series, 6.750%, 4/01/26 (Alternative Minimum Tax)
605 Community Development Administration, Department of Housing 4/03 at 102 Aa2 624,529
and Community Development, Maryland, Single Family Program
Bonds, 1992 Fourth Series, 6.800%, 4/01/22 (Alternative
Minimum Tax)
1,455 Community Development Administration, Department of Housing 9/09 at 100 Aa2 1,535,185
and Community Development, Maryland, Residential Revenue
Bonds, 1999 Series H, 6.250%, 3/01/31 (Alternative Minimum Tax)
1,985 Community Development Administration, Department of Housing 9/09 at 100 Aa2 2,072,737
and Community Development, Maryland, Residential Revenue
Bonds, 2000 Series B, 6.150%, 9/01/32 (Alternative Minimum Tax)
1,995 Community Development Administration, Department of Housing 3/10 at 100 Aa2 2,110,610
and Community Development, Maryland, Residential Revenue
Bonds, 2000 Series D, 6.250%, 9/01/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing 4/06 at 102 Aa2 1,047,490
and Community Development, Maryland, Single Family Program
Bonds, 1996 Sixth Series, 6.200%, 4/01/22 (Alternative
Minimum Tax)
1,835 Montgomery County Housing Opportunities Commission, Maryland, 7/04 at 102 Aa2 1,938,604
Single Family Mortgage Revenue Bonds, 1994 Series A,
6.600%, 7/01/14
765 Prince George's County Housing Authority, Maryland, GNMA/FNMA 6/04 at 102 AAA 787,560
Collateralized Single Family Mortgage Revenue Bonds,
Series 1994A, 6.350%, 6/01/11 (Alternative Minimum Tax)
1,665 Prince George's County Housing Authority, Maryland, 8/07 at 102 AAA 1,721,910
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 1997, 5.625%, 8/01/17 (Alternative
Minimum Tax)
610 Prince George's County Housing Authority, Maryland, No Opt. Call AAA 642,495
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 2000A, 6.150%, 8/01/19
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3%
1,000 Carroll County, Maryland, Refunding Revenue Bonds (Fairhaven 1/09 at 101 AA 1,031,510
and Copper Ridge), EMA Obligated Group Issue, Series 1999A,
5.625%, 1/01/25
1,865 Maryland Economic Development Corporation, Revenue Bonds 4/11 at 102 N/R 1,900,845
(Health and Mental Hygiene Providers Facilities Acquisition
Program), Series 1996A, 7.625%, 4/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.9%
Baltimore County Metropolitan District, Maryland, General Obligation
Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101 AAA 2,505,425
2,000 5.000%, 6/01/26 6/11 at 101 AAA 2,002,600
1,000 City of Baltimore, Maryland, Mayor and City Council of Baltimore, No Opt. Call A+ 1,181,380
General Obligation Consolidated Public Improvement Serial Bonds
of 1989, Series B, 7.150%, 10/15/08
City of Baltimore, Maryland, Mayor and City Council of
Baltimore, General Obligation Consolidated Public Improvement
Refunding Bonds of 1995, Series A:
1,200 7.375%, 10/15/03 No Opt. Call AAA 1,309,260
5,000 7.250%, 10/15/04 No Opt. Call AAA
1,000 City of Baltimore, Maryland, Mayor and City Council of Baltimore, No Opt. Call AAA 1,142,870
General Obligation Consolidated Public Improvement Serial
Bonds of 1991, Series C, 6.375%, 10/15/07
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101 AA 3,106,110
Bonds of 1999, 5.250%, 7/01/18
500 Frederick County, Maryland, Villages of Lake Linganore Community 7/10 at 102 AA 511,340
Development Authority, Special Obligation Bonds, Series 2001A,
5.700%, 7/01/29
3,000 Montgomery County, Maryland, General Obligation Consolidated 1/10 at 101 AAA 3,351,570
Public Improvement Bonds of 2000, Series A, 5.750%, 1/01/19
2,000 Montgomery County, Maryland, General Obligation Consolidated 10/11 at 101 AAA 2,077,660
Public Improvement Bonds, Refunding Series 2001,
5.250%, 10/01/18 (WI, settling 12/20/01)
925 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100 A 964,044
Bonds, Series 2000A, 6.000%, 6/01/20
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Prince George's County, Maryland, General Obligation Consolidated 3/03 at 102 AAA $ 1,055,470
Public Improvement Bonds, Series 1993, 5.750%, 3/15/09
1,000 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101 AAA 1,031,930
Public Improvement Bonds, Series 2001, 5.250%, 12/01/20
(WI, settling 12/19/01)
500 Commonwealth of Puerto Rico, General Obligation Public 7/10 at 100 AAA 573,010
Improvement Bonds of 2000, 5.750%, 7/01/26
460 Wicomico County, Maryland, General Obligation Public Improvement 12/09 at 101 AAA 494,919
Bonds of 1999, 5.750%, 12/01/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.6%
2,730 Anne Arundel County, Maryland, General Obligation Bonds, 4/03 at 102 AA+ 2,857,682
Consolidated Water and Sewer 1993 Refunding Series,
5.250%, 4/15/12
1,465 Maryland Department of Housing and Community Development, 6/08 at 101 Aaa 1,480,749
Community Development Administration, Infrastructure Financing
Bonds (MBIA-Insured), 1998 Series B, 5.200%, 6/01/28
Maryland Department of Transportation, Certificates of Participation,
Series 2000:
950 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101 AA+ 983,982
1,005 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101 AA+ 1,039,371
4,455 Maryland Stadium Authority, Sports Facilities Lease Revenue 3/06 at 101 AAA 4,677,527
Bonds, Series 1996, 5.750%, 3/01/18
635 New Baltimore City Board of School Commissioners, Maryland, 11/10 at 100 AA+ 658,012
School System Revenue Bonds, Series 2000, 5.125%, 11/01/15
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/16 at 100 A 1,040,550
Bonds, Series 1996Y, 5.500%, 7/01/36
2,200 Puerto Rico Public Building Authority, Public Education and Health 7/03 at 101 1/2 A 2,270,752
Facilities Refunding Bonds, Series M, Guaranteed by the
Commonwealth of Puerto Rico, 5.750%, 7/01/15
2,000 Virgin Islands Public Finance Authority, Revenue Bonds (Gross 10/10 at 101 BBB- 2,166,020
Receipts Taxes 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 AAA 1,111,376
1,205 5.250%, 6/01/21 6/10 at 100 AAA 1,232,775
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.0%
5,500 Maryland Transportation Authority, Special Obligation Revenue 7/04 at 102 AAA 5,905,185
Bonds (Baltimore/Washington International Airport Projects),
Series 1994-A (Qualified Airport Bonds), 6.250%, 7/01/14
(Alternative Minimum Tax)
1,500 Maryland Transportation Authority, Revenue Bonds (Transportation 7/02 at 100 A+ 1,531,215
Facilities Projects), Series 1992, 5.750%, 7/01/15
2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds 6/06 at 102 BB 1,712,311
(American Airlines, Inc. Project), 1996 Series A,
6.250%, 6/01/26 (Alternative Minimum Tax)
2,000 Washington Metropolitan Area Transit Authority, District No Opt. Call AAA 2,232,820
of Columbia, Gross Revenue Transit Refunding Bonds,
Series 1993, 6.000%, 7/01/07
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.3%
1,000 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101 AA*** 1,135,360
Revenue Bonds, Johns Hopkins University Issue, Series 1999,
6.000%, 7/01/39 (Pre-refunded to 7/01/09)
1,875 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 AAA 1,926,994
Revenue Bonds, Good Samaritan Hospital Issue, Series 1993,
5.750%, 7/01/19
3,125 Maryland Health and Higher Educational Facilities Authority, 7/03 at 102 Aaa 3,182,250
Revenue Bonds, Howard County General Hospital Issue,
Series 1993, 5.500%, 7/01/25
2,500 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 2,519,725
Revenue Bonds, Helix Health Issue, Series 1997,
5.000%, 7/01/27
1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 1,058,730
Bonds, 2000 Series A, 5.500%, 10/01/20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 20.5%
$ 6,000 Anne Arundel County, Maryland, Pollution Control Revenue 4/04 at 102 A $ 6,213,120
Refunding Bonds (Baltimore Gas and Electric Company Project),
Series 1994, 6.000%, 4/01/24
6,500 Calvert County, Maryland, Pollution Control Revenue Refunding 7/04 at 102 A 6,728,800
Bonds (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 N/R 3,149,400
Congeneration 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 6/03 at 102 AAA 9,965,568
Bonds, 1993 Series A, 5.875%, 6/01/13 (Alternative
Minimum Tax)
Northeast Maryland Waste Disposal Authority, Resource Recovery
Revenue Refunding Bonds (Southwest Resource Recovery Facility),
Series 1993:
3,000 7.150%, 1/01/04 No Opt. Call AAA 3,256,320
4,675 7.200%, 1/01/05 1/04 at 102 AAA 5,132,075
5,000 Prince George's County, Maryland, Pollution Control Revenue 1/03 at 102 A1 5,183,350
Refunding Bonds (Potomac Electric Project), 1993 Series,
6.375%, 1/15/23
5,750 Prince George's County, Maryland, Solid Waste Management System 6/03 at 102 AAA 5,900,018
Revenue Bonds, Series 1993, 5.250%, 6/15/13
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/04 at 100 A- 1,012,060
Series T, 5.500%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.9%
3,000 City of Baltimore, Maryland, Mayor and City Council of Baltimore, No Opt. Call AAA 3,042,630
Project and Refunding Revenue Bonds (Water Projects),
Series 1994-A, 5.000%, 7/01/24
2,000 City of Baltimore, Maryland, Mayor and City Council of Baltimore, 7/08 at 101 AAA 1,999,919
Project and Refunding Revenue Bonds (Water Projects),
Series 1998-A, 5.000%, 7/01/28
1,000 City of Baltimore, Maryland, Mayor and City Council of Baltimore, 7/06 at 101 AAA 1,031,719
Project and Refunding Revenue Bonds (Water Projects),
Series 1996-A, 5.500%, 7/01/26
City of Baltimore, Maryland, Mayor and City Council of
Baltimore, Project and Refunding Revenue Bonds (Water Projects),
Series 2000-A:
590 6.000%, 7/01/15 7/10 at 100 AAA 659,330
500 6.000%, 7/01/17 7/10 at 100 AAA 554,969
1,500 City of Baltimore, Maryland, Project and Refunding Revenue 7/10 at 100 AAA 1,575,944
Bonds (Wastewater Projects), Series 2000A, 5.625%, 7/01/30
------------------------------------------------------------------------------------------------------------------------------------
$ 221,025 Total Investments (cost $219,637,150) - 99.7% 226,117,710
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.3% 611,214
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $226,728,924
====================================================================================================================
* 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. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.1%
$ 1,000 Northeast Maryland Waste Disposal Authority, Resource Recovery 1/09 at 101 BBB $ 972,630
Revenue Bonds (Baltimore RESCO Retrofit Project), Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.9%
2,825 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 2,974,330
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
Tobacco Settlement Revenue Management Authority, South Carolina,
Tobacco Settlement Asset-Backed Bonds, Series 2001B:
1,205 6.000%, 5/15/22 5/11 at 101 A1 1,240,319
1,075 6.375%, 5/15/28 5/11 at 101 A1 1,132,846
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.7%
Frederick County, Maryland, Educational Facilities Revenue Bonds
(Mount Saint Mary's College), Series 2001A:
465 5.700%, 9/01/20 3/10 at 101 BBB 470,385
1,000 5.750%, 9/01/25 3/10 at 101 BBB 1,008,820
500 5.800%, 9/01/30 3/10 at 101 BBB 505,045
1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101 A 1,867,662
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 AAA 1,004,870
Revenue Bonds (University of Maryland College Park Project),
