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
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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
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Date of fiscal year end: May 31
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Date of reporting period: November 30, 2009
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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.
[LOGO: Nuveen Investments]
Closed-End Funds
NUVEEN INVESTMENTS
MUNICIPAL CLOSED-END FUNDS
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Semi-Annual Report
November 30, 2009
--------------- ----------------- ----------------- ------------------
Nuveen Maryland Nuveen Maryland Nuveen Maryland Nuveen Maryland
Premium Income Dividend Advantage Dividend Advantage Dividend Advantage
Municipal Fund Municipal Fund Municipal Fund 2 Municipal Fund 3
NMY NFM NZR NWI
--------------- ------------------ ------------------
Nuveen Virginia Nuveen Virginia Nuveen Virginia
Premium Income Dividend Advantage Dividend Advantage
Municipal Fund Municipal Fund Municipal Fund 2
NPV NGB NNB
November 09
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[LOGO: NUVEEN INVESTMENTS]
CHAIRMAN'S
LETTER TO SHAREHOLDERS
[Photo: Robert P Bremner]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year continues to recede but there is concern about the impact of a
reduction in official liquidity support programs. The major institutions that
are the linchpin of the international financial system have strengthened their
capital structures, but many still struggle with losses in their various
portfolios. Global trends include increasing trade and concern about the ability
of the U.S. government to address its substantial budgetary deficits.
While the fixed-income and equity markets have recovered from the lows recorded
in the first quarter of 2009, identifying those developments that will define
the future is never easy, and rarely is it more difficult than at present. A
fundamental component of a successful investment program is a commitment to
remain focused on long-term investment goals even during periods of heightened
market uncertainty. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of 2009 as part of the annual management
contract renewal process. Confirming the appropriateness of a long term
investment strategy is as important for our shareholders as it is for our
professional investment managers. For that reason, I again encourage you to
remain in communication with your financial consultant on this subject.
In September 2009, Nuveen completed the refinancing, at par, of all the auction
rate preferred shares issued by its taxable closed-end funds. On October 15,
2009, Nuveen announced the first successful offering of an issue of MuniFund
Term Preferred Shares. This new form of preferred securities joins the Variable
Rate Demand Preferred Shares as vehicles for refinancing existing municipal fund
auction rate preferred shares (ARPS). By the beginning of December 2009, six of
the leveraged municipal closed-end funds had redeemed all of their outstanding
ARPS. Nuveen remains committed to resolving the issues connected with
outstanding ARPS. Please consult the Nuveen web site for the most recent
information on this issue and all recent developments on your Nuveen Funds at:
www.nuveen.com.
On behalf of 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 Board
January 20, 2010
Nuveen Investments 1
Portfolio Manager's Comments
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)
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, 2009?
During this reporting period, municipal bond prices generally rose, as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to create favorable supply and demand conditions.
One reason for the decline in new tax-exempt supply was the introduction of the
Build America Bond program. Build America Bonds are a new class of taxable
municipal debt created as part of the February 2009 economic stimulus package.
These bonds offer municipal issuers a federal subsidy equal to 35% of a
security's interest payments, and therefore offer issuers with an attractive
alternative to traditional tax-exempt debt. During the six-month period ended
November 30, 2009, taxable Build America Bonds issuance totaled $44.9 billion,
accounting for almost 21% of new bonds in the municipal market. Since interest
payments from these bonds represent taxable income, we do not see them as a good
investment opportunity for these Funds.
Due in part to the decline in tax-exempt supply, investment activity in the
Maryland and Virginia Funds was more limited than usual. The already tight
supply situation was further compounded by the lack of tax-exempt bonds offering
the longer maturities that we specifically sought to purchase for these Funds
because the majority of issuers offering longer maturity bonds found it more
cost-effective to issue taxable Build America Bonds. Trading activity also was
dampened during much of the period by a market environment in which most of the
bonds available for investment offered lower yields. In our opinion, it did not
make sense to generate trading costs in such an environment.
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.
2 Nuveen Investments
Overall, our objective was to improve the Funds' liquidity profiles and have the
capital we needed to reinvest at more opportune times. Cash for new purchases
was generated by maturing or called bonds. Although the supply of new tax-exempt
municipal bonds was tight, we continued to monitor the market for attractive
value opportunities. When the municipal bond market backed up slightly in
October 2009, we took advantage of an opportunity to add a new AA rated housing
issue to NMY.
As of November 30, 2009, all seven of these Funds continued to use inverse
floating rate securities.(1) We employ inverse floaters as a form of leverage
for a variety of reasons, including duration management, income enhancement and
total return enhancement.
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 11/30/09
SIX-MONTH 1-YEAR 5-YEAR 10-YEAR
------------------------------------------------------------------------------------------------
MARYLAND FUNDS
NMY 8.92% 26.04% 4.66% 6.60%
NFM 11.40% 31.19% 4.53% N/A
NZR 10.97% 29.59% 4.34% N/A
NWI 10.63% 29.68% 4.80% N/A
Standard & Poor's (S&P) Maryland Municipal Bond Index(2) 5.30% 14.87% 4.46% 5.51%
VIRGINIA FUNDS
NPV 7.76% 25.14% 4.19% 6.39%
NGB 9.75% 28.73% 4.13% N/A
NNB 9.87% 27.42% 4.27% N/A
Standard & Poor's (S&P) Virginia Municipal Bond Index(2) 5.08% 14.92% 4.42% 5.50%
Standard & Poor's (S&P) National Municipal Bond Index(3) 5.15% 14.83% 4.34% 5.58%
Lipper Other States Municipal Debt Funds Average(4) 8.64% 25.98% 4.20% 6.20%
------------------------------------------------------------------------------------------------
For the six months ended November 30, 2009, the cumulative returns on common
share net asset value (NAV) for all the Funds exceeded the return for their
respective Standard & Poor's (S&P) Maryland or Virginia Municipal Bond Index as
well as exceeded the return for the S&P National Municipal Bond Index. NMY, NFM,
NZR, NWI, NGB and NNB outperformed the average return for the Lipper Other
States Municipal Debt Funds Average, while NPV lagged this average.
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure and sector
allocation. In addition, leverage was an important factor affecting each Fund's
performance over this period. The impact of leverage is discussed in more
detail on page five.
* 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.
(1) An inverse floating rate security, also known as an inverse floater, 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 report.
(2) The Standard & Poor's (S&P) Maryland and Virginia Municipal Bond Indexes
are unleveraged, market value-weighted indexes designed to measure the
performance of the investment-grade municipal bond markets in Maryland and
Virginia, respectively. These indexes do not reflect any initial or ongoing
expenses and are not available for direct investment.
(3) 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. This index
does not reflect any initial or ongoing expenses and is not available for
direct investment.
(4) 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-month, 43 funds; 1-year, 43 funds; 5-year, 43 funds; and
10-year, 20 funds. The returns account for the effects of management fees
and assume reinvestment of dividends but do not reflect any applicable
sales charges. You cannot invest directly in a Lipper Average.
Nuveen Investments 3
During this period, yields on tax-exempt bonds generally declined and bond
prices rose, especially at the longer end of the municipal yield curve. As a
result, longer-term bonds generally outperformed credits with shorter
maturities. In general, all of these Funds were relatively underweighted in
bonds at the shorter end of the yield curve, overweighted in the intermediate
part and slightly underweighted at the longer end. Among the Virginia Funds,
where durations were generally slightly longer than our benchmark, these
weightings resulted in a net positive for performance, while the net impact in
the Maryland Funds, where overall duration was in line with the benchmark, was
neutral.
While yield curve positioning and duration played important roles in
performance, credit exposure also had a significant impact. The demand for
municipal bonds increased among both institutional and individual investors.
This was driven by a variety of factors, including concerns about potential tax
increases, the need to rebalance portfolio allocations and a growing appetite
for additional risk. At the same time, the supply of new tax-exempt municipal
securities declined. As investors bid up municipal bond prices, bonds rated BBB
or below and non-rated bonds generally outperformed those rated AAA. Overall,
the performances of these Funds benefited from their credit sector allocations.
Among the Maryland Funds, NFM, NZR and NWI received larger positive
contributions from their credit allocations than did NMY, which had the smallest
allocation of BBB and non-rated credits and the heaviest weighting of AAA rated
bonds. The story was similar in the Virginia Funds, where NPV's overall higher
credit quality (as measured by allocations of AAA and AA bonds) and lower
exposure to BBB and non-rated bonds constrained its performance relative to
those of NGB and NNB.
Holdings that generally contributed to the Funds' performances included
industrial development revenue (IDR) and health care bonds, while zero coupon
bonds were also among the strongest performers. In addition, transportation,
housing and special tax bonds also outperformed the general municipal market
during this period. The Maryland Funds, especially NFM, received positive
contributions from their IDR, health care, and housing holdings across the
board, while the Virginia Funds were relatively overweighted in health care and
housing, which benefited their performances during this period.
On the other hand, pre-refunded bonds, which are often backed by U.S. Treasury
securities and which had been one of the top performing segments of the
municipal bond market over the past two years, performed especially poorly
during this period. This underperformance can be attributed primarily to these
bonds' shorter effective maturities and higher credit quality.
General obligation and other tax-supported bonds also failed to keep pace with
the over-all municipal market during this period. Other sectors that lagged the
municipal market included water and sewer and leasing, while education, resource
recovery and electric bonds underperformed by a slight margin. The Virginia
Funds generally were underexposed to tax-supported and education bonds relative
to the municipal market as a whole, which lessened the negative impact from
these sectors. Among the Maryland Funds, NMY and NWI were slightly overweighted
in tax-supported bonds and all four Funds were overexposed to higher education
credits, which detracted from performance.
4 Nuveen Investments
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative indexes was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging
provides opportunities for additional income and total returns for common
shareholders. However, use of leverage also can expose common shareholders
to additional risk--especially when market conditions are unfavorable. For
example, as the prices of securities held by a Fund decline, the negative
impact of these valuation changes on common share net asset value and
common shareholder total return is magnified by the use of leverage.
Conversely, leverage may enhance common share returns during periods when
bond prices generally are rising. In general, leverage made a significant
positive contribution to those Funds over this reporting period.
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate
preferred shares issued by many closed-end funds, including these Nuveen
Funds, have been hampered by a lack of liquidity since February 2008. Since
that time, more auction rate preferred shares have been submitted for sale
in their regularly scheduled auctions than there have been offers to buy.
In fact, offers to buy have been almost completely non-existent since late
February 2008. This means that these auctions have "failed to clear," and
that many, or all, of the auction rate preferred shareholders who wanted to
sell their shares in these auctions were unable to do so. This lack of
liquidity in auction rate preferred shares did not lower the credit quality
of these shares, and auction rate 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 auction rate preferred shares. In the recent market, with short-term
rates at multi-generational lows, those maximum rates also have been low.
One continuing implication for common shareholders from the auction
failures is that each Fund's cost of leverage likely has been incrementally
higher at times than it other-wise might have been had the auctions
continued to be successful. As a result, each Fund's common share earnings
likely have been incrementally lower at times than they otherwise might
have been.
As noted in past shareholder reports, the Funds' Board of Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating
rate securities, to refinance a portion of the outstanding auction rate
preferred shares issued by these and other Nuveen Funds. The amount of TOBs
that a Fund may use varies according to the composition of each Fund's
portfolio. Some Funds have a greater ability to use TOBs than others. As of
November 30, 2009, some Nuveen Funds also have issued Variable Rate Demand
Preferred Shares (VRDP), but these issuances have been limited since it
Nuveen Investments 5
has been difficult to find liquidity facilities on economically viable
terms given the constrained credit environment. Additionally some Nuveen
Funds have issued MuniFund Term Preferred Shares (MTP), a fixed-rate form
of preferred stock with a mandatory redemption period of five years.
However, the Funds cannot provide any assurance on when the remaining
outstanding auction rate preferred shares might be redeemed.
As of November 30, 2009, the amount of auction rate preferred securities
redeemed by these Funds are as shown in the accompanying table.
AUCTION RATE
PREFERRED SHARES
REDEEMED
AND/OR % OF ORIGINAL
NOTICED AUCTION RATE
FUND FOR REDEMPTION PREFERRED SHARES
------------------------------------------------------------------
NMY $ 8,225,000 10.4%
NFM $ 6,175,000 19.3%
NZR $ 5,375,000 16.8%
NWI $ 4,000,000 10.3%
NPV $ 6,800,000 10.7%
NGB $24,000,000 100.0%
NNB $42,000,000 100.0%
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During October 2009 and November 2009, NGB and NNB successfully
completed the issuance of $20.1 million and $37.8 million,
respectively, of 2.80%, Series 2014 MTP. Also subsequent to the
reporting period, NPV entered into an agreement to issue $29.2
million of 2.65%, Series 2015 MTP, which issuance is expected to
occur on January 26, 2010. MTP is a new form of closed-end fund
preferred shares designed to refinance, partially or completely, and
replace the auction rate preferred shares previously issued by the
Funds as leverage. The net proceeds from this offering were used to
refinance a portion of NGB's and NNB's outstanding auction rate
preferred shares. The newly-issued MTP shares trade on the New York
Stock Exchange (NYSE) under the symbol "NGB Pr C" and "NNB Pr C" for
NGB and NNB, respectively. MTP is a fixed-rate form of preferred
stock with a mandatory redemption period, in this case, of five
years. By issuing MTP, the Funds seek to take advantage of the
current historically low interest rate environment to lock in an
attractive federally tax-exempt cost of leverage for a period as long
as the term of the MTP. The Funds' managers believe that issuing MTP
may help the Funds mitigate the risk of a significant increase in
their cost of leverage should short-term interest rates rise
sharply in the coming years.
Subsequent to the reporting period, NMY, NFM, NZR and NWI filed with
the SEC a registration statement seeking to register MTP. These
registrations statements, declared effective by the SEC, are subject
to the terms and conditions as noted in the preceding paragraph.
6 Nuveen Investments
As of November 30, 2009, 75 out of the 84 Nuveen closed-end municipal
funds that had issued auction rate preferred shares have redeemed, at
par, all or a portion of these shares. These redemptions bring the
total amount of Nuveen's municipal closed-end funds' auction rate
preferred share redemptions to approximately $2.5 billion of the
original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 7
Common share dividend and Share Price Information
During the six-month period ended November 30, 2009, each of the
seven Funds in this report had one monthly dividend increase.
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, 2009, all of the Funds in this
report had positive UNII balances, based upon our best estimate, for
tax purposes and positive UNII balances for financial statement
purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
Since the inception of the Funds' repurchase program, the Funds have
not repurchased any of their outstanding common shares.
As of November 30, 2009, the Funds' common share prices were trading
at (+) premiums or (-) discounts to their common share NAVs as shown
in the accompanying table.
11/30/09 SIX-MONTH AVERAGE
FUND (+)PREMIUM/(-)DISCOUNT (+)PREMIUM/(-)DISCOUNT
-------------------------------------------------------------------
NMY -3.95% -1.85%
NFM -4.18% -0.18%
NZR -5.91% -2.06%
NWI -4.46% -5.04%
NPV +1.18% +4.06%
NGB +6.97% +5.76%
NNB +4.90% +3.03%
-------------------------------------------------------------------
8 Nuveen Investments
NMY | Nuveen Maryland
Performance | Premium Income
OVERVIEW | Municipal Fund
| as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 43%
AA 19%
A 19%
BBB 14%
BB or Lower 2%
N/R 3%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Dec $ 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.056
Apr 0.056
May 0.058
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.062
Oct 0.062
Nov 0.062
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 9.75
9.3
8.55
9.1
9.49
10
11.04
11.541
10.9
11.36
11.55
11.7
10.68
11.14
10.976
11.3
11.5
11.5
11.85
12.1
12.2
12.25
12.55
12.48
12.98
12.48
12.68
12.56
12.7624
12.93
13.01
13.4
13.39
13.51
13.52
13.51
13.688
13.72
14.1
14.25
14.4
14.55
14.58
14.58
14.78
14.5599
13.83
13.81
13.67
13.74
13.59
13.59
13.7
11/30/09 13.85
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0268 per share.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.85
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.42
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -3.95%
--------------------------------------------------------------------------------
Market Yield 5.37%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.85%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $153,463
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.40
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.95
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 12.10% 8.92%
--------------------------------------------------------------------------------
1-Year 55.49% 26.04%
--------------------------------------------------------------------------------
5-Year 2.30% 4.66%
--------------------------------------------------------------------------------
10-Year 6.29% 6.60%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 20.6%
--------------------------------------------------------------------------------
Health Care 15.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.2%
--------------------------------------------------------------------------------
Housing/Multifamily 8.1%
--------------------------------------------------------------------------------
Housing/Single Family 7.8%
--------------------------------------------------------------------------------
Other 14.0%
--------------------------------------------------------------------------------
Nuveen Investments 9
NFM | Nuveen Maryland
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
| as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.52
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.11
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.18%
--------------------------------------------------------------------------------
Market Yield 5.59%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.17%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $59,164
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.62
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.49
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/23/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 6.46% 11.40%
--------------------------------------------------------------------------------
1-Year 43.85% 31.19%
--------------------------------------------------------------------------------
5-Year 3.23% 4.53%
--------------------------------------------------------------------------------
Since
Inception 4.32% 5.58%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 22.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 13.7%
--------------------------------------------------------------------------------
Tax Obligation/General 12.7%
--------------------------------------------------------------------------------
Housing/Multifamily 11.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 8.3%
--------------------------------------------------------------------------------
Housing/Single Family 6.6%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 40%
AA 16%
A 16%
BBB 18%
BB or Lower 1%
N/R 9%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Dec $ 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0585
Apr 0.0585
May 0.06
Jun 0.06
Jul 0.06
Aug 0.06
Sep 0.063
Oct 0.063
Nov 0.063
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 11.98
10
8.73
9.02
9.08
9.6
10.99
11.29
11.6
12.3
11.9
12.27
12.53
12.26
10.7101
11.3
11.64
12.17
11.95
12.12
12.335
12.044
12.5912
12.25
12.42
12.66
13.05
13.3
12.85
12.85
12.551
12.9799
13.3
12.91
13.4162
13.2
13.79
13.7
14
14.15
13.8899
14.55
13.7815
14.15
14.316
14.3
13.8
13.63
13.4865
13.83
13.6
13.7
13.55
11/30/09 13.5193
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
10 Nuveen Investments
NZR | Nuveen Maryland
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 2
| as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 38%
AA 23%
A 13%
BBB 16%
BB or Lower 2%
N/R 8%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Dec $ 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0585
Apr 0.0585
May 0.06
Jun 0.06
Jul 0.06
Aug 0.06
Sep 0.063
Oct 0.063
Nov 0.063
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 9.95
9.63
8.4699
10.9056
9.75
10.24
11.04
11.75
11.04
12.06
13
12.3
11.5984
11.02
11.0801
11.86
11.926
12.46
11.95
12.68
12.3
12.074
12.46
12.49
12.37
12.6587
12.6935
12.82
13.08
12.83
12.76
12.84
13.5
12.74
13.0405
13.0995
13.27
13.2
13.41
13.25
13.59
13.92
14
14.18
14.27
14.78
14.06
13.61
13.31
13.7
13.53
13.58
13.331
11/30/09 13.37
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0348 per share.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.37
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.21
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.91%
--------------------------------------------------------------------------------
Market Yield 5.65%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 8.26%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $59,638
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.48
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.85
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 8.28% 10.97%
--------------------------------------------------------------------------------
1-Year 43.97% 29.59%
--------------------------------------------------------------------------------
5-Year 3.10% 4.34%
--------------------------------------------------------------------------------
Since
Inception 4.19% 5.56%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 18.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.3%
--------------------------------------------------------------------------------
Tax Obligation/General 14.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 11.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.8%
--------------------------------------------------------------------------------
Housing/Single Family 7.1%
--------------------------------------------------------------------------------
Housing/Multifamily 6.3%
--------------------------------------------------------------------------------
Transportation 3.9%
--------------------------------------------------------------------------------
Other 11.8%
--------------------------------------------------------------------------------
Nuveen Investments 11
NWI | Nuveen Maryland
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 3
| as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.70
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.34
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.46%
--------------------------------------------------------------------------------
Market Yield 5.43%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.94%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $76,940
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.09
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.31
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 12.05% 10.63%
--------------------------------------------------------------------------------
1-Year 41.55% 29.68%
--------------------------------------------------------------------------------
5-Year 5.44% 4.80%
--------------------------------------------------------------------------------
Since
Inception 4.01% 5.12%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.1%
--------------------------------------------------------------------------------
Health Care 17.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.3%
--------------------------------------------------------------------------------
Tax Obligation/General 11.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 8.8%
--------------------------------------------------------------------------------
Housing/Single Family 5.2%
--------------------------------------------------------------------------------
Housing/Multifamily 5.2%
--------------------------------------------------------------------------------
Other 14.8%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 36%
AA 26%
A 13%
BBB 18%
BB or Lower 2%
N/R 5%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Dec $ 0.0535
Jan 0.0535
Feb 0.0535
Mar 0.0535
Apr 0.0535
May 0.058
Jun 0.058
Jul 0.058
Aug 0.058
Sep 0.062
Oct 0.062
Nov 0.062
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 9.945
9.0899
8.58
9.045
9.2325
9.88
10.98
11.15
10.75
11.4
11.4
11.6
10.82
11.3261
11.08
11.3505
11.19
11.25
11.52
12.2329
11.95
11.756
12.26
11.92
12.22
12.42
12.56
12.5
12.0466
12.53
12.63
12.7176
12.94
12.9878
13
13.3
12.79
12.8
13
12.936
13.28
13.23
13.59
13.88
14.11
14.12
13.6
13.4
13.12
13.35
13.4313
13.39
13.58
11/30/09 13.7
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 31.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2008 of
$0.0169 per share.
12 Nuveen Investments
NPV | Nuveen Virginia
Performance | Premium Income
OVERVIEW | Municipal Fund
| as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 34%
AA 27%
A 24%
BBB 10%
BB or Lower 1%
N/R 4%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Dec $ 0.054
Jan 0.054
Feb 0.054
Mar 0.0555
Apr 0.0555
May 0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.065
Oct 0.065
Nov 0.065
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 11.7
11.62
10.78
11
11.15
11.58
13.14
12.64
12.51
13.15
13.814
13.75
13.09
13.4
12.83
13.47
13.25
13.82
13.39
13.6
13.57
13.7589
14.08
14.47
14.3
14.2111
14.3599
14.28
13.64
13.79
14
14.47
14
14.12
14.568
14.5
14.48
14.45
14.47
14.4
14.39
14.93
15.1
15.14
15.7
15.14
15.25
15.35
15.98
15.58
14.9
15.07
14.54
11/30/09 14.61
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0479 per share.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $14.61
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.44
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 1.18%
--------------------------------------------------------------------------------
Market Yield 5.34%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.86%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $129,469
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.98
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.90
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 4.44% 7.76%
--------------------------------------------------------------------------------
1-Year 34.51% 25.14%
--------------------------------------------------------------------------------
5-Year 1.64% 4.19%
--------------------------------------------------------------------------------
10-Year 5.89% 6.39%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 19.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.6%
--------------------------------------------------------------------------------
Tax Obligation/General 13.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.7%
--------------------------------------------------------------------------------
Transportation 7.1%
--------------------------------------------------------------------------------
Water and Sewer 5.8%
--------------------------------------------------------------------------------
Housing/Single Family 5.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 4.9%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
Nuveen Investments 13
NGB | Nuveen Virginia
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
| as of November 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $14.89
--------------------------------------------------------------------------------
Common Share
Net Asset Value $13.92
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 6.97%
--------------------------------------------------------------------------------
Market Yield 5.16%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.60%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $43,695
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.21
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.18
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 1/26/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 9.26% 9.75%
--------------------------------------------------------------------------------
1-Year 33.43% 28.73%
--------------------------------------------------------------------------------
5-Year 2.22% 4.13%
--------------------------------------------------------------------------------
Since
Inception 5.39% 5.53%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 18.9%
--------------------------------------------------------------------------------
Transportation 17.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 13.7%
--------------------------------------------------------------------------------
Health Care 13.6%
--------------------------------------------------------------------------------
Tax Obligation/General 8.1%
--------------------------------------------------------------------------------
Long-Term Care 7.8%
--------------------------------------------------------------------------------
Housing/Single Family 6.8%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 39%
AA 19%
A 16%
BBB 14%
N/R 12%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Dec $ 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
May 0.062
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.064
Oct 0.064
Nov 0.064
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 11.47
10.76
9.1
10.219
10.69
10.56
12.19
11.74
11.78
12.45
12.9
13.55
12.36
12.5899
12.6
13.21
14.03
12.94
13.4
13.51
13.09
13.4753
13.67
14.28
13.83
13.8001
14
13.9
13.6
13.15
14.4
14.16
14.1899
13.48
14.7
14.73
14.23
14.08
14
14.18
14
14.25
14.71
14.65
15.37
14.6192
14.42
14.3
14.95
14.4
14.4
14.75
14.25
11/30/09 14.885
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2008 of
$0.0133 per share.
