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
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: May 31
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Date of reporting period: November 30, 2008
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL REPORT | Nuveen Investments
November 30, 2008 | MUNICIPAL CLOSED-END FUNDS
[PHOTO OF: SMALL CHILD]
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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NUVEEN
Investments
Chairman's
LETTER TO SHAREHOLDERS
[PHOTO OF ROBERT P. BREMNER] | Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I write this letter in a time of continued uncertainty about the current state
of the U.S. financial system and pessimism about the future of the global
economy. Many have observed that the conditions that led to the crisis have
built up over time and will complicate and extend the course of recovery. At the
same time, government officials in the U.S. and abroad have implemented a wide
range of programs to restore stability to the financial system and encourage
economic recovery. History teaches us that these efforts will moderate the
extent of the downturn and hasten the inevitable recovery, even though it is
hard to envision that outcome in the current environment.
As you will read in this report, the continuing financial and economic problems
are weighing heavily on asset values for equities and fixed income, and
unfortunately the performance of the Nuveen Funds has been similarly affected. I
hope that you will carefully review the Portfolio Manager's Comments, the Common
Share Dividend and Share Price Information and the Performance Overview sections
of this report. These comments highlight the manager's pursuit of investment
strategies that depend on thoroughly researched securities, diversified
portfolio holdings and well established investment disciplines to achieve your
Fund's investment goals. The Fund Board believes that a consistent focus on long
term investment goals provides the basis for successful investment over time and
we monitor your Fund with that objective in mind.
Nuveen continues to work on resolving the auction rate preferred shares
situation, but the unsettled conditions in the credit markets have slowed
progress. Nuveen is actively pursuing a number of solutions, all with the goal
of providing liquidity for preferred shareholders while preserving the potential
benefits of leverage for common shareholders. We appreciate the patience you
have shown as we have worked through the many issues involved. Please consult
the Nuveen website: www.Nuveen.com, for the most recent information.
On behalf of myself and the other members of your Fund's Board, we look forward
to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ ROBERT P. BREMNER
---------------------------------
Robert P. Bremner
Chairman of the Nuveen Fund Board
January 20, 2009
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NMY, NFM, NZR, NWI,
NPV, NGB, NNB
Portfolio manager Cathryn Steeves discusses key investment strategies and the
six-month performance of the Nuveen Maryland and Virginia Funds. Cathryn, who
joined Nuveen in 1996, has managed these seven Funds since 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE MARYLAND AND VIRGINIA FUNDS DURING
THE SIX-MONTH REPORTING PERIOD ENDED NOVEMBER 30, 2008?
During this period, stress in the financial and credit markets led to increased
price volatility for many securities, reduced liquidity and a general flight to
quality. In this turbulent environment, we took a defensive approach to managing
the Funds, focusing on preserving and enhancing liquidity, managing duration1
risk, and continuing to invest for the long term.
As events unfolded, we carefully watched the municipal bond market for
attractive purchase opportunities, using a fundamental approach to discover
undervalued sectors and individual credits with the potential to perform well
over the long term. One area of the market that we found attractive during this
period was health care and we purchased bonds in this sector for all of the
Maryland and Virginia Funds.
To provide liquidity for purchases, we monitored the types of credits and bond
structures that were attractive to the retail market and took advantage of
strong bids to sell such bonds into solid retail demand. Given the market
environment, retail demand was strongest for higher credit quality bonds,
especially tax-backed securities with intermediate maturities. In addition, the
Maryland Funds found opportunities to sell holdings that were purchased when
yields were lower and replace them with similar, newer credits that yielded
comparatively more. This process allowed us to maintain the Funds' current
portfolio characteristics while strengthening their future income streams.
As a key dimension of risk management, we employed a disciplined approach to
duration positioning as an important component of our overall strategy. As part
of this approach, we used inverse floating rate securities(2) in all of the
Maryland and Virginia Funds throughout this period. Inverse floaters typically
provide the dual benefit of bringing the Funds' durations closer to our
strategic target and enhancing their income-generation capabilities.
1 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.
2 An inverse floating rate security also known as inverse floaters, is a
financial instrument designed to pay long-term tax-exempt interest at a rate
that varies inversely with a short-term tax-exempt interest rate index. For the
Nuveen Funds, the index typically used is the Securities Industry and Financial
Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse floating
rate securities in which the Funds invested during this reporting period, are
further defined within the Notes to Financial Statements and Glossary of Terms
Used in this Report sections of this shareholder report.
Certain statements in this report are forward-looking statements. Discussions of
specific investments are for illustration only and are not intended as
recommendations of individual investments. The forward-looking statements and
other views expressed herein are those of the portfolio manager as of the date
of this report. Actual future results or occurrences may differ significantly
from those anticipated in any forward-looking statements and the views expressed
herein are subject to change at any time, due to numerous market and other
factors. The Funds disclaim any obligation to update publicly or revise any
forward-looking statements or views expressed herein.
4
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen Maryland and Virginia Funds, as well as
relevant index and peer group information, are presented in the accompanying
table.
Average Annual Total Returns on Common Share Net Asset Value*
For periods ended 11/30/08
Six-Month 1-Year 5-Year 10-Year
Maryland Funds
NMY -13.01% -13.15% 1.20% 3.53%
NFM -17.23% -17.19% 0.06% N/A
NZR -16.45% -16.27% 0.13% N/A
NWI -14.74% -14.62% 0.68% N/A
Virginia Funds
NPV -13.14% -13.08% 0.79% 3.51%
NGB -17.24% -17.18% 0.32% N/A
NNB -15.30% -15.11% 0.62% N/A
Lipper Other States
Municipal Debt Funds
Average(3) -14.13% -14.38% 0.64% 3.22%
Barclays Capital
Municipal Bond Index(4) -4.98% -3.61% 2.59% 4.14%
S&P National Municipal
Bond Index(5) -5.48% -4.43% 2.55% N/A
For the six months ended November 30, 2008, the cumulative returns on common
share net asset value (NAV) for NMY and NPV exceeded the average return for the
Lipper Other States Municipal Debt Funds Average, while NFM, NZR, NWI, NGB and
NNB lagged this average. All of the Funds underperformed the national Barclays
Capital Municipal Bond Index and Standard & Poor's National Municipal Bond
Index. Shareholders should note the Lipper Other States Municipal Debt Funds
Average and the Barclay Capital Municipal Bond Index include bonds from states
not covered in this report, which may make direct comparisons between the Funds
and these benchmarks less meaningful.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, the use of inverse floaters,
credit exposure and sector allocations. In addition, the use of leverage was an
important factor affecting each Fund's performance over this period. The impact
of leverage is discussed in more detail on page 7.
*Six-month returns are cumulative; returns for one-year, five-year and ten-year
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.
3 The Lipper Other States Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as follows:
six-months, 46; 1 year, 46; 5 years, 46; and 10 years, 18. Fund and Lipper
returns assume reinvestment of dividends.
4 The Barclays Capital (formerly 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.
5 The Standard & Poor's (S&P) National Municipal Bond Index is an unleveraged,
market value-weighted index designed to measure the performance of the
investment-grade U.S. municipal bond market.
5
Over the course of this reporting period, we saw the yield curve steepen, as
interest rates at the short end of the curve declined and longer rates rose.
Given these changes in the interest rate environment, bonds in the Barclays
Capital Municipal Bond Index with maturities of ten years or less generally
outperformed the market as a whole, with bonds maturing in two to four years
benefiting the most. Because they were less sensitive to interest rate changes,
these shorter bonds generally outperformed credits with longer maturities, with
the biggest losses posted by bonds with the longest maturities (twenty-two years
and longer). In general, these Funds had less exposure to the outperforming
short end of the yield curve than the index and more exposure to the
underperforming longer part of the curve. This was especially true of NFM, which
had the longest duration among these seven Funds. Although the Funds' duration
and yield curve positioning was a net negative for performance, the Funds were
positively impacted by their allocations to bonds with intermediate maturities,
which performed well.
As mentioned earlier, all of these Funds used inverse floaters to help bring
their durations closer to our strategic target and enhance income-generation
capabilities. In general, these inverse floaters had a negative impact on
performance. This resulted from the fact that the inverse floaters effectively
increased the Funds' exposure to longer maturity bonds at a time when shorter
maturities were in favor in the market.
Credit exposure was also an important factor in performance during these six
months. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial markets deepened, bonds with higher
credit quality typically performed very well. At the same time, as many
investors avoided high-yield securities, bonds rated BBB or below and non-rated
bonds generally posted poor returns. Insured bonds with underlying credits that
were rated BBB or non-rated, originally purchased because of the higher yields
they offered, were disproportionately impacted (compared with bonds with
underlying credits rated AA or A) if the insurer backing the bond was
downgraded. While exposure to lower-rated credits had a negative impact on the
Funds for this period, the six-month performances of NMY and NPV, which can
invest only in investment-grade securities, benefited from their overall higher
credit quality.
During this period, pre-refunded bonds(6), which are backed by U.S. Treasury
securities, were one of the top performing segments of the market, due primarily
to their shorter effective maturities, higher credit quality and perceived
safety. Additional sectors of the market that generally contributed to the
Funds' performances included general obligation and other tax-backed bonds and
water and sewer, electric utilities and
6 Pre-refundings, also known as advance refundings or refinancings, occur when
an issuer sells new bonds and uses the proceeds to fund principal and interest
payments of older existing bonds. This process often results in lower borrowing
costs for bond issuers.
6
education credits. The Maryland Funds, in particular, benefited from their
heavier allocations to the education sector. However, the Funds generally had
lower holdings of tax-backed bonds than the market as a whole, which lessened
the positive contribution from this sector.
In general, bonds that were lower rated, regardless of sector, posted weak
performance. Revenue bonds as a whole, and the industrial development, health
care, and housing sectors in particular, underperformed the general municipal
market. Next to the industrial development revenue sector, zero coupon bonds
were among the worst performing categories in the municipal market. While the
Funds had only small exposures to the industrial development revenue sector,
their performances were hurt by their overweighting of both the health care and
housing sectors, especially in NFM, during this period.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors previously discussed, one of the primary factors
impacting the six-month returns of these Funds relative to those of the
unleveraged indexes was the Funds' use of financial leverage. While leverage
offers opportunities to generate additional income and total returns for common
shareholders, the benefits provided by leveraging are influenced by the price
movements of the bonds in each Fund's portfolio. During this period, as yields
on longer-term bonds rose and their prices correspondingly fell, declining
valuations had a negative effect on performance that was magnified by the use of
leverage. In addition, at various points during the six-month period, the Funds'
borrowing costs were relatively high, negatively impacting their total returns.
RECENT MARKET DEVELOPMENTS
Beginning in October, the nation's financial institutions and financial
markets--including the municipal bond market--experienced significant turmoil.
Reductions in demand decreased valuations of municipal bonds across all credit
ratings, especially those with lower credit ratings, and this generally reduced
the Funds' common share net asset values. The municipal market is one in which
dealer firms make markets in bonds on a principal basis using their proprietary
capital, and during the recent market turmoil these firms' capital was severely
constrained. As a result, some firms were unwilling to commit their capital to
purchase and to serve as a dealer for municipal bonds. This reduction in dealer
involvement in the market was accompanied by significant net selling pressure by
investors, particularly with respect to lower-rated municipal bonds, as
institutional investors generally removed money from the municipal bond
7
market, at least in part because of their need to reduce the leveraging of their
municipal investments. This deleveraging was in part driven by the overall
reduction in the amount of financing available for such leverage, the increased
costs of such leverage financing, and the need to reduce leverage levels that
had recently increased due to the decline in municipal bond prices.
Municipal bond prices were further negatively impacted by concerns that the need
for further de-leveraging and a supply overhang (a large amount of new issues
that were postponed) would cause selling pressure to persist for a period of
time. In addition to falling prices, the following market conditions resulted in
greater price volatility of municipal bonds - wider credit spreads (i.e., lower
quality bonds fell in price more than higher quality bonds); significantly
reduced liquidity (i.e., the ability to sell bonds at a price close to their
carrying value), particularly for lower quality bonds; and a lack of price
transparency (i.e., the ability to accurately determine the price at which a
bond would likely trade). Reduced liquidity was most pronounced in mid-October,
although it improved considerably after that period.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
position in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. During the period covered by this report, ACA, AMBAC,
CIFG, FGIC, MBIA, RAAI and SYNCORA (formerly XLCA) experienced one or more
rating reductions by at least one or more rating agencies while AGC and FSA
received their first rating reductions by at least one rating agency. At the
time this report was prepared, at least one rating agency has placed each of
these insurers except AGC on "negative outlook" or "negative credit watch,"
which may presage one or more rating reductions for such insurer or insurers in
the future. As concern increased about the balance sheets of these insurers,
prices on bonds insured by these companies - especially those bonds with weaker
underlying credits - declined, detracting from the Funds' performance. By the
end of this period, most insured bonds were being valued according to their
fundamentals as if they were uninsured. On the whole, the holdings of all of our
Funds continued to be well diversified not only between insured and uninsured
bonds, but also within the insured bond category. It is important to note that
municipal bonds historically have had a very low rate of default.
8
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the auction rate preferred shares issued by these Funds
than there were offers to buy. This meant that these auctions "failed to clear"
and that many or all auction rate preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. This decline in liquidity
in auction rate preferred shares did not lower the credit quality of these
shares, and auction rate preferred shareholder unable to sell their shares
received distributions at the "maximum rate" applicable to failed auctions as
calculated in accordance with the pre-established terms of the auction rate
preferred shares. At the time this report was prepared, the Funds' managers
could not predict when future auctions might succeed in attracting sufficient
buyers for the shares offered, if ever. The Funds' managers are working
diligently to refund the auction rate preferred shares, and have made progress
in these efforts, (at least for certain funds) but at present there is no
assurance that these efforts will succeed. These developments have generally not
affected the portfolio management or investment policies of these Funds.
However, one implication of these auction failures for common shareholders is
that the Funds' cost of leverage will likely be higher, at least temporarily,
than it otherwise would have been had the auctions continued to be successful.
As a result, the Funds' future common share earnings may be lower than they
otherwise would have been.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which auctions have been failing for several months. This plan included an
initial phase of approximately $1 billion in forty-one Funds. As of November 30,
2008, none of the Funds included in this shareholder report had issued par
redemption notices for their auction rate preferred shares.
On August 7, 2008, four Nuveen municipal Funds (none of which are included in
this shareholder report) issued par redemption notices for all outstanding
shares of their auction rate preferred shares totaling $569.9 million. These
redemptions were achieved through the issuance of variable rate demand preferred
shares (VRDP) in conjunction with the proceeds from the creation of TOBs.
On January 8, 2009, subsequent to the reporting period, NMY, NFM, NZR and NWI
noticed for redemption $0.5 million, $3.125 million, $2.45 million and $0.875
million of their outstanding auction rate preferred shares, respectively, at
liquidation value, using the proceeds from the issuance of TOBs and portfolio
sales.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
9
Common Share
Dividend and Share Price
INFORMATION
During the six-month period ended November 30, 2008, there was one dividend
increase in each of the following Funds: NMY, NWI, NPV and NGB. The dividends of
NFM, NZR and NNB remained stable throughout the reporting period.
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, 2008, all of
the Funds in this report had positive UNII balances, based upon our best
estimate, for tax purposes. NMY, NWI, NPV and NGB had positive UNII balances
while NFM, NZR and NNB had negative UNII balances for financial statement
purposes.
The Funds' Board of Trustees approved an open-market share repurchase program on
July 30, 2008, under which each Fund may repurchase up to 10% of its common
shares. As of November 30, 2008 the Funds' have not repurchased any of their
outstanding common shares.
As of November 30, 2008, the Funds' common share prices were trading at premiums
or discounts to their common share NAVs as shown in the accompanying chart:
11/30/08 Six-Month Average
Premium/Discount Premium/Discount
NMY -21.81% -13.49%
NFM -12.49% -4.28%
NZR -15.06% -5.19%
NWI -12.09% -11.75%
NPV -5.82% -5.04%
NGB +3.14% -0.34%
NNB +5.56% +1.74%
10
NMY Performance OVERVIEW | Nuveen Maryland Premium Income Municipal Fund as of
November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 49%
AA 26%
A 10%
BBB 13%
BB or Lower 1%
N/R 1%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0495
Jan 0.0495
Feb 0.0495
Mar 0.0495
Apr 0.0495
May 0.0495
Jun 0.0495
Jul 0.0495
Aug 0.0495
Sep 0.0515
Oct 0.0515
Nov 0.0515
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 12.79
12.94
12.76
12.46
12.63
13.18
13.47
13.31
13.42
13.48
13.53
12.75
12.7
12.25
12.67
12.46
12.48
12.685
12.9
12.8
12.8
12.83
12.92
12.82
12.78
12.92
13.1
12.94
12.79
12.48
12.52
12.67
12.64
12.208
12.16
12.19
12.16
12.19
12.1499
12.345
12.38
12.35
11.606
11.096
10.55
7.98
9.3
10.25
10.89
10.73
10.24
9.25
11/30/08 9.43
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 9.43
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.06
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -21.81%
--------------------------------------------------------------------------------
Market Yield 6.55%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.58%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 128,284
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.38
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.90
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -26.03% -13.01%
--------------------------------------------------------------------------------
1-Year -21.96% -13.15%
--------------------------------------------------------------------------------
5-Year -4.50% 1.20%
--------------------------------------------------------------------------------
10-Year -0.12% 3.53%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 21.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.6%
--------------------------------------------------------------------------------
Health Care 14.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.2%
--------------------------------------------------------------------------------
Housing/Multifamily 8.3%
--------------------------------------------------------------------------------
Housing/Single Family 5.8%
--------------------------------------------------------------------------------
Other 12.9%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a net ordinary income distribution in December
2007 of $0.0074 per share.
11
NFM Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund as
of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 9.95
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.37
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -12.49%
--------------------------------------------------------------------------------
Market Yield 7.06%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.32%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 47,601
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.94
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 14.53
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/23/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -27.80% -17.23%
--------------------------------------------------------------------------------
1-Year -19.27% -17.19%
--------------------------------------------------------------------------------
5-Year -4.31% 0.06%
--------------------------------------------------------------------------------
Since Inception 0.14% 2.70%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 21.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.6%
--------------------------------------------------------------------------------
Tax Obligation/General 13.5%
--------------------------------------------------------------------------------
Housing/Multifamily 11.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.8%
--------------------------------------------------------------------------------
Housing/Single Family 6.3%
--------------------------------------------------------------------------------
Other 12.8%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 42%
AA 17%
A 17%
BBB 17%
BB or Lower 1%
N/R 6%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share
Dec 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0585
Apr 0.0585
May 0.0585
Jun 0.0585
Jul 0.0585
Aug 0.0585
Sep 0.0585
Oct 0.0585
Nov 0.0585
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.21
13.35
13
13.01
13.13
13.76
13.89
14
13.96
13.95
13.936
13.74
13.33
12.65
13.13
13.11
13.85
14
14.1
13.72
13.6
13.9
13.95
14.03
14.25
13.91
14.19
14.05
14
14.142
13.83
14.53
14.5
14.1
14
13.92
13.72
13.58
13.2999
13.23
13.345
13.12
12.58
11.5
11.04
8
10.7
10.7
11.1699
11.047
10.2
9.55
11/30/08 9.95
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
12
NZR Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 2
as of November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 41%
AA 26%
A 12%
BBB 14%
BB or Lower 2%
N/R 5%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0585
Apr 0.0585
May 0.0585
Jun 0.0585
Jul 0.0585
Aug 0.0585
Sep 0.0585
Oct 0.0585
Nov 0.0585
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.29
13.39
13.19
12.86
13.17
13.83
14.19
13.95
13.8001
13.8
13.99
13.24
13.43
12.73
13.26
12.94
13.03
13.11
13.355
13.49
13.31
13.75
14
14.05
13.98
14.21
14.25
14.3
13.84
13.72
13.38
13.73
13.98
13.926
14.05
13.98
13.75
13.9
13.48
13.57
13.3799
13.1
12.6
11.5999
11.15
8.04
9.45
10.6034
12.15
11.38
11.34
10.07
11/30/08 9.87
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 9.87
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.62
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -15.06%
--------------------------------------------------------------------------------
Market Yield 7.11%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 10.39%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 48,739
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.80
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.12
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -28.70% -16.45%
--------------------------------------------------------------------------------
1-Year -21.20% -16.27%
--------------------------------------------------------------------------------
5-Year -2.68% 0.13%
--------------------------------------------------------------------------------
Since Inception -0.40% 2.59%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 17.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.9%
--------------------------------------------------------------------------------
Tax Obligation/General 16.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 12.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.8%
--------------------------------------------------------------------------------
Housing/Single Family 6.4%
--------------------------------------------------------------------------------
Housing/Multifamily 5.9%
--------------------------------------------------------------------------------
Other 15.0%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $.0343 per share.