2001 Series, 5.000%, 7/01/19
1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102 BBB- 1,518,360
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School Issue, 6.000%, 7/01/31
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 BBB 211,670
410 5.375%, 2/01/29 2/09 at 101 BBB 394,678
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.4%
2,725 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101 A 2,759,390
Kaiser Permanente Revenue Bonds, 1998 Series A,
5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102 A2 949,250
Revenue Bonds, Calvert Memorial Hospital Issue, Series 1998,
5.000%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101 AAA 1,003,740
Revenue Bonds, Anne Arundel Medical Center Issue,
Series 1998, 5.125%, 7/01/28
570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101 A3 556,839
Hospital Refunding and Revenue Bonds, Union Hospital of
Cecil County Issue, Series 1998, 5.100%, 7/01/22
1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100 AA- 1,225,738
Revenue Bonds, Johns Hopkins Hospital Issue, Series 2001,
5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A- 986,890
Revenue Bonds (Mercy Medical Center), Series 2001,
5.625%, 7/01/31 (WI, settling 12/12/01)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A+ 958,880
Revenue Bonds (Greater Baltimore Medical Center), Series 2001,
5.000%, 7/01/34 (WI, settling 12/06/01)
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A 1,960,580
Revenue Bonds (University of Maryland Medical System),
Series 2001, 5.250%, 7/01/28 (WI, settling 12/05/01)
20 Prince George's County, Maryland, Project and Refunding Revenue 7/04 at 102 B3 10,021
Bonds, Dimensions Health Corporation Issue, Series 1994,
5.300%, 7/01/24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.6%
$ 750 Baltimore County, Maryland, Mortgage Revenue Refunding Bonds 10/08 at 102 AAA $ 741,938
(GNMA Collateralized - Cross Creek Apartments Project),
Series 1998A, 5.250%, 10/20/33
2,000 Community Development Administration, Department of Housing 7/08 at 101 Aa2 2,045,940
and Community Development, Maryland, Housing Revenue
Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing 5/11 at 100 Aa3 986,070
and Community Development, Maryland, Multifamily Housing
Revenue Bonds (Insured Mortgage Loan), 2001 Series B,
5.350%, 5/15/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing 12/11 at 100 Aaa 1,003,190
and Community Development, Maryland, Multifamily Housing
Revenue Bonds (Princess Anne Apartments Project), Series 2001D,
5.450%, 12/15/33 (Alternative Minimum Tax) (WI, settling 12/06/01)
750 Montgomery County Housing Opportunities Commission, Maryland, 7/08 at 101 Aaa 736,028
Multifamily Housing Development Bonds, 1998 Series A,
5.250%, 7/01/29 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100 Aaa 2,110,640
Multifamily Housing Development Bonds, Series 2000B,
6.200%, 7/01/30 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/11 at 100 Aaa 2,012,260
Multifamily Housing Development Bonds, Series 2001A,
5.600%, 7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 17.7%
215 Community Development Administration, Department of Housing 9/09 at 100 Aa2 223,353
and Community Development, Maryland, Residential Housing
Revenue Bonds, 1997 Series E, 5.700%, 9/01/17
3,000 Community Development Administration, Department of Housing 9/09 at 100 Aa2 3,101,940
and Community Development, Maryland, Residential Revenue
Bonds, 2000 Series G, 5.950%, 9/01/29 (Alternative Minimum Tax)
1,975 Community Development Administration, Department of Housing 9/10 at 100 Aa2 2,010,866
and Community Development, Maryland, Residential Revenue
Bonds, Series H, 5.800%, 9/01/32 (Alternative Minimum Tax)
3,865 Community Development Administration, Department of Housing 10/10 at 100 Aa2 3,878,450
and Community Development, Maryland, Single Family Program
Bonds, First Series 2001, 5.000%, 4/01/17
1,000 Community Development Administration, Department of Housing 9/10 at 100 Aa2 1,006,970
and Community Development, Maryland, Residential Revenue
Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing 3/11 at 100 Aa2 1,010,110
and Community Development, Maryland, Residential Revenue
Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative Minimum Tax)
3,185 Montgomery County Housing Opportunities Commission, 7/07 at 102 Aa2 3,394,095
Maryland, Single Family Mortgage Revenue Bonds, 1997 Series A,
5.750%, 7/01/13
1,500 Prince George's County Housing Authority, Maryland, Single Family 8/07 at 102 AAA 1,539,105
Mortgage Revenue Bonds (FHLMC/FNMA/GNMA Collateralized),
Series 1997, 5.750%, 8/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1%
1,000 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101 N/R 1,007,200
Revenue Bonds (Collington Episcopal Life), Series 2001A,
6.750%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.2%
Anne Arundel County, Maryland, General Obligation Various
Purpose Bonds, Series 2001:
580 4.800%, 2/15/18 2/11 at 101 AA+ 574,484
900 5.000%, 2/15/28 2/11 at 101 AA+ 897,849
Baltimore County Metropolitan District, Maryland, General Obligation
Bonds, 67th Issue:
1,500 5.000%, 6/01/26 6/11 at 101 AAA 1,501,950
3,500 5.000%, 6/01/27 6/11 at 101 AAA 3,503,325
Howard County, Maryland, Consolidated Public Improvement Bonds,
Series 2001A:
1,210 4.750%, 2/15/19 2/09 at 101 AAA 1,189,672
1,220 4.750%, 2/15/20 2/09 at 101 AAA 1,196,161
1,360 4.750%, 2/15/21 2/09 at 101 AAA 1,330,556
430 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100 A 448,150
Bonds, Series 2000A, 6.000%, 6/01/20
740 Mayor and City Council of Ocean City, Maryland, General Obligation 3/11 at 101 AAA 732,289
Municipal Purpose Bonds, Series 2001, 4.875%, 3/01/19
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,500 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101 AAA $ 1,547,895
Public Improvement Bonds, Series 2001, 5.250%, 12/01/20
(WI, settling 12/19/01)
410 Commonwealth of Puerto Rico, General Obligation Public 7/08 at 101 AAA 411,546
Improvement Refunding Bonds, Series 1998B, 5.000%, 7/01/24
410 Commonwealth of Puerto Rico, General Obligation Public 7/08 at 101 A 402,235
Improvement Bonds, Series 1999, 5.000%, 7/01/28
1,000 Commonwealth of Puerto Rico, General Obligation Public 7/11 at 100 AAA 1,008,320
Improvement Refunding Bonds, Series 2001, 5.125%, 7/01/30
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.5%
500 City of Baltimore, Maryland, Mayor and City Council of Baltimore, 9/08 at 102 AAA 502,955
Convention Center Refunding Revenue Bonds, Series 1998,
5.000%, 9/01/19
2,150 Puerto Rico Infrastructure Financing Authority, Special Tax Revenue 1/08 at 101 AAA 2,163,416
Bonds, Series 1997A, 5.000%, 7/01/21
1,290 Virgin Islands Public Finance Authority, Revenue Bonds (Gross 10/10 at 101 BBB- 1,397,225
Receipts Taxes 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 AAA 898,696
935 5.000%, 6/01/23 6/11 at 100 AAA 938,160
985 5.000%, 6/01/24 6/11 at 100 AAA 987,581
1,035 5.000%, 6/01/25 6/11 at 100 AAA 1,036,935
365 Washington Suburban Sanitary District, Montgomery and 6/11 at 100 AAA 359,828
Prince George's Counties, Maryland, Sewage Disposal Bonds
of 2001, 4.750%, 6/01/20
1,290 Washington Suburban Sanitary District, Montgomery and 6/11 at 100 AAA 1,271,721
Prince George's Counties, Maryland, Water Supply Bonds of 2001,
4.750%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.8%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, Johns Hopkins Medical Institutions Issue
of 2001:
650 5.000%, 7/01/27 7/11 at 100 AAA 644,592
1,500 5.000%, 7/01/34 7/11 at 100 AAA 1,479,975
1,750 Minneapolis-St. Paul Metropolitan Airports Commission, 4/11 at 101 N/R 1,366,050
Minnesota, Special Facilities Revenue Bonds (Northwest
Airlines, Inc. Project), Series 2001A, 7.000%, 4/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 6.2%
1,000 Maryland Transportation Authority, Transportation Facilities Project No Opt. Call AAA 1,168,960
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 AAA 2,414,402
2,000 5.500%, 10/01/40 10/10 at 101 AAA 2,093,260
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.0%
Guam Power Authority, Revenue Bonds, 1999 Series A:
890 5.125%, 10/01/29 10/09 at 101 AAA 895,660
1,000 5.125%, 10/01/29 10/09 at 101 AAA 1,006,360
2,500 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102 N/R 2,624,500
Congeneration 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 7/05 at 100 A- 1,810,134
Bonds, Series Z, 5.250%, 7/01/21
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.2%
$ 1,000 City of Baltimore, Maryland, Mayor and City Council of Baltimore, No Opt. Call AAA $ 1,014,209
Project and Refunding Revenue Bonds (Water Projects),
Series 1994-A, 5.000%, 7/01/24
1,015 City of Baltimore, Maryland, Mayor and City Council of Baltimore, 7/08 at 101 AAA 1,014,958
Project and Refunding Revenue Bonds (Water Projects),
Series 1998-A, 5.000%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 91,410 Total Investments (cost $91,809,507) - 101.4% 92,355,107
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5%
$ 500 Puerto Rico Government Development Bank, Revenue Refunding VMIG-1 500,000
============= Bonds, Series 1985, Variable Rate Demand Bonds,
1.170%, 12/01/15+
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.9)% (1,709,234)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $91,145,873
====================================================================================================================
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 2.4%
$ 2,250 Northeast Maryland Waste Disposal Authority, Resource Recovery 1/09 at 101 BBB $ 2,188,418
Revenue Bonds (Baltimore RESCO Retrofit Project), Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0%
1,000 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 1,057,980
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
800 Virgin Islands Tobacco Settlement Financing Corporation, 5/11 at 100 A3 765,544
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.9%
250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102 BBB- 253,060
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School Issue, 6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities Authority, 1/11 at 101 AAA 422,491
Revenue Bonds, Series 2000, Bullis School Issue,
5.250%, 7/01/30
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102 AA 1,055,360
Refunding Revenue Bonds, Johns Hopkins University Issue,
Series 1998, 5.125%, 7/01/12
1,400 Maryland Health and Higher Educational Facilities Authority, 10/08 at 101 AAA 1,313,130
Revenue Bonds, College of Notre Dame of Maryland Issue,
Series 1998, 4.650%, 10/01/23
2,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 AA 2,422,025
Revenue Bonds (Johns Hopkins University), Series 2001B,
5.000%, 7/01/41
University of Maryland, System Auxiliary Facility and Tuition
Revenue Bonds, 2001 Series B:
1,580 4.375%, 4/01/17 4/11 at 100 AA+ 1,491,030
1,140 4.500%, 4/01/19 4/11 at 100 AA+ 1,075,237
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.0%
3,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101 AAA 3,008,130
Revenue Bonds, Anne Arundel Medical Center Issue, Series 1998,
5.125%, 7/01/33
3,000 Maryland Health and Higher Educational Facilities Authority, 1/08 at 101 Aaa 2,980,320