14 Nuveen Investments
NNB | Nuveen Virginia
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 2
| as of November 30, 2009
CREDIT QUALITY (as a % of total investments)
[PIE CHART]
AAA/U.S.
Guaranteed 36%
AA 23%
A 18%
BBB 13%
N/R 10%
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(2)
[BAR CHART]
Dec $ 0.0595
Jan 0.0595
Feb 0.0595
Mar 0.0595
Apr 0.0595
May 0.062
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.066
Oct 0.066
Nov 0.066
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
12/01/08 $ 12.27
10.7501
9.4
10.2
10.16
10.984
12.97
12.25
12.598
12.82
13
13.6
13
12.98
12.9688
13.79
13.855
13.8
13.79
13.66
13.99
13.99
13.938
13.98
13.964
14.28
13.98
14.06
13.16
13.0999
13.09
13.39
13.73
13.85
13.8901
13.91
14.03
14.0299
14.12
14.08
14.11
14.37
14.9
14.78
15.28
15.43
14.612
14.86
14.85
14.98
14.77
14.85
14.88
11/30/09 14.98
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.1%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2008 of $0.0097 per share.
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $14.98
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.28
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.90%
--------------------------------------------------------------------------------
Market Yield 5.29%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.79%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $82,046
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.21
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.69
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/15/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) 10.11% 9.87%
--------------------------------------------------------------------------------
1-Year 26.66% 27.42%
--------------------------------------------------------------------------------
5-Year 4.62% 4.27%
--------------------------------------------------------------------------------
Since
Inception 5.64% 5.82%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 18.7%
--------------------------------------------------------------------------------
Tax Obligation/General 15.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 11.8%
--------------------------------------------------------------------------------
Water and Sewer 11.7%
--------------------------------------------------------------------------------
Housing/Single Family 9.5%
--------------------------------------------------------------------------------
Long-Term Care 7.4%
--------------------------------------------------------------------------------
Other 11.8%
--------------------------------------------------------------------------------
Nuveen Investments 15
NMY | Nuveen Maryland Premium Income Municipal Fund
| Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.7% (1.8% OF TOTAL INVESTMENTS)
$ 4,825 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 $ 4,057,052
Revenue Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA
GTY Insured
-----------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.7% (1.2% OF TOTAL INVESTMENTS)
2,685 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 2,556,147
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
-----------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.9% (11.8% OF TOTAL INVESTMENTS)
1,250 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 1,120,225
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+ 986,400
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 N/R 1,037,379
980 5.375%, 7/01/16 - AMBAC Insured 7/11 at 100.00 N/R 1,037,379
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 764,693
500 5.250%, 7/01/30 - FSA Insured 1/11 at 101.00 AAA 507,770
1,250 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 1,228,500
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
1,430 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 1,567,151
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003,
13.207%, 7/01/33 (IF)
1,825 Maryland Health and Higher Educational Facilities Authority, 6/16 at 100.00 Baa1 1,726,505
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 1,463,635
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 A+ 11,016,552
Refunding Bonds, Academic Fees and Auxiliary Facilities, Series
1993, 6.100%, 7/01/20 - NPFG Insured
1,685 University of Maryland, Auxiliary Facility and Tuition Revenue Bonds,
Series 2006A, 5.000%, 10/01/22 10/16 at 100.00 AA+ 1,862,211
Westminster, Maryland, Educational Facilities Revenue Bonds,
McDaniel College, Series 2006:
910 5.000%, 11/01/31 11/16 at 100.00 BBB+ 863,517
850 4.500%, 11/01/36 11/16 at 100.00 BBB+ 705,356
-----------------------------------------------------------------------------------------------------------------------------
24,220 Total Education and Civic Organizations 25,887,273
-----------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.2% (15.5% OF TOTAL INVESTMENTS)
1,525 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A2 1,551,459
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 A3 3,298,003
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 A3 380,172
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 N/R 1,351,913
Revenue Bonds, Civista Medical Center, Series 2005, 5.000%,
7/01/37 - RAAI Insured
1,740 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 1,485,664
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 1,317,316
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+ 1,446,480
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 1/10 at 100.00 A 1,000,420
Revenue Bonds, Johns Hopkins Hospital, Howard County General
Hospital Acquisition, Series 1998, 5.000%, 7/01/19 - NPFG Insured
16 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,000 Maryland Health and Higher Educational Facilities Authority, 12/09 at 101.00 A+ $ 2,022,800
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 3,476,772
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 1,210,838
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 A2 1,804,460
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 3,318,341
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 900,678
670 5.500%, 7/01/42 7/17 at 100.00 BBB 640,688
1,700 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,699,932
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 3,277,398
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 1,013,050
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- 2,349,088
Revenue Bonds, Washington County Hospital, Series 2008, 5.750%,
1/01/38
Prince George's County, Maryland, Revenue Bonds, Dimensions
Health Corporation, Series 1994:
360 5.375%, 7/01/14 1/10 at 100.00 B3 325,588
295 5.300%, 7/01/24 1/10 at 100.00 B3 196,665
-----------------------------------------------------------------------------------------------------------------------------
35,195 Total Health Care 34,067,725
-----------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 11.6% (8.1% OF TOTAL INVESTMENTS)
1,450 Maryland Community Development Administration, FNMA Multifamily 2/11 at 101.00 Aaa 1,484,438
Development Revenue Bonds, Edgewater Village Apartments, Series
2000B, 5.800%, 8/01/20 (Alternative Minimum Tax)
2,500 Maryland Community Development Administration, Housing Revenue Bonds, 1/10 at 100.50 Aa2 2,484,775
Series 1999A, 5.350%, 7/01/41 (Alternative Minimum Tax)
880 Maryland Community Development Administration, Housing Revenue Bonds, 1/10 at 100.00 Aa2 880,686
Series 1999B, 6.250%, 7/01/32 (Alternative Minimum Tax)
1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B2 749,970
Student Housing Revenue Bonds, University of Maryland - Baltimore,
Series 2003A, 5.625%, 10/01/23
1,000 Maryland Economic Development Corporation, Student Housing Revenue 12/09 at 102.00 Baa3 991,450
Bonds, Collegiate Housing Foundation - Salisbury State University,
Series 1999A, 6.000%, 6/01/19
1,145 Maryland Economic Development Corporation, Student Housing Revenue 6/16 at 100.00 Baa2 1,018,867
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, 1/10 at 100.50 Aaa 3,840,110
FNMA/FHA-Insured Multifamily Housing Development Bonds, Series
1998A, 5.200%, 7/01/30
360 Montgomery County Housing Opportunities Commission, Maryland, 1/10 at 100.00 Aa2 360,752
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 2,013,360
Multifamily Housing Development Bonds, Series 2000A, 6.100%, 7/01/30
540 Prince George's County Housing Authority, Maryland, 3/10 at 102.00 AAA 549,434
GNMA 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:
1,770 5.700%, 12/20/15 12/09 at 100.00 AAA 1,773,735
1,670 5.750%, 12/20/19 12/09 at 100.00 AAA 1,672,438
-----------------------------------------------------------------------------------------------------------------------------
18,145 Total Housing/Multifamily 17,820,015
-----------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 17
NMY | Nuveen Maryland Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.2% (7.8% OF TOTAL INVESTMENTS)
$ 2,510 Maryland Community Development Administration Department 9/18 at 100.00 Aa2 $ 2,608,869
of Housing and Community Development, Residential Revenue
Bonds, Series 2008C, 5.375%, 9/01/39
3,000 Maryland Community Development Administration Department 9/18 at 100.00 Aa2 2,954,190
of Housing and Community Development, Residential Revenue
Bonds, Series 2009B, 4.750%, 9/01/39
Maryland Community Development Administration, Department
of Housing and Community Development, Residential Revenue Bonds,
Series 2006:
600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 587,580
1,195 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 1,178,390
4,100 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 4,037,434
1,630 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 1,606,284
Maryland Community Development Administration, Department
of Housing and Community Development, Residential Revenue
Bonds, Series 2007:
650 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 652,698
1,200 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 1,112,688
2,330 Maryland Community Development Administration, Department of 9/14 at 100.00 Aa2 2,181,556
Housing and Community Development, Residential Revenue Bonds,
Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB)
5 Prince George's County Housing Authority, Maryland, 8/10 at 100.00 AAA 5,048
FHLMC/FNMA/GNMA Collateralized Single Family Mortgage Revenue
Bonds, Series 2000A, 6.150%, 8/01/19 (Alternative Minimum Tax)
305 Puerto Rico Housing Finance Authority, Mortgage-Backed 6/13 at 100.00 AAA 288,930
Securities Program Home Mortgage Revenue Bonds, Series 2003A,
4.875%, 6/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------
17,525 Total Housing/Single Family 17,213,667
------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
2,010 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 1,976,292
Disposal Revenue Bonds, Waste Management Inc., Series 2002,
4.600%, 4/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.6% (1.8% OF TOTAL INVESTMENTS)
2,455 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 2,238,052
Series 2007A, 5.000%, 1/01/37
1,000 Carroll County, Maryland, Revenue Refunding Bonds, 1/10 at 100.50 BB- 886,010
EMA Obligated 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- 928,222
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
------------------------------------------------------------------------------------------------------------------------------
4,520 Total Long-Term Care 4,052,284
------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 29.4% (20.6% OF TOTAL INVESTMENTS)
2,030 Anne Arundel County, Maryland, General Obligation Bonds, 4/14 at 100.00 AAA 2,284,826
Series 2004, 5.000%, 4/01/16
1,000 Anne Arundel County, Maryland, General Obligation Bonds, 3/16 at 100.00 AAA 1,111,640
Series 2006, 5.000%, 3/01/21
685 Anne Arundel County, Maryland, Water and Sewer Revenue Bonds, 3/16 at 100.00 AAA 795,538
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 2,583,250
3,500 5.000%, 6/01/26 6/11 at 101.00 AAA 3,612,280
1,540 Baltimore, Maryland, General Obligation Consolidated Public 10/14 at 100.00 AA- 1,644,643
Improvement Bonds, Series 2004A, 5.000%, 10/15/22 - AMBAC Insured
700 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA+ 815,689
Bonds, 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 2,527,215
820 5.000%, 3/01/16 No Opt. Call AA 963,467
Howard County, Maryland, Consolidated Public Improvement
Bonds, Series 2004B:
1,625 5.000%, 8/15/17 2/14 at 100.00 AAA 1,846,894
1,180 5.000%, 8/15/19 2/14 at 100.00 AAA 1,287,085
18 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,725 Howard County, Maryland, Metropolitan District Refunding Bonds, 2/12 at 100.00 AAA $ 1,825,619
Series 2002A, 5.250%, 8/15/18
1,190 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,342,939
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 3,531,540
Public Improvement Bonds, Series 2005A, 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 1,911,928
2,000 5.250%, 10/01/18 10/11 at 101.00 AAA 2,115,960
2,000 Prince George's County, Maryland, General Obligation Consolidated 9/12 at 101.00 AAA 2,085,260
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 6,263,507
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 2,347,380
1,235 5.000%, 6/01/23 6/15 at 100.00 AAA 1,449,507
1,235 5.000%, 6/01/24 6/15 at 100.00 AAA 1,449,507
1,235 5.000%, 6/01/25 6/15 at 100.00 AAA 1,449,507
-------------------------------------------------------------------------------------------------------------------------------
40,905 Total Tax Obligation/General 45,245,181
-------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.7% (10.2% OF TOTAL INVESTMENTS)
300 Baltimore, Maryland, Special Obligation Bonds, North Locust 9/15 at 101.00 N/R 263,955
Point Project, Series 2005, 5.500%, 9/01/34
340 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R 312,552
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 725,994
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+ 886,821
925 5.500%, 10/15/20 (Alternative Minimum Tax) 10/10 at 101.00 AA+ 940,253
4,250 Maryland Department of Transportation, Consolidated Transportation No Opt. Call AAA 5,093,624
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,875 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 2,043,900
Department of Transportation Headquarters Building, Series 2002,
5.375%, 6/01/19
1,700 Maryland Stadium Authority, Lease Revenue Bonds, Montgomery County 6/13 at 100.00 AA+ 1,829,404
Conference Center Facilities, Series 2003, 5.000%, 6/15/24
1,000 Montgomery County, Maryland, Lease Revenue Bonds, Metrorail Garage, 6/12 at 100.00 AA 1,076,180
Series 2002, 5.000%, 6/01/21
675 Montgomery County, Maryland, Special Obligation Bonds, West 7/12 at 101.00 A3 637,200
Germantown Development District, Senior Series 2002A, 5.500%,
7/01/27 - RAAI Insured
635 New Baltimore City Board of School Commissioners, Maryland, School 11/10 at 100.00 AA+ 661,016
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 Baa3 983,470
2,500 5.250%, 7/01/31 - AMBAC Insured No Opt. Call BBB 2,379,025
1,000 5.250%, 7/01/33 - NPFG Insured No Opt. Call A 929,740
2,100 Puerto Rico Municipal Finance Agency, Series 2002A, 5.250%, 8/12 at 100.00 AAA 2,152,080
8/01/21 - FSA Insured
1,500 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 1,581,030
Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured
-------------------------------------------------------------------------------------------------------------------------------
21,575 Total Tax Obligation/Limited 22,496,244
-------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 19
NMY | Nuveen Maryland Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.6% (3.2% OF TOTAL INVESTMENTS)
$ 1,060 Baltimore, Maryland, Revenue Refunding Bonds, Parking System No Opt. Call A $ 1,170,728
Facilities, Series 1998A, 5.250%, 7/01/17 - FGIC Insured
4,335 Maryland Transportation Authority, Revenue Bonds, Transportation 7/17 at 100.00 AAA 4,617,555
Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB)
2,075 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 12/09 at 100.00 CCC+ 1,316,380
American Airlines Inc., Series 1996A, 6.250%, 6/01/26
(Alternative Minimum Tax)
-------------------------------------------------------------------------------------------------------------------------------
7,470 Total Transportation 7,104,663
-------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.2% (12.0% OF TOTAL INVESTMENTS) (4)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA(4) 2,272,040
Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM)
2,000 Baltimore, Maryland, Revenue Refunding Bonds, Water System Projects, No Opt. Call AA(4) 2,359,220
Series 1994A, 5.000%, 7/01/24 - FGIC Insured (ETM)
1,245 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AA(4) 1,465,552
Series 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) 204,734
200 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB-(4) 204,760
275 Frederick County, Maryland, Lake Linganore Village Community 7/10 at 102.00 N/R(4) 289,220
Development Special Obligation Bonds, Series 2001A, 5.700%, 7/01/29
(Pre-refunded 7/01/10) - RAAI Insured
1,440 Gaithersburg, Maryland, Hospital Facilities Revenue Refunding No Opt. Call AAA 1,579,651
and 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 632,897
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:
840 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R(4) 929,158
625 7.625%, 4/01/21 (Pre-refunded 4/01/11) 4/11 at 102.00 N/R(4) 691,338
3,200 Maryland Health and Higher Educational Facilities Authority, No Opt. Call N/R(4) 3,673,152
Revenue Bonds, Helix Health, Series 1997, 5.000%, 7/01/27 - AMBAC
Insured (ETM)
3,125 Maryland Health and Higher Educational Facilities Authority, Revenue 1/10 at 100.00 Aaa 3,213,781
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) 2,358,199
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) 1,694,070
Revenue Bonds, University of Maryland Medical System, Series 2002,
6.000%, 7/01/22 (Pre-refunded 7/01/12)
175 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 207,379
Transportation Facilities Projects, First Series 1978, 6.800%,
7/01/16 (ETM)
1,000 Puerto Rico Infrastructure Financing Authority, 10/10 at 101.00 AAA 1,054,020
Special Obligation Bonds, Series 2000A, 5.500%, 10/01/20
(Pre-refunded 10/01/10)
1,000 Puerto Rico, Highway Revenue Bonds, Highway and Transportation 7/16 at 100.00 Aaa 1,213,230
Authority, Series 1996Y, 5.500%, 7/01/36 (Pre-refunded 7/01/16)
235 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 242,473
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) 2,123,840
Loan Note, Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10)
-------------------------------------------------------------------------------------------------------------------------------
23,675 Total U.S. Guaranteed 26,408,714
-------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.9% (2.7% OF TOTAL INVESTMENTS)
2,500 Maryland Energy Financing Administration, Revenue Bonds, 2/10 at 100.00 N/R 2,500,550
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
3,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/14 at 100.00 A 3,524,080
Series 2004PP, 5.000%, 7/01/22 - FGIC Insured
-------------------------------------------------------------------------------------------------------------------------------
6,000 Total Utilities 6,024,630
-------------------------------------------------------------------------------------------------------------------------------
20 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 3.4% (2.4% OF TOTAL INVESTMENTS)
$ 1,045 Baltimore, Maryland, Revenue Refunding Bonds, Water System Projects, No Opt. Call AA $ 1,173,159
Series 1994A, 5.000%, 7/01/24 - FGIC Insured
1,655 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AA 1,740,646
Series 2006C, 5.000%, 7/01/31 - AMBAC Insured
1,260 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AA 1,289,484
Series 2007D, 5.000%, 7/01/32 - AMBAC Insured
860 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 1,013,906
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------
4,820 Total Water and Sewer 5,217,195
------------------------------------------------------------------------------------------------------------------------------
$ 213,570 Total Investments (cost $214,553,846) - 143.4% 220,127,082
============------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.5)% (9,962,000)
---------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 9.3% 14,172,946
---------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (46.2)% (5) (70,875,000)
---------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $153,463,028
===============================================================================================================
(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.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 32.2%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 21
NFM | Nuveen Maryland Dividend Advantage Municipal Fund
| Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 4.1% (2.8% OF TOTAL INVESTMENTS)
$ 2,115 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 1,778,377
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 247,851
Revenue Bonds, Series 2006B, 5.875%, 9/01/39
650 Maryland Economic Development Corporation, Revenue Bonds, 12/16 at 100.00 N/R 392,022
Chesapeake Bay Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31
-----------------------------------------------------------------------------------------------------------------------------
3,075 Total Consumer Discretionary 2,418,250
-----------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
1,340 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset- 5/12 at 100.00 BBB 1,275,693
Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
-----------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.1% (8.3% OF TOTAL INVESTMENTS)
645 Hartford County, Maryland, Economic Development Revenue Bonds, 4/14 at 100.00 A+ 636,228
Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
980 Maryland Economic Development Corporation, Utility Infrastructure 7/11 at 100.00 N/R 1,000,257
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, 7/10 at 100.00 BBB- 1,450,620
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- 491,400
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
585 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 641,107
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003,
13.207%, 7/01/33 (IF)
565 Maryland Health and Higher Educational Facilities Authority, 6/17 at 100.00 Baa1 514,127
Revenue Bonds, Maryland Institute College of Art, Series 2007,
5.000%, 6/01/36
475 Maryland Industrial Development Financing Authority, Revenue Bonds, 5/15 at 100.00 N/R 417,392
Our Lady of Good Counsel High School, Series 2005A, 6.000%, 5/01/35
615 Montgomery County Revenue Authority, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 655,160
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 2/10 at 100.50 BBB- 211,248
410 5.375%, 2/01/29 2/10 at 100.50 BBB- 372,760
900 Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel 11/16 at 100.00 BBB+ 746,847
College, Series 2006, 4.500%, 11/01/36
-----------------------------------------------------------------------------------------------------------------------------
7,390 Total Education and Civic Organizations 7,137,146
-----------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 32.7% (22.4% OF TOTAL INVESTMENTS)
1,325 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A 1,288,854
Revenue Bonds, University of Maryland Medical System, Series 2006,
5.000%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities Authority, 1/10 at 100.50 AAA 1,001,870
Revenue Bonds, Anne Arundel Medical Center, Series 1998, 5.125%,
7/01/28 - FSA Insured
1,000 Maryland Health and Higher Educational Facilities Authority, 1/10 at 101.00 A2 1,001,100
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 A3 1,029,050
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 A3 380,172
