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 811-21153
---------------------
Nuveen Maryland Dividend Advantage Municipal Fund 3
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: May 31
------------------
Date of reporting period: November 30, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT November 30, 2005
Nuveen Investments
Municipal
Exchange-Traded
Closed-End Funds
NUVEEN MARYLAND PREMIUM INCOME MUNICIPAL FUND
NMY
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND
NFM
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NZR
NUVEEN MARYLAND DIVIDEND ADVANTAGE MUNICIPAL FUND 3
NWI
NUVEEN VIRGINIA PREMIUM INCOME MUNICIPAL FUND
NPV
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NGB
NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NNB
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
I am pleased to report that over the six-month period covered by this report
your Fund continued to provide you with attractive monthly tax-free income. For
more details about the management strategy and performance of your Fund, please
see the Portfolio Manager's Comments and Performance Overview sections of this
report.
As we enter a new year, many are trying to determine how to best position their
investments to take advantage of the opportunities that may lie ahead. Nobody
knows what the market will do in the future or what investments will turn out to
be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. In fact, a well-diversified portfolio
may actually help to reduce your overall investment risk over the long term.
That is one reason why we believe that a municipal bond investment like your
Fund can be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
As an added convenience for you, I urge you to 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 - see the inside front cover of this
report for instructions.
As we noted in our last shareholder report, The St. Paul Travelers Companies,
Inc., which had owned 79% of Nuveen Investments, Inc. (the parent of your Fund's
investment adviser), had sold a substantial portion of its stake in Nuveen.
Since then, St. Paul has sold the balance of its shares to Nuveen Investments or
to others. Please be assured that these transactions only affected Nuveen's
corporate structure, and they do not have any impact on the investment
objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
January 17, 2006
Nuveen Investments Maryland and Virginia Municipal Exchange-Traded
Closed-End Funds (NMY, NFM, NZR, NWI, NPV, NGB, NNB)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan discusses key investment strategies and the
six-month performance of these seven Nuveen Funds. Paul, who has more than 16
years of investment experience, including 14 with Nuveen, has managed NMY and
NPV since 1999; NFM, NZR, NGB and NNB since 2001; and NWI since 2002.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE SIX-MONTH REPORTING
PERIOD ENDED NOVEMBER 30, 2005?
Over this period, shorter-term interest rates rose faster than longer-term
rates. As a result, bond valuations generally declined and the yield curve
flattened, meaning shorter-term rates approached the levels of longer-term
rates. In this environment, one of our key strategies continued to be careful
duration management. (Duration is a measure of a bond's price sensitivity as
interest rates change, with longer duration bonds displaying more sensitivity to
these changes than bonds with shorter durations.)
To help us maintain the Funds' durations within our preferred range, we
selectively sold holdings with shorter durations, including pre-refunded bonds.
When we sold these shorter duration bonds, we tried to reinvest the proceeds
further out on the yield curve by looking for bonds that mature in 10 to 20
years. We believed that bonds with these maturities generally offered more
attractive opportunities and the best values, and these purchases also helped to
improve the Funds' overall call protection.
During the latter part of this reporting period we also found opportunities to
sell some of our holdings that were purchased at relatively low yields and
replace them with securities offering higher yields that could help to
strengthen the Funds' income streams. While our main focus in redeploying
proceeds was on the 10 to 20 year area of the yield curve, we also kept an
opportunistic eye out for attractively priced longer-term bonds with maturities
between 20 and 30 years.
In NFM, NZR, NWI and NNB, our duration management strategies also included the
use of forward interest rate swaps, a type of derivative financial instrument.
As discussed in our last shareholder report, we began using these swaps in late
2004 in an effort to reduce the interest rate risk in these Funds. These hedges
were not an attempt to profit from correctly predicting the timing and direction
of interest rate movements. Instead, our sole objective was to reduce the
duration (and the resulting price sensitivity) of these Funds without having a
negative impact on their income streams or common share dividends over the short
term. This hedging strategy was effective in achieving the intended goal of
helping to reduce NFM's net asset value (NAV) volatility, and in June 2005, we
removed
4
the hedge from this Fund. The hedges on NZR, NWI and NNB remained in place as of
November 30, 2005. During this reporting period, the hedges had a positive
impact on the performance of these three Funds. As long-term interest rates
rose, the value of the hedges increased while valuations of the Funds' holdings
generally declined.
In addition to duration management, we continued to maintain weightings of bonds
rated BBB or lower. These, lower-rated credits generally performed well during
this period. However, as a result of higher demand, there were fewer
opportunities to purchase additional lower-rated bonds for these Funds at
attractive prices. The majority of our new purchases over this time were rated
AAA or AA, reflecting the overall high credit quality of new issue supply. The
increase in Maryland and Virginia municipal supply during this period helped us
further diversify their portfolios with purchases in the public infrastructure
and educational and healthcare facilities sectors.
HOW DID THE FUNDS PERFORM?
Individual results for these, as well as for relevant indexes and group
averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 11/30/05
MARYLAND FUNDS 6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NMY -0.51% 5.28% 7.91% 6.45%
--------------------------------------------------------------------------------
NFM 0.19% 5.47% NA NA
--------------------------------------------------------------------------------
NZR -0.09% 5.26% NA NA
--------------------------------------------------------------------------------
NWI -0.16% 5.00% NA NA
--------------------------------------------------------------------------------
VIRGINIA FUNDS
--------------------------------------------------------------------------------
NPV -0.56% 4.69% 7.60% 6.77%
--------------------------------------------------------------------------------
NGB 0.20% 6.69% NA NA
--------------------------------------------------------------------------------
NNB -0.08% 5.76% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond
Index1 0.36% 3.88% 5.93% 5.73%
--------------------------------------------------------------------------------
Lipper Other States
Municipal Debt Funds
Average2 -0.17% 5.49% 7.76% 6.43%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 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: 6 months, 43 funds; 1 year, 43 funds; 5 years,
18 funds; and 10 years, 18 funds. Fund and Lipper returns assume
reinvestment of dividends. It should be noted that the performance of the
Lipper Other States category represents the overall average of returns for
funds from 10 different states with a wide variety of municipal market
conditions, making direct comparisons less meaningful.
5
For the six months ended November 30, 2005, the cumulative returns on NAV for
all seven of these Funds underperformed the return on the Lehman Brothers
Municipal Bond Index. However, each of these Funds outperformed the index over
the most recent 12-month period. NFM, NZR, NWI, NGB and NNB outperformed the
average return for the Lipper Other States peer group, while NMY and NPV trailed
this Lipper average. Please keep in mind that the Lipper Other States average
represents the overall average of returns for funds from 10 different states
displaying a variety of economic and municipal market conditions. We believe
that makes direct comparisons between the returns of specific state funds with a
multi-state group average less meaningful.
One of the factors affecting the Funds' six-month performance relative to that
of the unleveraged Lehman Brothers index was the Funds' use of financial
leverage. While leveraging provides opportunities for additional income and
total returns for common shareholders when interest rates fall or remain
consistently low (as has been the case over the past several years), this
benefit is reduced when interest rates rise. With the increase in both
short-term and long-term rates over this six-month period, the decline in value
of the bonds in these Funds' portfolios was exacerbated by the effect of
leveraging. In addition, the extent of the leverage benefit is tied in part to
the short-term rates the Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. When short-term interest rates rise, as they did during
this reporting period, the Funds' borrowing costs also rise, impacting the
Funds' expenses, income streams and total returns. However, we remain convinced
that leveraging is likely to benefit the performance of these Funds over the
long term.
During this reporting period, all of the Funds benefited from their allocations
of lower-quality credits, as bonds rated BBB or lower generally outperformed
higher-rated quality sectors. As of November 30, 2005, the Maryland Funds had
weightings in BBB, sub-investment grade, and non-rated bonds ranging from 15% to
18%. The Virginia Funds had allocations between 10% and 14%. NGB's return, in
particular, was helped by its holding of B2 rated bonds issued for the
Rockbridge County Horse Center. As the fundamentals of this borrower improved,
their securities rose in price.
6
Among other lower-rated credits making contributions to the Funds' cumulative
returns for this period were tobacco bonds backed by the 1998 master tobacco
settlement agreement. Generally, supply/demand dynamics and an improved
litigation environment drove tobacco bond prices higher. As of November 30,
2005, all of these Funds had between 1% and 4% of their portfolios in
unenhanced, uninsured tobacco bonds.
Housing bonds and lower-rated hospital credits also contributed to the Funds'
returns, with the housing and healthcare sectors ranking second and third,
respectively, in terms of performance among the Lehman Brothers municipal
revenue sectors for the period. Housing bonds, particularly those issued for
multifamily housing, were among the best performing credits in the Funds'
portfolios, as rising interest rates lessened the incidence and impact of
prepayments and bond calls on these bonds.
Among the Funds' larger holdings that tended to underperform the general
municipal market in the rising rate environment of this period were certain
older pre-refunded bonds. Non-callable bonds also generally did not perform as
well as callable bonds with comparable maturities. NMY also continued to hold
approximately 1% (par value) of its portfolio in bonds issued by the Puerto Rico
Ports Authority for American Airlines, which did not perform well during this
period due to continued turmoil in the airline industry.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
NOVEMBER 30, 2005?
As of November 30, 2005, all of these Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
68% to 83%. Potential call exposure for the period from December 2005 through
the end of 2007 ranged from zero to 4%, except for NMY which had 17%. NMY
continued to hold most of these callable bonds during the period, in part due to
their performance potential. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
7
Dividend and Share Price
INFORMATION
As noted, all seven of these Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. During periods of
rising short-term interest rates, as was the case during this reporting period,
leveraging expenses increase. As a result, NMY, NZR and NGB had one monthly
common share dividend reduction over the six-month period ended November 30,
2005. The dividends of NFM, NWI, NPV and NNB remained stable throughout this
reporting period. (On December 1, 2005, NMY and NPV announced monthly dividend
reductions.)
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of November 30, 2005, all of
the Funds in this report had positive UNII balances for both financial statement
and tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
11/30/05 6-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NMY -1.30% +4.06%
--------------------------------------------------------------------------------
NFM +0.27% +6.07%
--------------------------------------------------------------------------------
NZR +4.73% +3.55%
--------------------------------------------------------------------------------
NWI -3.19% -1.94%
--------------------------------------------------------------------------------
NPV +5.09% +10.05%
--------------------------------------------------------------------------------
NGB +2.45% +12.75%
--------------------------------------------------------------------------------
NNB +4.65% +8.65%
--------------------------------------------------------------------------------
8
Nuveen Maryland Premium Income Municipal Fund
NMY
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 47%
AA 24%
A 13%
BBB 10%
BB or Lower 4%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.073
Apr 0.073
May 0.073
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.0655
Oct 0.0655
Nov 0.0655
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 16.18
16.02
16.25
16.49
16.45
16.28
16.1
16.17
16.45
16.3
16.53
16.27
16.28
16.45
16.35
16.56
16.4
16.62
16.46
16.37
16.34
16.48
15.98
16.2
16.53
16.38
16.33
16.16
16.2
16
16
15.85
15.97
15.98
16.2
16.17
16.21
16.68
16.25
16.25
16.07
15.88
15.99
16.04
16.05
16.11
16.15
16.35
16.33
16.1
16.05
16.16
16.04
16
16.04
15.96
15.81
16.2
16.49
16.57
16.59
16.27
16.3
16.1
16.15
16.08
16.01
16
16.1
16.2
15.96
16.25
16.25
16.24
16
15.9
15.75
15.6
15.31
14.79
14.64
14.8
15.17
15.3
15.21
15.3
15.36
15.49
15.62
15.5
15.44
15.24
15.18
15.28
15.09
15.19
15.23
15.26
15.13
15.01
15.07
15.16
15.08
15
15
14.98
15.1
15.17
15.22
15.12
15.33
15.55
15.57
15.45
15.57
15.63
15.85
16
16.01
15.91
15.99
15.97
15.8
15.78
15.77
15.78
15.75
15.76
15.8
15.78
15.62
15.63
15.65
15.65
15.78
15.75
15.65
15.57
15.65
15.53
15.69
15.63
15.68
15.72
15.73
15.84
15.84
15.98
16.1
15.99
15.84
15.85
15.69
15.69
15.69
15.64
15.61
15.57
15.63
15.58
15.64
15.58
15.68
15.58
15.59
15.47
15.59
15.59
15.59
15.6
15.62
15.83
16.01
16.12
15.9
16
16
15.95
15.64
15.7
15.83
15.83
15.8
15.81
15.79
15.9
15.91
16
15.81
15.94
16.01
15.86
16.05
16.13
16.1
15.86
15.94
16.05
16.02
15.93
15.93
15.81
15.93
15.78
15.8
15.68
15.5
15.29
15.26
15.28
15.32
15.38
15.4
15.36
15.58
15.54
15.52
15.4
15.46
15.48
15.39
15.21
15.09
15.05
15.08
15
14.95
15.46
15.3
15.18
14.92
14.99
15.01
14.99
15.05
15.1
15.1
14.92
14.95
15.16
14.85
14.94
14.75
14.69
14.67
14.69
14.36
14.49
14.39
14.28
14.25
14.3
14.52
14.43
11/30/05 14.45
FUND SNAPSHOT
------------------------------------
Common Share Price $14.45
------------------------------------
Common Share
Net Asset Value $14.64
------------------------------------
Premium/(Discount) to NAV -1.30%
------------------------------------
Market Yield 5.44%
------------------------------------
Taxable-Equivalent Yield1 7.94%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $155,477
------------------------------------
Average Effective Maturity
on Securities (Years) 15.82
------------------------------------
Leverage-Adjusted Duration 8.39
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -6.01% -0.51%
------------------------------------
1-Year -4.58% 5.28%
------------------------------------
5-Year 6.26% 7.91%
------------------------------------
10-Year 6.85% 6.45%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.0%
------------------------------------
Healthcare 14.7%
------------------------------------
Education and Civic
Organizations 13.2%
------------------------------------
Tax Obligation/Limited 13.1%
------------------------------------
U.S. Guaranteed 11.7%
------------------------------------
Housing/Multifamily 11.7%
------------------------------------
Utilities 6.2%
------------------------------------
Other 6.4%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
9
Nuveen Maryland Dividend Advantage Municipal Fund
NFM
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 45%
AA 23%
A 14%
BBB 12%
BB or Lower 1%
NR 5%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0755
Apr 0.0755
May 0.0755
Jun 0.0715
Jul 0.0715
Aug 0.0715
Sep 0.0715
Oct 0.0715
Nov 0.0715
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 14.96
14.87
15.1
15.13
14.95
15.05
15.05
15.07
15.07
15
15.12
15.21
15.19
15.18
15.35
15.36
15.45
15.55
15.5
15.5
15.75
15.65
15.62
15.78
15.96
16
16.2
16.2
16.2
16.08
15.98
16.2
16.3
16.26
16.26
16.3
16.14
16.1
16.05
16.08
16.09
16.14
16.15
16.15
15.99
16.11
15.93
16.07
16.1
16.14
16.01
16.2
16.13
16.2
16.24
16.12
15.96
16.03
16.05
16
16.16
16.08
16.51
16.4
16.4
16.3
16.3
16.27
16.15
16.17
16.45
16.5
16.22
16.38
16.25
16.1
15.82
15.64
15.6
15.39
15.3
15.55
15.6
15.84
16
16.1
16.1
15.96
15.92
15.87
15.85
15.77
15.65
15.72
15.72
15.97
15.7
15.55
15.52
15.52
15.34
15.38
15.38
15.44
15.44
15.31
15.44
15.5
15.62
15.42
15.32
15.38
15.38
15.56
15.56
15.6
15.7
15.96
15.99
15.73
15.77
15.83
15.85
15.75
15.79
15.63
15.71
15.95
15.96
15.8
15.86
15.87
15.77
15.54
15.51
15.71
15.85
15.57
15.8
15.8
16.07
16.15
16.4
16.29
16.29
16.35
16.3
16.08
16.1
15.79
15.9
15.9
15.85
15.94
15.74
15.85
15.94
16.02
16.1
15.79
15.85
15.78
15.78
15.7
15.75
15.6
15.76
15.81
15.81
15.84
15.72
15.8
15.78
15.72
15.72
15.81
15.92
15.93
16.05
15.95
16.23
16.3
16.4
16.5
16.75
16.69
16.46
16.57
16.5
16.73
16.63
16.6
16.58
16.69
16.8
17.2
16.6
16.6
16.64
16.3
16.3
16.2
16.25
16.35
16.23
15.99
15.84
15.75
15.78
15.66
15.73
15.7
15.61
15.92
15.99
15.9
15.93
15.95
15.99
15.99
15.71
15.6
15.6
15.89
15.75
15.9
15.75
15.75
15.76
15.9
15.8
15.83
15.6
15.58
15.65
15.6
15.65
15.33
15.25
15.53
15.5
15.5
15.41
15.36
15.2
15.06
14.9
14.75
14.7
14.84
14.61
14.74
14.67
14.91
11/30/05 14.77
FUND SNAPSHOT
------------------------------------
Common Share Price $14.77
------------------------------------
Common Share
Net Asset Value $14.73
------------------------------------
Premium/(Discount) to NAV 0.27%
------------------------------------
Market Yield 5.81%
------------------------------------
Taxable-Equivalent Yield1 8.48%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $61,387
------------------------------------
Average Effective Maturity
on Securities (Years) 18.47
------------------------------------
Leverage-Adjusted Duration 7.80
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/23/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -2.91% 0.19%
------------------------------------
1-Year 3.75% 5.47%
------------------------------------
Since
Inception 5.33% 6.65%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 26.5%
------------------------------------
Healthcare 17.0%
------------------------------------
Tax Obligation/Limited 12.4%
------------------------------------
Housing/Multifamily 12.3%
------------------------------------
U.S. Guaranteed 12.2%
------------------------------------
Education and Civic
Organizations 8.7%
------------------------------------
Other 10.9%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
10
Nuveen Maryland Dividend Advantage Municipal Fund 2
NZR
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 50%
AA 26%
A 9%
BBB 10%
BB or Lower 1%
NR 4%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
May 0.073
Jun 0.073
Jul 0.073
Aug 0.073
Sep 0.0695
Oct 0.0695
Nov 0.0695
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 15.25
15.25
15.22
15.32
15.27
15.29
15.38
15.19
15.02
15.14
15.17
15.3
15.3
15.35
15.29
15.1
15.3
15.3
15.6
15.75
15.98
16.09
15.95
16.12
15.9
15.82
15.99
15.96
15.96
15.95
15.75
15.42
15.51
15.35
15.37
15.38
15.31
15.25
15.35
15.41
15.37
15.4
15.45
15.9
15.88
16
15.74
15.83
15.84
15.73
15.65
15.75
15.45
15.35
15.3
15.01
15.01
15.03
15.01
15.01
15.22
15.25
15.31
15.28
15.28
15.24
15.41
15.41
15.07
15.09
14.9
14.94
14.87
15.13
15.12
15.13
15.46
15.06
15.06
15.2
15.1
15.1
15.38
15.6
15.48
15.38
15.65
15.75
15.75
15.74
15.31
15.2
15.35
15.29
15.4
15.25
15.23
14.73
14.89
14.83
14.55
14.67
14.73
14.74
14.74
14.7
14.78
14.84
15.01
15.06
15.18
15.28
15.3
15.22
15.21
15.35
15.35
15.37
15.36
15.52
15.45
15.18
15.26
15.29
15.2
15.41
15.51
15.42
15.55
15.5
15.47
15.6
15.46
15.41
15.3
15.43
15.38
15.53
15.87
15.52
15.53
15.73
15.94
15.93
16.11
15.8
15.98
15.89
16.39
16.6
16.45
16
15.93
15.96
16.07
16.23
15.88
16.04
15.96
16.19
16.1
16.23
16.02
15.76
15.54
15.68
15.69
15.61
15.61
15.47
15.4
15.35
15.49
15.5
15.64
15.75
15.86
15.8
15.85
15.88
16.2
16.17
16.17
15.85
15.86
15.85
15.93
15.77
15.8
16.18
16.14
16.14
16
15.96
16.07
16.13
16.05
16
16.07
15.79
15.99
15.99
15.8
16.11
16.19
16.3
16.11
16
15.95
16.09
15.91
15.93
15.9
15.98
16.05
16.05
16
16.12
15.93
15.89
15.7
15.78
15.65
15.59
15.6
15.3
15.23
15.55
15.45
15.35
15.08
15.3
15.46
15.55
15.49
15.54
15.65
15.8
15.8
16
16.1
16.1
15.95
15.9
15.7
15.78
15.51
15.6
15.47
15.45
15.4
15.4
15.49
15.32
11/30/05 15.72
FUND SNAPSHOT
------------------------------------
Common Share Price $15.72
------------------------------------
Common Share
Net Asset Value $15.01
------------------------------------
Premium/(Discount) to NAV 4.73%
------------------------------------
Market Yield 5.31%
------------------------------------
Taxable-Equivalent Yield1 7.75%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $62,707
------------------------------------
Average Effective Maturity
on Securities (Years) 16.95
------------------------------------
Leverage-Adjusted Duration 8.05
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 4.80% -0.09%
------------------------------------
1-Year 10.08% 5.26%
------------------------------------
Since
Inception 6.91% 6.96%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 27.9%
------------------------------------
U.S. Guaranteed 15.1%
------------------------------------
Healthcare 14.2%
------------------------------------
Tax Obligation/Limited 12.7%
------------------------------------
Education and Civic
Organizations 10.5%
------------------------------------
Housing/Multifamily 9.2%
------------------------------------
Other 10.4%
------------------------------------
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%. When comparing this Fund to 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 2004 of $0.0616 per share.