Revenue Bonds, Upper Chesapeake Hospitals Issue, Series 1998A,
5.125%, 1/01/38
2,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100 AA- 1,926,940
Revenue Bonds, Johns Hopkins Hospital Issue, Series 2001,
5.000%, 5/15/34
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A- 1,973,780
Revenue Bonds (Mercy Medical Center), Series 2001,
5.625%, 7/01/31 (WI, settling 12/12/01)
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A+ 1,438,320
Revenue Bonds (Greater Baltimore Medical Center), Series 2001,
5.000%, 7/01/34 (WI, settling 12/06/01)
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100 A 1,960,580
Revenue Bonds (University of Maryland Medical System),
Series 2001, 5.250%, 7/01/28 (WI, settling 12/05/01)
2,160 Montgomery County, Maryland, Economic Development Revenue 12/11 at 100 AA- 2,127,233
Bonds (Trinity Healthcare Group), Series 2001, 5.125%, 12/01/22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.5%
$ 280 Community Development Administration, Department of Housing 5/11 at 100 Aa3 $ 276,231
and Community Development, Maryland, Multifamily Housing
Insured Mortgage Loans, Series 2001A, 5.100%, 5/15/28
5,000 Community Development Administration, Department of Housing 5/11 at 100 Aa3 4,930,350
and Community Development, 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 12/11 at 100 Aaa 1,113,541
and Community Development, Maryland, Multifamily Housing
Revenue Bonds (Princess Anne Apartments Project), Series 2001D,
5.450%, 12/15/33 (Alternative Minimum Tax) (WI, settling 12/06/01)
3,145 Community Development Administration, Department of Housing 12/11 at 100 Aaa 3,155,033
and Community Development, Maryland, Multifamily Development
Revenue Bonds (Waters Towers Senior Apartments), Series 2001F,
5.450%, 12/15/33 (Alternative Minimum Tax) (WI, settling 12/06/01)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.7%
500 Community Development Administration, Department of Housing 3/07 at 101 1/2 Aa2 517,080
and Community Development, Maryland, Residential Revenue
Bonds, Series 1997B, 5.875%, 9/01/25 (Alternative Minimum Tax)
1,000 Community Development Administration, Department of Housing 9/10 at 100 Aa2 985,950
and Community Development, Maryland, Residential Revenue
Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.8%
500 Carroll County Commissioners, Maryland, General Obligation 10/08 at 101 AA 502,850
Consolidated Public Improvement Bonds, Series 1998,
4.400%, 10/01/12
Cecil County, Maryland, General Obligation Consolidated Public
Improvement Bonds, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101 A+ 938,867
1,020 4.600%, 8/01/19 8/11 at 101 A+ 977,170
300 4.625%, 8/01/20 8/11 at 101 A+ 284,787
335 4.750%, 8/01/21 8/11 at 101 A+ 322,742
510 City of Frederick, Maryland, General Obligation General Improvement 12/11 at 101 AA- 501,218
Bonds, 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 2,695,319
1,500 5.500%, 3/01/12 No Opt. Call AAA 1,652,445
4,730 Montgomery County, Maryland, General Obligation Consolidated 10/11 at 101 AAA 4,913,666
Public Improvement Bonds, Refunding Series 2001,
5.250%, 10/01/18 (WI, settling 12/20/01)
Prince George's County, Maryland, General Obligation Consolidated
Public Improvement Bonds, Series 2001:
1,000 5.250%, 12/01/20 (WI, settling 12/19/01) 12/11 at 101 AAA 1,031,930
2,820 5.250%, 12/01/21 (WI, settling 12/19/01) 12/11 at 101 AAA 2,904,882
590 Commonwealth of Puerto Rico, General Obligation Public 7/08 at 101 AAA 592,224
Improvement Refunding Bonds, Series 1998B, 5.000%, 7/01/24
Commonwealth of Puerto Rico, General Obligation Public
Improvement Refunding Bonds, Series 2001:
2,000 5.000%, 7/01/24 7/11 at 100 AAA 2,008,240
620 5.125%, 7/01/30 7/11 at 100 AAA 625,158
1,500 Commonwealth of Puerto Rico, General Obligation Public No Opt. Call A 1,603,320
Improvement Bonds, Series 2002A, 5.500%, 7/01/29
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.1%
$ 750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101 AA+ $ 709,238
Consolidated Water and Sewer Series 1999, 4.500%, 8/01/19
3,220 Puerto Rico Highway and Transportation Authority, Transportation 7/08 at 101 AAA 3,216,555
Revenue Bonds, Series A, 5.000%, 7/01/28
Puerto Rico Infrastructure Financing Authority, Special Tax Revenue
Bonds, Series 1997A:
1,600 5.000%, 7/01/21 1/08 at 101 AAA 1,609,984
1,000 5.000%, 7/01/28 1/08 at 101 AAA 998,930
1,150 Puerto Rico Public Building Authority, Government Facilities Revenue 7/07 at 101 1/2 AAA 1,150,529
Bonds, Series B, Guaranteed by the Commonwealth of Puerto Rico,
5.000%, 7/01/27
Puerto Rico Public Finance Corporation, Commonwealth Appropriation
Bonds, Series 2001A:
1,300 5.000%, 8/01/21 8/11 at 100 AAA 1,309,334
2,000 5.000%, 8/01/29 8/11 at 100 AAA 1,995,400
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.0%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, Johns Hopkins Medical Institutions Issue
of 2001:
650 5.000%, 7/01/27 7/11 at 100 AAA 644,592
3,025 5.000%, 7/01/34 7/11 at 100 AAA 2,984,616
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.8%
1,250 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,290,363
Revenue Bonds, Helix Health Issue, Series 1997, 5.000%, 7/01/17
1,365 Maryland Transportation Authority, Transportation Facilities Project No Opt. Call AAA 1,595,630
Revenue Bonds, First Series Refunding, 6.800%, 7/01/16
4,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 4,186,520
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2%
Guam Power Authority, Revenue Bonds, 1999 Series A:
740 5.125%, 10/01/29 10/09 at 101 AAA 744,706
1,000 5.250%, 10/01/34 10/09 at 101 AAA 1,014,970
1,000 Maryland Energy Financing Administration, Limited Obligation 9/05 at 102 N/R 1,049,800
Congeneration Revenue Bonds (AES Warrior Run Project),
Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101 AAA 1,019,189
Series HH, 5.250%, 7/01/29 (DD1, settling 12/07/01)
------------------------------------------------------------------------------------------------------------------------------------
$ 84,925 Total Investments (cost $85,954,870) - 94.4% 85,512,937
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 23.9%
1,600 Farmington Hills Hospital Finance Authority, Michigan, Hospital VMIG-1 1,600,000
Revenue Bonds (Botsford General Hospital), Series 1991B,
Variable Rate Demand Bonds, 1.600%, 2/15/16+
2,500 Fayetteville Public Facilities Board, Arkansas, Revenue Refunding VMIG-1 2,500,000
Bonds (Butterfield Trail Village Project), Series 1997, Variable
Rate Demand Bonds, 1.550%, 9/01/27+
2,000 Jay Street Development Corporation, New York, Courts Facility VMIG-1 2,000,000
Lease Revenue Bonds (New York City - Jay Street Project),
Fiscal 2001 Series A-2, Variable Rate Demand Bonds,
1.300%, 5/01/20+
2,000 Maryland Energy Financing Administration, Limited Obligation VMIG-1 2,000,000
Solid Waste Disposal Facility Revenue Bonds (Cimenteries
CBR S.A. Project), 2000 Series, Variable Rate Demand Bonds,
1.700%, 5/01/35+
2,000 Maryland Health and Higher Educational Facilities Authority, VMIG-1 2,000,000
Pooled Loan Program Revenue Bonds, Series 1985A, Variable Rate
Demand Bonds, 1.450%, 4/01/35+
2,000 Multnomah County, Oregon, Higher Education Revenue Bonds VMIG-1 2,000,000
(Concordia University of Portland Project), Series 1999, Variable
Rate Demand Bonds, 1.600%, 12/01/29+
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (continued)
$ 1,400 New York City Municipal Water Finance Authority, New York, VMIG-1 $ 1,400,000
Water and Sewer System Revenue Bonds, Fiscal 1993 Series C,
Variable Rate Demand Bonds, 1.450%, 6/15/22+
1,700 New York City Transitional Finance Authority, New York, Future VMIG-1 1,700,000
Tax Secured Revenue Bonds, Fiscal Year 1999 Series B,
Subseries B-2, Variable Rate Demand Bonds, 1.550%, 11/01/26+
6,500 Puerto Rico Government Development Bank, Revenue Refunding VMIG-1 6,500,000
Bonds, Series 1985, Variable Rate Demand Bonds,
1.170%, 12/01/15+
------------------------------------------------------------------------------------------------------------------------------------
$ 21,700 Total Short-Term Investments (cost $21,700,000) 21,700,000
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (18.3)% (16,558,363)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $90,654,574
====================================================================================================================
* 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.
(DD1) Portion of security purchased on a delayed delivery
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.
Nuveen North Carolina Premium Income Municipal Fund (NNC)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 4.0%
$ 3,500 Haywood County Industrial Facilities and Pollution Control 12/05 at 102 BBB $ 3,450,720
Financing Authority, North Carolina, Environmental Improvement
Revenue Bonds (Champion International Corporation Project),
Series 1995A, 5.750%, 12/01/25 (Alternative Minimum Tax)
2,000 Haywood County Industrial Facilities and Pollution Control 3/06 at 102 Baa2 2,027,960
Financing Authority, North Carolina, Pollution Control Revenue
Refunding Bonds (Champion International Corporation Project),
Series 1995, 6.000%, 3/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.1%
North Carolina Education Assistance Authority, Guaranteed
Student Loan Revenue Bonds, 1995 Series A (Subordinate Lien):
1,000 6.050%, 7/01/10 (Alternative Minimum Tax) 7/05 at 102 A2 1,051,390
2,400 6.300%, 7/01/15 (Alternative Minimum Tax) 7/05 at 102 A2 2,504,016
5,875 North Carolina Education Assistance Authority (A Political 7/06 at 102 A2 6,154,063
Subdivision of the State of North Carolina), Guaranteed Student
Loan Revenue Bonds, 1996 Series C (Subordinate Lien),
6.350%, 7/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.1%
5,000 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101 AA 4,697,350
Healthcare System Revenue Bonds (DBA Carolinas Healthcare
System), Series 2001A, 5.000%, 1/15/31 (WI, settling 12/13/01)
2,000 North Carolina Medical Care Commission, Healthcare Facilities 10/09 at 101 A 2,114,540
Revenue Bonds (Stanly Memorial Hospital Project), Series 1999,
6.375%, 10/01/29
5,750 North Carolina Medical Care Commission, Healthcare Facilities 10/11 at 101 AAA 5,615,278
Revenue Bonds (WakeMed Project), Series 2001,
5.000%, 10/01/32
3,000 North Carolina Medical Care Commission, Hospital Revenue 5/02 at 102 AA- 3,032,640
Refunding Bonds (Carolina Medicorp Project), Series 1992,
5.500%, 5/01/15
5,615 North Carolina Medical Care Commission, Hospital Revenue Bonds 10/08 at 101 AA- 5,072,535
(FirstHealth of the Carolinas Project), Series 1998,
4.750%, 10/01/26
5,000 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101 AA 4,842,300
Bonds (Mission-Saint Joseph Health System), Series 2001,
5.250%, 10/01/31
3,340 Board of Governors of the University of North Carolina, University 2/06 at 102 AA 3,287,996
of North Carolina Hospitals at Chapel Hill, Revenue Bonds,
Series 1996, 5.250%, 2/15/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7%
1,000 City of Asheville Housing Authority, North Carolina, Multifamily 11/07 at 102 AAA 1,009,440
Housing Revenue Bonds (GNMA Collateralized - Woodridge
Apartments), Series 1997, 5.800%, 11/20/39 (Alternative
Minimum Tax)