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 N/R 608,970
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 606,219
Revenue Bonds, Doctors Community Hospital, Series 2007A,
5.000%, 7/01/29
22 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 500 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 Baa1 $ 470,470
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+ 626,808
Revenue Bonds, Greater Baltimore Medical Center, Series 2001,
5.000%, 7/01/34
1,250 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 A+ 1,265,038
Revenue Bonds, Johns Hopkins Hospital, Series 2001, 5.000%,
5/15/21
2,225 Maryland Health and Higher Educational Facilities Authority, 12/09 at 101.00 A+ 2,250,364
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 914,940
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 499,793
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 A2 721,784
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 1,363,427
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 370,080
270 5.500%, 7/01/42 7/17 at 100.00 BBB 258,188
1,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 998,090
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 699,972
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 963,620
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- 961,213
Revenue Bonds, Washington County Hospital, Series 2008,
5.750%, 1/01/38
570 Maryland Health and Higher Educational Facilities Authority, 1/10 at 100.00 A3 570,222
Revenue Refunding Bonds, Union Hospital of Cecil County, Series 1998,
5.100%, 7/01/22
700 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/10 at 100.00 B3 466,662
Health Corporation, Series 1994, 5.300%, 7/01/24
-----------------------------------------------------------------------------------------------------------------------------
19,990 Total Health Care 19,316,906
-----------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 17.0% (11.7% OF TOTAL INVESTMENTS)
2,000 Maryland Community Development Administration, Housing Revenue 1/10 at 100.50 Aa2 2,002,680
Bonds, Series 1998A, 5.625%, 1/01/40 (Alternative Minimum Tax)
1,000 Maryland Community Development Administration, Multifamily 12/11 at 100.00 Aaa 1,003,030
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 210,193
50 5.000%, 10/01/15 10/13 at 100.00 B2 43,066
210 5.625%, 10/01/23 10/13 at 100.00 B2 157,494
1,800 Maryland Economic Development Corporation, Student Housing 7/11 at 101.00 N/R 1,482,768
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 422,674
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, 1/10 at 100.50 Aaa 750,653
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 2,012,199
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 2,005,600
Multifamily Housing Development Bonds, Series 2001A, 5.600%,
7/01/42 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------
10,500 Total Housing/Multifamily 10,090,357
-----------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 23
NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.7% (6.6% OF TOTAL INVESTMENTS)
$ 985 Maryland Community Development Administration Department of 9/18 at 100.00 Aa2 $ 1,023,799
Housing and Community Development, Residential Revenue Bonds,
Series 2008C, 5.375%, 9/01/39
Maryland Community Development Administration, Department of
Housing and Community Development, Residential Revenue Bonds,
Series 2006:
600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 587,580
300 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 295,830
1,200 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 1,181,688
815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 803,142
Maryland Community Development Administration, Department of
Housing and Community Development, Residential Revenue Bonds,
Series 2007:
250 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 251,038
500 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 463,620
970 Maryland Community Development Administration, Department of 9/14 at 100.00 Aa2 908,202
Housing and Community Development, Residential Revenue Bonds,
Series 2005, 4.900%, 9/01/36 (Alternative Minimum Tax) (UB)
200 Maryland Community Development Administration, Residential Revenue 9/10 at 100.00 Aa2 200,332
Bonds, Series 2001B, 5.450%, 9/01/32 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------
5,820 Total Housing/Single Family 5,715,231
-----------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.4% (1.6% OF TOTAL INVESTMENTS)
410 Maryland Economic Development Corporation, Solid Waste Disposal 4/12 at 101.00 BBB 403,124
Revenue Bonds, Waste Management Inc., Series 2002, 4.600%, 4/01/16
(Alternative Minimum Tax)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/10 at 100.00 BBB 1,000,800
Resource Recovery Revenue Bonds, RESCO Retrofit Project,
Series 1998, 4.750%, 1/01/12 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------
1,410 Total Industrials 1,403,924
-----------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.4% (2.3% OF TOTAL INVESTMENTS)
850 Baltimore County, Maryland, Revenue Bonds, Oak Crest Village, 1/17 at 100.00 BBB+ 774,886
Series 2007A, 5.000%, 1/01/37
300 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 269,358
Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31
720 Maryland Health and Higher Educational Facilities Authority, 1/17 at 100.00 N/R 581,364
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- 383,491
Revenue Bonds, Mercy Ridge Retirement Community, Series 2007,
4.750%, 7/01/34
-----------------------------------------------------------------------------------------------------------------------------
2,310 Total Long-Term Care 2,009,099
-----------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.5% (12.7% OF TOTAL INVESTMENTS)
565 Anne Arundel County, Maryland, General Obligation Bonds, 3/16 at 100.00 AAA 628,077
Series 2006, 5.000%, 3/01/21
3,500 Baltimore County, Maryland, Metropolitan District Special 6/11 at 101.00 AAA 3,608,113
Assessment Bonds, 67th Issue, 5.000%, 6/01/27
300 Carroll County, Maryland, Consolidated Public Improvement Bonds, 12/15 at 100.00 AA+ 349,581
Series 2005A, 5.000%, 12/01/16
600 Frederick, Maryland, General Obligation Bonds, 8/15 at 100.00 AA 692,874
Series 2005, 5.000%, 8/01/16 - NPFG Insured
1,360 Howard County, Maryland, Consolidated Public Improvement 2/10 at 100.00 AAA 1,364,855
Bonds, Series 2001A, 4.750%, 2/15/21
1,000 Maryland National Capital Park Planning Commission, 1/14 at 100.00 AAA 1,128,520
Prince 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 1,609,941
Public Improvement Bonds, Series 2006, 5.000%, 5/01/16
740 Ocean City, Maryland, General Obligation Bonds, 3/11 at 101.00 AA- 761,460
Series 2001, 4.875%, 3/01/19 - FGIC Insured
700 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 821,583
George's Counties, Maryland, Sewerage Disposal Bonds, Series
2005, 5.000%, 6/01/16
-----------------------------------------------------------------------------------------------------------------------------
10,125 Total Tax Obligation/General 10,965,004
-----------------------------------------------------------------------------------------------------------------------------
24 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.7% (10.8% OF TOTAL INVESTMENTS)
$ 360 Anne Arundel County, Maryland, Tax Increment Financing Revenue Bonds, No Opt. Call N/R $ 363,895
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 282,331
Center Project, Series 2004, 5.750%, 7/01/34
1,500 Maryland Department of Transportation, Consolidated Transportation No Opt. Call AAA 1,797,750
Revenue Bonds, Series 2002, 5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue Bonds, 6/12 at 100.50 AA+ 1,531,562
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+ 409,657
Montgomery County Town Square Parking Garage, Series 2002A,
5.000%, 9/15/13
740 Prince George's County, Maryland, Lease Revenue Bonds, Upper Marlboro 6/13 at 100.00 AA+ 824,834
Justice Center, Series 2003A, 5.000%, 6/30/14 - NPFG Insured
895 Prince George's County, Maryland, Special Obligation Bonds, National 7/15 at 100.00 N/R 745,267
Harbor Project, Series 2005, 5.200%, 7/01/34
450 Prince George's County, Maryland, Special Tax District Bonds, Victoria 7/13 at 100.00 N/R 343,994
Falls Project, Series 2005, 5.250%, 7/01/35
1,000 Puerto Rico Highway and Transportation Authority, Highway Revenue Bonds, No Opt. Call BBB 951,610
Series 2007N, 5.250%, 7/01/31 - AMBAC Insured
700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 737,814
Authority, Series 2003AA, 5.500%, 7/01/19 - NPFG Insured
1,290 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/10 at 101.00 BBB+ 1,320,870
Loan Note, Series 1999A, 6.375%, 10/01/19
-----------------------------------------------------------------------------------------------------------------------------
9,060 Total Tax Obligation/Limited 9,309,584
-----------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.2% (2.9% OF TOTAL INVESTMENTS)
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 N/R 614,335
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 1,901,346
Facilities Projects, Series 2007, 5.000%, 7/01/30 - FSA Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------
2,435 Total Transportation 2,515,681
-----------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.9% (13.7% OF TOTAL INVESTMENTS) (4)
1,015 Baltimore, Maryland, Revenue Refunding Bonds, Water Projects, No Opt. Call AA(4) 1,153,060
Series 1998A, 5.000%, 7/01/28 - FGIC Insured (ETM)
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) 475,951
500 5.750%, 9/01/25 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB-(4) 511,835
500 Maryland Health and Higher Educational Facilities Authority, 4/11 at 101.00 N/R(4) 546,065
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) 676,248
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) 670,631
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) 2,146,739
Revenue Bonds, University of Maryland Medical System, Series 2001,
5.250%, 7/01/28 (Pre-refunded 7/01/11)
640 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 758,413
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 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 2,424,245
1,700 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,791,834
590 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset- 7/10 at 100.00 AAA 608,762
Backed Bonds, Series 2000, 5.750%, 7/01/20 (Pre-refunded 7/01/10)
-----------------------------------------------------------------------------------------------------------------------------
10,920 Total U.S. Guaranteed 11,763,783
-----------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 25
NFM | Nuveen Maryland Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 1,000 Maryland Energy Financing Administration, Revenue Bonds, AES 2/10 at 100.00 N/R $ 1,000,220
Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.1% (1.5% OF TOTAL INVESTMENTS)
285 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AA 299,749
Series 2006C, 5.000%, 7/01/31 - AMBAC Insured
540 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AA 552,636
Series 2007D, 5.000%, 7/01/32 - AMBAC Insured
355 Maryland Water Quality Financing Administration, Revolving No Opt. Call AAA 418,532
Loan Fund Revenue Bonds, Series 2005A, 5.000%, 9/01/15
------------------------------------------------------------------------------------------------------------------------------
1,180 Total Water and Sewer 1,270,917
------------------------------------------------------------------------------------------------------------------------------
$ 86,555 Total Investments (cost $86,214,950) - 145.7% 86,191,795
============------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.7)% (3,973,000)
---------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.6% 2,770,214
---------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (43.6)% (5) (25,825,000)
---------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 59,164,009
===============================================================================================================
(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.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.0%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
26 Nuveen Investments
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2
| Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 4.3% (3.0% OF TOTAL INVESTMENTS)
$ 2,320 Baltimore, Maryland, Senior Lien Convention Center 9/16 at 100.00 Baa3 $ 1,950,749
Hotel Revenue Bonds, Series 2006A, 5.250%,
9/01/39 - SYNCORA GTY Insured
310 Baltimore, Maryland, Subordinate Lien Convention Center 9/16 at 100.00 Ba1 247,851
Hotel Revenue Bonds, Series 2006B, 5.875%, 9/01/39
650 Maryland Economic Development Corporation, Revenue 12/16 at 100.00 N/R 392,022
Bonds, Chesapeake Bay Hyatt Conference Center,
Series 2006A, 5.000%, 12/01/31
----------------------------------------------------------------------------------------------------------------------------------
3,280 Total Consumer Discretionary 2,590,622
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
675 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 642,607
Asset-Backed Refunding Bonds, Series 2002, 5.375%,
5/15/33
800 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa3 650,240
Tobacco Settlement Asset-Backed Bonds, Series 2001,
5.000%, 5/15/31
----------------------------------------------------------------------------------------------------------------------------------
1,475 Total Consumer Staples 1,292,847
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.9% (10.8% OF TOTAL
INVESTMENTS)
1,100 Anne Arundel County, Maryland, Economic Development Revenue 9/12 at 102.00 A3 1,129,524
Bonds, Community College Project, Series 2002, 5.125%,
9/01/22
500 Frederick County, Maryland, Educational Facilities 9/16 at 100.00 BBB- 448,090
Revenue Bonds, Mount Saint Mary's College,
Series 2006, 5.625%, 9/01/38
645 Hartford County, Maryland, Economic Development Revenue 4/14 at 100.00 A+ 636,228
Bonds, Battelle Memorial Institute, Series 2004,
5.250%, 4/01/34
250 Maryland Health and Higher Educational Facilities 7/10 at 100.00 BBB- 241,770
Authority, Educational Facilities Leasehold
Mortgage Revenue Bonds, McLean School, Series
2001, 6.000%, 7/01/31
415 Maryland Health and Higher Educational Facilities 1/11 at 101.00 AAA 421,449
Authority, Revenue Bonds, Bullis School, Series
2000, 5.250%, 7/01/30 - FSA Insured
500 Maryland Health and Higher Educational Facilities 7/14 at 100.00 A- 491,400
Authority, Revenue Bonds, Goucher College,
Series 2004, 5.125%, 7/01/34
585 Maryland Health and Higher Educational Facilities 7/14 at 100.00 AA 641,107
Authority, Revenue Bonds, Johns Hopkins Hospital,
Series 2004, Inverse 1003, 13.207%, 7/01/33 (IF)
750 Maryland Health and Higher Educational Facilities 6/16 at 100.00 Baa1 709,523
Authority, Revenue Bonds, Maryland Institute
College of Art, Series 2006, 5.000%, 6/01/30
565 Maryland Health and Higher Educational Facilities 6/17 at 100.00 Baa1 514,127
Authority, Revenue Bonds, Maryland Institute
College of Art, Series 2007, 5.000%, 6/01/36
500 Maryland Industrial Development Financing Authority, 5/15 at 100.00 N/R 439,360
Revenue Bonds, Our Lady of Good Counsel High School,
Series 2005A, 6.000%, 5/01/35
590 Montgomery County Revenue Authority, Maryland, Lease 5/15 at 100.00 A1 636,864
Revenue 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 A+ 509,615
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 A+ 527,405
Revenue Bonds, Academic Fees and Auxiliary Facilities,
Series 2003A, 5.000%, 7/01/20 - FGIC Insured
1,140 University of Maryland, Auxiliary Facility and Tuition 4/11 at 100.00 AA+ 1,202,290
Revenue Bonds, Series 2001B, 4.500%, 4/01/19
650 University of Maryland, Auxiliary Facility and Tuition 10/16 at 100.00 AA+ 718,361
Revenue Bonds, Series 2006A, 5.000%, 10/01/22
200 Westminster, Maryland, Educational Facilities Revenue 11/16 at 100.00 BBB+ 189,784
Bonds, McDaniel College, Series 2006, 5.000%,
11/01/31
----------------------------------------------------------------------------------------------------------------------------------
9,390 Total Education and Civic Organizations 9,456,897
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.7% (18.3% OF TOTAL INVESTMENTS)
1,000 Maryland Health and Higher Educational Facilities Authority, 1/10 at 100.50 AAA 995,210
Revenue Bonds, Anne Arundel Medical Center, Series 1998,
5.125%, 7/01/33 - FSA Insured
Nuveen Investments 27
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 775 Maryland Health and Higher Educational Facilities 7/14 at 100.00 A2 $ 788,446
Authority, Revenue Bonds, Calvert Memorial Hospital,
Series 2004, 5.500%, 7/01/36
1,000 Maryland Health and Higher Educational Facilities 7/12 at 100.00 A3 1,029,050
Authority, Revenue Bonds, Carroll County General
Hospital, Series 2002, 6.000%, 7/01/26
750 Maryland Health and Higher Educational Facilities 7/14 at 100.00 N/R 608,970
Authority, Revenue Bonds, Civista Medical Center,
Series 2005, 5.000%, 7/01/37 - RAAI Insured
715 Maryland Health and Higher Educational Facilities 7/17 at 100.00 Baa3 610,488
Authority, Revenue Bonds, Doctors Community
Hospital, Series 2007A, 5.000%, 7/01/29
500 Maryland Health and Higher Educational Facilities 7/12 at 100.00 Baa1 470,470
Authority, Revenue Bonds, Frederick Memorial
Hospital, Series 2002, 5.125%, 7/01/35
650 Maryland Health and Higher Educational Facilities 7/11 at 100.00 A+ 626,808
Authority, Revenue Bonds, Greater Baltimore
Medical Center, Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities 7/13 at 100.00 Baa3 914,940
Authority, Revenue Bonds, Kennedy Krieger Institute,
Series 2003, 5.500%, 7/01/33
480 Maryland Health and Higher Educational Facilities 7/17 at 100.00 AAA 494,640
Authority, Revenue Bonds, LifeBridge Health System,
Series 2008, 5.000%, 7/01/28 - AGC Insured
700 Maryland Health and Higher Educational Facilities 8/14 at 100.00 A2 721,784
Authority, Revenue Bonds, MedStar Health, Series
2004, 5.375%, 8/15/24
1,360 Maryland Health and Higher Educational Facilities 5/16 at 100.00 AAA 1,363,427
Authority, 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 370,080
280 5.500%, 7/01/42 7/17 at 100.00 BBB 267,750
1,500 Maryland Health and Higher Educational Facilities 7/11 at 100.00 BBB 1,497,135
Authority, Revenue Bonds, Mercy Medical Center,
Series 2001, 5.625%, 7/01/31
700 Maryland Health and Higher Educational Facilities 7/16 at 100.00 A 699,972
Authority, Revenue Bonds, Peninsula Regional Medical
Center, Series 2006, 5.000%, 7/01/36
1,500 Maryland Health and Higher Educational Facilities 7/15 at 100.00 A3 1,432,170
Authority, Revenue Bonds, Union Hospital of Cecil
County, Series 2005, 5.000%, 7/01/40
980 Maryland Health and Higher Educational Facilities 1/18 at 100.00 BBB- 961,213
Authority, Revenue Bonds, Washington County
Hospital, Series 2008, 5.750%, 1/01/38
1,610 Montgomery County, Maryland, Economic Development 12/11 at 100.00 AA 1,629,980
Revenue Bonds, Trinity Healthcare Group, Series
2001, 5.125%, 12/01/22
700 Prince George's County, Maryland, Revenue Bonds, 1/10 at 100.00 B3 466,662
Dimensions Health Corporation, Series 1994,
5.300%, 7/01/24
----------------------------------------------------------------------------------------------------------------------------------
16,615 Total Health Care 15,949,195
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.2% (6.3% OF TOTAL INVESTMENTS)
10 Maryland Community Development Administration, Insured 5/11 at 100.00 N/R 10,052
Multifamily Housing Mortgage Loan Revenue Bonds,
Series 2001A, 5.100%, 5/15/28
3,145 Maryland Community Development Administration, 12/11 at 100.00 Aaa 3,154,529
Multifamily Development Revenue Bonds, Waters
Towers Senior Apartments, Series 2001F, 5.450%,
12/15/33 (Alternative Minimum Tax)
1,110 Maryland Community Development Administration, 12/11 at 100.00 Aaa 1,113,363
Multifamily Housing Revenue Bonds, Princess Anne
Apartments, Series 2001D, 5.450%, 12/15/33
(Alternative Minimum Tax)
1,000 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B2 749,970
Student Housing Revenue Bonds, University of
Maryland - Baltimore, Series 2003A, 5.625%, 10/01/23
520 Maryland Economic Development Corporation, Student 6/16 at 100.00 Baa2 462,717
Housing Revenue Refunding Bonds, University of
Maryland College Park Projects, Series 2006,
5.000%, 6/01/33 - CIFG Insured
----------------------------------------------------------------------------------------------------------------------------------
5,785 Total Housing/Multifamily 5,490,631
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.4% (7.1% OF TOTAL INVESTMENTS)
1,030 Maryland Community Development Administration 9/18 at 100.00 Aa2 1,070,572
Department of Housing and Community Development,
Residential Revenue Bonds, Series 2008C, 5.375%,
9/01/39
28 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
Maryland Community Development Administration, Department
of Housing and Community Development, Residential Revenue
Bonds, Series 2006:
$ 600 4.750%, 9/01/25 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 $ 587,580
300 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 295,830
1,000 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 984,740
815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 803,142
Maryland Community Development Administration, Department
of Housing and Community Development, Residential Revenue
Bonds, Series 2007:
250 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 251,038
500 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 463,620
970 Maryland Community Development Administration, Department 9/14 at 100.00 Aa2 908,202
of Housing and Community Development, Residential
Revenue Bonds, Series 2005, 4.900%, 9/01/36
(Alternative Minimum Tax) (UB)
810 Maryland Community Development Administration, 9/10 at 100.00 Aa2 810,753
Residential Revenue Bonds, Series 2001H, 5.350%, 9/01/32
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
6,275 Total Housing/Single Family 6,175,477
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.6% (1.8% OF TOTAL INVESTMENTS)
410 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 403,124
Disposal Revenue Bonds, Waste Management Inc.,
Series 2002, 4.600%, 4/01/16 (Alternative Minimum Tax)
1,150 Northeast Maryland Waste Disposal Authority, Baltimore, 1/10 at 100.00 BBB 1,150,920
Resource Recovery Revenue Bonds, RESCO Retrofit
Project, Series 1998, 4.750%, 1/01/12 (Alternative
Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
1,560 Total Industrials 1,554,044
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.5% (2.3% OF TOTAL INVESTMENTS)
860 Baltimore County, Maryland, Revenue Bonds, Oak Crest 1/17 at 100.00 BBB+ 784,002
Village, Series 2007A, 5.000%, 1/01/37
300 Maryland Health and Higher Educational Facilities 7/16 at 100.00 N/R 269,358
Authority, Revenue Bonds, Edenwald, Series
2006A, 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 455,530
220 5.250%, 1/01/27 1/17 at 100.00 N/R 177,639
435 Maryland Health and Higher Educational Facilities 7/17 at 100.00 A- 379,133
Authority, Revenue Bonds, Mercy Ridge
Retirement Community, Series 2007, 4.750%, 7/01/34
----------------------------------------------------------------------------------------------------------------------------------
2,315 Total Long-Term Care 2,065,662
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.4% (14.6% OF TOTAL INVESTMENTS)
300 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA+ 349,581
Bonds, 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 1,038,999
1,020 4.600%, 8/01/19 8/11 at 101.00 AA 1,086,953
600 Frederick, Maryland, General Obligation Bonds, Series 2005, 8/15 at 100.00 AA 692,874
5.000%, 8/01/16 - NPFG Insured
510 Frederick, Maryland, General Obligation Refunding and 12/11 at 101.00 AA 544,741
Improvement Bonds, Series 2001,
4.750%, 12/01/19
1,000 Montgomery County, Maryland, Consolidated General No Opt. Call AAA 1,177,180