11
Nuveen Maryland Dividend Advantage Municipal Fund 3
NWI
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 39%
AA 37%
A 7%
BBB 12%
BB or Lower 1%
NR 4%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0655
Jan 0.0655
Feb 0.0655
Mar 0.0625
Apr 0.0625
May 0.0625
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.0595
Oct 0.0595
Nov 0.0595
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 13.55
13.47
13.55
13.55
13.8
13.68
13.68
13.85
13.72
13.61
13.6
13.69
13.41
13.5
13.57
13.66
13.67
13.4
13.58
13.46
13.71
13.66
14
14.18
14.28
14.42
14.52
14.4
14.33
14.28
14.2
14.3
14.28
14.15
13.87
14.2
14.2
14.05
14.15
14.2
14.2
14.29
14.63
14.65
14.62
14.71
14.55
14.54
14.51
14.47
14.42
14.6
14.6
14.5
14.5
14.17
14.19
14.65
14.5
14.6
14.59
14.65
14.7
14.6
14.57
14.55
14.57
14.22
14.25
14.16
14.55
14.37
13.99
13.76
13.8
13.75
13.93
13.71
13.93
13.72
13.89
13.78
13.98
14.15
14.03
14.14
14.15
14.2
14.2
14.02
14.13
14.18
14.1
13.94
14.21
14.06
14.04
14.04
13.84
13.89
13.81
14.19
14.16
14.06
14.06
14.13
14.07
14.13
14.35
14.14
14.35
14.21
14.5
14.4
14.4
14.55
14.7
14.65
14.5
14.45
14.25
14.53
14.37
14.43
14.36
14.4
14.38
14.47
14.54
14.2
14.31
14.2
14.26
14.23
14.16
14.08
14.14
14.25
14.41
14.45
14.42
14.48
14.69
14.61
14.55
14.55
14.65
14.56
14.67
14.76
14.5
14.66
14.63
14.51
14.53
14.4
14.27
14.35
14.11
14.03
14.02
14.1
14.15
14.44
14.36
14.4
14.39
14.45
14.45
14.5
14.4
14.5
14.49
14.41
14.32
14.55
14.32
14.27
14.54
14.46
14.55
14.42
14.29
14.55
14.31
14.36
14.57
14.67
14.8
14.59
14.52
14.52
14.5
14.49
14.48
14.55
14.56
14.55
14.54
14.67
14.49
14.4
14.12
14.3
14.53
14.75
14.81
14.82
14.68
14.64
14.63
14.37
14.66
14.66
14.62
14.62
14.55
14.5
14.44
14.41
14.24
14.17
14.1
14.19
14.12
14.04
14.01
14.12
14.25
14.31
14.35
14.1
14.1
14.27
14.41
14.4
14.04
14.26
14.32
14.48
14.14
14
14.01
14
14.29
14.07
14.3
14.1
14.1
14.06
13.97
14
14.04
14.09
11/30/05 13.98
FUND SNAPSHOT
------------------------------------
Common Share Price $13.98
------------------------------------
Common Share
Net Asset Value $14.44
------------------------------------
Premium/(Discount) to NAV -3.19%
------------------------------------
Market Yield 5.11%
------------------------------------
Taxable-Equivalent Yield1 7.46%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $77,409
------------------------------------
Average Effective Maturity
on Securities (Years) 17.58
------------------------------------
Leverage-Adjusted Duration 8.27
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -0.49% -0.16%
------------------------------------
1-Year 8.36% 5.00%
------------------------------------
Since
Inception 3.13% 5.59%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.4%
------------------------------------
Tax Obligation/General 21.5%
------------------------------------
U.S. Guaranteed 13.6%
------------------------------------
Healthcare 12.0%
------------------------------------
Housing/Multifamily 9.6%
------------------------------------
Education and Civic
Organizations 8.3%
------------------------------------
Other 12.6%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0076 per share.
12
Nuveen Virginia Premium Income Municipal Fund
NPV
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 52%
AA 31%
A 7%
BBB 6%
BB or Lower 1%
NR 3%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.073
Apr 0.073
May 0.073
Jun 0.069
Jul 0.069
Aug 0.069
Sep 0.069
Oct 0.069
Nov 0.069
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 17.52
17.5
17.5
17.69
17.82
17.72
17.68
17.99
17.9
17.95
17.81
17.5
17.7
17.92
17.89
17.78
17.7
17.4
17.32
17.7
17.42
17.57
17.75
17.65
17.7
17.73
17.67
17.72
17.75
17.81
17.53
17.6
17.9
17.91
17.75
17.65
17.61
17.55
17.5
17.51
17.42
17.55
17.8
17.75
17.78
17.9
18.2
17.9
18.01
17.85
18
18.37
17.92
17.82
17.65
17.55
17.67
17.39
17.58
17.56
17.62
17.55
17.7
17.77
17.64
17.64
17.58
17.51
17.73
17.83
17.52
17.64
17.53
17.25
17.23
17.15
17.15
16.76
16.6
16.6
16.75
16.6
16.57
16.5
16.32
16.5
16.5
16.54
16.55
16.46
16.5
16.55
16.5
16.37
16.55
16.65
16.5
16.49
16.51
16.52
16.32
16.52
16.45
16.51
16.51
16.62
16.66
16.7
16.96
16.79
16.56
16.97
17.15
17.18
17.18
17.32
17.54
17.63
17.77
17.76
17.76
18
17.45
17.29
17.4
17.65
17.68
17.88
18
18.02
18.02
18.03
18.07
18.07
17.95
17.95
17.81
17.4
17.39
17.28
17.4
17.47
17.33
17.34
17.44
17.39
17.4
17.51
17.91
17.85
17.87
17.69
17.95
18.1
17.91
17.45
17.3
17.12
17.13
17.02
17.06
16.85
16.75
16.72
16.8
16.78
16.94
17.09
17.09
16.95
16.92
16.81
16.87
16.93
16.94
16.92
16.96
16.78
16.86
16.85
16.89
16.59
16.75
16.66
16.65
16.7
16.85
16.94
17.19
17.49
17.23
17.29
17.22
17.44
17.4
17.26
17.56
17.42
17.53
17.49
17.53
17.57
17.5
17.35
17.3
17.2
17.05
16.79
16.63
16.62
16.98
17
17.1
17.45
17.35
17.52
17.55
17.7
17.55
17.9
17.88
17.6
17.6
17.58
17.7
17.53
17.07
17.18
17.09
17.25
17
17.12
17.1
16.98
16.95
16.65
16.99
16.8
16.96
16.82
16.82
16.73
16.85
16.65
16.5
16.43
16.47
16.45
16.14
16.1
16
16.12
16.11
16.19
11/30/05 16.1
FUND SNAPSHOT
------------------------------------
Common Share Price $16.10
------------------------------------
Common Share
Net Asset Value $15.32
------------------------------------
Premium/(Discount) to NAV 5.09%
------------------------------------
Market Yield 5.14%
------------------------------------
Taxable-Equivalent Yield1 7.56%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $136,113
------------------------------------
Average Effective Maturity
on Securities (Years) 15.81
------------------------------------
Leverage-Adjusted Duration 8.31
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -6.55% -0.56%
------------------------------------
1-Year -4.10% 4.69%
------------------------------------
5-Year 7.75% 7.60%
------------------------------------
10-Year 7.62% 6.77%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.7%
------------------------------------
Tax Obligation/General 18.5%
------------------------------------
Healthcare 11.7%
------------------------------------
U.S. Guaranteed 9.4%
------------------------------------
Transportation 8.4%
------------------------------------
Utilities 8.0%
------------------------------------
Education and Civic
Organizations 6.7%
------------------------------------
Water and Sewer 5.7%
------------------------------------
Other 8.9%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
13
Nuveen Virginia Dividend Advantage Municipal Fund
NGB
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 50%
AA 28%
A 8%
BBB 5%
BB or Lower 4%
NR 5%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0755
Apr 0.0755
May 0.0755
Jun 0.0755
Jul 0.0755
Aug 0.0755
Sep 0.072
Oct 0.072
Nov 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 17.34
17.06
17.1
16.95
17.1
17.26
17.56
17.64
17.43
17.49
17.25
17.26
17.26
17.15
17.15
17.15
17.19
17.27
17.21
17.15
17.99
17.83
17.75
17.9
17.84
17.85
18
17.67
17.51
17.17
16.97
17.1
17.2
18.15
18.1
18
18.01
17.75
17.47
17.55
17.5
17.48
17.4
17.42
17.4
17.59
18.15
18.14
17.94
17.9
18.2
18.1
18
17.93
17.75
17.7
17.25
17.22
17.25
17.45
17.66
17.58
17.32
17.32
17.8
18.1
18
17.92
17.87
17.87
17.74
17.21
17.21
17
17.36
17.59
17.85
17.5
17.4
17.55
17.56
17.56
17.56
17.48
17.53
17.4
17.39
17.43
17.43
17.36
17.5
17.5
17.39
17.2
17.2
17.11
17.04
17.15
17.15
17.35
17.12
17.05
17.05
16.88
16.88
16.96
16.86
16.86
17.34
17.34
17.44
17.43
17.51
17.44
17.35
17.37
17.37
17.37
17.37
17.42
18
17.59
17.29
17.4
17.2
16.99
17.05
17.15
17.25
17.2
17.15
17.2
17.2
17
17.01
17.1
17.18
17.18
17.3
17.24
17.15
17.47
17.47
17.47
17.4
17.36
17.35
17.22
17.34
17.94
17.6
17.72
17.93
17.98
17.98
17.89
17.99
17.99
18.13
18.2
18.2
18.06
18.51
18.42
18.4
18.6
18.76
18.8
18.8
19
18.98
18.85
18.56
18.72
18.82
18.93
18.7
17.77
17.8
17.31
17.51
17.6
17.63
17.63
17.71
17.57
17.53
17.83
18.05
18
18.05
18.15
18.2
18.25
18.25
18.17
18.41
18.41
18.41
18.41
18.38
18.09
18
17.72
17.69
17.67
17.47
17.46
17.31
17.31
17.25
17.25
17.61
17.77
17.85
17.55
17.55
17.55
17.64
17.32
17.23
17.34
17.34
17.4
17.22
17.37
16.62
16.75
16.79
16.75
16.71
16.51
16.45
16.3
16.41
16.29
16.25
16.04
15.81
15.6
15.86
15.33
15.4
15.36
15.4
15.68
15.33
15.34
15.41
15.1
15.15
15.15
15.24
15.35
11/30/05 15.48
FUND SNAPSHOT
------------------------------------
Common Share Price $15.48
------------------------------------
Common Share
Net Asset Value $15.11
------------------------------------
Premium/(Discount) to NAV 2.45%
------------------------------------
Market Yield 5.58%
------------------------------------
Taxable-Equivalent Yield1 8.21%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $47,222
------------------------------------
Average Effective Maturity
on Securities (Years) 15.76
------------------------------------
Leverage-Adjusted Duration 8.11
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -6.53% 0.20%
------------------------------------
1-Year -6.02% 6.69%
------------------------------------
Since
Inception 6.23% 7.24%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 20.8%
------------------------------------
Tax Obligation/Limited 15.4%
------------------------------------
Transportation 15.2%
------------------------------------
U.S. Guaranteed 15.0%
------------------------------------
Education and Civic
Organizations 9.4%
------------------------------------
Healthcare 7.2%
------------------------------------
Consumer Staples 3.2%
------------------------------------
Other 13.8%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
14
Nuveen Virginia Dividend Advantage Municipal Fund 2
NNB
Performance
OVERVIEW As of November 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 48%
AA 34%
A 7%
BBB 5%
BB or Lower 2%
NR 4%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Dec 0.0745
Jan 0.0745
Feb 0.0745
Mar 0.0715
Apr 0.0715
May 0.0715
Jun 0.0715
Jul 0.0715
Aug 0.0715
Sep 0.0715
Oct 0.0715
Nov 0.0715
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
12/1/04 15.8
15.77
16
16.03
16.12
16.45
16.44
16.43
16.03
16.25
16.28
16.28
16.45
16.5
16.55
16.7
16.7
16.85
17.04
17.24
17.03
17.14
17.01
17.25
17.1
17
16.57
16.53
16.65
16.61
16.32
16.55
16.8
17
17
16.92
16.75
16.35
16.36
16.44
16.44
16.44
16.47
16.65
16.54
16.71
16.93
16.8
16.79
17
17.3
17.1
16.7
16.69
16.73
16.5
16.6
16.31
16.36
16.34
16.6
17.03
16.8
16.7
16.7
17
17.1
17.08
16.72
16.64
16.39
16.15
16.04
16.09
16.2
16.11
15.86
16
15.8
15.9
16.01
15.88
16.11
16.45
16.47
16.35
16
16
16.06
16.4
16.3
16.16
16.05
15.93
16.25
16.4
16.28
16.35
16.39
16.4
16.15
16.5
16.74
16.75
16.75
16.9
16.89
16.89
16.72
16.79
16.88
16.83
16.7
16.43
16.42
16.8
16.64
16.6
16.65
16.65
16.85
16.8
16.65
16.87
16.74
16.74
16.96
16.59
16.64
16.65
16.63
16.7
16.66
16.6
16.71
16.69
16.89
16.85
16.78
16.82
16.81
17
16.99
17
17.03
17
17.3
17.4
16.95
17.11
17.32
17.15
17.2
17.3
17.16
17.2
17.15
17.2
17.2
17.15
17.08
17.11
17.2
17.25
17.39
17.38
17.2
17.28
17.28
17.32
17.11
16.84
16.95
17.17
17.31
17.31
17.36
17.15
17.2
17.4
17.6
17.3
17.32
17.2
17.1
17.11
17.12
17.15
17.32
17.49
17.21
17.13
17.22
17.38
17.5
17.5
17.45
17.44
17.19
17.14
17.14
16.95
16.97
17
16.75
16.8
16.65
16.2
16.25
16.3
16.67
17
17.2
17.08
17.07
17.07
17.09
16.98
16.84
17
16.8
16.77
16.71
16.81
16.51
16.4
16.5
16.63
16.65
16.6
16.65
16.45
16.65
16.52
16.58
16.6
16.63
16.63
16.55
16.3
16.3
16.17
16.22
16.19
15.95
15.95
15.88
15.96
16
15.95
15.89
15.89
15.95
15.97
11/30/05 15.97
FUND SNAPSHOT
------------------------------------
Common Share Price $15.97
------------------------------------
Common Share
Net Asset Value $15.26
------------------------------------
Premium/(Discount) to NAV 4.65%
------------------------------------
Market Yield 5.37%
------------------------------------
Taxable-Equivalent Yield1 7.90%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $87,169
------------------------------------
Average Effective Maturity
on Securities (Years) 16.88
------------------------------------
Leverage-Adjusted Duration 8.24
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -2.14% -0.08%
------------------------------------
1-Year 7.85% 5.76%
------------------------------------
Since
Inception 7.46% 7.75%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 26.5%
------------------------------------
Tax Obligation/Limited 18.1%
------------------------------------
Healthcare 11.9%
------------------------------------
Water and Sewer 10.4%
------------------------------------
U.S. Guaranteed 8.3%
------------------------------------
Housing/Single Family 6.1%
------------------------------------
Education and Civic
Organizations 6.0%
------------------------------------
Other 12.7%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.1878 per share.