13
NWI Performance OVERVIEW | Nuveen Maryland Dividend Advantage Municipal Fund 3
as of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 10.25
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.66
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -12.09%
--------------------------------------------------------------------------------
Market Yield 6.26%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.15%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 62,550
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 17.05
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.70
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -18.99% -14.74%
--------------------------------------------------------------------------------
1-Year -14.50% -14.62%
--------------------------------------------------------------------------------
5-Year -0.41% 0.68%
--------------------------------------------------------------------------------
Since Inception -1.05% 1.61%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.7%
--------------------------------------------------------------------------------
Health Care 17.2%
--------------------------------------------------------------------------------
Tax Obligation/General 12.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 11.7%
--------------------------------------------------------------------------------
Housing/Multifamily 10.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.9%
--------------------------------------------------------------------------------
Housing/Single Family 4.8%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 39%
AA 28%
A 10%
BBB 17%
BB or Lower 2%
N/R 4%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share
Dec 0.0525
Jan 0.0525
Feb 0.0525
Mar 0.0525
Apr 0.0525
May 0.0525
Jun 0.0525
Jul 0.0525
Aug 0.0525
Sep 0.0535
Oct 0.0535
Nov 0.0535
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 12.61
12.56
12.31
12.21
12.38
13.02
13.19
13.04
13.06
13.2
13.32
12.71
12.6
12.5099
12.7
12.29
12.65
12.69
12.76
12.62
12.72
12.7
12.9
12.88
13
13.14
13.01
13.06
12.91
12.5499
12.53
12.76
12.61
12.24
12.35
12.4
12.19
12.13
12.09
12.28
12.45
12.27
11.65
10.65
10.6057
8.15
9.13
10.2
10.4999
10.3501
10.51
9.51
11/30/08 10.25
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14
NPV Performance OVERVIEW | Nuveen Virginia Premium Income Municipal Fund as of
November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 33%
AA 47%
A 9%
BBB 7%
BB or Lower 1%
N/R 3%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.053
Jan 0.053
Feb 0.053
Mar 0.053
Apr 0.053
May 0.053
Jun 0.053
Jul 0.053
Aug 0.053
Sep 0.054
Oct 0.054
Nov 0.054
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.37
13.43
13
13
13.17
13.83
13.93
13.88
13.8
14.07
14.1
13.24
13.33
12.95
13.4701
13.08
13
13.33
13.39
13.51
13.35
13.46
13.47
13.8
13.75
13.993
14.04
14.01
13.48
13.24
12.99
13.24
13.02
12.99
13.4
13.81
13.75
13.51
13.54
13.43
13.43
13.47
13.08
12.92
12.44
8.9
10.81
12.11
11.96
12.08
11.99
11.1
11/30/08 11.49
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.49
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.20
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.82%
--------------------------------------------------------------------------------
Market Yield 5.64%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.31%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 109,031
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.01
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.60
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -16.07% -13.14%
--------------------------------------------------------------------------------
1-Year -8.67% -13.08%
--------------------------------------------------------------------------------
5-Year -2.57% 0.79%
--------------------------------------------------------------------------------
10-Year 1.79% 3.51%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.4%
--------------------------------------------------------------------------------
Health Care 16.9%
--------------------------------------------------------------------------------
Tax Obligation/General 14.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.6%
--------------------------------------------------------------------------------
Transportation 6.6%
--------------------------------------------------------------------------------
Water and Sewer 6.5%
--------------------------------------------------------------------------------
Utilities 5.0%
--------------------------------------------------------------------------------
Housing/Single Family 4.7%
--------------------------------------------------------------------------------
Other 12.1%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $.0870 per share.
15
NGB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund as
of November 30, 2008
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.81
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.45
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 3.14%
--------------------------------------------------------------------------------
Market Yield 5.84%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.60%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 35,875
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.38
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.90
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -18.12% -17.24%
--------------------------------------------------------------------------------
1-Year -6.59% -17.18%
--------------------------------------------------------------------------------
5-Year -1.49% 0.32%
--------------------------------------------------------------------------------
Since Inception 2.27% 2.89%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.6%
--------------------------------------------------------------------------------
Transportation 16.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.3%
--------------------------------------------------------------------------------
Health Care 11.5%
--------------------------------------------------------------------------------
Tax Obligation/General 9.1%
--------------------------------------------------------------------------------
Long-Term Care 6.8%
--------------------------------------------------------------------------------
Housing/Single Family 6.1%
--------------------------------------------------------------------------------
Water and Sewer 4.9%
--------------------------------------------------------------------------------
Other 12.1%
--------------------------------------------------------------------------------
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 38%
AA 30%
A 12%
BBB 10%
BB or Lower 1%
N/R 9%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0565
Jan 0.0565
Feb 0.0565
Mar 0.0565
Apr 0.0565
May 0.0565
Jun 0.0565
Jul 0.0565
Aug 0.0565
Sep 0.0575
Oct 0.0575
Nov 0.0575
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.5
13.8506
13.33
13.36
13.4
14.04
14.5
14.4801
14.67
14.32
14.082
13.45
13.42
13.23
13.2
13.41
13.3
13.5
13.67
14.09
14.5499
14.57
14.8
14.65
14.98
14.6804
14.81
14.31
14.14
13.79
13.3675
13.64
13.6
13.14
13.68
13.93
13.74
14.26
14.13
13.468
13.9
13.45
13.17
12.26
12.48
9.5001
11.4
10.7
13
12.25
11.12
9.8
11/30/08 11.81
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.1046 per share.
16
NNB Performance OVERVIEW | Nuveen Virginia Dividend Advantage Municipal Fund 2
as of November 30, 2008
[PIE CHART]
Credit Quality (as a % of total investments)(1)
AAA/U.S.
Guaranteed 37%
AA 33%
A 12%
BBB 9%
BB or Lower 1%
N/R 8%
[BAR CHART]
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Dec 0.0595
Jan 0.0595
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.0595
Oct 0.0595
Nov 0.0595
[LINE GRAPH]
Common Share Price Performance -- Weekly Closing Price
12/01/07 13.79
14.01
13.68
13.06
13.34
13.83
14.46
14.3299
14.44
14.52
14.65
13.68
13.8475
13.4
13.95
13.45
13.5
14.35
14.6
14.62
14.55
14.45
14.7
15
14.61
14.33
14.65
14.32
14.15
13.57
13.84
14.31
14.35
13.95
14.56
14.55
14.47
14.75
14.256
14.12
14.1
14.17
14.25
13.8
13.36
10.99
11.5
12.445
13.42
13.37
12.1
11.32
11/30/08 12.52
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.52
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 11.86
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 5.56%
--------------------------------------------------------------------------------
Market Yield 5.70%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.39%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 68,036
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.40
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 13.63
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month (Cumulative) -12.24% -15.30%
--------------------------------------------------------------------------------
1-Year -4.72% -15.11%
--------------------------------------------------------------------------------
5-Year 0.05% 0.62%
--------------------------------------------------------------------------------
Since Inception 2.95% 3.07%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 18.6%
--------------------------------------------------------------------------------
Health Care 16.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 11.9%
--------------------------------------------------------------------------------
Water and Sewer 11.7%
--------------------------------------------------------------------------------
Housing/Single Family 9.1%
--------------------------------------------------------------------------------
Long-Term Care 6.4%
--------------------------------------------------------------------------------
Other 11.4%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of November 30, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) 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 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0599 per share.
17
NMY | Nuveen Maryland Premium Income Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.2% (1.4% OF TOTAL INVESTMENTS) 9/16 at 100.00 Baa3 $ 2,851,334
$ 4,825 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue
Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.6% (1.0% OF TOTAL INVESTMENTS) 5/12 at 100.00 BBB 2,077,125
2,865 Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.2% (11.0% OF TOTAL
INVESTMENTS)
1,250 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 830,313
Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38
1,000 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 865,030
Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
Maryland Economic Development Corporation, Utility Infrastructure
Revenue Bonds, University of Maryland - College Park, Series
2001:
980 5.375%, 7/01/15 - AMBAC Insured 7/11 at 100.00 A 1,016,123
980 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 A 1,016,123
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 722,618
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 471,045
1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,044,400
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
1,825 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 1,295,476
Revenue Bonds, Maryland Institute College of Art, Series 2006,
5.000%, 6/01/30
1,365 Montgomery County Revenue Authority, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 1,379,141
Montgomery College Arts Center Project, Series 2005A, 5.000%,
5/01/19
9,445 Morgan State University, Maryland, Student Tuition and Fee Revenue No Opt. Call AA 10,353,608
Refunding Bonds, Academic Fees and Auxiliary Facilities, Series
1993, 6.100%, 7/01/20 - MBIA Insured
1,685 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 1,713,864
Bonds, Series 2006A, 5.000%, 10/01/22
Westminster, Maryland, Educational Facilities Revenue Bonds,
McDaniel College, Series 2006:
910 5.000%, 11/01/31 11/16 at 100.00 BBB+ 732,286
850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 578,842
------------------------------------------------------------------------------------------------------------------------------------
22,790 Total Education and Civic Organizations 22,018,869
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 23.1% (14.8% OF TOTAL INVESTMENTS)
1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,291,050
Revenue Bonds, Calvert Memorial Hospital, Series 2004, 5.500%,
7/01/36
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 2,665,228
Revenue Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 265,008
Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%,
7/01/40
1,665 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A3 1,066,965
Revenue Bonds, Civista Medical Center, Series 2005, 5.000%,
7/01/37 - RAAI Insured
18
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,740 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 $ 1,272,027
Revenue Bonds, Doctors Community Hospital, Series 2007A, 5.000%,
7/01/29
1,400 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,023,554
Revenue Bonds, Frederick Memorial Hospital, Series 2002, 5.125%,
7/01/35
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 1,155,225
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34 - MBIA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AA 916,870
Revenue Bonds, Johns Hopkins Hospital, Howard County General
Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - MBIA Insured
1,430 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,120,777
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse
1003, 12.639%, 7/01/33 (IF)
2,000 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,014,540
Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%,
7/01/15
3,800 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 2,844,908
Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%,
7/01/33
1,175 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 1,114,464
Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%,
7/01/28 - AGC Insured
1,750 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 1,474,725
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
3,310 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 2,962,450
Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 -
BHAC Insured
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Mercy Medical Center Project, Series 2007A:
1,010 5.000%, 7/01/37 7/17 at 100.00 BBB 666,923
670 5.500%, 7/01/42 7/17 at 100.00 BBB 479,224
1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,325,354
Revenue Bonds, Peninsula Regional Medical Center, Series 2006,
5.000%, 7/01/36
3,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 2,809,268
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 A 887,050
Revenue Bonds, University of Maryland Medical System, Series
2004B, 5.000%, 7/01/24 - AMBAC Insured
2,395 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 1,705,240
Revenue Bonds, Washington County Hospital, Series 2008, 5.750%,
1/01/38
Prince George's County, Maryland, Revenue Bonds, Dimensions Health
Corporation, Series 1994:
420 5.375%, 7/01/14 1/09 at 100.00 B3 357,609
295 5.300%, 7/01/24 1/09 at 100.00 B3 200,037
------------------------------------------------------------------------------------------------------------------------------------
36,685 Total Health Care 29,618,496
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 13.0% (8.3% OF TOTAL INVESTMENTS)
1,450 Maryland Community Development Administration, FNMA Multifamily 2/11 at 101.00 Aaa 1,403,107
Development Revenue Bonds, Edgewater Village Apartments, Series
2000B, 5.800%, 8/01/20 (Alternative Minimum Tax)
2,500 Maryland Community Development Administration, Housing Revenue 1/09 at 101.00 Aa2 1,970,500
Bonds, Series 1999A, 5.350%,7/01/41 (Alternative Minimum Tax)
880 Maryland Community Development Administration, Housing Revenue 1/10 at 100.00 Aa2 814,722
Bonds, Series 1999B, 6.250%,7/01/32 (Alternative Minimum Tax)
1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 697,910
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
1,000 Maryland Economic Development Corporation, Student Housing Revenue 6/09 at 102.00 Baa3 852,970
Bonds, Collegiate Housing Foundation - Salisbury State
University, Series 1999A, 6.000%, 6/01/19
19
NMY | Nuveen Maryland Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,145 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 $ 872,444
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured
3,830 Montgomery County Housing Opportunities Commission, Maryland, 1/09 at 101.00 Aaa 3,500,505
FNMA/FHA-Insured Multifamily Housing Development Bonds, Series
1998A, 5.200%, 7/01/30
360 Montgomery County Housing Opportunities Commission, Maryland, 1/09 at 100.00 Aa2 360,414
GNMA/FHA-Insured Multifamily Housing Revenue Bonds, Series
1995A, 5.900%, 7/01/15
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 2,005,560
Multifamily Housing Development Bonds, Series 2000A, 6.100%,
7/01/30
540 Prince George's County Housing Authority, Maryland, GNMA 9/09 at 102.00 AAA 477,398
Collateralized Mortgage Revenue Bonds, University Landing
Apartments, Series 1999, 6.100%, 3/20/41 (Alternative Minimum
Tax)
Prince George's County Housing Authority, Maryland, GNMA
Collateralized Mortgage Revenue Refunding Bonds, Overlook
Apartments, Series 1995A:
2,000 5.700%, 12/20/15 12/08 at 100.00 AAA 2,001,920
1,670 5.750%, 12/20/19 12/08 at 100.00 AAA 1,670,752
------------------------------------------------------------------------------------------------------------------------------------
18,375 Total Housing/Multifamily 16,628,202
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.1% (5.8% OF TOTAL INVESTMENTS)
650 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 531,713
Housing and Community Development, Residential Revenue Bonds,
Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax)
2,510 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 2,261,610
Housing and Community Development, Residential Revenue Bonds,
Series 2008C, 5.375%, 9/01/39
1,195 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 962,812
Housing and Community Development, Residential Revenue Bonds,
Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax)
4,100 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 3,292,915
Housing and Community Development, Residential Revenue Bonds,
Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax)
1,630 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 1,236,958
Housing and Community Development, Residential Revenue Bonds,
Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax)
1,200 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 865,500
Housing and Community
Development, Residential Revenue Bonds, Series 2007D, 4.850%,
9/01/37 (Alternative Minimum Tax)
2,330 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 1,751,158
Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative
Minimum Tax)
600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 478,038
Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative
Minimum Tax)
5 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 4,875
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue
Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax)
320 Puerto Rico Housing Finance Authority, Mortgage-Backed Securities 6/13 at 100.00 AAA 235,738
Program Home Mortgage Revenue Bonds, Series 2003A, 4.875%,
6/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,540 Total Housing/Single Family 11,621,317
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.2% (0.9% OF TOTAL INVESTMENTS)
2,010 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 1,574,554
Revenue Bonds, Waste Management Inc., Series 2002, 4.600%,
4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.6% OF TOTAL INVESTMENTS)
2,455 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 1,644,801
Series 2007A, 5.000%, 1/01/37
1,000 Carroll County, Maryland, Revenue Refunding Bonds, EMA Obligated 1/09 at 101.00 BBB+ 943,370
Group, Series 1999A, 5.625%,1/01/25 - RAAI Insured
1,065 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 674,550
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
4,520 Total Long-Term Care 3,262,721
------------------------------------------------------------------------------------------------------------------------------------
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.3% (21.4% OF TOTAL INVESTMENTS)
$ 2,030 Anne Arundel County, Maryland, General Obligation Bonds, Series 4/14 at 100.00 AAA $ 2,176,586
2004, 5.000%, 4/01/16
1,000 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 1,025,250
2006, 5.000%, 3/01/21
685 Anne Arundel County, Maryland, Water and Sewer Revenue Bonds, 3/16 at 100.00 AAA 739,108
Series 2006, 5.000%, 3/01/17
Baltimore County, Maryland, Metropolitan District Special
Assessment Bonds, 67th Issue:
2,500 5.000%, 6/01/25 6/11 at 101.00 AAA 2,511,000
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,505,565
1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AA- 1,535,334
Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC
Insured
700 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 762,846
Series 2005A, 5.000%, 12/01/16
Charles County, Maryland, Consolidated General Obligation Public
Improvement Bonds, Series 2006:
2,185 5.000%, 3/01/14 No Opt. Call AA 2,396,027
820 5.000%, 3/01/16 No Opt. Call AA 899,515
Howard County, Maryland, Consolidated Public Improvement Bonds,
Series 2004B:
1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,722,110
1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,222,987
1,725 Howard County, Maryland, Metropolitan District Refunding Bonds, 2/12 at 100.00 AAA 1,789,325
Series 2002A, 5.250%, 8/15/18
1,190 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,251,237
George's County, General Obligation Bonds, Park Acquisition
and Development, Series 2004EE-2, 5.000%, 1/15/17
3,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 3,305,430
Public Improvement Bonds, Series2005A, 5.000%, 7/01/15
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 1,866,655
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,083,740
2,000 Prince George's County, Maryland, General Obligation Consolidated 9/12 at 101.00 AAA 1,971,740
Public Improvement Bonds, Series 2002, 4.100%, 9/15/19
5,770 Prince George's County, Maryland, General Obligation Consolidated 10/13 at 100.00 AAA 6,023,995
Public Improvement Bonds, Series 2003A, 5.000%, 10/01/18
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 2,174,220
1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,251,833
1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,246,597
1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,242,484
------------------------------------------------------------------------------------------------------------------------------------
40,905 Total Tax Obligation/General 42,703,584
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.9% (10.2% OF TOTAL INVESTMENTS)
300 Baltimore, Maryland, Special Obligation Bonds, North Locust Point 9/15 at 101.00 N/R 207,297
Project, Series 2005, 5.500%, 9/01/34
340 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ 298,683
Development Special Obligation Bonds, Series 2001A, 5.700%,
7/01/29 - RAAI Insured
900 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 642,258
Center Project, Series 2004, 5.750%, 7/01/34
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+ 843,386
925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 834,128
4,250 Maryland Department of Transportation, Consolidated No Opt. Call AAA 4,773,813
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
21
NMY | Nuveen Maryland Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,875 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ $ 1,944,656
Department of Transportation Headquarters Building, Series
2002, 5.375%, 6/01/19
1,700 Maryland Stadium Authority, Lease Revenue Bonds, Montgomery 6/13 at 100.00 AA+ 1,685,448
County Conference Center Facilities, Series 2003, 5.000%,
6/15/24
1,000 Montgomery County, Maryland, Lease Revenue Bonds, Metrorail 6/12 at 100.00 AA 1,005,420
Garage, Series 2002, 5.000%, 6/01/21
675 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A3 533,068
Germantown Development District, Senior Series 2002A, 5.500%,
7/01/27 - RAAI Insured
635 New Baltimore City Board of School Commissioners, Maryland, 11/10 at 100.00 AA+ 662,299
School System Revenue Bonds, Series 2000, 5.125%, 11/01/15
Puerto Rico Highway and Transportation Authority, Highway Revenue
Bonds, Series 2007N:
1,000 5.500%, 7/01/29 - AMBAC Insured No Opt. Call AA 849,160
2,500 5.250%, 7/01/31 - AMBAC Insured No Opt. Call A 1,957,400
1,000 5.250%, 7/01/33 - MBIA Insured No Opt. Call AA 770,070
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,028,033
8/01/21 - FSA Insured
1,500 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA 1,408,725
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,575 Total Tax Obligation/Limited 20,443,844
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.8% (3.1% OF TOTAL INVESTMENTS)
1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking System No Opt. Call AA 1,098,573
Facilities, Series 1998A, 5.250%,7/01/17 - FGIC Insured
4,335 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 4,201,309
Facilities Projects, Series2007, 5.000%, 7/01/30 - FSA Insured
(UB)
2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/08 at 100.00 CCC+ 835,188
American Airlines Inc., Series1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,470 Total Transportation 6,135,070
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.4% (15.6% OF TOTAL INVESTMENTS) (4)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 1,969,220
Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA (4) 2,016,540
Projects, Series 1994A, 5.000%,7/01/24 - FGIC Insured (ETM)
1,245 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 1,382,983
2006C, 5.000%, 7/01/31(Pre-refunded 7/01/16) - AMBAC Insured
Frederick County, Maryland, Educational Facilities Revenue Bonds,
Mount St. Mary's College, Series 2001A:
200 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 211,794
200 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 211,918
3,000 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 3,104,730
Bonds, Series 1999, 5.250%,7/01/18 (Pre-refunded 7/01/09)
275 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ (4) 297,300
Development Special Obligation Bonds, Series 2001A, 5.700%,
7/01/29 (Pre-refunded 7/01/10) - RAAI Insured
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,860 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding and No Opt. Call AAA $ 2,028,423
Improvement Bonds, Shady Grove Adventist Hospital, Series
1995, 6.500%, 9/01/12 - FSA Insured (ETM)
575 Howard County, Maryland, Consolidated Public Improvement 2/12 at 100.00 AAA 626,589
Refunding Bonds, Series 2002A, 5.250%, 8/15/18 (Pre-refunded
2/15/12)
Maryland Economic Development Corporation, Health and Mental