Obligation Public Improvement Bonds,
Series 2005A, 5.000%, 7/01/15
4,730 Montgomery County, Maryland, Consolidated General 10/11 at 101.00 AAA 5,004,244
Obligation Public Improvement Refunding
Bonds, Series 2001, 5.250%, 10/01/18
770 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 776,329
Bonds, Series 2001, 5.000%, 7/01/24 -
FSA Insured
800 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA 938,952
Prince George's Counties, Maryland,
Sewerage Disposal Bonds, Series 2005, 5.000%, 6/01/16
Nuveen Investments 29
NZR | Nuveen Maryland Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA $ 1,173,690
Prince George's Counties, Maryland,
Water Supply Bonds, Series 2005, 5.000%, 6/01/16
----------------------------------------------------------------------------------------------------------------------------------
11,705 Total Tax Obligation/General 12,783,543
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.5% (11.9% OF TOTAL INVESTMENTS)
355 Anne Arundel County, Maryland, Tax Increment Financing No Opt. Call N/R 358,841
Revenue Bonds, Parole Town Center
Revenue 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+ 593,881
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+ 1,636,659
1,660 5.000%, 8/01/21 8/11 at 101.00 AA+ 1,715,328
110 Frederick County, Maryland, Lake Linganore Village
Community Development Special Obligation 7/10 at 102.00 N/R 101,120
Bonds, Series 2001A, 5.700%, 7/01/29 - RAAI Insured
350 Hyattsville, Maryland, Special Obligation Bonds, University 7/14 at 102.00 N/R 282,331
Town Center Project, Series 2004, 5.750%, 7/01/34
1,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 1,198,500
Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
1,405 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 1,531,562
Bonds, 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 944,000
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 745,267
National Harbor Project, Series 2005, 5.200%, 7/01/34
475 Prince George's County, Maryland, Special Tax District 7/13 at 100.00 N/R 363,104
Bonds, Victoria Falls Project, Series 2005, 5.250%,
7/01/35
1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB 951,610
Revenue Bonds, Series 2007N, 5.250%,
7/01/31 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
10,360 Total Tax Obligation/Limited 10,422,203
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.7% (3.9% 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 N/R 614,335
1,000 5.000%, 7/01/34 - AMBAC Insured 7/11 at 100.00 N/R 878,050
1,780 Maryland Transportation Authority, Revenue Bonds, 7/17 at 100.00 AAA 1,896,020
Transportation Facilities Projects, Series
2007, 5.000%, 7/01/30 - FSA Insured (UB)
----------------------------------------------------------------------------------------------------------------------------------
3,430 Total Transportation 3,388,405
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.3% (15.3% OF TOTAL INVESTMENTS) (4)
1,000 Baltimore County, Maryland, Consolidated General Obligation 8/12 at 100.00 AAA 1,110,280
Public Improvement Bonds, Series
2002, 5.000%, 8/01/18 (Pre-refunded 8/01/12)
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) 102,367
100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 102,380
90 Frederick County, Maryland, Lake Linganore Village 7/10 at 102.00 N/R (4) 94,654
Community Development Special Obligation
Bonds, Series 2001A, 5.700%, 7/01/29 (Pre-refunded
7/01/10) - RAAI Insured
25 Maryland Health and Higher Educational Facilities 4/11 at 101.00 N/R (4) 27,303
Authority, Revenue Bonds, Collington
Episcopal Life Care Community Inc., Series 2001A,
6.750%, 4/01/23 (Pre-refunded 4/01/11)
1,260 Maryland Health and Higher Educational Facilities No Opt. Call N/R (4) 1,432,834
Authority, Revenue Bonds, Helix Health,
Series 1997, 5.000%, 7/01/17 - AMBAC Insured (ETM)
525 Maryland Health and Higher Educational Facilities 7/14 at 100.00 A2 (4) 606,890
Authority, 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 6/11 at 100.00 Baa1 (4) 1,341,263
Authority, Revenue Bonds, Maryland Institute
College of Art, Series 2001, 5.500%, 6/01/32
(Pre-refunded 6/01/11)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT(000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,000 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 A (4) $ 2,146,740
Revenue Bonds, University of Maryland Medical System,
Series 2001, 5.250%, 7/01/28 (Pre-refunded 7/01/11)
900 Maryland Transportation Authority, Revenue Refunding Bonds, No Opt. Call AAA 1,066,518
Transportation Facilities Projects, First Series 1978,
6.800%, 7/01/16 (ETM)
1,000 Prince George's County, Maryland, General Obligation Consolidated 12/11 at 101.00 AAA 1,103,480
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 3,162,060
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
(Pre-refunded 10/01/10)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,033,260
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
----------------------------------------------------------------------------------------------------------------------------------
12,250 Total U.S. Guaranteed 13,330,029
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.2% (2.2% OF TOTAL INVESTMENTS)
1,000 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/01/34 - 4/10 at 101.00 A 923,810
NPFG Insured
1,000 Maryland Energy Financing Administration, Revenue Bonds, AES Warrior 2/10 at 100.00 N/R 1,000,220
Run Project, Series 1995, 7.400%, 9/01/19 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
2,000 Total Utilities 1,924,030
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.4% (1.0% OF TOTAL INVESTMENTS)
285 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AA 299,749
Series 2006C, 5.000%, 7/01/31 - AMBAC Insured
540 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/17 at 100.00 AA 552,637
Series 2007D, 5.000%, 7/01/32 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
825 Total Water and Sewer 852,386
----------------------------------------------------------------------------------------------------------------------------------
$ 87,265 Total Investments (cost $86,942,589) - 146.3% 87,275,971
=============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.4)% (3,840,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.7% 2,827,340
-------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (44.6)% (5) (26,625,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 59,638,311
===================================================================================================================
(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.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.5%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 31
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3
| Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 3.6% (2.4% OF TOTAL INVESTMENTS)
$ 2,385 Baltimore, Maryland, Senior Lien Convention Center Hotel Revenue 9/16 at 100.00 Baa3 $ 2,005,403
Bonds, Series 2006A, 5.250%, 9/01/39 - SYNCORA GTY Insureds
380 Baltimore, Maryland, Subordinate Lien Convention Center Hotel Revenue 9/16 at 100.00 Ba1 303,818
Bonds, Series 2006B, 5.875%, 9/01/39
700 Maryland Economic Development Corporation, Revenue Bonds, Chesapeake Bay 12/16 at 100.00 N/R 422,177
Hyatt Conference Center, Series 2006A, 5.000%, 12/01/31
---------------------------------------------------------------------------------------------------------------------------------
3,465 Total Consumer Discretionary 2,731,398
---------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.9% (2.0% OF TOTAL INVESTMENTS)
2,340 Puerto Rico, The Children's Trust Fund, Tobacco Settlement Asset-Backed 5/12 at 100.00 BBB 2,227,703
Refunding Bonds, Series 2002, 5.375%, 5/15/33
---------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.8% (8.8% OF TOTAL INVESTMENTS)
225 Anne Arundel County, Maryland, Economic Development Revenue Bonds, 9/12 at 102.00 A3 231,039
Community College Project, Series 2002, 5.125%, 9/01/22
625 Frederick County, Maryland, Educational Facilities Revenue Bonds, 9/16 at 100.00 BBB- 560,113
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+ 680,616
Battelle Memorial Institute, Series 2004, 5.250%, 4/01/34
625 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 A- 614,250
Revenue Bonds, Goucher College, Series 2004, 5.125%, 7/01/34
735 Maryland Health and Higher Educational Facilities Authority, 7/14 at 100.00 AA 805,494
Revenue Bonds, Johns Hopkins Hospital, Series 2004, Inverse 1003,
13.207%, 7/01/33 (IF)
1,000 Maryland Health and Higher Educational Facilities Authority, 7/12 at 100.00 AA 1,011,070
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 875,078
Revenue Bonds, Maryland Institute College of Art, Series 2006,
5.000%, 6/01/30
625 Maryland Industrial Development Financing Authority, 5/15 at 100.00 N/R 549,200
Revenue Bonds, Our Lady of Good Counsel High School, Series 2005A,
6.000%, 5/01/35
710 Montgomery County Revenue Authority, Maryland, Lease Revenue Bonds, 5/15 at 100.00 A1 766,395
Montgomery College Arts Center Project, Series 2005A, 5.000%, 5/01/18
1,000 Morgan State University, Maryland, Student Tuition and Fee Revenue Bonds, 7/13 at 100.00 A+ 1,007,790
Academic Fees and Auxiliary Facilities, Series 2003A, 5.000%,
7/01/32 - FGIC Insured
985 University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, 4/11 at 100.00 AA+ 1,040,465
Series 2001B, 4.625%, 4/01/21
800 University of Maryland, Auxiliary Facility and Tuition Revenue Bonds, 10/16 at 100.00 AA+ 884,136
Series 2006A, 5.000%, 10/01/22
890 Westminster, Maryland, Educational Facilities Revenue Bonds, McDaniel 11/16 at 100.00 BBB+ 844,539
College, Series 2006, 5.000%, 11/01/31
---------------------------------------------------------------------------------------------------------------------------------
9,835 Total Education and Civic Organizations 9,870,185
---------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.2% (17.9% OF TOTAL INVESTMENTS)
700 Maryland Health and Higher Education Facilities Authority, 7/16 at 100.00 A 693,581
Revenue Bonds, University of Maryland Medical System, Series
2006, 5.000%, 7/01/31
1,000 Maryland Health and Higher Educational Facilities Authority, 1/10 at 100.50 AAA 995,210
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 788,446
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 A3 1,268,463
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 A3 1,663,253
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 N/R 706,405
Revenue Bonds, Civista Medical Center, Series 2005, 5.000%,
7/01/37 - RAAI Insured
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 885 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 Baa3 $ 755,640
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 658,658
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+ 771,456
Revenue Bonds, Greater Baltimore
Medical Center, Series 2001, 5.000%, 7/01/34
1,000 Maryland Health and Higher Educational Facilities Authority, 5/11 at 100.00 A+ 1,012,030
Revenue Bonds, Johns Hopkins
Hospital, Series 2001, 5.000%, 5/15/21
1,000 Maryland Health and Higher Educational Facilities Authority, 7/13 at 100.00 Baa3 914,940
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 613,148
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 A2 928,008
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 1,694,259
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 468,174
340 5.500%, 7/01/42 7/17 at 100.00 BBB 325,125
650 Maryland Health and Higher Educational Facilities Authority, 7/11 at 100.00 BBB 648,759
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 849,966
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 1,860,553
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- 1,196,613
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 774,179
Revenue Refunding Bonds, Adventist Healthcare, Series
2003A, 5.750%, 1/01/25
900 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/10 at 100.00 B3 599,994
Health Corporation, Series 1994, 5.300%, 7/01/24
----------------------------------------------------------------------------------------------------------------------------------
21,020 Total Health Care 20,186,860
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.6% (5.2% OF TOTAL INVESTMENTS)
980 Maryland Community Development Administration, Housing 7/12 at 100.00 Aa2 946,984
Revenue Bonds, Series 2002B,
4.950%, 7/01/32 (Alternative Minimum Tax)
1,250 Maryland Economic Development Corporation, Senior Lien 10/13 at 100.00 B2 937,463
Student 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 17,925
150 6.000%, 7/01/33 - ACA Insured 7/11 at 101.00 N/R 123,564
475 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 422,674
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 501,878
3,000 5.200%, 7/01/44 (Alternative Minimum Tax) 7/12 at 100.00 Aaa 2,888,190
----------------------------------------------------------------------------------------------------------------------------------
6,390 Total Housing/Multifamily 5,838,678
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.7% (5.2% OF TOTAL INVESTMENTS)
1,280 Maryland Community Development Administration Department 9/18 at 100.00 Aa2 1,330,419
of Housing and Community Development, Residential Revenue
Bonds, Series 2008C, 5.375%, 9/01/39
Nuveen Investments 33
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) ROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (CONTINUED)
Maryland Community Development Administration,
Department of Housing and Community
Development, Residential Revenue Bonds, Series 2006:
$ 595 4.900%, 9/01/26 (Alternative Minimum Tax) (UB) 9/15 at 100.00 Aa2 $ 586,730
1,200 4.875%, 9/01/26 (Alternative Minimum Tax) (UB) 3/16 at 100.00 Aa2 1,181,688
815 4.900%, 9/01/31 (Alternative Minimum Tax) (UB) 9/16 at 100.00 Aa2 803,142
Maryland Community Development Administration, Department
of Housing and Community Development, Residential Revenue
Bonds, Series 2007:
350 5.000%, 9/01/27 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 351,452
620 4.850%, 9/01/37 (Alternative Minimum Tax) (UB) 3/17 at 100.00 Aa2 574,888
1,160 Maryland Community Development Administration, Department 9/14 at 100.00 Aa2 1,086,096
of Housing and Community Development, Residential
Revenue Bonds, Series 2005, 4.900%, 9/01/36
(Alternative Minimum Tax) (UB)
----------------------------------------------------------------------------------------------------------------------------------
6,020 Total Housing/Single Family 5,914,415
----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 2.0% (1.3% OF TOTAL INVESTMENTS)
510 Maryland Economic Development Corporation, Solid Waste 4/12 at 101.00 BBB 501,447
Disposal Revenue Bonds, Waste
Management Inc., Series 2002, 4.600%, 4/01/16
(Alternative Minimum Tax)
1,000 Northeast Maryland Waste Disposal Authority, Baltimore, 1/10 at 100.00 BBB 1,000,800
Resource Recovery Revenue Bonds, RESCO
Retrofit Project, Series 1998, 4.750%, 1/01/12
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
1,510 Total Industrials 1,502,247
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2% (2.2% OF TOTAL INVESTMENTS)
1,050 Baltimore County, Maryland, Revenue Bonds, Oak Crest 1/17 at 100.00 BBB+ 957,212
Village, Series 2007A, 5.000%, 1/01/37
400 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 N/R 359,144
Revenue Bonds, Edenwald, Series 2006A, 5.400%, 1/01/31
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 255,097
520 5.250%, 1/01/27 1/17 at 100.00 N/R 419,874
540 Maryland Health and Higher Educational Facilities Authority, 7/17 at 100.00 A- 470,648
Revenue Bonds, Mercy Ridge Retirement Community, Series
2007, 4.750%, 7/01/34
----------------------------------------------------------------------------------------------------------------------------------
2,790 Total Long-Term Care 2,461,975
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.2% (11.7% OF TOTAL INVESTMENTS)
1,000 Annapolis, Maryland, General Obligation Public Improvement 4/12 at 101.00 AA 1,057,210
Refunding Bonds, Series 2002, 4.375%, 4/01/17
380 Carroll County, Maryland, Consolidated Public Improvement 12/15 at 100.00 AA+ 442,803
Bonds, Series 2005A, 5.000%, 12/01/16
1,260 Charles County, Maryland, Consolidated General Obligation 1/12 at 101.00 AA 1,335,335
Public Improvement Bonds, Series 2002, 4.400%, 1/15/16
710 Frederick, Maryland, General Obligation Bonds, Series 8/15 at 100.00 AA 819,901
2005, 5.000%, 8/01/16 - NPFG Insured
1,000 Maryland National Capital Park Planning Commission, Prince 1/14 at 100.00 AAA 1,128,520
George's County, General Obligation Bonds, Park Acquisition
and Development, Series 2004EE-2, 5.000%, 1/15/17
1,850 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 2,177,783
Public Improvement Bonds, Series 2005A, 5.000%, 7/01/15
1,440 Montgomery County, Maryland, Consolidated General Obligation No Opt. Call AAA 1,704,643
Public Improvement Bonds, Series 2006, 5.000%, 5/01/16
1,000 Prince George's County, Maryland, General Obligation No Opt. Call AAA 1,088,350
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 1,118,130
Series 2002, 5.000%, 10/01/12
1,000 Washington Suburban Sanitary District, Montgomery and Prince 6/15 at 100.00 AAA 1,173,690
George's Counties, Maryland, Sewerage Disposal Bonds,
Series 2005, 5.000%, 6/01/16
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,000 Washington Suburban Sanitary District, Montgomery and 6/15 at 100.00 AAA $ 1,173,690
Prince George's Counties, Maryland,
Water Supply Bonds, Series 2005, 5.000%, 6/01/16
----------------------------------------------------------------------------------------------------------------------------------
11,640 Total Tax Obligation/General 13,220,055
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.9% (21.1% OF TOTAL INVESTMENTS)
1,000 Baltimore Board of School Commissioners, Maryland, Revenue 5/13 at 100.00 AA+ 1,120,530
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 N/R 131,941
Development Special Obligation
Bonds, Series 2001A, 5.600%, 7/01/20 - RAAI Insured
450 Hyattsville, Maryland, Special Obligation Bonds, 7/14 at 102.00 N/R 362,997
University Town Center Project, Series 2004,
5.750%, 7/01/34
5,000 Maryland Department of Transportation, Consolidated No Opt. Call AAA 5,992,496
Transportation Revenue Bonds, Series 2002,
5.500%, 2/01/16
2,200 Maryland Economic Development Corporation, Lease Revenue 6/12 at 100.50 AA+ 2,266,638
Bonds, Department of Transportation
Headquarters Building, Series 2002, 4.750%, 6/01/22
450 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 498,231
Bonds, Montgomery County
Town Square Parking Garage, Series 2002A, 5.000%, 9/15/13
2,935 Maryland Economic Development Corporation, Lease Revenue 9/12 at 100.00 AA+ 3,245,200
Bonds, Montgomery County
Wayne Avenue Parking Project, Series 2002A, 5.250%, 9/15/16
Maryland Stadium Authority, Lease Revenue Bonds,
Montgomery County Conference Center
Facilities, Series 2003:
1,465 5.000%, 6/15/21 6/13 at 100.00 AA+ 1,589,628
1,620 5.000%, 6/15/23 6/13 at 100.00 AA+ 1,745,874
1,210 Prince George's County, Maryland, Special Obligation Bonds, 7/15 at 100.00 N/R 1,007,567
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 439,547
Victoria Falls Project, Series
2005, 5.250%, 7/01/35
1,200 Puerto Rico Highway and Transportation Authority, No Opt. Call BBB 1,141,932
Highway 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- 1,016,490
1,205 5.250%, 7/01/20 7/12 at 100.00 BBB- 1,213,327
1,275 5.250%, 7/01/21 7/12 at 100.00 BBB- 1,280,585
700 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call A 737,814
Authority, Series 2003AA,
5.500%, 7/01/19 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
22,420 Total Tax Obligation/Limited 23,790,797
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.1% (2.1% OF TOTAL INVESTMENTS)
2,210 Maryland Transportation Authority, Revenue Bonds, 7/17 at 100.00 AAA 2,354,048
Transportation Facilities Projects, Series
2007, 5.000%, 7/01/30 - FSA Insured (UB)
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.4% (15.3% OF TOTAL INVESTMENTS) (4)
255 Baltimore, Maryland, Wastewater Project Revenue Bonds, 7/16 at 100.00 AA (4) 300,173
Series 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) 102,367
100 5.800%, 9/01/30 (Pre-refunded 3/01/10) 3/10 at 101.00 BBB- (4) 102,380
110 Frederick County, Maryland, Lake Linganore Village 7/10 at 102.00 N/R (4) 115,624
Community 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 4/11 at 101.00 N/R (4) 305,796
Authority, 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 N/R (4) 324,093
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) 838,086
Revenue Bonds, LifeBridge Health
System, Series 2004A, 5.125%, 7/01/34 (Pre-refunded 7/01/14)
Nuveen Investments 35
NWI | Nuveen Maryland Dividend Advantage Municipal Fund 3 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 770 Maryland Transportation Authority, Revenue No Opt. Call AAA $ 912,465
Refunding Bonds, Transportation Facilities
Projects, First Series 1978, 6.800%, 7/01/16 (ETM)
4,860 Prince George's County Housing Authority, 11/12 at 100.00 AAA 5,349,791
Maryland, GNMA Collateralized Mortgage Revenue
Bonds, Fairview and Hillside Projects,
Series 2002A, 4.700%, 11/20/22 (Pre-refunded 11/20/12)
1,525 Puerto Rico Electric Power Authority, Power Revenue 7/10 at 101.00 AAA 1,583,880
Bonds, Series 2000HH, 5.250%, 7/01/29
(Pre-refunded 7/01/10) - FSA Insured
3,500 Puerto Rico Infrastructure Financing Authority, 10/10 at 101.00 AAA 3,689,070
Special Obligation Bonds, Series 2000A,
5.500%, 10/01/40 (Pre-refunded 10/01/10)
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,149,470
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 258,068
Appropriation Bonds, Series 2002E,
5.500%, 8/01/29 (Pre-refunded 2/01/12)
2,000 University of Maryland, Auxiliary Facility and Tuition 4/12 at 100.00 AA+ (4) 2,205,420
Revenue Bonds, Series 2002A, 5.125%,
4/01/22 (Pre-refunded 4/01/12)
25 Washington Suburban Sanitary District, Montgomery and 6/11 at 101.00 AAA 26,953
Prince George's Counties, Maryland, General Obligation
Construction Bonds, Second
Series 2001, 5.000%, 6/01/17
(Pre-refunded 6/01/11)
----------------------------------------------------------------------------------------------------------------------------------
15,770 Total U.S. Guaranteed 17,263,636
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,250 Maryland Energy Financing Administration, Revenue 2/10 at 100.00 N/R 1,250,275
Bonds, AES Warrior Run Project, Series 1995,
7.400%, 9/01/19 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.3% (3.7% OF TOTAL INVESTMENTS)
2,570 Baltimore, Maryland, Revenue Refunding Bonds, 7/12 at 100.00 AA 2,584,392
Wastewater Projects, Series 2002A, 5.125%,
7/01/42 - FGIC Insured
345 Baltimore, Maryland, Wastewater Project Revenue 7/16 at 100.00 AA 362,854
Bonds, Series 2006C, 5.000%, 7/01/31 -
AMBAC Insured
660 Baltimore, Maryland, Wastewater Project 7/17 at 100.00 AA 675,444
Revenue Bonds, Series 2007D, 5.000%, 7/01/32 -
AMBAC Insured
430 Maryland Water Quality Financing Administration, No Opt. Call AAA 506,953
Revolving Loan Fund Revenue Bonds, Series
2005A, 5.000%, 9/01/15
----------------------------------------------------------------------------------------------------------------------------------
4,005 Total Water and Sewer 4,129,643
----------------------------------------------------------------------------------------------------------------------------------
$ 110,665 Total Investments (cost $111,330,537) - 146.5% 112,741,915
==============--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (5.5)% (4,255,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 3,452,881
-----------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (45.5)% (5) (35,000,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 76,939,796
=================================================================================================================
(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.
