UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-7486
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Nuveen Maryland Premium Income Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: May 31
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Date of reporting period: May 31, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
ANNUAL REPORT May 31, 2004
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NMY
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND
NFM
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NZR
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NWI
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
NPV
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NGB
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NNB
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN
BE IMPORTANT BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO.
Dear
SHAREHOLDER
I am very pleased to report that for the fiscal year ended May 31, 2004, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
While tax-free income is always welcome, we know that many shareholders are
beginning to wonder whether interest rates will rise significantly, and whether
that possibility should cause them to adjust that portion of their investment
portfolios allocated to tax-free municipal bonds. We believe this is a question
you should consider carefully with the help of a trusted financial advisor. In
many cases, it may be more appropriate to focus on long-term goals and
objectives rather than shorter-term market movements, and this is where a
professional advisor may be able to help keep you focused on the larger
objectives of your investment program.
As you read through this report, please review the inside front cover and
consider receiving future Fund reports and other Fund information by e-mail and
the Internet. Not only will you be able to receive the information faster, but
this also may help lower your Fund's expenses. Sign up is quick and easy.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
July 15, 2004
1
Nuveen Maryland and Virginia Municipal Closed-End Exchange-Traded Funds
(NMY, NFM, NZR, NWI, NPV, NGB, NNB)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan reviews the market environment, key investment
strategies and the annual performance of these Funds. Paul, who has 13 years of
investment experience, including 7 years with Nuveen, assumed portfolio
management responsibility for NMY and NPV in 1999, for NFM, NZR, NGB and NNB in
2001, and for NWI in 2002.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
REPORTING PERIOD ENDED MAY 31, 2004?
During this reporting period, the U.S. economy demonstrated growing evidence of
improvement in such key areas as employment, capital spending and industrial
production. Indeed, during the third quarter of 2003, the U.S. gross domestic
product grew at an annualized rate of 8.2%, more than double the second
quarter's performance and the fastest annualized quarterly growth rate in nearly
20 years. Although this rapid pace was not considered sustainable, the economy
continued to turn in steady performance for the rest of the 12-month reporting
period, expanding by an annualized 4.1% in the fourth quarter of 2003 and an
annualized 3.9% in the first three months of 2004.
Inflation also showed some signs of acceleration, driven mainly by higher energy
and transportation costs, with the Consumer Price Index rising at a 5.1% rate
(annualized) during the first five months of 2004. The combination of economic
momentum and growing inflation concerns served as a catalyst for heightened
volatility in the fixed-income markets. Although short-term interest rates
remained at or near historical lows throughout this 12-month period, bond market
long-term yields, including the municipal market, were increasingly driven by
expectations that the Federal Reserve would move to increase interest rates and
by speculation over the timing and extent of those increases. As one example,
the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed municipal
bond index, rose from 4.83% at the beginning of the period to 5.50% by the
middle of August 2003. The index yield then fell steadily over the next seven
months to reach 4.73% by the middle of March 2004, before rising to 5.36% by the
end of the reporting period.
In general, municipal supply nationwide remained strong over the 12-month
reporting period, with $384.8 billion in new bonds coming to market. This
represented an increase of 2% over the preceding 12-month period. However, the
pace of issuance slowed toward the latter part of the reporting period, with
$147.8 billion in new municipal supply during the first five months of 2004,
down 6% from January-May 2003. In May 2004 alone, volume decreased 9% from one
year earlier.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN MARYLAND AND VIRGINIA?
Maryland's economy continued to grow at a slow but steady pace, as strong
activity at the Port of Baltimore, increased federal defense spending, and ties
to the vibrant Washington D.C. economy helped to offset the negative impact of a
declining manufacturing sector. Among promising developments was renewed growth
in the state's aerospace, medical research, security and distribution
industries, while consumer spending in this high-wealth state helped to lift
retail employment. As of May 2004, unemployment in the state was 4.0%, down from
4.5% in May 2003 and well below the national average of 5.6%. Despite the
state's historically well-managed finances and adequate reserves, the
2
$24 billion fiscal 2005-2006 biennial budget presented the challenge of closing
an $800 million gap. This was accomplished without adding any new taxes, through
new and one-time revenue sources and a transfer from the fully funded
stabilization fund. Local economies in Maryland continued to benefit from strong
property tax growth and some flexibility in raising revenue. Over the 12-month
period ended May 2004, municipal issuance in Maryland totaled $6.5 billion, up
9% over the previous 12 months, although issuance slowed during the first five
months of 2004. As of May 31, 2004, Maryland maintained its general obligation
debt rating of Aaa/AAA, with stable outlook, from Moody's and Standard & Poor's,
respectively.
With an improved economy and healthy employment growth, Virginia's recent
expansion continued to outpace national trends. The construction and services
sectors led in job growth, helping to offset continued losses in textile and
apparel manufacturing, tobacco and telecommunications. A strong tourism industry
also added strength to the Virginia economy. As of May 2004, Virginia's
unemployment was 3.4%, compared with 4.1% in May 2003. While federal spending
for defense continued to be a key economic driver, growth remained concentrated
in northern Virginia and around Norfolk, while southern and western Virginia's
economy remained sluggish. Although Virginia debt continued to be rated Aaa/AAA
by Moody's and Standard & Poor's, in September 2003 Moody's put the commonwealth
on its negative Watch List. In May 2004, following approval of a budget and tax
reform package, Moody's restored Virginia's outlook to stable. During the
12-month period ended May 2004, Virginia issued $6.5 billion in new bonds, a
decrease of more than 19% from the previous 12-month period. This pattern
strengthened during January-May 2004, as supply dropped 22% from the same period
in 2003.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING
THE 12 MONTHS ENDED MAY 31, 2004?
As the market continued to anticipate rising interest rates, our major focus
during this reporting period remained on trying to mitigate some of the interest
rate risk inherent in each Fund's portfolio. Interest rate risk is the risk that
the value of a Fund's portfolio will decline if market interest rates rise
(since bond prices move in the opposite direction of interest rates). Since
longer-term bonds often carry more interest rate risk than intermediate-term or
short-term bonds, we concentrated on finding attractive securities with
defensive structures in the long-intermediate part of the yield curve (i.e.,
bonds that mature in 15 to 20 years). In many cases, bonds in this part of the
curve offered yields similar to those of longer-term bonds with less inherent
interest rate risk.
As new municipal supply softened toward the end of the period, the combination
of tighter supply and relatively low yields meant that the new issue market did
not offer many bonds that we thought would perform better than those the Funds
already owned. When opportunities did arise, we sought to improve portfolio
diversification by adding general obligation and tax-backed bonds, especially in
Maryland, where increased issuance at the county and local municipality levels
provided a greater selection of bonds with the structures we prefer. We also
made some purchases in the healthcare sector, where improvements in cost
containment and reimbursement practices helped the sector's long-term outlook.
Some of these purchases were financed through the sale of bonds with longer
maturities and with proceeds from calls, particularly in the single family and
multifamily housing sectors.
3
HOW DID THE FUNDS PERFORM?
Individual results for the Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 5/31/04
(Annualized)
1-YEAR 5-YEAR 10-YEAR
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NMY 0.64% 5.97% 7.19%
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NFM -0.69% NA NA
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NZR -1.16% NA NA
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NWI -1.51% NA NA
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NPV -0.42% 6.13% 7.68%
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NGB -0.50% NA NA
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NNB -1.84% NA NA
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Lehman Brothers Municipal
Bond Index1 -0.03% 5.49% 6.33%
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Lipper Other States Municipal
Debt Funds Average2 -0.99% 5.95% 7.16%
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended May 31, 2004, NMY's total annual return on net asset
value (NAV) outperformed the return on the Lehman Brothers Municipal Bond Index,
while the performance of the other six Funds lagged this measure. NMY, NFM, NPV
and NGB also outperformed the Lipper Other States group average, while NZR, NWI
and NNB did not.
One of the primary factors affecting the 12-month performance of each of these
Funds compared with that of the unleveraged Lehman index was the Funds' use of
leverage. Leveraging can provide opportunities for additional income and total
return for common shareholders, but it is a strategy that adds volatility to the
Funds' NAVs and share prices, especially when interest rates move significantly.
While each of these Funds was able to generate additional income over this
period through its use of leverage, rising interest rates caused larger declines
in each Fund's NAV than would have been the case had the Fund not used leverage.
This had a direct and negative effect on total returns over this period.
Looking at specific holdings, the Funds' performances generally were helped by
their positions in lower-rated bonds, which tended to outperform higher-quality
bonds as the economy improved and investors' tolerance for additional credit
risk increased. NMY, in particular, benefited over this period from its 3%
position in bonds rated B3 issued for Dimensions Health Corporation in Prince
George's County, which recovered dramatically over the year. NFM, NZR and NWI
also held small positions in this issue, as we added to our holdings during the
last six months of the period.
Many of the Funds had housing sector positions, especially multifamily housing,
that also made positive contributions to their total returns over this period.
Among these seven Funds, NMY had the heaviest weighting of multifamily housing
bonds, at 13% of its portfolio. All of the Funds saw good performance from their
holdings in the industrial development resource sector. These bonds, often
lower-rated, ranked first in terms of returns among the Lehman municipal revenue
sectors during this period. Among other holdings making positive contributions
to the Funds' total returns during this reporting period were bonds backed by
revenues from the 1998 master tobacco settlement agreement.
NMY also benefited from the fact that it had the highest level of call exposure
among these Funds, with 21% of its portfolio subject to potential calls during
2004-2005. While we often try to reduce a Fund's call exposure in order to
protect its income stream, callable bonds performed well during this period as
interest rates rose due to their generally shorter durations. NPV had the second
highest level of callable bonds, at 13%. By contrast, call exposures were 6% in
NGB, 5% in NFM, 2% in NZR and NWI and 1% in NNB.
Ironically, each Fund's performance during this period was constrained to a
degree by its relatively large position in AAA-rated securities,
1 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
2 The Lipper Other States Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1 year, (44 funds); 5 years, (19 funds); and 10
years, (17 funds). Fund and Lipper returns assume reinvestment of
dividends.
4
especially general obligation bonds. In general, these bonds did not perform as
well as lower-rated bonds during the 12 month reporting period.
Another negative factor affecting the 12-month performance of these Funds,
especially when comparing their returns with each other, was their duration3. As
previously mentioned, yields rose and bond prices fell during the course of the
reporting period, negatively impacting these Funds' total returns. In general,
the longer a Fund's duration, the more its value will change as interest rates
change. The durations of the Funds that were introduced in 2001 and 2002--NFM,
NZR, NWI, NGB and NNB--were longer during this period than NMY and NPV, which
had their initial public offerings in 1993. Newer Funds generally invest in
longer-term bonds at the time of their inceptions in order to begin generating
attractive levels of income. As a result, these Funds tend to have relatively
long durations for their first few years until their portfolios begin to season
and we have the opportunity to adjust their holdings. In the interim, any rise
in interest rates in the months and years immediately following a Fund's IPO
often produces a greater impact on the newer Fund's performance than on the
performance of an older Fund that has a greater range of bond structures and
maturities within its portfolio.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels during this
reporting period, the leveraged structures of these seven Funds continued to
support their dividend-paying capabilities. The extent of this benefit is tied
in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, the Funds generally pay
relatively lower dividends to their MuniPreferred shareholders, which can leave
more earnings to support common share dividends. During this reporting period,
this strategy enabled us to increase dividends of NFM, NZR, NGB and NNB, while
helping to maintain the dividends of NMY, NWI and NPV throughout the period.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise reflected in
the Fund's NAV. Each Fund will, over time, pay all of its net investment income
as dividends to shareholders. As of May 31, 2004, all of the Funds in this
report had positive UNII balances.
NMY, NFM and NGB were trading at premiums to their net asset values as of May
31, 2004. NPV was trading at its NAV, while NZR, NWI and NNB were trading at
discounts. As of the end of the fiscal year, NFM was trading at a greater
premium than its average premium over the course of the 12-month period. The
other six Funds were trading at smaller premiums or greater discounts than their
12-month averages.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AS OF MAY 31, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong credit quality was an important requirement. As of the
end of May 2004, all seven of these Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
81% in NWI, NPV and NNB to 80% in NZR, 75% in NGB, 69% in NMY and 66% in NFM.
3 Duration is a measure of a Fund's net asset value (NAV) volatility in
reaction to interest rate movements. Fund duration, also known as
leverage-adjusted duration, takes into account the leveraging process for a
Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund. References to duration
in this commentary are intended to indicate Fund duration unless otherwise
noted.
5
Nuveen Maryland Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2004
NMY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 46%
AA 23%
A 16%
BBB 9%
NR 2%
BB or Lower 4%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.45
--------------------------------------------------
Common Share Net Asset Value $14.28
--------------------------------------------------
Premium/(Discount) to NAV 1.19%
--------------------------------------------------
Market Yield 6.31%
--------------------------------------------------
Taxable-Equivalent Yield1 9.21%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $151,107
--------------------------------------------------
Average Effective Maturity (Years) 17.63
--------------------------------------------------
Leverage-Adjusted Duration 9.70
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -10.77% 0.64%
--------------------------------------------------
5-Year 4.76% 5.97%
--------------------------------------------------
10-Year 7.26% 7.19%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Tax Obligation/General 17%
--------------------------------------------------
Education and Civic Organizations 14%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Housing/Multifamily 13%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.076
Apr 0.076
May 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $17.15
16.92
17
16.7
16.32
16.75
16.88
16.41
15.4
15.19
15.45
15
15.25
15.4
15.45
15.69
15.6
15.77
15.45
15.48
15.6
15.7
16.08
15.59
15.36
15.7
15.7
16.35
16.84
16.95
16.9
17.12
17.05
16.64
16.77
16.99
17.05
17.05
17
17.1
16.6
15.75
14.78
14.57
14.46
14.56
14.15
14.4
5/31/04 14.45
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
6
Nuveen Maryland Dividend Advantage Municipal Fund
Performance
OVERVIEW As of May 31, 2004
NFM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 42%
AA 24%
A 16%
BBB 12%
NR 5%
BB or Lower 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $15.62
--------------------------------------------------
Common Share Net Asset Value $14.43
--------------------------------------------------
Premium/(Discount) to NAV 8.25%
--------------------------------------------------
Market Yield 6.03%
--------------------------------------------------
Taxable-Equivalent Yield1 8.80%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $60,041
--------------------------------------------------
Average Effective Maturity (Years) 20.63
--------------------------------------------------
Leverage-Adjusted Duration 10.27
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/23/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 2.99% -0.69%
--------------------------------------------------
Since Inception 6.83% 6.19%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Tax Obligation/General 14%
--------------------------------------------------
U.S. Guaranteed 14%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $16.08
16.01
16.3
16.11
16.23
16.35
16.79
16.22
15.55
14.95
14.9
14.54
14.72
14.8
15.09
15.2
15.01
15.43
15.43
15.25
15.76
16.15
16.19
16.15
16.24
16.4
16.67
16.78
16.75
17
16.83
17
16.8
16.54
16.63
16.75
16.83
16.95
17.03
16.92
16.85
15.7
14.7
14.53
14.44
14.23
13.95
14.43
5/31/04 15.62
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
7
Nuveen Maryland Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of May 31, 2004
NZR
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 47%
AA 33%
A 8%
BBB 9%
NR 2%
BB or Lower 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.28
--------------------------------------------------
Common Share Net Asset Value $14.64
--------------------------------------------------
Premium/(Discount) to NAV -2.46%
--------------------------------------------------
Market Yield 6.13%
--------------------------------------------------
Taxable-Equivalent Yield1 8.95%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $61,064
--------------------------------------------------
Average Effective Maturity (Years) 19.03
--------------------------------------------------
Leverage-Adjusted Duration 11.17
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -2.90% -1.16%
--------------------------------------------------
Since Inception 3.62% 6.43%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 27%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Education and Civic Organizations 12%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.072
Oct 0.072
Nov 0.072
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $15.6
15.72
15.7
15.47
15.7
15.9
15.9
15.27
14.56
14.25
14.31
14.25
14.3
14.23
14.22
14.27
14.46
14.67
14.95
14.97
14.87
14.89
14.81
14.87
14.89
15.15
15.1
15.77
15.77
15.83
15.85
15.76
15.55
15.4
15.76
15.7
15.59
15.75
16
16
15.54
14.76
14.39
13.9
13.91
13.54
13.03
13.72
5/31/04 14.28
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0187 per share.