1,000 City of Charlotte, North Carolina, Mortgage Revenue Refunding 1/03 at 105 AAA 1,025,870
Bonds (FHA-Insured Mortgage Loan - Tryon Hills Apartments
Project), Series 1993A, 5.875%, 1/01/25
North Carolina Housing Finance Agency, Multifamily Revenue Bonds
(1993 FHA-Insured Mortgage Loan Resolution), Series 1993:
650 5.800%, 7/01/14 1/03 at 102 AA 658,736
1,000 5.900%, 7/01/26 1/03 at 102 AA 1,014,490
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 14.9%
4,095 North Carolina Housing Finance Agency, Single Family Revenue 3/04 at 102 AA 4,268,587
Bonds, Series X (1985 Resolution), 6.700%, 9/01/26
(Alternative Minimum Tax)
2,600 North Carolina Housing Finance Agency, Single Family Revenue 9/02 at 102 AA 2,676,466
Bonds, Series V (1985 Resolution), 6.800%, 9/01/25 (Alternative
Minimum Tax)
6,570 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100 AA 6,878,264
Bonds, Series 6A, 1998 Trust Agreement, 6.200%, 1/01/29
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 3,990 North Carolina Housing Finance Agency, Single Family Revenue 3/06 at 102 AA $ 4,121,630
Bonds, Series HH (1985 Resolution), 6.300%, 3/01/26 (Alternative
Minimum Tax)
2,370 North Carolina Housing Finance Agency, Home Ownership Program 7/10 at 100 AAA 2,373,745
Bonds, Series 10A, 1998 Trust Agreement, 5.400%, 7/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.3%
2,000 Orange County, North Carolina, General Obligation School Bonds, 2/04 at 102 AA+ 2,149,360
Series 1994, 5.500%, 2/01/11
6,250 Commonwealth of Puerto Rico, General Obligation Public 7/06 at 101 1/2 A 6,367,813
Improvement Bonds of 1996, 5.400%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.6%
6,000 City of Charlotte, North Carolina, Refunding Certificates of 12/03 at 102 AAA 6,041,940
Participation (Convention Facility Project), Series 1993C,
5.250%, 12/01/20
2,180 City of Concord, North Carolina, Certificates of Participation, 6/06 at 102 AAA 2,350,738
Series 1996A, 6.125%, 6/01/21
3,970 City of Durham, North Carolina, Certificates of Participation 7/02 at 102 AA+ 4,156,789
(Water Utility Improvements), 6.375%, 7/15/12
750 Johnston County Finance Corporation, North Carolina, Installment 8/09 at 101 AAA 760,110
Payment Revenue Bonds (School and Museum Projects),
Series 1999, 5.250%, 8/01/21
5,000 Puerto Rico Highway and Transportation Authority, Highway Revenue 7/06 at 101 1/2 AAA 5,196,850
Bonds, Series 1996Y, 5.500%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.6%
5,000 Raleigh-Durham Airport Authority, North Carolina, Airport Revenue 5/11 at 101 Aaa 4,852,550
Bonds, Series 2001A, 5.000%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.8%
Charlotte-Mecklenburg Hospital Authority, North Carolina, Healthcare
System Revenue Bonds, Series 1992:
1,000 5.750%, 1/01/12 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 1,023,190
1,500 5.750%, 1/01/12 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 1,534,785
2,150 6.250%, 1/01/20 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 2,200,783
2,940 6.250%, 1/01/20 (Pre-refunded to 1/01/02) 1/02 at 102 AA*** 3,009,443
2,680 North Carolina Municipal Power Agency Number 1, Catawba Electric No Opt. Call AAA 3,414,963
Revenue Bonds, Series 1980, 10.500%, 1/01/10
1,050 Orange Water and Sewer Authority, North Carolina, Water and 7/03 at 102 Aa1*** 1,115,604
Sewer System Revenue and Revenue Refunding Bonds,
Series 1993, 5.200%, 7/01/16 (Pre-refunded to 7/01/03)
2,280 Board of Governors of the University of North Carolina, 2/02 at 102 AA*** 2,344,250
University of North Carolina Hospitals at Chapel Hill, Revenue
Bonds, Series 1992, 6.000%, 2/15/24 (Pre-refunded to 2/15/02)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.0%
2,900 City of Fayetteville, North Carolina, Public Works Commission 3/07 at 101 AAA 2,903,248
Revenue Bonds, Series 1997, 5.125%, 3/01/24
5,000 North Carolina Eastern Municipal Power Agency, Power System 1/03 at 102 BBB 5,000,000
Revenue Bonds, Series 1993-D, 5.600%, 1/01/16
1,500 North Carolina Eastern Municipal Power Agency, Power System 9/03 at 102 1/2 BBB 1,513,200
Revenue Bonds, Series 1985-G, 5.750%, 12/01/16
4,000 North Carolina Municipal Power Agency Number 1, Catawba Electric 1/10 at 101 BBB+ 4,230,040
Revenue Bonds, Series 1999B, 6.500%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.0%
4,000 City of Charlotte, North Carolina, Water and Sewer System Revenue 6/10 at 101 AAA 4,052,240
Bonds, Series 2000, 5.250%, 6/01/25
2,000 City of Charlotte, North Carolina, Storm Water Fee Revenue Bonds, 6/10 at 101 AA+ 2,187,360
Series 2000, 6.000%, 6/01/25
Nuveen North Carolina Premium Income Municipal Fund (NNC) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,350 Orange Water and Sewer Authority, North Carolina, Water and 7/03 at 102 Aa1 $ 2,379,516
Sewer System Revenue and Revenue Refunding Bonds,
Series 1993, 5.200%, 7/01/16
2,180 Union County, North Carolina, Enterprise Systems Revenue Bonds, 6/06 at 102 AAA 2,245,355
Series 1996, 5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 136,435 Total Investments (cost $133,111,591) - 102.1% 138,908,143
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (2.1)% (2,797,220)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $136,110,923
====================================================================================================================
* 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. Securities are normally
considered to be equivalent to AAA rated securities.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 5.4%
$ 750 Columbus County, North Carolina, Industrial Facilities and Pollution 4/07 at 102 BBB $ 764,085
Control Financing Authority, Environmental Improvement Revenue
Bonds (International Paper Company Project), Series 1997A,
6.150%, 4/01/21 (Alternative Minimum Tax)
750 Columbus County, North Carolina, Industrial Facilities and Pollution 12/07 at 102 BBB 755,528
Control Financing Authority, Solid Waste Disposal Revenue Bonds
(International Paper Company Project), Series 1996A Refunding,
5.800%, 12/01/16 (Alternative Minimum Tax)
1,100 Northampton County, North Carolina, Industrial Facilities and 2/11 at 101 BBB 1,123,892
Pollution Control Financing Authority, Environmental Improvement
Revenue Bonds (International Paper Company Project), Series 2001A,
6.200%, 2/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.0%
500 North Carolina Capital Facilities Finance Agency, Educational 9/11 at 101 A3 492,775
Facilities Revenue Bonds (High Point University Project),
Series 2001, 5.125%, 9/01/18
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101 BBB 962,630
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds (Ana G. Mendez University System
Project), Series 1999, 5.375%, 2/01/29
2,000 The University of North Carolina at Chapel Hill, General Revenue 6/11 at 100 AA+ 1,971,120
Bonds, Series 2001A, 5.000%, 12/01/25
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 2.1%
1,000 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101 BBB- 1,043,010
Revenue Bonds (Valero Energy Corporation Project), Series 2001,
6.650%, 4/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.4%
2,500 Charlotte-Mecklenburg Hospital Authority, North Carolina, 1/11 at 101 AA 2,348,675
Healthcare System Revenue Bonds (DBA Carolinas Healthcare
System), Series 2001A, 5.000%, 1/15/31 (WI, settling 12/13/01)
2,500 North Carolina Medical Care Commission, Healthcare Revenue 5/07 at 100 AA- 2,447,675
Bonds (Carolina Medicorp Project), Series 1996, 5.250%, 5/01/26
2,450 North Carolina Medical Care Commission, Healthcare Facilities 10/11 at 101 AAA 2,392,597
Revenue Bonds (WakeMed Project), Series 2001, 5.000%, 10/01/32
1,500 North Carolina Medical Care Commission, Hospital Revenue Bonds 10/08 at 101 AA- 1,355,085
(FirstHealth of the Carolinas Project), Series 1998,
4.750%, 10/01/26
2,000 North Carolina Medical Care Commission, Health System Revenue 10/11 at 101 AA 1,936,920
Bonds (Mission-Saint Joseph Health System), Series 2001,
5.250%, 10/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.6%
2,250 City of Durham Housing Authority, North Carolina, Multifamily 6/11 at 100 AAA 2,273,670
Housing Revenue Bonds (Naples Terrace Apartments Project -
FNMA Guaranteed), Series 2001, 5.700%, 6/01/33 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.6%
2,980 North Carolina Housing Finance Agency, Home Ownership Revenue 7/09 at 100 AA 3,022,972
Bonds, Series 5A, 1998 Trust Agreement, 5.625%, 7/01/30
(Alternative Minimum Tax)
2,200 North Carolina Housing Finance Agency, Home Ownership Program 7/10 at 100 AAA 2,203,476
Bonds, Series 10A, 1998 Trust Agreement, 5.400%, 7/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.1%
2,000 North Carolina Medical Care Commission, Healthcare Facilities 4/11 at 101 N/R 2,024,380
Revenue Bonds (Salemtowne Project - First Mortgage), Series 2001,
6.625%, 4/01/31
Nuveen North Carolina Dividend Advantage Municipal Fund (NRB) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.9%
$ 4,125 Galveston County, Texas, Justice Center and Public Safety Building No Opt. Call Aaa $ 1,302,593
Bonds, Series 2001, 0.000%, 2/01/23
3,500 Commonwealth of Puerto Rico, General Obligation Public 7/06 at 101 1/2 A 3,565,975
Improvement Bonds of 1996, 5.400%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.1%
1,500 Centennial Authority, North Carolina, Hotel Tax Revenue Bonds 9/07 at 102 AAA 1,509,510
(Arena Project), Series 1997, 5.125%, 9/01/19
500 Forsyth County, North Carolina, Certificates of Participation 10/11 at 101 AA+ 493,065
(Public Facilities and Equipment Project), Series 2001,
5.000%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.9%
2,500 Raleigh-Durham Airport Authority, North Carolina, Airport Revenue 5/11 at 101 Aaa 2,426,275
Bonds, Series 2001A, 5.000%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.7%
City of Greenville Utilities Commission, North Carolina,
Combined Enterprise System Revenue Bonds, Series 2001:
1,000 5.250%, 9/01/20 9/11 at 101 AAA 1,015,110
500 5.250%, 9/01/21 9/11 at 101 AAA 506,730
North Carolina Eastern Municipal Power Agency, Power System
Revenue Bonds, Series 1999B Refunding:
1,000 5.650%, 1/01/16 1/09 at 102 BBB 1,003,610
1,775 5.750%, 1/01/24 1/09 at 102 BBB 1,755,209
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 19.6%
3,040 Broad River Water Authority, North Carolina, Water System 6/10 at 101 Aaa 3,111,045
Revenue Bonds, Series 2000, 5.375%, 6/01/26
3,000 City of Charlotte, North Carolina, Water and Sewer System 6/11 at 101 AAA 3,019,620
Revenue Bonds, Series 2001, 5.125%, 6/01/26
City of Greensboro, North Carolina, Combined Enterprise System
Revenue Bonds, Series 2001A:
500 5.125%, 6/01/20 6/11 at 101 AA- 502,825
500 5.125%, 6/01/21 6/11 at 101 AA- 501,609
2,500 City of Kannapolis, North Carolina, Water and Sewer Revenue 2/12 at 101 AAA 2,471,124
Bonds, Series 2001B, 5.250%, 2/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 53,420 Total Investments (cost $49,797,328) - 102.4% 50,302,790
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (2.4)% (1,201,268)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $49,101,522
====================================================================================================================
* 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.