(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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 31.0%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
36 Nuveen Investments
NPV | Nuveen Virginia Premium Income Municipal Fund
| Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.5% (2.4% OF TOTAL INVESTMENTS)
$ 6,640 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB $ 4,471,774
Tobacco Settlement Asset Backed Bonds, Series 2007B1,
5.000%, 6/01/47
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.0% (4.9% OF TOTAL INVESTMENTS)
1,000 Prince William County Industrial Development Authority, 10/13 at 101.00 A3 1,002,860
Virginia, Educational Facilities Revenue Bonds,
Catholic Diocese of Arlington, Series 2003,
5.500%, 10/01/33
500 Prince William County Park Authority, Virginia, Park 4/10 at 101.00 A3 505,270
Facilities Revenue Refunding and Improvement Bonds,
Series 1999, 6.000%, 10/15/28
700 Puerto Rico Industrial, Tourist, Educational, Medical 12/12 at 101.00 BBB- 675,115
and Environmental Control Facilities Financing
Authority, Higher Education Revenue Refunding
Bonds, Ana G. Mendez University System, Series 2002,
5.375%, 12/01/21
2,815 The Rector and Visitors of the University of Virginia, 6/15 at 100.00 AAA 2,914,144
General Revenue Bonds, Series 2005, 5.000%, 6/01/37
2,120 Virginia College Building Authority, Educational 9/11 at 100.00 AA+ 2,166,428
Facilities Revenue Bonds, Public Higher Education
Financing Program, Series 2001A, 5.000%, 9/01/26
1,635 Virginia Commonwealth University, Revenue Bonds, Series 5/14 at 101.00 AA- 1,846,553
2004A, 5.000%, 5/01/17 - AMBAC Insured
----------------------------------------------------------------------------------------------------------------------------------
8,770 Total Education and Civic Organizations 9,110,370
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.6% (19.1% OF TOTAL INVESTMENTS)
2,000 Albemarle County Industrial Development Authority, 10/12 at 100.00 A3 1,931,320
Virginia, Hospital Revenue Bonds, Martha Jefferson
Hospital, Series 2002, 5.250%, 10/01/35
650 Charlotte County Industrial Development Authority, 9/17 at 100.00 A- 642,415
Virginia, Hospital Revenue Bonds, Halifax Regional
Hospital Incorporated, Series 2007, 5.000%, 9/01/27
1,705 Fairfax County Industrial Development Authority, 5/19 at 100.00 AA+ 1,903,598
Virginia, Healthcare Revenue Bonds, Inova Health
System, Series 2009, Trust 11733, 14.869%,
5/15/35 (IF)
4,850 Fairfax County Industrial Development Authority, No Opt. Call AA+ 5,205,357
Virginia, Hospital Revenue Refunding Bonds,
Inova Health System, Series 1993A, 5.000%, 8/15/23
1,000 Fredericksburg Economic Development Authority, No Opt. Call A3 1,058,740
Virginia, Hospital Facilities Revenue Bonds,
MediCorp Health System, Series 2007,
5.250%, 6/15/23
1,250 Fredericksburg Industrial Development Authority, 6/12 at 100.00 A3 1,219,100
Virginia, Revenue Bonds, MediCorp Health
System, Series 2002B, 5.125%, 6/15/33
1,000 Hanover County Industrial Development Authority, Virginia, No Opt. Call A 1,113,350
Hospital Revenue Bonds, Memorial Regional Medical
Center, Series 1995, 6.375%, 8/15/18 - NPFG Insured
2,300 Harrisonburg Industrial Development Authority, Virginia, 8/16 at 100.00 Baa1 2,157,883
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- 1,448,914
Revenue Bonds, Bon Secours Health System Inc.,
Series 2002A, 5.600%, 11/15/30
1,500 Henrico County Industrial Development Authority, No Opt. Call A 1,671,405
Virginia, Healthcare Revenue Bonds, Bon Secours
Health System, Series 1996, 6.250%, 8/15/20 - NPFG Insured
1,500 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A3 1,454,760
Hospital Revenue Bonds, Prince William Hospital,
Series 2002, 5.250%, 4/01/33
4,750 Medical College of Virginia Hospital Authority, General 1/10 at 101.00 A+ 4,754,798
Revenue Bonds, Series 1998, 5.125%, 7/01/23 -
NPFG Insured
3,000 Roanoke Industrial Development Authority, Virginia, 7/12 at 100.00 A+ 3,116,880
Hospital Revenue Bonds, Carilion Health System,
Series 2002A, 5.500%, 7/01/19 - NPFG Insured
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 2,034,260
1,010 5.250%, 6/15/31 6/16 at 100.00 A3 1,006,101
1,695 5.250%, 6/15/37 6/16 at 100.00 A3 1,665,880
2,210 Virginia Small Business Financing Authority, Wellmont 9/17 at 100.00 BBB+ 1,861,748
Health System Project Revenue Bonds, Series 2007A,
5.250%, 9/01/37
Nuveen Investments 37
NPV | Nuveen Virginia Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
$ 1,425 Winchester Industrial Development Authority, 1/17 at 100.00 A+ $ 1,454,198
Virginia, Hospital Revenue Bonds, Winchester
Medical Center, Series 2007, 5.125%, 1/01/31
----------------------------------------------------------------------------------------------------------------------------------
35,285 Total Health Care 35,700,707
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3% (2.3% OF TOTAL INVESTMENTS)
1,355 Arlington County Industrial Development Authority, 5/10 at 100.00 Aaa 1,367,439
Virginia, 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 12/09 at 102.00 N/R 500,085
1,500 7.000%, 6/01/30 12/09 at 102.00 N/R 1,419,105
1,000 Lynchburg Redevelopment and Housing Authority, 4/10 at 102.00 AAA 1,022,130
Virginia, Vistas GNMA Mortgage-Backed Revenue
Bonds, Series 2000A, 6.200%, 1/20/40
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
4,355 Total Housing/Multifamily 4,308,759
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.0% (5.5% OF TOTAL INVESTMENTS)
315 Puerto Rico Housing Finance Authority, Mortgage 6/13 at 100.00 AAA 298,403
-Backed Securities Program Home Mortgage
Revenue Bonds, Series 2003A, 4.875%, 6/01/34
(Alternative Minimum Tax)
1,000 Virginia Housing Development Authority, 7/11 at 100.00 AAA 1,009,930
Commonwealth Mortgage Bonds, Series
2001H-1, 5.350%, 7/01/31 - NPFG Insured
1,500 Virginia Housing Development Authority, 1/15 at 100.00 AAA 1,412,205
Commonwealth Mortgage Bonds, Series 2005C-2,
4.750%, 10/01/32 (Alternative Minimum Tax)
2,740 Virginia Housing Development Authority, 7/15 at 100.00 AAA 2,669,664
Commonwealth Mortgage Bonds, Series 2006 D1,
4.900%, 1/01/33 (Alternative Minimum Tax)
1,340 Virginia Housing Development Authority, 7/15 at 100.00 AAA 1,292,122
Commonwealth Mortgage Bonds, Series
2006, 4.800%, 7/01/29 (Alternative Minimum Tax)
3,900 Virginia Housing Development Authority, 7/16 at 100.00 AAA 3,673,137
Commonwealth Mortgage Bonds, Series 2007B,
4.750%, 7/01/32 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
10,795 Total Housing/Single Family 10,355,461
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.5% (3.1% OF TOTAL INVESTMENTS)
2,765 Fairfax County Economic Development Authority, 10/17 at 100.00 N/R 2,456,343
Virginia, Residential Care Facilities Mortgage
Revenue Bonds, Goodwin House, Inc., Series
2007A, 5.125%, 10/01/37
800 Fairfax County Economic Development Authority, 10/16 at 100.00 BBB+ 654,120
Virginia, Retirement Center Revenue Bonds,
Greenspring Village, Series 2006A, 4.875%,
10/01/36
1,495 Henrico County Economic Development Authority, 1/10 at 102.00 AAA 1,520,146
Virginia, GNMA Mortgage-Backed Securities
Program Assisted Living Revenue Bonds, Beth
Sholom, Series 1999A, 5.900%, 7/20/29
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- 88,035
1,345 5.000%, 10/01/35 No Opt. Call BBB- 1,092,517
----------------------------------------------------------------------------------------------------------------------------------
6,505 Total Long-Term Care 5,811,161
----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.7% OF TOTAL INVESTMENTS)
500 Bedford County Industrial Development Authority, 2/10 at 100.00 B2 442,025
Virginia, 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, 12/09 at 100.50 B2 888,880
Virginia, Industrial Development Revenue
Refunding Bonds, Nekoosa Packaging Corporation
Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (4)
----------------------------------------------------------------------------------------------------------------------------------
1,500 Total Materials 1,330,905
----------------------------------------------------------------------------------------------------------------------------------
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 18.8% (13.0% 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+ $ 1,990,657
2,060 5.000%, 6/01/23 6/13 at 100.00 AA+ 2,166,790
1,355 Harrisonburg, Virginia, General Obligation Bonds, 7/12 at 101.00 Aa3 1,434,484
Public Safety and Steam Plant, Series 2002,
5.000%, 7/15/19 - FGIC Insured
105 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 110,308
Improvement Bonds, Series 2002A, 5.250%, 5/01/22
1,185 Lynchburg, Virginia, General Obligation Bonds, Series 6/14 at 100.00 AA 1,307,659
2004, 5.000%, 6/01/21
1,300 Newport News, Virginia, General Obligation Bonds, 5/14 at 101.00 AA 1,468,324
Series 2004C, 5.000%, 5/01/16
1,280 Portsmouth, Virginia, General Obligation Bonds, Series No Opt. Call AA- 1,472,704
2005A, 5.000%, 4/01/15 - NPFG Insured
1,480 Richmond, Virginia, General Obligation Bonds, Series 7/14 at 100.00 AAA 1,634,408
2004A, 5.000%, 7/15/21 - FSA Insured
1,430 Roanoke, Virginia, General Obligation Public Improvement 10/12 at 101.00 AA 1,594,536
Bonds, Series 2002A, 5.000%, 10/01/17
1,135 Suffolk, Virginia, General Obligation Bonds, Series No Opt. Call AA 1,328,518
2005, 5.000%, 12/01/15
2,000 Virginia Beach, Virginia, General Obligation Bonds, 5/13 at 100.00 AAA 2,223,180
Series 2003B, 5.000%, 5/01/15
1,100 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AAA 1,231,494
Series 2005, 5.000%, 1/15/20
4,500 Virginia Beach, Virginia, General Obligation Bonds, 10/17 at 100.00 AAA 4,892,985
5.000%, 10/01/27 (UB)
1,425 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AAA 1,513,407
Improvement Bonds, Series 2001, 5.000%, 6/01/20
----------------------------------------------------------------------------------------------------------------------------------
22,235 Total Tax Obligation/General 24,369,454
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 27.0% (18.6% 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 216,752
260 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 142,007
1,340 Culpeper Industrial Development Authority, Virginia, 1/15 at 100.00 A 1,423,241
Lease Revenue Bonds, School Facilities Project,
Series 2005, 5.000%, 1/01/20 - NPFG Insured
Cumberland County, Virginia, Certificates of
Participation, Series 1997:
685 6.200%, 7/15/12 No Opt. Call N/R 711,886
1,375 6.375%, 7/15/17 No Opt. Call N/R 1,412,826
1,000 Dinwiddie County Industrial Development Authority, 2/14 at 100.00 A 1,082,350
Virginia, Lease Revenue Bonds, Series 2004B, 5.125%,
2/15/16 - NPFG Insured
1,000 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 1,117,180
Lease 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:
2,210 5.000%, 6/01/14 6/13 at 101.00 AA+ 2,499,886
1,165 5.000%, 6/01/22 6/13 at 101.00 AA+ 1,236,811
1,660 Front Royal and Warren County Industrial Development 4/14 at 100.00 AAA 1,789,497
Authority, Virginia, Lease Revenue Bonds, Series
2004B, 5.000%, 4/01/18 - FSA Insured
1,270 James City County Economic Development Authority, 7/15 at 100.00 AA 1,386,916
Virginia, Revenue Bonds, County Government
Projects, Series 2005, 5.000%, 7/15/19
445 Montgomery County Industrial Development Authority, 2/18 at 100.00 AA- 464,371
Virginia, Public Facility Lease Revenue
Bonds, Public Projects Series 2008, 5.000%, 2/01/29
1,185 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 AAA 1,185,379
Highway Revenue Bonds, Series 2002D, 5.000%,
7/01/32 - FSA Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB 1,903,220
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 -
AMBAC Insured
5,000 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call BBB+ 425,950
Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/43 -
AMBAC Insured
5,875 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call BBB+ 1,699,873
Tax Revenue Bonds, Series 2005C, 0.000%, 7/01/28 -
AMBAC Insured
Nuveen Investments 39
NPV | Nuveen Virginia Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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- $ 258,746
320 5.250%, 7/01/36 7/12 at 100.00 BBB- 294,246
1,110 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 N/R 1,127,127
Virginia, 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 A+ 1,680,336
Virginia, Revenue Bonds,
Virginia Municipal League and Virginia Association of
Counties Finance Program, Series 2006A, 5.000%,
8/01/23 - NPFG Insured
2,500 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 2,558,000
Public Project Lease Revenue Bonds, 5.000%,
4/01/33 - AGC Insured (UB)
1,400 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 1,529,542
Revenue Bonds, Series 2005A, 5.000%, 5/01/22
850 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 1,098,387
Revenue Bonds, 21st Century College Program, Series 2009,
Trust 09-3B, 12.927%, 2/01/27 (IF)
850 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 1,075,667
Revenue Bonds, 21st Century College Program, Series 2009,
Trust 09-4B, 13.008%, 2/01/28 (IF)
1,625 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 1,844,326
1997 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 97,641
550 5.500%, 5/01/30 - FSA Insured 5/10 at 101.00 AAA 560,560
1,740 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/11 at 101.00 AA 1,835,735
Pooled Loan Bond Program, Series 2002A, 5.000%, 5/01/19
2,000 Virginia Transportation Board, Transportation Revenue Bonds, 5/14 at 100.00 AA+ 2,277,780
U.S. Route 58 Corridor Development Program, Series
2004B, 5.000%, 5/15/15
----------------------------------------------------------------------------------------------------------------------------------
41,710 Total Tax Obligation/Limited 34,936,238
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.3% (7.1% OF TOTAL INVESTMENTS)
2,500 Metropolitan Washington D.C. Airports Authority, System 10/17 at 100.00 AA- 2,411,975
Revenue 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 A 4,016,440
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
1,000 Norfolk, Virginia, Parking System Revenue Bonds, Series 2/15 at 100.00 A 987,590
2005A, 5.000%, 2/01/23 - NPFG Insured
2,500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call A 2,673,975
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 Aa3 1,164,202
Facilities, Series 2006, 5.000%, 7/01/36 - FGIC Insured
(Alternative Minimum Tax)
2,000 Virginia Resources Authority, Airports Revolving Fund 2/11 at 100.00 Aa2 2,080,400
Revenue Bonds, Series 2001A, 5.250%, 8/01/23
----------------------------------------------------------------------------------------------------------------------------------
13,260 Total Transportation 13,334,582
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.3% (12.7% OF TOTAL INVESTMENTS) (5)
3,500 Alexandria Industrial Development Authority, Virginia, Fixed 10/10 at 101.00 N/R (5) 3,700,445
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 862,298
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 1,024,447
Refunding Bonds, Series 2002, 5.375%, 4/01/19
(Pre-refunded 4/01/12)
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
---------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (continued)
$ 600 Greater Richmond Convention Center Authority, 6/10 at 101.00 AAA $ 625,104
Virginia, Hotel 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, 11/12 at 100.00 A3 (5) 68,157
Virginia, 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 N/R (5) 426,776
800 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 N/R (5) 912,440
815 Puerto Rico Highway and Transportation Authority, 7/12 at 100.00 AAA 903,876
Highway Revenue Bonds, Series 2002D, 5.000%,
7/01/32 (Pre-refunded 7/01/12) - FSA Insured
2,500 Puerto Rico Infrastructure Financing Authority, 10/10 at 101.00 AAA 2,635,050
Special Obligation Bonds,
Series 2000A, 5.500%, 10/01/40 (Pre-refunded
10/01/10)
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) 813,851
880 5.250%, 7/01/36 (Pre-refunded 7/01/12) 7/12 at 100.00 BBB- (5) 974,406
385 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 397,243
7/01/10)
440 Rockbridge County Industrial Development Authority, 7/11 at 105.00 B2 (5) 483,762
Virginia, 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:
1,290 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,352,552
3,850 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 4,337,179
2,000 Virgin Islands Public Finance Authority, Gross Receipts
Taxes Loan Note,
Series 1999A, 6.500%, 10/01/24 (Pre-refunded 10/01/10) 10/10 at 101.00 BBB+ (5) 2,123,840
2,000 Virginia Public School Authority, School Financing 8/10 at 101.00 AA+ (5) 2,083,680
Bonds,1997 Resolution,
Series 2000B 5.000%, 8/01/18 (Pre-refunded 8/01/10)
---------------------------------------------------------------------------------------------------------------------------------
21,905 Total U.S. Guaranteed 23,725,106
---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.9% (4.8% OF TOTAL INVESTMENTS)
Bristol, Virginia, Utility System Revenue Refunding
Bonds, Series 2003:
1,705 5.250%, 7/15/14 - NPFG Insured 7/13 at 100.00 A 1,806,993
1,800 5.250%, 7/15/15 - NPFG Insured 7/13 at 100.00 A 1,890,954
2,775 5.250%, 7/15/23 - NPFG Insured 7/13 at 100.00 A 2,764,150
2,500 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 2,442,725
Virginia, Revenue
Bonds, UAE Mecklenburg Cogeneration LP, Series 2002,
6.500%, 10/15/17
(Alternative Minimum Tax)
---------------------------------------------------------------------------------------------------------------------------------
8,780 Total Utilities 8,904,822
---------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.4% (5.8% OF TOTAL INVESTMENTS)
Fairfax County Water Authority, Virginia, Water Revenue
Bonds, Bonds, Series 2002:
105 5.375%, 4/01/19 4/12 at 100.00 AAA 111,020
800 5.000%, 4/01/27 4/12 at 100.00 AAA 830,664
1,000 Loudoun County Sanitation Authority, Virginia, Water 1/15 at 100.00 AAA 1,064,270
and Sewerage System Revenue Bonds, Series
2004, 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+ 1,379,260
1,380 5.000%, 11/01/22 - FGIC Insured 11/11 at 100.00 AA+ 1,457,294
2,250 Virginia Beach, Virginia, Storm Water Utility Revenue 9/10 at 101.00 Aa3 2,351,588
Bonds, Series 2000, 6.000%, 9/01/24
1,800 Virginia Beach, Virginia, Water and Sewer System 10/15 at 100.00 AAA 1,858,698
Revenue Bonds, Series 2005, 5.000%, 10/01/30
Nuveen Investments 41
NPV | Nuveen Virginia Premium Income Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
--------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,515 Virginia State Resources Authority, Clean Water Revenue 10/17 at 100.00 Aaa $ 1,746,068
Bonds, Series 2007, Trust 3036, 13.190%, 10/01/29 (IF)
--------------------------------------------------------------------------------------------------------------------------------
10,160 Total Water and Sewer 10,798,862
--------------------------------------------------------------------------------------------------------------------------------
$ 191,900 Total Investments (cost $185,636,969) - 144.6% 187,158,201
================----------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.6)% (4,630,000)
------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 3,940,709
------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (44.0)% (6) (57,000,000)
------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 129,468,910
============================================================================================================
(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. Ratio
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) The issuer has received a formal adverse determination from the
Internal Revenue Service (the "IRS") regarding the tax-exempt status
of t he 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) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.5%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
42 Nuveen Investments
NGB | Nuveen Virginia Dividend Advantage Municipal Fund
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.5% (2.4% OF TOTAL INVESTMENTS)
$ 1,660 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB $ 1,117,944
Tobacco Settlement Asset Backed Bonds,
Series 2007B1, 5.000%, 6/01/47
715 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB 423,630
Tobacco Settlement Asset-Backed Bonds,
Series 2007B2, 0.000%, 6/01/46
-----------------------------------------------------------------------------------------------------------------------------------
2,375 Total Consumer Staples 1,541,574
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS -
6.3% (4.4% OF TOTAL INVESTMENTS)
500 Danville Industrial Development Authority, Virginia, 3/11 at 102.00 N/R 449,275
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 501,430
Virginia, Educational Facilities Revenue Bonds,
Catholic Diocese of Arlington, Series 2003, 5.500%,
10/01/33
850 Prince William County Park Authority, Virginia, Park 4/10 at 101.00 A3 858,959
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 2/10 at 100.50 BBB- 157,208
320 5.375%, 2/01/29 2/10 at 100.50 BBB- 290,934
500 Virginia College Building Authority, Educational 1/10 at 100.50 N/R 501,235
Facilities Revenue Refunding Bonds, Marymount
University, Series 1998, 5.100%, 7/01/18 - RAAI
Insured
----------------------------------------------------------------------------------------------------------------------------------
2,830 Total Education and Civic Organizations 2,759,041
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.7% (13.6% OF TOTAL INVESTMENTS)
250 Charlotte County Industrial Development Authority, 9/17 at 100.00 A- 230,625
Virginia, Hospital Revenue Bonds, Halifax
Regional Hospital Incorporated, Series 2007,
5.000%, 9/01/37
565 Fairfax County Industrial Development Authority, 5/19 at 100.00 AA+ 630,811
Virginia, Healthcare Revenue Bonds, Inova
Health System, Series 2009, Trust 11733, 14.869%,
5/15/35 (IF)
100 Fairfax County Industrial Development Authority, No Opt. Call AA+ 107,327
Virginia, Hospital Revenue Refunding Bonds,
Inova Health System, Series 1993A, 5.000%, 8/15/23
1,000 Fauquier County Industrial Development Authority, 10/12 at 102.00 BBB+ 1,000,350
Virginia, Hospital Revenue Bonds, Fauquier
Hospital, Series 2002, 5.250%, 10/01/25 - RAAI
Insured
500 Fredericksburg Economic Development Authority, No Opt. Call A3 529,370
Virginia, Hospital Facilities Revenue Bonds,
MediCorp Health System, Series 2007, 5.250%, 6/15/23
500 Fredericksburg Industrial Development Authority, 6/12 at 100.00 A3 487,640
Virginia, Revenue Bonds, MediCorp Health
System, Series 2002B, 5.125%, 6/15/33
820 Harrisonburg Industrial Development Authority, 8/16 at 100.00 Baa1 769,332
Virginia, 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- 482,971
Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.600%, 11/15/30
525 Manassas Industrial Development Authority, 4/13 at 100.00 A3 509,166
Virginia, Hospital Revenue Bonds, Prince William
Hospital, Series 2002, 5.250%, 4/01/33
800 Norton Industrial Development Authority, Virginia, 12/11 at 101.00 N/R 751,496
Hospital 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 766,628
360 5.250%, 6/15/31 6/16 at 100.00 A3 358,610
605 5.250%, 6/15/37 6/16 at 100.00 A3 594,606
785 Virginia Small Business Financing Authority, Wellmont 9/17 at 100.00 BBB+ 661,300
Health System Project Revenue Bonds,
Series 2007A, 5.250%, 9/01/37
715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 A+ 729,650
Hospital Revenue Bonds, Winchester
Medical Center, Series 2007, 5.125%, 1/01/31
-----------------------------------------------------------------------------------------------------------------------------------
8,755 Total Health Care 8,609,882
-----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 43
NGB | Nuveen Virginia Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments November 30, 2009 (unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.7% (3.2% OF TOTAL INVESTMENTS)
$ 1,000 Arlington County Industrial Development Authority, 11/11 at 102.00 AAA $ 1,042,860
Virginia, 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 10/10 at 100.00 AA+ 1,007,960
Housing Bonds, Series 2000G, 5.625%, 10/01/20
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,000 Total Housing/Multifamily 2,050,820
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.8% (6.8% OF TOTAL INVESTMENTS)
1,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 1,009,930
Mortgage Bonds, Series 2001H-1, 5.350%,
7/01/31 - NPFG Insured
600 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 564,882
Mortgage Bonds, Series 2005C-2, 4.750%,
10/01/32 (Alternative Minimum Tax)
960 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 935,357
Mortgage Bonds, Series 2006 D1, 4.900%,
1/01/33 (Alternative Minimum Tax)
480 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 462,850
Mortgage Bonds, Series 2006, 4.800%,
7/01/29 (Alternative Minimum Tax)
1,400 Virginia Housing Development Authority, Commonwealth 7/16 at 100.00 AAA 1,318,562
Mortgage Bonds, Series 2007B, 4.750%,
7/01/32 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
4,440 Total Housing/Single Family 4,291,581
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.4% (7.8% OF TOTAL INVESTMENTS)
700 Albemarle County Industrial Development Authority, 1/17 at 100.00 N/R 616,077
Virginia, 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, 12/15 at 100.00 N/R 283,875
Virginia, Mortgage Revenue Bonds, Lucy Corr
Village, Series 2005, 5.625%, 12/01/39
1,005 Fairfax County Economic Development Authority, 10/17 at 100.00 N/R 892,812
Virginia, Residential Care Facilities Mortgage
Revenue Bonds, Goodwin House, Inc., Series
2007A, 5.125%, 10/01/37
500 Fairfax County Economic Development Authority, 10/16 at 100.00 BBB+ 442,540
Virginia, Retirement Center Revenue Bonds,
Greenspring Village, Series 2006A, 4.750%,
10/01/26
540 Henrico County Economic Development Authority, No Opt. Call BBB- 438,631
Virginia, Residential Care Facility Revenue
Bonds, Westminster Canterbury of Richmond,
Series 2006, 5.000%, 10/01/35
700 Industrial Development Authority of the County 1/17 at 100.00 N/R 518,595
of Prince 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, 3/12 at 101.00 N/R 657,183
Virginia, 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 361,147
Residential Revenue Bonds, Virginia
Lutheran Homes Incorporated, Series 2006, 5.000%,
12/01/39
350 Suffolk Industrial Development Authority, Virginia, 9/16 at 100.00 N/R 266,154
Retirement Facilities First Mortgage
Revenue Bonds, Lake Prince Center, Series 2006,
5.300%, 9/01/31
350 Virginia Beach Development Authority, Virginia, 11/15 at 100.00 N/R 326,582
Residential Care Facility Mortgage Revenue
Bonds, Westminster Canterbury on Chesapeake
Bay, Series 2005, 5.000%, 11/01/22
175 Winchester Industrial Development Authority, 1/15 at 100.00 N/R 161,208
Virginia, Residential Care Facility Revenue
Bonds, Westminster-Canterbury of Winchester Inc.,
Series 2005A, 5.200%, 1/01/27
-----------------------------------------------------------------------------------------------------------------------------------
5,850 Total Long-Term Care 4,964,804
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
100 Bedford County Industrial Development Authority, 2/10 at 100.00 B2 88,405
Virginia, 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, 12/09 at 101.00 B2 19,612
Virginia, 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, 12/09 at 100.50 B2 195,554
Virginia, Industrial Development Revenue
Refunding Bonds, Nekoosa Packaging Corporation
Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (4)