8
Nuveen Maryland Dividend Advantage Municipal Fund 3
Performance
OVERVIEW As of May 31, 2004
NWI
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 41%
AA 40%
A 10%
BBB 8%
NR 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.24
--------------------------------------------------
Common Share Net Asset Value $13.88
--------------------------------------------------
Premium/(Discount) to NAV -4.61%
--------------------------------------------------
Market Yield 5.94%
--------------------------------------------------
Taxable-Equivalent Yield1 8.67%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $74,369
--------------------------------------------------
Average Effective Maturity (Years) 19.65
--------------------------------------------------
Leverage-Adjusted Duration 12.52
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -5.97% -1.51%
--------------------------------------------------
Since Inception -2.15% 3.35%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 24%
--------------------------------------------------
Tax Obligation/General 23%
--------------------------------------------------
Housing/Multifamily 11%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
U.S. Guaranteed 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.0655
Jul 0.0655
Aug 0.0655
Sep 0.0655
Oct 0.0655
Nov 0.0655
Dec 0.0655
Jan 0.0655
Feb 0.0655
Mar 0.0655
Apr 0.0655
May 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $14.9
14.84
15.05
14.81
14.96
15.05
15.12
14.57
13.8
13.7
13.67
13.19
13.42
13.55
13.38
13.29
13.32
13.21
13.08
13.29
13.31
13.46
13.25
13.31
13.51
13.55
13.41
13.68
14.21
14.21
14.2
14.1
14.17
14.27
14.36
14.46
14.67
14.65
14.8
14.99
14.95
13.89
13.23
13.15
13.45
12.94
12.8
12.95
5/31/04 13.24
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
9
Nuveen Virginia Premium Income Municipal Fund
Performance
OVERVIEW As of May 31, 2004
NPV
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 53%
AA 28%
A 8%
BBB 5%
NR 4%
BB or Lower 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.95
--------------------------------------------------
Common Share Net Asset Value $14.95
--------------------------------------------------
Premium/(Discount) to NAV 0.00%
--------------------------------------------------
Market Yield 6.10%
--------------------------------------------------
Taxable-Equivalent Yield1 8.97%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $132,122
--------------------------------------------------
Average Effective Maturity (Years) 18.41
--------------------------------------------------
Leverage-Adjusted Duration 9.49
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -10.70% -0.42%
--------------------------------------------------
5-Year 4.09% 6.13%
--------------------------------------------------
10-Year 7.09% 7.68%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 19%
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Transportation 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.076
Apr 0.076
May 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $17.67
18.05
18.07
18.17
17.57
17.78
17.89
17.8
16.95
16.83
15.99
16.62
16.48
16.6
16.9
16.75
16.5
16.92
16.71
16.67
16.92
17.24
17.45
17.6
17.12
17.2
17.25
17.42
17.32
18
18.2
18.36
18.46
18.14
17.71
17.86
18.65
18
17.99
17.62
17.85
16.68
16.18
16.1
15.65
14.56
14.5
14.85
5/31/04 14.95
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
10
Nuveen Virginia Dividend Advantage Municipal Fund
Performance
OVERVIEW As of May 31, 2004
NGB
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 53%
AA 22%
A 10%
BBB 7%
NR 5%
BB or Lower 3%
FUND SNAPSHOT
--------------------------------------------------
Share Price $15.07
--------------------------------------------------
Common Share Net Asset Value $14.42
--------------------------------------------------
Premium/(Discount) to NAV 4.51%
--------------------------------------------------
Market Yield 6.25%
--------------------------------------------------
Taxable-Equivalent Yield1 9.19%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $44,988
--------------------------------------------------
Average Effective Maturity (Years) 19.17
--------------------------------------------------
Leverage-Adjusted Duration 10.86
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 1/26/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -8.11% -0.50%
--------------------------------------------------
Since Inception 5.70% 6.22%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 19%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Tax Obligation/Limited 10%
--------------------------------------------------
Water and Sewer 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $17.35
17.56
17.5
17.5
17.24
17.25
17.1
16.87
15.79
16.38
16.35
16.02
16.1
16.19
16.02
16.25
15.9
16.56
16.75
16.6
16.8
17.15
17.15
16.25
16.55
16.69
16.63
17.02
17.49
17.95
18.45
17.82
17.86
17.94
17.6
17.75
17.8
17.7
18
17.85
17.55
17.15
15.37
15.45
15.1
14.76
14.35
14.95
5/31/04 15.07
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
11
Nuveen Virginia Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of May 31, 2004
NNB
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 50%
AA 31%
A 7%
BBB 7%
NR 4%
BB or Lower 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.65
--------------------------------------------------
Common Share Net Asset Value $14.79
--------------------------------------------------
Premium/(Discount) to NAV -0.95%
--------------------------------------------------
Market Yield 6.10%
--------------------------------------------------
Taxable-Equivalent Yield1 8.97%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $84,248
--------------------------------------------------
Average Effective Maturity (Years) 19.82
--------------------------------------------------
Leverage-Adjusted Duration 11.94
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/15/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year -3.81% -1.84%
--------------------------------------------------
Since Inception 4.59% 7.09%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 22%
--------------------------------------------------
Tax Obligation/Limited 20%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Water and Sewer 15%
--------------------------------------------------
Housing/Single Family 6%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0745
Apr 0.0745
May 0.0745
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/31/03 $16.14
16.2
16.76
16.5
16.6
16.8
16.65
16.4
15.1
15.49
15.5
15.52
15.5
15.42
15.61
15.99
15.7
16
15.97
16.12
16.23
16.25
16.53
16.18
16.49
16.35
16.53
17.15
17.75
17.5
17.55
16.93
16.68
16.52
16.7
16.61
16.95
16.7
16.38
16.9
16.95
16.2
15.05
14.7
14.72
14.75
14.5
14.39
5/31/04 14.65
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0472 per share.
12
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND SHAREHOLDERS
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Maryland Premium Income Municipal Fund,
Nuveen Maryland Dividend Advantage Municipal Fund, Nuveen Maryland Dividend
Advantage Municipal Fund 2, Nuveen Maryland Dividend Advantage Municipal Fund 3,
Nuveen Virginia Premium Income Municipal Fund, Nuveen Virginia Dividend
Advantage Municipal Fund and Nuveen Virginia Dividend Advantage Municipal Fund 2
as of May 31, 2004, and the related statements of operations, changes in net
assets and the financial highlights for the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of May 31, 2004, by correspondence
with the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Nuveen
Maryland Premium Income Municipal Fund, Nuveen Maryland Dividend Advantage
Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund 2, Nuveen
Maryland Dividend Advantage Municipal Fund 3, Nuveen Virginia Premium Income
Municipal Fund, Nuveen Virginia Dividend Advantage Municipal Fund and Nuveen
Virginia Dividend Advantage Municipal Fund 2 at May 31, 2004, and the results of
their operations, changes in their net assets and their financial highlights for
the periods indicated therein in conformity with U.S. generally accepted
accounting principles.
/s/ Ernst & Young LLP
CHICAGO, ILLINOIS
JULY 9, 2004
13
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8%
$ 3,255 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,785,499
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.8%
1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 997,380
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa3 1,033,530
Revenue Bonds, Collegiate Housing Foundation - Salisbury
State University, Series 1999A, 6.000%, 6/01/19
2,250 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa2 2,251,912
Revenue Bonds, Collegiate Housing Foundation - College Park,
Series 1999A, 5.750%, 6/01/24
1,000 Maryland Economic Development Corporation, Student Housing 10/13 at 100.00 Baa3 1,005,330
Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
Maryland Economic Development Corporation, Utility
Infrastructure Revenue Bonds, University of Maryland - College
Park Project, Series 2001:
1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,072,010
1,000 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,072,010
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Bullis School, Series 2000:
750 5.250%, 7/01/25 - FSA Insured 1/11 at 101.00 AAA 772,170
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 511,600
1,500 Maryland Health and Higher Educational Facilities Authority, 7/07 at 102.00 AA 1,571,700
Revenue Refunding Bonds, Johns Hopkins University,
Series 1997, 5.625%, 7/01/27
1,400 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,416,296
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.625%, 6/01/36
9,445 Morgan State University, Maryland, Student Tuition and No Opt. Call AAA 11,008,714
Fee Revenue Refunding Bonds, Academic Fees and Auxiliary
Facilities, Series 1993, 6.100%, 7/01/20 - MBIA Insured
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
5,645 5.000%, 4/01/15 4/13 at 100.00 AA 6,003,232
2,680 5.000%, 4/01/19 4/13 at 100.00 AA 2,769,780
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.9%
2,550 Gaithersburg, Maryland, Hospital Facilities Refunding and No Opt. Call AAA 3,016,268
Improvement Revenue Bonds, Shady Grove Adventist
Hospital, Series 1995, 6.500%, 9/01/12 - FSA Insured
2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,092,320
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
750 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 A3 844,297
Revenue Bonds, University of Maryland Medical System,
Series 2000, 6.750%, 7/01/30
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Johns Hopkins Hospital, Howard County General
Hospital Acquisition, Series 1998:
1,000 5.000%, 7/01/19 - MBIA Insured 7/08 at 101.00 AAA 1,015,660
1,250 5.000%, 7/01/29 - MBIA Insured 7/08 at 101.00 AAA 1,249,050
1,500 Maryland Health and Higher Educational Facilities Authority, 1/08 at 101.00 Aaa 1,503,030
Revenue Bonds, Upper Chesapeake Hospitals, Series 1998A,
5.125%, 1/01/38 - FSA Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,426,350
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A 1,591,065
Revenue Bonds, University of Maryland Medical System,
Series 2002, 6.000%, 7/01/22
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 $ 4,607,325
Revenue Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
2,750 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 2,678,555
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 3,294,070
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 3,742,848
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 1,009,780
Revenue Bonds, University of Maryland Medical System,
Series 2004B, 5.000%, 7/01/24 - AMBAC Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 1,434,000
Revenue Bonds, Medstar Health, Series 2004, 5.375%, 8/15/24
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, LifeBridge Health System, Series 2004A:
340 4.750%, 7/01/28 7/14 at 100.00 A 311,464
1,540 5.125%, 7/01/34 7/14 at 100.00 A 1,493,076
Prince George's County, Maryland, Revenue Refunding and Project
Bonds, Dimensions Health Corporation, Series 1994:
825 5.000%, 7/01/05 7/04 at 102.00 B3 739,951
3,080 5.375%, 7/01/14 7/04 at 102.00 B3 2,432,646
6,000 5.300%, 7/01/24 7/04 at 102.00 B3 4,517,400
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 19.9%
1,795 Charles County, Maryland, FHA-Insured Mortgage Revenue 5/05 at 102.00 AAA 1,849,101
Refunding Bonds, Holly Station IV Townhouses Project,
Series 1995A, 6.450%, 5/01/26
Howard County, Maryland, FHA-Insured Mortgage Revenue Refunding
Bonds, Normandy Woods III Apartments Project, Series 1996A:
700 6.000%, 7/01/17 7/06 at 102.00 AAA 728,812
2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,065,680
2,500 Maryland Community Development Administration, Housing 1/09 at 101.00 Aa2 2,516,150
Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative
Minimum Tax)
880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 919,081
Revenue Bonds, Series 1999B, 6.250%, 7/01/32 (Alternative
Minimum Tax)
1,450 Maryland Community Development Administration, FNMA 2/11 at 101.00 Aaa 1,525,966
Multifamily Development Revenue Bonds, Edgewater Village
Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative
Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/05 at 102.00 Aa2 2,064,920
Maryland, GNMA/FHA-Insured Multifamily Housing Revenue
Bonds, Series 1995A, 5.900%, 7/01/15
1,500 Montgomery County Housing Opportunities Commission, 7/06 at 102.00 Aaa 1,545,345
Maryland, Multifamily Housing Development Bonds,
Series 1996B, 5.900%, 7/01/26
3,830 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 3,851,448
Maryland, FNMA/FHA-Insured Multifamily Housing
Development Bonds, Series 1998A, 5.200%, 7/01/30
2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,074,780
Maryland, Multifamily Housing Development Bonds,
Series 2000A, 6.100%, 7/01/30
Prince George's County Housing Authority, Maryland, Mortgage
Revenue Refunding Bonds, Cherry Hill Apartments, Series 1993A:
1,090 5.900%, 9/20/10 - FSA Insured 9/04 at 101.00 AAA 1,111,549
1,930 6.000%, 9/20/15 - FSA Insured 9/04 at 101.00 AAA 1,962,250
1,500 Prince George's County Housing Authority, Maryland, GNMA 12/04 at 102.00 AAA 1,542,165
Collateralized Mortgage Revenue Refunding Bonds, Riverview
Terrace Apartments, Series 1995A, 6.700%, 6/20/20
Prince George's County Housing Authority, Maryland, GNMA
Collateralized Mortgage Revenue Refunding Bonds, Overlook
Apartments, Series 1995A:
2,000 5.700%, 12/20/15 12/05 at 102.00 AAA 2,071,660
1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,720,484
15
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,000 Prince George's County Housing Authority, Maryland, 11/04 at 100.00 AAA $ 1,000,670
GNMA Collateralized Mortgage Revenue Refunding Bonds,
Foxglenn Apartments, Series 1998A, 5.450%, 11/20/14
(Alternative Minimum Tax)
540 Prince George's County Housing Authority, Maryland, GNMA 9/09 at 102.00 AAA 564,224
Collateralized Mortgage Revenue Bonds, University Landing
Apartments, Series 1999, 6.100%, 3/20/41 (Alternative
Minimum Tax)
1,000 Salisbury, Maryland, FHA-Insured Mortgage Revenue Refunding 12/04 at 102.00 AAA 1,025,750
Bonds, College Lane Apartments, Series 1995A,
6.600%, 12/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.0%
940 Prince George's County Housing Authority, Maryland, 8/07 at 102.00 AAA 976,181
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 1997A, 5.625%, 8/01/17
(Alternative Minimum Tax)
130 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 134,692
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 2000A, 6.150%, 8/01/19
(Alternative Minimum Tax)
400 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 380,648
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8%
1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA 1/09 at 101.00 AA 1,026,330
Obligated Group, Series 1999A, 5.625%, 1/01/25 -
RAAI Insured
1,745 Maryland Economic Development Corporation, Health and 4/11 at 102.00 N/R 1,742,278
Mental Hygiene Providers Revenue Bonds, Series 1996A,
7.625%, 4/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.0%
4,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 4,352,040
Series 2003, 5.000%, 3/01/13
Baltimore County, Maryland, Metropolitan District General
Obligation Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,524,375
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,526,495
1,000 Baltimore, Maryland, General Obligation Bonds, Consolidated No Opt. Call A+ 1,164,880
Public Improvement, Series 1989B, 7.150%, 10/15/08
Frederick County, Maryland, General Obligation Public Facilities
Bonds, Series 2002:
1,000 5.000%, 11/01/21 11/12 at 101.00 AA 1,031,540
1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,025,710
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AA 3,177,690
Bonds, Series 1999, 5.250%, 7/01/18
500 Frederick County, Maryland, Special Obligation Bonds, Villages 7/10 at 102.00 AA 515,115
of Lake Linganore Community Development Authority,
Series 2001A, 5.700%, 7/01/29 - RAAI Insured
Howard County, Maryland, Consolidated Public Improvement
Bonds, Series 2004B:
735 5.000%, 8/15/16 2/14 at 100.00 AAA 783,576
1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,719,071
1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,233,029
1,190 Maryland National Capital Park and Planning Commission, 1/14 at 100.00 AA 1,253,617
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
Montgomery County, Maryland, General Obligation Refunding
Bonds, Consolidated Public Improvement, Series 2001:
1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,923,828
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,127,200
925 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 963,489
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,056,130
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
3,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 2,797,860
Consolidated Public Improvement Bonds, Series 2002,
4.100%, 9/15/19
5,770 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 6,034,785
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/18
460 Wicomico County, Maryland, General Obligation Public 12/09 at 101.00 AAA 510,361
Improvement Bonds, Series 1999, 5.750%, 12/01/19 -
FGIC Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.4%
Baltimore Board of School Commissioners, Maryland, City Public
School System Revenue Bonds, Series 2003A:
$ 1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ $ 1,584,495
1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,042,730
1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 1,839,557
Bonds, Series 2002A, 5.250%, 8/15/18
1,465 Maryland Community Development Administration, 6/08 at 101.00 Aaa 1,483,752
Infrastructure Financing Bonds, Series 1998B,
5.200%, 6/01/28 - MBIA Insured
4,250 Maryland Department of Transportation, County Transportation No Opt. Call AA 4,753,413
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,875 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,991,513
Revenue Bonds, Department of Transportation Headquarters