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 2.6%
$ 500 Industrial Development Authority of the County of Bedford, 2/08 at 102 Baa3 $ 471,100
Virginia, Industrial Development Refunding Revenue Bonds
(Nekoosa Packaging Corporation), Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax)
1,900 Industrial Development Authority of the County of Bedford, Virginia, 12/09 at 101 Baa3 1,971,953
Industrial Development Refunding Revenue Bonds (Nekoosa
Packaging Corporation), Series 1999A, 6.550%, 12/01/25
(Alternative Minimum Tax)
1,000 Industrial Development Authority of the County of Goochland, 12/08 at 101 Baa3 942,830
Virginia, Industrial Development Refunding Revenue Bonds
(Nekoosa Packaging Corporation Project), Series 1998,
5.650%, 12/01/25 (Alternative Minimum Tax)
2,000 Virginia Small Business Financing Authority, Industrial Development 1/03 at 102 N/R 1,660,000
Revenue Bonds (Albion Enterprises, L.L.C. Project), Series 1998A,
6.400%, 1/01/14 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.0%
2,000 Industrial Development Authority of the County of Charles City, No Opt. Call BBB 1,980,560
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 - 1.0%
1,840 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 1,937,262
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 10.7%
3,500 Industrial Development Authority of the City of Alexandria, 10/10 at 101 AAA 3,797,640
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 N/R 487,260
1,500 7.000%, 6/01/30 6/09 at 102 N/R 1,459,455
Industrial Development Authority of the City 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 A- 3,045,575
2,500 5.875%, 9/01/23 9/03 at 102 A- 2,555,350
500 Park Authority of Prince William County, Virginia, Park Facilities 10/09 at 101 A3 526,135
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
500 Industrial Development Authority of Rockbridge County, Virginia, 7/11 at 100 Baa3 503,340
Horse Center Revenue and Refunding Bonds, Series 2001C,
6.850%, 7/15/21
2,000 Virginia College Building Authority, Educational Facilities Revenue 9/11 at 100 Aa1 1,988,040
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 AA 3,204,420
Bonds (University of Richmond Project), Series 1994,
5.550%, 11/01/19 (Optional put 11/01/04)
2,000 Virginia College Building Authority, Educational Facilities Revenue No Opt. Call AAA 2,077,700
Bonds (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 A+ 1,084,360
Bonds (Hampton University Project), Series 2000, 6.000%, 4/01/20
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.6%
$ 4,850 Industrial Development Authority of Fairfax County, Virginia, No Opt. Call AA $ 4,789,521
Hospital Revenue Refunding Bonds (Inova Health System
Hospitals Project), Series 1993A, 5.000%, 8/15/23
4,650 Industrial Development Authority of Hanover County, Virginia, 8/05 at 102 AAA 4,712,031
Hospital Revenue Bonds (Bon Secours Health System Obligated
Group - Bon Secours Health System Projects), Series 1995,
5.500%, 8/15/25
1,500 Industrial Development Authority of Henrico County, Virginia, No Opt. Call AAA 1,732,980
Healthcare Revenue Bonds (Bon Secours Health), Series 1996,
6.250%, 8/15/20
4,750 Medical College of Virginia Hospitals Authority, General Revenue 7/08 at 102 AAA 4,694,805
Bonds, Series 1998, 5.125%, 7/01/23
2,500 Industrial Development Authority of the City of Norfolk, Virginia, 11/04 at 102 AA 2,675,950
Hospital Revenue and Refunding Bonds (Sentara Hospitals),
Series 1994A, 6.500%, 11/01/13
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.2%
680 Industrial Development Authority of Arlington County, Virginia, 7/05 at 102 A 720,501
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 Aaa 1,583,963
Multifamily Housing Revenue Bonds (Patrick Henry Apartments
Project), Series 2000, 6.050%, 11/01/32 (Alternative Minimum Tax)
(Mandatory put 11/01/20)
4,445 Redevelopment and Housing Authority of Hampton, Virginia, 7/02 at 104 AA 4,706,899
Multifamily 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, 7/09 at 102 AAA 1,572,860
Beth Sholom Assisted Living Revenue Bonds (GNMA
Mortgage-Backed Securities Financing), Series 1999A,
5.900%, 7/20/29
1,000 Redevelopment and Housing Authority of Lynchburg, Virginia, 4/10 at 102 AAA 1,039,520
Vistas Revenue Bonds (GNMA Mortgage-Backed Securities
Financing), Series 2000A, 6.200%, 1/20/40 (Alternative
Minimum Tax)
2,355 Redevelopment and Housing Authority of Suffolk, Virginia, 1/02 at 100 AAA 2,356,460
Mortgage Revenue Refunding Bonds (FHA-Insured Mortgage
Loan - Wilson Pines Apartments Section 8 Assisted Project),
Series 1993, 6.125%, 1/01/23
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.8%
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100 AAA 1,000,000
Refunding Bonds, 2001 Series H, Subseries H-1, 5.350%, 7/01/31
(WI, settling 12/27/01)
1,165 Virginia Housing Development Authority, Commonwealth Mortgage 1/02 at 102 AA+ 1,186,180
Bonds, 1992 Series B, Subseries B-5, 6.300%, 1/01/27
(Alternative Minimum Tax)
Virginia Housing Development Authority, Commonwealth Mortgage
Bonds, 1992 Series B, Subseries B-6:
4,000 6.200%, 7/01/21 (Alternative Minimum Tax) 1/02 at 102 AA+ 4,070,320
2,945 6.250%, 1/01/27 (Alternative Minimum Tax) 1/02 at 102 AA+ 2,995,919
2,000 Virginia Housing Development Authority, Commonwealth Mortgage 1/08 at 102 AA+ 1,989,620
Bonds, 1996 Series G, Subseries G-1, 5.300%, 1/01/22
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1%
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 N/R 1,289,952
1,000 5.750%, 1/01/27 1/03 at 102 N/R 918,120
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.1%
City of Hampton, Virginia, General Obligation Public Improvement
Bonds of 2000:
890 5.750%, 2/01/17 2/10 at 102 AA 972,218
2,000 6.000%, 2/01/20 2/10 at 102 AA 2,218,500
1,400 Northern Mariana Islands Commonwealth, General Obligation Bonds, 6/10 at 100 A 1,459,094
Series 2000A, 6.000%, 6/01/20
4,200 Commonwealth of Puerto Rico, General Obligation Public Improvement 7/06 at 101 1/2 A 4,279,170
Bonds of 1996, 5.400%, 7/01/25
1,205 City of Richmond, Virginia, General Obligation Public Improvement 7/03 at 102 AA 1,228,473
Bonds, Series 1993B, 5.500%, 7/15/23
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101 AA+ $ 1,426,853
Improvement Bonds, Series 2001, 5.000%, 6/01/20
2,000 City of Winchester, Virginia, General Obligation Public 1/04 at 102 AA 2,104,560
Improvement and Refunding Bonds, Series 1994,
5.500%, 1/15/14
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.6%
Cumberland County, Virginia, Certificates of Participation, Series 1997:
1,075 6.200%, 7/15/12 No Opt. Call N/R 1,149,412
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,448,402
500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102 N/R 514,455
Lease Revenue Bonds (Dinwiddie County School Facilities
Project), Series 1997A, 6.000%, 2/01/18
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 102 AA 1,108,210
Parking 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 A- 647,124
2,000 6.125%, 6/15/29 6/10 at 101 A- 2,152,760
3,000 Hampton Roads Regional Jail Authority, Virginia, Regional Jail 7/06 at 102 AAA 3,089,100
Facility Revenue Bonds, Series 1996A, 5.500%, 7/01/24
1,230 Middlesex County Industrial Development Authority, Virginia, Lease 8/09 at 102 AAA 1,345,349
Revenue Bonds (School Facilities Project), Series 1999,
6.000%, 8/01/24
2,000 Virgin Islands Public Finance Authority, Revenue Bonds (Gross 10/10 at 101 BBB- 2,166,020
Receipts Taxes Loan Note), Series 1999A, 6.500%, 10/01/24
2,250 Virginia College Building Authority, Educational Facilities Revenue 2/09 at 101 AA+ 2,451,555
Bonds (21st Century College Program), Series 2000, 6.000%, 2/01/20
Virginia Resources Authority, Infrastructure Revenue Bonds (Pooled
Loan Bond Program), Series 2000B:
1,120 5.500%, 5/01/20 5/10 at 101 AAA 1,172,315
3,060 5.500%, 5/01/30 5/10 at 101 AAA 3,184,175
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.1%
1,900 Metropolitan Washington Airports Authority, District of Columbia, 10/02 at 102 AAA 1,983,885
Airport System Revenue Bonds, Series 1992A, 6.625%, 10/01/19
(Alternative Minimum Tax)
1,400 Metropolitan Washington Airports Authority, District of Columbia, 10/07 at 101 AA- 1,373,442
Airport System Revenue Bonds, Series 1997A, 5.375%, 10/01/23
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100 AAA 3,993,760
Series 2001A, 5.125%, 7/01/31
6,065 Virginia Port Authority, Port Facilities Revenue Bonds, Series 1997, 7/07 at 101 AAA 6,221,295
5.600%, 7/01/27 (Alternative Minimum Tax)
2,000 Virginia Resources Authority, Airport Revolving Fund Revenue 2/11 at 100 Aa2 1,993,440
Bonds, Series 2001A, 5.250%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.8%
3,000 Prince William County Park Authority, Virginia, Revenue Bonds, 10/04 at 102 N/R*** 3,383,100
Series 1994, 6.875%, 10/15/16 (Pre-refunded to 10/15/04)
3,400 Puerto Rico Highway and Transportation Authority, Highway 7/02 at 101 1/2 AAA 3,540,998
Revenue Bonds, Series T, 6.500%, 7/01/22 (Pre-refunded to 7/01/02)
2,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 2,093,260
Bonds, 2000 Series A, 5.500%, 10/01/40
5,800 City of Roanoke Valley Resource Authority, Virginia, Solid Waste 9/02 at 102 A+*** 6,076,892
System Revenue Bonds, Series 1992, 5.750%, 9/01/12
(Pre-refunded to 9/01/02)
1,250 Virginia College Building Authority, Educational Facilities Revenue 1/04 at 102 AAA 1,349,700
Bonds (Washington and Lee University Project), Series 1994,
5.800%, 1/01/24 (Pre-refunded to 1/01/04)
3,955 Virginia Resources Authority, Water and Sewer System Revenue 10/07 at 100 AA*** 4,340,533
Bonds (Sussex County Project), 1995 Series A, 5.600%, 10/01/25
(Pre-refunded to 10/01/07)
7,035 Virginia Commonwealth Transportation Board, Transportation 5/04 at 101 AA+*** 7,669,768
Revenue Bonds (Northern Virginia Transportation District Program),
Series 1995A, 6.250%, 5/15/17 (Pre-refunded to 5/15/04)
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.9%
$ 5,060 Halifax County Industrial Development Authority, Virginia, Exempt 12/02 at 102 A+ $ 5,253,899
Facility Revenue Bonds (Old Dominion Electric Cooperative Project),
Series 1992, 6.350%, 12/01/07 (Alternative Minimum Tax)
2,250 Town of Louisa Industrial Development Authority, Virginia, Pollution 1/04 at 102 A 2,211,615
Control Revenue Bonds (Virginia Electric and Power Company
Project), Series 1994, 5.450%, 1/01/24
3,500 City of Richmond, Virginia, Utility Revenue Bonds, Series 1998A 1/08 at 101 AAA 3,515,960
Refunding, 5.125%, 1/15/28
6,150 Southeastern Public Service Authority, Virginia, Senior Revenue 7/03 at 102 A- 6,180,074
Bonds (Regional Solid Waste System), Series 1993,
6.000%, 7/01/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.0%
2,000 Fairfax County, Virginia, Sewer Revenue Bonds, Series 1996, 7/06 at 102 AAA 2,106,160
5.875%, 7/15/28
2,000 Fairfax County Water Authority, Virginia, Water Revenue Bonds, 4/10 at 101 AAA 2,114,980
Series 2000, 5.625%, 4/01/25
1,650 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102 Aa2 1,637,724
and 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 AAA 6,555,384
5.875%, 11/01/20
City of Norfolk, Virginia, Water Revenue Refunding Bonds,
Series 2001:
1,310 5.000%, 11/01/21 11/11 at 100 AAA 1,309,122
1,380 5.000%, 11/01/22 11/11 at 100 AAA 1,379,048
1,955 Rivanna Water and Sewer Authority, Virginia, Regional Water 10/09 at 101 Aa3 2,043,307
and Sewer System Revenue Bonds, Series 1999, 5.625%, 10/01/29
1,000 Upper Occoquan Sewage Authority, Virginia, Regional Sewerage 1/04 at 102 AAA 1,000,140
System Revenue Refunding Bonds, Series 1993, 5.000%, 7/01/21
2,250 City of Virginia Beach, Virginia, Storm Water Utility Revenue 9/10 at 101 Aa3 2,480,378
Bonds, Series 2000, 6.000%, 9/01/24
500 Virginia Resources Authority, Clean Water State Revolving Fund 10/10 at 100 AAA 526,624
Revenue Bonds, Series 1999, 5.625%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 183,695 Total Investments (cost $181,398,747) - 98.5% 190,180,814
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 2,860,666
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $193,041,480
====================================================================================================================
* 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. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
Nuveen Virginia Dividend Advantage Municipal Fund (NGB)
Portfolio of
INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 7.5%
$ 730 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 $ 768,588
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
Guam Economic Development Authority, Asset-Backed Bonds,
Series 2001A:
250 5.000%, 5/15/22 5/11 at 100 A2 250,275
850 5.400%, 5/15/31 5/11 at 100 A2 868,666
1,400 Guam Economic Development Authority, Asset-Backed Bonds, 5/11 at 100 A2 1,424,234
Series 2001B, 5.500%, 5/15/41
Tobacco Settlement Revenue Management Authority, South Carolina,
Tobacco Settlement Asset-Backed Bonds, Series 2001B:
895 6.000%, 5/15/22 5/11 at 101 A1 921,232
800 6.375%, 5/15/28 5/11 at 101 A1 843,048
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.6%
500 City of Danville Industrial Development Authority, Virginia, 3/11 at 102 N/R 486,520
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 A3 894,430
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 BBB 157,522
320 5.375%, 2/01/29 2/09 at 101 BBB 308,042
500 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call Baa3 499,380
Horse Center Revenue and Refunding Bonds, Series 2001B,
6.125%, 7/15/11
1,000 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100 Baa3 1,006,680
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 Aa1 1,347,923
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 AA 495,835
and Refunding Bonds (Marymount University Project), Series 1998,
5.100%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.4%
Albemarle County Industrial Development Authority, Virginia,
Hospital Refunding Revenue Bonds (Martha Jefferson Hospital),
Series 1993:
1,000 5.500%, 10/01/15 10/03 at 102 A2 1,017,710
1,000 5.500%, 10/01/20 10/03 at 102 A2 1,006,270
2,000 City of Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102 AAA 2,041,760
Hospital Facilities Revenue Refunding Bonds (MediCorp Health
System Obligated Group), Series 1996, 5.250%, 6/15/16
1,000 Henry County Industrial Development Authority, Virginia, Hospital 1/07 at 101 A+ 1,043,230
Revenue Bonds (Memorial Hospital of Martinsville and Henry
County), Series 1997, 6.000%, 1/01/27
1,000 City of Lynchburg Industrial Development Authority, Virginia, 1/08 at 101 A+ 987,970
Healthcare Facilities Revenue and Refunding Bonds (Centra
Health), Series 1998, 5.200%, 1/01/23
1,000 City of Norfolk Industrial Development Authority, Virginia, 8/07 at 102 AAA 1,000,860
Healthcare Revenue Bonds (Bon Secours Health System),
Series 1997, 5.250%, 8/15/26
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2001 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.0%
$ 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102 AAA $ 994,170
Multifamily Housing Mortgage Revenue Bonds (Arlington View
Terrace Apartments), Series 2001, 5.150%, 11/01/31 (Alternative
Minimum Tax) (Mandatory put 11/01/19)
1,000 Virginia Housing Development Authority, Rental Housing Bonds, 10/10 at 100 AA+ 1,019,790
2000 Series G, 5.625%, 10/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.1%