15
Shareholder
MEETING REPORT
Approval of the new investment management agreement was the proposal voted upon
at the July 26, 2005 shareholder meeting held at The Northern Trust Bank.
Approval of the Board Members was the proposal voted upon at the November 15,
2005 shareholder meeting held at the offices of Nuveen Investments.
NMY NFM NZR
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together together together
as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 9,902,065 3,936,993 4,053,632
Against 102,803 54,099 44,514
Abstain 108,945 40,341 43,726
------------------------------------------------------------------------------------------------------------------------------------
Total 10,113,813 4,031,433 4,141,872
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 9,954,427 -- 3,985,338 -- 4,062,754 --
Withhold 72,622 -- 35,446 -- 66,868 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
Lawrence H. Brown
For 9,955,477 -- 3,982,388 -- 4,057,496 --
Withhold 71,572 -- 38,396 -- 72,126 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
Jack B. Evans
For 9,954,291 -- 3,985,738 -- 4,066,653 --
Withhold 72,758 -- 35,046 -- 62,969 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
William C. Hunter
For 9,955,477 -- 3,985,738 -- 4,067,253 --
Withhold 71,572 -- 35,046 -- 62,369 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
David J. Kundert
For 9,955,477 -- 3,985,738 -- 4,066,953 --
Withhold 71,572 -- 35,046 -- 62,669 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
William J. Schneider
For -- 3,051 -- 1,210 -- 1,263
Withhold -- 2 -- 6 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,053 -- 1,216 -- 1,263
====================================================================================================================================
Timothy R. Schwertfeger
For -- 3,051 -- 1,210 -- 1,263
Withhold -- 2 -- 6 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,053 -- 1,216 -- 1,263
====================================================================================================================================
Judith M. Stockdale
For 9,949,441 -- 3,984,621 -- 4,063,353 --
Withhold 77,608 -- 36,163 -- 66,269 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
Eugene S. Sunshine
For 9,948,285 -- 3,985,738 -- 4,066,853 --
Withhold 78,764 -- 35,046 -- 62,769 --
------------------------------------------------------------------------------------------------------------------------------------
Total 10,027,049 -- 4,020,784 -- 4,129,622 --
====================================================================================================================================
16
NWI NPV NGB
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together together together
as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 5,250,246 8,207,985 3,036,353
Against 31,607 72,829 31,828
Abstain 45,160 76,077 21,285
------------------------------------------------------------------------------------------------------------------------------------
Total 5,327,013 8,356,891 3,089,466
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 5,268,877 -- 8,273,602 -- 3,042,550 --
Withhold 31,934 -- 73,234 -- 32,381 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
Lawrence H. Brown
For 5,269,258 -- 8,266,606 -- 3,039,884 --
Withhold 31,553 -- 80,230 -- 35,047 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
Jack B. Evans
For 5,272,214 -- 8,272,035 -- 3,042,561 --
Withhold 28,597 -- 74,801 -- 32,370 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
William C. Hunter
For 5,273,714 -- 8,272,488 -- 3,040,767 --
Withhold 27,097 -- 74,348 -- 34,164 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
David J. Kundert
For 5,273,714 -- 8,270,625 -- 3,042,550 --
Withhold 27,097 -- 76,211 -- 32,381 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
William J. Schneider
For -- 1,523 -- 2,211 -- 837
Withhold -- -- -- 6 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,523 -- 2,217 -- 839
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,523 -- 2,211 -- 837
Withhold -- -- -- 6 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,523 -- 2,217 -- 839
====================================================================================================================================
Judith M. Stockdale
For 5,270,914 -- 8,268,876 -- 3,040,767 --
Withhold 29,897 -- 77,960 -- 34,164 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
Eugene S. Sunshine
For 5,272,214 -- 8,268,128 -- 3,040,767 --
Withhold 28,597 -- 78,708 -- 34,164 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,300,811 -- 8,346,836 -- 3,074,931 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NNB
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT MANAGEMENT
AGREEMENT WAS REACHED AS FOLLOWS:
Common and
MuniPreferred
shares voting
together
as a class
------------------------------------------------------------------------------------------------------------------------------------
For 5,547,715
Against 28,297
Abstain 47,318
------------------------------------------------------------------------------------------------------------------------------------
Total 5,623,330
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 5,590,811 --
Withhold 41,225 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
====================================================================================================================================
Lawrence H. Brown
For 5,592,411 --
Withhold 39,625 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans
For 5,588,411 --
Withhold 43,625 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
====================================================================================================================================
William C. Hunter
For 5,592,411 --
Withhold 39,625 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
====================================================================================================================================
David J. Kundert
For 5,590,241 --
Withhold 41,795 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
====================================================================================================================================
William J. Schneider
For -- 1,642
Withhold -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,655
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,642
Withhold -- 13
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,655
====================================================================================================================================
Judith M. Stockdale
For 5,592,411 --
Withhold 39,625 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
====================================================================================================================================
Eugene S. Sunshine
For 5,592,411 --
Withhold 39,625 --
------------------------------------------------------------------------------------------------------------------------------------
Total 5,632,036 --
====================================================================================================================================
18
Nuveen Maryland Premium Income Municipal Fund (NMY)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0% (1.4% OF TOTAL INVESTMENTS)
$ 3,135 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 3,177,385
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.7% (13.2% OF TOTAL INVESTMENTS)
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
200 5.750%, 9/01/25 3/10 at 101.00 BBB- 207,584
200 5.800%, 9/01/30 3/10 at 101.00 BBB- 207,108
1,000 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 1,036,460
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa3 1,050,080
Housing Revenue Bonds, Collegiate Housing Foundation -
Salisbury State University, Series 1999A, 6.000%, 6/01/19
Maryland Economic Development Corporation, Utility
Infrastructure Revenue Bonds, University of Maryland - College
Park, Series 2001:
1,000 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 AAA 1,081,700
1,000 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 AAA 1,079,870
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 798,150
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 530,490
1,500 Maryland Health and Higher Educational Facilities Authority, 7/07 at 102.00 AA 1,573,410
Revenue Refunding Bonds, Johns Hopkins University,
Series 1997, 5.625%, 7/01/27
1,460 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,524,459
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.625%, 6/01/36
1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,275,175
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
9,445 Morgan State University, Maryland, Student Tuition and Fee No Opt. Call AAA 11,330,789
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 6,019,038
2,680 5.000%, 4/01/19 4/13 at 100.00 AA 2,845,302
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.9% (14.7% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,100,100
Revenue Bonds, Kaiser Permanente System, Series 1998A,
5.375%, 7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,040,140
Revenue Bonds, Johns Hopkins Hospital, Howard County
General Hospital Acquisition, Series 1998, 5.000%, 7/01/19 -
MBIA Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,515,585
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+ 1,633,635
Revenue Bonds, University of Maryland Medical System,
Series 2002, 6.000%, 7/01/22
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 3,396,250
Revenue Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,422,610
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 3,417,505
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
19
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 $ 3,898,040
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 1,052,210
Revenue Bonds, University of Maryland Medical System,
Series 2004B, 5.000%, 7/01/24 - AMBAC Insured
1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 1,826,493
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,540 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 1,571,016
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,602,058
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,682,066
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
3,080 5.375%, 7/01/14 1/06 at 101.00 B3 2,768,212
6,000 5.300%, 7/01/24 1/06 at 101.00 B3 4,969,800
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 17.4% (11.7% OF TOTAL INVESTMENTS)
Howard County, Maryland, FHA-Insured Mortgage Revenue
Refunding Bonds, Normandy Woods III Apartments, Series 1996A:
700 6.000%, 7/01/17 7/06 at 102.00 AAA 719,117
2,000 6.100%, 7/01/25 7/06 at 102.00 AAA 2,053,580
2,500 Maryland Community Development Administration, Housing 1/09 at 101.00 Aa2 2,538,750
Revenue Bonds, Series 1999A, 5.350%, 7/01/41 (Alternative
Minimum Tax)
880 Maryland Community Development Administration, Housing 1/10 at 100.00 Aa2 919,327
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 1,531,084
Multifamily Development Revenue Bonds, Edgewater Village
Apartments, Series 2000B, 5.800%, 8/01/20 (Alternative
Minimum Tax)
2,250 Maryland Economic Development Corporation, Student 6/09 at 102.00 Baa2 2,329,763
Housing Revenue Bonds, Collegiate Housing Foundation -
College Park, Series 1999A, 5.750%, 6/01/24
1,000 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,059,310
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
2,000 Montgomery County Housing Opportunities Commission, 1/06 at 102.00 Aa2 2,042,380
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 1,539,705
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 3,896,336
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 2,085,740
Maryland, Multifamily Housing Development Bonds,
Series 2000A, 6.100%, 7/01/30
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 2,042,060
1,670 5.750%, 12/20/19 12/05 at 102.00 AAA 1,704,836
935 Prince George's County Housing Authority, Maryland, 5/06 at 100.00 AAA 935,645
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, 9/09 at 102.00 AAA 567,292
GNMA 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 12/05 at 101.00 AAA 1,011,230
Refunding Bonds, College Lane Apartments, Series 1995A,
6.600%, 12/01/26
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
$ 45 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA $ 46,773
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage
Revenue Bonds, Series 2000A, 6.150%, 8/01/19
(Alternative Minimum Tax)
330 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 331,709
Securities Program Home Mortgage Revenue Bonds,
Series 2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8% (1.1% OF TOTAL INVESTMENTS)
1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/09 at 101.00 AA 1,054,210
EMA Obligated Group, Series 1999A, 5.625%, 1/01/25 -
RAAI Insured
1,695 Maryland Economic Development Corporation, Health and 4/11 at 102.00 N/R 1,803,700
Mental Hygiene Providers Revenue Bonds, Series 1996A,
7.625%, 4/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.2% (23.0% OF TOTAL INVESTMENTS)
4,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 4,330,280
Series 2003, 5.000%, 3/01/13
2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AA+ 2,182,270
Series 2004, 5.000%, 4/01/16
Baltimore County, Maryland, Metropolitan District Special
Assessment Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,637,425
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,652,740
1,000 Baltimore, Maryland, Consolidated General Obligation Public No Opt. Call A+ 1,098,260
Improvement Bonds, Series 1989B, 7.150%, 10/15/08
1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 1,629,828
Improvement Bonds, Series 2004A, 5.000%, 10/15/22 -
AMBAC Insured
1,000 Charles County, Maryland, Consolidated General Obligation No Opt. Call AA 1,078,580
Public Improvement Bonds, Series 2005, 5.000%, 3/01/12
Frederick County, Maryland, General Obligation Public Facilities
Bonds, Series 2002:
1,000 5.000%, 11/01/21 11/12 at 101.00 AA 1,064,620
1,000 5.000%, 11/01/22 11/12 at 101.00 AA 1,062,440
615 Frederick County, Maryland, Special Obligation Bonds, 7/10 at 102.00 AA 662,404
Villages 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 790,478
1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,741,773
1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,256,275
1,725 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 1,856,635
Bonds, Series 2002A, 5.250%, 8/15/18
1,190 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,273,086
Prince George's County, General Obligation Bonds,
Park Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
2,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 2,708,100
5.000%, 8/01/17
Montgomery County, Maryland, Consolidated General
Obligation Public Improvement Refunding Bonds, Series 2001:
1,750 5.250%, 10/01/13 10/11 at 101.00 AAA 1,908,428
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,163,740
3,520 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 3,840,355
Obligation Public Improvement Bonds, Series 2005A,
5.000%, 7/01/15
925 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 973,479
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,078,950
Consolidated Public Improvement Bonds, Series 2001,
5.250%, 12/01/20 - FGIC Insured
2,000 Prince George's County, Maryland, General Obligation 9/12 at 101.00 AA 1,965,340
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 6,146,550
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/18
21
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Washington Suburban Sanitary District, Montgomery and
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005:
$ 2,000 5.000%, 6/01/16 6/15 at 100.00 AAA $ 2,172,480
1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,313,250
1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,311,261
1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,309,273
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.4% (13.1% OF TOTAL INVESTMENTS)
Baltimore Board of School Commissioners, Maryland, Revenue
Bonds, City Public School System, Series 2003A:
1,500 5.000%, 5/01/16 5/13 at 100.00 AA+ 1,597,410
1,000 5.000%, 5/01/18 5/13 at 100.00 AA+ 1,062,300
300 Baltimore, Maryland, Special Obligation Bonds, North 9/15 at 101.00 N/R 298,899
Locust Point Project, Series 2005, 5.500%, 9/01/34
900 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 921,816
Town Center Project, Series 2004, 5.750%, 7/01/34
4,250 Maryland Department of Transportation, Consolidated No Opt. Call AA 4,802,755
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
2,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 2,164,320
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
1,875 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,038,106
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:
875 5.500%, 10/15/19 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 931,577
925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 984,810
1,700 Maryland Stadium Authority, Lease Revenue Bonds, 6/13 at 100.00 AA+ 1,788,553
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 2,494,550
Facilities, Series 1996, 5.750%, 3/01/18 - AMBAC Insured
1,000 Montgomery County, Maryland, Lease Revenue Bonds, 6/12 at 100.00 AA 1,050,800
Metrorail Garage, Series 2002, 5.000%, 6/01/21
1,365 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 1,443,733
College of Arts Center Project, Series 2005A, 5.000%, 5/01/19
675 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 712,753
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+ 678,193
Maryland, School System Revenue Bonds, Series 2000,
5.125%, 11/01/15
1,000 Puerto Rico, Highway Revenue Bonds, Highway and 7/16 at 100.00 BBB+ 1,054,460
Transportation Authority, Series 1996Y, 5.500%, 7/01/36
1,500 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 1,709,460
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 2,264,451
5.250%, 8/01/21 - FSA Insured
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB 2,219,820
Loan Note, Series 1999A, 6.500%, 10/01/24
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3% (2.9% OF TOTAL INVESTMENTS)
1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking No Opt. Call AAA 1,169,954
System Facilities, Series 1998A, 5.250%, 7/01/17 -
FGIC Insured
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, Johns Hopkins Medical
Institution, Series 2004B:
355 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 382,956
380 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 410,670
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102.00 CCC $ 1,435,215
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 3,230,190
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 17.4% (11.7% OF TOTAL INVESTMENTS)
2,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,698,375
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AAA 2,116,500
Series 1998A, 5.000%, 7/01/28 - FGIC Insured
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 2,171,140
System Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
745 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 789,246
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,212,910
Bonds, Series 1999, 5.250%, 7/01/18 (Pre-refunded to 7/01/09)
2,550 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 2,852,915
and Improvement Bonds, Shady Grove Adventist Hospital,
Series 1995, 6.500%, 9/01/12 - FSA Insured
575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 626,831
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 1,856,964
1,000 5.000%, 8/15/22 (Pre-refunded to 8/15/12) 8/12 at 100.00 AAA 1,079,630
145 Howard County, Maryland, Metropolitan District Refunding 2/12 at 100.00 AAA 158,070
Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded
to 2/15/12)
760 Maryland Health and Higher Educational Facilities Authority, 7/10 at 101.00 A3*** 868,361
Revenue Bonds, University of Maryland Medical System,
Series 2000, 6.750%, 7/01/30 (Pre-refunded to 7/01/10)
3,125 Maryland Health and Higher Educational Facilities Authority, 1/06 at 100.00 Aaa 3,238,781
Revenue Bonds, Howard County General Hospital,
Series 1993, 5.500%, 7/01/25
3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 3,431,808
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 -
AMBAC Insured
145 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA*** 167,967
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (DD, settling 12/01/05)
635 Prince George's County Housing Authority, Maryland, 2/06 at 100.00 AA*** 637,102
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 1997A, 5.625%, 8/01/17
(Alternative Minimum Tax) (Pre-refunded to 2/01/06)
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,089,450
Obligation Bonds, Series 2000A, 5.500%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.1% (6.2% OF TOTAL INVESTMENTS)
6,500 Calvert County, Maryland, Pollution Control Revenue 1/06 at 101.00 A2 6,604,845
Refunding Bonds, Baltimore Gas and Electric Company,
Series 1993, 5.550%, 7/15/14
2,500 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 2,537,675
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
5,000 Prince George's County, Maryland, Pollution Control Revenue No Opt. Call A- 5,083,000
Refunding Bonds, Potomac Electric Power Company,
Series 1993, 6.375%, 1/15/23
23
Nuveen Maryland Premium Income Municipal Fund (NMY) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.3% (0.8% OF TOTAL INVESTMENTS)
$ 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AAA $ 1,134,421
Projects, Series 1994A, 5.000%, 7/01/24 - FGIC Insured
860 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 938,412
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 220,090 Total Long-Term Investments (cost $224,153,204) - 148.7% 231,195,721
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 3,381,563
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.9)% (79,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 155,477,284
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varyingprices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Portion of security purchased on a delayed delivery
basis.