Building, Series 2002, 5.375%, 6/01/19
Maryland Department of Transportation, Certificates of
Participation, Mass Transit Administration Project, Series 2000:
880 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 918,685
930 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 966,782
1,700 Maryland Stadium Authority, Lease Revenue Bonds, 6/13 at 100.00 AA+ 1,711,645
Montgomery County Conference Center Facilities,
Series 2003, 5.000%, 6/15/24
2,455 Maryland Stadium Authority, Lease Revenue Bonds, Sports 3/06 at 101.00 AAA 2,615,655
Facilities, Series 1996, 5.750%, 3/01/18 - AMBAC Insured
1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,016,820
Metrorail Garage, Series 2002, 5.000%, 6/01/21
675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 692,570
West Germantown Development District, Senior
Series 2002A, 5.500%, 7/01/27 - RAAI Insured
635 New Baltimore City Board of School Commissioners, 11/10 at 100.00 AA+ 676,694
Maryland, School System Revenue Bonds, Series 2000,
5.125%, 11/01/15
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100.00 A 1,022,300
Revenue Bonds, Series 1996Y, 5.500%, 7/01/36
1,500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,676,100
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,227,680
5.250%, 8/01/21 - FSA Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 2,229,400
Loan Notes, Series 1999A, 6.500%, 10/01/24
Washington Suburban Sanitary District, Montgomery and Prince
George's Counties, Maryland, General Obligation Construction
Bonds, Series 2000:
1,085 5.250%, 6/01/20 6/10 at 100.00 AAA 1,142,765
1,205 5.250%, 6/01/21 6/10 at 100.00 AAA 1,264,527
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.9%
1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,149,453
System Facilities, Series 1998A, 5.250%, 7/01/17 -
FGIC Insured
2,075 Puerto Rico Ports Authority, Special Facilities Revenue 6/06 at 102.00 CCC 1,397,782
Bonds, American Airlines Inc., Series 1996A,
6.250%, 6/01/26 (Alternative Minimum Tax)
3,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 3,273,600
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.8%
2,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 2,735,450
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water 7/08 at 101.00 AAA 2,006,880
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,039,440
System Projects, Series 1994A, 5.000%, 7/01/24 -
FGIC Insured
1,500 Baltimore, Maryland, Project and Revenue Refunding Bonds, 7/10 at 100.00 AAA 1,686,135
Wastewater Projects, Series 2000A, 5.625%, 7/01/30
(Pre-refunded to 7/01/10) - FSA Insured
17
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 845 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 909,127
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 637,393
Refunding Bonds, Series 2002A, 5.250%, 8/15/18
(Pre-refunded to 2/15/12)
Howard County, Maryland, Consolidated Public Improvement
Refunding Bonds, Series 2003A:
1,720 5.000%, 8/15/17 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,882,265
1,000 5.000%, 8/15/22 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,094,340
145 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 160,734
Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded
to 2/15/12)
1,875 Maryland Health and Higher Educational Facilities Authority, 7/04 at 101.00 AAA 1,919,269
Revenue Bonds, Good Samaritan Hospital, Series 1993,
5.750%, 7/01/19 - AMBAC Insured
3,125 Maryland Health and Higher Educational Facilities Authority, 7/04 at 101.00 Aaa 3,145,031
Revenue Bonds, Howard County General Hospital,
Series 1993, 5.500%, 7/01/25
3,135 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,149,829
Revenue Bonds, Helix Health, Series 1997,
5.000%, 7/01/27 - AMBAC Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,064,680
Obligation Bonds, Series 2000A, 5.500%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.8%
6,000 Anne Arundel County, Maryland, Pollution Control Revenue 10/04 at 102.00 A2 6,165,600
Refunding Bonds, Baltimore Gas and Electric Company
Project, Series 1994, 6.000%, 4/01/24
6,500 Calvert County, Maryland, Pollution Control Revenue 7/04 at 102.00 A2 6,638,970
Refunding Bonds, Baltimore Gas and Electric Company
Project, Series 1993, 5.550%, 7/15/14
3,000 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 3,028,740
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
5,000 Prince George's County, Maryland, Pollution Control Revenue 7/04 at 101.00 A- 5,054,900
Refunding Bonds, Potomac Electric Power Company,
Series 1993, 6.375%, 1/15/23
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.7%
1,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 1,024,910
System Projects, Series 1994A, 5.000%, 7/01/24 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 220,830 Total Long-Term Investments (cost $223,291,162) - 149.8% 226,412,884
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 3,793,913
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.3)% (79,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 151,106,797
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
18
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3%
$ 1,625 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,390,610
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.4%
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
465 5.700%, 9/01/20 3/10 at 101.00 BBB 477,132
1,000 5.750%, 9/01/25 3/10 at 101.00 BBB 1,013,570
500 5.800%, 9/01/30 3/10 at 101.00 BBB 506,605
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 643,310
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,800 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 1,844,838
Housing Revenue Bonds, Sheppard Pratt University Village,
Series 2001, 6.000%, 7/01/33 - ACA Insured
1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,030,090
Infrastructure Revenue Bonds, University of Maryland -
College Park Project, Series 2001, 5.000%, 7/01/19 -
AMBAC Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 1,506,345
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School, Series 2001, 6.000%, 7/01/31
625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 628,781
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System
Project, Series 1999:
215 5.375%, 2/01/19 2/09 at 101.00 BBB 217,384
410 5.375%, 2/01/29 2/09 at 101.00 BBB 400,656
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,063,460
500 5.000%, 4/01/19 4/13 at 100.00 AA 516,750
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.1%
2,725 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A 2,850,786
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 A2 962,690
Revenue Bonds, Calvert Memorial Hospital, Series 1998,
5.000%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,006,710
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/28 - FSA Insured
570 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 A3 571,368
Revenue Refunding Bonds, Union Hospital of Cecil County,
Series 1998, 5.100%, 7/01/22
1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,258,375
Revenue Bonds, Johns Hopkins Hospital, Series 2001,
5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,002,260
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
750 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 713,175
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 1,982,340
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,044,520
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
19
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 $ 974,020
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 984,960
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 478,000
Revenue Bonds, Medstar Health, Series 2004,
5.375%, 8/15/24
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, LifeBridge Health System, Series 2004A:
165 4.750%, 7/01/28 7/14 at 100.00 A 151,152
585 5.125%, 7/01/34 7/14 at 100.00 A 567,175
600 Prince George's County, Maryland, Revenue Refunding and 7/04 at 102.00 B3 451,740
Project Bonds, Dimensions Health Corporation, Series 1994,
5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.9%
750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA 752,580
Refunding Bonds, Cross Creek Apartments Project,
Series 1998A, 5.250%, 10/20/33
2,000 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,037,720
Revenue Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative
Minimum Tax)
850 Maryland Community Development Administration, Multifamily 5/11 at 100.00 Aa2 856,758
Housing Insured Mortgage Loans, Series 2001B,
5.350%, 5/15/32 (Alternative Minimum Tax)
1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,016,410
Housing Revenue Bonds, Princess Anne Apartments,
Series 2001D, 5.450%, 12/15/33 (Alternative Minimum Tax)
750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 754,620
Maryland, FNMA/FHA-Insured Multifamily Housing
Development Bonds, Series 1998A, 5.250%, 7/01/29
(Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/10 at 100.00 Aaa 2,081,800
Maryland, Multifamily Housing Development Bonds,
Series 2000B, 6.200%, 7/01/30 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, 7/11 at 100.00 Aaa 2,041,380
Maryland, Multifamily Housing Development Bonds,
Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 12.4%
195 Maryland Community Development Administration, 9/09 at 100.00 Aa2 200,257
Residential Revenue Bonds, Series 1999E, 5.700%, 9/01/17
3,000 Maryland Community Development Administration, 9/09 at 100.00 Aa2 3,099,840
Residential Revenue Bonds, Series 2000G, 5.950%, 9/01/29
(Alternative Minimum Tax)
1,130 Maryland Community Development Administration, 9/10 at 100.00 Aa2 1,167,606
Residential Revenue Bonds, Series 2000H, 5.800%, 9/01/32
(Alternative Minimum Tax)
415 Maryland Community Development Administration, Single 10/10 at 100.00 Aa2 423,674
Family Program Bonds, First Series 2001, 5.000%, 4/01/17
630 Maryland Community Development Administration, 9/10 at 100.00 Aa2 634,454
Residential Revenue Bonds, Series 2001B, 5.450%, 9/01/32
(Alternative Minimum Tax)
1,000 Maryland Community Development Administration, 3/11 at 100.00 Aa2 1,023,720
Residential Revenue Bonds, Series 2001F, 5.600%, 9/01/28
(Alternative Minimum Tax)
860 Prince George's County Housing Authority, Maryland, 8/07 at 102.00 AAA 881,543
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/30
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6%
1,000 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 988,050
Recovery Revenue Bonds, Baltimore RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.3%
1,000 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 790,100
Revenue Bonds, Collington Episcopal Life, Series 2001A,
6.750%, 4/01/23
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.6%
Anne Arundel County, Maryland, General Obligation Bonds,
Various Purpose, Series 2001:
$ 580 4.800%, 2/15/18 2/11 at 101.00 AA+ $ 594,030
500 5.000%, 2/15/28 2/11 at 101.00 AA+ 501,820
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,088,010
Series 2003, 5.000%, 3/01/13
3,500 Baltimore County, Maryland, Metropolitan District General 6/11 at 101.00 AAA 3,524,465
Obligation Bonds, 67th Issue, 5.000%, 6/01/27
1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,025,710
Facilities Bonds, Series 2002, 5.000%, 11/01/22
1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,367,004
Bonds, Series 2001A, 4.750%, 2/15/21
1,000 Maryland National Capital Park and Planning Commission, 1/14 at 100.00 AA 1,053,460
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
430 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 447,892
Series 2000A, 6.000%, 6/01/20 - ACA Insured
740 Ocean City, Maryland, General Obligation Bonds, 3/11 at 101.00 AAA 757,434
Series 2001, 4.875%, 3/01/19 - FGIC Insured
1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,584,195
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,052,150
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.8%
815 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 810,949
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
500 Baltimore Board of School Commissioners, Maryland, City 5/13 at 100.00 AA+ 521,365
Public School System Revenue Bonds, Series 2003A,
5.000%, 5/01/18
1,500 Maryland Department of Transportation, County Transportation No Opt. Call AA 1,677,675
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 1,492,307
Revenue Bonds, Department of Transportation Headquarters
Building, Series 2002, 5.375%, 6/01/19
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 782,180
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 1,429,165
Loan Notes, Series 1999A, 6.375%, 10/01/19
Washington Suburban Sanitary District, Montgomery and Prince
George's Counties, Maryland, General Obligation Construction
Bonds, Series 2001:
895 5.000%, 6/01/22 6/11 at 100.00 AAA 910,072
935 5.000%, 6/01/23 6/11 at 100.00 AAA 946,846
985 5.000%, 6/01/24 6/11 at 100.00 AAA 993,973
1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,043,208
1,290 Washington Suburban Sanitary District, Montgomery and 6/11 at 100.00 AAA 1,303,403
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2001, 4.750%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.1%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, Johns Hopkins Hospital, Series 2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 650,663
750 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 745,575
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,091,200
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
21
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.4%
$ 1,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA $ 1,641,270
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water 7/08 at 101.00 AAA 1,018,492
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured
670 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 683,212
System Projects, Series 1994A, 5.000%, 7/01/24 -
FGIC Insured
2,115 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 2,275,507
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,220 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,318,430
Bonds, Series 2001A, 4.750%, 2/15/20 (Pre-refunded
to 2/15/09)
500 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 547,170
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
1,000 Maryland Transportation Authority, Revenue Refunding No Opt. Call AAA 1,160,220
Bonds, Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,416,610
1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,786,190
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.3%
2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 2,523,950
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
1,800 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,837,280
Refunding Bonds, Series 1995Z, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6%
330 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 338,220
System Projects, Series 1994A, 5.000%, 7/01/24 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 88,020 Total Long-Term Investments (cost $88,998,439) - 149.8% 89,930,616
============= --------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.5% 2,110,706
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.3)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 60,041,322
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
22
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2%
$ 815 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 697,444
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
800 Virgin Islands Tobacco Settlement Financing Corporation, 5/11 at 100.00 Baa3 660,976
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.2%
1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,107,766
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 643,310
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,005,330
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 251,058
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School, Series 2001, 6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities Authority, 1/11 at 101.00 AAA 424,628
Revenue Bonds, Bullis School, Series 2000,
5.250%, 7/01/30 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 AA 1,078,930
Revenue Refunding Bonds, Johns Hopkins University,
Series 1998, 5.125%, 7/01/12
1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,257,563
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
500 Morgan State University, Maryland, Student Tuition and 7/12 at 100.00 AAA 513,315
Fee Revenue Bonds, Academic Fees and Auxiliary
Facilities, Series 2001, 4.900%, 7/01/21 - FGIC Insured
500 Morgan State University, Maryland, Student Tuition and 7/13 at 100.00 AAA 519,030
Fee Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/20 - FGIC Insured
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2001B:
1,580 4.375%, 4/01/17 4/11 at 100.00 AA 1,570,710
1,140 4.500%, 4/01/19 4/11 at 100.00 AA 1,122,353
1,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/13 at 100.00 AA 1,033,500
Bonds, Series 2003A, 5.000%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.8%
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,004,680
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 1,503,390
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
750 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 713,175
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 1,982,340
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,044,520
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 487,010
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 984,960
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 478,000
Revenue Bonds, Medstar Health, Series 2004, 5.375%, 8/15/24
23
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, LifeBridge Health System, Series 2004A:
$ 165 4.750%, 7/01/28 7/14 at 100.00 A $ 151,152
525 5.125%, 7/01/34 7/14 at 100.00 A 509,003
2,160 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA- 2,172,010
Revenue Bonds, Trinity Healthcare Group, Series 2001,
5.125%, 12/01/22
Prince George's County, Maryland, Revenue Refunding and Project
Bonds, Dimensions Health Corporation, Series 1994:
100 5.375%, 7/01/14 7/04 at 102.00 B3 78,982
500 5.300%, 7/01/24 7/04 at 102.00 B3 376,450
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.9%
55 Maryland Community Development Administration, 5/11 at 100.00 Aa2 55,117
Multifamily Housing Insured Mortgage Loans, Series 2001A,
5.100%, 5/15/28
4,255 Maryland Community Development Administration, 5/11 at 100.00 Aa2 4,288,827
Multifamily Housing Insured Mortgage Loans, Series 2001B,
5.350%, 5/15/32 (Alternative Minimum Tax)
1,110 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,128,215
Multifamily Housing Revenue Bonds, Princess Anne
Apartments, Series 2001D, 5.450%, 12/15/33
(Alternative Minimum Tax)
3,145 Maryland Community Development Administration, 12/11 at 100.00 Aaa 3,196,609
Multifamily Development Revenue Bonds, Waters
Towers Senior Apartments, Series 2001F, 5.450%, 12/15/33
(Alternative Minimum Tax)
440 Maryland Community Development Administration, 5/12 at 100.00 Aa2 450,754