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100 AAA 1,000,000
Refunding Bonds, 2001 Series H, Subseries H-1, 5.350%, 7/01/31
(WI, settling 12/27/01)
3,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/10 at 100 AA+ 3,170,550
Bonds, 2000 Series B, Subseries B-2, 5.875%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.9%
2,000 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100 N/R 2,002,980
Residential Care Facility Revenue Bonds (Westminster Canterbury
of the Blue Ridge - First Mortgage), Series 2001, 6.200%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.3%
2,000 Chesterfield County, Virginia, General Obligation Public Improvement 1/11 at 100 AAA 2,003,520
Bonds, Series 2001, 5.000%, 1/15/21
3,310 Town of Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101 AAA 3,343,928
Bonds, Series 2000, 5.125%, 1/15/21
1,540 Loudoun County, Virginia, General Obligation Public Improvement 1/11 at 101 AA+ 1,575,651
Bonds, Series 2001B, 5.250%, 1/01/20
1,000 City of Newport News, Virginia, General Obligation General 5/10 at 102 AA 1,088,520
Improvement Bonds, Series 2000A, 5.625%, 5/01/16
320 Northern Mariana Islands Commonwealth, General Obligation 6/10 at 100 A 333,507
Bonds, Series 2000A, 6.000%, 6/01/20
320 Commonwealth of Puerto Rico, General Obligation Public 7/08 at 101 A 313,939
Improvement Bonds of 1999, 5.000%, 7/01/28
1,300 City of Richmond, Virginia, General Obligation Public Improvement 1/10 at 101 AAA 1,305,655
and Refunding Bonds, Series 1999A, 5.125%, 1/15/24
2,425 City of Virginia Beach, Virginia, General Obligation Public 6/11 at 101 AA+ 2,417,507
Improvement Bonds, Series 2001, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 5.1%
960 Virgin Islands Public Finance Authority, Revenue Bonds (Gross 10/10 at 101 BBB- 1,039,795
Receipts Taxes Loan Note), Series 1999A, 6.375%, 10/01/19
430 Commonwealth of Virginia Transportation Board, Transportation 5/07 at 101 AA+ 435,865
Revenue Refunding Bonds (Northern Virginia Transportation
District Program), Series 1997B, 5.125%, 5/15/19
2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101 AA+ 2,013,060
Series 2001A (1997 Resolution), 5.000%, 8/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.8%
1,750 Richmond Capital Region Airport Commission, Virginia, Airport 7/05 at 102 AAA 1,803,935
Revenue Bonds (International Airport Projects), Series 1995A,
5.625%, 7/01/20
1,000 Chesapeake Bay and Bridge Tunnel Commission, Virginia, District No Opt. Call AAA 1,073,820
Revenue Bonds (General Resolution Refunding), Series 1998,
5.500%, 7/01/25
3,000 Metropolitan Washington Airports Authority, District of Columbia, 10/11 at 101 AAA 3,046,530
Airport System Revenue Bonds, Series 2001A, 5.500%, 10/01/27
(Alternative Minimum Tax)
Metropolitan Washington Airports Authority, District of Columbia,
Airport System Revenue Bonds, Series 2001B:
250 5.000%, 10/01/21 10/11 at 101 AAA 244,295
650 5.000%, 10/01/31 10/11 at 101 AAA 628,641
1,250 Minneapolis-St. Paul Metropolitan Airports Commission, Minnesota, 4/11 at 101 N/R 975,750
Special Facilities Revenue Bonds (Northwest Airlines, Inc. Project),
Series 2001A, 7.000%, 4/01/25 (Alternative Minimum Tax)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 3,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100 AAA $ 2,995,320
Series 2001A, 5.125%, 7/01/31
1,225 Virginia Resources Authority, Airport Revolving Fund Revenue Bonds, 2/11 at 100 Aa2 1,220,982
Series 2001A, 5.250%, 8/01/23
1,500 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100 Aa2 1,441,335
Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.6%
Puerto Rico Infrastructure Financing Authority, Special Obligation
Bonds, 2000 Series A:
1,500 5.500%, 10/01/32 10/10 at 101 AAA 1,574,610
1,500 5.500%, 10/01/40 10/10 at 101 AAA 1,569,945
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.0%
1,000 City of Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102 AAA 999,320
Series 2001, 5.000%, 7/15/21
1,725 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/05 at 100 A- 1,734,712
Bonds, Series Z, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.3%
2,000 Fairfax County Water Authority, Virginia, Water Refunding Revenue No Opt. Call AAA 2,020,920
Bonds, Series 1997, 5.000%, 4/01/21
3,375 Henrico County, Virginia, Water and Sewer System Revenue and 5/09 at 102 Aa2 3,374,426
Refunding Revenue Bonds, Series 1999, 5.000%, 5/01/22
520 Prince William County Service Authority, Virginia, Water and Sewer 7/09 at 101 AAA 546,015
System Revenue Bonds, Series 1999, 5.500%, 7/01/19
1,680 Virginia Resources Authority, Clean Water State Revolving Fund 11/10 at 100 AAA 1,742,596
Revenue Bonds, Series 2000, 5.400%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 67,610 Total Investments (cost $68,143,884) - 100.6% 68,421,764
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.6)% (403,613)
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $68,018,151
====================================================================================================================
* 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.
Statement of
NET ASSETS November 30, 2001 (Unaudited)
MARYLAND MARYLAND MARYLAND NORTH CAROLINA NORTH CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities,
at market value $226,117,710 $92,355,107 $ 85,512,937 $138,908,143 $50,302,790
Temporary investments in
short-term municipal securities,
at amortized cost,
which approximates
market value -- 500,000 21,700,000 -- --
Cash 870,734 -- 4,032,562 -- 621,468
Receivables:
Interest 4,575,402 1,599,487 1,096,028 2,712,875 851,230
Investments sold 80,952 4,452,936 -- -- --
Other assets 29,496 5,891 -- 14,113 6,166
------------------------------------------------------------------------------------------------------------------------------------
Total assets 231,674,294 98,913,421 112,341,527 141,635,131 51,781,654
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 859,634 -- 213,197 --
Payable for investments purchased 4,076,240 6,464,004 21,070,429 4,807,667 2,403,833
Accrued expenses:
Management fees 120,903 26,448 22,522 73,118 14,277
Organization and offering costs -- -- 129,448 -- --
Other 22,595 120,620 186,443 12,955 107,549
Preferred share dividends payable 5,703 6,087 7,451 2,179 2,725
Common share dividends payable 719,929 290,755 270,660 415,092 151,748
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,945,370 7,767,548 21,686,953 5,524,208 2,680,132
------------------------------------------------------------------------------------------------------------------------------------
Net assets $226,728,924 $91,145,873 $ 90,654,574 $136,110,923 $49,101,522
====================================================================================================================================
Preferred shares, at liquidation value $ 79,100,000 $32,000,000 $ 32,000,000 $ 46,800,000 $17,000,000
====================================================================================================================================
Preferred shares outstanding 3,164 1,280 1,280 1,872 680
====================================================================================================================================
Common shares outstanding 10,509,921 4,153,652 4,164,000 6,289,282 2,231,586
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares
at liquidation value, divided by Common
shares outstanding) $ 14.05 $ 14.24 $ 14.09 $ 14.20 $ 14.39
====================================================================================================================================
See accompanying notes to financial statements.
VIRGINIA VIRGINIA
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NPV) (NGB)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities,
at market value $190,180,814 $68,421,764
Temporary investments in
short-term municipal securities,
at amortized cost, which
approximates market value -- --
Cash 1,289,012 --
Receivables:
Interest 3,252,290 1,126,900
Investments sold 50,000 --
Other assets 25,753 5,374
------------------------------------------------------------------------------------------------------------------------------------
Total assets 194,797,869 69,554,038
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 173,007
Payable for investments purchased 1,000,000 1,000,000
Accrued expenses:
Management fees 103,131 19,748
Organization and offering costs -- --
Other 25,265 121,938
Preferred share dividends payable 3,334 1,775
Common share dividends payable 624,659 219,419
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,756,389 1,535,887
------------------------------------------------------------------------------------------------------------------------------------
Net assets $193,041,480 $68,018,151
====================================================================================================================================
Preferred shares, at liquidation value $ 63,800,000 $24,000,000
====================================================================================================================================
Preferred shares outstanding 2,552 960
====================================================================================================================================
Common shares outstanding 8,736,293 3,112,343
====================================================================================================================================
Net asset value per Common share outstanding
(net assets less Preferred shares
at liquidation value, divided by Common
shares outstanding) $ 14.79 $ 14.14
====================================================================================================================================
See accompanying notes to financial statements.
Statement of
OPERATIONS Six Months Ended November 30, 2001 (Unaudited)
MARYLAND MARYLAND MARYLAND NORTH CAROLINA NORTH CAROLINA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE
(NMY) (NFM) (NZR)* (NNC) (NRB)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $6,377,940 $2,416,667 $ 416,122 $3,826,012 $1,337,480
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 733,926 298,181 75,494 444,027 160,400
Preferred shares - auction fees 99,146 39,843 3,288 58,661 21,166
Preferred shares - dividend disbursing agent fees 10,027 5,014 411 5,014 5,014
Shareholders' servicing agent fees and expenses 13,021 3,686 682 6,286 3,285
Custodian's fees and expenses 27,487 43,634 6,823 26,007 31,822
Trustees' fees and expenses 1,430 501 181 711 501
Professional fees 7,982 10,160 3,709 7,443 10,160
Shareholders' reports - printing and mailing expenses 21,612 26,198 5,487 11,409 14,851
Stock exchange listing fees 14,177 -- -- 9,904 --
Investor relations expense 19,894 4,255 -- 11,240 3,695
Other expenses 7,984 2,933 388 6,211 7,628
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 956,686 434,405 96,463 586,913 258,522
Custodian fee credit (2,109) (31,021) (946) (9,512) (21,229)
Expense reimbursement -- (137,622) (33,887) -- (74,031)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 954,577 265,762 61,630 577,401 163,262
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,423,363 2,150,905 354,492 3,248,611 1,174,218
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 377,069 (129,743) -- 412,409 96,293
Change in net unrealized appreciation
(depreciation) of investments 1,503,220 1,464,672 (441,933) 918,770 906,510
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 1,880,289 1,334,929 (441,933) 1,331,179 1,002,803
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations $7,303,652 $3,485,834 $ (87,441) $4,579,790 $2,177,021
===================================================================================================================================
* For the period September 25, 2001 (commencement of operations) through
November 30, 2001.
See accompanying notes to financial statements.
VIRGINIA VIRGINIA
PREMIUM DIVIDEND
INCOME ADVANTAGE
(NPV) (NGB)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,408,419 $1,780,738
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 626,015 222,827
Preferred shares - auction fees 79,969 29,881
Preferred shares - dividend disbursing agent fees 10,027 5,014
Shareholders' servicing agent fees and expenses 13,414 3,686
Custodian's fees and expenses 24,162 36,885
Trustees' fees and expenses 907 501
Professional fees 7,706 10,160
Shareholders' reports - printing and mailing expenses 16,711 28,694
Stock exchange listing fees 9,662 --
Investor relations expense 16,662 3,960
Other expenses 7,338 3,183
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 812,573 344,791
Custodian fee credit (3,379) (25,367)
Expense reimbursement -- (102,843)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 809,194 216,581
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,599,225 1,564,157
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 573,389 (131,254)
Change in net unrealized appreciation
(depreciation) of investments 826,088 976,744
-----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments 1,399,477 845,490
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $5,998,702 $2,409,647
===================================================================================================================================
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS (Unaudited)
MARYLAND
DIVIDEND
MARYLAND DIVIDEND ADVANTAGE 2
MARYLAND PREMIUM INCOME (NMY) ADVANTAGE (NFM) (NZR)
-------------------------------- -------------------------------- ----------------
FOR THE FOR THE
PERIOD 1/25/01 PERIOD 9/25/01
(COMMENCEMENT (COMMENCEMENT
SIX MONTHS YEAR ENDED SIX MONTHS OF OPERATIONS) OF OPERATIONS)
ENDED 11/30/01 5/31/01 ENDED 11/30/01 THROUGH 5/31/01 THROUGH 11/30/01
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,423,363 $ 10,812,322 $ 2,150,905 $ 919,478 $ 354,492
Net realized gain (loss) from
investment transactions 377,069 (245,348) (129,743) (65,112) --
Change in net unrealized appreciation
(depreciation) of investments 1,503,220 10,719,939 1,464,672 (918,987) (441,933)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 7,303,652 21,286,913 3,485,834 (64,621) (87,441)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net
investment income:
Common shareholders (4,293,394) (8,247,709) (1,744,375) (872,135) (270,660)
Preferred shareholders (809,585) (2,591,214) (344,722) (224,117) (21,915)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (5,102,979) (10,838,923) (2,089,097) (1,096,252) (292,575)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares -- -- -- 59,267,070 59,424,315
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 227,590 453,426 9,253 911 --
Preferred shares:
Net proceeds from sale of shares -- -- -- 31,532,500 31,510,000
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 227,590 453,426 9,253 90,800,481 90,934,315
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 2,428,263 10,901,416 1,405,990 89,639,608 90,554,299
Net assets at the beginning of period 224,300,661 213,399,245 89,739,883 100,275 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $226,728,924 $224,300,661 $91,145,873 $89,739,883 $90,654,574
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 1,066,877 $ 401,975 $ (114,881) $ (176,774) $ 61,917
===================================================================================================================================
See accompanying notes to financial statements.