See accompanying notes to financial statements.
24
Nuveen Maryland Dividend Advantage Municipal Fund (NFM)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.3% OF TOTAL INVESTMENTS)
$ 180 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call BB $ 169,342
Motors Corporation, Series 1993, 5.350%, 4/01/08
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,565 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,586,159
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.0% (8.7% OF TOTAL INVESTMENTS)
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
465 5.700%, 9/01/20 3/10 at 101.00 BBB- 484,670
500 5.750%, 9/01/25 3/10 at 101.00 BBB- 518,960
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 668,517
Bonds, Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
1,000 Maryland Economic Development Corporation, Utility 7/11 at 100.00 AAA 1,058,560
Infrastructure Revenue Bonds, University of Maryland -
College Park, Series 2001, 5.000%, 7/01/19 - AMBAC Insured
1,500 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 1,555,440
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 648,538
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 510,070
Revenue Bonds, Goucher College, Series 2004,
5.125%, 7/01/34
300 Maryland Industrial Development Financing Authority, 5/15 at 100.00 N/R 306,648
Revenue Bonds, Our Lady of Good Counsel High School,
Series 2005A, 6.000%, 5/01/35
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University
System, Series 1999:
215 5.375%, 2/01/19 2/09 at 101.00 BBB- 219,205
410 5.375%, 2/01/29 2/09 at 101.00 BBB- 412,079
University of Maryland, Auxiliary Facility and Tuition
Revenue Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,066,260
500 5.000%, 4/01/19 4/13 at 100.00 AA 530,840
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.3% (17.0% OF TOTAL INVESTMENTS)
2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,336,361
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 1,009,950
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 1,041,890
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 579,582
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- 1,290,000
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- 1,030,330
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 656,754
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
25
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ $ 2,047,980
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,063,260
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 Baa1 508,075
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,025,800
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 730,597
Revenue Bonds, MedStar Health, Series 2004,
5.375%, 8/15/24
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 596,782
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 757,688
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
290 5.375%, 7/01/14 1/06 at 101.00 B3 260,643
700 5.300%, 7/01/24 1/06 at 101.00 B3 579,810
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 18.3% (12.3% OF TOTAL INVESTMENTS)
750 Baltimore County, Maryland, GNMA Collateralized Revenue 10/08 at 102.00 AAA 764,183
Refunding Bonds, Cross Creek Apartments, Series 1998A,
5.250%, 10/20/33
2,000 Maryland Community Development Administration, Housing 7/08 at 101.00 Aa2 2,047,620
Revenue Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative
Minimum Tax)
520 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 534,108
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax)
1,000 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,028,810
Multifamily Housing Revenue Bonds, Princess Anne
Apartments, Series 2001D, 5.450%, 12/15/33 (Alternative
Minimum Tax)
1,800 Maryland Economic Development Corporation, Student 7/11 at 101.00 A 1,922,562
Housing Revenue Bonds, Sheppard Pratt University Village,
Series 2001, 6.000%, 7/01/33 - ACA Insured
750 Montgomery County Housing Opportunities Commission, 7/08 at 101.00 Aaa 762,323
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 2,089,920
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 2,060,700
Maryland, Multifamily Housing Development Bonds,
Series 2001A, 5.600%, 7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.5% (3.0% OF TOTAL INVESTMENTS)
115 Maryland Community Development Administration, 9/09 at 100.00 Aa2 117,773
Residential Revenue Bonds, Series 1999E, 5.700%, 9/01/17
590 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 597,629
Revenue Bonds, Series 2000H, 5.800%, 9/01/32 (Alternative
Minimum Tax)
415 Maryland Community Development Administration, Single 10/10 at 100.00 Aa2 418,233
Family Program Bonds, First Series 2001, 5.000%, 4/01/17
585 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 595,395
Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative
Minimum Tax)
1,000 Maryland Community Development Administration, Residential 3/11 at 100.00 Aa2 1,032,320
Revenue Bonds, Series 2001F, 5.600%, 9/01/28 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,011,060
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 1,000 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R $ 905,710
Revenue Bonds, Collington Episcopal Life Care Community
Inc., Series 2001A, 6.750%, 4/01/23
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.5% (26.5% OF TOTAL INVESTMENTS)
Anne Arundel County, Maryland, Various Purpose General
Obligation Bonds, Series 2001:
580 4.800%, 2/15/18 2/11 at 101.00 AA+ 604,778
500 5.000%, 2/15/28 2/11 at 101.00 AA+ 519,320
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,082,570
Series 2003, 5.000%, 3/01/13
3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,649,240
Assessment Bonds, 67th Issue, 5.000%, 6/01/27
1,000 Charles County, Maryland, Consolidated General Obligation No Opt. Call AA 1,078,580
Public Improvement Bonds, Series 2005, 5.000%, 3/01/12
1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA 1,062,440
Bonds, Series 2002, 5.000%, 11/01/22
Frederick, Maryland, General Obligation Bonds, Series 2005:
600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 649,944
500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 539,535
1,360 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,386,398
Bonds, Series 2001A, 4.750%, 2/15/21
1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,069,820
Prince George's County, General Obligation Bonds, Park
Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
1,000 Maryland, General Obligation Bonds, Series 2005, 5.000%, 8/01/17 8/15 at 100.00 AAA 1,083,240
1,360 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,483,774
Obligation Public Improvement Bonds, Series 2005A,
5.000%, 7/01/15
430 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 452,536
Series 2000A, 6.000%, 6/01/20 - ACA Insured
740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AAA 774,329
4.875%, 3/01/19 - FGIC Insured
1,500 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,618,425
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 1,066,650
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
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 936,967
935 5.000%, 6/01/23 6/11 at 100.00 AAA 976,449
985 5.000%, 6/01/24 6/11 at 100.00 AAA 1,027,188
1,035 5.000%, 6/01/25 6/11 at 100.00 AAA 1,083,583
1,290 Washington Suburban Sanitary District, Montgomery and 6/11 at 100.00 AAA 1,326,765
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2001, 4.750%, 6/01/20
700 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 760,368
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.4% (12.4% OF TOTAL INVESTMENTS)
625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 627,144
Project, Series 2005A, 5.350%, 7/01/34
675 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 689,972
Revenue Bonds, Parole Town Center Project, Series 2002,
5.000%, 7/01/12
500 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 531,150
Bonds, City Public School System, Series 2003A,
5.000%, 5/01/18
350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 358,484
Town Center Project, Series 2004, 5.750%, 7/01/34
1,500 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,695,090
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,082,160
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
27
Nuveen Maryland Dividend Advantage Municipal Fund (NFM) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,405 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ $ 1,527,221
Revenue Bonds, Department of Transportation Headquarters
Building, Series 2002, 5.375%, 6/01/19
370 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 397,413
Bonds, Montgomery County Town Square Parking Garage,
Series 2002A, 5.000%, 9/15/13
615 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 648,524
College of Arts Center Project, Series 2005A, 5.000%, 5/01/20
740 Prince George's County, Maryland, Lease Revenue Bonds, 6/13 at 100.00 AAA 793,724
Upper Marlboro Justice Center, Series 2003A,
5.000%, 6/30/14 - MBIA Insured
270 Prince Georges County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 268,990
National Harbor Project, Series 2005, 5.200%, 7/01/34
450 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 453,479
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 797,748
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB 1,437,383
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3% (2.2% OF TOTAL INVESTMENTS)
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 AAA 668,616
Parking Facilities Revenue Bonds, Johns Hopkins Hospital,
Series 2001, 5.000%, 7/01/27 - AMBAC Insured
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, Johns Hopkins Medical
Institution, Series 2004B:
150 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 161,813
135 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 145,896
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,076,730
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 18.1% (12.2% OF TOTAL INVESTMENTS)
1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,619,025
Public Improvement Bonds, Series 2002, 5.000%, 8/01/18
(Pre-refunded to 8/01/12)
1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water No Opt. Call AAA 1,074,124
Projects, Series 1998A, 5.000%, 7/01/28 - FGIC Insured
1,865 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,975,762
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
500 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 539,815
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
895 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,036,759
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
585 Prince George's County Housing Authority, Maryland, 2/06 at 100.00 AA*** 587,059
FHLMC/FNMA/GNMA Collateralized Single Family
Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/30
(Alternative Minimum Tax) (Pre-refunded to 2/01/06)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,476,019
1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,830,101
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.7% (1.1% OF TOTAL INVESTMENTS)
$ 1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R $ 1,015,066
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6% (0.5% OF TOTAL INVESTMENTS)
355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 387,364
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 87,200 Total Long-Term Investments (cost $88,673,116) - 148.7% 91,274,666
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.4% 2,112,230
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.1)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 61,386,896
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
29
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 190 Baltimore, Maryland, Pollution Control Revenue Bonds, General No Opt. Call BB $ 178,750
Motors Corporation, Series 1993, 5.350%, 4/01/08
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5% (1.7% OF TOTAL INVESTMENTS)
785 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 795,613
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 784,736
Tobacco Settlement Asset-Backed Bonds, Series 2001,
5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.5% (10.5% OF TOTAL INVESTMENTS)
1,100 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 1,146,783
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
100 5.750%, 9/01/25 3/10 at 101.00 BBB- 103,792
100 5.800%, 9/01/30 3/10 at 101.00 BBB- 103,554
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 668,517
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
250 Maryland Health and Higher Educational Facilities Authority, 7/08 at 102.00 BBB- 259,240
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 440,307
Revenue Bonds, Bullis School, Series 2000, 5.250%, 7/01/30 -
FSA Insured
1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 1,297,075
Revenue Bonds, Maryland Institute College of Art,
Series 2001, 5.500%, 6/01/32
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 510,070
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
315 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 321,980
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
500 Morgan State University, Maryland, Student Tuition and Fee 7/12 at 100.00 AAA 532,605
Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2001, 4.900%, 7/01/21 - FGIC Insured
500 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 531,580
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 1,603,210
1,140 4.500%, 4/01/19 4/11 at 100.00 AA 1,156,416
1,000 University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A, 4/13 at 100.00 AA 1,061,680
5.000%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.1% (14.2% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,041,890
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- 1,545,495
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 656,754
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 2,047,980
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28
30
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 Baa1 $ 1,063,260
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 Baa1 508,075
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa2 1,025,800
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 730,597
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 535,574
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 814,161
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 757,688
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
1,610 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA- 1,659,862
Revenue Bonds, Trinity Healthcare Group, Series 2001,
5.125%, 12/01/22
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
300 5.375%, 7/01/14 1/06 at 101.00 B3 269,631
700 5.300%, 7/01/24 1/06 at 101.00 B3 579,810
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.7% (9.2% OF TOTAL INVESTMENTS)
55 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 56,015
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2001A, 5.100%, 5/15/28
2,595 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 2,665,402
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2001B, 5.350%, 5/15/32 (Alternative Minimum Tax)
1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,141,979
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 3,235,607
Multifamily Development Revenue Bonds, Waters Towers
Senior Apartments, Series 2001F, 5.450%, 12/15/33
(Alternative Minimum Tax)
435 Maryland Community Development Administration, Insured 5/12 at 100.00 Aa2 453,218
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2002A, 5.300%, 5/15/22
1,000 Maryland Economic Development Corporation, Student Housing 10/13 at 100.00 Baa3 1,059,310
Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS)
915 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 931,067
Revenue Bonds, Series 2001H, 5.350%, 9/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,162,719
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.5% (0.4% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001A:
31 6.750%, 4/01/20 4/09 at 100.00 N/R 27,954
25 6.750%, 4/01/23 4/11 at 101.00 N/R 22,643
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001B:
25 8.000%, 4/01/22 (Optional put 4/01/07) 10/06 at 100.00 N/R 24,999
5 6.400%, 4/01/23 (Mandatory put 4/01/07) No Opt. Call N/R 4,603
31
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Prince George's County, Maryland, Revenue Bonds, Collington
Episcopal Life Care Community Inc., Series 1994A:
$ 20 5.625%, 4/01/09 4/06 at 100.00 N/R $ 18,231
175 6.000%, 4/01/13 4/06 at 100.00 N/R 158,848
50 Prince George's County, Maryland, Revenue Bonds, Collington No Opt. Call N/R 50,000
Episcopal Life Care Community Inc., Series 1994B,
8.000%, 4/01/16 (Optional put 4/01/06)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 41.4% (27.9% OF TOTAL INVESTMENTS)
750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AA+ 762,533
Consolidated Water and Sewerage, Series 1999, 4.500%, 8/01/19
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,082,570
Series 2003, 5.000%, 3/01/13
750 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AAA 793,748
Improvement Bonds, Series 2004A, 5.000%, 10/15/22 -
AMBAC Insured
Cecil County, Maryland, Consolidated General Obligation Public
Improvement Bonds, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 AA- 1,003,714
1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,045,990
1,000 Frederick County, Maryland, General Obligation Public Facilities 11/12 at 101.00 AA 1,066,310
Bonds, Series 2002, 5.000%, 11/01/20
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA- 531,619
Improvement Bonds, Series 2001, 4.750%, 12/01/19
Frederick, Maryland, General Obligation Bonds, Series 2005:
600 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 649,944
500 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 539,535
1,000 Howard County, Maryland, Consolidated Public Improvement 2/14 at 100.00 AAA 1,075,480
Bonds, Series 2004B, 5.000%, 8/15/16
Maryland, General Obligation Bonds, State and Local Facilities
Loan, First Series 2001:
2,445 5.500%, 3/01/11 No Opt. Call AAA 2,679,476
1,500 5.500%, 3/01/12 No Opt. Call AAA 1,661,310
1,000 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,083,240
5.000%, 8/01/17
4,730 Montgomery County, Maryland, Consolidated General 10/11 at 101.00 AAA 5,117,245
Obligation Public Improvement Refunding Bonds,
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 1,078,950
2,820 5.250%, 12/01/21 - FGIC Insured 12/11 at 101.00 AAA 3,042,639
770 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 808,970
Series 2001, 5.000%, 7/01/24 - FSA Insured
1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,086,240
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2005, 5.000%, 6/01/16
800 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 868,992
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 18.8% (12.7% OF TOTAL INVESTMENTS)
625 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 627,144
Project, Series 2005A, 5.350%, 7/01/34
675 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 689,972
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+ 1,650,278
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,730,434
530 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 565,473
Bonds, City Public School System, Series 2003A,
5.000%, 5/01/15
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R $ 358,484
Town Center Project, Series 2004, 5.750%, 7/01/34
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,130,060
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,082,160
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,527,221
Bonds, Department of Transportation Headquarters Building,
Series 2002, 5.375%, 6/01/19
590 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 626,385
College of Arts Center Project, Series 2005A, 5.000%, 5/01/18
1,000 Montgomery County, Maryland, Special Obligation Bonds, 7/12 at 101.00 AA 1,055,930
West Germantown Development District, Senior Series 2002A,
5.500%, 7/01/27 - RAAI Insured
270 Prince Georges County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 268,990
National Harbor Project, Series 2005, 5.200%, 7/01/34
475 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 478,672
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.9% (3.3% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, Johns Hopkins Hospital, Series
2001:
650 5.000%, 7/01/27 - AMBAC Insured 7/11 at 100.00 AAA 668,616
1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 AAA 1,023,670
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, Johns Hopkins Medical
Institution, Series 2004B:
155 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 167,206
135 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 145,896
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,076,730
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 22.5% (15.1% OF TOTAL INVESTMENTS)
1,500 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,619,025
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 1,103,930