Multifamily Housing Insured Mortgage Revenue Bonds,
Series 2002A, 5.300%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.5%
500 Maryland Community Development Administration, Residential 3/07 at 101.50 Aa2 514,655
Revenue Bonds, Series 1997B, 5.875%, 9/01/25
(Alternative Minimum Tax)
990 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 998,712
Revenue Bonds, Series 2001H, 5.350%, 9/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.6%
2,250 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 2,223,113
Recovery Revenue Bonds, Baltimore RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.1%
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Collington Episcopal Life, Series 2001A:
10 6.750%, 4/01/20 4/09 at 100.00 N/R 7,901
25 6.750%, 4/01/23 4/11 at 101.00 N/R 19,753
30 Prince George's County, Maryland, Revenue Bonds, Collington 6/04 at 102.00 N/R 23,700
Episcopal Life Care Community, Inc., Series 1994A,
6.000%, 4/01/13
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.0%
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,088,010
Series 2003, 5.000%, 3/01/13
Cecil County, Maryland, General Obligation Bonds, Consolidated
Public Improvement, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 AA- 979,514
1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,014,319
300 4.625%, 8/01/20 8/11 at 101.00 AA- 296,949
335 4.750%, 8/01/21 8/11 at 101.00 AA- 335,348
1,000 Frederick County, Maryland, General Obligation Public 11/12 at 101.00 AA 1,038,250
Facilities Bonds, Series 2002, 5.000%, 11/01/20
3,000 Frederick County, Maryland, General Obligation Public 12/10 at 101.00 AA 3,146,370
Facilities Bonds, Series 2000, 5.200%, 12/01/19
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 517,604
Improvement Bonds, Series 2001, 4.750%, 12/01/19
1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,066,090
Bonds, Series 2004B, 5.000%, 8/15/16
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Maryland, General Obligation Bonds, State and Local Facilities
Loan, First Series 2001:
$ 2,445 5.500%, 3/01/11 No Opt. Call AAA $ 2,748,962
1,500 5.500%, 3/01/12 No Opt. Call AAA 1,692,090
4,730 Montgomery County, Maryland, General Obligation Refunding 10/11 at 101.00 AAA 5,030,828
Bonds, Consolidated Public Improvement, Series 2001,
5.250%, 10/01/18
Prince George's County, Maryland, General Obligation
Consolidated Public Improvement Bonds, Series 2001:
1,000 5.250%, 12/01/20 - FGIC Insured 12/11 at 101.00 AAA 1,056,130
2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 2,969,065
2,000 Puerto Rico, Public Improvement General Obligation Refunding 7/11 at 100.00 AAA 2,023,120
Bonds, Series 2001, 5.000%, 7/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.7%
750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 743,040
Consolidated Water and Sewer, Series 1999,
4.500%, 8/01/19
815 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 810,949
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
Baltimore County, Maryland, Certificates of Participation,
Health and Social Services Building Project, Series 2001:
1,580 5.000%, 8/01/20 8/11 at 101.00 AA+ 1,610,763
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,684,917
530 Baltimore Board of School Commissioners, Maryland, 5/13 at 100.00 AA+ 564,726
City Public School System Revenue Bonds, Series 2003A,
5.000%, 5/01/15
1,000 Maryland Department of Transportation, County Transportation No Opt. Call AA 1,118,450
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,492,307
Bonds, Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
1,000 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 1,026,030
West Germantown Development District, Senior
Series 2002A, 5.500%, 7/01/27 - RAAI Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 782,180
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,100 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 1,121,318
Revenue Bonds, Series 1997A, 5.000%, 7/01/21 -
AMBAC Insured
1,000 Washington Suburban Sanitary District, Montgomery and 6/08 at 102.00 AAA 1,052,990
Prince George's Counties, Maryland, Water Supply Bonds,
Series 1998, 5.000%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.4%
Maryland Health and Higher Educational Facilities Authority,
Parking Revenue Bonds, Johns Hopkins Hospital, Series 2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 650,663
2,775 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 2,758,628
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,091,200
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.9%
1,500 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 1,641,270
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,144,010
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
750 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 820,752
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
25
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA $ 1,346,890
Revenue Bonds, Helix Health, Series 1997,
5.000%, 7/01/17 - AMBAC Insured
1,365 Maryland Transportation Authority, Revenue Refunding No Opt. Call AAA 1,583,700
Bonds, Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,202,800
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
800 Puerto Rico Public Finance Corporation, Commonwealth 8/11 at 100.00 AAA 827,120
Appropriation Bonds, Series 2001A, 5.000%, 8/01/21
(Pre-refunded to 8/01/11) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3%
1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 1,009,210
5.250%, 10/01/34 - MBIA Insured
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 1,009,580
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 88,780 Total Long-Term Investments (cost $90,342,700) - 149.6% 91,375,083
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 1,688,937
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 61,064,020
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
26
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3%
$ 2,835 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 2,426,080
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.8%
225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 226,589
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 688,192
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
130 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 133,238
Housing Revenue Bonds, Sheppard Pratt University Village,
Series 2001, 6.000%, 7/01/33 - ACA Insured
1,250 Maryland Economic Development Corporation, Student Housing 10/13 at 100.00 Baa3 1,256,663
Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
740 Maryland Health and Higher Educational Facilities Authority, 10/09 at 101.00 A 724,090
Revenue Bonds, Loyola College, Series 1999,
5.000%, 10/01/39
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 995,470
Revenue Bonds, Johns Hopkins University, Series 2002A,
5.000%, 7/01/32
1,500 Morgan State University, Maryland, Student Tuition and 7/13 at 100.00 AAA 1,504,275
Fee Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/32 - FGIC Insured
985 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA 966,856
Bonds, Series 2001B, 4.625%, 4/01/21
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2002A:
1,000 5.000%, 4/01/09 No Opt. Call AA 1,082,200
2,000 5.125%, 4/01/22 4/12 at 100.00 AA 2,049,420
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,063,460
1,000 5.000%, 4/01/19 4/13 at 100.00 AA 1,033,500
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.5%
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,004,680
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 AA- 1,006,700
Revenue Bonds, Johns Hopkins Hospital, Series 2001,
5.000%, 5/15/21
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A- 651,469
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 950,900
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 974,020
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,870,018
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa1 769,869
Revenue Refunding Bonds, Adventist Healthcare,
Series 2003A, 5.750%, 1/01/25
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 984,960
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB 478,000
Revenue Bonds, Medstar Health, Series 2004, 5.375%, 8/15/24
27
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, LifeBridge Health System, Series 2004A:
$ 165 4.750%, 7/01/28 7/14 at 100.00 A $ 151,152
725 5.125%, 7/01/34 7/14 at 100.00 A 702,909
700 Prince George's County, Maryland, Revenue Refunding 7/04 at 102.00 B3 527,030
and Project Bonds, Dimensions Health Corporation,
Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 16.5%
2,000 Maryland Community Development Administration, 7/12 at 100.00 Aa2 1,950,720
Housing Revenue Bonds, Series 2002B, 4.950%, 7/01/32
(Alternative Minimum Tax)
Montgomery County Housing Opportunities Commission,
Maryland, Multifamily Housing Development Bonds,
Series 2002B:
515 5.100%, 7/01/33 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 508,362
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 2,974,860
2,000 Prince George's County Housing Authority, Maryland, GNMA 2/13 at 102.00 AAA 1,971,880
Collateralized Mortgage Revenue Bonds, Windsor Crossing
Apartments, Series 2002A, 5.150%, 8/20/33 (Alternative
Minimum Tax)
4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 4,861,604
Collateralized Mortgage Revenue Bonds, Fairview and
Hillside Projects, Series 2002A, 4.700%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.5%
1,900 Northeast Maryland Waste Disposal Authority, Resource 1/09 at 101.00 BBB 1,877,295
Recovery Revenue Bonds, Baltimore RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.3%
265 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 209,377
Revenue Bonds, Collington Episcopal Life, Series 2001A,
6.750%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.5%
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 991,220
Refunding Bonds, Series 2002, 4.375%, 4/01/17
10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AA+ 10,323
Consolidated Improvements, Series 1999, 5.000%, 5/15/19
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,088,010
Series 2003, 5.000%, 3/01/13
1,000 Calvert County, Maryland, General Obligation Public 1/12 at 101.00 AA 1,015,940
Improvement Bonds, Series 2002, 4.500%, 1/01/16
1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,273,658
Public Improvement Bonds, Series 2002, 4.400%, 1/15/16
Frederick County, Maryland, General Obligation Public Facilities
Bonds, Series 2002:
1,830 5.000%, 11/01/20 11/12 at 101.00 AA 1,899,998
2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,099,184
2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,564,275
100 Frederick County, Maryland, General Obligation Public 7/09 at 101.00 AA 106,226
Facilities Bonds, Series 1999, 5.250%, 7/01/17
245 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 260,553
Villages of Lake Linganore Community Development
Authority, Series 2001A, 5.600%, 7/01/20 - RAAI Insured
1,000 Maryland National Capital Park and Planning Commission, 1/14 at 100.00 AA 1,053,460
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
2,000 Maryland, General Obligation Bonds, State and Local Facilities No Opt. Call AAA 2,205,140
Loan, Series 2002B, 5.250%, 2/01/10
2,000 Montgomery County, Maryland, General Obligation Bonds, 2/12 at 101.00 AAA 2,080,000
Consolidated Public Improvement, Series 2002A,
5.000%, 2/01/20
5,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 4,681,850
Consolidated Public Improvement Bonds, Series 2002,
4.300%, 9/15/21
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA $ 1,052,150
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
1,430 Puerto Rico, Public Improvement General Obligation Refunding 7/11 at 100.00 AAA 1,442,870
Bonds, Series 2001, 5.125%, 7/01/30 - FSA Insured
1,000 St. Mary's County, Maryland, General Obligation Hospital No Opt. Call AA- 1,089,680
Bonds, Series 2002, 5.000%, 10/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.7%
530 Baltimore, Maryland, Convention Center Revenue Refunding 9/08 at 102.00 AAA 544,570
Bonds, Series 1998, 5.000%, 9/01/19 - MBIA Insured
1,000 Baltimore Board of School Commissioners, Maryland, City 5/13 at 100.00 AA+ 1,065,520
Public School System Revenue Bonds, Series 2003A,
5.000%, 5/01/15
5,000 Maryland Department of Transportation, County Transportation No Opt. Call AA 5,592,250
Revenue Bonds, Series 2002, 5.500%, 2/01/16
2,200 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,169,860
Revenue Bonds, Department of Transportation Headquarters
Building, Series 2002, 4.750%, 6/01/22
2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,150,957
Bonds, Montgomery County Wayne Avenue Parking Project,
Series 2002A, 5.250%, 9/15/16
Maryland Stadium Authority, Lease Revenue Bonds,
Montgomery County Conference Center Facilities,
Series 2003:
1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ 1,492,190
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,636,994
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 782,180
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
3,500 Puerto Rico Infrastructure Financing Authority, Special Tax 1/08 at 101.00 AAA 3,507,455
Revenue Bonds, Series 1997A, 5.000%, 7/01/28 -
AMBAC Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
1,000 5.250%, 7/01/17 7/12 at 100.00 A- 1,040,380
1,205 5.250%, 7/01/20 7/12 at 100.00 A- 1,233,245
1,275 5.250%, 7/01/21 7/12 at 100.00 A- 1,299,760
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,054,060
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
935 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 952,784
Appropriation Bonds, Series 2002E, 5.500%,8/01/29
25 Washington Suburban Sanitary District, Maryland, General 6/11 at 101.00 AAA 26,166
Obligation Construction Bonds, Second Series 2001,
5.000%, 6/01/17
1,000 Washington Suburban Sanitary District, Montgomery and 6/08 at 102.00 AAA 1,052,990
Prince George's Counties, Maryland, Water Supply Bonds,
Series 1998, 5.000%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.5%
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,091,200
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.8%
2,115 Baltimore County, Maryland, General Obligation Consolidated 8/12 at 100.00 AAA 2,351,267
Public Improvement Bonds, Series 2002, 5.250%, 8/01/17
(Pre-refunded to 8/01/12)
1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,307,623
Bonds, Series 2001A, 4.750%, 2/15/19 (Pre-refunded
to 2/15/09)
1,215 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 1,329,623
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
29
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 690 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA $ 800,552
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,253,500
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2%
1,250 Maryland Energy Financing Administration, Revenue Bonds, 9/05 at 102.00 N/R 1,261,975
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
4,025 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 4,111,980
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.5%
2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,574,933
Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 108,130 Total Long-Term Investments (cost $111,733,117) - 148.1% 110,174,389
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.7%
1,250 Puerto Rico Government Development Bank, Adjustable A-1 1,250,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 0.970%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,250 Total Short-Term Investments (cost $1,250,000) 1,250,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $112,983,117) - 149.8% 111,424,389
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 1,944,629
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (39,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 74,369,018
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
30
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.1%
$ 1,625 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,390,610
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.7%
3,500 Alexandria Industrial Development Authority, Virginia, 10/10 at 101.00 AAA 3,803,170
Fixed Rate Revenue Bonds, Institute for Defense Analyses,
Series 2000A, 5.900%, 10/01/30 - AMBAC Insured
Danville Industrial Development Authority, Virginia, Student
Housing Revenue Bonds, Collegiate Housing Foundation, Averett
College Project, Series 1999A:
500 6.875%, 6/01/20 6/09 at 102.00 N/R 464,785
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,374,135
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 959,890
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
500 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 520,770
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
500 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 441,735
Horse Center Revenue and Refunding Bonds, Series 2001C,
6.850%, 7/15/21
2,000 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,000,440
Revenue Bonds, Public Higher Education Financing Program,
Series 2001A, 5.000%, 9/01/26
3,000 Virginia College Building Authority, Educational Facilities 11/04 at 100.00 Aa1 3,051,360
Revenue Bonds, University of Richmond, Series 1994,
5.550%, 11/01/19 (Optional put 11/01/04)
1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+ 1,083,140
Revenue Bonds, Hampton University, Series 2000,
6.000%, 4/01/20
1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,708,477
Series 2004A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.2%
2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 1,952,100
Virginia, Hospital Revenue Bonds, Martha Jefferson
Hospital, Series 2002, 5.250%, 10/01/35
2,000 Danville Industrial Development Authority, Virginia, No Opt. Call AAA 2,123,780
Hospital Revenue Bonds, Danville Regional Medical Center,
Series 1998, 5.200%, 10/01/18 - AMBAC Insured
4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA 4,900,537
Hospital Revenue Refunding Bonds, Inova Health System
Hospitals Project, Series 1993A, 5.000%, 8/15/23
1,200 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,151,004
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,180,620
Hospital Revenue Bonds, Memorial Regional Medical
Center Project, Series 1995, 6.375%, 8/15/18 - MBIA Insured
4,650 Hanover County Industrial Development Authority, Virginia, 8/05 at 102.00 AAA 4,758,019
Hospital Revenue Bonds, Bon Secours Health System
Projects, Series 1995, 5.500%, 8/15/25 - MBIA Insured
1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,506,480
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,500 Henrico County Industrial Development Authority, Virginia, No Opt. Call AAA 1,760,700
Healthcare Revenue Bonds, Bon Secours Health System Inc.,
Series 1996, 6.250%, 8/15/20 - MBIA Insured
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
375 6.000%, 6/01/22 6/12 at 101.00 BBB 388,583
800 6.100%, 6/01/32 6/12 at 101.00 BBB 820,200
2,260 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 2,238,281
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
31