-----------------------------------------------------------------------------------------------------------------------------------
340 Total Materials 303,571
-----------------------------------------------------------------------------------------------------------------------------------
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.7% (8.1% OF TOTAL INVESTMENTS)
$ 700 Loudoun County, Virginia, General Obligation Bonds, 12/16 at 100.00 AAA $ 770,966
Series 2006, 5.000%, 12/01/25
845 Newport News, Virginia, General Obligation Bonds, Series 5/14 at 101.00 AA 954,411
2004C, 5.000%, 5/01/16
620 Richmond, Virginia, General Obligation Bonds, Series 7/15 at 100.00 AAA 711,363
2005A, 5.000%, 7/15/17 - FSA Insured
400 Suffolk, Virginia, General Obligation Bonds, Series 2005, No Opt. Call AA 468,200
5.000%, 12/01/15
400 Virginia Beach, Virginia, General Obligation Bonds, Series 1/16 at 100.00 AAA 447,816
2005, 5.000%, 1/15/20
1,600 Virginia Beach, Virginia, General Obligation Bonds, 10/17 at 100.00 AAA 1,747,696
5.000%, 10/01/26 (UB)
----------------------------------------------------------------------------------------------------------------------------------
4,565 Total Tax Obligation/General 5,100,452
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.8% (13.7% OF TOTAL INVESTMENTS)
100 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 90,334
Special Assessment Bonds, Series
2003A, 6.750%, 3/01/22
500 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 430,205
Revenue Bonds, Series 2003, 7.500%, 6/01/33
Buena Vista Public Recreational Facilities Authority, Virginia,
Lease Revenue Bonds, Golf Course Project, Series 2005A:
120 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 77,642
95 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 51,887
500 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 558,590
Lease Revenue Bonds, Joint Public
Uses Community Project, Series 2006, 5.000%, 5/15/18
160 Montgomery County Industrial Development Authority, 2/18 at 100.00 AA- 166,965
Virginia, Public Facility Lease Revenue
Bonds, Public Projects Series 2008, 5.000%, 2/01/29
580 Prince William County, Virginia, Certificates of 6/15 at 100.00 Aa2 621,644
Participation, County Facilities, Series
2005, 5.000%, 6/01/20 - AMBAC Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call BBB 666,127
Revenue Bonds, Series 2007N, 5.250%, 7/01/31 - AMBAC
Insured
3,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 795,090
Revenue Bonds, Series 2005A, 0.000%, 7/01/29 - AMBAC
Insured
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 N/R 1,013,100
Virginia, Lease Revenue Bonds, School
Facilities, Series 2003B, 5.125%, 8/01/23 - AMBAC Insured
600 Stafford County and Staunton Industrial Development 8/16 at 100.00 A+ 630,126
Authority, Virginia, Revenue Bonds, Virginia Municipal League
and Virginia Association of Counties Finance Program,
Series 2006A, 5.000%, 8/01/23 - NPFG Insured
890 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 910,648
Public Project Lease Revenue Bonds, 5.000%, 4/01/33 -
AGC Insured (UB)
960 Virgin Islands Public Finance Authority, Gross Receipts 10/10 at 101.00 BBB+ 982,973
Taxes Loan Note, Series 1999A, 6.375%, 10/01/19
195 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 213,043
Revenue Bonds, Series 2005A, 5.000%, 5/01/22
280 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 361,822
Revenue Bonds, 21st Century College Program, Series 2009,
Trust 09-3B, 12.927%, 2/01/27 (IF)
280 Virginia College Building Authority, Educational Facilities 2/19 at 100.00 AA+ 354,337
Revenue Bonds, 21st Century
College Program, Series 2009, Trust 09-4B, 13.008%,
2/01/28 (IF)
345 Virginia Gateway Community Development Authority, Prince 3/13 at 102.00 N/R 322,147
William County, Special Assessment Bonds, Series
2003, 6.375%, 3/01/30
345 Virginia Public School Authority, School Financing Bonds, 8/15 at 100.00 AA+ 391,565
1997 Resolution, Series 2005C, 5.000%, 8/01/17
----------------------------------------------------------------------------------------------------------------------------------
10,650 Total Tax Obligation/Limited 8,638,245
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.0% (17.3% OF TOTAL INVESTMENTS)
1,000 Capital Region Airport Authority, Richmond, Virginia, Revenue 7/15 at 100.00 AAA 1,095,720
Bonds, Richmond International Airport, Series 2005A, 5.000%,
7/01/18 - FSA Insured
1,000 Chesapeake Bay Bridge and Tunnel Commission, Virginia, No Opt. Call A 1,083,040
General Resolution Revenue Refunding Bonds, Series 1998,
5.500%, 7/01/25 - NPFG Insured
3,000 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA- 3,046,108
System Revenue Bonds, Series 2001A, 5.500%, 10/01/27
- NPFG Insured (Alternative Minimum Tax)
Nuveen Investments 45
NGB | NUVEEN VIRGINIA DIVIDEND ADVANTAGE MUNICIPAL FUND (continued)
| PORTFOLIO OF INVESTMENTS November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 250 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AA- $ 257,773
System Revenue Bonds, Series 2001B, 5.000%, 10/01/21 -
NPFG Insured
1,500 Norfolk Airport Authority, Virginia, Airport Revenue Bonds, 7/11 at 100.00 A 1,506,165
Series 2001A, 5.125%, 7/01/31 - FGIC Insured
500 Norfolk, Virginia, Parking System Revenue Bonds, Series 2005A, 2/15 at 100.00 A 493,795
5.000%, 2/01/23 - NPFG Insured
500 Richmond Metropolitan Authority, Virginia, Revenue Refunding No Opt. Call A 534,795
Bonds, Expressway System, Series 2002, 5.250%, 7/15/22
- FGIC Insured
455 Virginia Port Authority, Revenue Bonds, Port Authority 7/13 at 100.00 Aa3 420,406
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 1,274,245
Bonds, Series 2001A, 5.250%, 8/01/23
1,250 Virginia Resources Authority, Airports Revolving Fund Revenue 2/11 at 100.00 Aa2 1,226,413
Bonds, Series 2001B, 5.125%, 8/01/27 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
10,680 Total Transportation 10,938,460
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.4% (18.9% OF TOTAL INVESTMENTS) (5)
500 Albemarle County Industrial Development Authority, Virginia, 1/12 at 100.00 N/R (5) 555,800
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 1,139,540
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 N/R (5) 31,887
850 5.400%, 5/15/31 (Pre-refunded 5/15/11) 5/11 at 100.00 N/R (5) 903,890
20 Henrico County Economic Development Authority, Virginia, 11/12 at 100.00 A3 (5) 22,719
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) 2,457,401
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 N/R (5) 483,680
Hospital Revenue Bonds, Loudoun Hospital Center, Series
2002A, 6.000%, 6/01/22 (Pre-refunded 6/01/12)
500 Loudoun County, Virginia, General Obligation Public 6/15 at 100.00 AAA 588,285
Improvement Bonds, Series 2005B, 5.000%, 6/01/18
(Pre-refunded 6/01/15)
Puerto Rico Infrastructure Financing Authority, Special
Obligation Bonds, Series 2000A:
1,500 5.500%, 10/01/32 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,581,030
1,500 5.500%, 10/01/40 (Pre-refunded 10/01/10) 10/10 at 101.00 AAA 1,581,030
155 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 159,929
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded 7/01/10)
120 Rockbridge County Industrial Development Authority, Virginia, No Opt. Call B2 (5) 127,106
Horse Center Revenue Refunding Bonds, Series 2001B,
6.125%, 7/15/11 (ETM)
880 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 (5) 967,525
Horse Center Revenue Refunding Bonds, Series 2001C, 6.850%,
7/15/21 (Pre-refunded 7/15/11)
725 Tobacco Settlement Financing Corporation of Virginia, 6/15 at 100.00 AAA 816,742
Tobacco 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) 546,785
Revenue Bonds, 21st Century College Program, Series 2002A,
5.000%, 2/01/22 (Pre-refunded 2/01/12)
----------------------------------------------------------------------------------------------------------------------------------
11,015 Total U.S. Guaranteed 11,963,349
----------------------------------------------------------------------------------------------------------------------------------
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 1,000 Mecklenburg County Industrial Development Authority, Virginia, 10/12 at 100.00 Baa1 $ 977,090
Revenue Bonds, UAE Mecklenburg Cogeneration LP,
Series 2002, 6.500%, 10/15/17 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.6% (1.8% OF TOTAL INVESTMENTS)
500 Virginia Beach, Virginia, Water and Sewer System Revenue 10/15 at 100.00 AAA 516,305
Bonds, Series 2005, 5.000%, 10/01/30
545 Virginia State Resources Authority, Clean Water Revenue Bonds, 10/17 at 100.00 Aaa 628,123
Series 2007, Trust 3036, 13.190%, 10/01/29 (IF)
----------------------------------------------------------------------------------------------------------------------------------
1,045 Total Water and Sewer 1,144,428
----------------------------------------------------------------------------------------------------------------------------------
$ 65,545 Total Investments (cost $64,132,303) - 144.8% 63,283,297
==============--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.8)% (1,640,000)
----------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (52.2)% (6) (22,800,000)
----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 11.2% 4,851,650
----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 43,694,947
================================================================================================================
(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.
(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) MuniFund Term Preferred Shares, at Liquidation Value as a percentage
of Total Investments is 36.0%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 47
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2
| Portfolio of Investments
November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.6% (2.4% OF TOTAL INVESTMENTS)
$ 3,100 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB $ 2,087,726
Tobacco Settlement Asset Backed Bonds,
Series 2007B1, 5.000%, 6/01/47
1,430 Tobacco Settlement Financing Corporation of Virginia, 6/17 at 100.00 BBB 847,261
Tobacco Settlement Asset-Backed Bonds,
Series 2007B2, 0.000%, 6/01/46
----------------------------------------------------------------------------------------------------------------------------------
4,530 Total Consumer Staples 2,934,987
----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 6.7% (4.6% OF TOTAL INVESTMENTS)
1,000 Fairfax County Economic Development Authority, 3/10 at 101.00 A3 1,011,740
Virginia, Revenue Bonds, National Wildlife
Federation, Series 1999, 5.375%,
9/01/29 - NPFG Insured
1,000 Prince William County Industrial Development 10/13 at 101.00 A3 1,002,860
Authority, Virginia, Educational Facilities
Revenue Bonds, Catholic Diocese of Arlington,
Series 2003, 5.500%, 10/01/33
1,500 Puerto Rico Industrial, Tourist, Educational, 12/12 at 101.00 BBB- 1,446,675
Medical and 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 A 2,005,040
Educational Facilities First Mortgage
Revenue Bonds, Shenandoah University,
Series 1998, 5.250%, 10/01/28 - NPFG Insured
----------------------------------------------------------------------------------------------------------------------------------
5,500 Total Education and Civic Organizations 5,466,315
----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.3% (18.7% OF TOTAL INVESTMENTS)
1,500 Albemarle County Industrial Development Authority, 10/12 at 100.00 A3 1,448,490
Virginia, Hospital Revenue Bonds, Martha
Jefferson Hospital, Series 2002, 5.250%, 10/01/35
450 Charlotte County Industrial Development Authority, 9/17 at 100.00 A- 444,749
Virginia, Hospital Revenue Bonds, Halifax
Regional Hospital Incorporated,
Series 2007, 5.000%, 9/01/27
1,070 Fairfax County Industrial Development Authority, 5/19 at 100.00 AA+ 1,194,634
Virginia, Healthcare Revenue Bonds, Inova
Health System, Series 2009, Trust 11733,
14.869%, 5/15/35 (IF)
3,000 Fauquier County Industrial Development Authority, 10/12 at 102.00 BBB+ 3,001,049
Virginia, Hospital Revenue Bonds, Fauquier
Hospital, Series 2002, 5.250%,
10/01/25 - RAAI Insured
1,000 Fredericksburg Economic Development Authority, No Opt. Call A3 1,058,740
Virginia, Hospital Facilities Revenue Bonds,
MediCorp Health System, Series 2007, 5.250%, 6/15/23
675 Fredericksburg Industrial Development Authority, 6/12 at 100.00 A3 658,314
Virginia, Revenue Bonds, MediCorp Health
System, Series 2002B, 5.125%, 6/15/33
1,500 Harrisonburg Industrial Development Authority, 8/16 at 100.00 Baa1 1,407,315
Virginia, Hospital Facilities Revenue Bonds,
Rockingham Memorial Hospital,
Series 2006, 5.000%, 8/15/31 - AMBAC Insured
960 Henrico County Economic Development Authority, 11/12 at 100.00 A- 965,942
Virginia, Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.600%, 11/15/30
1,155 Manassas Industrial Development Authority, Virginia, 4/13 at 100.00 A3 1,120,165
Hospital Revenue Bonds, Prince William
Hospital, Series 2002, 5.250%, 4/01/33
1,200 Norton Industrial Development Authority, Virginia, 12/11 at 101.00 N/R 1,127,244
Hospital Revenue Refunding and Improvement
Bonds, Norton Community Hospital, Series 2001,
6.000%, 12/01/22 - ACA Insured
1,000 Prince William County Industrial Development 4/10 at 101.00 Aa3 1,009,280
Authority, Virginia, Hospital Facility Revenue
Refunding Bonds, Potomac Hospital Corporation
of Prince William, Series 1998, 5.000%,
10/01/18 - FSA Insured
3,915 Roanoke Industrial Development Authority, Virginia, 7/12 at 100.00 A+ 4,053,864
Hospital Revenue Bonds, Carilion Health
System, Series 2002A, 5.500%,
7/01/20 - NPFG 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 1,277,713
655 5.250%, 6/15/31 6/16 at 100.00 A3 652,472
1,095 5.250%, 6/15/37 6/16 at 100.00 A3 1,076,188
1,430 Virginia Small Business Financing Authority, Wellmont 9/17 at 100.00 BBB+ 1,204,661
Health System Project Revenue Bonds,
Series 2007A, 5.250%, 9/01/37
715 Winchester Industrial Development Authority, Virginia, 1/17 at 100.00 A+ 729,650
Hospital Revenue Bonds, Winchester
Medical Center, Series 2007, 5.125%, 1/01/31
----------------------------------------------------------------------------------------------------------------------------------
22,570 Total Health Care 22,430,470
----------------------------------------------------------------------------------------------------------------------------------
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 13.8% (9.5% OF TOTAL INVESTMENTS)
$ 7,485 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA $7,559,324
Mortgage Bonds, Series 2001H-1, 5.350%,
7/01/31 - NPFG Insured
500 Virginia Housing Development Authority, Commonwealth 1/15 at 100.00 AAA 470,735
Mortgage Bonds, Series 2005C-2, 4.750%,
10/01/32 (Alternative Minimum Tax)
870 Virginia Housing Development Authority, Commonwealth 7/15 at 100.00 AAA 838,915
Mortgage Bonds, Series 2006, 4.800%,
7/01/29 (Alternative Minimum Tax)
2,600 Virginia Housing Development Authority, Commonwealth 7/16 at 100.00 AAA 2,448,758
Mortgage Bonds, Series 2007B, 4.750%,
7/01/32 (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
11,455 Total Housing/Single Family 11,317,732
----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 10.7% (7.4% OF TOTAL INVESTMENTS)
1,300 Albemarle County Industrial Development Authority, 1/17 at 100.00 N/R 1,144,143
Virginia, 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 527,196
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 1,612,392
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+ 442,540
Retirement Center Revenue Bonds,
Greenspring Village, Series 2006A, 4.750%, 10/01/26
855 Henrico County Economic Development Authority, Virginia, No Opt. Call BBB- 694,499
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 1/17 at 100.00 N/R 963,105
Prince 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, 3/12 at 101.00 N/R 1,364,918
Virginia, 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 660,968
Residential Revenue Bonds, Virginia
Lutheran Homes Incorporated, Series 2006,
5.000%, 12/01/39
650 Suffolk Industrial Development Authority, Virginia, 9/16 at 100.00 N/R 494,286
Retirement Facilities First Mortgage
Revenue Bonds, Lake Prince Center, Series 2006,
5.300%, 9/01/31
650 Virginia Beach Development Authority, Virginia, 11/15 at 100.00 N/R 606,509
Residential Care Facility Mortgage Revenue
Bonds, Westminster Canterbury on Chesapeake Bay,
Series 2005, 5.000%, 11/01/22
325 Winchester Industrial Development Authority, 1/15 at 100.00 N/R 299,387
Virginia, Residential Care Facility Revenue
Bonds, Westminster-Canterbury of Winchester Inc.,
Series 2005A, 5.200%, 1/01/27
----------------------------------------------------------------------------------------------------------------------------------
10,365 Total Long-Term Care 8,809,943
----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
165 Bedford County Industrial Development Authority, 2/10 at 100.00 B2 145,868
Virginia, 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, 12/09 at 100.50 B2 408,885
Virginia, Industrial Development Revenue
Refunding Bonds, Nekoosa Packaging Corporation
Project, Series 1998, 5.650%, 12/01/25
(Alternative Minimum Tax) (4)
----------------------------------------------------------------------------------------------------------------------------------
625 Total Materials 554,753
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.9% (15.0% of TOTAL INVESTMENTS)
1,750 Chesapeake, Virginia, General Obligation Bonds, 12/11 at 100.00 AA+ 1,916,775
Series 2001, 5.500%, 12/01/16
1,000 Loudoun County, Virginia, General Obligation
Bonds, Series 2006, 5.000%, 12/01/25 12/16 at 100.00 AAA 1,101,380
95 Loudoun County, Virginia, General Obligation Public 5/12 at 100.00 AAA 99,802
Improvement Bonds, Series 2002A,
5.250%, 5/01/22
Powhatan County, Virginia, General Obligation Bonds,
Series 2001:
660 5.000%, 1/15/23 - AMBAC Insured 1/11 at 101.00 A+ 687,674
1,000 5.000%, 1/15/27 - AMBAC Insured 1/11 at 101.00 A+ 1,014,220
Roanoke, Virginia, General Obligation Public Improvement
Bonds, Series 2002A:
1,950 5.000%, 10/01/18 10/12 at 101.00 AA 2,145,975
2,435 5.000%, 10/01/19 10/12 at 101.00 AA 2,679,718
----------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (Continued)
$ 1,280 Roanoke, Virginia, General Obligation Public 10/12 at 101.00 AA $ 1,344,013
Improvement Bonds, Series 2002B, 5.000%,
10/01/15 - FGIC Insured (Alternative Minimum Tax)
600 Virginia Beach, Virginia, General Obligation Bonds, 1/16 at 100.00 AAA 671,724
Series 2005, 5.000%, 1/15/20
2,900 Virginia Beach, Virginia, General Obligation Bonds, 10/17 at 100.00 AAA 3,167,699
5.000%, 10/01/26 (UB)
1,500 Virginia Beach, Virginia, General Obligation Public 6/11 at 101.00 AAA 1,593,060
Improvement Bonds, Series 2001,
5.000%, 6/01/19
1,420 Virginia Beach, Virginia, General Obligation Refunding 3/12 at 100.00 AAA 1,524,413
and Public Improvement Bonds, Series
2002, 5.000%, 3/01/21
----------------------------------------------------------------------------------------------------------------------------------
16,590 Total Tax Obligation/General 17,946,453
----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.6% (14.1% of Total Investments)
121 Bell Creek Community Development Authority, Virginia, 3/13 at 101.00 N/R 109,304
Special Assessment Bonds, Series 2003A,
6.750%, 3/01/22
1,000 Broad Street Community Development Authority, Virginia, 6/13 at 102.00 N/R 860,410
Revenue Bonds, Series 2003,
7.500%, 6/01/33
Buena Vista Public Recreational Facilities Authority,
Virginia, Lease Revenue Bonds, Golf Course Project,
Series 2005A:
210 5.250%, 7/15/25 - ACA Insured 7/15 at 100.00 N/R 135,874
165 5.500%, 7/15/35 - ACA Insured 7/15 at 100.00 N/R 90,120
800 Fairfax County Economic Development Authority, Virginia, 5/16 at 100.00 AA+ 893,744
Lease Revenue Bonds, Joint Public
Uses Community Project, Series 2006, 5.000%, 5/15/18
1,800 Loudoun County Industrial Development Authority, 3/13 at 100.00 AA+ 1,947,294
Virginia, Lease Revenue Refunding Bonds,
Public Facility Project, Series 2003, 5.000%, 3/01/19
285 Montgomery County Industrial Development Authority, 2/18 at 100.00 AA- 297,406
Virginia, Public Facility Lease Revenue
Bonds, Public Projects Series 2008, 5.000%, 2/01/29
1,300 Puerto Rico Highway and Transportation Authority, No Opt. Call BBB 1,237,093
Highway Revenue Bonds, Series 2007N, 5.250%,
7/01/31 - AMBAC Insured
2,000 Puerto Rico Infrastructure Financing Authority, No Opt. Call BBB+ 530,060
Special Tax Revenue Bonds, Series 2005A,
0.000%, 7/01/29 - AMBAC Insured
400 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 BBB- 390,560
Government Facilities Revenue Refunding
Bonds, Series 2002D, 5.250%, 7/01/27
1,000 Spotsylvania County Industrial Development Authority, 8/13 at 100.00 N/R 1,013,100
Virginia, Lease Revenue Bonds, School
Facilities, Series 2003B, 5.125%,
8/01/23 - AMBAC Insured
1,000 Stafford County and Staunton Industrial Development 8/16 at 100.00 A+ 1,050,210
Authority, Virginia, Revenue Bonds,
Virginia Municipal League and Virginia Association
of Counties Finance Program, Series 2006A,
5.000%, 8/01/23 - NPFG Insured
1,610 Stafford County Economic Development Authority, Virginia, 4/18 at 100.00 AAA 1,647,352
Public Project Lease Revenue Bonds,
5.000%, 4/01/33 - AGC Insured (UB)
700 Virginia Beach Development Authority, Public Facilities 5/15 at 100.00 AA+ 764,771
Revenue Bonds, Series 2005A,
5.000%, 5/01/22
535 Virginia College Building Authority, Educational 2/19 at 100.00 AA+ 691,338
Facilities Revenue Bonds, 21st Century
College Program, Series 2009, Trust 09-3B,
12.927%, 2/01/27 (IF)
535 Virginia College Building Authority, Educational 2/19 at 100.00 AA+ 677,037
Facilities Revenue Bonds, 21st Century
College Program, Series 2009, Trust 09-4B,
13.008%, 2/01/28 (IF)
673 Virginia Gateway Community Development Authority, 3/13 at 102.00 N/R 628,420
Prince William County, Special Assessment
Bonds, Series 2003, 6.375%, 3/01/30
2,540 Virginia Public School Authority, School Financing 8/11 at 101.00 AA+ 2,754,732
Bonds, 1997 Resolution, Series 2001B,
5.000%, 8/01/19
570 Virginia Public School Authority, School Financing 8/15 at 100.00 AA+ 646,933
Bonds, 1997 Resolution, Series 2005C,
5.000%, 8/01/17
540 Virginia Resources Authority, Infrastructure Revenue No Opt. Call AA 548,197
Bonds, Prerefunded-Pooled Loan Bond
Program, Series 2001D, 5.000%, 5/01/26
----------------------------------------------------------------------------------------------------------------------------------
17,784 Total Tax Obligation/Limited 16,913,955
----------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.9% (2.7% OF TOTAL INVESTMENTS)
$ 1,000 Metropolitan Washington D.C. Airports Authority, 10/12 at 100.00 AA- $ 1,003,200
Airport System Revenue Bonds, Series 2002A,
5.125%, 10/01/26 - FGIC Insured
(Alternative Minimum Tax)
1,500 Norfolk, Virginia, Parking System Revenue Bonds, 2/15 at 100.00 A 1,481,385
Series 2005A, 5.000%, 2/01/23 - NPFG Insured
825 Virginia Port Authority, Revenue Bonds, Port 7/13 at 100.00 Aa3 762,275
Authority Facilities, Series 2006, 5.000%,
7/01/36 - FGIC Insured (Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
3,325 Total Transportation 3,246,860
----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.2% (11.8% OF TOTAL INVESTMENTS)(5)
165 Albemarle County Industrial Development Authority, 1/12 at 100.00 N/R(5) 183,414
Virginia, 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 No Opt. Call AAA 1,149,730
Revenue 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) 45,438
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 N/R (5) 284,518
600 6.100%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 101.00 N/R (5) 684,330
1,000 Newport News, Virginia, General Obligation Bonds, 11/13 at 100.00 AA(5) 1,148,830
Series 2003B, 5.000%, 11/01/22
(Pre-refunded 11/01/13)
2,750 Puerto Rico Infrastructure Financing Authority, 10/10 at 101.00 AAA 2,898,555
Special Obligation Bonds, Series 2000A,
5.500%, 10/01/40 (Pre-refunded 10/01/10)
1,100 Puerto Rico Public Buildings Authority, Guaranteed 7/12 at 100.00 BBB-(5) 1,218,008
Government Facilities Revenue Refunding
Bonds, Series 2002D, 5.250%, 7/01/27
(Pre-refunded 7/01/12)
455 Puerto Rico Public Finance Corporation, 2/12 at 100.00 AAA 499,663
Commonwealth Appropriation Bonds, Series 2002E,
5.500%, 8/01/29 (Pre-refunded 2/01/12)
445 Rockbridge County Industrial Development Authority, 7/11 at 105.00 B2(5) 489,260
Virginia, Horse Center Revenue Refunding
Bonds, Series 2001C, 6.850%, 7/15/21
(Pre-refunded 7/15/11)
1,000 Staunton, Virginia, General Obligation Bonds, 2/14 at 101.00 Aa3(5) 1,213,490
Series 2004, 6.250%, 2/01/25 (Pre-refunded
2/01/14) - AMBAC Insured
Tobacco Settlement Financing Corporation of Virginia,
Tobacco Settlement Asset-Backed Bonds,
Series 2005:
490 5.250%, 6/01/19 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 513,760
2,700 5.500%, 6/01/26 (Pre-refunded 6/01/15) 6/15 at 100.00 AAA 3,041,657
725 Virginia Resources Authority, Infrastructure Revenue Bonds, 5/10 at 101.00 AA(5) 746,598
Prerefunded-Pooled Loan Bond
Program, Series 2001D, 5.000%, 5/01/26
(Pre-refunded 5/01/10)
----------------------------------------------------------------------------------------------------------------------------------
12,720 Total U.S. Guaranteed 14,117,251
----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.4% (1.6% OF TOTAL INVESTMENTS)
2,000 Mecklenburg County Industrial Development Authority, 10/12 at 100.00 Baa1 1,954,180
Virginia, Revenue Bonds, UAE Mecklenburg
Cogeneration LP, Series 2002, 6.500%, 10/15/17
(Alternative Minimum Tax)
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.0% (11.7% OF TOTAL INVESTMENTS)
805 Fairfax County Water Authority, Virginia, Water 4/12 at 100.00 AAA 835,856
Revenue 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 1,163,500
3,000 5.500%, 11/15/19 - FSA Insured No Opt. Call AAA 3,499,679
Norfolk, Virginia, Water Revenue Refunding Bonds,
Series 2001:
1,080 5.000%, 11/01/18 - FGIC Insured 11/11 at 100.00 AA+ 1,137,100
1,190 5.000%, 11/01/19 - FGIC Insured 11/11 at 100.00 AA+ 1,252,915
1,525 5.000%, 11/01/24 - FGIC Insured 11/11 at 100.00 AA+ 1,608,036
1,000 Virginia Beach, Virginia, Water and Sewer System 10/15 at 100.00 AAA 1,032,610
Revenue Bonds, Series 2005, 5.000%, 10/01/30
2,250 Virginia Resources Authority, Water and Sewerage 5/11 at 101.00 AA 2,293,650
System Revenue Bonds, Caroline County Public
Improvements Project, Series 2001, 5.000%, 5/01/32
Nuveen Investments 51
NNB | Nuveen Virginia Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of Investments November 30, 2009 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (Continued)
$ 990 Virginia State Resources Authority, Clean Water 10/17 at 100.00 Aaa $ 1,140,995
Revenue Bonds, Series 2007, Trust 3036,
13.190%, 10/01/29 (IF)
----------------------------------------------------------------------------------------------------------------------------------
12,840 Total Water and Sewer 13,964,341
----------------------------------------------------------------------------------------------------------------------------------
$ 120,304 Total Investments (cost $119,381,219) - 145.8% 119,657,240
==============--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.6)% (2,980,000)
-----------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (52.7)% (6) (43,200,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 10.5% 8,569,008
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $82,046,248
=================================================================================================================
(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.