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
3,000 Frederick County, Maryland, General Obligation Public 12/10 at 101.00 AAA 3,259,140
Facilities Bonds, Series 2000, 5.200%, 12/01/19
(Pre-refunded to 12/01/10)
750 Howard County, Maryland, Consolidated Public Improvement 8/12 at 100.00 AAA 809,722
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 1,340,363
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 -
AMBAC Insured
1,220 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,413,236
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
1,230 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,318,007
Series 2001, 5.000%, 7/01/24 (Pre-refunded to 7/01/11) -
FSA Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,229,590
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3% (2.2% OF TOTAL INVESTMENTS)
1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 1,052,800
5.250%, 10/01/34 - MBIA Insured
1,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 1,015,070
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
33
Nuveen Maryland Dividend Advantage Municipal Fund 2 (NZR) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA $ 387,364
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 88,501 Total Long-Term Investments (cost $90,097,608) - 148.5% 93,145,153
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,562,048
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (32,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 62,707,201
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE
NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE APPRECIATION
====================================================================================================================================
Citigroup $300,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $19,292
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
34
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 220 Baltimore, Maryland, Pollution Control Revenue Bonds, No Opt. Call BB $ 206,974
General Motors Corporation, Series 1993, 5.350%, 4/01/08
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6% (2.4% OF TOTAL INVESTMENTS)
2,730 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,766,910
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.3% (8.3% OF TOTAL INVESTMENTS)
225 Anne Arundel County, Maryland, Economic Development 9/12 at 102.00 A3 234,569
Revenue Bonds, Community College Project, Series 2002,
5.125%, 9/01/22
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
100 5.750%, 9/01/25 3/10 at 101.00 BBB- 103,792
100 5.800%, 9/01/30 3/10 at 101.00 BBB- 103,554
690 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 715,157
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,026,180
Revenue Bonds, Johns Hopkins University, Series 2002A,
5.000%, 7/01/32
625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 637,588
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
385 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 393,532
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
1,000 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AAA 1,039,290
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 999,361
Bonds, Series 2001B, 4.625%, 4/01/21
2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA 2,119,220
Bonds, Series 2002A, 5.125%, 4/01/22
University of Maryland, Auxiliary Facility and Tuition Revenue
Bonds, Series 2003A:
1,000 5.000%, 4/01/15 4/13 at 100.00 AA 1,066,260
1,000 5.000%, 4/01/19 4/13 at 100.00 AA 1,061,680
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.8% (12.0% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/08 at 101.00 AAA 1,041,890
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- 1,032,000
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- 669,715
Revenue Bonds, Mercy Medical Center, Series 2001,
5.625%, 7/01/31
800 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 808,312
Revenue Bonds, Greater Baltimore Medical Center,
Series 2001, 5.000%, 7/01/34
1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,306,250
Revenue Bonds, Carroll County General Hospital,
Series 2002, 5.800%, 7/01/32
700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 711,305
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 1,940,091
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
35
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 $ 814,548
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 1,025,800
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 Baa1 939,339
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A 739,602
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 814,161
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
870 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 878,918
Revenue Bonds, Civista Medical Center, Series 2005,
5.000%, 7/01/37 - RAAI Insured
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
350 5.375%, 7/01/14 1/06 at 101.00 B3 314,570
900 5.300%, 7/01/24 1/06 at 101.00 B3 745,470
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 14.2% (9.6% OF TOTAL INVESTMENTS)
980 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 981,872
Revenue Bonds, Series 2002B, 4.950%, 7/01/32
(Alternative Minimum Tax)
Maryland Economic Development Corporation, Student
Housing Revenue Bonds, Sheppard Pratt University Village,
Series 2001:
20 5.875%, 7/01/21 - ACA Insured 7/11 at 101.00 A 21,413
150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 A 160,214
1,250 Maryland Economic Development Corporation, Student 10/13 at 100.00 Baa3 1,324,138
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
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 519,877
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 3,028,980
4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 4,932,074
Collateralized Mortgage Revenue Bonds, Fairview and
Hillside Projects, Series 2002A, 4.700%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/09 at 101.00 BBB 1,011,060
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.6% (0.3% OF TOTAL INVESTMENTS)
280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R 253,599
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001A, 6.750%, 4/01/23
Prince George's County, Maryland, Revenue Bonds, Collington
Episcopal Life Care Community Inc., Series 1994A:
40 5.625%, 4/01/09 4/06 at 100.00 N/R 36,463
115 6.000%, 4/01/13 4/06 at 100.00 N/R 104,386
38 Prince George's County, Maryland, Revenue Bonds, Collington No Opt. Call N/R 38,000
Episcopal Life Care Community Inc., Series 1994B,
8.000%, 4/01/16 (Optional put 4/01/06)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 31.9% (21.5% OF TOTAL INVESTMENTS)
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,020,980
Refunding Bonds, Series 2002, 4.375%, 4/01/17
1,000 Anne Arundel County, Maryland, General Obligation Bonds, No Opt. Call AA+ 1,082,570
Series 2003, 5.000%, 3/01/13
1,000 Calvert County, Maryland, General Obligation Public 1/12 at 101.00 AA 1,037,070
Improvement Bonds, Series 2002, 4.500%, 1/01/16
1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,298,594
Public Improvement Bonds, Series 2002, 4.400%, 1/15/16
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Frederick County, Maryland, General Obligation Public
Facilities Bonds, Series 2002:
$ 1,830 5.000%, 11/01/20 11/12 at 101.00 AA $ 1,951,347
2,035 5.000%, 11/01/21 11/12 at 101.00 AA 2,166,502
2,500 5.000%, 11/01/22 11/12 at 101.00 AA 2,656,100
245 Frederick County, Maryland, Special Obligation Bonds, Villages 7/10 at 102.00 AA 264,228
of Lake Linganore Community Development Authority,
Series 2001A, 5.600%, 7/01/20 - RAAI Insured
Frederick, Maryland, General Obligation Bonds, Series 2005:
710 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 769,100
535 5.000%, 8/01/17 - MBIA Insured 8/15 at 100.00 AAA 577,302
1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AA 1,069,820
Prince George's County, General Obligation Bonds,
Park Acquisition and Development, Series 2004EE-2,
5.000%, 1/15/17
1,000 Maryland, General Obligation Bonds, State and Local Facilities No Opt. Call AAA 1,070,980
Loan, Series 2002B, 5.250%, 2/01/10
1,500 Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AAA 1,624,860
5.000%, 8/01/17
1,440 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,571,054
Obligation Public Improvement Bonds, Series 2005A,
5.000%, 7/01/15
1,000 Prince George's County, Maryland, General Obligation 10/13 at 100.00 AA 1,066,650
Consolidated Public Improvement Bonds, Series 2003A,
5.000%, 10/01/17
1,000 Prince George's County, Maryland, General Obligation No Opt. Call AA 1,077,770
Consolidated Public Improvement Bonds, Series 2004C,
5.000%, 12/01/11
1,000 St. Mary's County, Maryland, General Obligation Hospital No Opt. Call AA- 1,080,980
Bonds, Series 2002, 5.000%, 10/01/12
25 Washington Suburban Sanitary District, Montgomery and 6/11 at 101.00 AAA 26,678
Prince George's Counties, Maryland, General Obligation
Construction Bonds, Second Series 2001, 5.000%, 6/01/17
1,000 Washington Suburban Sanitary District, Montgomery and No Opt. Call AAA 1,085,380
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2004, 5.000%, 6/01/13
1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,086,240
Prince George's Counties, Maryland, Water Supply Bonds,
Series 2005, 5.000%, 6/01/16
1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 1,086,240
Prince George's Counties, Maryland, Sewerage Disposal
Bonds, Series 2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 33.1% (22.4% OF TOTAL INVESTMENTS)
750 Annapolis, Maryland, Special Obligation Bonds, Park Place 1/15 at 101.00 N/R 752,573
Project, Series 2005A, 5.350%, 7/01/34
1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,066,930
Bonds, City Public School System, Series 2003A,
5.000%, 5/01/15
450 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 460,908
Town Center Project, Series 2004, 5.750%, 7/01/34
5,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 5,650,300
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AA 1,082,160
Transportation Revenue Bonds, Series 2004, 5.000%, 5/01/13
2,200 Maryland Economic Development Corporation, Lease 6/12 at 100.50 AA+ 2,250,864
Revenue Bonds, Department of Transportation Headquarters
Building, Series 2002, 4.750%, 6/01/22
450 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 483,341
Bonds, Montgomery County Town Square Parking Garage,
Series 2002A, 5.000%, 9/15/13
2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,172,882
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+ 1,551,523
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,707,496
710 Montgomery County, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 753,786
College of Arts Center Project, Series 2005A,
5.000%, 5/01/18
37
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 460 Prince Georges County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R $ 458,280
National Harbor Project, Series 2005, 5.200%, 7/01/34
575 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 579,445
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
700 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 797,748
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA 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 BBB 1,041,720
1,205 5.250%, 7/01/20 7/12 at 100.00 BBB 1,249,718
1,275 5.250%, 7/01/21 7/12 at 100.00 BBB 1,321,576
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,097,130
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 244,059
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 1.9% (1.3% OF TOTAL INVESTMENTS)
Maryland Health and Higher Educational Facilities Authority,
Parking Facilities Revenue Bonds, Johns Hopkins Medical
Institution, Series 2004B:
190 5.000%, 7/01/13 - AMBAC Insured No Opt. Call AAA 204,963
175 5.000%, 7/01/14 - AMBAC Insured No Opt. Call AAA 189,124
1,000 District of Columbia Metropolitan Area Transit Authority, No Opt. Call AAA 1,076,730
Gross Revenue Bonds, Series 2003, 5.000%, 1/01/12 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 20.1% (13.6% OF TOTAL INVESTMENTS)
10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AA+*** 10,612
Consolidated General Improvements, Series 1999,
5.000%, 5/15/19 (Pre-refunded to 5/15/09)
2,115 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 2,313,873
Public Improvement Bonds, Series 2002, 5.250%, 8/01/17
(Pre-refunded to 8/01/12)
100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 107,097
Bonds, Series 1999, 5.250%, 7/01/17 (Pre-refunded to 7/01/09)
1,210 Howard County, Maryland, Consolidated Public Improvement 2/09 at 101.00 AAA 1,272,134
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 1,311,750
Refunding Bonds, Series 2003A, 5.000%, 8/15/15
(Pre-refunded to 8/15/12)
50 Maryland Health and Higher Educational Facilities Authority, No Opt. Call AAA 53,189
Revenue Bonds, Helix Health, Series 1997,
5.000%, 7/01/17 - AMBAC Insured
1,080 Maryland Transportation Authority, Revenue Refunding No Opt. Call AAA 1,251,061
Bonds, Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16
2,000 Montgomery County, Maryland, Consolidated General 2/12 at 101.00 AAA 2,168,240
Obligation Public Improvement Bonds, Series 2002A,
5.000%, 2/01/20 (Pre-refunded to 2/01/12)
880 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 948,490
Bonds, Series 2001, 5.125%, 7/01/30 (Pre-refunded
to 7/01/11) - FSA Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 5,382,650
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
700 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 767,200
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.2% (4.8% OF TOTAL INVESTMENTS)
$ 1,250 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R $ 1,268,838
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 4,286,300
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.0% (2.7% OF TOTAL INVESTMENTS)
2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AAA 2,647,280
Projects, Series 2002A, 5.125%, 7/01/42 - FGIC Insured
430 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 469,204
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
$ 108,958 Total Long-Term Investments (cost $112,903,634) - 148.3% 114,789,733
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,619,123
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.4)% (39,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 77,408,856
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE
NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE APPRECIATION
====================================================================================================================================
Citigroup $ 500,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $ 32,153
JPMorgan 2,000,000 4.833% Semi-annually 3-month USD-LIBOR Quarterly 2/09/06 2/09/36 125,362
------------------------------------------------------------------------------------------------------------------------------------
$157,515
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
39
Nuveen Virginia Premium Income Municipal Fund (NPV)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.0% (2.8% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
$ 1,575 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,592,026
3,850 5.500%, 6/01/26 6/15 at 100.00 BBB 3,891,157
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.7% (6.7% OF TOTAL INVESTMENTS)
3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 AAA 3,847,795
Rate Revenue Bonds, Institute for Defense Analyses,
Series 2000A, 5.900%, 10/01/30 - AMBAC Insured
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,034,200
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 537,125
Revenue Refunding and Improvement Bonds, Series 1999,
6.000%, 10/15/28
700 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 721,329
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G.
Mendez University System, Series 2002, 5.375%, 12/01/21
500 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 500,405
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
475 The Rector and Visitors of the University of Virginia, 6/15 at 100.00 AAA 509,718
General Revenue Bonds, Series 2005, 5.000%, 6/01/18
2,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 2,160,440
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,185,508
Revenue Bonds, Public Higher Education Financing Program,
Series 2001A, 5.000%, 9/01/26
1,635 Virginia Commonwealth University, Revenue Bonds, 5/14 at 101.00 AAA 1,744,365
Series 2004A, 5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.9% (11.7% OF TOTAL INVESTMENTS)
2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A2 2,040,220
Virginia, Hospital Revenue Bonds, Martha Jefferson Hospital,
Series 2002, 5.250%, 10/01/35
4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 5,110,057
Hospital Revenue Refunding Bonds, Inova Health System,
Series 1993A, 5.000%, 8/15/23
1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 1,265,900
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AAA 1,171,190
Hospital Revenue Bonds, Memorial Regional Medical Center,
Series 1995, 6.375%, 8/15/18 - MBIA Insured
1,500 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,563,300
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 1,813,530
Healthcare Revenue Bonds, Bon Secours Health System,
Series 1996, 6.250%, 8/15/20 - MBIA Insured
1,950 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 2,000,564
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
4,750 Medical College of Virginia Hospital Authority, General 7/08 at 102.00 AAA 4,893,213
Revenue Bonds, Series 1998, 5.125%, 7/01/23 - MBIA Insured
3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AAA 3,212,460
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/19 - MBIA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5% (3.1% OF TOTAL INVESTMENTS)
$ 1,445 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa $ 1,512,005
Multifamily Housing Revenue Bonds, Patrick Henry
Apartments, Series 2000, 6.050%, 11/01/32 (Alternative
Minimum Tax) (Mandatory put 11/01/20)
Danville Industrial Development Authority, Virginia, Student
Housing Revenue Bonds, Collegiate Housing Foundation, Averett
College, Series 1999A:
500 6.875%, 6/01/20 6/09 at 102.00 N/R 494,140
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,481,835
1,495 Henrico County Economic Development Authority, Virginia, 7/09 at 102.00 AAA 1,616,902
GNMA Mortgage-Backed Securities Program Assisted
Living Revenue Bonds, Beth Sholom, Series 1999A,
5.900%, 7/20/29
1,000 Lynchburg Redevelopment and Housing Authority, Virginia, 4/10 at 102.00 AAA 1,034,490
Vistas GNMA Mortgage-Backed Revenue Bonds, Series 2000A,
6.200%, 1/20/40 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.0% (0.8% OF TOTAL INVESTMENTS)
345 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 346,787
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 1,027,510
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.5% (1.0% OF TOTAL INVESTMENTS)
2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 2,043,900
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
500 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba2 471,885
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (a)
1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba2 941,150
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (a)
1,000 Isle of Wight County Industrial Development Authority, 5/07 at 102.00 BBB 1,023,410
Virginia, Solid Waste Disposal Facilities Revenue Bonds,
Union Camp Corporation, Series 1997, 6.100%, 5/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.9% (18.5% OF TOTAL INVESTMENTS)
900 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 976,311
5.000%, 6/15/13
900 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 971,298
5.000%, 12/15/11
1,400 Arlington County, Virginia, General Obligation Bonds, 5/15 at 100.00 AAA 1,519,084
Series 2005, 5.000%, 5/15/16
Chesapeake, Virginia, General Obligation Water and Sewerage
Bonds, Series 2003B:
1,880 5.000%, 6/01/21 6/13 at 100.00 AA 1,969,150
2,060 5.000%, 6/01/23 6/13 at 100.00 AA 2,146,953
1,355 Harrisonburg, Virginia, General Obligation Bonds, Public 7/12 at 101.00 AAA 1,430,162
Safety and Steam Plant, Series 2002, 5.000%, 7/15/19 -
FGIC Insured
1,390 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 1,509,915
Series 2005, 5.000%, 7/15/16
1,920 Loudoun County, Virginia, General Obligation Public No Opt. Call Aaa 2,086,656
Improvement Bonds, Series 2005A, 5.000%, 7/01/14
105 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 113,059
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,435 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 Aaa 1,542,238
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,252,628
5.000%, 6/01/21
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 2,936,394
1,000 5.000%, 7/01/20 7/13 at 100.00 AA 1,056,530
41
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,350 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA $ 1,455,597
Series 2004C, 5.000%, 5/01/16