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,750 Medical College Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA $ 4,799,733
Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured
2,500 Norfolk Industrial Development Authority, Virginia, Hospital 11/04 at 102.00 AA 2,596,000
Revenue Refunding Bonds, Sentara Hospitals - Norfolk,
Series 1994A, 6.500%, 11/01/13
3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,183,690
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.5%
1,485 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,552,820
Multifamily Housing Revenue Bonds, Patrick Henry
Apartments, Series 2000, 6.050%, 11/01/32 (Alternative
Minimum Tax) (Mandatory put 11/01/20)
4,445 Hampton Redevelopment and Housing Authority, Virginia, 7/04 at 100.00 A-1 4,466,292
Multifamily Housing Revenue Refunding Bonds, Chase
Hampton II Apartments, Series 1994, 7.000%, 7/01/24
(Mandatory put 7/01/04)
1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,577,644
GNMA Mortgage-Backed Securities Beth Sholom
Assisted Living Revenue Bonds, Series 1999A,
5.900%, 7/20/29
1,000 Lynchburg Redevelopment and Housing Authority, 4/10 at 102.00 AAA 1,021,800
Virginia, Vistas GNMA Mortgage-Backed Revenue
Bonds, Series 2000A, 6.200%, 1/20/40 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.1%
425 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 404,439
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 991,050
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5%
2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,041,320
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia, Inc. Project, Series 1999,
4.875%, 2/01/09 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
Winchester Industrial Development Authority, Virginia,
Residential Care Facility First Mortgage Revenue Bonds,
Westminster-Canterbury of Winchester, Inc., Series 1998:
1,350 5.750%, 1/01/18 7/04 at 101.00 N/R 1,348,650
1,000 5.750%, 1/01/27 7/04 at 101.00 N/R 945,620
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.5%
500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba3 454,700
Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation, Series 1998,
5.600%, 12/01/25 (Alternative Minimum Tax)
1,900 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 Ba3 1,914,174
Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation, Series 1999A,
6.550%, 12/01/25 (Alternative Minimum Tax)
1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba3 919,590
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998,
5.650%, 12/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.9%
Chesapeake, Virginia, General Obligation Water and
Sewer Bonds, Series 2003B:
1,880 5.000%, 6/01/21 6/13 at 100.00 AA 1,921,717
2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,083,072
Hampton, Virginia, General Obligation Public Improvement
Bonds, Series 2000:
890 5.750%, 2/01/17 2/10 at 102.00 AA 982,062
2,000 6.000%, 2/01/20 2/10 at 102.00 AA 2,225,000
1,355 Harrisonburg, Virginia, General Obligation Bonds, Public 7/12 at 101.00 AAA 1,404,539
Safety and Steam Plant, Series 2002, 5.000%, 7/15/19 -
FGIC Insured
585 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 611,378
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Newport News, Virginia, General Obligation Bonds, General
Improvement and Water Projects, Series 2002A:
$ 2,770 5.000%, 7/01/19 7/13 at 100.00 AA $ 2,867,061
1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,029,030
1,250 Newport News, Virginia, General Obligation Bonds, 1/14 at 101.00 AA 1,315,788
Series 2004B, 5.000%, 1/15/17
1,400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,458,254
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Portsmouth, Virginia, General Obligation Bonds, Series 2003, No Opt. Call AAA 1,091,620
5.000%, 7/01/12 - FSA Insured
1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,506,820
Bonds, Series 2002A, 5.000%, 10/01/17
1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,473,550
Bonds, Series 2001, 5.000%, 6/01/20
2,155 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,299,514
Series 2003B, 5.000%, 5/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.1%
750 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 771,240
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured
Cumberland County, Virginia, Certificates of Participation,
Series 1997:
1,075 6.200%, 7/15/12 No Opt. Call N/R 1,164,053
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,472,553
500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102.00 N/R 516,265
Lease Revenue Bonds, Dinwiddie County School Facilities
Project, Series 1997A, 6.000%, 2/01/18
Fairfax County Economic Development Authority, Virginia, Lease
Revenue Bonds, Laurel Hill Public Facilities Project, Series 2003:
2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,437,342
2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,202,606
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 102.00 AA 1,121,840
Parking Revenue Bonds, Vienna II Metrorail Station Project,
First Series 1999, 6.000%, 9/01/18
Greater Richmond Convention Center Authority, Virginia, Hotel
Tax Revenue Bonds, Convention Center Expansion Project, Series 2000:
600 6.125%, 6/15/25 6/10 at 101.00 A- 652,866
2,000 6.125%, 6/15/29 6/10 at 101.00 A- 2,174,000
3,000 Hampton Roads Regional Jail Authority, Virginia, Regional 7/06 at 102.00 AAA 3,146,970
Jail Facility Revenue Bonds, Series 1996A, 5.500%, 7/01/24 -
MBIA Insured
1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,340,880
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 2,001,220
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Refunding Bonds, Series 2002D:
1,000 5.250%, 7/01/27 7/12 at 100.00 A- 1,002,430
1,200 5.250%, 7/01/36 7/12 at 100.00 A- 1,185,624
1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,065,134
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 4.375%, 8/01/20 - AMBAC Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 2,229,400
Loan Notes, Series 1999A, 6.500%, 10/01/24
2,250 Virginia College Building Authority, Educational Facilities 2/09 at 101.00 AA+ 2,467,665
Revenue Bonds, 21st Century College Program,
Series 2000, 6.000%, 2/01/20
2,000 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 2,029,780
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,069,720
1997 Resolution, Series 2000B, 5.000%, 8/01/18
33
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2000B:
$ 1,120 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA $ 1,184,938
3,060 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 3,167,498
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,792,130
Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.7%
1,400 Metropolitan District of Columbia Airports Authority, 10/07 at 101.00 Aa3 1,418,032
Virginia, Airport System Revenue Bonds, Series 1997A,
5.375%, 10/01/23
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 4,007,120
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
530 Pocahontas Parkway Association, Virginia, Route 895 8/08 at 102.00 BB 436,238
Connector Toll Road Senior Lien Revenue Bonds,
Series 1998A, 5.500%, 8/15/28
2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 2,674,300
Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 -
FGIC Insured
6,065 Virginia Port Authority, Revenue Bonds, Port Authority 7/07 at 101.00 AAA 6,200,007
Facilities, Series 1997, 5.600%, 7/01/27 (Alternative
Minimum Tax) - MBIA Insured
2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,052,460
Bonds, Series 2001A, 5.250%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.8%
395 Arlington County Industrial Development Authority, Virginia, 7/05 at 102.00 A*** 420,146
Multifamily Housing Mortgage Revenue Bonds, Arlington
Housing Corporation, Series 1995, 5.700%, 7/01/07
(Pre-refunded to 7/01/05)
1,380 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,484,728
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,230 Middlesex County Industrial Development Authority, Virginia, 8/09 at 102.00 AAA 1,415,004
Lease Revenue Bonds, School Facilities Project, Series 1999,
6.000%, 8/01/24 (Pre-refunded to 8/01/09) - MBIA Insured
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,626,750
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
3,955 Virginia Resources Authority, Water and Sewerage System 10/07 at 100.00 AA*** 4,327,601
Revenue Bonds, Sussex Service Authority, Series 1995A,
5.600%, 10/01/25 (Pre-refunded to 10/01/07)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.4%
Bristol, Virginia, Utility System Revenue Refunding Bonds,
Series 2003:
1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA 1,863,872
1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,948,410
2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,869,378
2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 2,522,875
Virginia, Exempt Facility Revenue Refunding Bonds,
UAE LP Project, Series 2002, 6.500%, 10/15/17
(Alternative Minimum Tax)
3,500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/08 at 101.00 AAA 3,520,335
Series 1998A, 5.125%, 1/15/28 - FGIC Insured
Richmond, Virginia, Public Utility Revenue Refunding Bonds,
Series 2002:
750 5.000%, 1/15/27 - FSA Insured 1/12 at 100.00 AAA 750,615
1,600 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,586,656
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.8%
2,000 Fairfax County, Virginia, Sewer Revenue Bonds, Series 1996, 7/06 at 102.00 AAA 2,145,780
5.875%, 7/15/28 - MBIA Insured
2,000 Fairfax County Water Authority, Virginia, Water Revenue 4/10 at 101.00 AAA 2,099,780
Bonds, Series 2000, 5.625%, 4/01/25
Fairfax County Water Authority, Virginia, Water Revenue
Refunding Bonds, Series 2002:
2,030 5.375%, 4/01/19 4/12 at 100.00 AAA 2,177,886
1,000 5.000%, 4/01/27 4/12 at 100.00 AAA 1,002,510
1,650 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,644,918
Refunding Bonds, Series 1999, 5.000%, 5/01/28
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 6,200 Norfolk, Virginia, Water Revenue Bonds, Series 1995, 11/05 at 102.00 AAA $ 6,604,674
5.875%, 11/01/20 - MBIA Insured
Norfolk, Virginia, Water Revenue Refunding Bonds,
Series 2001:
1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,333,934
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,399,168
1,955 Rivanna Water and Sewerage Authority, Virginia, Regional 10/09 at 101.00 Aa3 2,036,328
Water and Sewerage System Revenue Bonds, Series 1999,
5.625%, 10/01/29
2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,488,157
Series 2000, 6.000%, 9/01/24
500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 542,170
Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 186,185 Total Long-Term Investments (cost $186,262,606) - 146.0% 192,861,729
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 3,060,630
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.3)% (63,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 132,122,359
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
35
Nuveen Virginia Dividend Advantage Municipal Fund (NGB)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4%
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 125 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 121,974
850 5.400%, 5/15/31 5/11 at 100.00 Baa3 745,884
1,400 Guam Economic Development Authority, Tobacco Settlement 5/11 at 100.00 Baa3 1,133,580
Asset-Backed Bonds, Series 2001B, 5.500%, 5/15/41
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.1%
500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 487,945
Educational Facilities Revenue Bonds, Averett University
Project, Series 2001, 6.000%, 3/15/22
500 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 479,945
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
850 Prince William County Park Authority, Virginia, Park Facilities 10/09 at 101.00 A3 885,309
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System
Project, Series 1999:
160 5.375%, 2/01/19 2/09 at 101.00 BBB 161,774
320 5.375%, 2/01/29 2/09 at 101.00 BBB 312,707
420 Rockbridge County Industrial Development Authority, No Opt. Call B2 364,211
Virginia, Horse Center Revenue and Refunding Bonds,
Series 2001B, 6.125%, 7/15/11
1,000 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 883,470
Horse Center Revenue and Refunding Bonds, Series 2001C,
6.850%, 7/15/21
1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,366,526
Revenue Bonds, Public Higher Education Financing Program,
Series 2000A, 5.000%, 9/01/17
500 Virginia College Building Authority, Educational Facilities 7/08 at 101.00 AA 505,845
Revenue Refunding Bonds, Marymount University,
Series 1998, 5.100%, 7/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.1%
1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 1,001,900
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
2,000 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 2,092,720
Hospital Facilities Revenue Refunding Bonds, MediCorp
Health System Obligated Group, Series 1996,
5.250%, 6/15/16 - AMBAC Insured
500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 479,585
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 502,160
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
535 Loudoun County Industrial Development Authority, Virginia, 6/05 at 102.00 AAA 560,022
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 1995, 5.800%, 6/01/26 - FSA Insured
425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB 440,394
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 2002A, 6.000%, 6/01/22
1,000 Lynchburg Industrial Development Authority, Virginia, 1/08 at 101.00 A+ 999,360
Healthcare Facilities Revenue Refunding Bonds, Centra
Health Inc., Series 1998, 5.200%, 1/01/23
675 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 668,513
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
1,000 Norfolk Industrial Development Authority, Virginia, 8/07 at 102.00 AAA 1,006,030
Healthcare Revenue Bonds, Bon Secours Health System,
Series 1997, 5.250%, 8/15/26 - MBIA Insured
800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 828,704
Revenue Refunding and Improvement Bonds, Norton
Community Hospital, Series 2001, 6.000%, 12/01/22 -
ACA Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5%
$ 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA $ 1,009,630
Multifamily Housing Mortgage Revenue Bonds, Arlington
View Terrace Apartments, Series 2001, 5.150%, 11/01/31
(Alternative Minimum Tax) (Mandatory put 11/01/19)
1,000 Virginia Housing Development Authority, Rental Housing 10/10 at 100.00 AA+ 1,030,800
Bonds, Series 2000G, 5.625%, 10/01/20 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2%
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 991,050
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.2%
500 Albemarle County Industrial Development Authority, 1/12 at 100.00 N/R 502,905
Virginia, Residential Care Facility Revenue Bonds,
Westminster Canterbury of the Blue Ridge First Mortgage,
Series 2001, 6.200%, 1/01/31
James City County Industrial Development Authority, Virginia,
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamburg Landing, Inc., Series 2003A:
1,000 6.000%, 3/01/23 3/12 at 101.00 N/R 993,770
400 6.125%, 3/01/32 3/12 at 101.00 N/R 396,264
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5%
25 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba3 22,735
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax)
20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 Ba3 20,149
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1999A, 6.550%, 12/01/25
(Alternative Minimum Tax)
220 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba3 202,310
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.2%
2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,047,700
Improvement Bonds, Series 2001, 5.000%, 1/15/21
3,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,426,611
Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured
1,540 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 Aaa 1,618,063
Improvement Bonds, Series 2001B, 5.250%, 1/01/20
845 Newport News, Virginia, General Obligation Bonds, 1/14 at 101.00 AA 889,472
Series 2004B, 5.000%, 1/15/17
320 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 333,315
Series 2000A, 6.000%, 6/01/20 - ACA Insured
500 Portsmouth, Virginia, General Obligation Bonds, Series 2003, No Opt. Call AAA 545,810
5.000%, 7/01/12 - FSA Insured
1,300 Richmond, Virginia, General Obligation Refunding and Public 1/10 at 101.00 AAA 1,319,838
Improvement Bonds, Series 1999A, 5.125%, 1/15/24 -
FSA Insured
2,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 2,493,167
Bonds, Series 2001, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.2%
330 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 327,093
Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 483,130
Revenue Bonds, Series 2003, 7.500%, 6/01/33
500 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 558,700
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,022,110
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,063,565
Taxes Loan Notes, Series 1999A, 6.375%, 10/01/19
37
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ $ 507,445
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
450 Virginia Transportation Board, Transportation Revenue 5/07 at 101.00 AA+ 462,821
Refunding Bonds, Northern Virginia Transportation District
Program, Series 1997B, 5.125%, 5/15/19
350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 345,167
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,067,520
1997 Resolution, Series 2001A, 5.000%, 8/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.8%
1,750 Capital Region Airport Authority, Richmond, Virginia, Airport 7/05 at 102.00 AAA 1,834,158
Revenue Bonds, International Airport Projects, Series 1995A,
5.625%, 7/01/20 - AMBAC Insured
1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,085,890
General Resolution District Revenue Refunding Bonds,
Series 1998, 5.500%, 7/01/25 - MBIA Insured
3,000 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 3,055,980
System Revenue Bonds, Series 2001A, 5.500%, 10/01/27
(Alternative Minimum Tax) - MBIA Insured
250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 252,445
System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 -
MBIA Insured
1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AAA 1,502,670
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
Pocahontas Parkway Association, Virginia, Route 895 Connector
Toll Road Senior Lien Revenue Bonds, Series 1998A:
25 5.000%, 8/15/05 No Opt. Call BB 25,136
200 5.250%, 8/15/07 No Opt. Call BB 197,926
200 5.500%, 8/15/28 8/08 at 102.00 BB 164,618
500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 534,860
Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 -
FGIC Insured
1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,257,132
Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,226,800
Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.1%
1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102.00 AAA 1,027,490
Series 2001, 5.000%, 7/15/21 - FSA Insured