Hygiene Providers Revenue Bonds, Series 1996A:
870 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 982,247
660 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R (4) 745,153
2,250 Maryland Economic Development Corporation, Student Housing 6/09 at 102.00 Baa2 (4) 2,347,650
Revenue Bonds, Collegiate Housing Foundation - College Park,
Series 1999A, 5.750%, 6/01/24 (Pre-refunded 6/01/09)
3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call A (4) 3,224,960
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 -
AMBAC Insured (ETM)
3,125 Maryland Health and Higher Educational Facilities Authority, 2/09 at 100.00 Aaa 3,206,406
Revenue Bonds, Howard County
General Hospital, Series 1993, 5.500%, 7/01/25 (ETM)
2,040 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 2,242,286
Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%,
7/01/34 (Pre-refunded 7/01/14)
1,500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A (4) 1,669,125
Revenue Bonds, University of Maryland Medical System, Series
2002, 6.000%, 7/01/22 (Pre-refunded 7/01/12)
195 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 223,534
Transportation Facilities Projects, First Series 1978, 6.800%,
7/01/16 (ETM)
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,019,920
Obligation Bonds, Series 2000A, 5.500%, 10/01/20
1,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa 1,155,720
Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16)
385 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 401,928
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded
7/01/10)
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (4) 2,189,780
Loan Note, Series 1999A, 6.500%,10/01/24 (Pre-refunded
10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
29,580 Total U.S. Guaranteed 31,258,206
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.9% (2.5% OF TOTAL INVESTMENTS)
2,500 Maryland Energy Financing Administration, Revenue Bonds, AES 2/09 at 100.00 N/R 2,101,700
Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative
Minimum Tax)
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/14 at 100.00 AA 2,963,205
2004PP, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,000 Total Utilities 5,064,905
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.7% (2.4% OF TOTAL INVESTMENTS)
1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System No Opt. Call AA 1,011,968
Projects, Series 1994A, 5.000%,7/01/24 - FGIC Insured
1,655 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 1,606,939
2006C, 5.000%, 7/01/31 - AMBAC Insured
23
NMY | Nuveen Maryland Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,260 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA $ 1,160,069
2007D, 5.000%, 7/01/32 - AMBAC Insured
860 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 948,038
Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
4,820 Total Water and Sewer 4,727,014
------------------------------------------------------------------------------------------------------------------------------------
$ 216,960 Total Investments (cost $219,008,223) - 155.9% 199,985,241
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.7)% (2,167,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 7.5% 9,565,782
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (61.7)% (5) (79,100,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 128,284,023
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 39.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
24
NFM | Nuveen Maryland Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.8% (2.3% OF TOTAL INVESTMENTS)
$ 2,115 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,249,859
Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured
310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 180,761
Revenue Bonds, Series 2006B, 5.875%, 9/01/39
650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 370,864
Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%,
12/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,075 Total Consumer Discretionary 1,801,484
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.3% OF TOTAL INVESTMENTS)
1,430 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,036,750
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.7% (7.8% OF TOTAL
INVESTMENTS)
645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 557,944
Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
980 Maryland Economic Development Corporation, Utility Infrastructure 7/11 at 100.00 A 959,459
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, 7/09 at 101.00 BBB- 1,097,100
Educational Facilities Leasehold Mortgage Revenue Bonds,
McLean School, Series 2001, 6.000%, 7/01/31
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 417,760
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
565 Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Maryland Institute College of Art, Series 2007, 6/17 at 100.00 Baa1 381,974
5.000%, 6/01/36
475 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 334,780
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
615 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 614,447
Bonds, Montgomery College Arts Center Project, Series 2005A,
5.000%, 5/01/20
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- 182,109
410 5.375%, 2/01/29 2/09 at 101.00 BBB- 296,139
600 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 610,278
Bonds, Series 2006A, 5.000%, 10/01/22
900 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 612,891
McDaniel College, Series 2006, 4.500%, 11/01/36
------------------------------------------------------------------------------------------------------------------------------------
7,405 Total Education and Civic Organizations 6,064,881
------------------------------------------------------------------------------------------------------------------------------------
25
NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 35.5% (21.9% OF TOTAL INVESTMENTS)
$ 1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 1,025,550
Revenue Bonds, University of Maryland Medical System, Series
2006, 5.000%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AAA 911,710
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/28 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 102.00 A2 816,910
Revenue Bonds, Calvert Memorial Hospital, Series 1998, 5.000%,
7/01/28
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 889,020
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 265,008
Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%,
7/01/40
750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A3 480,615
Revenue Bonds, Civista Medical Center, Series 2005, 5.000%,
7/01/37 - RAAI Insured
710 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 519,046
Revenue Bonds, Doctors Community Hospital, Series 2007A,
5.000%, 7/01/29
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 365,555
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 500,598
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34 - MBIA Insured
1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 A+ 1,170,638
Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%,
5/15/21
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 458,500
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse
1003, 12.639%, 7/01/33 (IF)
2,225 Maryland Health and Higher Educational Facilities Authority, 6/09 at 101.00 A+ 2,241,176
Revenue Bonds, Kaiser Permanente System, Series 1998A, 5.375%,
7/01/15
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 748,660
Revenue Bonds, Kennedy Krieger Institute, Series 2003, 5.500%,
7/01/33
485 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 460,013
Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%,
7/01/28 - AGC Insured
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 589,890
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,360 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 1,217,200
Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 -
BHAC Insured
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Mercy Medical Center Project, Series 2007A:
415 5.000%, 7/01/37 7/17 at 100.00 BBB 274,033
270 5.500%, 7/01/42 7/17 at 100.00 BBB 193,120
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 772,750
Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%,
7/01/31
700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 545,734
Revenue Bonds, Peninsula Regional Medical Center, Series 2006,
5.000%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities Authority, 7/15 at 100.00 A3 768,920
Revenue Bonds, Union Hospital of Cecil County, Series 2005,
5.000%, 7/01/35
980 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 697,760
Revenue Bonds, Washington County Hospital, Series 2008,
5.750%, 1/01/38
570 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 A3 506,069
Revenue Refunding Bonds, Union Hospital of Cecil County,
Series 1998, 5.100%, 7/01/22
700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/09 at 100.00 B3 474,663
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
20,575 Total Health Care 16,893,138
------------------------------------------------------------------------------------------------------------------------------------
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 18.0% (11.1% OF TOTAL INVESTMENTS)
$ 2,000 Maryland Community Development Administration, Housing Revenue 1/09 at 101.00 Aa2 $ 1,651,100
Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax)
1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 831,330
Housing Revenue Bonds, Princess Anne Apartments, Series 2001D,
5.450%, 12/15/33 (Alternative Minimum Tax)
Maryland Economic Development Corporation, Senior Lien Student
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A:
215 4.250%, 10/01/10 No Opt. Call B2 201,079
50 5.000%, 10/01/15 10/13 at 100.00 B2 40,829
210 5.625%, 10/01/23 10/13 at 100.00 B2 146,561
1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 N/R 1,214,874
Revenue Bonds, Sheppard Pratt University Village, Series 2001,
6.000%, 7/01/33 - ACA Insured
475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 361,931
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured
750 Montgomery County Housing Opportunities Commission, Maryland, 1/09 at 101.00 Aaa 622,133
FNMA/FHA-Insured Multifamily Housing Development Bonds, Series
1998A, 5.250%, 7/01/29 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/10 at 100.00 Aaa 1,856,500
Multifamily Housing Development Bonds, Series 2000B, 6.200%,
7/01/30 (Alternative Minimum Tax)
2,000 Montgomery County Housing Opportunities Commission, Maryland, 7/11 at 100.00 Aaa 1,635,140
Multifamily Housing Development Bonds, Series 2001A, 5.600%,
7/01/42 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,500 Total Housing/Multifamily 8,561,477
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.2% (6.3% OF TOTAL INVESTMENTS)
250 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 204,505
Housing and Community Development, Residential Revenue Bonds,
Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax)
985 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 887,524
Housing and Community Development, Residential Revenue Bonds,
Series 2008C, 5.375%, 9/01/39
300 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 241,710
Housing and Community Development, Residential Revenue Bonds,
Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax)
1,200 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 963,780
Housing and Community Development, Residential Revenue Bonds,
Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax)
815 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 618,479
Housing and Community Development, Residential Revenue Bonds,
Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax)
500 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 360,625
Housing and Community Development, Residential Revenue Bonds,
Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax)
470 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 391,364
Revenue Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative
Minimum Tax)
970 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 729,023
Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative
Minimum Tax)
600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 478,038
Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,090 Total Housing/Single Family 4,875,048
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.6% (1.6% OF TOTAL INVESTMENTS)
410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 321,178
Revenue Bonds, Waste Management Inc., Series 2002, 4.600%,
4/01/16 (Alternative Minimum Tax)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 1/09 at 101.00 BBB 935,590
Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,410 Total Industrials 1,256,768
------------------------------------------------------------------------------------------------------------------------------------
27
NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2% (2.0% OF TOTAL INVESTMENTS)
$ 850 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ $ 569,483
Series 2007A, 5.000%, 1/01/37
300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 212,424
Revenue Bonds, Edenwald, Series2006A, 5.400%, 1/01/31
720 Maryland Health and Higher Educational Facilities Authority, 1/17 at 100.00 N/R 477,389
Revenue Bonds, King Farm Presbyterian Community, Series 2007A,
5.250%, 1/01/27
440 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 278,687
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,310 Total Long-Term Care 1,537,983
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.0% (13.5% OF TOTAL INVESTMENTS)
565 Anne Arundel County, Maryland, General Obligation Bonds, Series 3/16 at 100.00 AAA 579,266
2006, 5.000%, 3/01/21
3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,495,797
Assessment Bonds, 67th Issue, 5.000%, 6/01/27
300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 326,934
Series 2005A, 5.000%, 12/01/16
600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 650,976
5.000%, 8/01/16 - MBIA Insured
1,360 Howard County, Maryland, Consolidated Public Improvement Bonds, 2/09 at 101.00 AAA 1,363,006
Series 2001A, 4.750%, 2/15/21
1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,051,460
George's County, General Obligation Bonds, Park Acquisition
and Development, Series 2004EE-2, 5.000%, 1/15/17
1,360 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,493,919
Public Improvement Bonds, Series2006, 5.000%, 5/01/16
740 Ocean City, Maryland, General Obligation Bonds, Series 2001, 3/11 at 101.00 AA 742,346
4.875%, 3/01/19 - FGIC Insured
700 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 760,977
George's Counties, Maryland, Sewerage Disposal Bonds, Series
2005, 5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
10,125 Total Tax Obligation/General 10,464,681
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.8% (11.0% OF TOTAL INVESTMENTS)
465 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 449,785
Bonds, Parole Town Center Project, Series 2002, 5.000%, 7/01/12
350 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 249,767
Center Project, Series 2004, 5.750%, 7/01/34
1,500 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,684,875
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,457,196
Department of Transportation Headquarters Building, Series
2002, 5.375%, 6/01/19
370 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 397,251
Montgomery County Town Square Parking Garage, Series 2002A,
5.000%, 9/15/13
740 Prince George's County, Maryland, Lease Revenue Bonds, Upper 6/13 at 100.00 AA+ 791,519
Marlboro Justice Center, Series2003A, 5.000%, 6/30/14 - MBIA
Insured
895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 470,698
National Harbor Project, Series2005, 5.200%, 7/01/34
450 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 236,817
Victoria Falls Project, Series2005, 5.250%, 7/01/35
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call A 782,960
Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA $ 657,405
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,303,842
Loan Note, Series 1999A, 6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
9,165 Total Tax Obligation/Limited 8,482,115
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7% (2.9% OF TOTAL INVESTMENTS)
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A 520,813
Parking Facilities Revenue Bonds, Johns Hopkins Hospital,
Series 2001, 5.000%, 7/01/27 - AMBAC Insured
1,785 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,729,951
Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA
Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
2,435 Total Transportation 2,250,764
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.4% (15.6% OF TOTAL INVESTMENTS) (4)
1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA (4) 999,379
Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM)
215 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 238,828
2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured
Frederick County, Maryland, Educational Facilities Revenue Bonds,
Mount St. Mary's College, Series 2001A:
465 5.700%, 9/01/20 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 492,133
500 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 529,485
500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 553,160
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11)
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 643,009
Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%,
7/01/34 (Pre-refunded 7/01/14)
625 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 672,606
Revenue Bonds, Maryland Institute College of Art, Series 2001,
5.500%, 6/01/32 (Pre-refunded 6/01/11)
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) 2,144,180
Revenue Bonds, University of Maryland Medical System, Series
2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11)
710 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 813,894
Transportation Facilities Projects, First Series 1978, 6.800%,
7/01/16 (ETM)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
2,300 5.500%, 10/01/32 10/10 at 101.00 AAA 2,299,816
1,700 5.500%, 10/01/40 10/10 at 101.00 AAA 1,689,749
960 Puerto Rico, The Children's Trust Fund, Tobacco Settlement
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/10 at 100.00 AAA 1,002,211
7/01/10)
------------------------------------------------------------------------------------------------------------------------------------
11,575 Total U.S. Guaranteed 12,078,450
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 2/09 at 100.00 N/R 840,680
Warrior Run Project, Series 1995, 7.400%, 9/01/19 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
29
NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.4% (1.5% OF TOTAL INVESTMENTS)
$ 285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA $ 276,724
2006C, 5.000%, 7/01/31 - AMBAC Insured
540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 497,173
2007D, 5.000%, 7/01/32 - AMBAC Insured
355 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 391,341
Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,180 Total Water and Sewer 1,165,238
------------------------------------------------------------------------------------------------------------------------------------
$ 88,275 Total Investments (cost $88,365,372) - 162.4% 77,309,457
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.9)% (893,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.7% 3,184,315
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (67.2)% (5) (32,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 47,600,772
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 41.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
30
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.9% (2.4% OF TOTAL INVESTMENTS)
$ 2,320 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,371,004
Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured
310 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 180,761
Revenue Bonds, Series 2006B, 5.875%, 9/01/39
650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 370,864
Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%,
12/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,280 Total Consumer Discretionary 1,922,629
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS)
720 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 522,000
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
800 Tobacco Settlement Financing Corporation, Virgin Islands, Tobacco 5/11 at 100.00 Baa3 587,760
Settlement Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
1,520 Total Consumer Staples 1,109,760
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.9% (9.8% OF TOTAL
INVESTMENTS)
1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 1,021,801
Bonds, Community College Project, Series 2002, 5.125%, 9/01/22
500 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 332,125
Mount Saint Mary's College, Series 2006, 5.625%, 9/01/38
645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 557,944
Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
250 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 BBB- 182,850
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 390,967
Revenue Bonds, Bullis School, Series 2000, 5.250%, 7/01/30 -
FSA Insured
500 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 417,760
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
750 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 532,388
Revenue Bonds, Maryland Institute College of Art, Series 2006,
5.000%, 6/01/30
565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 381,974
Revenue Bonds, Maryland Institute College of Art, Series 2007,
5.000%, 6/01/36
500 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 352,400
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
590 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 603,635
Bonds, Montgomery College Arts Center Project, Series 2005A,
5.000%, 5/01/18
500 Morgan State University, Maryland, Student Tuition and Fee 7/12 at 100.00 AA 491,680
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 AA 500,790
Revenue Bonds, Academic Fees and Auxiliary Facilities, Series
2003A, 5.000%, 7/01/20 - FGIC Insured
31
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,140 University of Maryland, Auxiliary Facility and Tuition Revenue 4/11 at 100.00 AA+ $ 1,145,803
Bonds, Series 2001B, 4.500%, 4/01/19
650 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 661,135
Bonds, Series 2006A, 5.000%, 10/01/22
200 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 160,942
McDaniel College, Series 2006, 5.000%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
8,805 Total Education and Civic Organizations 7,734,194
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 28.2% (17.4% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AAA 873,140
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 656,107
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 889,020
Revenue Bonds, Carroll County General Hospital, Series 2002,
6.000%, 7/01/26
750 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A3 480,615
Revenue Bonds, Civista Medical Center, Series 2005, 5.000%,
7/01/37 - RAAI Insured
715 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 522,701
Revenue Bonds, Doctors Community Hospital, Series 2007A,
5.000%, 7/01/29
500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 365,555
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 500,598
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34 - MBIA Insured
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 458,500
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse
1003, 12.639%, 7/01/33 (IF)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 748,660
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
480 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 455,270
Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%,
7/01/28 - AGC Insured
700 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 589,890
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,360 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 1,217,200
Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 -
BHAC Insured
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Mercy Medical Center Project, Series 2007A:
415 5.000%, 7/01/37 7/17 at 100.00 BBB 274,033
280 5.500%, 7/01/42 7/17 at 100.00 BBB 200,273
1,500 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 1,159,125
Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%,
7/01/31
700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 545,734
Revenue Bonds, Peninsula Regional Medical Center, Series
2006, 5.000%, 7/01/36
1,500 Maryland Health and Higher Educational Facilities Authority, 7/15 at 100.00 A3 1,129,185
Revenue Bonds, Union Hospital of Cecil County, Series 2005,
5.000%, 7/01/40
980 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 697,760
Revenue Bonds, Washington County Hospital, Series 2008,
5.750%, 1/01/38
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,610 Montgomery County, Maryland, Economic Development Revenue Bonds, 12/11 at 100.00 AA $ 1,492,889
Trinity Healthcare Group, Series 2001, 5.125%, 12/01/22
700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/09 at 100.00 B3 474,663
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
17,200 Total Health Care 13,730,918
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.5% (5.9% OF TOTAL INVESTMENTS)
10 Maryland Community Development Administration, Insured 5/11 at 100.00 Aa2 9,168
Multifamily Housing Mortgage Loan Revenue Bonds, Series
2001A, 5.100%, 5/15/28
3,145 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 2,614,532
Development Revenue Bonds, Waters Towers Senior Apartments,
Series 2001F, 5.450%, 12/15/33 (Alternative Minimum Tax)
1,110 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 922,776
Housing Revenue Bonds, Princess Anne Apartments, Series
2001D, 5.450%, 12/15/33 (Alternative Minimum Tax)
1,000 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 697,910
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
520 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 396,219
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
5,785 Total Housing/Multifamily 4,640,605
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.4% (6.4% OF TOTAL INVESTMENTS)
250 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 204,505
Housing and Community Development, Residential Revenue Bonds,
Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax)
1,030 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 928,071
Housing and Community Development, Residential Revenue Bonds,
Series 2008C, 5.375%, 9/01/39
300 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 241,710
Housing and Community Development, Residential Revenue Bonds,
Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax)
1,000 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 803,150
Housing and Community Development, Residential Revenue Bonds,
Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax)
815 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 618,479
Housing and Community Development, Residential Revenue Bonds,
Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax)
500 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 360,625
Housing and Community Development, Residential Revenue Bonds,
Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax)
845 Maryland Community Development Administration, Residential 9/10 at 100.00 Aa2 693,813
Revenue Bonds, Series 2001H, 5.350%, 9/01/32 (Alternative
Minimum Tax)
970 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 729,023
Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative
Minimum Tax)
600 Maryland Community Development Administration, Residential 9/15 at 100.00 Aa2 478,038
Revenue Bonds, Series 2006B, 4.750%, 9/01/25 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,310 Total Housing/Single Family 5,057,414
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.9% (1.8% OF TOTAL INVESTMENTS)
410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 321,178
Revenue Bonds, Waste Management Inc., Series 2002, 4.600%,
4/01/16 (Alternative Minimum Tax)
1,150 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 1/09 at 101.00 BBB 1,075,929
Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,560 Total Industrials 1,397,107
------------------------------------------------------------------------------------------------------------------------------------
33
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.3% (2.0% OF TOTAL INVESTMENTS)
$ 860 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ $ 576,183
Series 2007A, 5.000%, 1/01/37
300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 212,424
Revenue Bonds, Edenwald, Series2006A, 5.400%, 1/01/31
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, King Farm Presbyterian Community, Series 2007A:
500 5.000%, 1/01/17 No Opt. Call N/R 393,945
220 5.250%, 1/01/27 1/17 at 100.00 N/R 145,869
435 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 275,520
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,315 Total Long-Term Care 1,603,941
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.6% (16.5% OF TOTAL INVESTMENTS)
750 Anne Arundel County, Maryland, General Obligation Bonds, 8/09 at 101.00 AAA 754,823
Consolidated Water and Sewerage, Series 1999, 4.500%, 8/01/19
300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 326,934
Series 2005A, 5.000%, 12/01/16
Cecil County, Maryland, Consolidated General Obligation Public
Improvement Bonds, Series 2001B:
975 4.600%, 8/01/18 8/11 at 101.00 AA- 997,250
1,020 4.600%, 8/01/19 8/11 at 101.00 AA- 1,034,025
600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 650,976
5.000%, 8/01/16 - MBIA Insured
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA 518,170
Improvement Bonds, Series 2001, 4.750%, 12/01/19
1,000 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,101,810
Public Improvement Bonds, Series2005A, 5.000%, 7/01/15
4,730 Montgomery County, Maryland, Consolidated General Obligation 10/11 at 101.00 AAA 4,928,044
Public Improvement Refunding Bonds, Series 2001, 5.250%,
10/01/18
770 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 718,533
Series 2001, 5.000%, 7/01/24 - FSA Insured
800 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 869,688
George's Counties, Maryland, Sewerage Disposal Bonds, Series
2005, 5.000%, 6/01/16
1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,087,110
George's Counties, Maryland, Water Supply Bonds, Series 2005,
5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
12,455 Total Tax Obligation/General 12,987,363
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.5% (12.1% OF TOTAL INVESTMENTS)
465 Anne Arundel County, Maryland, Tax Increment Financing Revenue No Opt. Call N/R 449,785
Bonds, Parole Town Center Project, Series 2002, 5.000%,
7/01/12
530 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 562,023
Bonds, City Public School System, Series 2003A, 5.000%,
5/01/15
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+ 1,597,269
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,667,087
110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ 96,633
Development Special Obligation Bonds, Series 2001A, 5.700%,
7/01/29 - RAAI Insured
350 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 249,767
Center Project, Series 2004, 5.750%, 7/01/34
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA $ 1,123,250
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,457,196
Department of Transportation Headquarters Building, Series
2002, 5.375%, 6/01/19
1,000 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A3 789,730
Germantown Development District, Senior Series 2002A, 5.500%,
7/01/27 - RAAI Insured
895 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 470,698
National Harbor Project, Series2005, 5.200%, 7/01/34
475 Prince George's County, Maryland, Special Tax District Bonds, 7/13 at 100.00 N/R 249,974
Victoria Falls Project, Series2005, 5.250%, 7/01/35
1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 782,960
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,470 Total Tax Obligation/Limited 9,496,372
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 6.1% (3.8% 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 A 520,813
1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 A 744,840
1,780 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 1,725,105
Facilities Projects, Series2007, 5.000%, 7/01/30 - FSA
Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
3,430 Total Transportation 2,990,758
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.4% (16.9% OF TOTAL INVESTMENTS) (4)
1,000 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,032,700
Public Improvement Bonds, Series2002, 5.000%, 8/01/18
(Pre-refunded 8/01/12)
215 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 238,828
2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
100 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 105,897
100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 105,959
90 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ (4) 97,298
Development Special Obligation Bonds, Series 2001A, 5.700%,
7/01/29 (Pre-refunded 7/01/10) - RAAI Insured
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001A:
31 6.750%, 4/01/20 (Pre-refunded 4/01/09) 4/09 at 100.00 N/R (4) 31,421
25 6.750%, 4/01/23 (Pre-refunded 4/01/11) 4/11 at 101.00 N/R (4) 27,658
1,260 Maryland Health and Higher Educational Facilities Authority, No Opt. Call A (4) 1,358,784
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 -
AMBAC Insured (ETM)
525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 577,059
Revenue Bonds, LifeBridge Health System, Series 2004A,
5.125%, 7/01/34 (Pre-refunded 7/01/14)
1,250 Maryland Health and Higher Educational Facilities Authority, 6/11 at 100.00 Baa1 (4) 1,345,213
Revenue Bonds, Maryland Institute College of Art, Series
2001, 5.500%, 6/01/32 (Pre-refunded 6/01/11)
2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) 2,144,179
Revenue Bonds, University of Maryland Medical System, Series
2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11)
35
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA $ 1,146,330
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (ETM)
1,000 Prince George's County, Maryland, General Obligation 12/11 at 101.00 AAA 1,098,840
Consolidated Public Improvement Bonds, Series 2001, 5.250%,
12/01/20 (Pre-refunded 12/01/11) - FGIC Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,981,909
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,057,880
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
------------------------------------------------------------------------------------------------------------------------------------
12,596 Total U.S. Guaranteed 13,349,955
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.3% (2.0% OF TOTAL INVESTMENTS)
1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/09 at 101.00 AA 764,050
10/01/34 - MBIA Insured
1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 2/09 at 100.00 N/R 840,680
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Utilities 1,604,730
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.4% (1.5% OF TOTAL INVESTMENTS)
285 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 276,724
2006C, 5.000%, 7/01/31 - AMBAC Insured
540 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 497,173
2007D, 5.000%, 7/01/32 - AMBAC Insured
355 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 391,341
Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,180 Total Water and Sewer 1,165,238
------------------------------------------------------------------------------------------------------------------------------------
$ 88,906 Total Investments (cost $88,954,826) - 161.7% 78,790,984
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (890,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.8% 2,838,368
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (65.7)% (5) (32,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 48,739,352
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 40.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
36
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.2% (2.0% OF TOTAL INVESTMENTS)
$ 2,385 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,409,416
Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insured
380 Baltimore, Maryland, Subordinate Lien Convention Center Hotel 9/16 at 100.00 Ba1 221,578
Revenue Bonds, Series 2006B, 5.875%, 9/01/39
700 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 399,392
Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%,
12/01/31
------------------------------------------------------------------------------------------------------------------------------------
3,465 Total Consumer Discretionary 2,030,386
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.9% (1.8% OF TOTAL INVESTMENTS)
2,500 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 1,812,500
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.6% (7.9% OF TOTAL
INVESTMENTS)
225 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 209,005
Bonds, Community College Project, Series 2002, 5.125%, 9/01/22
625 Frederick County, Maryland, Educational Facilities Revenue 9/16 at 100.00 BBB- 415,156
Bonds, Mount Saint Mary's College, Series 2006, 5.625%,
9/01/38
690 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 596,871
Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 522,200
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 929,330
Revenue Bonds, Johns Hopkins University, Series 2002A,
5.000%, 7/01/32
925 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 656,611
Revenue Bonds, Maryland Institute College of Art, Series
2006, 5.000%, 6/01/30
625 Maryland Industrial Development Financing Authority, Revenue 5/15 at 100.00 N/R 440,500
Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
710 Montgomery County Revenue Authority, Maryland, Lease Revenue 5/15 at 100.00 A1 726,408
Bonds, Montgomery College Arts Center Project, Series 2005A,
5.000%, 5/01/18
1,000 Morgan State University, Maryland, Student Tuition and Fee 7/13 at 100.00 AA 901,370
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+ 982,922
Bonds, Series 2001B, 4.625%, 4/01/21
800 University of Maryland, Auxiliary Facility and Tuition Revenue 10/16 at 100.00 AA+ 813,704
Bonds, Series 2006A, 5.000%, 10/01/22
890 Westminster, Maryland, Educational Facilities Revenue Bonds, 11/16 at 100.00 BBB+ 716,192
McDaniel College, Series 2006, 5.000%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
9,100 Total Education and Civic Organizations 7,910,269
------------------------------------------------------------------------------------------------------------------------------------
37
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.4% (17.2% OF TOTAL INVESTMENTS)
$ 700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A $ 558,978
Revenue Bonds, University of Maryland Medical System, Series
2006, 5.000%, 7/01/31
1,000 Maryland Health and Higher Educational Facilities Authority, 1/09 at 101.00 AAA 873,140
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
775 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 656,107
Revenue Bonds, Calvert Memorial Hospital, Series 2004,
5.500%, 7/01/36
1,250 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 1,025,088
Revenue Bonds, Carroll County General Hospital, Series 2002,
5.800%, 7/01/32
1,750 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 Baa1 1,159,410
Revenue Bonds, Carroll Hospital Center, Series 2006, 5.000%,
7/01/40
870 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A3 557,513
Revenue Bonds, Civista Medical Center, Series 2005, 5.000%,
7/01/37 - RAAI Insured
885 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 646,979
Revenue Bonds, Doctors Community Hospital, Series 2007A,
5.000%, 7/01/29
700 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 511,777
Revenue Bonds, Frederick Memorial Hospital, Series 2002,
5.125%, 7/01/35
800 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A+ 616,120
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34 - MBIA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 A+ 936,510
Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%,
5/15/21
735 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 576,064
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse
1003, 12.639%, 7/01/33 (IF)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 748,660
Revenue Bonds, Kennedy Krieger Institute, Series 2003,
5.500%, 7/01/33
595 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 AAA 564,346
Revenue Bonds, LifeBridge Health System, Series 2008, 5.000%,
7/01/28 - AGC Insured
900 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 A- 758,430
Revenue Bonds, MedStar Health, Series 2004, 5.375%, 8/15/24
1,690 Maryland Health and Higher Educational Facilities Authority, 5/16 at 100.00 AAA 1,512,550
Revenue Bonds, MedStar Health, Series 2007, 5.250%, 5/15/46 -
BHAC Insured
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, Mercy Medical Center Project, Series 2007A:
525 5.000%, 7/01/37 7/17 at 100.00 BBB 346,668
340 5.500%, 7/01/42 7/17 at 100.00 BBB 243,188
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 502,288
Revenue Bonds, Mercy Medical Center, Series 2001, 5.625%,
7/01/31
850 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 662,677
Revenue Bonds, Peninsula Regional Medical Center, Series
2006, 5.000%, 7/01/36
1,845 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 A3 1,594,800
Revenue Bonds, Union Hospital of Cecil County, Series 2002,
5.625%, 7/01/32
1,220 Maryland Health and Higher Educational Facilities Authority, 1/18 at 100.00 BBB- 868,640
Revenue Bonds, Washington County Hospital, Series 2008,
5.750%, 1/01/38
775 Maryland Health and Higher Educational Facilities Authority, 1/13 at 101.00 Baa2 637,166
Revenue Refunding Bonds, Adventist Healthcare, Series 2003A,
5.750%, 1/01/25
900 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/09 at 100.00 B3 610,281
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
21,755 Total Health Care 17,167,380
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 15.9% (10.0% OF TOTAL INVESTMENTS)
$ 980 Maryland Community Development Administration, Housing Revenue 7/12 at 100.00 Aa2 $ 743,585
Bonds, Series 2002B, 4.950%, 7/01/32 (Alternative Minimum Tax)
1,250 Maryland Economic Development Corporation, Senior Lien Student 10/13 at 100.00 B2 872,388
Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
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 N/R 15,503
150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 N/R 101,240
475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 361,931
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/33 - CIFG Insured
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 407,483
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 2,282,520
4,860 Prince George's County Housing Authority, Maryland, GNMA 11/12 at 100.00 AAA 5,189,800
Collateralized Mortgage Revenue Bonds, Fairview and Hillside
Projects, Series 2002A, 4.700%, 11/20/22
------------------------------------------------------------------------------------------------------------------------------------
11,250 Total Housing/Multifamily 9,974,450
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.7% (4.8% OF TOTAL INVESTMENTS)
350 Maryland Community Development Administration Department of 3/17 at 100.00 Aa2 286,307
Housing and Community Development, Residential Revenue Bonds,
Series 2007H, 5.000%, 9/01/27 (Alternative Minimum Tax)
1,280 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 1,153,331
Housing and Community Development, Residential Revenue Bonds,
Series 2008C, 5.375%, 9/01/39
595 Maryland Community Development Administration, Department of 9/15 at 100.00 Aa2 479,392
Housing and Community Development, Residential Revenue Bonds,
Series 2006F, 4.900%, 9/01/26 (Alternative Minimum Tax)
1,200 Maryland Community Development Administration, Department of 3/16 at 100.00 Aa2 963,780
Housing and Community Development, Residential Revenue Bonds,
Series 2006I, 4.875%, 9/01/26 (Alternative Minimum Tax)
815 Maryland Community Development Administration, Department of 9/16 at 100.00 Aa2 618,479
Housing and Community Development, Residential Revenue Bonds,
Series 2006L, 4.900%, 9/01/31 (Alternative Minimum Tax)
620 Maryland Community Development Administration, Department of 3/17 at 100.00 Aa2 447,175
Housing and Community Development, Residential Revenue Bonds,
Series 2007D, 4.850%, 9/01/37 (Alternative Minimum Tax)
1,160 Maryland Community Development Administration, Residential 9/14 at 100.00 Aa2 871,821
Revenue Bonds, Series 2005E, 4.900%, 9/01/36 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,020 Total Housing/Single Family 4,820,285
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.2% (1.4% OF TOTAL INVESTMENTS)
510 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 399,514
Revenue Bonds, Waste Management Inc., Series 2002, 4.600%,
4/01/16 (Alternative Minimum Tax)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, Resource 1/09 at 101.00 BBB 935,590
Recovery Revenue Bonds, RESCO Retrofit Project, Series 1998,
4.750%, 1/01/12 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,510 Total Industrials 1,335,104
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.0% (1.9% OF TOTAL INVESTMENTS)
1,050 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 703,479
Series 2007A, 5.000%, 1/01/37
400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 283,232
Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31
39
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Maryland Health and Higher Educational Facilities Authority,
Revenue Bonds, King Farm Presbyterian Community, Series 2007A:
$ 280 5.000%, 1/01/17 No Opt. Call N/R $ 220,609
520 5.250%, 1/01/27 1/17 at 100.00 N/R 344,781
540 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 342,025
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------------
2,790 Total Long-Term Care 1,894,126
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.0% (12.6% OF TOTAL INVESTMENTS)
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,027,450
Refunding Bonds, Series 2002, 4.375%, 4/01/17
380 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 414,116
Series 2005A, 5.000%, 12/01/16
1,260 Charles County, Maryland, Consolidated General Obligation Public 1/12 at 101.00 AA 1,305,977
Improvement Bonds, Series 2002, 4.400%, 1/15/16
710 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 770,322
5.000%, 8/01/16 - MBIA Insured
1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,051,460
George's County, General Obligation Bonds, Park Acquisition
and Development, Series 2004EE-2, 5.000%, 1/15/17 No Opt. Call AAA 2,038,349
1,850 Montgomery County, Maryland, Consolidated General Obligation
Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15
1,440 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,581,797
Public Improvement Bonds, Series 2006, 5.000%, 5/01/16
1,000 Prince George's County, Maryland, General Obligation No Opt. Call AAA 1,075,630
Consolidated Public Improvement Bonds, Series 2004C,
5.000%, 12/01/11
1,000 St. Mary's County, Maryland, General Obligation Hospital Bonds, No Opt. Call AA 1,085,460
Series 2002, 5.000%, 10/01/12
1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,087,110
George's Counties, Maryland, Sewerage Disposal Bonds,
Series 2005, 5.000%, 6/01/16
1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,087,110
George's Counties, Maryland, Water Supply Bonds, Series 2005,
5.000%, 6/01/16
------------------------------------------------------------------------------------------------------------------------------------
11,640 Total Tax Obligation/General 12,524,781
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.6% (21.7% OF TOTAL INVESTMENTS)
1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,060,420
Bonds, City Public School System, Series 2003A, 5.000%, 5/01/15
135 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ 127,819
Development Special Obligation Bonds, Series 2001A, 5.600%,
7/01/20 - RAAI Insured
450 Hyattsville, Maryland, Special Obligation Bonds, University Town 7/14 at 102.00 N/R 321,129
Center Project, Series 2004, 5.750%, 7/01/34
5,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,616,246
Transportation Revenue Bonds, Series 2002, 5.500%, 2/01/16
2,200 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 2,134,242
Department of Transportation
Headquarters Building, Series 2002, 4.750%, 6/01/22
450 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 483,143
Montgomery County Town Square Parking Garage, Series 2002A,
5.000%, 9/15/13
2,935 Maryland Economic Development Corporation, Lease Revenue Bonds, 9/12 at 100.00 AA+ 3,108,605
Montgomery County Wayne Avenue Parking Project, Series 2002A,
5.250%, 9/15/16
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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+ $ 1,475,021
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,614,978
1,210 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 636,363
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 302,600
Victoria Falls Project, Series 2005, 5.250%, 7/01/35
1,200 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 939,552
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
Puerto Rico Public Buildings Authority, Guaranteed Government
Facilities Revenue Bonds, Series 2002G:
1,000 5.250%, 7/01/17 7/12 at 100.00 BBB- 943,110
1,205 5.250%, 7/01/20 7/12 at 100.00 BBB- 1,084,500
1,275 5.250%, 7/01/21 7/12 at 100.00 BBB- 1,132,761
700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AA 657,405
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,420 Total Tax Obligation/Limited 21,637,894
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.4% (2.1% OF TOTAL INVESTMENTS)
2,210 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 2,141,844
Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA
Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.7% (11.7% OF TOTAL INVESTMENTS) (4)
10 Anne Arundel County, Maryland, General Obligation Bonds, 5/09 at 101.00 AAA 10,285
Consolidated General Improvements, Series 1999, 5.000%, 5/15/19
(Pre-refunded 5/15/09)
255 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA (4) 283,262
2006C, 5.000%, 7/01/31 (Pre-refunded 7/01/16) - AMBAC Insured
Frederick County, Maryland, Educational Facilities Revenue
Bonds, Mount St. Mary's College, Series 2001A:
100 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 105,897
100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 105,959
100 Frederick County, Maryland, General Obligation Public Facilities 7/09 at 101.00 AAA 103,491
Bonds, Series 1999, 5.250%, 7/01/17 (Pre-refunded 7/01/09)
110 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 BBB+ (4) 118,748
Development Special Obligation Bonds, Series 2001A, 5.600%,
7/01/20 (Pre-refunded 7/01/10) - RAAI Insured
280 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R (4) 309,770
Revenue Bonds, Collington Episcopal Life Care Community Inc.,
Series 2001A, 6.750%, 4/01/23 (Pre-refunded 4/01/11)
285 Maryland Health and Higher Educational Facilities Authority, No Opt. Call A (4) 307,344
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/17 -
AMBAC Insured (ETM)
725 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 (4) 796,891
Revenue Bonds, LifeBridge Health System, Series 2004A, 5.125%,
7/01/34 (Pre-refunded 7/01/14)
855 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 980,112
Transportation Facilities Projects, First Series 1978, 6.800%,
7/01/16 (ETM)
1,525 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 1,624,598
Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) -
FSA Insured
3,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 3,478,895
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
41
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA $ 1,008,530
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 - AMBAC
Insured (ETM)
235 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 254,719
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
2,000 University of Maryland, Auxiliary Facility and Tuition Revenue 4/12 at 100.00 AA+ (4) 2,175,620
Bonds, Series 2002A, 5.125%,4/01/22 (Pre-refunded 4/01/12)
25 Washington Suburban Sanitary District, Montgomery and Prince 6/11 at 101.00 AAA 27,003
George's Counties, Maryland, General Obligation Construction
Bonds, Second Series 2001, 5.000%, 6/01/17 (Pre-refunded
6/01/11)
------------------------------------------------------------------------------------------------------------------------------------
11,105 Total U.S. Guaranteed 11,691,124
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,250 Maryland Energy Financing Administration, Revenue Bonds, AES
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax) 2/09 at 100.00 N/R 1,050,850
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.0% (3.7% OF TOTAL INVESTMENTS)
2,570 Baltimore, Maryland, Revenue Refunding Bonds, Wastewater 7/12 at 100.00 AA 2,306,935
Projects, Series 2002A, 5.125%,7/01/42 - FGIC Insured
345 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/16 at 100.00 AA 334,981
2006C, 5.000%, 7/01/31 - AMBAC Insured
660 Baltimore, Maryland, Wastewater Project Revenue Bonds, Series 7/17 at 100.00 AA 607,655
2007D, 5.000%, 7/01/32 - AMBAC Insured
430 Maryland Water Quality Financing Administration, Revolving Loan No Opt. Call AAA 474,019
Fund Revenue Bonds, Series2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------------