1,400 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 1,473,374
Series 2000A, 6.000%, 6/01/20 - ACA Insured
1,000 Portsmouth, Virginia, General Obligation Bonds, No Opt. Call AAA 1,078,670
Series 2003, 5.000%, 7/01/12 - FSA Insured
1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AAA 1,388,710
5.000%, 4/01/15 - MBIA Insured
1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,565,411
5.000%, 7/15/21 - FSA Insured
Richmond, Virginia, General Obligation Bonds, Series 2005A:
1,500 5.000%, 7/15/17 - FSA Insured 7/15 at 100.00 AAA 1,613,205
1,715 5.000%, 7/15/20 - FSA Insured 7/15 at 100.00 AAA 1,826,115
1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,524,809
Bonds, Series 2002A, 5.000%, 10/01/17
1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 1,232,394
5.000%, 12/01/15
1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,504,843
Bonds, Series 2001, 5.000%, 6/01/20
2,155 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AA+ 2,299,234
Series 2003B, 5.000%, 5/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.9% (22.7% OF TOTAL INVESTMENTS)
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
335 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 347,144
260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 271,092
1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AAA 1,415,563
Revenue Bonds, School Facilities Project, Series 2005,
5.000%, 1/01/20 - MBIA Insured
Cumberland County, Virginia, Certificates of Participation,
Series 1997:
1,075 6.200%, 7/15/12 No Opt. Call N/R 1,146,724
1,350 6.375%, 7/15/17 No Opt. Call N/R 1,493,208
500 Dinwiddie County Industrial Development Authority, Virginia, 2/07 at 102.00 N/R 516,540
Lease Revenue Bonds, Dinwiddie County School Facilities,
Series 1997A, 6.000%, 2/01/18
1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AAA 1,074,010
Lease Revenue Bonds, Series 2004B, 5.125%, 2/15/16 -
MBIA Insured
Fairfax County Economic Development Authority, Virginia, Lease
Revenue Bonds, Laurel Hill Public Facilities Projects, Series
2003:
2,260 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,436,981
2,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 2,277,753
1,660 Front Royal and Warren County Industrial Development 4/14 at 100.00 AAA 1,756,695
Authority, Virginia, Lease Revenue Bonds, Series 2004B,
5.000%, 4/01/18 - FSA Insured
1,270 James City County Economic Development Authority, Virginia, 7/15 at 100.00 AA- 1,348,143
Revenue Bonds, County Government Projects, Series 2005,
5.000%, 7/15/19
1,930 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 2,055,411
County Facilities, Series 2005, 5.000%, 6/01/18 -
AMBAC Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 2,059,240
Revenue Bonds, Series 2002D, 5.000%, 7/01/32 - FSA Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Refunding Bonds, Series 2002D:
265 5.250%, 7/01/27 7/12 at 100.00 BBB 271,204
320 5.250%, 7/01/36 7/12 at 100.00 BBB 326,173
1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,110,655
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 2,219,820
Loan Note, Series 1999A, 6.500%, 10/01/24
1,400 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 1,507,226
Revenue Bonds, Series 2005A, 5.000%, 5/01/16
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,855 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ $ 1,980,917
Revenue Bonds, 21st Century College Program, Series 2004A,
5.000%, 2/01/11
2,000 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 2,092,580
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
2,400 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 2,599,416
Highway Reimbursement Anticipation Notes, Series 2005,
5.000%, 9/28/15
2,000 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 2,144,460
Bonds, Series 2004B, 5.000%, 8/01/11
1,950 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 2,105,669
1997 Resolution, Series 2004C, 5.000%, 8/01/13
1,625 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 1,748,078
1997 Resolution, Series 2005C, 5.000%, 8/01/17
2,000 Virginia Public School Authority, School Financing Bonds, 8/10 at 101.00 AA+ 2,113,720
1997 Resolution, Series 2000B, 5.000%,8/01/18
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2000B:
1,120 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 1,207,662
3,060 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 3,280,504
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,834,778
Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.2% (8.4% OF TOTAL INVESTMENTS)
755 Metropolitan District of Columbia Airports Authority, Virginia, 10/07 at 101.00 Aa3 784,785
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 4,114,160
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
530 Pocahontas Parkway Association, Virginia, Senior Lien 8/08 at 102.00 BB- 546,552
Revenue Bonds, Route 895 Connector Toll Road, Series 1998A,
5.500%, 8/15/28
2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 2,784,650
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 6,274,667
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 2,109,960
Bonds, Series 2001A, 5.250%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 13.6% (9.4% OF TOTAL INVESTMENTS)
750 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 811,485
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured
1,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,287,159
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
Fairfax County Water Authority, Virginia, Water Revenue
Refunding Bonds, Series 2002:
1,925 5.375%, 4/01/19 (Pre-refunded to 4/01/12) 4/12 at 100.00 AAA 2,107,240
200 5.000%, 4/01/27 (Pre-refunded to 4/01/12) 4/12 at 100.00 AAA 214,732
Greater Richmond Convention Center Authority, Virginia,
Hotel Tax Revenue Bonds, Convention Center Expansion
Project, Series 2000:
600 6.125%, 6/15/25 (Pre-refunded to 6/15/10) 6/10 at 101.00 AAA 668,658
2,000 6.125%, 6/15/29 (Pre-refunded to 6/15/10) 6/10 at 101.00 AAA 2,228,860
Hampton, Virginia, General Obligation Public Improvement
Bonds, Series 2000:
890 5.750%, 2/01/17 (Pre-refunded to 2/01/10) 2/10 at 102.00 AA*** 983,806
2,000 6.000%, 2/01/20 (Pre-refunded to 2/01/10) 2/10 at 102.00 AA*** 2,229,220
480 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 522,955
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
(Pre-refunded to 5/01/12)
43
Nuveen Virginia Premium Income Municipal Fund (NPV) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** (continued)
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
$ 375 6.000%, 6/01/22 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** $ 421,661
800 6.100%, 6/01/32 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** 904,096
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,691,325
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Refunding Bonds, Series 2002D:
735 5.250%, 7/01/27 (Pre-refunded to 7/01/12) 7/12 at 100.00 BBB*** 793,668
880 5.250%, 7/01/36 (Pre-refunded to 7/01/12) 7/12 at 100.00 BBB*** 950,242
1,000 Virginia College Building Authority, Educational Facilities 4/10 at 101.00 A+*** 1,104,700
Revenue Bonds, Hampton University, Series 2000,
6.000%, 4/01/20 (Pre-refunded to 4/01/10)
500 Virginia Resources Authority, Clean Water State Revolving 10/10 at 100.00 AAA 547,685
Fund Revenue Bonds, Series 1999, 5.625%, 10/01/22
(Pre-refunded to 10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.6% (8.0% OF TOTAL INVESTMENTS)
Bristol, Virginia, Utility System Revenue Refunding Bonds,
Series 2003:
1,705 5.250%, 7/15/14 - MBIA Insured 7/13 at 100.00 AAA 1,859,354
1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AAA 1,952,694
2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AAA 2,991,450
2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 2,799,750
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
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 3,625,230
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 772,875
1,700 5.000%, 1/15/33 - FSA Insured 1/12 at 100.00 AAA 1,740,868
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.2% (5.7% OF TOTAL INVESTMENTS)
Fairfax County Water Authority, Virginia, Water Revenue
Refunding Bonds, Series 2002:
105 5.375%, 4/01/19 4/12 at 100.00 AAA 113,829
800 5.000%, 4/01/27 4/12 at 100.00 AAA 828,256
1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,829,791
Refunding Bonds, Series 1999, 5.000%, 5/01/28
1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,045,640
Sewerage System Revenue Bonds, Series 2004,
5.000%, 1/01/26
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
$ 1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AAA $ 1,377,620
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AAA 1,445,821
1,955 Rivanna Water and Sewerage Authority, Virginia, Regional 10/09 at 101.00 AA 2,096,601
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 2,490,323
Series 2000, 6.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
$ 185,600 Total Long-Term Investments (cost $189,148,005) - 144.8% 197,054,990
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 2,857,840
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.9)% (63,800,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 136,112,830
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(a) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
See accompanying notes to financial statements.
45
Nuveen Virginia Dividend Advantage Municipal Fund (NGB)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.7% (3.2% OF TOTAL INVESTMENTS)
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
$ 85 5.000%, 5/15/22 5/11 at 100.00 Baa3 $ 85,932
850 5.400%, 5/15/31 5/11 at 100.00 Baa3 859,775
Tobacco Settlement Financing Corporation of Virginia,
Tobacco Settlement Asset-Backed Bonds, Series 2005:
550 5.250%, 6/01/19 6/15 at 100.00 BBB 555,946
725 5.500%, 6/01/26 6/15 at 100.00 BBB 732,750
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.9% (9.4% OF TOTAL INVESTMENTS)
500 Danville Industrial Development Authority, Virginia, Educational 3/11 at 102.00 N/R 507,160
Facilities Revenue Bonds, Averett University, Series 2001,
6.000%, 3/15/22
500 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 517,100
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 913,113
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,
Series 1999:
160 5.375%, 2/01/19 2/09 at 101.00 BBB- 163,130
320 5.375%, 2/01/29 2/09 at 101.00 BBB- 321,622
330 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 327,515
Horse Center Revenue Refunding Bonds, Series 2001B,
6.125%, 7/15/11
1,000 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 1,000,810
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
160 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 171,694
Revenue Bonds, Series 2005, 5.000%, 6/01/18
700 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 756,154
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
1,325 Virginia College Building Authority, Educational Facilities 9/10 at 100.00 AA+ 1,394,947
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 512,175
Revenue Refunding Bonds, Marymount University,
Series 1998, 5.100%, 7/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.8% (7.2% OF TOTAL INVESTMENTS)
1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 1,045,220
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
1,500 Fredericksburg Industrial Development Authority, Virginia, 6/07 at 102.00 AAA 1,566,105
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 506,360
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- 521,100
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
575 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A2 589,910
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 860,768
Revenue Refunding and Improvement Bonds, Norton
Community Hospital, Series 2001, 6.000%, 12/01/22 -
ACA Insured
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.4% (2.9% OF TOTAL INVESTMENTS)
$ 1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA $ 1,027,100
Multifamily Housing Mortgage Revenue Bonds, Arlington
View Terrace Apartments, Series 2001, 5.150%, 11/01/31
(Alternative Minimum Tax) (Mandatory put 11/01/19)
1,000 Virginia Housing Development Authority, Rental Housing Bonds, 10/10 at 100.00 AA+ 1,037,560
Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,027,510
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.1% (0.1% OF TOTAL INVESTMENTS)
50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 51,097
Solid Waste Disposal Facility Revenue Refunding Bonds,
USA Waste of Virginia Inc., Series 1999, 4.875%, 2/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.4% (3.0% OF TOTAL INVESTMENTS)
500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R 517,945
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31
350 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 346,595
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.625%, 12/01/39
650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 690,495
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A,
6.000%, 3/01/23
350 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 347,617
Care Facility Mortgage Revenue Bonds, Westminster
Canterbury on Chesapeake Bay, Series 2005,
5.000%, 11/01/22
175 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 175,886
Residential Care Facility Revenue Bonds, Westminster-
Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.7% (1.0% OF TOTAL INVESTMENTS)
100 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba2 94,377
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (a)
20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 Ba2 20,457
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 Ba2 207,053
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (a)
500 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 481,255
Environmental Improvement Revenue Bonds, Smurfit Stone
Container Corporation, Series 2005, 5.250%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 30.9% (20.8% OF TOTAL INVESTMENTS)
330 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 357,981
5.000%, 6/15/13
300 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 323,766
5.000%, 12/15/11
500 Arlington County, Virginia, General Obligation Bonds, 5/15 at 100.00 AAA 542,530
Series 2005, 5.000%, 5/15/16
2,000 Chesterfield County, Virginia, General Obligation Public 1/11 at 100.00 AAA 2,095,540
Improvement Bonds, Series 2001, 5.000%, 1/15/21
500 Henrico County, Virginia, General Obligation Bonds, 7/15 at 100.00 AAA 543,135
Series 2005, 5.000%, 7/15/16
3,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AAA 3,508,037
Bonds, Series 2000, 5.125%, 1/15/21 - FGIC Insured
660 Loudoun County, Virginia, General Obligation Public No Opt. Call Aaa 717,288
Improvement Bonds, Series 2005A, 5.000%, 7/01/14
500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 Aaa 537,365
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
845 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 911,096
Series 2004C, 5.000%, 5/01/16
320 Northern Mariana Islands, General Obligation Bonds, 6/10 at 100.00 A 336,771
Series 2000A, 6.000%, 6/01/20 - ACA Insured
47
Nuveen Virginia Dividend Advantage Municipal Fund (NGB) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 500 Portsmouth, Virginia, General Obligation Bonds, Series 2003, No Opt. Call AAA $ 539,335
5.000%, 7/01/12 - FSA Insured
Richmond, Virginia, General Obligation Bonds, Series 2005A:
620 5.000%, 7/15/17 - FSA Insured 7/15 at 100.00 AAA 666,791
500 5.000%, 7/15/20 - FSA Insured 7/15 at 100.00 AAA 532,395
400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call Aa2 434,324
5.000%, 12/01/15
2,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AA+ 2,556,217
Improvement Bonds, Series 2001, 5.000%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.9% (15.4% OF TOTAL INVESTMENTS)
271 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 286,390
Special Assessment Bonds, Series 2003A, 6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 554,565
Revenue Bonds, Series 2003, 7.500%, 6/01/33
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 124,350
95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 99,053
580 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aaa 613,953
County Facilities, Series 2005, 5.000%, 6/01/20 -
AMBAC Insured
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,065,590
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 1,069,680
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
500 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 538,295
Revenue Bonds, Series 2005A, 5.000%, 5/01/16
500 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 533,940
Revenue Bonds, 21st Century College Program, Series 2004A,
5.000%, 2/01/11
500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 523,145
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
800 Commonwealth Transportation Board of Virginia, Federal No Opt. Call AA 866,472
Highway Reimbursement Anticipation Notes, Series 2005,
5.000%, 9/28/15
350 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 382,939
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
750 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 804,173
Bonds, Series 2004B, 5.000%, 8/01/11
800 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 863,864
1997 Resolution, Series 2004C, 5.000%, 8/01/13
345 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 371,130
1997 Resolution, Series 2005C, 5.000%, 8/01/17
2,000 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,110,060
1997 Resolution, Series 2001A, 5.000%, 8/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.6% (15.2% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Richmond, Virginia, 7/15 at 100.00 AAA 1,061,340
Revenue Bonds, Richmond International Airport,
Series 2005A, 5.000%, 7/01/18 - FSA Insured
1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call AAA 1,154,120
General Resolution Revenue Refunding Bonds,
Series 1998, 5.500%, 7/01/25 - MBIA Insured
3,000 Metropolitan Washington D.C. Airports Authority, 10/11 at 101.00 AAA 3,165,270
Airport System Revenue Bonds, Series 2001A,
5.500%, 10/01/27 (Alternative Minimum Tax) -
MBIA Insured
250 Metropolitan Washington D.C. Airports Authority, 10/11 at 101.00 AAA 259,730
Airport 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 1,542,810
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998A:
$ 200 5.250%, 8/15/07 No Opt. Call BB- $ 204,060
200 5.500%, 8/15/28 8/08 at 102.00 BB- 206,246
500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AAA 556,930
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 1,292,351
Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,271,925
Bonds, Series 2001B, 5.125%, 8/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 22.3% (15.0% OF TOTAL INVESTMENTS)
1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, 7/11 at 102.00 AAA 1,065,250
Series 2001, 5.000%, 7/15/21 - FSA Insured
485 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 513,804
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,540 Loudoun County, Virginia, General Obligation Public 1/11 at 101.00 Aaa 1,677,060
Improvement Bonds, Series 2001B, 5.250%, 1/01/20
(Pre-refunded to 1/01/11)
425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB*** 477,883
Hospital Revenue Bonds, Loudoun Hospital Center,
Series 2002A, 6.000%, 6/01/22 (Pre-refunded to 6/01/12)
1,000 Newport News, Virginia, General Obligation Bonds, 5/10 at 102.00 AA*** 1,104,650
Series 2000A, 5.625%, 5/01/16 (Pre-refunded to 5/01/10)
1,000 Norfolk Industrial Development Authority, Virginia, Healthcare 8/07 at 102.00 AAA 1,049,970
Revenue Bonds, Bon Secours Health System, Series 1997,
5.250%, 8/15/26 (Pre-refunded to 8/15/07) - MBIA Insured
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,614,795
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,614,795
1,300 Richmond, Virginia, General Obligation Refunding and 1/10 at 101.00 AAA 1,393,870
Public Improvement Bonds, Series 1999A, 5.125%, 1/15/24
(Pre-refunded to 1/15/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.5% (2.3% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 1,119,900
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
500 Richmond, Virginia, Public Utility Revenue Refunding Bonds, 1/12 at 100.00 AAA 515,250
Series 2002, 5.000%, 1/15/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 4.4% (3.0% OF TOTAL INVESTMENTS)
2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 2,083,940
Refunding Bonds, Series 1999, 5.000%, 5/01/22
------------------------------------------------------------------------------------------------------------------------------------
$ 66,501 Total Long-Term Investments (cost $67,547,386) - 148.8% 70,290,352
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 932,031
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (24,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 47,222,383
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(a) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
See accompanying notes to financial statements.