550 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 591,740
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Newport News, Virginia, General Obligation Bonds, 5/10 at 102.00 AA*** 1,138,610
Series 2000A, 5.625%, 5/01/16 (Pre-refunded to 5/01/10)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,576,050
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,576,050
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.3%
1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- 1,009,150
Virginia, Exempt Facility Revenue Refunding Bonds,
UAE LP Project, Series 2002, 6.500%, 10/15/17 (Alternative
Minimum Tax)
1,725 Puerto Rico Electric Power Authority, Power Revenue 7/05 at 100.00 A- 1,760,725
Refunding Bonds, Series 1995Z, 5.250%, 7/01/21
500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/12 at 100.00 AAA 500,410
Series 2002, 5.000%, 1/15/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.4%
2,000 Fairfax County Water Authority, Virginia, Water Revenue No Opt. Call AAA 2,101,340
Refunding Bonds, Series 1997, 5.000%, 4/01/21
2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,029,140
Refunding Bonds, Series 1999, 5.000%, 5/01/22
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 520 Prince William County Service Authority, Virginia, Water and 7/09 at 101.00 AAA $ 558,672
Sewerage System Revenue Bonds, Series 1999,
5.500%, 7/01/19 - FGIC Insured
1,680 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 1,780,948
Fund Revenue Bonds, Series 2000, 5.400%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 66,255 Total Long-Term Investments (cost $66,631,965) - 150.0% 67,497,638
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.3% 1,490,685
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.3)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 44,988,323
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
39
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
Portfolio of
INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.2%
$ 1,220 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 1,044,027
Asset-Backed Refunding Bonds, Series 2002,
5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.3%
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,022,610
Revenue Bonds, National Wildlife Federation Project,
Series 1999, 5.375%, 9/01/29 - MBIA Insured
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 959,890
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
3,000 Puerto Rico Industrial, Tourist, Educational, Medical, and 12/12 at 101.00 BBB 2,996,610
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University
System Project Refunding, Series 2002, 5.375%, 12/01/21
2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,026,740
Educational Facilities First Mortgage Revenue Bonds,
Shenandoah University, Series 1998, 5.250%, 10/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.5%
1,500 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 1,464,075
Virginia, Hospital Revenue Bonds, Martha Jefferson Hospital,
Series 2002, 5.250%, 10/01/35
1,215 Danville Industrial Development Authority, Virginia, Hospital No Opt. Call AAA 1,290,196
Revenue Bonds, Danville Regional Medical Center,
Series 1998, 5.200%, 10/01/18 - AMBAC Insured
3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,005,700
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 647,440
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,004,320
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,000 Loudoun County Industrial Development Authority, Virginia, 6/05 at 102.00 AAA 1,046,770
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 1995, 5.800%, 6/01/26 - FSA Insured
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
250 6.000%, 6/01/22 6/12 at 101.00 BBB 259,055
600 6.100%, 6/01/32 6/12 at 101.00 BBB 615,150
1,355 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 1,341,978
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
1,000 Medical College Virginia Hospital Authority, General Revenue 7/08 at 102.00 AAA 1,061,020
Bonds, Series 1998, 5.250%, 7/01/14 - MBIA Insured
1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,243,056
Revenue Refunding and Improvement Bonds, Norton
Community Hospital, Series 2001, 6.000%, 12/01/22 -
ACA Insured
1,000 Prince William County Industrial Development Authority, 10/08 at 102.00 Aaa 1,020,620
Virginia, Hospital Facility Revenue Refunding Bonds,
Potomac Hospital Corporation of Prince William, Series 1998,
5.000%, 10/01/18 - FSA Insured
3,915 Roanoke Industrial Development Authority, Virginia, 7/12 at 100.00 AAA 4,138,468
Hospital Revenue Bonds, Carilion Health System,
Series 2002A, 5.500%, 7/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.8%
7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,418,009
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.7%
$ 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R $ 165,959
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31
James City County Industrial Development Authority, Virginia,
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamburg Landing Inc., Series 2003A:
1,500 6.000%, 3/01/23 3/12 at 101.00 N/R 1,490,655
600 6.125%, 3/01/32 3/12 at 101.00 N/R 594,396
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.5%
40 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba3 36,376
Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation, Series 1998,
5.600%, 12/01/25 (Alternative Minimum Tax)
460 Goochland County Industrial Development Authority, 12/08 at 101.00 Ba3 423,011
Virginia, Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation Project, Series 1998,
5.650%, 12/01/25 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.9%
1,750 Chesapeake, Virginia, General Obligation Public Improvement 12/11 at 100.00 AA 1,896,370
Refunding Bonds, Series 2001, 5.500%, 12/01/16
1,000 Fairfax County, Virginia, General Obligation Refunding 6/10 at 101.00 AAA 1,032,970
and Improvement Bonds, Series 2002, 5.000%, 6/01/20
1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 Aaa 1,742,629
Improvement Bonds, Series 2001C, 4.500%, 11/01/17
540 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 564,349
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,840 Newport News, Virginia, General Obligation Bonds, General 7/13 at 100.00 AA 1,893,415
Improvement and Water Projects, Series 2002A,
5.000%, 7/01/20
1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA 1,019,160
Series 2003B, 5.000%, 11/01/22
565 Portsmouth, Virginia, General Obligation Public Utility 6/08 at 100.00 AAA 573,187
Refunding Bonds, Series 2001B, 5.000%, 6/01/21 -
FGIC Insured
1,500 Portsmouth, Virginia, General Obligation Bonds, No Opt. Call AAA 1,637,430
Series 2003, 5.000%, 7/01/12 - FSA Insured
Powhatan County, Virginia, General Obligation Bonds,
Series 2001:
660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 AAA 666,422
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,000,190
Roanoke, Virginia, General Obligation Public Improvement
Bonds, Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,513,880
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,535,371
1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,347,763
Bonds, Series 2002B, 5.000%, 10/01/15 (Alternative
Minimum Tax) - FGIC Insured
Salem, Virginia, General Obligation Public Improvement
Bonds, Series 2002:
1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 1,202,387
1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,255,452
1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,313,311
1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,376,781
1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,114,520
6.250%, 2/01/25 (WI, settling 6/16/04) - AMBAC Insured
1,500 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 1,559,760
Improvement Bonds, Series 2001, 5.000%, 6/01/19
1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AA+ 1,457,545
Public Improvement Bonds, Series 2002, 5.000%, 3/01/21
41
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS May 31, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.0%
$ 611 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R $ 605,617
Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22
1,000 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 1,028,320
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured
1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 966,260
Revenue Bonds, Series 2003, 7.500%, 6/01/33
1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA 1,853,262
Lease Revenue Refunding Bonds, Public Facility Project,
Series 2003, 5.000%, 3/01/19
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 782,180
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 A- 1,503,645
Facilities Revenue Refunding Bonds, Series 2002D,
5.250%, 7/01/27
1,800 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 1,834,236
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,022,110
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,816,653
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
1,000 Virginia College Building Authority, Educational Facilities 8/07 at 101.00 AA+ 1,066,680
Revenue Bonds, 21st Century College Program, Series 1998,
5.000%, 8/01/13
1,710 Virginia Transportation Board, Revenue Bonds, Northern 5/11 at 100.00 AA+ 1,710,462
Virginia Transportation District Program, Series 2001A,
5.000%, 5/15/26
Virginia Transportation Board, Transportation Revenue Bonds,
U.S. Route 58 Corridor Development Program, Series 2001B:
1,705 5.000%, 5/15/22 5/11 at 100.00 AA+ 1,727,472
1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,681,051
690 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 680,471
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
1,710 Virginia Public Building Authority, Public Facilities Revenue 8/08 at 100.00 AAA 1,740,353
Bonds, Series 1999A, 5.000%, 8/01/19 - MBIA Insured
500 Virginia Public Building Authority, Public Facilities Revenue 8/10 at 100.00 AA+ 544,575
Bonds, Series 2000A, 5.750%, 8/01/20
2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,625,750
1997 Resolution, Series 2001B, 5.000%, 8/01/19
1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,255,791
Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.5%
2,500 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 2,707,975
General Resolution District Junior Lien Revenue Refunding
Bonds, Series 2001B, 5.000%, 7/01/09 - FGIC Insured
1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AAA 989,440
System Revenue Bonds, Series 2002A, 5.125%, 10/01/26
(Alternative Minimum Tax) - FGIC Insured
Pocahontas Parkway Association, Virginia, Route 895 Connector
Toll Road Senior Lien Revenue Bonds, Series 1998A:
25 5.000%, 8/15/05 No Opt. Call BB 25,136
300 5.250%, 8/15/07 No Opt. Call BB 296,889
325 5.500%, 8/15/28 8/08 at 102.00 BB 267,504
300 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 316,365
Bonds, Series 2001A, 5.250%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.8%
6,250 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 6,566,875
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.5%
$ 2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 BBB- $ 2,018,300
Virginia, Exempt Facility Revenue Refunding Bonds,
UAE LP Project, Series 2002, 6.500%, 10/15/17
(Alternative Minimum Tax)
3,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 3,192,531
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
1,110 Russell County Industrial Development Authority, Virginia, 11/08 at 101.00 AAA 1,128,237
Pollution Control Revenue Bonds, Appalachian Power
Company, Series 1998H, 5.000%, 11/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.5%
3,800 Fairfax County Water Authority, Virginia, Water Revenue No Opt. Call AAA 3,992,546
Refunding Bonds, Series 1997, 5.000%, 4/01/21
1,500 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,503,765
Refunding Bonds, Series 2002, 5.000%, 4/01/27
Henry County Public Service Authority, Virginia, Water and Sewer
Revenue Refunding Bonds, Series 2001:
1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,107,080
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,322,740
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,170,194
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,223,760
1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,464,718
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,533,860
500 Virginia Beach, Virginia, Water and Sewerage System 8/10 at 100.00 AA 535,080
Revenue Bonds, Series 2000, 5.125%, 8/01/14
2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,221,560
Revenue Bonds, Caroline County Public Improvements
Project, Series 2001, 5.000%, 5/01/32
------------------------------------------------------------------------------------------------------------------------------------
$ 120,996 Total Long-Term Investments (cost $122,120,480) - 147.2% 124,048,466
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 2,199,869
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (42,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 84,248,335
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): 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.
43
Statement of
ASSETS AND LIABILITIES May 31, 2004
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $223,291,162, $88,998,439,
$90,342,700 and $112,983,117, respectively) $226,412,884 $89,930,616 $91,375,083 $111,424,389
Cash -- 479,516 453,012 535,783
Receivables:
Interest 4,202,901 1,630,311 1,529,953 1,623,498
Investments sold 694,753 285,880 10,169 --
Other assets 17,112 8,864 339 4,277
------------------------------------------------------------------------------------------------------------------------------------
Total assets 231,327,650 92,335,187 93,368,556 113,587,947
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 860,319 -- -- --
Payable for investments purchased 83,725 246,250 246,250 162,525
Accrued expenses:
Management fees 125,176 27,212 27,465 31,560
Other 41,529 16,716 24,151 18,238
Preferred share dividends payable 10,104 3,687 6,670 6,606
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,120,853 293,865 304,536 218,929
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000
====================================================================================================================================
Net assets applicable to Common shares $151,106,797 $60,041,322 $61,064,020 $ 74,369,018
====================================================================================================================================
Common shares outstanding 10,584,791 4,162,119 4,170,641 5,359,275
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.28 $ 14.43 $ 14.64 $ 13.88
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 105,848 $ 41,621 $ 41,706 $ 53,593
Paid-in surplus 146,945,125 59,032,938 59,141,539 75,647,829
Undistributed net investment income 1,848,894 621,007 638,104 206,638
Accumulated net realized gain (loss) from investments (914,792) (586,421) 210,288 19,686
Net unrealized appreciation (depreciation) of investments 3,121,722 932,177 1,032,383 (1,558,728)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $151,106,797 $60,041,322 $61,064,020 $ 74,369,018
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
44
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $186,262,606, $66,631,965
and $122,120,480, respectively) $192,861,729 $67,497,638 $124,048,466
Cash -- 377,128 --
Receivables:
Interest 3,086,799 1,078,237 1,719,559
Investments sold 785,000 60,000 1,908,431
Other assets 8,791 9,119 444
------------------------------------------------------------------------------------------------------------------------------------
Total assets 196,742,319 69,022,122 127,676,900
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 671,170 -- 239,446
Payable for investments purchased -- -- 1,117,124
Accrued expenses:
Management fees 106,713 20,395 37,270
Other 35,893 9,955 26,275
Preferred share dividends payable 6,184 3,449 8,450
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 819,960 33,799 1,428,565
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
====================================================================================================================================
Net assets applicable to Common shares $132,122,359 $44,988,323 $ 84,248,335
====================================================================================================================================
Common shares outstanding 8,838,304 3,120,825 5,696,268
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 14.95 $ 14.42 $ 14.79
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 88,383 $ 31,208 $ 56,963
Paid-in surplus 124,233,817 44,236,890 80,836,443
Undistributed net investment income 1,592,552 459,798 695,300
Accumulated net realized gain (loss) from investments (391,516) (605,246) 731,643
Net unrealized appreciation (depreciation) of investments 6,599,123 865,673 1,927,986
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $132,122,359 $44,988,323 $ 84,248,335
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
45
Statement of
OPERATIONS Year Ended May 31, 2004
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 12,057,932 $ 4,702,481 $ 4,504,879 $ 5,221,000
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,508,376 611,082 618,175 752,312
Preferred shares - auction fees 198,505 80,305 80,452 97,872
Preferred shares - dividend disbursing agent fees 20,053 10,028 10,028 10,028
Shareholders' servicing agent fees and expenses 31,843 2,248 1,173 1,022
Custodian's fees and expenses 55,962 24,714 23,404 25,281
Trustees' fees and expenses 5,335 2,083 814 2,667
Professional fees 17,456 11,733 11,933 12,872
Shareholders' reports - printing and mailing expenses 32,784 10,606 12,918 11,940
Stock exchange listing fees 13,732 238 239 679
Investor relations expense 10,194 5,708 8,370 11,071
Other expenses 20,918 11,996 15,591 9,137
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,915,158 770,741 783,097 934,881
Custodian fee credit (13,537) (4,640) (7,487) (7,533)
Expense reimbursement -- (282,038) (285,312) (370,369)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,901,621 484,063 490,298 556,979
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 10,156,311 4,218,418 4,014,581 4,664,021
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,568,621 (29,789) 323,150 419,773
Change in net unrealized appreciation (depreciation)
of investments (10,232,161) (4,437,544) (4,844,253) (5,940,325)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (8,663,540) (4,467,333) (4,521,103) (5,520,552)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (599,393) (223,126) (251,576) (329,706)
From accumulated net realized gains from investments -- -- (7,701) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (599,393) (223,126) (259,277) (329,706)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 893,378 $ (472,041) $ (765,799) $(1,186,237)
====================================================================================================================================
See accompanying notes to financial statements.