NORTH CAROLINA NORTH CAROLINA
PREMIUM INCOME (NNC) DIVIDEND ADVANTAGE (NRB)
------------------------------- -------------------------------
FOR THE
PERIOD 1/31/01
(COMMENCEMENT
SIX MONTHS YEAR ENDED SIX MONTHS OF OPERATIONS)
ENDED 11/30/01 5/31/01 ENDED 11/30/01 THROUGH 5/31/01
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,248,611 $ 6,447,182 $ 1,174,218 $ 556,639
Net realized gain (loss) from
investment transactions 412,409 512,400 96,293 (153,980)
Change in net unrealized appreciation
(depreciation) of investments 918,770 7,770,352 906,510 (401,048)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 4,579,790 14,729,934 2,177,021 1,611
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net
investment income:
Common shareholders (2,461,429) (4,709,937) (910,425) (455,206)
Preferred shareholders (499,907) (1,708,813) (182,925) (115,729)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (2,961,336) (6,418,750) (1,093,350) (570,935)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares -- -- -- 31,797,798
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 78,521 135,663 2,809 43
Preferred shares:
Net proceeds from sale of shares -- -- -- 16,686,250
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 78,521 135,663 2,809 48,484,091
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 1,696,975 8,446,847 1,086,480 47,914,767
Net assets at the beginning of period 134,413,948 125,967,101 48,015,042 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $136,110,923 $134,413,948 $49,101,522 $48,015,042
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 413,008 $ 71,911 $ 66,572 $ (14,296)
===================================================================================================================================
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
VIRGINIA PREMIUM INCOME (NPV) VIRGINIA DIVIDEND ADVANTAGE (NGB)
------------------------------- ---------------------------------
FOR THE
PERIOD 1/26/01
(COMMENCEMENT
SIX MONTHS YEAR ENDED SIX MONTHS OF OPERATIONS)
ENDED 11/30/01 5/31/01 ENDED 11/30/01 THROUGH 5/31/01
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,599,225 $ 9,351,167 $ 1,564,157 $ 757,333
Net realized gain (loss) from
investment transactions 573,389 222,253 (131,254) (186,152)
Change in net unrealized appreciation
(depreciation) of investments 826,088 10,269,356 976,744 (698,864)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from operations 5,998,702 19,842,776 2,409,647 (127,683)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From and in excess of net
investment income:
Common shareholders (3,699,368) (7,028,943) (1,316,420) (658,189)
Preferred shareholders (546,302) (2,161,028) (235,115) (160,202)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (4,245,670) (9,189,971) (1,551,535) (818,391)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares -- -- -- 44,385,975
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 343,437 732,154 5,213 150
Preferred shares:
Net proceeds from sale of shares -- -- -- 23,614,500
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 343,437 732,154 5,213 68,000,625
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets 2,096,469 11,384,959 863,325 67,054,551
Net assets at the beginning of period 190,945,011 179,560,052 67,154,826 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $193,041,480 $190,945,011 $68,018,151 $67,154,826
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of period $ 897,090 $ 451,017 $ (48,436) $ (61,058)
===================================================================================================================================
See accompanying notes to financial statements.
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
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 North Carolina Premium Income
Municipal Fund (NNC), Nuveen North Carolina Dividend Advantage Municipal Fund
(NRB), Nuveen Virginia Premium Income Municipal Fund (NPV) and Nuveen Virginia
Dividend Advantage Municipal Fund (NGB). Maryland Premium Income (NMY), North
Carolina Premium Income (NNC) and Virginia Premium Income (NPV) are traded on
the New York Stock Exchange while Maryland Dividend Advantage (NFM), Maryland
Dividend Advantage 2 (NZR), North Carolina Dividend Advantage (NRB) and Virginia
Dividend Advantage (NGB) are traded on the American Stock Exchange. Prior to the
commencement of operations of Maryland Dividend Advantage (NFM), Maryland
Dividend Advantage 2 (NZR), North Carolina Dividend Advantage (NRB) and Virginia
Dividend Advantage (NGB), 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 ($15,000,
$11,500, $15,000 and $15,000, respectively) 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 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, 2001, Maryland Premium Income (NMY), Maryland Dividend Advantage
(NFM), Maryland Dividend Advantage 2 (NZR), North Carolina Premium Income (NNC),
North Carolina Dividend Advantage (NRB), Virginia Premium Income (NPV) and
Virginia Dividend Advantage (NGB) had outstanding delayed delivery and/or
when-issued purchase commitments of $4,076,240, $6,464,004, $19,002,690,
$4,807,667, $2,403,833, $1,000,000 and $1,000,000, respectively.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt securities
for financial reporting purposes.
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, to retain such tax-exempt status when distributed
to shareholders of the Funds.
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts on the first
business day after month-end. 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 shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount 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 by the auction agent. The
number of shares outstanding, by Series and in total, for each of the Funds is
as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- 1,280 -- -- -- -- --
Series T -- -- -- -- 680 832 --
Series W 1,404 -- -- -- -- -- 960
Series TH 1,760 -- -- 1,872 -- 1,720 --
Series F -- -- 1,280 -- -- -- --
---------------------------------------------------------------------------------------------------------
Total 3,164 1,280 1,280 1,872 680 2,552 960
=========================================================================================================
Effective November 16, 2001, Maryland Dividend Advantage 2 (NZR) issued 1,280
Series F $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, 2001.
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 (NFM),
Maryland Dividend Advantage 2 (NZR), North Carolina Dividend Advantage (NRB) and
Virginia Dividend Advantage (NGB). Maryland Dividend Advantage's (NFM), Maryland
Dividend Advantage 2's (NZR), North Carolina Dividend Advantage's (NRB) and
Virginia Dividend Advantage's (NGB) share of offering costs ($124,380, $124,710,
$66,732 and $93,150, respectively) were recorded as a reduction of the proceeds
from the sale of common shares.
Costs incurred by Maryland Dividend Advantage (NFM), Maryland Dividend Advantage
2 (NZR), North Carolina Dividend Advantage (NRB) and Virginia Dividend Advantage
(NGB) in connection with their offering of Preferred shares ($467,500, $490,000,
$313,750 and $385,500, respectively) were recorded as a reduction of the
proceeds from the sale of the Preferred shares.
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 from operations during the reporting period. Actual
results may differ from those estimates.
Change in Accounting Policy
As required, effective June 1, 2001, the Funds have adopted the provisions of
the new AICPA Audit and Accounting Guide for Investment Companies and began
accreting taxable market discount on debt securities. Prior to June 1, 2001, the
Funds did not accrete taxable market discounts on debt securities until they
were sold. The cumulative effect of this accounting change had no impact on the
total net assets or the net asset values of the Funds, but resulted in an
increase in the cost of securities and a corresponding decrease in unrealized
appreciation based on securities held by the Funds on June 1, 2001 as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
$344,518 $85 $-- $53,822 $-- $92,518 $--
=========================================================================================================
The effect of this change for the period ended November 30, 2001, was to
increase net investment income with a corresponding decrease in net unrealized
appreciation or an increase in net unrealized depreciation as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
$37,632 $981 $548 $10,523 $-- $24,127 $--
=========================================================================================================
The Statement of Changes in Net Assets and Financial Highlights for the prior
periods have not been restated to reflect this change in presentation.
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 1/25/01 FOR THE PERIOD 9/25/01
SIX MONTHS YEAR ENDED SIX MONTHS (COMMENCEMENT OF (COMMENCEMENT OF
ENDED 11/30/01 5/31/01 ENDED 11/30/01 OPERATIONS) THROUGH 5/31/01 OPERATIONS) THROUGH 11/30/01
------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 4,146,000 4,157,000
Shares issued to
shareholders
due to reinvestment
of distributions 14,691 31,564 594 58 --
------------------------------------------------------------------------------------------------------------------------
14,691 31,564 594 4,146,058 4,157,000
========================================================================================================================
Preferred shares sold -- -- -- 1,280 1,280
========================================================================================================================
NORTH CAROLINA NORTH CAROLINA DIVIDEND
PREMIUM INCOME (NNC) ADVANTAGE (NRB)
---------------------------- ----------------------------------------------
FOR THE PERIOD 1/31/01
SIX MONTHS YEAR ENDED SIX MONTHS (COMMENCEMENT OF
ENDED 11/30/01 5/31/01 ENDED 11/30/01 OPERATIONS) THROUGH 5/31/01
----------------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 2,224,400
Shares issued to shareholders
due to reinvestment of
distributions 5,140 9,643 183 3
----------------------------------------------------------------------------------------------------------------------
5,140 9,643 183 2,224,403
======================================================================================================================
Preferred shares sold -- -- -- 680
======================================================================================================================
VIRGINIA VIRGINIA DIVIDEND
PREMIUM INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ----------------------------------------------
FOR THE PERIOD 1/26/01
SIX MONTHS YEAR ENDED SIX MONTHS (COMMENCEMENT OF
ENDED 11/30/01 5/31/01 ENDED 11/30/01 OPERATIONS) THROUGH 5/31/01
----------------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 3,105,000
Shares issued to shareholders
due to reinvestment of
distributions 21,012 49,121 333 10
----------------------------------------------------------------------------------------------------------------------
21,012 49,121 333 3,105,010
======================================================================================================================
Preferred shares sold -- -- -- 960
======================================================================================================================
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 28, 2001, to shareholders of
record on December 15, 2001, as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0695 $.0700 $.0650 $.0675 $.0680 $.0725 $.0705
=========================================================================================================
At the same time, Maryland Premium Income (NMY) and Virginia Premium Income
(NPV) declared ordinary taxable income distributions of $.0024 and $.0028 per
share, respectively.
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities for the six months ended November
30, 2001, were as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR)* (NNC) (NRB) (NPV) (NGB)
------------------------------------------------------------------------------------------------------------
Purchases:
Long-term
municipal
securities $13,093,933 $27,142,143 $85,962,624 $9,581,650 $ 7,555,031 $13,069,493 $11,948,280
Short-term
municipal
securities -- 500,000 27,200,000 -- -- -- --
Sales and maturities:
Long-term
municipal
securities 9,833,172 28,419,253 -- 6,502,438 10,725,536 13,274,091 14,525,353
Short-term
municipal
securities -- -- 5,500,000 -- -- -- --
============================================================================================================
* For the period September 25, 2001 (commencement of operations) through
November 30, 2001.