(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) MuniFund Term Preferred Shares, at Liquidation Value as a percentage
of Total Investments is 36.1%.
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. See Notes to Financial Statements, Footnote 1 -
Inverse Floating Rate Securities for more information.
See accompanying notes to financial statements.
52 Nuveen Investments
| Statement of
| ASSETS & LIABILITIES November 30, 2009 (Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $214,553,846, $86,214,950,
$86,942,589 and $111,330,537, respectively) $ 220,127,082 $ 86,191,795 $ 87,275,971 $ 112,741,915
Cash 10,914,017 1,492,491 1,573,558 2,008,882
Cash equivalents -- -- -- --
Receivables:
Interest 3,920,538 1,593,513 1,574,302 1,849,745
Investments sold 130,000 -- -- --
Deferred offering costs -- -- -- --
Other assets 38,562 13,330 10,881 13,288
----------------------------------------------------------------------------------------------------------------------------------
Total assets 235,130,199 89,291,129 90,434,712 116,613,830
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 9,962,000 3,973,000 3,840,000 4,255,000
Payables:
Auction Rate Preferred shares noticed for redemption,
at liquidation value -- -- -- --
Auction Rate Preferred share dividends 4,269 2,692 322 2,628
Common share dividends 611,163 246,467 250,271 312,125
Interest -- -- -- --
Offering costs -- -- -- --
MuniFund Term Preferred shares, at liquidation value -- -- -- --
Accrued expenses:
Management fees 120,652 39,023 39,530 52,830
Other 94,087 40,938 41,278 51,451
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 10,792,171 4,302,120 4,171,401 4,674,034
----------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 70,875,000 25,825,000 26,625,000 35,000,000
==================================================================================================================================
Net assets applicable to Common shares $ 153,463,028 $ 59,164,009 $ 59,638,311 $ 76,939,796
==================================================================================================================================
Common shares outstanding 10,641,816 4,193,517 4,196,367 5,363,909
==================================================================================================================================
Net asset value per Common share outstanding (net
assets applicable to Common shares, divided by
Common shares outstanding) $ 14.42 $ 14.11 $ 14.21 $ 14.34
==================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 106,418 $ 41,935 $ 41,964 $ 53,639
Paid-in surplus 147,818,663 59,506,700 59,542,517 75,721,708
Undistributed (Over-distribution of) net investment income 1,766,351 618,691 611,937 814,852
Accumulated net realized gain (loss) from investments (1,801,640) (980,162) (891,489) (1,061,781)
Net unrealized appreciation (depreciation) of investments 5,573,236 (23,155) 333,382 1,411,378
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 153,463,028 $ 59,164,009 $ 59,638,311 $ 76,939,796
==================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Auction Rate Preferred Unlimited Unlimited Unlimited Unlimited
MuniFund Term Preferred -- -- -- --
==================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 53
| Statement of
| Assets & Liabilities (continued) November 30, 2009 (unaudited)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $185,636,969, $64,132,303
and $119,381,219, respectively) $ 187,158,201 $ 63,283,297 $ 119,657,240
Cash 1,528,441 3,756,776 6,697,941
Cash equivalents (1) -- 19,507,715 --
Receivables:
Interest 3,056,967 1,017,792 1,823,432
Investments sold 15,025 -- --
Deferred offering costs -- 582,977 813,001
Other assets 35,454 10,714 21,114
----------------------------------------------------------------------------------------------------------------------------------
Total assets 191,794,088 88,159,271 129,012,728
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 4,630,000 1,640,000 2,980,000
Payables:
Auction Rate Preferred shares noticed for redemption, at
liquidation value -- 19,500,000 --
Auction Rate Preferred share dividends 3,257 1,463 3,348
Common share dividends 515,514 192,697 363,484
Interest -- 23,053 43,680
Offering costs -- 245,000 265,000
MuniFund Term Preferred shares, at liquidation value -- 22,800,000 43,200,000
Accrued expenses:
Management fees 100,676 32,695 62,440
Other 75,731 29,416 48,528
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,325,178 44,464,324 46,966,480
----------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 57,000,000 -- --
==================================================================================================================================
Net assets applicable to Common shares $ 129,468,910 $ 43,694,947 $ 82,046,248
==================================================================================================================================
Common shares outstanding 8,964,019 3,138,015 5,746,034
==================================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 14.44 $ 13.92 $ 14.28
==================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 89,640 $ 31,380 $ 57,460
Paid-in surplus 126,207,820 44,506,788 81,554,898
Undistributed (Over-distribution of) net investment income 1,736,160 533,003 832,662
Accumulated net realized gain (loss) from investments (85,942) (527,218) (674,793)
Net unrealized appreciation (depreciation) of investments 1,521,232 (849,006) 276,021
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 129,468,910 $ 43,694,947 $ 82,046,248
==================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Auction Rate Preferred Unlimited Unlimited Unlimited
MuniFund Term Preferred -- Unlimited Unlimited
==================================================================================================================================
(1) Segregated for the payment of Auction Rate Preferred shares noticed for
redemption.
See accompanying notes to financial statements.
54 Nuveen Investments
| Statement of
| Operations
Six Months Ended November 30, 2009
(Unaudited)
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,461,157 $2,250,950 $2,245,237 $2,726,632
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 727,963 277,057 281,187 362,709
Auction fees 53,302 19,422 20,024 26,323
Dividend disbursing agent fees 10,023 5,011 5,011 5,011
Shareholders' servicing agent fees and expenses 8,265 690 455 554
Interest expense and amortization of offering costs 46,041 18,309 17,655 19,370
Custodian's fees and expenses 22,899 11,638 11,833 13,830
Trustees' fees and expenses 2,471 940 978 1,233
Professional fees 9,818 6,285 6,300 6,890
Shareholders' reports - printing and mailing expenses 27,517 11,361 12,257 14,712
Stock exchange listing fees 4,622 296 296 380
Investor relations expense 9,801 3,770 3,907 4,882
Other expenses 11,158 9,085 9,123 9,526
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 933,880 363,864 369,026 465,420
Custodian fee credit (542) (58) (48) (83)
Expense reimbursement -- (43,061) (58,080) (74,789)
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 933,338 320,745 310,898 390,548
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,527,819 1,930,205 1,934,339 2,336,084
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 77,515 (6,780) 16,793 (11,282)
Change in net unrealized appreciation (depreciation) of investments 8,325,385 4,299,194 4,099,732 5,297,143
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 8,402,900 4,292,414 4,116,525 5,285,861
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (165,799) (60,324) (61,975) (83,078)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Auction Rate Preferred shareholders (165,799) (60,324) (61,975) (83,078)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $12,764,920 $6,162,295 $5,988,889 $7,538,867
==================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 55
| Statement of
| Operations (continued)
Six Months Ended November 30, 2009 (Unaudited)
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
--------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $4,863,001 $1,764,831 $3,176,357
--------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 608,423 211,107 405,837
Auction fees 43,548 14,693 27,547
Dividend disbursing agent fees 10,023 5,011 5,011
Shareholders' servicing agent fees and expenses 6,997 456 564
Interest expense and amortization of offering costs 13,966 30,557 51,452
Custodian's fees and expenses 19,766 9,606 13,902
Trustees' fees and expenses 2,107 717 1,353
Professional fees 8,652 5,685 7,189
Shareholders' reports - printing and mailing expenses 23,782 9,193 14,381
Stock exchange listing fees 4,627 221 406
Investor relations expense 8,409 2,776 4,932
Other expenses 10,630 8,823 9,678
--------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 760,930 298,845 542,252
Custodian fee credit (128) (47) (70)
Expense reimbursement -- (32,814) (94,708)
--------------------------------------------------------------------------------------------------------------------------------
Net expenses 760,802 265,984 447,474
--------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,102,199 1,498,847 2,728,883
--------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 337 128 32
Change in net unrealized appreciation (depreciation) of investments 5,513,719 2,519,500 4,813,020
--------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 5,514,056 2,519,628 4,813,052
--------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (135,313) (46,282) (87,498)
--------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Auction Rate Preferred shareholders (135,313) (46,282) (87,498)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $9,480,942 $3,972,193 $7,454,437
================================================================================================================================
See accompanying notes to financial statements.
56 Nuveen Investments
| Statement of
| Changes in Net Assets (Unaudited)
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
11/30/09 5/31/09 11/30/09 5/31/09 11/30/09 5/31/09
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,527,819 $ 9,449,559 $ 1,930,205 $ 3,990,112 $ 1,934,339 $ 3,972,583
Net realized gain (loss) from investments 77,515 (1,683,796) (6,780) (792,574) 16,793 (904,510)
Change in net unrealized appreciation
(depreciation) of investments 8,325,385 (5,452,149) 4,299,194 (4,198,728) 4,099,732 (4,008,113)
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (165,799) (1,728,826) (60,324) (710,514) (61,975) (687,710)
From accumulated net realized gains -- (112,500) -- -- -- (49,933)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 12,764,920 472,288 6,162,295 (1,711,704) 5,988,889 (1,677,683)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,830,751) (6,676,649) (1,547,098) (2,946,556) (1,548,348) (2,950,782)
From accumulated net realized gains -- (285,154) -- -- -- (145,966)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,830,751) (6,961,803) (1,547,098) (2,946,556) (1,548,348) (3,096,748)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 24,415 -- 41,978 65,451 12,356 39,025
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 24,415 -- 41,978 65,451 12,356 39,025
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 8,958,584 (6,489,515) 4,657,175 (4,592,809) 4,452,897 (4,735,406)
Net assets applicable to Common
shares at the beginning of period 144,504,444 150,993,959 54,506,834 59,099,643 55,185,414 59,920,820
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $153,463,028 $144,504,444 $59,164,009 $54,506,834 $59,638,311 $55,185,414
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 1,766,351 $ 1,235,082 $ 618,691 $ 295,908 $ 611,937 $ 287,921
==================================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 57
| Statement of
| Changes in Net Assets (Unaudited) (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
11/30/09 5/31/09 11/30/09 5/31/09 11/30/09 5/31/09
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,336,084 $ 4,774,513 $ 4,102,199 $ 8,077,037 $ 1,498,847 $ 2,929,798
Net realized gain (loss) from investments (11,282) (1,006,050) 337 (88,740) 128 (527,444)
Change in net unrealized appreciation
(depreciation) of investments 5,297,143 (3,207,766) 5,513,719 (5,786,157) 2,519,500 (3,315,707)
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (83,078) (858,983) (135,313) (1,346,825) (46,282) (533,312)
From accumulated net realized gains -- (32,339) -- (146,513) -- (12,768)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 7,538,867 (330,625) 9,480,942 708,802 3,972,193 (1,459,433)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,931,007) (3,451,676) (3,372,372) (5,849,607) (1,185,860) (2,167,450)
From accumulated net realized gains -- (90,650) -- (428,050) -- (41,689)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,931,007) (3,542,326) (3,372,372) (6,277,657) (1,185,860) (2,209,139)
----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions -- -- 241,166 175,724 27,960 37,122
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions -- -- 241,166 175,724 27,960 37,122
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 5,607,860 (3,872,951) 6,349,736 (5,393,131) 2,814,293 (3,631,450)
Net assets applicable to Common
shares at the beginning of period 71,331,936 75,204,887 123,119,174 128,512,305 40,880,654 44,512,104
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $76,939,796 $71,331,936 $129,468,910 $123,119,174 $43,694,947 $40,880,654
==================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 814,852 $ 492,853 $ 1,736,160 $ 1,141,646 $ 533,003 $ 266,298
==================================================================================================================================
58 Nuveen Investments
| Statement of
| Changes in Net Assets (Unaudited) (continued)
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/09 5/31/09
----------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,728,883 $ 5,570,292
Net realized gain (loss) from investments 32 (661,202)
Change in net unrealized appreciation
(depreciation) of investments 4,813,020 (5,657,242)
Distributions to Auction Rate
Preferred Shareholders:
From net investment income (87,498) (940,842)
From accumulated net realized gains -- (13,944)
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 7,454,437 (1,702,938)
----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,205,667) (4,123,820)
From accumulated net realized gains -- (41,880)
----------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,205,667) (4,165,700)
----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued
to shareholders due to reinvestment
of distributions 71,146 123,400
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 71,146 123,400
----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 5,319,916 (5,745,238)
Net assets applicable to Common
shares at the beginning of period 76,726,332 82,471,570
----------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $82,046,248 $76,726,332
================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 832,662 $ 396,944
================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 59
| 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 (NYSE) 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 NYSE Amex. 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 portfolio of municipal
obligations issued by state and local government authorities within a single
state or certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
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 or, in the absence of a pricing service for a
particular investment, the Board of Trustees of the Fund, or its designee, may
establish fair value using a wide variety of market data including yields or
prices of investments of comparable quality, type of issue, coupon, maturity and
rating, market quotes or indications of value from security dealers, evaluations
of anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. 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, 2009, 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.
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.
60 Nuveen Investments
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. 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). Furthermore,
management of the Funds is 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 US
generally accepted accounting principles.
Auction Rate Preferred Shares
The following Funds have issued and outstanding Auction Rate Preferred shares,
$25,000 stated value per share, as a means of effecting financial leverage. Each
Fund's Auction Rate 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, 2009, the number of
Auction Rate Preferred shares outstanding, by Series and in total, for each Fund
is as follows:
MARYLAND MARYLAND MARYLAND MARYLAND VIRGINIA
PREMIUM DIVIDEND DIVIDEND DIVIDEND PREMIUM
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3 INCOME
(NMY) (NFM) (NZR) (NWI) (NPV)
----------------------------------------------------------------------------------------
Number of shares:
Series M -- 1,033 -- -- --
Series T -- -- -- 1,400 743
Series W 1,258 -- -- -- --
Series TH 1,577 -- -- -- 1,537
Series F -- -- 1,065 -- --
----------------------------------------------------------------------------------------
Total 2,835 1,033 1,065 1,400 2,280
========================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Auction Rate Preferred shares issued by the Funds
than there were offers to buy. This meant that these auctions "failed to
clear,'' and that many Auction Rate Preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. Auction Rate 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 Auction Rate Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of these Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
will likely be higher at times than it otherwise would have been had the
auctions continued to be successful. As a result, the Funds' future Common share
earnings may likely have been incrementally lower than they otherwise would have
been. As of November 30, 2009, the aggregate amount of outstanding Auction Rate
Preferred shares redeemed and/or noticed for redemption by each Fund is as
follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or noticed for redemption,
at liquidation value $8,225,000 $6,175,000 $5,375,000 $4,000,000
=============================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
---------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or noticed for redemption,
at liquidation value $6,800,000 $24,000,000 $42,000,000
===============================================================================================================
Nuveen Investments 61
| Notes to
| Financial Statements (Unaudited) (continued)
MuniFund Term Preferred Shares
During the six months ended November 30, 2009, Virginia Dividend Advantage (NGB)
and Virginia Dividend Advantage 2 (NNB) issued $22,800,000 and $43,200,000,
respectively, of 2.80%, Series 2014 MuniFund Term Preferred shares, with a $10
liquidation value per share. Dividends, which are recognized as interest expense
for financial reporting purposes, will be paid monthly at a fixed annual rate of
2.80%, subject to adjustment in certain circumstances. Proceeds from the
issuance of MuniFund Term Preferred shares, net of offering expenses, were used
to redeem a portion of Virginia Dividend Advantage's (NGB) and Virginia Dividend
Advantage 2's (NNB) outstanding Auction Rate Preferred shares totaling
$19,500,000 and $36,925,000.
The Funds are obligated to redeem the MuniFund Term Preferred shares on December
1, 2014, unless earlier redeemed or repurchased by the Funds. MuniFund Term
Preferred shares are subject to optional and mandatory redemption in certain
circumstances. As of December 1, 2010, the MuniFund Term Preferred shares will
be subject to redemption at the option of the Funds, subject to payment of a
premium until November 30, 2011, and at par thereafter. The MuniFund Term
Preferred shares also will be subject to redemption, at the option of the Funds,
at par in the event of certain changes in the credit rating of the MuniFund Term
Preferred shares. The Funds may be obligated to redeem certain of the MuniFund
Term Preferred shares if the Funds fail to maintain certain asset coverage and
leverage ratio requirements and such failures are not cured by the applicable
cure date. The redemption price per share is equal to the sum of the liquidation
value per share plus any accumulated but unpaid dividends. The MuniFund Term
Preferred shares trade on the NYSE under the symbol "NGB Pr C" and "NNB Pr C"
for Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB),
respectively.
During the periods from November 4, 2009 and from November 18, 2009 through
November 30, 2009, Virginia Dividend Advantage 2 (NNB) and Virginia Dividend
Advantage (NGB) had average balances of $40,000,000 and $21,346,154 MuniFund
Term Preferred shares outstanding, respectively.
For financial reporting purposes only, the liquidation value of MuniFund Term
Preferred shares is recorded as a liability on the Statement of Assets and
Liabilities. Unpaid dividends on the MuniFund Term Preferred shares are
recognized as "Interest payable" on the Statement of Assets and Liabilities.
Dividends paid on the MuniFund Term Preferred shares are included as a component
of "Interest expense and amortization of offering costs" on the Statement of
Operations.
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 "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," 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 recognizes the related interest paid to the holders of the
short-term floating rate certificates as a component of "Interest expense and
amortization of offering costs" on the Statement of Operations.
During the six months ended November 30, 2009, 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.
62 Nuveen Investments
At November 30, 2009, the Funds were not invested in
externally-deposited Recourse Trusts.
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $-- $-- $-- $--
===============================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-------------------------------------------------------------------------------
Maximum exposure to 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, 2009, 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 outstanding $9,962,000 $3,973,000 $3,840,000 $4,255,000
Average annual interest rate and fees .92% .92% .92% .91%
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
------------------------------------------------------------------------------------------
Average floating rate obligations outstanding $4,630,000 $1,640,000 $2,980,000
Average annual interest rate and fees .60% .60% .60%
==========================================================================================
Derivative Financial Instruments
Each Fund is authorized to invest in certain derivative instruments, including
foreign currency forwards, futures, options and swap contracts. Although each
Fund is authorized to invest in such derivative instruments, and may do so in
the future, they did make any such investments during the six months ended
November 30, 2009.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties Nuveen Asset Management (the "Adviser"), a wholly-owned
subsidiary of Nuveen Investments, Inc. ("Nuveen"), believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, 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 valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
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.
Nuveen Investments 63
| NOTES TO
| Financial Statements (unaudited) (continued)
Offering Costs
Costs incurred by Virginia Dividend Advantage (NGB) and Virginia Dividend
Advantage 2 (NNB) in connection with their offering of MuniFund Term Preferred
shares ($587,000 and $818,500, respectively) were recorded as a deferred charge
which will be amortized over the 5-year life of the shares. Each Fund's
amortized deferred charges are included as a component of "Interest expense and
amortization of offering costs" on the Statement of Operations.
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 US 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
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, 2009:
MARYLAND PREMIUM INCOME (NMY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $220,127,082 $-- $220,127,082
================================================================================================
MARYLAND DIVIDEND ADVANTAGE (NFM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $86,191,795 $-- $86,191,795
================================================================================================
MARYLAND DIVIDEND ADVANTAGE 2 (NZR) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $87,275,971 $-- $87,275,971
================================================================================================
MARYLAND DIVIDEND ADVANTAGE 3 (NWI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $112,741,915 $-- $112,741,915
================================================================================================
VIRGINIA PREMIUM INCOME (NPV) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $187,158,201 $-- $187,158,201
================================================================================================
VIRGINIA DIVIDEND ADVANTAGE (NGB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $63,283,297 $-- $63,283,297
================================================================================================
64 Nuveen Investments
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $-- $119,657,240 $-- $119,657,240
=================================================================================================
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
The Funds record derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, they are
considered to be non-hedge transactions for financial reporting purposes. The
Funds did not invest in derivative instruments during the six months ended
November 30, 2009.