4,005 Total Water and Sewer 3,723,590
------------------------------------------------------------------------------------------------------------------------------------
$ 111,020 Total Investments (cost $112,274,438) - 159.4% 99,714,583
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (1.8)% (1,105,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.8% 2,940,444
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (62.4)% (5) (39,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 62,550,027
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 39.1%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
42
NPV | Nuveen Virginia Premium Income Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 6,640 Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset Backed Bonds, Series 2007B1, 5.000%, 6/01/47 6/17 at 100.00 BBB $ 3,563,488
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.3% (3.3% OF TOTAL
INVESTMENTS)
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 884,730
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 473,075
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- 568,974
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez University
System, Series 2002, 5.375%, 12/01/21
2,120 Virginia College Building Authority, Educational Facilities 9/11 at 100.00 AA+ 2,107,492
Revenue Bonds, Public Higher Education Financing Program,
Series 2001A, 5.000%, 9/01/26 - MBIA Insured
1,635 Virginia Commonwealth University, Revenue Bonds, Series 2004A, 5/14 at 101.00 AA- 1,700,367
5.000%, 5/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,955 Total Education and Civic Organizations 5,734,638
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.9% (16.9% OF TOTAL INVESTMENTS)
2,000 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,587,760
Hospital Revenue Bonds, Martha Jefferson Hospital, Series
2002, 5.250%, 10/01/35
650 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 522,542
Hospital Revenue Bonds, Halifax Regional Hospital
Incorporated, Series 2007, 5.000%, 9/01/27
4,850 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 4,675,349
Hospital Revenue Refunding Bonds, Inova Health System,
Series 1993A, 5.000%, 8/15/23
1,000 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 907,990
Hospital Facilities Revenue Bonds, MediCorp Health System,
Series 2007, 5.250%, 6/15/23
1,250 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 969,150
Revenue Bonds, MediCorp Health System, Series 2002B, 5.125%,
6/15/33
1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call AA 1,113,160
Hospital Revenue Bonds, Memorial Regional Medical Center,
Series 1995, 6.375%, 8/15/18 - MBIA Insured
2,300 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AA 1,764,238
Hospital Facilities Revenue Bonds, Rockingham Memorial
Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured
1,440 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 1,240,978
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 AA 1,610,955
Healthcare Revenue Bonds, Bon Secours Health System, Series
1996, 6.250%, 8/15/20 - MBIA Insured
1,500 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 1,195,845
Revenue Bonds, Prince William Hospital, Series 2002, 5.250%,
4/01/33
4,750 Medical College of Virginia Hospital Authority, General Revenue 1/09 at 102.00 AA 4,061,914
Bonds, Series 1998, 5.125%,7/01/23 - MBIA Insured
3,000 Roanoke Industrial Development Authority, Virginia, Hospital 7/12 at 100.00 AA 3,051,570
Revenue Bonds, Carilion Health System, Series 2002A, 5.500%,
7/01/19 - MBIA Insured
43
NPV | Nuveen Virginia Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Stafford County Economic Development Authority, Virginia,
Hospital Facilities Revenue Bonds, MediCorp Health System,
Series 2006:
$ 2,000 5.250%, 6/15/26 6/16 at 100.00 A3 $ 1,685,960
1,010 5.250%, 6/15/31 6/16 at 100.00 A3 807,596
1,695 5.250%, 6/15/37 6/16 at 100.00 A3 1,346,305
2,210 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 1,554,846
System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37
1,425 Winchester Industrial Development Authority, Virginia, Hospital 1/17 at 100.00 AA- 1,235,048
Revenue Bonds, Winchester Medical Center, Series 2007,
5.125%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
33,580 Total Health Care 29,331,206
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.7% (2.3% OF TOTAL INVESTMENTS)
1,385 Arlington County Industrial Development Authority, Virginia, 5/10 at 100.00 Aaa 1,394,861
Multifamily Housing Revenue Bonds, Patrick Henry Apartments,
Series 2000, 6.050%, 11/01/32 (Mandatory put 11/01/20)
(Alternative Minimum Tax)
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 464,635
1,500 7.000%, 6/01/30 6/09 at 102.00 N/R 1,287,960
1,000 Lynchburg Redevelopment and Housing Authority, Virginia, Vistas 4/10 at 102.00 AAA 892,110
GNMA Mortgage-Backed Revenue Bonds, Series 2000A, 6.200%,
1/20/40 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,385 Total Housing/Multifamily 4,039,566
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.5% (4.7% OF TOTAL INVESTMENTS)
335 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 246,788
Securities Program Home Mortgage Revenue Bonds, Series
2003A, 4.875%, 6/01/34 (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 932,960
Bonds, Series 2001H-1, 5.350%,7/01/31 - MBIA Insured
1,500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 1,094,745
Bonds, Series 2005C-2, 4.750%,10/01/32 (Alternative Minimum
Tax)
2,740 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 2,066,015
Bonds, Series 2006 D1, 4.900%,1/01/33 (Alternative Minimum
Tax)
1,340 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 1,021,134
Bonds, Series 2006, 4.800%,7/01/29 (Alternative Minimum Tax)
3,900 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 2,850,783
Bonds, Series 2007B, 4.750%,7/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,815 Total Housing/Single Family 8,212,425
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
2,000 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 1,980,900
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 - 4.1% (2.6% OF TOTAL INVESTMENTS)
2,765 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,637,765
Residential Care Facilities Mortgage Revenue Bonds, Goodwin
House, Inc., Series 2007A, 5.125%, 10/01/37
800 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 514,760
Retirement Center Revenue Bonds, Greenspring Village, Series
2006A, 4.875%, 10/01/36
1,495 Henrico County Economic Development Authority, Virginia, GNMA 7/09 at 102.00 AAA 1,392,892
Mortgage-Backed Securities Program Assisted Living Revenue
Bonds, Beth Sholom, Series 1999A, 5.900%, 7/20/29
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Henrico County Economic Development Authority, Virginia,
Residential Care Facility Revenue Bonds, Westminster
Canterbury of Richmond, Series 2006:
$ 100 5.000%, 10/01/27 10/11 at 103.00 BBB- $ 72,700
1,345 5.000%, 10/01/35 No Opt. Call BBB- 898,137
------------------------------------------------------------------------------------------------------------------------------------
6,505 Total Long-Term Care 4,516,254
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
500 Bedford County Industrial Development Authority, Virginia, 2/09 at 101.00 B2 318,475
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (4)
1,000 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 633,870
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (4)
------------------------------------------------------------------------------------------------------------------------------------
1,500 Total Materials 952,345
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.6% (14.2% OF TOTAL INVESTMENTS)
Chesapeake, Virginia, General Obligation Bonds, Water and
Sewerage Series 2003B:
1,880 5.000%, 6/01/21 6/13 at 100.00 AA+ 1,912,449
2,060 5.000%, 6/01/23 6/13 at 100.00 AA+ 2,079,508
1,355 Harrisonburg, Virginia, General Obligation Bonds, Public Safety 7/12 at 101.00 AA 1,368,821
and Steam Plant, Series 2002, 5.000%, 7/15/19 - FGIC Insured
105 Loudoun County, Virginia, General Obligation Public Improvement 5/12 at 100.00 AAA 106,947
Bonds, Series 2002A, 5.250%, 5/01/22
1,435 Loudoun County, Virginia, General Obligation Public Improvement 6/15 at 100.00 AAA 1,517,096
Bonds, Series 2005B, 5.000%, 6/01/18
1,185 Lynchburg, Virginia, General Obligation Bonds, Series 2004, 6/14 at 100.00 AA 1,202,076
5.000%, 6/01/21
1,350 Newport News, Virginia, General Obligation Bonds, Series 2004C, 5/14 at 101.00 AA 1,458,824
5.000%, 5/01/16
1,280 Portsmouth, Virginia, General Obligation Bonds, Series 2005A, No Opt. Call AA 1,400,474
5.000%, 4/01/15 - MBIA Insured
1,480 Richmond, Virginia, General Obligation Bonds, Series 2004A, 7/14 at 100.00 AAA 1,492,195
5.000%, 7/15/21 - FSA Insured
1,430 Roanoke, Virginia, General Obligation Public Improvement Bonds, 10/12 at 101.00 AA 1,506,619
Series 2002A, 5.000%, 10/01/17
1,135 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 1,242,950
5.000%, 12/01/15
2,155 Virginia Beach, Virginia, General Obligation Bonds, Series 5/13 at 100.00 AAA 2,281,585
2003B, 5.000%, 5/01/15
1,100 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 1,139,072
2005, 5.000%, 1/15/20
4,500 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 4,451,040
10/01/27 (UB)
1,425 Virginia Beach, Virginia, General Obligation Public Improvement 6/11 at 101.00 AAA 1,452,032
Bonds, Series 2001, 5.000%, 6/01/20
------------------------------------------------------------------------------------------------------------------------------------
23,875 Total Tax Obligation/General 24,611,688
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.0% (21.4% 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 N/R 247,950
260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 164,492
1,340 Culpeper Industrial Development Authority, Virginia, Lease 1/15 at 100.00 AA 1,338,807
Revenue Bonds, School Facilities Project, Series 2005,
5.000%, 1/01/20 - MBIA Insured
Cumberland County, Virginia, Certificates of Participation,
Series 1997:
890 6.200%, 7/15/12 No Opt. Call N/R 909,242
1,375 6.375%, 7/15/17 No Opt. Call N/R 1,304,133
1,000 Dinwiddie County Industrial Development Authority, Virginia, 2/14 at 100.00 AA 1,042,560
Lease Revenue Bonds, Series2004B, 5.125%, 2/15/16 - MBIA
Insured
45
NPV | Nuveen Virginia Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ $ 1,044,990
Revenue Bonds, Joint Public Uses Community Project, Series
2006, 5.000%, 5/15/18
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+ 2,444,145
1,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 1,174,134
1,660 Front Royal and Warren County Industrial Development Authority, 4/14 at 100.00 AAA 1,716,440
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 1,303,934
Revenue Bonds, County Government Projects, Series 2005,
5.000%, 7/15/19
445 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 395,681
Public Facility Lease Revnue Bonds, Public Projects Series
2008, 5.000%, 2/01/29
1,930 Prince William County, Virginia, Certificates of Participation, 6/15 at 100.00 Aa2 1,965,280
County Facilities, Series2005, 5.000%, 6/01/18 - AMBAC
Insured
1,185 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 AAA 1,032,360
Revenue Bonds, Series 2002D, 5.000%,7/01/32 - FSA Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 1,565,920
Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 388,750
Revenue Bonds, Series 2005A, 0.000%, 7/01/43 - AMBAC Insured
5,875 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 1,434,910
Revenue Bonds, Series 2005C, 0.000%, 7/01/28 - AMBAC 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- 216,693
320 5.250%, 7/01/36 7/12 at 100.00 BBB- 241,936
1,110 Spotsylvania County Industrial Development Authority, Virginia, 8/13 at 100.00 A 993,295
Lease Revenue Bonds, School Facilities, Series 2003B,
4.375%, 8/01/20 - AMBAC Insured
1,600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AA 1,537,152
Virginia, Revenue Bonds, Virginia Municipal League and
Virginia Association of Counties Finance Program, Series
2006A, 5.000%, 8/01/23 - MBIA Insured
2,500 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 2,280,200
Public Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC
Insured (UB)
1,400 Virginia Beach Development Authority, Public Facilities Revenue 5/15 at 100.00 AA+ 1,406,048
Bonds, Series 2005A, 5.000%,5/01/22
2,000 Virginia Public School Authority, School Financing Bonds, 1997 8/10 at 101.00 AA+ 2,039,280
Resolution, Series 2000B, 5.000%, 8/01/18 - MBIA Insured
1,625 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 1,701,928
Resolution, Series 2005C, 5.000%, 8/01/17
Virginia Resources Authority, Infrastructure Revenue Bonds,
Pooled Loan Bond Program, Series 2000B:
95 5.500%, 5/01/20 - FSA Insured 5/10 at 101.00 AAA 98,212
550 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 537,796
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,766,170
Pooled Loan Bond Program, Series2002A, 5.000%, 5/01/19
2,815 Virginia Resources Authority, Infrastructure Revenue Bonds, 11/16 at 100.00 AAA 2,657,332
Pooled Loan Bond Program, Series2006C, 5.000%, 11/01/36
2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,169,321
U.S. Route 58 Corridor Development Program, Series 2004B,
5.000%, 5/15/15
------------------------------------------------------------------------------------------------------------------------------------
47,010 Total Tax Obligation/Limited 37,119,091
------------------------------------------------------------------------------------------------------------------------------------
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.5% (6.6% OF TOTAL INVESTMENTS)
$ 2,500 Metropolitan Washington D.C. Airports Authority, System Revenue 10/17 at 100.00 AA $ 1,819,025
Bonds, Series 2007B, 5.000%, 10/01/35 - AMBAC Insured
(Alternative Minimum Tax)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 AA 3,416,080
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
1,000 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AA 919,690
5.000%, 2/01/23 - MBIA Insured
2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AA 2,413,700
Bonds, Expressway System, Series 2002, 5.250%, 7/15/22 -
FGIC Insured
1,260 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA 873,571
Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured
(Alternative Minimum Tax)
2,000 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 2,008,820
Bonds, Series 2001A, 5.250%, 8/01/23
------------------------------------------------------------------------------------------------------------------------------------
13,260 Total Transportation 11,450,886
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.1% (12.6% OF TOTAL INVESTMENTS) (5)
3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 A (5) 3,796,904
Rate Revenue Bonds, Institute for Defense Analyses, Series
2000A, 5.900%, 10/01/30 (Pre-refunded 10/01/10) - AMBAC
Insured
750 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 762,105
Bonds, Series 2002, 5.000%, 11/01/24 - FSA Insured (ETM)
925 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 1,013,615
Refunding Bonds, Series 2002, 5.375%, 4/01/19 (Pre-refunded
4/01/12)
600 Greater Richmond Convention Center Authority, Virginia, Hotel 6/10 at 101.00 AAA 645,444
Tax Revenue Bonds, Convention Center Expansion Project,
Series 2000, 6.125%, 6/15/25 (Pre-refunded 6/15/10)
60 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 66,833
Revenue Bonds, Bon Secours Health System Inc., Series 2002A,
5.600%, 11/15/30 (Pre-refunded 11/15/12)
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
375 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 422,543
800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 904,096
815 Puerto Rico Highway and Transportation Authority, Highway 7/12 at 100.00 Aaa 893,525
Revenue Bonds, Series 2002D, 5.000%,7/01/32 (Pre-refunded
7/01/12) - FSA Insured
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,484,925
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 7/01/12) 7/12 at 100.00 BBB- (5) 795,976
880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB- (5) 953,005
625 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 652,481
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
460 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 500,572
Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%,
7/15/21 (Pre-refunded 7/15/11)
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
1,575 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,649,813
3,850 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 4,149,221
2,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ (5) 2,189,780
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded
10/01/10)
------------------------------------------------------------------------------------------------------------------------------------
20,450 Total U.S. Guaranteed 21,880,838
------------------------------------------------------------------------------------------------------------------------------------
47
NPV | Nuveen Virginia Premium Income Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.9% (5.0% 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 AA $ 1,772,330
1,800 5.250%, 7/15/15 - MBIA Insured 7/13 at 100.00 AA 1,881,702
2,775 5.250%, 7/15/23 - MBIA Insured 7/13 at 100.00 AA 2,708,428
2,500 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 2,256,150
Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series 2002,
6.500%, 10/15/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
8,780 Total Utilities 8,618,610
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.4% (6.5% 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 108,680
800 5.000%, 4/01/27 4/12 at 100.00 AAA 774,744
1,770 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ 1,708,085
Refunding Bonds, Series 1999, 5.000%, 5/01/28
1,000 Loudoun County Sanitation Authority, Virginia, Water and 1/15 at 100.00 AA+ 1,002,040
Sewerage System Revenue Bonds, Series2004, 5.000%, 1/01/26
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
1,310 5.000%, 11/01/21 - FGIC Insured 11/11 at 100.00 AA+ 1,312,777
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AA+ 1,375,832
2,250 Virginia Beach, Virginia, Storm Water Utility Revenue Bonds, 9/10 at 101.00 Aa3 2,345,715
Series 2000, 6.000%, 9/01/24
1,800 Virginia Beach, Virginia, Water and Sewer System Revenue Bonds, 10/15 at 100.00 AA 1,684,098
Series 2005, 5.000%, 10/01/30
1,515 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 1,027,019
Series 2007, Trust 3036, 11.378%, 10/01/29 (IF)
------------------------------------------------------------------------------------------------------------------------------------
11,930 Total Water and Sewer 11,338,990
------------------------------------------------------------------------------------------------------------------------------------
$ 196,685 Total Investments (cost $190,745,270) - 159.0% 173,350,925
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.6)% (4,990,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 4,470,437
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (58.5)% (6) (63,800,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 109,031,362
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) The issuer has received a formal 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.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 36.8%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
48
NGB | Nuveen Virginia Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 1,660 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 890,872
Settlement Asset Backed Bonds, Series 2007B1, 5.000%,
6/01/47
715 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 304,197
Settlement Asset-Backed Bonds, Series 2007B2, 0.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
2,375 Total Consumer Staples 1,195,069
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.0% (4.4% OF TOTAL
INVESTMENTS)
500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 416,645
Educational 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 442,365
Virginia, Educational Facilities Revenue Bonds, Catholic
Diocese of Arlington, Series 2003, 5.500%, 10/01/33
850 Prince William County Park Authority, Virginia, Park 10/09 at 101.00 A3 804,228
Facilities Revenue Refunding and Improvement Bonds, Series
1999, 6.000%, 10/15/28
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System, Series 1999:
160 5.375%, 2/01/19 2/09 at 101.00 BBB- 135,523
320 5.375%, 2/01/29 2/09 at 101.00 BBB- 231,133
500 Virginia College Building Authority, Educational Facilities 1/09 at 101.00 BBB+ 473,340
Revenue Refunding Bonds, Marymount University, Series 1998,
5.100%, 7/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
2,830 Total Education and Civic Organizations 2,503,234
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.5% (11.5% OF TOTAL INVESTMENTS)
250 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 185,128
Hospital Revenue Bonds, Halifax Regional Hospital
Incorporated, Series 2007, 5.000%, 9/01/37
100 Fairfax County Industrial Development Authority, Virginia, No Opt. Call AA+ 96,399
Hospital Revenue Refunding Bonds, Inova Health System,
Series 1993A, 5.000%, 8/15/23
1,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 BBB+ 804,270
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
500 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 453,995
Hospital Facilities Revenue Bonds, MediCorp Health System,
Series 2007, 5.250%, 6/15/23
500 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 387,660
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
820 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AA 628,989
Hospital Facilities Revenue Bonds, Rockingham Memorial
Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured
480 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 413,659
Revenue Bonds, Bon Secours Health System Inc., Series
2002A, 5.600%, 11/15/30
525 Manassas Industrial Development Authority, Virginia, Hospital 4/13 at 100.00 A2 418,546
Revenue Bonds, Prince William Hospital, Series 2002,
5.250%, 4/01/33
49
NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 800 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 N/R $ 652,976
Revenue Refunding and Improvement Bonds, Norton Community
Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured
Stafford County Economic Development Authority, Virginia,
Hospital Facilities Revenue Bonds, MediCorp Health System,
Series 2006:
750 5.250%, 6/15/25 6/16 at 100.00 A3 639,863
360 5.250%, 6/15/31 6/16 at 100.00 A3 287,856
605 5.250%, 6/15/37 6/16 at 100.00 A3 480,539
785 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 552,287
System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37
715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 AA- 619,691
Hospital Revenue Bonds, Winchester Medical Center, Series
2007, 5.125%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
8,190 Total Health Care 6,621,858
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.4% (3.4% OF TOTAL INVESTMENTS)
1,000 Arlington County Industrial Development Authority, Virginia, 11/11 at 102.00 AAA 999,130
Multifamily Housing Mortgage Revenue Bonds, Arlington View
Terrace Apartments, Series 2001, 5.150%, 11/01/31 (Mandatory
put 11/01/19) (Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, Rental Housing Bonds, 10/10 at 100.00 AA+ 954,990
Series 2000G, 5.625%, 10/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Multifamily 1,954,120
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.7% (6.1% OF TOTAL INVESTMENTS)
1,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 932,960
Bonds, Series 2001H-1, 5.350%, 7/01/31 - MBIA Insured
600 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 437,898
Bonds, Series 2005C-2, 4.750%, 10/01/32 (Alternative
Minimum Tax)
960 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 723,859
Bonds, Series 2006 D1, 4.900%, 1/01/33 (Alternative
Minimum Tax)
480 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 365,779
Bonds, Series 2006, 4.800%, 7/01/29 (Alternative Minimum Tax)
1,400 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 1,023,358
Bonds, Series 2007B, 4.750%, 7/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,440 Total Housing/Single Family 3,483,854
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.2% (0.1% OF TOTAL INVESTMENTS)
50 Charles County Industrial Development Authority, Virginia, No Opt. Call BBB 49,523
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 - 10.9% (6.8% OF TOTAL INVESTMENTS)
700 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 451,192
Residential Care Facilities Mortgage Revenue Bonds,
Westminster-Cantebury of the Blue Ridge, Series 2007,
5.000%, 1/01/31
350 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 226,051
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.625%, 12/01/39
1,005 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 595,282
Residential Care Facilities Mortgage Revenue Bonds, Goodwin
House, Inc., Series 2007A, 5.125%, 10/01/37
500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 351,550
Retirement Center Revenue Bonds, Greenspring Village,
Series 2006A, 4.750%, 10/01/26
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 540 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- $ 360,590
Residential Care Facility Revenue Bonds, Westminster
Canterbury of Richmond, Series 2006, 5.000%, 10/01/35
700 Industrial Development Authority of the County of Prince 1/17 at 100.00 N/R 473,536
William, Virginia, Residential Care Facility Revenue Bonds,
Westminster at Lake, First Mortgage, Series 2006, 5.125%,
1/01/26
650 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 514,118
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%,
3/01/23
530 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 321,604
Residential Revenue Bonds, Virginia Lutheran Homes
Incorporated, Series 2006, 5.000%, 12/01/39
350 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 229,684
Facilities First Mortgage Revenue Bonds, Lake Prince
Center, Series 2006, 5.300%, 9/01/31
350 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 258,069
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 122,512
Residential Care Facility Revenue Bonds,
Westminster-Canterbury of Winchester Inc., Series 2005A,
5.200%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
5,850 Total Long-Term Care 3,904,188
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.1% (0.6% OF TOTAL INVESTMENTS)
100 Bedford County Industrial Development Authority, Virginia, 2/09 at 101.00 B2 63,695
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (4)
20 Bedford County Industrial Development Authority, Virginia, 12/09 at 101.00 B2 14,204
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1999A, 6.550%, 12/01/25
(Alternative Minimum Tax) (4)
220 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 139,451