At November 30, 2001, the cost of investments owned for federal income tax
purposes were as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
$219,376,316 $92,308,441 $107,654,322 $133,072,088 $49,797,328 $181,291,601 $68,143,884
=========================================================================================================
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At May 31, 2001, 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:
NORTH NORTH
MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
Expiration year:
2002 $2,202,413 $ -- $ -- $ -- $ 692,989 $ --
2003 1,019,929 -- 2,344,091 -- 1,577,464 --
2004 2,660,424 -- 1,137,399 -- 1,579,895 --
2005 454,351 -- 131,993 -- 140,749 --
2006 -- -- -- -- -- --
2007 -- -- -- -- -- --
2008 332,069 -- 108,131 -- 250,767 --
2009 317,048 65,111 731,398 153,980 -- 186,152
---------------------------------------------------------------------------------------------------------
Total $6,986,234 $65,111 $4,453,012 $153,980 $4,241,864 $186,152
=========================================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at November 30, 2001, were as follows:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $10,740,984 $ 988,062 $ 207,662 $6,059,809 $575,382 $9,560,511 $ 629,122
depreciation (3,999,590) (441,396) (649,047) (223,754) (69,920) (671,298) (351,242)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) $ 6,741,394 $ 546,666 $(441,385) $5,836,055 $505,462 $8,889,213 $ 277,880
=========================================================================================================
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Maryland Premium Income's (NMY), North Carolina Premium Income's (NNC) 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 of each Fund
as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
================================================================================
Under Maryland Dividend Advantage's (NFM), Maryland Dividend Advantage 2's
(NZR), North Carolina Dividend Advantage's (NRB) and Virginia Dividend
Advantage's (NGB) 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 of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
================================================================================
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Maryland Dividend Advantage (NFM), North Carolina Dividend Advantage
(NRB) and Virginia Dividend Advantage (NGB) in an amount equal to .30% of the
average daily net assets for the period from each Fund's commencement of
operations through January 31, 2006, .25% of the average daily net assets for
the year ended January 31, 2007, .20% of the average daily net assets for the
year ended January 31, 2008, .15% of the average daily net assets for the year
ended January 31, 2009, .10% of the average daily net assets for the year ended
January 31, 2010, and .05% of the average daily net assets for the year ended
January 31, 2011. The Adviser has not agreed to reimburse Maryland Dividend
Advantage (NFM), North Carolina Dividend Advantage (NRB) and Virginia Dividend
Advantage (NGB) for any portion of its fees and expenses beyond January 31,
2011.
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Maryland Dividend Advantage 2 (NZR) in an amount equal to .30% of
the average daily net assets for the period September 25, 2001 (commencement of
operations) through September 30, 2006, .25% of the average daily net assets for
the year ended September 30, 2007, .20% of the average daily net assets for the
year ended September 30, 2008, .15% of the average daily net assets for the year
ended September 30, 2009, .10% of the average daily net assets for the year
ended September 30, 2010, and .05% of the average daily net assets for the year
ended September 30, 2011. The Adviser has not agreed to reimburse Maryland
Dividend Advantage 2 (NZR) for any portion of its fees and expenses beyond
September 30, 2011.
The 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.
Notes to
Financial Statements (Unaudited) (continued)
7. COMPOSITION OF NET ASSETS
At November 30, 2001, net assets consisted of:
NORTH NORTH
MARYLAND MARYLAND MARYLAND CAROLINA CAROLINA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NZR) (NNC) (NRB) (NPV) (NGB)
--------------------------------------------------------------------------------------------------------------------------
Preferred shares, $25,000
stated value per share,
at liquidation value $ 79,100,000 $32,000,000 $32,000,000 $ 46,800,000 $17,000,000 $ 63,800,000 $24,000,000
Common shares, $.01
par value per share 105,099 41,537 41,640 62,893 22,316 87,363 31,123
Paid-in surplus 146,706,871 58,868,472 58,992,950 87,088,224 31,564,859 123,143,435 44,074,990
Undistributed (Over-
distribution of) net
investment income 1,066,877 (114,881) 61,917 413,008 66,572 897,090 (48,436)
Accumulated net realized gain
(loss) from investment
transactions (6,730,483) (194,855) -- (4,049,754) (57,687) (3,668,475) (317,406)
Net unrealized appreciation
(depreciation) of
investments 6,480,560 545,600 (441,933) 5,796,552 505,462 8,782,067 277,880
--------------------------------------------------------------------------------------------------------------------------
Net assets $226,728,924 $91,145,873 $90,654,574 $136,110,923 $49,101,522 $193,041,480 $68,018,151
==========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited Unlimited
==========================================================================================================================
Financial
Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------- ------------------------------------------------------------
From and From and
in Excess in Excess
of Net of Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
===============================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) $13.83 $ .52 $ .19 $ .71 $(.41) $(.08) $-- $-- $ (.49)
2001 12.83 1.03 1.01 2.04 (.79) (.25) -- -- (1.04)
2000 14.41 1.02 (1.58) (.56) (.78) (.24) -- -- (1.02)
1999 14.54 1.00 (.14) .86 (.77) (.22) -- -- (.99)
1998 13.76 .99 .80 1.79 (.77) (.24) -- -- (1.01)
1997 13.21 1.00 .55 1.55 (.76) (.24) -- -- (1.00)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 13.90 .52 .32 .84 (.42) (.08) -- -- (.50)
2001(a) 14.33 .22 (.25) (.03) (.21) (.05) -- -- (.26)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) 14.33 .09 (.09) -- (.07) (.01) -- -- (.08)
NORTH CAROLINA
PREMIUM INCOME (NNC)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 13.94 .52 .21 .73 (.39) (.08) -- -- (.47)
2001 12.62 1.03 1.31 2.34 (.75) (.27) -- -- (1.02)
2000 14.28 1.02 (1.61) (.59) (.81) (.26) -- -- (1.07)
1999 14.48 1.02 (.22) .80 (.79) (.21) -- -- (1.00)
1998 13.50 1.02 1.00 2.02 (.79) (.25) -- -- (1.04)
1997 12.77 1.02 .72 1.74 (.77) (.24) -- -- (1.01)
NORTH CAROLINA
DIVIDEND
ADVANTAGE (NRB)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 13.90 .53 .45 .98 (.41) (.08) -- -- (.49)
2001(b) 14.33 .25 (.26) (.01) (.20) (.05) -- -- (.25)
VIRGINIA PREMIUM
INCOME (NPV)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 14.59 .53 .15 .68 (.42) (.06) -- -- (.48)
2001 13.36 1.08 1.21 2.29 (.81) (.25) -- -- (1.06)
2000 14.89 1.07 (1.52) (.45) (.84) (.24) -- -- (1.08)
1999 14.96 1.05 (.08) .97 (.82) (.22) -- -- (1.04)
1998 14.04 1.06 .92 1.98 (.82) (.24) -- -- (1.06)
1997 13.35 1.06 .68 1.74 (.81) (.24) -- -- (1.05)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 13.87 .50 .27 .77 (.42) (.08) -- -- (.50)
2001(c) 14.33 .24 (.28) (.04) (.21) (.05) -- -- (.26)
================================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------
Total Returns Before Credit/Reimbursement
---------------- --------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Offering Expenses Income to Expenses Income to
Costs and Based to Average Average to Average Average
Preferred Ending Based on Ending Net Assets Net Assets Total Total
Share Net Ending on Net Net Applicable Applicable Net Assets Net Assets
Underwriting Asset Market Market Asset Assets to Common to Common Including Including
Discounts Value Value Value** Value** (000) Shares++ Shares++ Preferred++ Preferred++
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
Year Ended 5/31:
2002(e) $-- $14.05 $15.5500 .73% 4.56% $226,729 1.29%* 7.30%* .84%* 4.76%*
2001 -- 13.83 15.8500 26.24 14.18 224,301 1.31 7.58 .84 4.88
2000 -- 12.83 13.2500 (7.22) (5.57) 213,399 1.29 7.69 .82 4.90
1999 -- 14.41 15.1250 5.47 4.44 229,520 1.29 6.78 .85 4.47
1998 -- 14.54 15.0625 16.54 11.47 230,188 1.29 6.93 .84 4.52
1997 -- 13.76 13.6250 13.07 10.08 221,478 1.32 7.28 .85 4.72
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) -- 14.24 15.2400 (2.09) 5.48 91,146 1.46* 6.65* .95* 4.32*
2001(a) (.14) 13.90 15.9900 8.02 (1.53) 89,740 1.17* 4.33* .87* 3.22*
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) (.16) 14.09 15.0600 .83 (1.22) 90,655 .94* 3.10* .83* 2.75*
NORTH CAROLINA
PREMIUM INCOME (NNC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) -- 14.20 15.0900 4.59 4.69 136,111 1.31* 7.21* .86* 4.73*
2001 -- 13.94 14.8000 14.03 16.65 134,414 1.34 7.47 .87 4.83
2000 -- 12.62 13.6875 (7.76) (5.98) 125,967 1.37 7.81 .87 4.97
1999 -- 14.28 15.6875 9.87 4.11 136,177 1.30 6.97 .86 4.61
1998 -- 14.48 15.0000 8.17 13.38 137,270 1.30 7.17 .85 4.70
1997 -- 13.50 14.6250 22.60 12.01 130,929 1.37 7.72 .87 4.92
NORTH CAROLINA
DIVIDEND
ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) -- 14.39 15.0400 1.93 6.48 49,102 1.60* 6.68* 1.05* 4.37*
2001(b) (.17) 13.90 15.1500 2.42 (1.57) 48,015 1.31* 5.02* .97* 3.72*
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) -- 14.79 15.8900 1.91 4.29 193,041 1.25* 7.07* .84* 4.74*
2001 -- 14.59 16.0000 18.45 15.53 190,945 1.23 7.51 .81 4.96
2000 -- 13.36 14.2500 (6.02) (4.64) 179,560 1.29 7.72 .84 5.03
1999 -- 14.89 16.0625 4.77 5.09 192,168 1.26 6.94 .85 4.65
1998 -- 14.96 16.1250 17.30 12.66 191,922 1.27 7.20 .84 4.77
1997 -- 14.04 14.5000 13.81 11.49 183,097 1.33 7.65 .86 4.95
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) -- 14.14 15.4100 4.31 5.01 68,018 1.55* 6.46* 1.01* 4.19*
2001(c) (.16) 13.87 15.1800 2.61 (1.73) 67,155 1.27* 4.76* .94* 3.54*
====================================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------- Municipal Auction Rate Cumulative
After Credit/Reimbursement*** Preferred Stock at End of Period
---------------------------------------------------------- --------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
Year Ended 5/31:
2002(e) 1.29%* 7.31%* .84%* 4.76%* 4% $79,100 $25,000 $71,659
2001 1.31 7.58 .84 4.88 8 79,100 25,000 70,891
2000 1.28 7.70 .82 4.90 13 79,100 25,000 67,446
1999 1.28 6.79 .84 4.48 16 79,100 25,000 72,541
1998 1.29 6.93 .84 4.52 6 79,100 25,000 72,752
1997 1.32 7.28 .85 4.72 6 79,100 25,000 69,999
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) .89* 7.21* .58* 4.69* 30 32,000 25,000 71,208
2001(a) .75* 4.75* .56* 3.53* 10 32,000 25,000 70,109
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(d) .60* 3.44* .53* 3.05* -- 32,000 25,000 70,824
NORTH CAROLINA
PREMIUM INCOME (NNC)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 1.28* 7.23* .84* 4.75* 5 46,800 25,000 72,709
2001 1.30 7.51 .84 4.86 19 46,800 25,000 71,802
2000 1.35 7.83 .86 4.98 25 46,800 25,000 67,290
1999 1.30 6.97 .86 4.61 8 46,800 25,000 72,744
1998 1.30 7.17 .85 4.70 9 46,800 25,000 73,328
1997 1.37 7.72 .87 4.92 19 46,800 25,000 69,941
NORTH CAROLINA
DIVIDEND
ADVANTAGE (NRB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 1.01* 7.27* .66* 4.76* 15 17,000 25,000 72,208
2001(b) .85* 5.48* .63* 4.06* 29 17,000 25,000 70,610
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) 1.25* 7.08* .83* 4.74* 7 63,800 25,000 75,643
2001 1.21 7.53 .80 4.97 7 63,800 25,000 74,822
2000 1.28 7.73 .83 5.04 20 63,800 25,000 70,361
1999 1.26 6.95 .84 4.66 8 63,800 25,000 75,301
1998 1.27 7.20 .84 4.77 19 63,800 25,000 75,205
1997 1.33 7.65 .86 4.95 16 63,800 25,000 71,746
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2002(e) .97* 7.03* .63* 4.56* 17 24,000 25,000 70,852
2001(c) .80* 5.23* .59* 3.88* 20 24,000 25,000 69,953
====================================================================================================================================
* 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 Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in 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 January 31, 2001 (commencement of operations) through May
31, 2001.
(c) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(d) For the period September 25, 2001 (commencement of operations) through
November 30, 2001.
(e) For six months ended November 30, 2001.
See accompanying notes to financial statements.
Build Your Wealth
Automatically
Sidebar text: Nuveen makes reinvesting easy. A phone call is all it takes to set
up your reinvestment account.
NUVEEN EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen 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.
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, TRANSFER AGENT
AND SHAREHOLDER SERVICES
JPMorgan Chase Bank
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period ended November 30, 2001. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
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.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
LOGO: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com FSA-2-11-01