4. FUND SHARES
Common Shares
Since the inception of the Funds' repurchase program, the Funds have not
repurchased any of their outstanding Common 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
11/30/09 5/31/09 11/30/09 5/31/09 11/30/09 5/31/09
------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 1,740 -- 3,167 5,006 924 2,892
========================================================================================================================
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
11/30/09 5/31/09 11/30/09 5/31/09 11/30/09 5/31/09
------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 17,007 13,477 2,029 2,924
==================================================================================================================
VIRGINIA DIVIDEND
ADVANTAGE 2 (NNB)
-------------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/09 5/31/09
-------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions 5,155 9,369
===================================================================
Auction Rate Preferred Shares
Transactions in Auction Rate Preferred shares were as follows:
MARYLAND MARYLAND
PREMIUM INCOME (NMY) DIVIDEND ADVANTAGE (NFM)
------------------------------------------ -------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09
---------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series M -- $-- -- $ -- -- $-- 247 $6,175,000
Series W -- -- 146 3,650,000 -- -- -- --
Series TH -- -- 183 4,575,000 -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total -- $-- 329 $8,225,000 -- $-- 247 $6,175,000
=================================================================================================================================
Nuveen Investments 65
| Notes to
| Financial statements (Unaudited) (continued)
MARYLAND MARYLAND
DIVIDEND ADVANTAGE 2 (NZR) DIVIDEND ADVANTAGE 3 (NWI)
------------------------------------------ -------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09
---------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series T -- $-- -- $ -- -- $-- 160 $4,000,000
Series F -- -- 215 5,375,000 -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total -- $-- 215 $5,375,000 -- $-- 160 $4,000,000
=================================================================================================================================
VIRGINIA VIRGINIA
PREMIUM INCOME (NPV) DIVIDEND ADVANTAGE (NGB)
------------------------------------------ -------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09
---------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or
noticed for redemption:
Series T 89 $2,225,000 -- $-- -- $ -- -- $ --
Series W -- -- -- -- 780 19,500,000 180 4,500,000
Series TH 183 4,575,000 -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------------
Total 272 $6,800,000 -- $-- 780 $19,500,000 180 $4,500,000
=================================================================================================================================
CAPTION>
VIRGINIA
DIVIDEND ADVANTAGE 2 (NNB)
---------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
11/30/09 5/31/09
---------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed and/or noticed
for redemption:
Series M 1,647 $41,175,000 33 $825,000
======================================================================================================
Transactions in MuniFund Term Preferred shares were as follows:
VIRGINIA VIRGINIA
PREMIUM INCOME (NPV) DIVIDEND ADVANTAGE (NGB)
----------------------------------------- -------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
11/30/09 5/31/09 11/30/09 5/31/09
-------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred
shares issued:
Series 2014 2,280,000 $22,800,000 N/A N/A 4,320,000 $43,200,000 N/A N/A
===================================================================================================================
N/A - The Fund was not authorized to issue MuniFund Term Preferred shares prior
to November 4, 2009.
66 Nuveen Investments
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the six months ended November 30, 2009, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
--------------------------------------------------------------------------------
Purchases $3,000,000 $ -- $ -- $ --
Sales and maturities 3,680,000 210,000 972,500 206,000
================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
----------------------------------------------------------------
Purchases $ -- $ -- $ --
Sales and maturities 255,000 90,000 18,000
================================================================
6. 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
securities reflected as financing transactions, if any. 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, 2009, the cost of investments was as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-------------------------------------------------------------------------------
Cost of investments $205,577,529 $82,535,011 $83,370,161 $107,415,245
===============================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-------------------------------------------------------------------------------
Cost of investments $180,932,357 $62,471,429 $116,367,287
===============================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at November 30, 2009, were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,156,321 $ 2,833,007 $ 3,278,109 $ 4,614,387
Depreciation (6,568,684) (3,149,709) (3,211,835) (3,542,751)
-----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 4,587,637 $ (316,702) $ 66,274 $ 1,071,636
=============================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 7,699,267 $ 2,071,702 $ 4,928,856
Depreciation (6,103,643) (2,899,605) (4,618,909)
-----------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ 1,595,624 $ (827,903) $ 309,947
=============================================================================================================================
Nuveen Investments 67
| Notes to
| Financial Statements (Unaudited) (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at May 31, 2009, the Funds' last tax year end,
were as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
DIVIDEND PREMIUM DIVIDEND DIVIDEND
ADVANTAGE INCOME ADVANTAGE 2 ADVANTAGE 3
(NFM) (NMY) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,696,207 $483,436 $ 470,204 $ 749,367
Undistributed net ordinary income ** 1,855 1,079 1,893 942
Undistributed net long-term capital gains -- -- -- --
==================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $1,327,566 $443,872 $ 697,366
Undistributed net ordinary income ** 293,982 -- 22,698
Undistributed net long-term capital gains -- -- --
===================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for
the dividend declared on May 1, 2009, paid on June 1, 2009.
** 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, 2009, 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 $8,324,864 $3,659,376 $ 3,640,847 $ 4,289,441
Distributions from net ordinary income ** 77,563 -- 70,350 237
Distributions from net long-term capital gains 320,091 -- 125,548 122,752
===================================================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $7,136,962 $2,687,055 $ 5,042,415
Distributions from net ordinary income ** 109,247 -- 18,305
Distributions from net long-term capital gains 465,316 54,457 55,824
===================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At May 31, 2009, the Funds' last tax year end, the Funds had unused capital loss
carryforwards available for federal income tax purposes to be applied against
future capital gains, if any. If not applied, the carryforwards will expire as
follows:
Maryland Maryland Maryland Maryland
Premium Dividend Dividend Dividend
Income Advantage Advantage 2 Advantage 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------------------------------
Expiration:
May 31, 2012 $ -- $106,052 $ -- $ --
May 31, 2013 -- 15,613 -- --
May 31, 2014 -- 62,054 -- --
May 31, 2017 718,691 419,436 559,268 641,931
-----------------------------------------------------------------------------------------------------------------------------------
Total $718,691 $603,155 $559,268 $641,931
===================================================================================================================================
68 Nuveen Investments
Virginia Virginia Virginia
Premium Dividend Dividend
Income Advantage Advantage 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------------------------------
Expiration:
May 31, 2012 $ -- $ -- $ --
May 31, 2013 -- -- --
May 31, 2014 -- -- --
May 31, 2017 86,279 167,151 118,100
-----------------------------------------------------------------------------------------------------------------------------------
Total $86,279 $ 167,151 $ 118,100
===================================================================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2008 through May 31, 2009, the Funds' last tax year
end, ("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
VIRGINIA VIRGINIA
DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2
(NGB) (NNB)
----------------------------------------------------------------------------------------------------------------------------------
Post-October capital losses $360,192 $547,756
==================================================================================================================================
7. 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 the Adviser and a specific fund-level component, based only on the
amount of assets within each individual Fund. This pricing structure
enables Nuveen fund shareholders to benefit from growth in the assets
within each individual fund as well as from growth in the amount of
complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
MARYLAND PREMIUM INCOME (NMY)
VIRGINIA PREMIUM INCOME (NPV)
AVERAGE DAILY NET ASSETS (1) 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 (1) 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 net assets managed as stated in the following
table. As of November 30, 2009, the complex-level fee rate was .1896%.
Nuveen Investments 69
| Notes to
| Financial Statements (Unaudited) (continued)
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET 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 fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level fee
components, daily managed net assets includes assets managed by the Adviser
that are attributable to each Fund's use of financial leverage. For these
purposes, financial leverage includes the funds' use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has been
effectively financed by the trust's issuance of floating rate securities,
subject to an agreement by the Adviser to limit the amount of such assets
for determining managed net assets in certain circumstances.
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, 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.
70 Nuveen Investments
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, for fees and expenses in the amounts and for the time periods set forth
below:
YEAR ENDING YEAR ENDING
SEPTEMBER 30, SEPTEMBER 30,
---------------------------------------------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
=====================================================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Maryland Dividend Advantage 2 (NZR) for
any portion of its fees and expenses beyond September 30, 2011.
For the first eight years of Maryland Dividend Advantage 3's (NWI) operations,
the Adviser has agreed to reimburse the Fund, as a percentage of average daily
net assets, 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, 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.
8. NEW ACCOUNTING STANDARDS
Accounting for Transfers of Financial Assets
During June 2009, the FASB issued changes to the authoritative guidance under
GAAP on accounting for transfers of financial assets. The objective of this
guidance is to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and
transferor's continuing involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
Nuveen Investments 71
| Notes to
| Financial Statements (Unaudited) (continued)
9. 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, 2009, to shareholders of
record on December 15, 2009, as follows:
MARYLAND MARYLAND MARYLAND MARYLAND
PREMIUM DIVIDEND DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2 ADVANTAGE 3
(NMY) (NFM) (NZR) (NWI)
-----------------------------------------------------------------------------------------------------------
Dividend per share $ .0620 $ .0650 $ .0650 $ .0630
===========================================================================================================
VIRGINIA VIRGINIA VIRGINIA
PREMIUM DIVIDEND DIVIDEND
INCOME ADVANTAGE ADVANTAGE 2
(NPV) (NGB) (NNB)
-----------------------------------------------------------------------------------------------------------
Dividend per share $ .0670 $ .0640 $.0660
===========================================================================================================
At the same time, Virginia Premium Income (NPV) and Virginia Dividend Advantage
2 (NNB) declared ordinary income distributions of $.0267 and $.0037,
respectively.
Distributions to MuniFund Term Preferred Shareholders
Virginia Dividend Advantage (NGB) and Virginia Dividend Advantage 2 (NNB)
declared their initial dividend distributions of $0.033444 and $0.044333,
respectively, which were paid on December 31, 2009, to shareholders of record on
December 15, 2009.
MuniFund Term Preferred Shares
As discussed in the Portfolio Manager's Comments section, subsequent to the
reporting period, Virginia Premium Income (NPV) entered into an agreement to
issue $29.2 million of 2.65%, Series 2015 MuniFund Term Preferred, which
issuance is expected to occur on January 26, 2010.
Subsequent to the reporting period, Maryland Premium Income (NMY), Maryland
Dividend Advantage (NFM), Maryland Dividend Advantage 2 (NZR) and Maryland
Dividend Advantage 3 (NWI) filed with the SEC a registration statement seeking
to register MuniFund Term Preferred shares. These registration statements,
declared effective by the SEC, enables the Funds to issue the public shares of
MuniFund Term Preferred to refinance all or a portion of each Fund's auction
rate preferred shares. The issuance of MuniFund Term Preferred shares by these
Funds is subject to market conditions. There is no assurance that these
MuniFund Term Preferred shares will be issued.
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under
GAAP for subsequent events. This guidance requires an entity to
recognize in the financial statements the effects of all subsequent
events that provide additional evidence about conditions that existed
at the date of the balance sheet. This guidance is intended to
establish general standards of accounting and for disclosure of
events that occur after the balance sheet date but before financial
statements are issued or are available to be issued. This guidance
requires the disclosure of the date through which an entity has
evaluated subsequent events and the basis for that date - that is,
whether that date represents the date the financial statements were
issued or were available to be issued. This guidance is effective for
interim and annual periods ending after June 15, 2009. The Funds have
performed an evaluation of subsequent events through January 25,
2009, which is the date the financial statements were issued.
72 Nuveen Investments
| Financial
| Highlights (Unaudited)
Nuveen Investments 73
| Financial
| Highlights (Unaudited)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL
BEGINNING INCOME TO GAINS TO
COMMON NET AUCTION RATE AUCTION RATE
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:
2010(b) $ 13.58 $ .43 $ .79 $ (.02) $ -- $ 1.20
2009 14.19 .89 (.67) (.16) (.01) .05
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
MARYLAND DIVIDEND ADVANTAGE (NFM)
-------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 13.01 .46 1.02 (.01) -- 1.47
2009 14.12 .95 (1.19) (.17) -- (.41)
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
=======================================================================================================
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:
2010(b) $ (.36) $ -- $ (.36) $ 14.42 $ 13.85
2009 (.63) (.03) (.66) 13.58 12.68
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
Maryland Dividend Advantage (NFM)
---------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) (.37) -- (.37) 14.11 13.52
2009 (.70) -- (.70) 13.01 13.05
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
=======================================================================================
Auction Rate 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:
2010(b) $ 70,875 $ 25,000 $ 79,132
2009 70,875 25,000 75,972
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
Maryland Dividend Advantage (NFM)
-----------------------------------------------------------------
Year Ended 5/31:
2010(b) 25,825 25,000 82,274
2009 25,825 25,000 77,766
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
=================================================================
74 Nuveen Investments
Ratios/Supplemental Data
---------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before 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++ Income++
------------------------------------------------------------------------------------------------------------------------
Maryland Premium Income (NMY)
------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 12.10% 8.92% $ 153,463 1.25%*** 1.19%*** 6.05%***
2009 2.57 .66 144,504 1.35 1.30 6.80
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
Maryland Dividend Advantage (NFM)
------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 6.46 11.40 59,164 1.27*** 1.21*** 6.59***
2009 (2.48) (2.52) 54,507 1.42 1.36 7.37
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
========================================================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Reimbursement**
--------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest Income Rate
------------------------------------------------------------------------------------------------
Maryland Premium Income (NMY)
------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.25%*** 1.19%*** 6.05%*** 1%
2009 1.35 1.30 6.80 5
2008 1.25 1.24 6.13 14
2007 1.27 1.23 5.95 13
2006 1.23 1.23 6.05 13
2005 1.24 1.24 6.22 10
Maryland Dividend Advantage (NFM)
-----------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.12*** 1.06*** 6.74*** 0
2009 1.20 1.15 7.59 5
2008 1.01 1.00 6.67 12
2007 .95 .91 6.41 12
2006 .83 .83 6.42 14
2005 .80 .80 6.56 11
===============================================================================================
* 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 expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 75
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
--------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL
BEGINNING INCOME TO GAINS TO
COMMON NET AUCTION RATE AUCTION RATE
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:
2010(b) $ 13.15 $ .46 $ .98 $ (.01) $ -- $ 1.43
2009 14.29 .95 (1.19) (.16) (.01) (.41)
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
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 13.30 .44 .98 (.02) -- 1.40
2009 14.02 .89 (.78) (.16) (.01) (.06)
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
================================================================================================================================
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:
2010(b) $ (.37) $ -- $ (.37) $ 14.21 $ 13.37
2009 (.70) (.03) (.73) 13.15 12.69
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
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
-----------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) (.36) -- (.36) 14.34 13.70
2009 (.64) (.02) (.66) 13.30 12.56
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
=================================================================================================================
AUCTION RATE 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:
2010(b) $ 26,625 $ 25,000 $ 80,998
2009 26,625 25,000 76,817
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
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
-----------------------------------------------------------------
Year Ended 5/31:
2010(b) 35,000 25,000 79,957
2009 35,000 25,000 75,951
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
=================================================================
76 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE 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++ INCOME++
---------------------------------------------------------------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 8.28% 10.97% $ 59,638 1.28%*** 1.21%*** 6.49%***
2009 (5.21) (2.43) 55,185 1.41 1.36 7.16
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
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 12.05 10.63 76,940 1.25*** 1.20*** 6.06***
2009 2.35 (.05) 71,332 1.38 1.33 6.70
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
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
---------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
----------------------------------------------------------------------------------------------------
MARYLAND DIVIDEND ADVANTAGE 2 (NZR)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.07%*** 1.01%*** 6.69%*** 0%
2009 1.15 1.10 7.42 6
2008 .96 .94 6.51 13
2007 .91 .87 6.27 10
2006 .79 .79 6.21 15
2005 .78 .78 6.19 10
MARYLAND DIVIDEND ADVANTAGE 3 (NWI)
----------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.05*** 1.00*** 6.26*** 0
2009 1.08 1.03 7.00 5
2008 .86 .85 6.27 13
2007 .80 .76 6.00 11
2006 .75 .75 5.89 14
2005 .75 .75 5.88 12
====================================================================================================
* 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 expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on the
Fund's net cash on deposit with the custodian bank, where applicable.
*** Annualized.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 77
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL
BEGINNING INCOME TO GAINS TO
COMMON NET AUCTION RATE AUCTIOON RATE
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:
2010(b) $ 13.76 $ .46 $ .62 $ (.02) $ -- $ 1.06
2009 14.39 .90 (.66) (.15) (.02) .07
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
VIRGINIA DIVIDEND ADVANTAGE (NGB)
--------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 13.04 .48 .79 (.01) -- 1.26
2009 14.21 .93 (1.23) (.17) --* (.47)
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
========================================================================================================
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:
2010(b) $ (.38) $ -- $ (.38) $ 14.44 $ 14.61
2009 (.65) (.05) (.70) 13.76 14.36
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
VIRGINIA DIVIDEND ADVANTAGE (NGB)
--------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) (.38) -- (.38) 13.92 14.89
2009 (.69) (.01) (.70) 13.04 14.00
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
============================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------ -------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE OUTSTANDING VALUE COVERAGE
(000) PER SHARE (000) PER SHARE PER SHARE
---------------------------------------------------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $ 57,000 $ 25,000 $ -- $ -- $ 81,785
2009 63,800 25,000 -- -- 73,244
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
VIRGINIA DIVIDEND ADVANTAGE (NGB)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 19,500 25,000 22,800 10***** --******
2009 21,750 25,000 -- -- 71,989
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
=================================================================================================================================
78 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE 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++ INCOME++
---------------------------------------------------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 4.44% 7.76% $129,469 1.20%**** 1.18%**** 6.48%****
2009 8.05 .88 123,119 1.36 1.28 6.82
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
VIRGINIA DIVIDEND ADVANTAGE (NGB)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 9.26 9.75 43,695 1.41**** 1.26**** 6.90****
2009 (.01) (2.92) 40,881 1.47 1.38 7.17
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
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT***
-------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
---------------------------------------------------------------------------------------------------------
VIRGINIA PREMIUM INCOME (NPV)
---------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.20%**** 1.18%**** 6.48%**** 0%
2009 1.36 1.28 6.82 6
2008 1.25 1.23 6.02 14
2007 1.20 1.20 5.80 16
2006 1.19 1.19 5.75 16
2005 1.20 1.20 5.98 17
VIRGINIA DIVIDEND ADVANTAGE (NGB)
---------------------------------------------------------------------------------------------------------
2010(b) 1.25**** 1.11**** 7.06**** 0
2009 1.26 1.18 7.38 4
2008 1.03 1.01 6.56 10
2007 .92 .92 6.34 23
2006 .84 .84 6.36 16
2005 .82 .82 6.58 15
========================================================================================================
* 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 expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on
the Fund's net cash on deposit with the custodian bank, where applicable.
**** Annualized.
***** For the period November 18, 2009 through November 30, 2009, the average
market value was $10.04.
****** Asset coverage per $1 of liquidation preference for Auction Rate
Preferred shares and MuniFund Term Preferred shares equal $2.03. On a per
share basis, asset coverage is $50,824 and $20 for Auction Rate Preferred
shares and MuniFund Term Preferred shares, respectively.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income
earned and expenses incurred on assets attributable to Auction Rate
Preferred shares and/or MuniFund Term Preferred shares, where applicable.
(a) The expense ratios in the above table reflect, among other things,
payments to MuniFund Term Preferred shareholders, where applicable, and
the interest expense deemed to have been paid by the Fund on the floating
rate certificates issued by the special purpose trusts for the
self-deposited inverse floaters held by the Fund, as described in
Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate
Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 79
| Financial
| Highlights (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
------------------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
INVESTMENT CAPITAL
BEGINNING INCOME TO GAINS TO
COMMON NET AUCTION RATE AUCTION RATE
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:
2010(b) $ 13.36 $ .48 $ .84 $ (.02) $ -- $ 1.30
2009 14.39 .97 (1.11) (.16) --* (.30)
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
===========================================================================================================================
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:
2010(b) $ (.38) $ -- $ (.38) $ 14.28 $ 14.98
2009 (.72) (.01) (.73) 13.36 13.98
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
=======================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------ -------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE OUTSTANDING VALUE COVERAGE
(000) PER SHARE (000) PER SHARE PER SHARE
----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) $ -- $ -- $ 43,200 10***** --******
2009 41,175 25,000 -- -- 71,586
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
==================================================================================================================================
80 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
-----------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE 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++ INCOME
--------------------------------------------------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (NNB)
--------------------------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 10.11% 9.87% $ 82,046 1.36%**** 1.23%**** 6.61%****
2009 .96 (1.78) 76,726 1.39 1.31 7.21
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
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT***
------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
---------------------------------------------------------------------------------------------------------------
VIRGINIA DIVIDEND ADVANTAGE 2 (N)
---------------------------------------------------------------------------------------------------------------
Year Ended 5/31:
2010(b) 1.12%**** .99%**** 6.85%**** 0%
2009 1.11 1.03 7.49 4
2008 .91 .89 6.55 10
2007 .80 .80 6.29 19
2006 .75 .75 6.19 10
2005 .75 .75 6.18 13
===============================================================================================================
* 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 expense reimbursement from the Adviser, where applicable. Expense
ratios do not reflect the reduction of custodian fee credits earned on
the Fund's net cash on deposit with the custodian bank, where applicable.
**** Annualized.
***** During the period November 4, 2009 through November 30, 2009, the average
market value was $10.00.
****** Asset coverage per $1 of liquidation for Auction Rate Preferred shares
and MuniFund Term Preferred shares equal $2.90. On a per share basis,
asset coverage is $72,480 and $29 for Auction Rate Preferred shares and
MuniFund Term Preferred shares, respectively.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income
earned and expenses incurred on assets attributable to Auction Rate
Preferred shares and/or MuniFund Term Preferred shares, where applicable.
(a) The expense ratios in the above table reflect, among other things,
payments to MuniFund Term Preferred shareholders, where applicable, and
the interest expense deemed to have been paid by the Fund on the floating
rate certificates issued by the special purpose trusts for the
self-deposited inverse floaters held by the Fund, as described in
Footnote 1 - MuniFund Term Preferred Shares and Inverse Floating Rate
Securities.
(b) For the six months ended November 30, 2009.
See accompanying notes to financial statements.
Nuveen Investments 81
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
82 Nuveen Investments
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
Nuveen Investments 83
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.
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, also known as inverse
floaters, 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.
84 Nuveen Investments
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 PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells
new bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding
generally raises a bond's credit rating and thus its value.
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.
Nuveen Investments 85
NOTES
86 Nuveen Investments
NOTES
Nuveen Investments 87
NOTES
88 Nuveen Investments
OTHER USEFUL INFORMATION
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
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, 2009, 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 SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed/noticed for redemption shares of their common and/or preferred
stock as shown in the accompanying table.
PREFERRED SHARES
COMMON SHARES REDEEMED/NOTICED
FUND REPURCHASED FOR REDEMPTION
NMY -- --
NFM -- --
NZR -- --
NWI -- --
NPV -- 272
NGB -- 780
NNB -- 1,647
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 89
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, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
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/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606
www.nuveen.com
It's not what you earn,
it's what you keep. (R)
ESA-A-1109D
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.
(a) See Portfolio of Investments in Item 1.
(b) Not applicable.
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 of Directors or Trustees
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
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By (Signature and Title) /s/ Kevin J. McCarthy
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Kevin J. McCarthy
(Vice President and Secretary)
Date: February 2, 2010
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: February 2, 2010
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: February 2, 2010
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