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%,
12/01/25 (Alternative Minimum Tax) (4)
500 Hopewell Industrial Development Authority, Virginia, No Opt. Call B- 165,510
Environmental Improvement Revenue Bonds, Smurfit Stone
Container Corporation, Series 2005, 5.250%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
840 Total Materials 382,860
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.6% (9.1% OF TOTAL INVESTMENTS)
700 Loudoun County, Virginia, General Obligation Bonds, Series 12/16 at 100.00 AAA 705,047
2006, 5.000%, 12/01/25
500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 528,605
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
845 Newport News, Virginia, General Obligation Bonds, Series 5/14 at 101.00 AA 913,115
2004C, 5.000%, 5/01/16
620 Richmond, Virginia, General Obligation Bonds, Series 2005A, 7/15 at 100.00 AAA 653,995
5.000%, 7/15/17 - FSA Insured
400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 438,044
5.000%, 12/01/15
400 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 414,208
2005, 5.000%, 1/15/20
1,600 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 1,590,576
10/01/26 (UB)
------------------------------------------------------------------------------------------------------------------------------------
5,065 Total Tax Obligation/General 5,243,590
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.2% (13.3% OF TOTAL INVESTMENTS)
100 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 101,725
Assessment Bonds, Series 2003A, 6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 442,090
Revenue Bonds, Series 2003, 7.500%, 6/01/33
51
NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 N/R $ 88,818
95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 60,103
500 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 522,495
Revenue Bonds, Joint Public Uses Community Project, Series
2006, 5.000%, 5/15/18
160 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 142,267
Public Facility Lease Revnue Bonds, Public Projects Series
2008, 5.000%, 2/01/29
580 Prince William County, Virginia, Certificates of 6/15 at 100.00 Aa2 577,187
Participation, County Facilities, Series2005, 5.000%,
6/01/20 - AMBAC Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 548,072
Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 675,090
Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 A 963,470
Virginia, Lease Revenue Bonds, School Facilities, Series
2003B, 5.125%, 8/01/23 - AMBAC Insured
600 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AA 576,432
Virginia, Revenue Bonds, Virginia Municipal League and
Virginia Association of Counties Finance Program, Series
2006A, 5.000%, 8/01/23 - MBIA Insured
890 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 811,751
Public Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC
Insured (UB)
960 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 970,301
Loan Note, Series 1999A, 6.375%, 10/01/19
500 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 502,160
Revenue Bonds, Series 2005A, 5.000%,5/01/22
348 Virginia Gateway Community Development Authority, Prince 3/13 at 102.00 N/R 278,351
William County, Special Assessment Bonds, Series 2003,
6.375%, 3/01/30
345 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 361,332
Resolution, Series 2005C, 5.000%, 8/01/17
------------------------------------------------------------------------------------------------------------------------------------
10,398 Total Tax Obligation/Limited 7,621,644
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.6% (16.6% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,022,480
Bonds, Richmond International Airport, Series 2005A,
5.000%, 7/01/18 - FSA Insured
1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, General No Opt. Call AA 946,850
Resolution Revenue Refunding Bonds, Series 1998, 5.500%,
7/01/25 - MBIA Insured
3,000 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA 2,498,427
System Revenue Bonds, Series 2001A, 5.500%, 10/01/27 - MBIA
Insured (Alternative Minimum Tax)
250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA 233,700
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 AA 1,281,030
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AA 459,845
5.000%, 2/01/23 - MBIA Insured
500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call AA 482,740
Bonds, Expressway System, Series2002, 5.250%, 7/15/22 -
FGIC Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 455 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA $ 315,456
Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured
(Alternative Minimum Tax)
1,225 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,230,402
Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,066,500
Bonds, Series 2001B, 5.125%,8/01/27 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,680 Total Transportation 9,537,430
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 31.4% (19.6% OF TOTAL INVESTMENTS) (5)
500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) 554,620
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31 (Pre-refunded 1/01/12)
1,000 Bristol, Virginia, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,036,490
Series 2001, 5.000%, 7/15/21 - FSA Insured (ETM)
Guam Economic Development Authority, Tobacco Settlement
Asset-Backed Bonds, Series 2001A:
30 5.000%, 5/15/22 (Pre-refunded 5/15/11) 5/11 at 100.00 Baa3 (5) 31,944
850 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 Baa3 (5) 913,181
20 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 22,278
Revenue Bonds, Bon Secours Health System Inc., Series
2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12)
2,310 Leesburg, Virginia, General Obligation Public Improvement 1/11 at 101.00 AA (5) 2,482,719
Bonds, Series 2000, 5.125%, 1/15/21 (Pre-refunded 1/15/11)
- FGIC Insured
425 Loudoun County Industrial Development Authority, Virginia, 6/12 at 101.00 BBB (5) 478,882
Hospital Revenue Bonds, Loudoun Hospital Center, Series
2002A, 6.000%, 6/01/22 (Pre-refunded 6/01/12)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,500 5.500%, 10/01/32 10/10 at 101.00 AAA 1,499,880
1,500 5.500%, 10/01/40 10/10 at 101.00 AAA 1,490,955
250 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 260,993
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
175 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 (5) 186,191
Horse Center Revenue Refunding Bonds, Series 2001B, 6.125%,
7/15/11 (ETM)
915 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 995,703
Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%,
7/15/21 (Pre-refunded 7/15/11)
725 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/15 at 100.00 AAA 781,347
Settlement Asset-Backed Bonds, Series 2005, 5.500%, 6/01/26
(Pre-refunded 6/01/15)
500 Virginia College Building Authority, Educational Facilities 2/12 at 100.00 AA+ (5) 540,535
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22 (Pre-refunded 2/01/12)
------------------------------------------------------------------------------------------------------------------------------------
10,700 Total U.S. Guaranteed 11,275,718
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.5% (1.5% OF TOTAL INVESTMENTS)
1,000 Mecklenburg County Industrial Development Authority, Virginia,
Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series
2002, 6.500%, 10/15/17 (Alternative Minimum Tax) 10/12 at 100.00 Baa1 902,460
------------------------------------------------------------------------------------------------------------------------------------
53
NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.9% (4.9% OF TOTAL INVESTMENTS)
$ 2,000 Henrico County, Virginia, Water and Sewer System Revenue 5/09 at 102.00 AA+ $ 2,004,000
Refunding Bonds, Series 1999, 5.000%, 5/01/22
500 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA 467,805
Bonds, Series 2005, 5.000%, 10/01/30
545 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 AAA 369,456
Series 2007, Trust 3036, 11.378%, 10/01/29 (IF)
------------------------------------------------------------------------------------------------------------------------------------
3,045 Total Water and Sewer 2,841,261
------------------------------------------------------------------------------------------------------------------------------------
$ 67,463 Total Investments (cost $66,026,832) - 160.3% 57,516,809
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.9)% (1,770,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 11.5% 4,127,903
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (66.9)% (6) (24,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 35,874,712
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) The issuer has received a formal 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.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 41.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
54
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.3% (2.1% OF TOTAL INVESTMENTS)
$ 3,100 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB $ 1,663,677
Settlement Asset Backed Bonds, Series 2007B1, 5.000%,
6/01/47
1,430 Tobacco Settlement Financing Corporation of Virginia, Tobacco 6/17 at 100.00 BBB 608,394
Settlement Asset-Backed Bonds, Series 2007B2, 0.000%,
6/01/46
------------------------------------------------------------------------------------------------------------------------------------
4,530 Total Consumer Staples 2,272,071
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.3% (4.5% OF TOTAL
INVESTMENTS)
1,000 Fairfax County Economic Development Authority, Virginia, 9/09 at 101.00 A3 966,540
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 884,730
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- 1,219,230
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.375%, 12/01/21
2,000 Winchester Industrial Development Authority, Virginia, 10/10 at 100.00 AA 1,864,480
Educational Facilities First Mortgage Revenue Bonds,
Shenandoah University, Series 1998, 5.250%, 10/01/28 - MBIA
Insured
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Education and Civic Organizations 4,934,980
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.9% (16.9% OF TOTAL INVESTMENTS)
1,500 Albemarle County Industrial Development Authority, Virginia, 10/12 at 100.00 A3 1,190,820
Hospital Revenue Bonds, Martha Jefferson Hospital, Series
2002, 5.250%, 10/01/35
450 Charlotte County Industrial Development Authority, Virginia, 9/17 at 100.00 A- 361,760
Hospital Revenue Bonds, Halifax Regional Hospital
Incorporated, Series 2007, 5.000%, 9/01/27
3,000 Fauquier County Industrial Development Authority, Virginia, 10/12 at 102.00 BBB+ 2,412,810
Hospital Revenue Bonds, Fauquier Hospital, Series 2002,
5.250%, 10/01/25 - RAAI Insured
1,000 Fredericksburg Economic Development Authority, Virginia, No Opt. Call A3 907,990
Hospital Facilities Revenue Bonds, MediCorp Health System,
Series 2007, 5.250%, 6/15/23
675 Fredericksburg Industrial Development Authority, Virginia, 6/12 at 100.00 A3 523,341
Revenue Bonds, MediCorp Health System, Series 2002B,
5.125%, 6/15/33
1,500 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 AA 1,150,590
Hospital Facilities Revenue Bonds, Rockingham Memorial
Hospital, Series 2006, 5.000%, 8/15/31 - AMBAC Insured
960 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A- 827,318
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 920,801
Revenue Bonds, Prince William Hospital, Series 2002,
5.250%, 4/01/33
1,200 Norton Industrial Development Authority, Virginia, Hospital 12/11 at 101.00 N/R 979,464
Revenue Refunding and Improvement Bonds, Norton Community
Hospital, Series 2001, 6.000%, 12/01/22 - ACA Insured
55
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Prince William County Industrial Development Authority, 4/09 at 102.00 Aa3 $ 970,070
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 AA 3,958,573
Revenue Bonds, Carilion Health System, Series 2002A,
5.500%, 7/01/20 - MBIA Insured
Stafford County Economic Development Authority, Virginia,
Hospital Facilities Revenue Bonds, MediCorp Health System,
Series 2006:
1,250 5.250%, 6/15/25 6/16 at 100.00 A3 1,066,438
655 5.250%, 6/15/31 6/16 at 100.00 A3 523,738
1,095 5.250%, 6/15/37 6/16 at 100.00 A3 869,737
1,430 Virginia Small Business Financing Authority, Wellmont Health 9/17 at 100.00 BBB+ 1,006,077
System Project Revenue Bonds, Series 2007A, 5.250%, 9/01/37
715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 AA- 619,691
Hospital Revenue Bonds, Winchester Medical Center, Series
2007, 5.125%, 1/01/31
------------------------------------------------------------------------------------------------------------------------------------
21,500 Total Health Care 18,289,218
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 14.6% (9.1% OF TOTAL INVESTMENTS)
7,485 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 6,983,203
Bonds, Series 2001H-1, 5.350%,7/01/31 - MBIA Insured
500 Virginia Housing Development Authority, Commonwealth Mortgage 1/15 at 100.00 AAA 364,915
Bonds, Series 2005C-2, 4.750%,10/01/32 (Alternative Minimum
Tax)
870 Virginia Housing Development Authority, Commonwealth Mortgage 7/15 at 100.00 AAA 662,975
Bonds, Series 2006, 4.800%,7/01/29 (Alternative Minimum Tax)
2,600 Virginia Housing Development Authority, Commonwealth Mortgage 7/16 at 100.00 AAA 1,900,522
Bonds, Series 2007B, 4.750%,7/01/32 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,455 Total Housing/Single Family 9,911,615
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 10.2% (6.4% OF TOTAL INVESTMENTS)
1,300 Albemarle County Industrial Development Authority, Virginia, 1/17 at 100.00 N/R 837,928
Residential Care Facilities Mortgage Revenue Bonds,
Westminster-Cantebury of the Blue Ridge, Series 2007,
5.000%, 1/01/31
650 Chesterfield County Health Center Commission, Virginia, 12/15 at 100.00 N/R 419,809
Mortgage Revenue Bonds, Lucy Corr Village, Series 2005,
5.625%, 12/01/39
1,815 Fairfax County Economic Development Authority, Virginia, 10/17 at 100.00 N/R 1,075,061
Residential Care Facilities Mortgage Revenue Bonds, Goodwin
House, Inc., Series 2007A, 5.125%, 10/01/37
500 Fairfax County Economic Development Authority, Virginia, 10/16 at 100.00 BBB 351,550
Retirement Center Revenue Bonds, Greenspring Village,
Series 2006A, 4.750%, 10/01/26
855 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 570,935
Residential Care Facility Revenue Bonds, Westminster
Canterbury of Richmond, Series 2006, 5.000%, 10/01/35
1,300 Industrial Development Authority of the County of Prince 1/17 at 100.00 N/R 879,424
William, Virginia, Residential Care Facility Revenue Bonds,
Westminster at Lake, First Mortgage, Series 2006, 5.125%,
1/01/26
1,350 James City County Industrial Development Authority, Virginia, 3/12 at 101.00 N/R 1,067,783
Residential Care Facility First Mortgage Revenue Refunding
Bonds, Williamsburg Landing Inc., Series 2003A, 6.000%,
3/01/23
970 Roanoke Industrial Development Authority, Virginia, 12/16 at 100.00 N/R 588,596
Residential Revenue Bonds, Virginia Lutheran Homes
Incorporated, Series 2006, 5.000%, 12/01/39
650 Suffolk Industrial Development Authority, Virginia, Retirement 9/16 at 100.00 N/R 426,556
Facilities First Mortgage Revenue Bonds, Lake Prince
Center, Series 2006, 5.300%, 9/01/31
650 Virginia Beach Development Authority, Virginia, Residential 11/15 at 100.00 N/R 479,271
Care Facility Mortgage Revenue Bonds, Westminster
Canterbury on Chesapeake Bay, Series 2005, 5.000%, 11/01/22
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 325 Winchester Industrial Development Authority, Virginia, 1/15 at 100.00 N/R $ 227,523
Residential Care Facility Revenue Bonds,
Westminster-Canterbury of Winchester Inc., Series 2005A,
5.200%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
10,365 Total Long-Term Care 6,924,436
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
165 Bedford County Industrial Development Authority, Virginia, 2/09 at 101.00 B2 105,097
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation, Series 1998, 5.600%, 12/01/25
(Alternative Minimum Tax) (4)
460 Goochland County Industrial Development Authority, Virginia, 12/08 at 101.00 B2 291,580
Industrial Development Revenue Refunding Bonds, Nekoosa
Packaging Corporation Project, Series 1998, 5.650%,
12/01/25 (Alternative Minimum Tax) (4)
1,000 Hopewell Industrial Development Authority, Virginia, No Opt. Call B- 331,020
Environmental Improvement Revenue Bonds, Smurfit Stone
Container Corporation, Series 2005, 5.250%, 6/01/15
------------------------------------------------------------------------------------------------------------------------------------
1,625 Total Materials 727,697
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.6% (18.6% OF TOTAL INVESTMENTS)
1,750 Chesapeake, Virginia, General Obligation Bonds, Series 2001, 12/11 at 100.00 AA+ 1,867,565
5.500%, 12/01/16
1,000 Loudoun County, Virginia, General Obligation Bonds, Series 12/16 at 100.00 AAA 1,007,210
2006, 5.000%, 12/01/25
1,730 Loudoun County, Virginia, General Obligation Public 11/11 at 101.00 AAA 1,774,738
Improvement Bonds, Series 2001C, 4.500%, 11/01/17
95 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 96,761
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,000 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 1,057,210
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
40 Portsmouth, Virginia, General Obligation Public Utility 6/21 at 100.00 AA- 40,002
Refunding Bonds, Series 2001B, 5.000%,6/01/21 - FGIC Insured
Powhatan County, Virginia, General Obligation Bonds, Series
2001:
660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 A1 644,926
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 A1 925,710
Roanoke, Virginia, General Obligation Public Improvement
Bonds, Series 2002A:
2,400 5.000%, 10/01/18 10/12 at 101.00 AA 2,481,072
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,499,016
1,280 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,271,142
Bonds, Series 2002B, 5.000%, 10/01/15 - FGIC Insured
(Alternative Minimum Tax)
600 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 621,312
2005, 5.000%, 1/15/20
2,900 Virginia Beach, Virginia, General Obligation Bonds, 5.000%, 10/17 at 100.00 AAA 2,882,919
10/01/26 (UB)
1,500 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AAA 1,536,030
Improvement Bonds, Series 2001, 5.000%, 6/01/19
1,420 Virginia Beach, Virginia, General Obligation Refunding and 3/12 at 100.00 AAA 1,429,216
Public Improvement Bonds, Series 2002, 5.000%, 3/01/21
------------------------------------------------------------------------------------------------------------------------------------
19,810 Total Tax Obligation/General 20,134,829
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.3% (14.0% OF TOTAL INVESTMENTS)
130 Bell Creek Community Development Authority, Virginia, Special 3/13 at 101.00 N/R 132,243
Assessment Bonds, Series 2003A, 6.750%, 3/01/22
1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 884,180
Revenue Bonds, Series 2003, 7.500%, 6/01/33
57
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 N/R $ 155,432
165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 104,389
800 Fairfax County Economic Development Authority, Virginia, Lease 5/16 at 100.00 AA+ 835,992
Revenue Bonds, Joint Public Uses Community Project, Series
2006, 5.000%, 5/15/18
1,800 Loudoun County Industrial Development Authority, Virginia, 3/13 at 100.00 AA+ 1,833,012
Lease Revenue Refunding Bonds, Public Facility Project,
Series 2003, 5.000%, 3/01/19
285 Montgomery County Industrial Development Authority, Virginia, 2/18 at 100.00 AA- 253,413
Public Facility Lease Revnue Bonds, Public Projects Series
2008, 5.000%, 2/01/29
1,300 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 1,017,848
Revenue Bonds, Series 2007N, 5.250%,7/01/31 - AMBAC Insured
2,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call A 450,060
Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC Insured
400 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- 327,084
Facilities Revenue Refunding Bonds, Series 2002D, 5.250%,
7/01/27
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 A 963,470
Virginia, Lease Revenue Bonds, School Facilities, Series
2003B, 5.125%, 8/01/23 - AMBAC Insured
1,000 Stafford County and Staunton Industrial Development Authority, 8/16 at 100.00 AA 960,720
Virginia, Revenue Bonds, Virginia Municipal League and
Virginia Association of Counties Finance Program, Series
2006A, 5.000%, 8/01/23 - MBIA Insured
1,610 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 1,468,449
Public Project Lease Revenue Bonds, 5.000%, 4/01/33 - AGC
Insured (UB)
800 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 803,456
Revenue Bonds, Series 2005A, 5.000%, 5/01/22
679 Virginia Gateway Community Development Authority, Prince 3/13 at 102.00 N/R 543,105
William County, Special Assessment Bonds, Series 2003,
6.375%, 3/01/30
2,540 Virginia Public School Authority, School Financing Bonds, 1997 8/11 at 101.00 AA+ 2,590,698
Resolution, Series 2001B, 5.000%, 8/01/19
570 Virginia Public School Authority, School Financing Bonds, 1997 8/15 at 100.00 AA+ 596,984
Resolution, Series 2005C, 5.000%, 8/01/17
1,265 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA 1,243,293
Pooled Loan Bond Program, Series 2001D, 5.000%, 5/01/26
------------------------------------------------------------------------------------------------------------------------------------
17,554 Total Tax Obligation/Limited 15,163,828
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.0% (2.5% OF TOTAL INVESTMENTS)
1,000 Metropolitan Washington D.C. Airports Authority, Airport 10/12 at 100.00 AA 787,800
System Revenue Bonds, Series 2002A, 5.125%, 10/01/26 - FGIC
Insured (Alternative Minimum Tax)
1,500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 AA 1,379,535
5.000%, 2/01/23 - MBIA Insured
825 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 AA 571,981
Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,325 Total Transportation 2,739,316
------------------------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.0% (11.9% OF TOTAL INVESTMENTS) (5)
$ 165 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) $ 183,025
Residential Care Facility Revenue Bonds, Westminster
Canterbury of the Blue Ridge First Mortgage, Series 2001,
6.200%, 1/01/31 (Pre-refunded 1/01/12)
1,000 Bristol, Virginia, General Obligation Utility System Revenue No Opt. Call AAA 1,016,140
Bonds, Series 2002, 5.000%,11/01/24 - FSA Insured (ETM)
40 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 44,556
Revenue Bonds, Bon Secours Health System Inc., Series
2002A, 5.600%, 11/15/30 (Pre-refunded 11/15/12)
Loudoun County Industrial Development Authority, Virginia,
Hospital Revenue Bonds, Loudoun Hospital Center, Series 2002A:
250 6.000%, 6/01/22 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 281,695
600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 BBB (5) 678,072
1,000 Newport News, Virginia, General Obligation Bonds, Series 11/13 at 100.00 AA (5) 1,107,080
2003B, 5.000%, 11/01/22 (Pre-refunded 11/01/13)
2,750 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,733,417
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,100 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB- (5) 1,191,256
Facilities Revenue Refunding Bonds, Series 2002D, 5.250%,
7/01/27 (Pre-refunded 7/01/12)
455 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 493,179
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
460 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 500,572
Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%,
7/15/21 (Pre-refunded 7/15/11)
1,000 Staunton, Virginia, General Obligation Bonds, Series 2004, 2/14 at 101.00 Aa3 (5) 1,170,160
6.250%, 2/01/25 (Pre-refunded2/01/14) - AMBAC Insured
Tobacco Settlement Financing Corporation of Virginia, Tobacco
Settlement Asset-Backed Bonds, Series 2005:
600 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 628,500
2,700 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 2,909,843
------------------------------------------------------------------------------------------------------------------------------------
12,120 Total U.S. Guaranteed 12,937,495
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.6% (1.7% OF TOTAL INVESTMENTS)
2,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 1,804,920
Revenue Bonds, UAE Mecklenburg Cogeneration LP, Series
2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.7% (11.7% OF TOTAL INVESTMENTS)
805 Fairfax County Water Authority, Virginia, Water Revenue 4/12 at 100.00 AAA 779,586
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 1,087,610
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,237,359
59
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS November 30, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Norfolk, Virginia, Water Revenue Refunding Bonds, Series 2001:
$ 1,130 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AA+ $ 1,147,142
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AA+ 1,202,519
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AA+ 1,503,543
1,000 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AA 935,610
Bonds, Series 2005, 5.000%, 10/01/30
2,250 Virginia Resources Authority, Water and Sewerage System 5/11 at 101.00 AA 2,125,373
Revenue Bonds, Caroline County Public Improvements
Project, Series 2001, 5.000%, 5/01/32
990 Virginia State Resources Authority, Clean Water Revenue 10/17 at 100.00 AAA 671,121
Bonds, Series 2007, Trust 3036, 11.378%, 10/01/29 (IF)
------------------------------------------------------------------------------------------------------------------------------------
12,890 Total Water and Sewer 12,689,863
------------------------------------------------------------------------------------------------------------------------------------
$ 122,674 Total Investments (cost $121,815,076) - 159.5% 108,530,268
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.7)% (3,215,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.9% 4,720,782
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (61.7)% (6) (42,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 68,036,050
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) 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.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on certain bonds
insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and SYNCORA as of
November 30, 2008. Please see the Portfolio Manager's Commentary for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(4) The issuer has received a formal 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.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Preferred Shares, at Liquidation Value as a percentage of Total
Investments is 38.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
See accompanying notes to financial statements.