49
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB)
Portfolio of
INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3% (3.0% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
$ 1,050 5.250%, 6/01/19 6/15 at 100.00 BBB $ 1,061,351
2,700 5.500%, 6/01/26 6/15 at 100.00 BBB 2,728,863
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 8.7% (6.0% OF TOTAL INVESTMENTS)
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 Aaa 1,059,940
Revenue Bonds, National Wildlife Federation, Series 1999,
5.375%, 9/01/29 - MBIA Insured
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,034,200
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
1,500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 1,545,705
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.375%, 12/01/21
500 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 500,405
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
275 The Rector and Visitors of the University of Virginia, General 6/15 at 100.00 AAA 295,100
Revenue Bonds, Series 2005, 5.000%, 6/01/18
1,000 Virginia College Building Authority, Educational Facilities No Opt. Call Aa1 1,080,220
Revenue Bonds, Public Higher Education Financing Program,
Series 2004B, 5.000%, 9/01/13
2,000 Winchester Industrial Development Authority, Virginia, 10/08 at 102.00 AAA 2,110,400
Educational Facilities First Mortgage Revenue Bonds,
Shenandoah University, Series 1998, 5.250%, 10/01/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.4% (11.9% OF TOTAL INVESTMENTS)
1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A2 1,530,165
Hospital Revenue Bonds, Martha Jefferson Hospital,
Series 2002, 5.250%, 10/01/35
3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 AA 3,135,660
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 683,586
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- 1,042,200
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,155 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 1,184,949
Revenue Bonds, Prince William Hospital, Series 2002,
5.250%, 4/01/33
1,000 Medical College of Virginia Hospital Authority, General 7/08 at 102.00 AAA 1,059,500
Revenue Bonds, Series 1998, 5.250%, 7/01/14 -
MBIA Insured
1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 A 1,291,152
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 1,041,470
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, Hospital 7/12 at 100.00 AAA 4,194,570
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.8% (6.1% OF TOTAL INVESTMENTS)
7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 7,690,912
Mortgage Bonds, Series 2001H-1, 5.350%, 7/01/31 -
MBIA Insured
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.7% (2.5% OF TOTAL INVESTMENTS)
$ 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R $ 170,922
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31
650 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 643,676
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.625%, 12/01/39
1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,434,105
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A,
6.000%, 3/01/23
650 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 645,574
Care Facility Mortgage Revenue Bonds, Westminster
Canterbury on Chesapeake Bay, Series 2005,
5.000%, 11/01/22
325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R 326,645
Residential Care Facility Revenue Bonds, Westminster-
Canterbury of Winchester Inc., Series 2005A, 5.200%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
165 Bedford County Industrial Development Authority, Virginia, 2/08 at 102.00 Ba2 155,722
Industrial Development Revenue Refunding Bonds,
Nekoosa Packaging Corporation, Series 1998,
5.600%, 12/01/25 (Alternative Minimum Tax) (a)
460 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 Ba2 432,929
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (a)
1,000 Hopewell Industrial Development Authority, Virginia, No Opt. Call CCC+ 962,510
Environmental Improvement Revenue Bonds, Smurfit Stone
Container Corporation, Series 2005, 5.250%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 38.5% (26.5% OF TOTAL INVESTMENTS)
600 Alexandria, Virginia, General Obligation Bonds, Series 2004B, No Opt. Call AAA 650,874
5.000%, 6/15/13
540 Alexandria, Virginia, General Obligation Bonds, Series 2004C, No Opt. Call AAA 582,779
5.000%, 12/15/11
1,000 Arlington County, Virginia, General Obligation Bonds, 5/15 at 100.00 AAA 1,085,060
Series 2005, 5.000%, 5/15/16
1,750 Chesapeake, Virginia, General Obligation Bonds, 12/11 at 100.00 AA 1,918,665
Series 2001, 5.500%, 12/01/16
1,200 Loudoun County, Virginia, General Obligation Public No Opt. Call Aaa 1,304,160
Improvement Bonds, Series 2005A, 5.000%, 7/01/14
95 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 102,291
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,000 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 Aaa 1,074,730
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 Aaa 1,776,001
Improvement Bonds, Series 2001C, 4.500%, 11/01/17
1,840 Newport News, Virginia, General Obligation Bonds, General 7/13 at 100.00 AA 1,944,015
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 1,054,080
Series 2003B, 5.000%, 11/01/22
565 Portsmouth, Virginia, General Obligation Public Utility 6/08 at 100.00 AAA 581,860
Refunding Bonds, Series 2001B, 5.000%, 6/01/21 -
FGIC Insured
1,500 Portsmouth, Virginia, General Obligation Bonds, No Opt. Call AAA 1,618,005
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 688,552
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 AAA 1,029,420
1,000 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,057,710
5.000%, 7/15/21 - FSA Insured
1,000 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 1,064,790
5.000%, 7/15/20 - FSA Insured
Roanoke, Virginia, General Obligation Public Improvement
Bonds, Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,556,144
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,589,209
1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AAA 1,360,435
Bonds, Series 2002B, 5.000%, 10/01/15 (Alternative
Minimum Tax) - FGIC Insured
51
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Salem, Virginia, General Obligation Public Improvement
Bonds, Series 2002:
$ 1,145 5.375%, 1/01/21 1/12 at 100.00 Aa3 $ 1,229,902
1,200 5.375%, 1/01/22 1/12 at 100.00 Aa3 1,288,980
1,260 5.375%, 1/01/23 1/12 at 100.00 Aa3 1,353,429
1,325 5.375%, 1/01/24 1/12 at 100.00 Aa3 1,423,249
1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 AAA 1,174,500
6.250%, 2/01/25 - AMBAC Insured
1,500 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AA+ 1,581,840
Bonds, Series 2001, 5.000%, 6/01/19
1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AA+ 1,501,977
Public Improvement Bonds, Series 2002, 5.000%, 3/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.4% (18.1% OF TOTAL INVESTMENTS)
501 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 529,452
Assessment Bonds, Series 2003A, 6.750%, 3/01/22
1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 1,109,130
Revenue Bonds, Series 2003, 7.500%, 6/01/33
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 A 217,613
165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 A 172,039
1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA 1,906,074
Lease Revenue Refunding Bonds, Public Facility Project,
Series 2003, 5.000%, 3/01/19
400 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 BBB 409,364
Government Facilities Revenue Refunding Bonds,
Series 2002D, 5.250%, 7/01/27
455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 472,540
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 AAA 1,065,590
Virginia, Lease Revenue Bonds, School Facilities,
Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
800 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA 861,272
Revenue Bonds, Series 2005A, 5.000%, 5/01/16
1,000 Virginia College Building Authority, Educational Facilities No Opt. Call AA+ 1,067,880
Revenue Bonds, 21st Century College Program,
Series 2004A, 5.000%, 2/01/11
1,790 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ 1,872,859
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22
800 Commonwealth Transportation Board of Virginia, No Opt. Call AA 866,472
Federal Highway Reimbursement Anticipation Notes,
Series 2005, 5.000%, 9/28/15
1,710 Virginia Transportation Board, Transportation Revenue 5/11 at 100.00 AA+ 1,754,682
Bonds, Northern 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+ 1,784,777
1,665 5.000%, 5/15/23 5/11 at 100.00 AA+ 1,738,593
690 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 754,936
Prince William County, Special Assessment Bonds,
Series 2003, 6.375%, 3/01/30
1,000 Virginia Public Building Authority, Public Facilities Revenue No Opt. Call AA+ 1,072,230
Bonds, Series 2004B, 5.000%, 8/01/11
700 Virginia Public School Authority, School Financing Bonds, No Opt. Call AA+ 755,881
1997 Resolution, Series 2004C, 5.000%, 8/01/13
570 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 613,172
1997 Resolution, Series 2005C, 5.000%, 8/01/17
2,540 Virginia Public School Authority, School Financing Bonds, 8/11 at 101.00 AA+ 2,679,776
1997 Resolution, Series 2001B, 5.000%, 8/01/19
1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,300,888
Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.3% (1.6% OF TOTAL INVESTMENTS)
$ 1,000 Metropolitan Washington D.C. Airports Authority, 10/12 at 100.00 AAA $ 1,025,300
Airport System Revenue Bonds, Series 2002A,
5.125%, 10/01/26 (Alternative Minimum Tax) - FGIC Insured
Pocahontas Parkway Association, Virginia, Senior Lien
Revenue Bonds, Route 895 Connector Toll Road, Series 1998A:
300 5.250%, 8/15/07 No Opt. Call BB- 306,090
325 5.500%, 8/15/28 8/08 at 102.00 BB- 335,150
300 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 318,708
Bonds, Series 2001A, 5.250%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED*** - 12.1% (8.3% OF TOTAL INVESTMENTS)
1,000 Bristol, Virginia, General Obligation Utility System Revenue 11/12 at 102.00 AAA 1,081,980
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured
1,000 Fairfax County, Virginia, General Obligation Refunding and 6/10 at 101.00 AAA 1,072,790
Improvement Bonds, Series 2002, 5.000%, 6/01/20
(Pre-refunded to 6/01/10)
195 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 209,364
Refunding Bonds, Series 2002, 5.000%, 4/01/27
(Pre-refunded to 4/01/12)
445 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 Aaa 484,823
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
(Pre-refunded to 5/01/12)
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
250 6.000%, 6/01/22 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** 281,108
600 6.100%, 6/01/32 (Pre-refunded to 6/01/12) 6/12 at 101.00 BBB*** 678,072
2,750 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,960,458
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,100 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 BBB*** 1,187,802
Government Facilities Revenue Refunding Bonds,
Series 2002D, 5.250%, 7/01/27 (Pre-refunded to 7/01/12)
1,345 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 1,474,120
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
500 Virginia Beach, Virginia, Water and Sewerage System 8/10 at 100.00 AA*** 535,320
Revenue Bonds, Series 2000, 5.125%, 8/01/14
(Pre-refunded to 8/01/10)
500 Virginia Public Building Authority, Public Facilities Revenue 8/10 at 100.00 AA+*** 548,680
Bonds, Series 2000A, 5.750%, 8/01/20
(Pre-refunded to 8/01/10)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4% (4.4% OF TOTAL INVESTMENTS)
2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 A3 2,239,800
Virginia, Revenue Bonds, UAE Mecklenburg Cogeneration LP,
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 3,327,875
Series 2000HH, 5.250%, 7/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.2% (10.4% OF TOTAL INVESTMENTS)
805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 833,433
Refunding Bonds, Series 2002, 5.000%, 4/01/27
Henry County Public Service Authority, Virginia, Water and
Sewerage Revenue Refunding Bonds, Series 2001:
1,000 5.500%, 11/15/17 - FSA Insured No Opt. Call AAA 1,126,730
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,413,820
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AAA 1,195,472
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AAA 1,256,364
1,450 5.000%, 11/01/23 - FGIC Insured 11/11 at 100.00 AAA 1,515,990
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AAA 1,591,307
53
Nuveen Virginia Dividend Advantage Municipal Fund 2 (NNB) (continued)
Portfolio of INVESTMENTS November 30, 2005 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA $ 2,305,234
Revenue Bonds, Caroline County Public Improvements Project,
Series 2001, 5.000%, 5/01/32
------------------------------------------------------------------------------------------------------------------------------------
$ 120,016 Total Long-Term Investments (cost $121,539,165) - 145.6% 126,946,098
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 2,223,119
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (42,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 87,169,217
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT NOVEMBER 30, 2005:
FIXED RATE FIXED RATE FLOATING RATE FLOATING RATE
NOTIONAL PAID BY THE FUND PAYMENT RECEIVED BY THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE(2) DATE APPRECIATION
====================================================================================================================================
Citigroup $700,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 $45,014
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(a) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
See accompanying notes to financial statements.
54
Statement of
ASSETS AND LIABILITIES November 30, 2005 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $224,153,204, $88,673,116,
$90,097,608 and $112,903,634, respectively) $231,195,721 $91,274,666 $93,145,153 $114,789,733
Cash -- -- -- --
Receivables:
Interest 4,224,811 1,608,986 1,525,110 1,729,296
Investments sold -- 614,526 233,650 --
Unrealized appreciation on forward swaps -- -- 19,292 157,515
Other assets 13,452 3,228 762 881
------------------------------------------------------------------------------------------------------------------------------------
Total assets 235,433,984 93,501,406 94,923,967 116,677,425
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 534,527 62,337 157,668 206,295
Payable for investments purchased 96,470 -- -- --
Accrued expenses:
Management fees 122,034 26,069 26,435 30,572
Other 63,465 21,177 24,773 28,550
Preferred share dividends payable 40,204 4,927 7,890 3,152
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 856,700 114,510 216,766 268,569
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 32,000,000 39,000,000
====================================================================================================================================
Net assets applicable to Common shares $155,477,284 $61,386,896 $62,707,201 $ 77,408,856
====================================================================================================================================
Common shares outstanding 10,623,525 4,168,560 4,177,476 5,359,275
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.64 $ 14.73 $ 15.01 $ 14.44
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 106,235 $ 41,686 $ 41,775 $ 53,593
Paid-in surplus 147,548,696 59,134,773 59,265,488 75,640,534
Undistributed (Over-distribution of) net investment income 609,429 275,254 367,547 70,854
Accumulated net realized gain (loss) from investments and
forward swaps 170,407 (666,367) (34,446) (399,739)
Net unrealized appreciation (depreciation) of investments and
forward swaps 7,042,517 2,601,550 3,066,837 2,043,614
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $155,477,284 $61,386,896 $62,707,201 $ 77,408,856
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
55
Statement of
ASSETS AND LIABILITIES (Unaudited) (continued)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $189,148,005, $67,547,386
and $121,539,165, respectively) $197,054,990 $70,290,352 $126,946,098
Cash -- -- 409,397
Receivables:
Interest 3,095,060 1,083,439 1,833,738
Investments sold 5,000 -- --
Unrealized appreciation on forward swaps -- -- 45,014
Other assets 15,151 3,153 1,732
------------------------------------------------------------------------------------------------------------------------------------
Total assets 200,170,201 71,376,944 129,235,979
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 84,387 100,849 --
Payable for investments purchased -- -- --
Accrued expenses:
Management fees 104,233 19,880 35,996
Other 54,613 19,634 30,766
Preferred share dividends payable 14,138 14,198 --
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 257,371 154,561 66,762
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
====================================================================================================================================
Net assets applicable to Common shares $136,112,830 $47,222,383 $ 87,169,217
====================================================================================================================================
Common shares outstanding 8,886,034 3,124,944 5,712,678
====================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 15.32 $ 15.11 $ 15.26
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 88,860 $ 31,249 $ 57,127
Paid-in surplus 125,054,114 44,307,018 81,126,384
Undistributed (Over-distribution of) net investment income 700,321 279,771 406,566
Accumulated net realized gain (loss) from investments and
forward swaps 2,362,550 (138,621) 127,193
Net unrealized appreciation (depreciation) of investments and
forward swaps 7,906,985 2,742,966 5,451,947
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $136,112,830 $47,222,383 $ 87,169,217
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
56
Statement of
OPERATIONS Six Months Ended November 30, 2005 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,707,652 $ 2,241,403 $ 2,207,805 $ 2,585,015
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 754,235 302,741 307,134 377,356
Preferred shares - auction fees 99,146 40,110 40,110 48,884
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014 5,014
Shareholders' servicing agent fees and expenses 14,008 1,211 799 675
Custodian's fees and expenses 32,922 15,590 14,686 17,499
Trustees' fees and expenses 2,268 1,118 1,049 1,247
Professional fees 8,915 6,101 6,174 6,547
Shareholders' reports - printing and mailing expenses 21,604 8,156 8,711 10,562
Stock exchange listing fees 5,252 178 178 229
Investor relations expense 16,201 6,222 6,360 8,000
Other expenses 9,368 6,865 6,787 7,336
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 973,946 393,306 397,002 483,349
Custodian fee credit (8,806) (4,299) (4,367) (5,942)
Expense reimbursement -- (141,893) (143,952) (188,655)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 965,140 247,114 248,683 288,752
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,742,512 1,994,289 1,959,122 2,296,263
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 287,700 54,903 10,384 156,553
Net realized gain (loss) from forward swaps -- (62,612) (92,720) (192,334)
Change in net unrealized appreciation (depreciation)
of investments (5,103,115) (1,637,594) (1,730,896) (2,310,905)
Change in net unrealized appreciation (depreciation)
of forward swaps -- 64,747 118,054 352,391
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (4,815,415) (1,580,556) (1,695,178) (1,994,295)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (837,513) (326,782) (322,457) (422,682)
From accumulated net realized gains from investments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (837,513) (326,782) (322,457) (422,682)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (910,416) $ 86,951 $ (58,513) $ (120,714)
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
OPERATIONS (Unaudited) (continued)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 4,779,587 $ 1,712,681 $ 3,037,633
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 644,732 231,165 419,014
Preferred shares - auction fees 79,968 30,082 52,644
Preferred shares - dividend disbursing agent fees 10,027 5,014 5,014
Shareholders' servicing agent fees and expenses 12,099 808 1,029
Custodian's fees and expenses 33,642 14,527 21,918
Trustees' fees and expenses 2,256 711 1,575
Professional fees 8,861 6,218 6,860
Shareholders' reports - printing and mailing expenses 17,309 6,717 10,328
Stock exchange listing fees 5,268 133 243
Investor relations expense 13,577 4,709 8,355
Other expenses 7,726 6,705 7,539
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 835,465 306,789 534,519
Custodian fee credit (14,029) (5,019) (10,357)
Expense reimbursement -- (108,346) (196,556)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 821,436 193,424 327,606
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,958,151 1,519,257 2,710,027
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 1,408,665 189,248 216,727
Net realized gain (loss) from forward swaps -- -- (197,186)
Change in net unrealized appreciation (depreciation)
of investments (5,539,533) (1,373,461) (2,639,351)
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- 261,242
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (4,130,868) (1,184,213) (2,358,568)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (628,859) (227,645) (445,817)
From accumulated net realized gains from investments -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (628,859) (227,645) (445,817)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (801,576) $ 107,399 $ (94,358)
====================================================================================================================================
See accompanying notes to financial statements.
58
Statement of
CHANGES IN NET ASSETS (Unaudited)
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,742,512 $ 9,757,516 $ 1,994,289 $ 4,077,418 $ 1,959,122 $ 3,931,942
Net realized gain (loss) from
investments 287,700 795,306 54,903 114,678 10,384 274,944
Net realized gain (loss) from
forward swaps -- -- (62,612) (186,945) (92,720) (171,422)
Change in net unrealized appreciation
(depreciation) of investments (5,103,115) 9,023,910 (1,637,594) 3,306,967 (1,730,896) 3,746,058
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- 64,747 (64,747) 118,054 (98,762)
Distributions to Preferred Shareholders:
From net investment income (837,513) (1,044,071) (326,782) (417,536) (322,457) (392,360)
From accumulated net realized gains
from investments -- -- -- -- -- (15,798)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (910,416) 18,532,661 86,951 6,829,835 (58,513) 7,274,602
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,284,699) (9,572,060) (1,787,907) (3,885,205) (1,785,174) (3,655,367)
From accumulated net realized gains
from investments -- -- -- -- -- (256,385)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,284,699) (9,572,060) (1,787,907) (3,885,205) (1,785,174) (3,911,752)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 175,963 429,038 36,358 65,542 51,209 56,507
Preferred shares offering costs -- -- -- -- -- 16,302
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 175,963 429,038 36,358 65,542 51,209 72,809
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (5,019,152) 9,389,639 (1,664,598) 3,010,172 (1,792,478) 3,435,659
Net assets applicable to Common
shares at the beginning
of period 160,496,436 151,106,797 63,051,494 60,041,322 64,499,679 61,064,020
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $155,477,284 $160,496,436 $61,386,896 $63,051,494 $62,707,201 $64,499,679
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 609,429 $ 989,129 $ 275,254 $ 395,654 $ 367,547 $ 516,056
====================================================================================================================================
59
See accompanying notes to financial statements.