46
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $10,234,990 $3,542,601 $ 6,264,332
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,288,717 458,023 839,093
Preferred shares - auction fees 160,109 60,229 105,401
Preferred shares - dividend disbursing agent fees 20,053 10,028 10,028
Shareholders' servicing agent fees and expenses 29,611 1,442 1,681
Custodian's fees and expenses 50,386 17,935 31,064
Trustees' fees and expenses 5,319 1,653 3,253
Professional fees 15,942 6,980 13,394
Shareholders' reports - printing and mailing expenses 24,037 5,804 14,899
Stock exchange listing fees 11,170 210 384
Investor relations expense 10,555 3,352 12,088
Other expenses 15,158 8,046 12,861
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,631,057 573,702 1,044,146
Custodian fee credit (11,554) (4,049) (7,464)
Expense reimbursement -- (211,395) (387,516)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,619,503 358,258 649,166
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 8,615,487 3,184,343 5,615,166
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,376,071 134,876 729,712
Change in net unrealized appreciation (depreciation)
of investments (10,254,013) (3,401,688) (7,681,558)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (8,877,942) (3,266,812) (6,951,846)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (443,213) (168,056) (320,789)
From accumulated net realized gains from investments -- -- (24,663)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (443,213) (168,056) (345,452)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (705,668) $ (250,525) $(1,682,132)
====================================================================================================================================
See accompanying notes to financial statements.
47
Statement of
CHANGES IN NET ASSETS
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
----------------------------- ----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/04 5/31/03 5/31/04 5/31/03 5/31/04 5/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,156,311 $ 10,723,401 $ 4,218,418 $ 4,306,567 $ 4,014,581 $ 4,032,768
Net realized gain (loss) from
investments 1,568,621 2,417,190 (29,789) (444,217) 323,150 176,840
Change in net unrealized
appreciation (depreciation)
of investments (10,232,161) 8,129,891 (4,437,544) 5,349,299 (4,844,253) 6,557,094
Distributions to
Preferred Shareholders:
From net investment income (599,393) (733,384) (223,126) (321,178) (251,576) (356,207)
From accumulated net realized
gains from investments -- -- -- -- (7,701) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 893,378 20,537,098 (472,041) 8,890,471 (765,799) 10,410,495
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,643,203) (9,412,274) (3,881,861) (3,554,454) (3,627,102) (3,375,174)
From accumulated net realized
gains from investments -- -- -- -- (77,957) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (9,643,203) (9,412,274) (3,881,861) (3,554,454) (3,705,059) (3,375,174)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 1,664 -- 3,771 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 441,548 494,984 55,602 45,521 43,133 34,422
Preferred shares offering costs -- -- -- 31,543 (1,870) 50,355
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 441,548 494,984 57,266 77,064 45,034 84,777
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (8,308,277) 11,619,808 (4,296,636) 5,413,081 (4,425,824) 7,120,098
Net assets applicable to Common
shares at the beginning
of period 159,415,074 147,795,266 64,337,958 58,924,877 65,489,844 58,369,746
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $151,106,797 $159,415,074 $60,041,322 $64,337,958 $61,064,020 $65,489,844
====================================================================================================================================
Undistributed net investment
income at the end of period $ 1,848,894 $ 1,942,571 $ 621,007 $ 510,849 $ 638,104 $ 502,516
====================================================================================================================================
See accompanying notes to financial statements.
48
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ----------------------------- ----------------------------
FOR THE
PERIOD 9/25/02
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/04 THROUGH 5/31/03 5/31/04 5/31/03 5/31/04 5/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,664,021 $ 2,781,714 $ 8,615,487 $ 8,810,923 $ 3,184,343 $ 3,176,943
Net realized gain (loss) from
investments 419,773 (400,087) 1,376,071 1,078,214 134,876 (429,332)
Change in net unrealized
appreciation (depreciation)
of investments (5,940,325) 4,381,597 (10,254,013) 9,438,098 (3,401,688) 3,871,254
Distributions to Preferred
Shareholders:
From net investment income (329,706) (245,067) (443,213) (582,520) (168,056) (223,605)
From accumulated net realized
gains from investments -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations (1,186,237) 6,518,157 (705,668) 18,744,715 (250,525) 6,395,260
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,211,017) (2,453,307) (8,044,962) (7,864,088) (2,910,545) (2,683,388)
From accumulated net realized
gains from investments -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,211,017) (2,453,307) (8,044,962) (7,864,088) (2,910,545) (2,683,388)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 76,335,300 -- -- 1,664 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 72,758 105,659 649,807 687,975 46,219 52,795
Preferred shares offering costs (6,570) (906,000) -- -- -- 28,686
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 66,188 75,534,959 649,807 687,975 47,883 81,481
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (5,331,066) 79,599,809 (8,100,823) 11,568,602 (3,113,187) 3,793,353
Net assets applicable to Common
shares at the beginning
of period 79,700,084 100,275 140,223,182 128,654,580 48,101,510 44,308,157
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $74,369,018 79,700,084 $132,122,359 140,223,182 $44,988,323 48,101,510
====================================================================================================================================
Undistributed net investment
income at the end of period $ 206,638 $ 83,340 $ 1,592,552 $ 1,506,057 $ 459,798 $ 354,056
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
CHANGES IN NET ASSETS (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
----------------------------
YEAR ENDED YEAR ENDED
5/31/04 5/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,615,166 $ 5,532,519
Net realized gain (loss) from
investments 729,712 562,801
Change in net unrealized appreciation
(depreciation) of investments (7,681,558) 8,983,926
Distributions to Preferred Shareholders:
From net investment income (320,789) (456,477)
From accumulated net realized gains
from investments (24,663) (21,076)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations (1,682,132) 14,601,693
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,062,594) (4,757,183)
From accumulated net realized gains
from investments (268,662) (145,463)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (5,331,256) (4,902,646)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares 2,456 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 193,934 33,189
Preferred shares offering costs -- 8,152
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 196,390 41,341
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (6,816,998) 9,740,388
Net assets applicable to Common
shares at the beginning of period 91,065,333 81,324,945
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $84,248,335 $91,065,333
====================================================================================================================================
Undistributed net investment
income at the end of period $ 695,300 $ 465,866
====================================================================================================================================
See accompanying notes to financial statements.
50
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen Maryland Premium Income Municipal
Fund (NMY), Nuveen Maryland Dividend Advantage Municipal Fund (NFM), Nuveen
Maryland Dividend Advantage Municipal Fund 2 (NZR), Nuveen Maryland Dividend
Advantage Municipal Fund 3 (NWI), Nuveen Virginia Premium Income Municipal Fund
(NPV), Nuveen Virginia Dividend Advantage Municipal Fund (NGB) and Nuveen
Virginia Dividend Advantage Municipal Fund 2 (NNB). Common shares of Maryland
Premium Income (NMY) and Virginia Premium Income (NPV) are traded on the New
York Stock Exchange while Common shares of Maryland Dividend Advantage (NFM),
Maryland Dividend Advantage 2 (NZR), Maryland Dividend Advantage 3 (NWI),
Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB) are
traded on the American Stock Exchange. The Funds are registered under the
Investment Company Act of 1940, as amended, as closed-end management investment
companies.
Prior to the commencement of operations of Maryland Dividend Advantage 3 (NWI),
the Fund had no operations other than those related to organizational matters,
the initial capital contribution of $100,275 by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and the
recording of the organization expenses ($11,500) and their reimbursement by
Nuveen Investments, LLC, also a wholly owned subsidiary of Nuveen Investments,
Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When price quotes
are not readily available (which is usually the case for municipal securities),
the pricing service establishes fair market value based on yields or prices of
municipal bonds of comparable quality, type of issue, coupon, maturity and
rating, indications of value from securities dealers, evaluations of anticipated
cash flows or collateral and general market conditions. If it is determined that
market prices for a security are unavailable or inappropriate, the Board of
Trustees of the Funds, or its designee, may establish a fair value for the
security. Temporary investments in securities that have variable rate and demand
features qualifying them as short-term securities are valued at amortized cost,
which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At May 31, 2004, Virginia
Dividend Advantage 2 (NNB), had an outstanding when-issued purchase commitment
of $1,117,124. There were no such outstanding purchase commitments in any of the
other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
51
Notes to
FINANCIAL STATEMENTS (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. All monthly tax-exempt income dividends paid
during the fiscal year ended May 31, 2004, have been designated Exempt Interest
Dividends.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------
Number of shares:
Series M -- 1,280 -- --
Series T -- -- -- 1,560
Series W 1,404 -- -- --
Series TH 1,760 -- -- --
Series F -- -- 1,280 --
--------------------------------------------------------------------------------
Total 3,164 1,280 1,280 1,560
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------
Number of shares:
Series M -- -- 1,680
Series T 832 -- --
Series W -- 960 --
Series TH 1,720 -- --
Series F -- -- --
--------------------------------------------------------------------------------
Total 2,552 960 1,680
================================================================================
Effective November 15, 2002, Maryland Dividend Advantage 3 (NWI) issued 1,560
Series T, $25,000 stated value Preferred shares.
52
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 fiscal year ended May 31, 2004.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Maryland Dividend
Advantage 3 (NWI). Maryland Dividend Advantage 3's (NWI) share of Common share
offering costs ($160,200) was recorded as a reduction of the proceeds from the
sale of common shares.
Costs incurred by Maryland Dividend Advantage 3 (NWI) in connection with its
offering of Preferred shares ($912,570) were recorded as a reduction to paid-in
surplus.
Indemnifications
Under the Funds' organizational documents, its Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
----------------------- ----------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/04 5/31/03 5/31/04 5/31/03 5/31/04 5/31/03
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 27,206 30,973 3,448 3,029 2,757 2,564
---------------------------------------------------------------------------------------------------------
27,206 30,973 3,448 3,029 2,757 2,564
=========================================================================================================
Preferred shares sold -- -- -- -- -- --
=========================================================================================================
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ----------------------- -----------------------
FOR THE
PERIOD 9/25/02
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
5/31/04 THROUGH 5/31/03 5/31/04 5/31/03 5/31/04 5/31/03
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 5,340,000 -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 4,992 7,283 37,945 40,954 2,763 3,523
-------------------------------------------------------------------------------------------------------------
4,992 5,347,283 37,945 40,954 2,763 3,523
=============================================================================================================
Preferred shares sold -- 1,560 -- -- -- --
=============================================================================================================
53
Notes to
FINANCIAL STATEMENTS (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------
YEAR ENDED YEAR ENDED
5/31/04 5/31/03
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- --
Shares issued to shareholders
due to reinvestment of
distributions 11,856 2,299
---------------------------------------------------------------------------------------------------------
11,856 2,299
=========================================================================================================
Preferred shares sold -- --
=========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended May 31, 2004, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------
Purchases $43,164,051 $9,416,769 $ 9,950,347 $17,110,586
Sales and maturities 37,456,163 9,167,550 10,329,088 18,319,661
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------
Purchases $28,438,668 $5,349,594 $19,826,889
Sales and maturities 28,106,498 4,940,748 20,579,293
================================================================================
54
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At May 31, 2004, the cost of investments were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------
Cost of investments $223,070,553 $88,986,025 $90,321,835 $112,973,800
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------
Cost of investments $186,065,401 $66,619,184 $122,092,060
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at May 31, 2004, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 6,981,230 $1,660,115 $1,614,600 $ 470,338
Depreciation (3,638,899) (715,524) (561,352) (2,019,749)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $ 3,342,331 $ 944,591 $1,053,248 $(1,549,411)
============================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 7,809,412 $1,560,621 $2,567,666
Depreciation (1,013,084) (682,167) (611,260)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 6,796,328 $ 878,454 $1,956,406
============================================================================================================
The tax components of undistributed net investment income and net realized gains
at May 31, 2004, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,321,516 $939,005 $928,321 $554,960
Undistributed net ordinary income * -- -- 17,253 --
Undistributed net long-term capital gains -- -- 193,076 19,686
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,052,978 $695,451 $1,099,704
Undistributed net ordinary income * 20,262 -- --
Undistributed net long-term capital gains -- -- 731,643
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
55
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscal years ended May 31,
2004 and May 31, 2003, was designated for purposes of the dividends paid
deduction as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2004 (NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,234,475 $4,085,826 $3,868,426 $4,538,274
Distributions from net ordinary income * -- -- -- --
Distributions from net long-term capital gains -- -- 85,658 --
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
2004 (NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $8,481,892 $3,063,648 $5,362,717
Distributions from net ordinary income * -- -- 83,459
Distributions from net long-term capital gains -- -- 209,866
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
2003 (NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,056,404 $3,859,655 $3,704,764 $2,343,187
Distributions from net ordinary income * 38,307 -- -- --
Distributions from net long-term capital gains -- -- -- --
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
2003 (NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $8,413,226 $2,895,125 $5,200,254
Distributions from net ordinary income * -- -- 167,216
Distributions from net long-term capital gains -- -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
56
At May 31, 2004, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
MARYLAND MARYLAND VIRGINIA VIRGINIA
PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE INCOME ADVANTAGE
(NMY) (NFM) (NPV) (NGB)
---------------------------------------------------------------------------------------------------------
Expiration year:
2005 $144,358 $ -- $140,749 $ --
2006 -- -- -- --
2007 -- -- -- --
2008 332,070 -- 250,767 --
2009 317,048 9,875 -- 186,152
2010 -- 37,159 -- 104,197
2011 -- -- -- 32,605
2012 -- 430,282 -- 282,292
---------------------------------------------------------------------------------------------------------
Total $793,476 $477,316 $391,516 $605,246
=========================================================================================================
Maryland Dividend Advantage (NFM) elected to defer net realized losses from
investments incurred from November 1, 2003 through May 31, 2004 ("post-October
losses") in accordance with Federal income tax regulations. The Fund had
$109,105 of post-October losses that were treated as having arisen in the
following fiscal year.
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under Maryland Premium Income's (NMY) and Virginia Premium Income's (NPV)
investment management agreements with the Adviser, each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Maryland Dividend Advantage's (NFM), Maryland Dividend Advantage 2's
(NZR), Maryland Dividend Advantage 3's (NWI), Virginia Dividend Advantage's
(NGB) and Virginia Dividend Advantage 2's (NNB) investment management agreements
with the Adviser, each Fund pays an annual management fee, payable monthly, at
the rates set forth below, which are based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Trustees who are affiliated with the
Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
57
Notes to
FINANCIAL STATEMENTS (continued)
As approved by the Board of Trustees, a complex-wide fee schedule for all Funds
managed by the Adviser and its affiliates will go into effect on August 1, 2004.
The implementation of this complex-wide fee schedule is expected to result in a
marginal immediate decrease in the rate at which management fees are to be paid
by the Funds. As assets in the Nuveen Fund complex grow, the management fee
rates to be paid by the Funds will decrease further. Under no circumstances will
the complex-wide fee schedule result in an increase in the rate at which
management fees would be paid by the Funds if the complex-wide fee schedule were
not implemented.