60
| Statement of
| ASSETS & LIABILITIES November 30, 2008 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $219,008,223,
$88,365,372, $88,954,826 and $112,274,438,
respectively) $ 199,985,241 $ 77,309,457 $ 78,790,984 $ 99,714,583
Cash 6,225,639 1,107,530 1,558,043 1,460,658
Receivables:
Interest 4,019,918 1,608,777 1,589,307 1,839,327
Investments sold -- 769,594 -- --
Other assets 13,245 3,150 685 804
------------------------------------------------------------------------------------------------------------------------
Total assets 210,244,043 80,798,508 81,939,019 103,015,372
------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 2,167,000 893,000 890,000 1,105,000
Payables:
Common share dividends 501,757 227,406 229,254 265,125
Preferred share dividends 13,395 8,460 9,628 8,458
Accrued expenses:
Management fees 110,972 33,142 33,635 41,196
Other 66,896 35,728 37,150 45,566
------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,860,020 1,197,736 1,199,667 1,465,345
------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 79,100,000 32,000,000 2,000,000 39,000,000
========================================================================================================================
Net assets applicable to Common shares $ 128,284,023 $ 47,600,772 $ 8,739,352 $ 62,550,027
========================================================================================================================
Common shares outstanding 10,640,076 4,187,933 4,194,423 5,363,909
========================================================================================================================
Net asset value per Common share outstanding (net
assets applicable to Common shares, divided by
Common shares outstanding) $ 12.06 $ 11.37 $ 11.62 $ 11.66
========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 106,401 $ 41,879 $ 41,944 $ 53,639
Paid-in surplus 147,794,543 59,427,202 9,514,586 75,713,852
Undistributed (Over-distribution of) net investment
income 298,065 (62,751) (95,426) 34,422
Accumulated net realized gain (loss) from
investments and derivative transactions (892,004) (749,643) (557,910) (692,031)
Net unrealized appreciation (depreciation) of
investments and derivative transactions 9,022,982) (11,055,915) (10,163,842) (12,559,855)
------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 128,284,023 $ 47,600,772 $ 48,739,352 $ 62,550,027
========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
========================================================================================================================
See accompanying notes to financial statements.
61
| Statement of
| ASSETS & LIABILITIES (continued) November 30, 2008 (Unaudited)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $190,745,270, $66,026,832 and
$121,815,076, respectively) $ 173,350,925 $ 57,516,809 $ 108,530,268
Cash 2,023,477 3,348,562 3,331,623
Receivables:
Interest 3,015,568 1,002,786 1,807,629
Investments sold -- -- --
Other assets 14,946 3,067 1,656
------------------------------------------------------------------------------------------------------------------------
Total assets 178,404,916 61,871,224 113,671,176
------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 4,990,000 1,770,000 3,215,000
Payables:
Common share dividends 424,537 172,160 325,382
Preferred share dividends 10,157 5,208 11,102
Accrued expenses:
Management fees 92,845 24,907 41,159
Other 56,015 24,237 42,483
------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,573,554 1,996,512 3,635,126
------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 63,800,000 24,000,000 42,000,000
------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 109,031,362 $ 35,874,712 $ 68,036,050
========================================================================================================================
Common shares outstanding 8,936,333 3,134,100 5,736,007
========================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 12.20 $ 11.45 $ 11.86
========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 89,363 $ 31,341 $ 57,360
Paid-in surplus 125,826,082 44,455,670 81,421,806
Undistributed (Over-distribution of) net investment income 259,161 10,495 (85,834)
Accumulated net realized gain (loss) from investments and derivative
transactions 251,101 (112,771) (72,474)
Net unrealized appreciation (depreciation) of investments and
derivative transactions (17,394,345) (8,510,023) (13,284,808)
------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 109,031,362 $ 35,874,712 $ 68,036,050
========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited
========================================================================================================================
See accompanying notes to financial statements.
62
| Statement of
| OPERATIONS Six Months Ended November 30, 2008 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,691,970 $ 2,341,671 $ 2,312,456 $ 2,774,857
------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 702,876 278,385 281,267 350,022
Preferred shares - auction fees 99,051 40,072 40,072 48,836
Preferred shares - dividend disbursing agent fees 10,023 5,014 5,002 5,002
Shareholders' servicing agent fees and expenses 8,650 719 487 519
Interest expense on floating rate obligations 40,026 16,480 16,441 20,407
Custodian's fees and expenses 22,102 17,224 16,652 25,641
Trustees' fees and expenses 2,401 947 863 1,218
Professional fees 10,195 7,426 7,368 8,139
Shareholders' reports - printing and mailing
expenses 20,207 11,129 11,076 12,941
Stock exchange listing fees 4,621 296 297 380
Investor relations expense 15,800 6,148 6,294 7,843
Other expenses 8,893 8,121 8,051 8,296
------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 944,845 391,961 393,870 489,244
Custodian fee credit (17,134) (1,932) (2,418) (1,015)
Expense reimbursement -- (65,168) (80,937) (117,437)
------------------------------------------------------------------------------------------------------------------------
Net expenses 927,711 324,861 310,515 370,792
------------------------------------------------------------------------------------------------------------------------
Net investment income 4,764,259 2,016,810 2,001,941 2,404,065
------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (1,085,143) (567,160) (748,874) (769,003)
Change in net unrealized appreciation
(depreciation) of investments (21,722,982) (10,932,294) (10,405,605) (11,881,856)
------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (22,808,125) (11,499,454) (11,154,479) (12,650,859)
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,442,127) (582,367) (583,096) (702,343)
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,442,127) (582,367) (583,096) (702,343)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations $ (19,485,993) $ (10,065,011) $ (9,735,634) $ (10,949,137)
========================================================================================================================
See accompanying notes to financial statements.
63
| Statement of
| OPERATIONS (continued) Six Months Ended November 30, 2008 (Unaudited)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 4,833,864 $ 1,733,224 $ 3,257,644
------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 587,786 209,162 381,621
Preferred shares - auction fees 79,892 30,053 52,594
Preferred shares - dividend disbursing agent fees 10,018 5,014 5,000
Shareholders' servicing agent fees and expenses 7,364 487 583
Interest expense on floating rate obligations 67,161 23,855 43,299
Custodian's fees and expenses 18,449 9,056 24,089
Trustees' fees and expenses 2,050 723 1,159
Professional fees 9,020 6,754 8,392
Shareholders' reports - printing and mailing expenses 17,950 7,777 12,909
Stock exchange listing fees 4,638 222 405
Investor relations expense 13,249 4,550 8,113
Other expenses 8,035 7,268 8,377
------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 825,612 304,921 546,541
Custodian fee credit (14,128) (5,079) (2,566)
Expense reimbursement -- (48,964) (119,110)
------------------------------------------------------------------------------------------------------------------------
Net expenses 811,484 250,878 424,865
------------------------------------------------------------------------------------------------------------------------
Net investment income 4,022,380 1,482,346 2,832,779
------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (323,515) (167,245) (113,377)
Change in net unrealized appreciation (depreciation) of investments (19,188,015) (8,457,224) (14,405,051)
------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (19,511,530) (8,624,469) (14,518,428)
------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,158,650) (437,488) (764,357)
------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (1,158,650) (437,488) (764,357)
------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ (16,647,800) $ (7,579,611) $(12,450,006)
========================================================================================================================
See accompanying notes to financial statements.
64
| Statement of
| CHANGES in NET ASSETS
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
---------------------------- ---------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,764,259 $ 9,368,257 $ 2,016,810 $ 3,995,294 $ 2,001,941 $ 3,958,121
Net realized gain (loss) from:
Investments (1,085,143) (16,478) (567,160) 306,804 (748,874) 268,320
Forward swaps -- 363,696 -- 115,883 -- 69,275
Change in net unrealized appreciation
(depreciation) of:
Investments (21,722,982) (4,721,520) (10,932,294) (2,733,280) (10,405,605) (2,314,193)
Forward swaps -- -- -- 39,197 -- --
Distributions to Preferred
Shareholders:
From net investment income (1,442,127) (2,550,899) (582,367) (1,005,532) (583,096) (1,008,770)
From accumulated net realized gains -- -- -- -- -- (42,112)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations (19,485,993) 2,443,056 (10,065,011) 718,366 (9,735,634) 930,641
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,223,943) (6,484,065) (1,469,810) (2,936,953) (1,472,128) (2,949,879)
From accumulated net realized gains -- -- -- -- -- (137,096)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (3,223,943) (6,484,065) (1,469,810) (2,936,953) (1,472,128) (3,086,975)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- 30,834 35,950 56,801 26,294 12,749
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 30,834 35,950 56,801 26,294 12,749
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (22,709,936) (4,010,175) (11,498,871) (2,161,786) (11,181,468) (2,143,585)
Net assets applicable to Common shares
at the beginning of period 150,993,959 155,004,134 59,099,643 61,261,429 59,920,820 62,064,405
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of period $ 128,284,023 $ 150,993,959 $ 47,600,772 $ 59,099,643 $ 48,739,352 $ 59,920,820
=================================================================================================================================
Undistributed
(Over-distribution of) net
investment income at the end of
period $ 298,065 $ 199,876 $ (62,751) $ (27,384) $ (95,426) $ (42,143)
=================================================================================================================================
See accompanying notes to financial statements.
65
| Statement of
| CHANGES in NET ASSETS (continued)
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
---------------------------- ---------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,404,065 $ 4,770,568 $ 4,022,380 $ 7,845,477 $ 1,482,346 $ 2,980,096
Net realized gain (loss) from:
Investments (769,003) 203,469 (323,515) 831,194 (167,245) 60,379
Forward swaps -- -- -- 109,060 -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (11,881,856) (2,833,522) (19,188,015) (4,632,677) (8,457,224) (2,198,596)
Forward swaps -- -- -- 39,197 -- --
Distributions to Preferred
Shareholders:
From net investment income (702,343) (1,213,876) (1,158,650) (1,939,555) (437,488) (678,177)
From accumulated net realized gains -- -- -- (258,821) -- (97,853)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
operations (10,949,137) 926,639 (16,647,800) 1,993,875 (7,579,611) 65,849
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,705,723) (3,379,332) (2,867,816) (5,687,847) (1,071,719) (2,183,084)
From accumulated net realized gains -- -- -- (770,964) -- (306,068)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions to
Common shareholders (1,705,723) (3,379,332) (2,867,816) (6,458,811) (1,071,719) (2,489,152)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- 17,895 34,673 77,205 13,938 27,521
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- 17,895 34,673 77,205 13,938 27,521
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (12,654,860) (2,434,798) (19,480,943) (4,387,731) (8,637,392) (2,395,782)
Net assets applicable to Common shares
at the beginning of period 75,204,887 77,639,685 128,512,305 132,900,036 44,512,104 46,907,886
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of period $ 62,550,027 $ 75,204,887 $ 109,031,362 $ 128,512,305 $ 35,874,712 $ 44,512,104
=================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the end of
period $ 34,422 $ 38,423 $ 259,161 $ 263,247 $ 10,495 $ 37,356
=================================================================================================================================
See accompanying notes to financial statements.
66
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-----------------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/08 5/31/08
---------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,832,779 $ 5,485,024
Net realized gain (loss) from:
Investments (113,377) 66,158
Forward swaps -- --
Change in net unrealized appreciation (depreciation) of:
Investments (14,405,051) (3,628,537)
Forward Swaps -- --
Distributions to Preferred Shareholders:
From net investment income (764,357) (1,366,380)
From accumulated net realized gains -- (102,026)
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares from operations (12,450,006) 454,239
---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,046,995) (4,107,601)
From accumulated net realized gains -- (326,601)
---------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,046,995) (4,434,202)
---------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 61,481 69,440
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares from capital share transactions 61,481 69,440
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (14,435,520) (3,910,523)
Net assets applicable to Common shares at the beginning of period 82,471,570 86,382,093
---------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $ 68,036,050 $ 82,471,570
=================================================================================================================================
Undistributed (Over-distribution of) net investment income at the end of period $ (85,834) $ (107,261)
=================================================================================================================================
See accompanying notes to financial statements.
67
| Notes to
| FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) (collectively, the "Funds"). 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 may establish fair 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
forward swap contracts 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 an investment or derivative instrument, each Fund may use
market quotes provided by major broker/dealers in such investments. If it is
determined that the market price for an investment or derivative instrument is
unavailable or inappropriate, the Board of Trustees of the Funds, or its
designee, may establish fair value in accordance with procedures established in
good faith by the Board of Trustees. Temporary investments in securities that
have variable rate and demand features qualifying them as short-term investments
are valued at amortized cost, which approximates 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/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/delayed delivery purchase commitments. At November 30, 2008, there
were no such outstanding purchase commitments in any of the 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.
Interest income also includes paydown gains and losses, if any.
68
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its 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.
Effective November 30, 2007, the Funds adopted Financial Accounting Standards
Board (FASB) Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
(FIN 48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended November 30,
2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 at least 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. As
of November 30, 2008, 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
=====================================================================================================================
69
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
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
=====================================================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of these Funds. However, one implication of these auction
failures for Common shareholders is that the Funds' cost of leverage will likely
be higher, at least temporarily, than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may be lower than they otherwise would have been.
On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's
approval of plans to use tender option bonds (TOBs), also known as "floaters" or
floating rate obligations, to refinance a portion of the municipal funds'
outstanding Preferred shares, whose auctions have been failing for several
months. The plan included an initial phase of approximately $1 billion in
forty-one funds. As of November 30, 2008, the Funds have not redeem any of their
outstanding Preferred shares.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating
70
rate investment". An investment in a self-deposited inverse floater is accounted
for as a financing transaction in accordance with Statement of Financial
Accounting Standards No. 140 (SFAS No. 140) "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and the related interest paid to the
holders of the short-term floating rate certificates is included as "Interest
expense on floating rate obligations" on the Statement of Operations.
During the six months ended November 30, 2008, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is included as "Unrealized
depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At
November 30, 2008, none of the Funds had exposure to externally-deposited
Recourse Trusts.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended November 30, 2008, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
---------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 3,007,361 $ 1,238,301 $ 1,235,301 $ 1,533,328
Average annual interest rate and fees 2.65% 2.65% 2.65% 2.65%
=====================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 5,194,590 $ 1,844,754 $ 3,348,770
Average annual interest rate and fees 2.58% 2.58% 2.58%
=====================================================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed 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 the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
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 reduce 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. None of the Funds invested
in forward interest rate swap transactions during the six months ended November
30, 2008.
71
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
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.
2. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of each Fund's fair value measurements as of November
30, 2008:
MARYLAND PREMIUM INCOME (NMY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 199,985,241 $ -- $ 199,985,241
=====================================================================================================================
MARYLAND DIVIDEND ADVANTAGE (NFM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 77,309,457 $ -- $ 77,309,457
=====================================================================================================================
MARYLAND DIVIDEND ADVANTAGE 2 (NZR) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 78,790,984 $ -- $ 78,790,984
=====================================================================================================================
72
MARYLAND DIVIDEND ADVANTAGE 3 (NWI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 99,714,583 $ -- $ 99,714,583
=====================================================================================================================
VIRGINIA PREMIUM INCOME (NPV) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 173,350,925 $ -- $ 173,350,925
=====================================================================================================================
VIRGINIA DIVIDEND ADVANTAGE (NGB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 57,516,809 $ -- $ 57,516,809
=====================================================================================================================
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------
Investments $ -- $ 108,530,268 $ -- $ 108,530,268
=====================================================================================================================
3. FUND SHARES
Transactions in Common shares were as follows:
MARYLAND PREMIUM MARYLAND DIVIDEND MARYLAND DIVIDEND
INCOME (NMY) ADVANTAGE (NFM) ADVANTAGE 2 (NZR)
------------------------------- -------------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 2,122 2,589 3,983 1,872 863
====================================================================================================================================
MARYLAND DIVIDEND VIRGINIA PREMIUM VIRGINIA DIVIDEND
ADVANTAGE 3 (NWI) INCOME (NPV) ADVANTAGE (NGB)
------------------------------- -------------------------------- -------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
11/30/08 5/31/08 11/30/08 5/31/08 11/30/08 5/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 1,239 2,798 5,228 1,038 1,821
====================================================================================================================================
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/08 5/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders due to reinvestment of distributions 4,497 4,680
====================================================================================================================================
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended November 30, 2008, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Purchases $ 10,481,779 $ 4,209,228 $ 5,011,782 $ 5,870,659
Sales and maturities 14,003,104 5,609,433 6,188,823 7,263,498
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Purchases $ 4,516,217 $ 1,615,699 $ 2,925,546
Sales and maturities 3,739,057 3,567,895 5,749,078
====================================================================================================================================
73
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No. 140. To the extent that differences arise that
are permanent in nature, such amounts are reclassified within the capital
accounts on the Statement of Assets and Liabilities presented in the annual
report, based on their federal tax basis treatment; temporary differences do not
require reclassification. Temporary and permanent differences do not impact the
net asset values of the Funds.
At November 30, 2008, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND IVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 216,896,945 $ 87,416,036 $ 88,008,755 $ 111,169,149
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Cost of investments $ 185,356,428 $ 64,240,889 $ 118,551,173
====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2008, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 3,702,049 $ 823,635 $ 1,134,890 $ 1,296,750
Depreciation (22,780,784) (11,823,184) (11,242,661) (13,856,316)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (19,078,735) $ (10,999,549) $ (10,107,771) $ (12,559,566)
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 2,825,123 $ 677,743 $ 1,412,943
Depreciation (19,818,682) (9,172,355) (14,647,625)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (16,993,559) $ (8,494,612) $ (13,234,682)
====================================================================================================================================
74
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2008, the Funds' last tax 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 * $ 603,666 $ 170,872 $ 157,399 $ 283,959
Undistributed net ordinary income ** 77,161 8,237 73,371 7,997
Undistributed net long-term capital gains 320,091 -- 125,752 122,752
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 380,781 $ 206,494 $ 177,008
Undistributed net ordinary income ** 109,298 -- 18,227
Undistributed net long-term capital gains 465,316 54,477 56,020
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on May 1, 2008, paid on June 2, 2008.
** 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 Funds' last tax year ended
May 31, 2008, 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 $ 9,009,735 $ 3,953,181 $ 3,960,918 $ 4,602,748
Distributions from net ordinary income ** 106,313 -- 8,769 3,541
Distributions from net long-term capital gains -- -- 179,208 --
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $ 7,666,828 $ 2,850,082 $ 5,465,830
Distributions from net ordinary income ** 8,291 28,583 21,724
Distributions from net long-term capital gains 1,029,785 403,921 428,627
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2008, the Funds' last tax year end, Maryland Dividend Advantage (NFM)
had unused capital loss carryforwards of $183,719 available for federal income
tax purposes to be applied against future capital gains, if any. If not applied,
$106,052, $15,613 and $62,504 of the carryforward will expire in the years ended
May 31, 2012, 2013 and 2014, respectively.
Virginia Dividend Advantage 2 (NNB) elected to defer net realized losses from
investments incurred from November 1, 2007 through May 31, 2008, the Fund's last
tax year end, ("post-October losses") in accordance with federal income tax
regulations. Post-October losses of $6,148 were treated as having arisen on the
first day of the current fiscal year.
6. MANAGEMENT FEES 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, 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.
75
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
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:
MARYLAND PREMIUM INCOME (NMY)
VIRGINIA PREMIUM INCOME (NPV)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS 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)
VIRGINIA DIVIDEND ADVANTAGE (NGB)
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS 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
====================================================================================================================================
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 following table.
As of November 30, 2008, the complex-level fee rate was .2000%.
76
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
------------------------------------------------------------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
====================================================================================================================================
(1) The complex-level component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all Nuveen funds,
with such daily net assets to include assets attributable to preferred
stock issued by or borrowings by such funds but to exclude assets
attributable to investments in other Nuveen funds.
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 its 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 their 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.
77
| Notes to
| FINANCIAL STATEMENTS (continued) (Unaudited)
The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for
any portion of its fees and expenses beyond September 30, 2011.
For the first eight years of Maryland Dividend Advantage 3's (NWI) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
------------------------------------------------------------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
====================================================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 3 (NWI) for
any portion of its fees and expenses beyond September 30, 2010.
For the first ten years of Virginia Dividend Advantage 2's (NNB) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
------------------------------------------------------------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
====================================================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Virginia Dividend Advantage 2 (NNB) for
any portion of its fees and expenses beyond November 30, 2011.
7. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161)
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of November 30, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
78
8. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 31, 2008, to shareholders of
record on December 15, 2008, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0515 $ .0585 $ .0585 $ .0535
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Dividend per share $ .0540 $ .0575 $ .0595
====================================================================================================================================
At the same time, the following Funds declared capital gains and/or ordinary
income distributions as follows:
MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE 2 ADVANTAGE 3
(NMY) (NZR) (NWI)
------------------------------------------------------------------------------------------------------------------------------------
Capital gains distribution per share $ .0216 $ .0223 $ .0169
Net ordinary income distribution per share* .0052 .0125 --
====================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Capital gains distribution per share $ .0388 $ .0133 $ .0073
Net ordinary income distribution per share* .0091 -- .0024
====================================================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any
Preferred Shares
On January 8, 2009, Maryland Premium Income (NMY), Maryland Dividend Advantage
(NFM), Maryland Dividend Advantage 2 (NZR) and Maryland Dividend Advantage 3
(NWI) noticed for redemption $0.5 million, $3.125 million, $2.45 million and
$0.875 million of their outstanding Preferred shares, respectively, at
liquidation value, using the proceeds from the issuance of TOBs and portfolio
sales.
79
| Financial
| HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
-----------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND PREMIUM INCOME (NMY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ 14.19 $ .45 $ (2.14) $ (.14) $ -- $ (1.83)
2008 14.57 .88 (.41) (.24) -- .23
2007 14.47 .88 .12 (.23) -- .77
2006 15.12 .89 (.56) (.18) -- .15
2005 14.28 .92 .92 (.10) -- 1.74
2004 15.10 .96 (.81) (.06) -- .09
MARYLAND DIVIDEND ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 14.12 .48 (2.74) (.14) -- (2.40)
2008 14.65 .95 (.54) (.24) -- .17
2007 14.57 .95 .12 (.24) -- .83
2006 15.13 .95 (.47) (.19) -- .29
2005 14.43 .98 .75 (.10) -- 1.63
2004 15.47 1.01 (1.07) (.05) -- (.11)
====================================================================================================================================
LESS DISTRIBUTIONS
----------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
--------------------------------------------------------------------------------------------------------------------
MARYLAND PREMIUM INCOME (NMY)
--------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ (.30) $ -- $ (.30) $ 12.06 $ 9.43
2008 (.61) -- (.61) 14.19 13.10
2007 (.67) -- (.67) 14.57 14.84
2006 (.78) (.02) (.80) 14.47 14.52
2005 (.90) -- (.90) 15.12 15.78
2004 (.91) -- (.91) 14.28 14.45
MARYLAND DIVIDEND ADVANTAGE (NFM)
--------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (.35) -- (.35) 11.37 9.95
2008 (.70) -- (.70) 14.12 14.19
2007 (.75) -- (.75) 14.65 15.28
2006 (.85) -- (.85) 14.57 15.19
2005 (.93) -- (.93) 15.13 15.63
2004 (.93) -- (.93) 14.43 15.62
====================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
----------------------------- ----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND PREMIUM INCOME (NMY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (26.03)% (13.01)% $ 128,284 1.33%*** 1.28%*** 6.70%***
2008 (7.55) 1.63 150,994 1.25 1.24 6.13
2007 6.96 5.35 155,004 1.27 1.23 5.95
2006 (2.94) 1.08 153,834 1.23 1.23 6.05
2005 15.64 12.52 160,496 1.24 1.24 6.22
2004 (10.77) .64 151,107 1.24 1.24 6.54
MARYLAND DIVIDEND ADVANTAGE (NFM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (27.80) (17.23) 47,601 1.43*** 1.37*** 7.13***
2008 (2.31) 1.25 59,100 1.30 1.28 6.39
2007 5.51 5.74 61,261 1.30 1.26 6.06
2006 2.51 1.95 60,762 1.26 1.26 5.99
2005 6.22 11.60 63,051 1.26 1.26 6.11
2004 2.99 (.69) 60,041 1.24 1.24 6.34
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
-----------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
----------------------------------------------------------------------------------------------------
MARYLAND PREMIUM INCOME (NMY)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.31%*** 1.25%*** 6.72%*** 5%
2008 1.23 1.22 6.15 14
2007 1.26 1.22 5.96 13
2006 1.21 1.21 6.07 13
2005 1.23 1.23 6.22 10
2004 1.23 1.23 6.55 16
MARYLAND DIVIDEND ADVANTAGE (NFM)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.19*** 1.13*** 7.37*** 5
2008 .99 .98 6.69 12
2007 .93 .89 6.43 12
2006 .81 .81 6.44 14
2005 .79 .79 6.57 11
2004 .78 .78 6.80 10
====================================================================================================
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:
2009 (b) $ 79,100 $ 25,000 $ 65,545
2008 79,100 25,000 72,722
2007 79,100 25,000 73,990
2006 79,100 25,000 73,620
2005 79,100 25,000 75,726
2004 79,100 25,000 72,758
MARYLAND DIVIDEND ADVANTAGE (NFM)
--------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 32,000 25,000 62,188
2008 32,000 25,000 71,172
2007 32,000 25,000 72,860
2006 32,000 25,000 72,470
2005 32,000 25,000 74,259
2004 32,000 25,000 71,907
================================================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
80-81 spread
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ 14.29 $ .48 $ (2.66) (.14) $ -- $ (2.32)
2008 14.81 .94 (.48) (.24) (.01) .21
2007 14.76 .94 .10 (.23) -- .81
2006 15.45 .94 (.59) (.18) -- .17
2005 14.64 .94 .90 (.09) -- 1.75
2004 15.71 .96 (1.08) (.06) -- (.18)
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 14.02 .45 (2.36) (.13) -- (2.04)
2008 14.48 .89 (.49) (.23) -- .17
2007 14.33 .88 .16 (.22) -- .82
2006 14.82 .86 (.46) (.18) -- .22
2005 13.88 .86 .97 (.10) -- 1.73
2004 14.89 .87 (1.03) (.06) -- (.22)
==================================================================================================================
LESS DISTRIBUTIONS
------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
------------------------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ (.35) $ -- $ (.35) $ 11.62 $ 9.87
2008 (.70) (.03) (.73) 14.29 14.25
2007 (.76) -- (.76) 14.81 15.38
2006 (.83) (.03) (.86) 14.76 14.76
2005 (.88) (.06) (.94) 15.45 15.41
2004 (.87) (.02) (.89) 14.64 14.28
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (.32) -- (.32) 11.66 10.25
2008 (.63) -- (.63) 14.02 13.01
2007 (.67) -- (.67) 14.48 14.74
2006 (.71) -- (.71) 14.33 13.85
2005 (.78) (.01) (.79) 14.82 14.40
2004 (.79) -- (.79) 13.88 13.24
==========================================================================================
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
-------------------- ----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
----------------------------------------------------------------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (28.70)% (16.45)% $ 48,739 1.42%*** 1.36%*** 6.90%***
2008 (2.30) 1.54 59,921 1.29 1.28 6.18
2007 9.32 5.56 62,064 1.32 1.28 5.86
2006 1.13 1.14 61,726 1.25 1.25 5.76
2005 14.71 12.22 64,500 1.23 1.23 5.74
2004 (2.90) (1.16) 61,064 1.24 1.24 5.90
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (18.99) (14.74) 62,550 1.40*** 1.34*** 6.52***
2008 (7.38) 1.24 75,205 1.26 1.25 5.86
2007 11.47 5.75 77,640 1.28 1.24 5.52
2006 1.09 1.55 76,809 1.23 1.23 5.41
2005 14.98 12.67 79,443 1.23 1.23 5.40
2004 (5.97) (1.51) 74,369 1.22 1.22 5.59
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
----------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
---------------------------------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
---------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.12%*** 1.06%*** 7.20%*** 6%
2008 .94 .92 6.53 13
2007 .90 .86 6.28 10
2006 .77 .77 6.23 15
2005 .77 .77 6.20 10
2004 .78 .78 6.36 11
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
---------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.06*** 1.00*** 6.86*** 5
2008 .84 .83 6.29 13
2007 .79 .75 6.01 11
2006 .73 .73 5.91 14
2005 .74 .74 5.89 12
2004 .73 .73 6.08 15
===================================================================================================
PREFERRED SHARES AT END OF PERIOD
------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
--------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
--------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ 32,000 $ 25,000 $ 63,078
2008 32,000 25,000 71,813
2007 32,000 25,000 73,488
2006 32,000 25,000 73,224
2005 32,000 25,000 75,390
2004 32,000 25,000 72,706
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
--------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 39,000 25,000 65,096
2008 39,000 25,000 73,208
2007 39,000 25,000 74,769
2006 39,000 25,000 74,237
2005 39,000 25,000 75,925
2004 39,000 25,000 72,672
==========================================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
82-83 spread
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
--------------------------------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
--------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ 14.39 $ .45 $ (2.19) $ (.13) $ -- $ (1.87)
2008 $ 14.89 .88 (.40) (.22) (.03) .23
2007 14.89 .88 .07 (.23) --* .72
2006 15.82 .88 (.59) (.15) (.03) .11
2005 14.95 .93 .93 (.09) -- 1.77
2004 15.93 .97 (.99) (.05) -- (.07)
VIRGINIA DIVIDEND ADVANTAGE (NGB)
--------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 14.21 .47 (2.75) (.14) -- (2.42)
2008 14.98 .95 (.67) (.22) (.03) .03
2007 14.91 .96 .14 (.24) -- .86
2006 15.52 .97 (.54) (.17) -- .26
2005 14.42 .99 1.13 (.09) -- 2.03
2004 15.43 1.02 (1.05) (.05) -- (.08)
==============================================================================================================
LESS DISTRIBUTIONS
------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
----------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ (.32) $ -- $ (.32) $ 12.20 $ 11.49
2008 (.64) (.09) (.73) 14.39 14.04
2007 (.70) (.02) (.72) 14.89 15.24
2006 (.80) (.24) (1.04) 14.89 14.91
2005 (.90) -- (.90) 15.82 17.65
2004 (.91) -- (.91) 14.95 14.95
VIRGINIA DIVIDEND ADVANTAGE (NGB)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (.34) -- (.34) 11.45 11.81
2008 (.70) (.10) (.80) 14.21 14.81
2007 (.79) -- (.79) 14.98 17.51
2006 (.87) -- (.87) 14.91 17.10
2005 (.93) -- (.93) 15.52 16.99
2004 (.93) -- (.93) 14.42 15.07
========================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
---------------------- ------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE** VALUE** SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (16.07)% (13.14)% $ 109,031 1.37%**** 1.26%**** 6.65%****
2008 (2.94) 1.56 128,512 1.25 1.23 6.02
2007 7.18 4.89 132,900 1.20 1.20 5.80
2006 (9.98) 0.71 132,626 1.19 1.19 5.75
2005 24.54 12.13 140,340 1.20 1.20 5.98
2004 (10.70) (.42) 132,122 1.20 1.20 6.33
VIRGINIA DIVIDEND ADVANTAGE (NGB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (18.12) (17.24) 35,875 1.48**** 1.37**** 6.94****
2008 (10.58) .23 44,512 1.30 1.28 6.28
2007 7.24 5.82 46,908 1.27 1.27 5.99
2006 5.86 1.74 46,626 1.26 1.26 5.93
2005 19.11 14.46 48,474 1.28 1.28 6.13
2004 (8.11) (.50) 44,988 1.24 1.24 6.39
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT***
------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
-------------------------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.35%**** 1.24%**** 6.68%**** 2%
2008 1.24 1.22 6.03 14
2007 1.19 1.19 5.82 16
2006 1.17 1.17 5.77 16
2005 1.19 1.19 5.99 17
2004 1.19 1.19 6.34 14
VIRGINIA DIVIDEND ADVANTAGE (NGB)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.22**** 1.10**** 7.20**** 3
2008 1.00 .98 6.59 10
2007 .90 .90 6.36 23
2006 .82 .82 6.38 16
2005 .81 .81 6.59 15
2004 .77 .77 6.86 7
=======================================================================================================
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:
2009 (b) $ 63,800 $ 25,000 $ 67,724
2008 63,800 25,000 75,357
2007 63,800 25,000 77,077
2006 63,800 25,000 76,970
2005 63,800 25,000 79,992
2004 63,800 25,000 76,772
VIRGINIA DIVIDEND ADVANTAGE (NGB)
------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 24,000 25,000 62,369
2008 24,000 25,000 71,367
2007 24,000 25,000 73,862
2006 24,000 25,000 73,568
2005 24,000 25,000 75,493
2004 24,000 25,000 71,863
========================================================================
* Rounds to less than $.01 per share.
** Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
84-85 spread
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ PREFERRED PREFERRED
NET ASSET INVESTMENT UNREALIZED SHARE- SHARE-
VALUE INCOME GAIN (LOSS) HOLDERS+ HOLDERS+ TOTAL
---------------------------------------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
---------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ 14.39 $ .49 $ (2.53) $ (.13) $ -- $ (2.17)
2008 15.08 .96 (.61) (.24) (.02) .09
2007 15.02 .96 .11 (.24) -- .83
2006 15.70 .95 (.52) (.18) (.01) .24
2005 14.79 .96 1.13 (.09) (.01) 1.99
2004 16.02 .99 (1.22) (.06) -- (.29)
=====================================================================================================================
LESS DISTRIBUTIONS
-----------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
----------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
----------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ (.36) $ -- $ (.36) $ 11.86 $ 12.52
2008 (.72) (.06) (.78) 14.39 14.65
2007 (.77) -- (.77) 15.08 16.73
2006 (.85) (.07) (.92) 15.02 16.40
2005 (.89) (.19) (1.08) 15.70 16.74
2004 (.89) (.05) (.94) 14.79 14.65
========================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE CREDIT/REIMBURSEMENT
-------------------- -----------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++(a) INCOME++(a)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) (12.24)% (15.30)% $ 68,036 1.42%*** 1.31%*** 7.05%***
2008 (7.58) .63 82,472 1.24 1.22 6.21
2007 6.96 5.60 86,382 1.21 1.21 5.89
2006 3.45 1.53 85,887 1.19 1.19 5.75
2005 21.96 13.75 89,626 1.19 1.19 5.74
2004 (3.81) (1.84) 84,248 1.20 1.20 5.99
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER CREDIT/REIMBURSEMENT**
----------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++(a) INCOME++ RATE
----------------------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) 1.11%*** 0.99%*** 7.37%*** 2%
2008 .90 .88 6.56 10
2007 .78 .78 6.31 19
2006 .73 .73 6.21 10
2005 .74 .74 6.19 13
2004 .74 .74 6.44 16
====================================================================================================
PREFERRED SHARES AT END OF PERIOD
--------------------------------------
AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE
-----------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
-----------------------------------------------------------------------------
Year Ended 5/31:
2009 (b) $ 42,000 $ 25,000 $ 65,498
2008 42,000 25,000 74.090
2007 42,000 25,000 76,418
2006 42,000 25,000 76,123
2005 42,000 25,000 78,349
2004 42,000 25,000 75,148
=============================================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended November 30, 2008.
See accompanying notes to financial statements.
86-87 spread
Reinvest Automatically
EASILY and CONVENIENTLY
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen 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
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. 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.
88
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.
89
Glossary of
TERMS USED in this REPORT
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
o 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.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o 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.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
90
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) 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.
BOARD OF TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
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 and/or redeem shares of its own common or
auction rate preferred stock in the future at such times and in such amounts as
is deemed advisable. No shares were repurchased or redeemed during the period
covered by this report. Any future repurchases and/or redemptions will be
reported to shareholders in the next annual or semi-annual report.
91
Nuveen Investments:
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
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.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
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Investor education
Interactive planning tools
ESA-A-1108D
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 to this filing.
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: See
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: See 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/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: February 6, 2009
-------------------------------------------------------------------
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 6, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 6, 2009
-------------------------------------------------------------------