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,296,263 $ 4,588,042 $ 3,958,151 $ 8,242,308 $ 1,519,257 $ 3,106,588
Net realized gain (loss) from
investments 156,553 94,606 1,408,665 1,338,639 189,248 277,377
Net realized gain (loss) from
forward swaps (192,334) (447,668) -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments (2,310,905) 5,755,731 (5,539,533) 6,847,395 (1,373,461) 3,250,753
Change in net unrealized appreciation
(depreciation) of forward swaps 352,391 (194,876) -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (422,682) (514,154) (628,859) (765,695) (227,645) (282,554)
From accumulated net realized gains
from investments -- (2,976) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (120,714) 9,278,705 (801,576) 15,662,647 107,399 6,352,164
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,913,262) (4,164,157) (3,676,326) (7,997,824) (1,382,532) (2,913,141)
From accumulated net realized gains
from investments -- (40,734) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,913,262) (4,204,891) (3,676,326) (7,997,824) (1,382,532) (2,913,141)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- 250,336 553,214 23,902 46,268
Preferred shares offering costs -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions -- -- 250,336 553,214 23,902 46,268
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,033,976) 5,073,814 (4,227,566) 8,218,037 (1,251,231) 3,485,291
Net assets applicable to Common
shares at the beginning
of period 79,442,832 74,369,018 140,340,396 132,122,359 48,473,614 44,988,323
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $77,408,856 $79,442,832 $136,112,830 $140,340,396 $47,222,383 $48,473,614
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 70,854 $ 110,535 $ 700,321 $ 1,047,355 $ 279,771 $ 370,691
====================================================================================================================================
See accompanying notes to financial statements.
60
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
----------------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/05 5/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,710,027 $ 5,449,338
Net realized gain (loss) from
investments 216,727 886,193
Net realized gain (loss) from
forward swaps (197,186) (378,231)
Change in net unrealized appreciation
(depreciation) of investments (2,639,351) 6,118,300
Change in net unrealized appreciation
(depreciation) of forward swaps 261,242 (216,228)
Distributions to Preferred Shareholders:
From net investment income (445,817) (505,130)
From accumulated net realized gains
from investments -- (60,997)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (94,358) 11,293,245
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,450,068) (5,047,084)
From accumulated net realized gains
from investments -- (1,070,956)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,450,068) (6,118,040)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 77,542 202,523
Preferred shares offering costs 10,038 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from capital
share transactions 87,580 202,523
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,456,846) 5,377,728
Net assets applicable to Common
shares at the beginning of period 89,626,063 84,248,335
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $87,169,217 $89,626,063
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 406,566 $ 592,424
====================================================================================================================================
See accompanying notes to financial statements.
61
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The 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.
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 or certain U.S. territories.
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.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Trustees. When market price
quotes are not readily available (which is usually the case for municipal
securities), the pricing service 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. Prices of
derivative investments are also provided by an independent pricing service
approved by each Fund's Board of Trustees. If the pricing service is unable to
supply a price for a municipal bond or derivative investment, each Fund may use
a market price or fair market value quote provided by a major broker/dealer in
such investments. If it is determined that the market price or fair market value
for an investment is unavailable or inappropriate, the Board of Trustees of the
Funds, or its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments are valued at amortized cost, which approximates
market value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At November 30, 2005,
Maryland Premium Income (NMY) had an outstanding delayed delivery purchase
commitment of $47,260. 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.
Investment income also includes paydown gains and losses, if any.
62
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions 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. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
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 Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
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
================================================================================
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract, and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swaps' termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Funds. In addition, in the normal course of business, the Funds
enter into contracts that provide general indemnifications to other parties. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. 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.
64
2. FUND SHARES
Transactions in Common shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05
---------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to reinvestment
of distributions 11,243 27,491 2,279 4,162 3,229 3,606
===============================================================================================================
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
----------------------- ----------------------- -----------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
11/30/05 5/31/05 11/30/05 5/31/05 11/30/05 5/31/05
---------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to reinvestment
of distributions -- -- 14,423 33,307 1,358 2,761
===============================================================================================================
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------
SIX MONTHS
ENDED YEAR ENDED
11/30/05 5/31/05
---------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to reinvestment
of distributions 3,952 12,458
===============================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended November 30, 2005, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Purchases $11,921,367 $7,132,685 $6,807,020 $10,232,768
Sales and maturities 11,196,873 7,362,606 7,115,270 9,257,165
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Purchases $22,970,694 $6,570,504 $7,000,024
Sales and maturities 22,512,309 6,503,566 8,561,790
=========================================================================================================
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At November 30, 2005, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------
Cost of investments $223,946,165 $88,771,204 $90,140,143 $113,128,120
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------
Cost of investments $188,909,132 $67,522,532 $121,797,988
===========================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2005, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 8,924,917 $2,963,183 $3,300,128 $2,466,270
Depreciation (1,675,361) (459,721) (295,118) (804,657)
-----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $ 7,249,556 $2,503,462 $3,005,010 $1,661,613
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $8,784,930 $2,955,444 $5,758,814
Depreciation (639,072) (187,624) (610,704)
-----------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $8,145,858 $2,767,820 $5,148,110
===========================================================================================================
66
The tax components of undistributed net investment income and net realized gains
at May 31, 2005, the Funds' last fiscal year end, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,385,615 $691,669 $794,023 $446,690
Undistributed net ordinary income ** -- -- 106 --
Undistributed net long-term capital gains 2,980 -- 126,916 --
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,474,901 $591,228 $954,043
Undistributed net ordinary income ** -- -- --
Undistributed net long-term capital gains 953,885 -- 422,949
===========================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared May 2, 2005, paid on June 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended May 31,
2005, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $10,630,390 $4,316,846 $4,052,176 $4,686,785
Distributions from net ordinary income ** -- -- 17,820 108
Distributions from net long-term capital gains -- -- 254,971 43,198
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $8,771,875 $3,200,407 $5,574,792
Distributions from net ordinary income ** -- -- --
Distributions from net long-term capital gains -- -- 1,131,953
===========================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
At May 31, 2005, the Funds' last fiscal year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
MARYLAND VIRGINIA
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE
(NFM) (NGB)
--------------------------------------------------------------------------------
Expiration year:
2009 $ 7,580 $ --
2010 37,159 12,972
2011 -- 32,605
2012 430,282 282,292
--------------------------------------------------------------------------------
Total $475,021 $327,869
================================================================================
At May 31, 2005, the Funds' last fiscal year end, the following Funds elected to
defer net realized losses from investments incurred from November 1, 2004
through May 31, 2005 ("post-October losses") in accordance with Federal income
tax regulations. The following post-October losses were treated as having arisen
on the first day of the current fiscal year:
MARYLAND MARYLAND
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 3
(NFM) (NWI)
--------------------------------------------------------------------------------
$59,987 $119,983
================================================================================
68
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., and a specific fund-level component, based only on the amount
of assets within each individual fund. This pricing structure enables Nuveen
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
AVERAGE DAILY NET ASSETS MARYLAND PREMIUM INCOME (NMY)
(INCLUDING NET ASSETS VIRGINIA PREMIUM INCOME (NPV)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
MARYLAND DIVIDEND ADVANTAGE (NFM)
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
AVERAGE DAILY NET ASSETS VIRGINIA DIVIDEND ADVANTAGE (NGB)
(INCLUDING NET ASSETS VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of November 30, 2005, the complex-level fee rate was .1898%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
70
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.
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.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for
any portion of its fees and expenses beyond September 30, 2010.
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
72
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 30, 2005, to shareholders of
record on December 15, 2005, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0620 $.0715 $.0695 $.0595
=========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0655 $.0720 $.0715
=========================================================================================================
At the same time, the following Funds declared capital gains and/or ordinary
income distributions as follows:
MARYLAND MARYLAND VIRGINIA VIRGINIA
PREMIUM DIVIDEND PREMIUM DIVIDEND
INCOME ADVANTAGE 2 INCOME ADVANTAGE 2
(NMY) (NZR) (NPV) (NNB)
---------------------------------------------------------------------------------------------------------
Capital gains distributions per share .0245 .0275 .2431 .0666
Ordinary income distributions per share* .0069 .0001 -- --
=========================================================================================================
* Ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
73
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
MARYLAND PREMIUM
INCOME (NMY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) $15.12 $ .45 $ (.45) $(.08) $ -- $ (.08) $(.40) $ -- $(.40)
2005 14.28 .92 .92 (.10) -- 1.74 (.90) -- (.90)
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)
MARYLAND DIVIDEND
ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.13 .48 (.37) (.08) -- .03 (.43) -- (.43)
2005 14.43 .98 .75 (.10) -- 1.63 (.93) -- (.93)
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(b) 14.33 .22 (.25) (.05) -- (.08) (.21) -- (.21)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.45 .47 (.40) (.08) -- (.01) (.43) -- (.43)
2005 14.64 .94 .90 (.09) -- 1.75 (.88) (.06) (.94)
2004 15.71 .96 (1.08) (.06) -- (.18) (.87) (.02) (.89)
2003 14.01 .97 1.62 (.09) -- 2.50 (.81) -- (.81)
2002(c) 14.33 .57 (.22) (.06) -- .29 (.46) -- (.46)
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 14.82 .43 (.37) (.08) -- (.02) (.36) -- (.36)
2005 13.88 .86 .97 (.10) -- 1.73 (.78) (.01) (.79)
2004 14.89 .87 (1.03) (.06) -- (.22) (.79) -- (.79)
2003(d) 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:
2006(a) $ -- $14.64 $14.45 (6.01)% (0.51)%
2005 -- 15.12 15.78 15.64 12.52
2004 -- 14.28 14.45 (10.77) .64
2003 -- 15.10 17.15 15.22 14.33
2002 -- 14.04 15.73 4.77 7.71
2001 -- 13.83 15.85 26.24 14.18
MARYLAND DIVIDEND
ADVANTAGE (NFM)
-------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 14.73 14.77 (2.91) 0.19
2005 -- 15.13 15.63 6.22 11.60
2004 -- 14.43 15.62 2.99 (.69)
2003 .01 15.47 16.08 9.98 15.55
2002 -- 14.18 15.44 1.98 8.21
2001(b) (.14) 13.90 15.99 8.02 (1.53)
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
-------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 15.01 15.72 4.80 (0.09)
2005 -- 15.45 15.41 14.71 12.22
2004 -- 14.64 14.28 (2.90) (1.16)
2003 .01 15.71 15.60 12.71 18.39
2002(c) (.15) 14.01 14.61 .52 1.01
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
-------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 14.44 13.98 (0.49) (0.16)
2005 -- 14.82 14.40 14.98 12.67
2004 -- 13.88 13.24 (5.97) (1.51)
2003(d) (.20) 14.89 14.90 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:
2006(a) $155,477 1.23%* 5.97%* 1.22%* 5.98%* 5%
2005 160,496 1.24 6.22 1.23 6.22 10
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
MARYLAND DIVIDEND
ADVANTAGE (NFM)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 61,387 1.26* 5.92* .79* 6.38* 8
2005 63,051 1.26 6.11 .79 6.57 11
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(b) 57,740 1.17* 4.33* .75* 4.75* 10
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 62,707 1.24* 5.67* .78* 6.14* 7
2005 64,500 1.23 5.74 .77 6.20 10
2004 61,064 1.24 5.90 .78 6.36 11
2003 65,490 1.26 6.07 .80 6.53 12
2002(c) 58,370 1.22* 5.55* .79* 5.99* 21
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
-----------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 77,409 1.23* 5.34* .73* 5.83* 8
2005 79,443 1.23 5.40 .74 5.89 12
2004 74,369 1.22 5.59 .73 6.08 15
2003(d) 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:
2006(a) $79,100 $25,000 $74,139
2005 79,100 25,000 75,726
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
MARYLAND DIVIDEND
ADVANTAGE (NFM)
-------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 32,000 25,000 72,959
2005 32,000 25,000 74,259
2004 32,000 25,000 71,907
2003 32,000 25,000 75,264
2002 32,000 25,000 71,035
2001(b) 32,000 25,000 70,109
MARYLAND DIVIDEND
ADVANTAGE 2 (NZR)
-------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 32,000 25,000 73,990
2005 32,000 25,000 75,390
2004 32,000 25,000 72,706
2003 32,000 25,000 76,164
2002(c) 32,000 25,000 70,601
MARYLAND DIVIDEND
ADVANTAGE 3 (NWI)
-------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 39,000 25,000 74,621
2005 39,000 25,000 75,925
2004 39,000 25,000 72,672
2003(d) 39,000 25,000 76,090
=========================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended November 30, 2005.
(b) For the period January 23, 2001 (commencement of operations) through May
31, 2001.
(c) For the period September 25, 2001 (commencement of operations) through May
31, 2002.
(d) For the period September 25, 2002 (commencement of operations) through May
31, 2003.
See accompanying notes to financial statements.
74-75 SPREAD
FINANCIAL HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
VIRGINIA PREMIUM
INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) $15.82 $.45 $ (.47) $(.07) $ -- $ (.09) $(.41) $ -- $ (.41)
2005 14.95 .93 .93 (.09) -- 1.77 (.90) -- (.90)
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)
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.52 .49 (.39) (.07) -- .03 (.44) -- (.44)
2005 14.42 .99 1.13 (.09) -- 2.03 (.93) -- (.93)
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(b) 14.33 .24 (.28) (.05) -- (.09) (.21) -- (.21)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 15.70 .47 (.40) (.08) -- (.01) (.43) -- (.43)
2005 14.79 .96 1.13 (.09) (.01) 1.99 (.89) (.19) (1.08)
2004 16.02 .99 (1.22) (.06) -- (.29) (.89) (.05) (.94)
2003 14.31 .97 1.69 (.08) -- 2.58 (.84) (.03) (.87)
2002(c) 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:
2006(a) $ -- $15.32 $16.10 (6.55)% (0.56)%
2005 -- 15.82 17.65 24.54 12.13
2004 -- 14.95 14.95 (10.70) (.42)
2003 -- 15.93 17.67 15.27 14.99
2002 -- 14.69 16.17 6.64 6.71
2001 -- 14.59 16.00 18.45 15.53
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
-------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 15.11 15.48 (6.53) 0.20
2005 -- 15.52 16.99 19.11 14.46
2004 -- 14.42 15.07 (8.11) (.50)
2003 .01 15.43 17.35 21.45 14.92
2002 -- 14.23 15.09 5.10 8.89
2001(b) (.16) 13.87 15.18 2.61 (1.73)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) -- 15.26 15.97 (2.14) (0.08)
2005 -- 15.70 16.74 21.96 13.75
2004 -- 14.79 14.65 (3.81) (1.84)
2003 -- 16.02 16.14 14.58 18.51
2002(c) (.13) 14.31 14.90 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:
2006(a) $136,113 1.20%* 5.68%* 1.18%* 5.70%* 11%
2005 140,340 1.20 5.98 1.19 5.99 17
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
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 47,222 1.27* 5.84* .80* 6.31* 9
2005 48,474 1.28 6.13 .81 6.59 15
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(b) 43,155 1.27* 4.76* .80* 5.23* 20
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2006(a) 87,169 1.20* 5.63* .74* 6.10* 5
2005 89,626 1.19 5.74 .74 6.19 13
2004 84,248 1.20 5.99 .74 6.44 16
2003 91,065 1.21 6.01 .75 6.47 15
2002(c) 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:
2006(a) $63,800 $25,000 $78,336
2005 63,800 25,000 79,992
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
VIRGINIA DIVIDEND
ADVANTAGE (NGB)
--------------------------------------------------------------------
Year Ended 5/31:
2006(a) 24,000 25,000 74,190
2005 24,000 25,000 75,493
2004 24,000 25,000 71,863
2003 24,000 25,000 75,106
2002 24,000 25,000 71,154
2001(b) 24,000 25,000 69,953
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
--------------------------------------------------------------------
Year Ended 5/31:
2006(a) 42,000 25,000 76,886
2005 42,000 25,000 78,349
2004 42,000 25,000 75,148
2003 42,000 25,000 79,206
2002(c) 42,000 25,000 73,408
====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 six months ended November 30, 2005.
(b) For the period January 26, 2001 (commencement of operations) through May
31, 2001.
(c) For the period November 15, 2001 (commencement of operations) through May
31, 2002.
See accompanying notes to financial statements.
76-77 SPREAD
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End 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
the 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.
FLEXIBLE
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.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
78
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage 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.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071 Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
79
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
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.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $130 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 fixed-income 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
ESA-A-1105D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(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 to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Maryland Dividend Advantage Municipal Fund 3
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: February 3, 2006
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: February 3, 2006
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 3, 2006
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.