For the first ten years of Maryland Dividend Advantage's (NFM) and Virginia
Dividend Advantage's (NGB) operations, the Adviser has agreed to reimburse the
Funds, as a percentage of average daily net assets (including net assets
attributable to Preferred shares), for fees and expenses in the amounts and for
the time periods set forth below:
YEAR ENDING YEAR ENDING
JANUARY 31, JANUARY 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage (NFM) and
Virginia Dividend Advantage (NGB) for any portion of its fees and expenses
beyond January 31, 2011.
For the first ten years of Maryland Dividend Advantage 2's (NZR) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for
any portion of its fees and expenses beyond September 30, 2011.
For the first eight years of Maryland Dividend Advantage 3's (NWI) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
58
The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for
any portion of its fees and expenses beyond September 30, 2010.
For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for
any portion of its fees and expenses beyond November 30, 2011.
6. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on July 1, 2004, to shareholders of record on
June 15, 2004, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0785 $.0730 $.0655
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0785 $.0745
================================================================================
59
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- ----------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 $15.10 $ .96 $ (.81) $(.06) $ -- $ .09 $(.91) $ -- $(.91)
2003 14.04 1.02 1.00 (.07) -- 1.95 (.89) -- (.89)
2002 13.83 1.03 .14 (.13) -- 1.04 (.83) -- (.83)
2001 12.83 1.03 1.01 (.25) -- 1.79 (.79) -- (.79)
2000 14.41 1.02 (1.58) (.24) -- (.80) (.78) -- (.78)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 15.47 1.01 (1.07) (.05) -- (.11) (.93) -- (.93)
2003 14.18 1.04 1.18 (.08) -- 2.14 (.86) -- (.86)
2002 13.90 1.04 .22 (.14) -- 1.12 (.84) -- (.84)
2001(a) 14.33 .22 (.25) (.05) -- (.08) (.21) -- (.21)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 15.71 .96 (1.08) (.06) -- (.18) (.87) (.02) (.89)
2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81)
2002(b) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46)
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 14.89 .87 (1.03) (.06) -- (.22) (.79) -- (.79)
2003(c) 14.33 .52 .75 (.05) -- 1.22 (.46) -- (.46)
====================================================================================================================================
Total Returns
--------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==================================================================================
MARYLAND PREMIUM
INCOME (NMY)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 $-- $14.28 $14.4500 (10.77)% .64%
2003 -- 15.10 17.1500 15.22 14.33
2002 -- 14.04 15.7300 4.77 7.71
2001 -- 13.83 15.8500 26.24 14.18
2000 -- 12.83 13.2500 (7.22) (5.57)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 -- 14.43 15.6200 2.99 (.69)
2003 .01 15.47 16.0800 9.98 15.55
2002 -- 14.18 15.4400 1.98 8.21
2001(a) (.14) 13.90 15.9900 8.02 (1.53)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 -- 14.64 14.2800 (2.90) (1.16)
2003 .01 15.71 15.6000 12.71 18.39
2002(b) (.15) 14.01 14.6100 .52 1.01
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 -- 13.88 13.2400 (5.97) (1.51)
2003(c) (.20) 14.89 14.9000 2.53 7.31
==================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------ -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=====================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 $151,107 1.24% 6.54% 1.23% 6.55% 16%
2003 159,415 1.26 7.00 1.25 7.01 16
2002 147,795 1.32 7.33 1.31 7.34 13
2001 145,201 1.31 7.58 1.31 7.58 8
2000 134,299 1.29 7.69 1.28 7.70 13
MARYLAND DIVIDEND
ADVANTAGE (NFM)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 60,041 1.24 6.34 .78 6.80 10
2003 64,338 1.26 6.54 .79 7.01 12
2002 58,925 1.35 6.81 .82 7.34 36
2001(a) 57,740 1.17* 4.33* .75* 4.75* 10
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 61,064 1.24 5.90 .78 6.36 11
2003 65,490 1.26 6.07 .80 6.53 12
2002(b) 58,370 1.22* 5.55* .79* 5.99* 21
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 74,369 1.22 5.59 .73 6.08 15
2003(c) 79,700 1.18* 5.01* .70* 5.50* 13
=====================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===========================================================
MARYLAND PREMIUM
INCOME (NMY)
-----------------------------------------------------------
Year Ended 5/31:
2004 $79,100 $25,000 $72,758
2003 79,100 25,000 75,384
2002 79,100 25,000 71,712
2001 79,100 25,000 70,891
2000 79,100 25,000 67,446
MARYLAND DIVIDEND
ADVANTAGE (NFM)
-----------------------------------------------------------
Year Ended 5/31:
2004 32,000 25,000 71,907
2003 32,000 25,000 75,264
2002 32,000 25,000 71,035
2001(a) 32,000 25,000 70,109
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
-----------------------------------------------------------
Year Ended 5/31:
2004 32,000 25,000 72,706
2003 32,000 25,000 76,164
2002(b) 32,000 25,000 70,601
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
-----------------------------------------------------------
Year Ended 5/31:
2004 39,000 25,000 72,672
2003(c) 39,000 25,000 76,090
===========================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 23, 2001 (commencement of operations) through May
31, 2001.
(b) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(c) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
60-61 SPREAD
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- ----------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 $15.93 $ .97 $ (.99) $(.05) $ -- $ (.07) $(.91) $ -- $(.91)
2003 14.69 1.00 1.21 (.07) -- 2.14 (.90) -- (.90)
2002 14.59 1.04 .03 (.11) -- .96 (.86) -- (.86)
2001 13.36 1.08 1.21 (.25) -- 2.04 (.81) -- (.81)
2000 14.89 1.07 (1.52) (.24) -- (.69) (.84) -- (.84)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 15.43 1.02 (1.05) (.05) -- (.08) (.93) -- (.93)
2003 14.23 1.02 1.10 (.07) -- 2.05 (.86) -- (.86)
2002 13.87 1.02 .32 (.13) -- 1.21 (.85) -- (.85)
2001(a) 14.33 .24 (.28) (.05) -- (.09) (.21) -- (.21)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 16.02 .99 (1.22) (.06) -- (.29) (.89) (.05) (.94)
2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87)
2002(b) 14.33 .41 .09 (.04) -- .46 (.35) -- (.35)
====================================================================================================================================
Total Returns
--------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 $ -- $14.95 $14.9500 (10.70)% (.42)%
2003 -- 15.93 17.6700 15.27 14.99
2002 -- 14.69 16.1700 6.64 6.71
2001 -- 14.59 16.0000 18.45 15.53
2000 -- 13.36 14.2500 (6.02) (4.64)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 -- 14.42 15.0700 (8.11) (.50)
2003 .01 15.43 17.3500 21.45 14.92
2002 -- 14.23 15.0900 5.10 8.89
2001(a) (.16) 13.87 15.1800 2.61 (1.73)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
----------------------------------------------------------------------------------
Year Ended 5/31:
2004 -- 14.79 14.6500 (3.81) (1.84)
2003 -- 16.02 16.1400 14.58 18.51
2002(b) (.13) 14.31 14.9000 1.71 2.30
==================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------ -------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
=======================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 $132,122 1.20% 6.33% 1.19% 6.34% 14%
2003 140,223 1.25 6.61 1.24 6.62 17
2002 128,655 1.28 7.01 1.27 7.02 14
2001 127,145 1.23 7.51 1.21 7.53 7
2000 115,760 1.29 7.72 1.28 7.73 20
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 44,988 1.24 6.39 .77 6.86 7
2003 48,102 1.28 6.45 .81 6.92 10
2002 44,308 1.37 6.68 .84 7.21 21
2001(a) 43,155 1.27* 4.76* .80* 5.23* 20
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2004 84,248 1.20 5.99 .74 6.44 16
2003 91,065 1.21 6.01 .75 6.47 15
2002(b) 81,325 1.14* 5.00* .70* 5.44* 12
=======================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
============================================================
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------
Year Ended 5/31:
2004 $63,800 $25,000 $76,772
2003 63,800 25,000 79,946
2002 63,800 25,000 75,413
2001 63,800 25,000 74,822
2000 63,800 25,000 70,361
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------
Year Ended 5/31:
2004 24,000 25,000 71,863
2003 24,000 25,000 75,106
2002 24,000 25,000 71,154
2001(a) 24,000 25,000 69,953
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
------------------------------------------------------------
Year Ended 5/31:
2004 42,000 25,000 75,148
2003 42,000 25,000 79,206
2002(b) 42,000 25,000 73,408
============================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(b) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
See accompanying notes to financial statements.
62-63 SPREAD
Trustees
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Trustees of the Funds. The number of trustees of the Funds is currently set at
seven. None of the trustees who are not "interested" persons of the Funds has
ever been a director or employee of, or consultant to, Nuveen or its affiliates.
The names and business addresses of the trustees and officers of the Funds,
their principal occupations and other affiliations during the past five years,
the number of portfolios each oversees and other directorships they hold are set
forth below.
NUMBER OF
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) PORTFOLIOS IN
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS OVERSEEN BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 144
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Chairman and Director (since
1997) of Nuveen Asset Management, Inc.; Director (since
1996) of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Trustee 1997 Private Investor and Management Consultant. 144
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Trustee 1993 Retired (1989) as Senior Vice President of The Northern 144
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Trustee 1999 President, The Hall-Perrine Foundation, a private philanthropic 144
10/22/48 corporation (since 1996); Director, Alliant Energy; Director and
333 W. Wacker Drive Vice Chairman, United Fire & Casualty Company; formerly
Chicago, IL 60606 Director, Federal Reserve Bank of Chicago; formerly, President
and Chief Operating Officer, SCI Financial Group, Inc., a
regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Trustee 2004 Dean and Distinguished Professor of Finance, School of 144
3/6/48 Business at the University of Connecticut; previously Senior
333 W. Wacker Drive Vice President and Director of Research at the Federal
Chicago, IL 60606 Reserve Bank of Chicago (1995-2003); Director, Credit
Research Center at Georgetown University; Director of
Xerox Corporation (since 2004).
64
NUMBER OF
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) PORTFOLIOS IN
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS OVERSEEN BY TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Trustee 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 144
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, Miami Valley Hospital; Chair, Dayton
Chicago, IL 60606 Development Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Trustee 1997 Executive Director, Gaylord and Dorothy Donnelley 144
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994)
Chicago, IL 60606
NUMBER OF
POSITION(S) YEAR FIRST PORTFOLIOS IN
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 144
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc. Assistant
Secretary of Nuveen Investments, Inc. (since 1994); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002); Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Managing
Director, Associate General Counsel and Assistant Secretary
of Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice 2000 Vice President (since 2002), formerly, Assistant Vice 144
2/3/66 President President (since 2000), previously, Associate of Nuveen
333 W. Wacker Drive and Investments, LLC.
Chicago, IL 60606 Assistant
Secretary
65
Trustees
AND OFFICERS (CONTINUED)
NUMBER OF
POSITION(S) YEAR FIRST PORTFOLIOS IN
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice 1999 Vice President (since 2002), formerly, Assistant Vice 128
11/10/66 President President (since 1997), of Nuveen Advisory Corp.; prior
333 W. Wacker Drive thereto, portfolio manager of Flagship Financial Inc.;
Chicago, IL 60606 Chartered Financial Analyst and Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice 1999 Vice President of Nuveen Investments, LLC (since 1999), 144
11/28/67 President prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive and President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 Treasurer 1999); Vice President and Treasurer of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp (since 1999); Vice
President and Treasurer of Nuveen Asset Management, Inc.
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice 2000 Vice President (since 2002) and Assistant General Counsel 144
9/24/64 President (since 1998); formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive and of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 Secretary and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice 1998 Managing Director (since 2004) formerly, Vice President of 144
10/24/45 President Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice 1995 Managing Director (since 2002) of Nuveen Investments, 144
3/2/64 President LLC; Managing Director (since 2001), formerly Vice President
333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp. (since 1995); Managing Director of Nuveen Asset
Management, Inc. (since 2001); Vice President of Nuveen
Investment Advisers Inc. (since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice 1998 Vice President (since 1993) and Funds Controller (since 1998) 144
5/31/54 President of Nuveen Investments, LLC and Vice President and Funds
333 W. Wacker Drive and Controller (since 1998) of Nuveen Investments, Inc.;
Chicago, IL 60606 Controller Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice 1988 Vice President of Nuveen Advisory Corp.; Chartered 128
7/5/55 President Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
66
NUMBER OF
POSITION(S) YEAR FIRST PORTFOLIOS IN
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) FUND COMPLEX
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice 1990 Vice President of Nuveen Advisory Corp. 128
8/21/57 President
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice 2000 Vice President (since 2000) of Nuveen Investments, 144
3/22/63 President LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice 2002 Vice President (since 1999), previously, Assistant Vice 144
8/27/61 President President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice 1988 Vice President, Assistant Secretary and Assistant General 144
7/27/51 President Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive and Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Assistant Institutional Advisory Corp.; Assistant Secretary of Nuveen
Secretary Investments, Inc. and (since 1997) Nuveen Asset Management,
Inc.; Vice President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002).
------------------------------------------------------------------------------------------------------------------------------------
John V. Miller Vice 2003 Vice President (since 2003) previously, Assistant Vice President 128
4/10/67 President (since 1999), prior thereto, credit analyst (since 1996) of Nuveen
333 W. Wacker Drive Advisory Corp.; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 144
7/7/65 President Managing Director (since 1997), formerly Vice President
333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management,
Inc. (since 1999). Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Daniel S. Solender Vice 2003 Vice President of Nuveen Advisory Corp. (since 2003); previously, 128
10/27/65 President Principal and portfolio manager with The Vanguard Group
333 W. Wacker Drive (1999-2003); prior thereto, Assistant Vice President of the
Chicago, IL 60606 Nuveen Advisory Corp.; Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice 1982 Vice President of Nuveen Advisory Corp. and Nuveen 128
7/31/51 President Institutional Advisory Corp.; Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2) Trustees serve an indefinite term until his/her successor is elected. The
year first elected or appointed represents the year in which the Trustee
was first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
67
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
68
Fund
INFORMATION
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the fiscal year ended May 31, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
69
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
EAN-A-0504D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
During the reporting period, the registrant's board of directors determined that
the registrant had at least one "audit committee financial expert" (as defined
in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert for the reporting period was William E. Bennett, who
was "independent" for purposes of Item 3 of Form N-CSR.
Although Mr. Bennett served as the audit committee financial expert for part of
reporting period, he unexpectedly resigned from the Board effective April 30,
2004. Since that time, the Audit Committee determined that Jack B. Evans, the
Chairman of the Audit Committee, qualifies as an audit committee financial
expert and recommended to the full Board that he be designated as such. On July
26, 2004, the full Board voted to so designate Mr. Evans.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolo; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for financial
analysis and financial statements for use in making credit and risk decisions
for clients. Mr. Bennett has significant experience reviewing, analyzing and
evaluating financial statements of domestic and international companies in a
variety of industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
FORM N-CSR DISCLOSURE RE: AUDIT FEES
The following table shows the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund during the fiscal year in which the services are
provided; (B) the Fund did not recognize the services as non-audit services at
the time of the engagement; and (C) the services are promptly brought to the
Audit Committee's attention, and the Committee (or its delegate) approves the
services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2004 $ 10,613 $ 0 $ 402 $ 2,450
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2003 $ 9,425 $ 0 $ 358 $ 2,250
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following table shows the amount of fees billed by Ernst & Young LLP to
Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAC ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The table also shows the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2004 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2003 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
May 31, 2004 $ 2,852 $ 0 $ 0 $ 2,852
May 31, 2003 $ 2,608 $ 0 $ 0 $ 2,608
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
NAC would either engage an independent third party to determine how the proxy
should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Maryland Premium Income Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: August 6, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: August 6, 2004
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: August 6, 2004
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* Print the name and title of each signing officer under his or her signature.